TITLE 1.ADMINISTRATION

Part 7. STATE OFFICE OF ADMINISTRATIVE HEARINGS

Chapter 155. RULES OF PROCEDURES

1 TAC §§155.1, 155.5, 155.19, 155.30, 155.37

The State Office of Administrative Hearings (SOAH) proposes amendments to §155.1, concerning Purpose and Scope; §155.5, concerning Definitions; §155.19, concerning Computation of Time; §155.30, concerning Motions; and §155.37, concerning Settlement Conferences. In general, the amendments are proposed to correct words in titles, correct citations, and make minor wording changes.

Specifically, the reasons for proposing the amendments are as follows: Sections 155.1(a) and 155.5(4) are amended to change the name of the Department of Human Services to its current title of "Department of Aging and Disability." Section 155.19(c) is amended to correct a typographical error. Both §155.19(c) and §155.30(g) are amended to correct the section title citation by removing the words "Failure to Attend Hearing and" and replacing with the word "Proceedings." Section 155.37(a)(1) is amended by changing the citation to §155.29 (relating to Pleadings) to the citation §155.30 (relating to Motions).

Cathleen Parsley, General Counsel, has determined that for the first five-year period the amended rules are in effect there will be no fiscal implications for state or local government as a result of enforcing or administering them.

Cathleen Parsley also has determined that for the first five-year period the amended rules are in effect the public benefit anticipated as a result of the rules will be to ensure more efficient and fair procedures for participants in contested case hearings. There will be no effect on small businesses as a result of enforcing the rules. There is no anticipated economic cost to individuals who are required to comply with the proposed rules.

Written comments must be submitted within 30 days after publication of the proposed amendments in the Texas Register to Debra Anderson, Paralegal, State Office of Administrative Hearings, P.O. Box 13025, Austin, Texas 78711-3025, or by e:Mail at debra.anderson@soah.state.tx.us., or by facsimile to (512) 463-1576.

The amended rules are proposed under Government Code, Chapter 2003, §2003.050, which authorizes the State Office of Administrative Hearings to conduct contested case hearings and requires adoption of procedural rules for hearings, and Government Code, Chapter 2001, §2001.004, which requires agencies to adopt rules of practice setting forth the nature and requirements of formal and informal procedures.

The provisions to which the proposed amendments relate affect Government Code, Chapters 2001 and 2003.

§155.1.Purpose and Scope.

(a) Unless otherwise provided by statute or by the provisions of this chapter, this chapter will govern the processes followed by the State Office of Administrative Hearings (SOAH) in handling all matters referred to SOAH, including contested cases under the Administrative Procedure Act (APA), Tex. Gov't Code, Chapter 2001. Administrative License Suspension cases initiated by the Department of Public Safety are governed by Chapter 159 of this title (relating to Rules of Procedure for Administrative License Suspension Hearings). Arbitration procedures for certain enforcement actions of the Department of Aging and Disability [ Human ] Services are governed by Chapter 163 of this title (relating to Arbitration Procedures for Certain Enforcement Actions of the Department of Aging and Disability [ Human ] Services).

(b) - (c) (No change.)

§155.5.Definitions.

The following words and terms, when used in this chapter, shall have the following meanings, unless the context clearly indicates otherwise.

(1) - (3) (No change.)

(4) Arbitration--A form of ADR, governed by an agreement between the parties or special rules or statutes providing for the process, in which a third-party neutral issues a decision after a streamlined and simplified hearing. Arbitrations can be binding or non-binding, depending on the agreement, statutes, or rules. (See Chapter 163 of this title (relating to Arbitration Procedures for Certain Enforcement Actions of the Department of Aging and Disability [ Human ] Services) for procedural rules specifically governing the arbitration of certain nursing home enforcement cases referred by the Department of Aging and Disability [ Human ] Services).

(5) - (19) (No change.)

§155.19.Computation of Time.

(a) - (b) (No change.)

(c) When by these rules or judge order an act is required or allowed to be done at or within a specified time, the judge may, for cause shown, order the period enlarged if application therefor [ therefore ] is made before the expiration of the specified period. In addition, where good cause is shown for the failure to act within the specified period, the judge may permit the act to be done after the expiration of the specified period. The judge may not enlarge the period for taking any action under the rules relating to reopening the record, §155.15(a)(4) of this title (relating to Powers and Duties of Judges), to default, §155.55 of this title (relating to [ Failure to Attend Hearing and ] Default Proceedings ), and to the failure to prosecute, §155.56(a) of this title (relating to Dismissal Proceedings), except as stated in those rules.

§155.30.Motions.

(a) - (f) (No change.)

(g) Motions to reopen the record under §155.15(a)(4) of this title (relating to Powers and Duties of Judges), to set aside a default under §155.55(e) of this title (relating to [ Failure to Attend Hearing and ] Default Proceedings ), to set aside a dismissal for failure to prosecute under §155.56(a) of this title (relating to Dismissal Proceedings), and for summary disposition under §155.57 (relating to Summary Disposition), shall be governed by the referenced sections.

§155.37.Settlement Conferences.

(a) On party request or in the judge's discretion, the judge may order that a mediated settlement conference (MSC) be held.

(1) Parties may object to the proposed ADR process by written response in the same manner as to other motions ( See §155.30 [ §155.29 ] of this title (relating to Motions [ Pleadings ]), specifically subsection (c), which refers to responses to motions generally [ (d) of that section (relating to Responses to Motions Generally) ]. A party may also request review of the case by SOAH's Alternative Dispute Resolution (ADR) Team Leader or the Team Leader's designee (including ex parte consultation with each party in confidence). The Team Leader or designee will make a written recommendation to the judge, which shall also be served on all parties, about whether the case is appropriate for ADR.

(2) - (7) (No change.)

(b) - (c) (No change.)

This agency hereby certifies that the proposal has been reviewed by legal counsel and found to be within the agency's legal authority to adopt.

Filed with the Office of the Secretary of State on March 28, 2006.

TRD-200601862

Cathleen Parsley

General Counsel

State Office of Administrative Hearings

Earliest possible date of adoption: May 14, 2006

For further information, please call: (512) 475-4931


Chapter 159. RULES OF PROCEDURE FOR ADMINISTRATIVE LICENSE SUSPENSION HEARINGS

1 TAC §§159.1, 159.3 - 159.5, 159.7, 159.9, 159.11, 159.13, 159.15, 159.17, 159.19, 159.21, 159.23, 159.25, 159.27, 159.29, 159.31, 159.33

The State Office of Administrative Hearings (SOAH) proposes new §§159.5, 159.7, 159.9, 159.11, 159.13, 159.15, 159.17, 159.19, 159.21, 159.23, 159.25, 159.27, 159.29, 159.31, and 159.33 and amendments to §§159.1, 159.3, and 159.4 concerning Administrative License Suspension Hearings, commonly known as the Administrative License Revocation (ALR) Program.

The main reason for proposing the new sections is basically to replace and renumber for organizational purposes outdated sections that are being concurrently proposed for repeal. Specifically, each new section is being proposed for the following reasons: New §159.5 (concerning Motion to Withdraw) is proposed to address the procedures an attorney must follow when withdrawing from representing a defendant; new §159.7 (concerning Waiver or Dismissal) is proposed to provide procedures for requesting a waiver of a request for hearing and what procedures to follow for rescission of a notice of suspension; new §159.9 (concerning Scheduling and Notice of Hearings) is proposed to provide procedures to follow for scheduling and notices of hearings; new §159.11 (concerning Continuances) is proposed to provide procedures to follow regarding the way continuances are handled; new §159.13 (concerning General Requests for Relief) is proposed to provide procedures for filing general requests for relief that require an interim order; new §159.15 (concerning Prehearing Discovery) is proposed to provide procedures to follow regarding prehearing discovery; new §159.17 (concerning Request for Appearance of Breath Test Operator and Technical Supervisor) is proposed to provide procedures for requesting the appearance of the breath test operator and/or the technical supervisor, eliminate the requirement that they must appear in person at the hearing, and, instead, allow them to appear by telephone; new §159.19 (concerning Subpoenas), provides two methods for compelling a peace officer's appearance. If the officer is to testify by telephone, an attorney may issue the subpoena and is required to provide the witness with a $10 witness fee check. However, no mileage reimbursement is required. If a party seeks to compel the officer's in-person appearance, an administrative law judge must issue the subpoena, and the same witness fee check must be provided to the witness. In addition, a mileage fee check based on the state mileage guide is required. The state mileage rate is currently $0.445 a mile. Previously, the mileage fee for a witness who appeared in person was $0.10 a mile if the witness had to travel more than ten miles. If a witness had to travel less than ten miles, no mileage fee check was required; new §159.21 (concerning Hearing) is proposed to provide procedures for the way hearings are conducted at SOAH; new §159.23 (concerning Participation by Telephone or Videoconferencing) is proposed to provide procedures to come into compliance with the way telephone appearances are handled at SOAH and to add videoconferencing as the technologically advanced alternative for appearing at hearings; new §159.25 (concerning Failure to Attend Hearing and Default) is proposed to provide procedures for the way defaults are handled; new §159.27 (concerning Hearing Disposition) is proposed to provide procedures to require that the facts are proven by a preponderance of the evidence as specified in the Tex. Trans. Code Ann.; new §159.29 (concerning Decision of the Administrative Law Judge) is proposed to provide information on what is required of the judge upon conclusion of the hearing, and to provide that the decision is appealable; new §159.31 (concerning Appeal of Judge's Decision) is proposed to provide procedures for appealing a judge's decision; and new §159.33 (concerning Other SOAH Rules of Procedure) is proposed to provide information regarding other SOAH procedures that may apply to contested cases under this chapter.

The reasons SOAH is proposing amendments to certain sections are as follows: §159.1 (concerning Scope) is proposed to provide statutory citations that apply to that section; §159.3 (concerning Definitions) is proposed to remove unnecessary definitions and update the meanings in others, and to provide the current statutory citations that apply to that section; §159.4 (concerning Computation of Time) is proposed to remove the words "the Office" and to replace those words with "SOAH;" to remove the acronym "ALJ" and replace it with the words "a judge;" and to make minor typographical corrections.

Cathleen Parsley, General Counsel, has determined that for the first five-year period that the amendments are in effect, there will be no fiscal implications for state government as a result of the amendments. The change in the mileage fee could impact local governments. The increased mileage will assist local governments by defraying the travel costs of peace officers who are compelled to testify at hearings. Defendants in administrative license revocations would bear the increased cost of paying mileage for witnesses who appeared in person. Additionally, local governments could also be positively impacted because the increased use of telephonic testimony would reduce the amount of on-duty time officers would spend traveling to and from hearings and waiting for cases to be called. SOAH does not, however, have the means to quantify actual cost savings that may result from the revised rule.

Cathleen Parsley also has determined that for each year of the first five years the amendments are in effect, the public benefit anticipated as a result will be more efficient administration of the Administrative License Suspension Hearings or ALR Program. There will be no effect on small businesses.

Comments on the proposed new sections and proposed amendments must be submitted within 30 days after publication of the proposed sections in the Texas Register to Debra Anderson, Paralegal, State Office of Administrative Hearings, P. O. Box 13025, Austin, Texas 78711-3025 or by e:Mail to debra.anderson@soah.state.tx.us or by facsimile to (512) 463-1576.

The amendments are proposed under Transportation Code §§522.105, 524.002 and 724.003 which authorize SOAH to promulgate rules for the administration of Chapters 522, 524 and 724 of the Transportation Code.

The following statutes are affected by the proposed amendments: Transportation Code, Chapters 522, 524 and 724; Government Code, Chapters 2001 and 2003; and Penal Code, Chapter 49.

§159.1.Scope.

(a) This chapter applies to contested hearings before SOAH concerning administrative suspension , denial, or disqualification of drivers' licenses under the Administrative License Revocation (ALR) Program governed by the Tex. Trans. Code Ann., Chapters 522, 524, and 724. [ before the State Office of Administrative Hearings. ]

(b) (No change.)

(c) These rules shall supplement the procedures required by law, but to the extent they conflict with Tex. Gov't Code Ann., Chapter 2001, [ the Administrative Procedure Act, ] the provisions of this chapter shall prevail.

§159.3.Definitions.

(a) In this chapter, the following terms have the meanings indicated:

(1) Adult--An individual twenty-one years of age or older. [ Administrative Law Judge or Judge--An individual appointed by the Chief Administrative Law Judge of the State Office of Administrative Hearings under the Texas Government Code, Chapter 2003 and Texas Transportation Code, Chapters 524 and 724. ]

(2) ALR suspension--An administrative driver's license disqualification, suspension, or denial under the ALR Program which is the subject of this chapter. [ Adult--An individual 21 years of age or older. ]

(3) Alcohol concentration--Has the meaning stated in Tex. Pen. Code Ann. §49.01. [ ALR Suspension--Pursuant to Texas Transportation Code, Chapters 522, 524 or 724 means an administrative driver's license suspension under the Administrative License Revocation (ALR) Program which is the subject of this chapter. ]

(4) Alcohol-related or drug-related enforcement contact--Has the meaning stated in Tex. Trans. Code Ann. §524.001. [ Alcohol concentration--As defined in Penal Code §49.01(1) means: ]

[ (A) the number of grams of alcohol per 100 milliliters of blood; ]

[ (B) the number of grams of alcohol per 210 liters of breath; or ]

[ (C) the number of grams of alcohol per 67 milliliters of urine. ]

(5) Certified Breath Test Technical Supervisor--A person who has been certified by DPS to maintain and direct the operation of a breath test instrument used to analyze breath specimens of persons suspected of driving while intoxicated. [ Alcohol-related or drug-related enforcement contact--As defined in Texas Transportation Code, §524.001(3) means a driver's license suspension, disqualification, or prohibition order under the laws of this state or another state following: ]

[ (A) a conviction of an offense prohibiting the operation of a motor vehicle while intoxicated, while under the influence of alcohol, or while under the influence of a controlled substance; ]

[ (B) a refusal to submit to the taking of a blood or breath specimen following an arrest for an offense prohibiting the operation of a motor vehicle while intoxicated, while under the influence of alcohol, or while under the influence of a controlled substance; or ]

[ (C) an analysis of a blood or breath specimen showing an alcohol concentration of the level specified in §49.01(2) of the Penal Code, following an arrest for an offense prohibiting the operation of a motor vehicle while intoxicated. ]

(6) Contested case--A proceeding brought under Tex. Trans. Code Ann., Chapter 522, Subchapter I; Chapter 524, Subchapter D; or Chapter 724, Subchapter D. [ APA--The Texas Administrative Procedure Act, Texas Government Code, Chapter 2001. ]

(7) Defendant--One who holds a license as defined in Tex. Trans. Code Ann. Chapter 521 or an unlicensed driver whose legal rights, duties, statutory entitlement, or privileges may be affected by the outcome of a contested case under this chapter. [ Certified Breath Test Technical Supervisor--A person who has been certified by the department to maintain and direct the operation of a breath test instrument used to analyze breath specimens of persons suspected of driving while intoxicated. ]

(8) Denial--The non-issuance of a license or permit, and loss of the privilege to obtain a license or permit. [ Child--As defined in §51.02 of the Texas Family Code, means a person who is: ]

[ (A) 10 years of age or older and under 17 years of age; or ]

[ (B) 17 years of age or older and under 18 years of age who is alleged or found to have engaged in delinquent conduct or conduct indicating a need for supervision as a result of acts committed before becoming 17 years of age. ]

(9) DPS--The Department of Public Safety. [ Commercial Driver's License--As defined in Texas Transportation Code, §522.003(3), means a license issued to an individual that authorizes the individual to drive a class of commercial motor vehicle. ]

(10) Driver--A person who drives or is in actual physical control of a motor vehicle. [ Commercial Motor Vehicle--As defined in Texas Transportation Code, §522.003(5), means a motor vehicle or combination of motor vehicles used to transport passengers or property that: ]

[ (A) has a gross combination weight rating of 26,001 or more pounds including a towed unit with a gross vehicle weight rating of more than 10,000 pounds; ]

[ (B) has a gross vehicle weight rating of 26,001 or more pounds; ]

[ (C) is designed to transport 16 or more passengers, including the driver; or ]

[ (D) is transporting hazardous materials and is required to be placarded under 49 CFR Part 172, Subpart F. ]

(11) Final Decision--The decision issued by a judge who hears the contested case or another judge who reviewed the record in its entirety and who is authorized under appropriate law to issue a final decision in an ALR case. [ Contested Case--A proceeding brought under Texas Transportation Code, Chapter 522, Subchapter I, Chapter 524, Subchapter D, or Chapter 724, Subchapter D. ]

(12) Intoxicated--Has the meaning state in Tex. Pen. Code Ann. §49.01(2). [ Conviction--When involving minors, includes an adjudication under Title 3 of the Texas Family Code for conduct constituting an offense under §106.041, Alcoholic Beverage Code or under §§49.04, 49.07, 49.08 of the Penal Code. An order of deferred adjudication received by a minor for an offense alleged under the aforementioned sections is also considered a conviction. ]

(13) Minor--An individual under twenty-one years of age. [ Defendant--One who holds a license as defined in paragraph (20) of this subsection and whose legal rights, duties, statutory entitlement, or privileges may be affected by the outcome of a contested case under this chapter. ]

(14) Nonresident--A person who is not a resident of this state. [ Denial--The non-issuance of a license or permit, and loss of the privilege to obtain a license or permit, as defined in paragraph (20) of this subsection. ]

(15) Operate--To drive or be in actual physical control of a motor vehicle. [ Department--The Department of Public Safety. ]

(16) Peace Officer--A person elected, employed, or appointed as a peace officer under Tex. Code Crim. Proc. Ann. §2.12 or other law. [ Disqualification--As defined in Texas Transportation Code, §522.003(9), means a withdrawal of the privilege to drive a commercial motor vehicle and includes the suspension, cancellation, or revocation of that privilege as authorized by a state or federal law. ]

(17) Public place--Has the meaning stated in Tex. Pen. Code Ann. §1.07 and Tex. Trans. Code Ann. §524.001. [ Driver--A person who drives or is in actual physical control of a motor vehicle. ]

(18) SOAH--The State Office of Administrative Hearings. [ Final Decision--The decision issued by a Judge who hears the contested case and who is authorized under Texas Transportation Code, Chapter 522, Subchapter I, Chapter 524, Subchapter D, or Chapter 724, Subchapter D to issue final decisions in driver's license suspension cases. ]

(19) Test--Has the meaning stated in Tex. Trans. Code Ann. §522.101(b) and §724.011. [ Intoxicated--Has the meaning assigned by Penal Code, §49.01(2). ]

[ (20) License--A driver's license or other license or permit as provided in Texas Transportation Code, §521.001(a)(6) to operate a motor vehicle issued under, or granted by, the laws of this state. ]

[ (21) Minor--An individual under 21 years of age. ]

[ (22) Nonresident--A person who is not a resident of this state. ]

[ (23) Office--The State Office of Administrative Hearings. ]

[ (24) Operate--To drive or be in actual physical control of a motor vehicle. ]

[ (25) Peace Officer--As used in Texas Transportation Code, Chapters 522, 524 and 724, means a person elected, employed, or appointed as a peace officer under Article 2.12, Code of Criminal Procedure, or other law. A peace officer may also be referred to as an arresting officer. ]

[ (26) Public Place--Any place to which the public or a substantial group of the public has access and includes, but is not limited to, streets, highways, and the common areas of schools, hospitals, apartment houses, office buildings, transport facilities, and shops. ]

[ (27) Test--Pursuant to Texas Transportation Code, Chapter 724, Subchapter B, or Chapter 522, Subchapter I, means the following: ]

[ (A) one or more specimens of a person's breath for the purpose of analysis to determine the alcohol concentration; or ]

[ (B) one or more specimens of a person's blood for the purpose of analysis to determine the alcohol concentration or the presence in his body of a controlled substance, drug, dangerous drug or other substance; or ]

[ (C) one or more specimens of a person's urine for the purpose of analysis to determine the alcohol concentration or the presence in his body of a controlled substance, drug, dangerous drug or other substance. ]

(b) The following terms have the meaning set out in §155.5 of this title (relating to Definitions): [ this section. ]

(1) Administrative Law Judge or judge; [ Authorized representative--An attorney authorized to practice law in the State of Texas or, where permitted by applicable law, a person designated by a party to represent the party; ]

(2) APA; [ Chief Judge--The Chief Administrative Law Judge of the Office. ]

(3) Authorized representative; [ Law--State and federal statutes, regulations, and relevant case law. ]

(4) Law; [ Party--A person or agency named, or admitted to participate, in a case before the Office. ]

(5) Party; [ Person--Any individual, representative, corporation or other entity, including any public or nonprofit corporation, or any agency or instrumentality of federal, state, or local government. ]

(6) Person.

§159.4.Computation of Time.

In computing time periods prescribed by this chapter or by a judge's [ ALJ ] order, the day of the act, event, or default on which the designated period of time begins to run is not included. The last day of the period is included, unless it is a Saturday, a Sunday, an official state [ State ] holiday, or another day on which SOAH [ the Office ] is closed, in which case the time period will be deemed to end on the next day that SOAH [ the Office ] is open. When these rules specify a deadline or set a number of days for filing documents or taking other actions, the computation of time shall be by calendar days rather than business days, unless otherwise provided in this chapter or a judge's [ ALJ ] order. However, if the period within which to act is five days or less, the intervening Saturdays, Sundays, and legal holidays are not counted, unless this chapter or a judge's [ ALJ ] order otherwise specifically provides.

§159.5.Motion to Withdraw.

(a) An attorney may withdraw from representing a defendant only upon written motion for good cause shown. If another attorney is to be substituted as attorney for the defendant, the motion shall state the attorney's name, address, telephone number, and telecopier number and state that the attorney approves the substitution.

(b) If the defendant has no substitute attorney, the withdrawing attorney must include the defendant's last known address and a statement indicating whether the defendant consents to the withdrawal.

(c) If defendant does not consent to the withdrawal, the attorney must affirm that the defendant has been informed of the right to object to the motion.

(d) If the motion to withdraw is granted, the withdrawing attorney shall immediately notify the defendant in writing of any additional settings or deadlines of which the attorney has knowledge at the time of the withdrawal and has not already notified the defendant.

§159.7.Waiver or Dismissal.

(a) Waiver of Request for Hearing. The defendant may waive the request for hearing at any time before the administrative order is final. If the defendant requests a waiver after the notice of hearing is issued, the judge will enter an order accepting the waiver.

(b) Rescission of Notice of Suspension. If, after issuing a notice of hearing, DPS rescinds a notice of suspension, it shall immediately inform SOAH and the defendant of the rescission. SOAH may, on its own motion, dismiss any case from its docket once the notice of suspension has been rescinded.

§159.9.Scheduling and Notice of Hearings.

(a) On receipt of a timely request for hearing, DPS shall schedule a hearing to be conducted by a SOAH judge.

(b) The location of the hearing will be set in accordance with the requirements stated in Tex. Trans. Code Ann. §524.034 and §724.041. SOAH or DPS may change the hearing site upon agreement of all parties.

(c) With the consent of the parties, the hearing may be conducted by telephone conference call. Once DPS issues the notice of hearing scheduling the hearing by telephone conference, the hearing may be removed from the telephone hearing docket only upon timely request pursuant to §159.13 of this title (relating to Continuances) or by agreement of the parties and with the consent of SOAH.

(d) It is a rebuttable presumption that DPS mailed the notice to the defendant on the same date as the date listed in the notice of hearing.

§159.11.General Requests for Relief.

After a hearing has been scheduled to be heard by SOAH, any party making a request that requires an interim order must do so in writing to SOAH, with a copy to the opposing party. Except for a request for subpoena, the request must contain a certificate of service and a certificate of conference stating whether the opposing party has agreed to the request. Such written requests must be filed at least five calendar days prior to the scheduled hearing date, unless another time limit is specified in these rules or unavoidable circumstances prevent compliance with such time limits. A party claiming unavoidable circumstances must describe those circumstances in the written request.

§159.13.Continuances.

(a) Requests for continuance will be considered in accordance with the provisions of Tex. Trans. Code Ann. §§524.032, 524.039, and §724.041(g). DPS shall immediately notify SOAH of a continuance request under Tex. Trans. Code Ann. §524.032(b).

(b) A judge may grant a continuance if a subpoenaed witness is unavailable for the hearing.

(c) The granting of continuances shall be in the sound discretion of the judge, provided however, that the judge shall expedite the hearings whenever possible. A party requesting a continuance shall supply three dates on which the parties would be available for rescheduling of the hearing. The judge will consider these dates in resetting the case. Failure to include a certificate of service, a certificate of conference, and three alternative dates may result in denial of the continuance request or subsequent continuance requests in the same case.

(d) With the exception of a hearing that is rescheduled in accordance with Tex. Trans. Code Ann. §524.032(b), no party is excused from appearing at a hearing until notified by SOAH that a motion for continuance has been granted.

§159.15.Prehearing Discovery.

(a) A defendant shall be allowed to obtain copies of the following documents if they are contained in DPS's ALR file:

(1) police reports;

(2) any statutory warning form;

(3) any notice of suspension;

(4) any other document or record DPS intends to offer into evidence at the hearing.

(b) DPS shall be allowed to obtain copies of any non-privileged, relevant documents in the defendant's possession.

(c) All requests for discovery must be in writing and served upon the other party by one of the means described in 37 TAC §17.16(a) (relating to Service on Department of Certain Items Required to be Served on, Mailed to, or Filed with the Department). A discovery request may not be filed before a hearing request is filed and may be filed no earlier than the sixth day after the notice of suspension was issued.

(d) A party must supplement its discovery responses within five business days following receipt of discoverable documents.

(e) When one party has failed to timely supplement a proper discovery request and the other party has proven harm as a result of the failure, the judge may grant a continuance. In the alternative, the judge may proceed with the hearing, but no document properly sought and not provided in discovery will be admissible, nor may it be filed to establish a procedural issue, unless it was provided to the requestor in accordance with this rule.

(f) Depositions, interrogatories, and requests for admissions shall not be permitted.

(g) In addition to discovery as described in subsection (a) of this section, if a party believes documents or tangible things from a nonparty would be relevant and probative to the case, the party may request issuance of a subpoena duces tecum pursuant to §159.19 of this title (relating to Subpoenas) to have the documents or tangible things produced at the hearing. If a person subpoenaed under this subsection does not produce the subpoenaed documents or tangible things, the judge may grant a continuance to allow for enforcement of the subpoena. If special equipment will be required in order to offer such documents or tangible things, the party seeking their admission shall be required to supply the necessary equipment. The judge may condition the granting of the subpoena duces tecum upon the advancement by the party requesting the subpoena of the reasonable costs of reproducing the documents or tangible things requested.

§159.17.Request for Appearance of Breath Test Operator and Technical Supervisor.

(a) Upon receipt of timely request for the appearance of the certified breath test operator who administered the test and obtained the defendant's specimen to determine the level of alcohol concentration in the defendant's body and/or the certified breath test technical supervisor, DPS shall ensure that the requested individuals are available to testify by telephone. These witnesses will not be required to appear in person for the hearing except upon a showing to the judge of good cause that clearly demonstrates why an appearance by telephone would unfairly prejudice a party's rights.

(b) Testimony by telephone will be subject to the provisions of §159.23(b) of this title (relating to Participation by Telephone or Videoconferencing).

§159.19.Subpoenas.

(a) Scope.

(1) A subpoena may command a person to give testimony for an ALR hearing and/or produce designated documents or tangible things in the actual possession of that person.

(2) The party who causes a subpoena to issue must take reasonable steps to avoid imposing undue burden or expense on the person served.

(3) If a party that requests a subpoena fails to timely appear at the hearing, any subpoenaed witnesses will be released.

(b) Distance to comply. A person may not be compelled to appear in person at a hearing location that is more than 75 miles from that person's duty station.

(c) Subpoena form. Subpoenas shall be issued on a form provided by SOAH that will be made available on SOAH's website at www.soah.state.tx.us. The form must contain at least the following information:

(1) the style of the case, including the docket number;

(2) the name and address of the requested witness;

(3) the time, date, and location of the scheduled hearing;

(4) the name, address, and telephone number of the defendant, or if the defendant is represented, the defendant's representative;

(5) a description of any documents or items that are being requested;

(6) if applicable, a statement of the number of miles that the witness will travel to the hearing from the witness's place of employment; and

(7) if applicable, a statement informing the witness of the option to appear via telephone as described in subsection (d) of this section.

(d) Attorney-issued subpoena for appearance via telephone. If a hearing location has adequate telephone capability, the defendant's or DPS's attorney, if authorized to practice law in the State of Texas, may issue up to two subpoenas for witnesses to appear by telephone conference call during a hearing. One subpoena may be issued to compel the presence of the peace officer who was primarily responsible for the defendant's stop or initial detention, and the other may be issued to compel the presence of the peace officer who was primarily responsible for finding probable cause to arrest the defendant. If the same officer was primarily responsible for both the defendant's stop and arrest, the attorney may issue only one subpoena.

(1) A copy of any subpoena issued pursuant to this section must be provided to the other party on the same day it is issued.

(2) A subpoena served by the defendant upon a peace officer in accordance with this subsection must include a witness fee check or money order in the amount of $10, which must be tendered to the witness when the subpoena is served. If the subpoenaed witness does not appear for the hearing and the hearing is not continued, the person who served the subpoena, not the judge or SOAH, will be responsible for recovering the witness fee check from the witness.

(3) In complying with a subpoena issued under this subsection, a certified peace officer may choose whether to attend the hearing in person or participate by telephone. If the peace officer intends to participate by telephone, the officer must provide to the DPS attorney the telephone number where he or she may be reached at the time of the hearing. If the peace officer attends the hearing in person, the Defendant will not be required to provide a mileage fee check for Defendant.

(4) If a witness will testify by telephone and documents have been subpoenaed or a witness has been subpoenaed only to produce documents, the witness must provide the designated documents to DPS prior to the hearing.

(e) Subpoena request filed with judge.

(1) No later than ten days prior to the hearing, a party may file a subpoena request with SOAH that clearly demonstrates good cause to compel a witness's appearance in person or by telephone, when:

(A) a party seeks a peace officer's in-person appearance and clearly demonstrates that an appearance by telephone would unfairly prejudice that party;

(B) a party intends to call more than two peace officers to testify as witnesses by telephone;

(C) a party seeks to compel the presence of witnesses who are not peace officers;

(D) the physical limitations of a particular site will not accommodate testimony by telephone; or

(E) a defendant represents himself or herself.

(2) In addition to being supported by a statement of good cause and unfair prejudice, the request must also include the specific issues about which the witness is to testify. A general statement asserting that the witness will testify about reasonable suspicion to stop or probable cause to arrest the defendant will not suffice.

(3) A subpoena served by the defendant upon a peace officer in accordance with this subsection must include a witness fee check or money order in the amount of $10, which must be tendered to the witness when the subpoena is served. Also, when the witness appears for the hearing, the Defendant must tender to the witness a check for mileage based on the rate listed in the state mileage guide at http://ecpa.cpa.state.tx.us/mileage/Mileage.jsp.

(f) Judge's discretion. The decision to issue a subpoena, as described in subsection (e) of this section, shall be in the sound discretion of the judge assigned to the case. The judge shall refuse issuance of a subpoena if:

(1) the testimony or documentary evidence is immaterial, irrelevant, or would be unduly repetitious;

(2) good cause has not been shown.

(g) Service upon witness. The party who issues or is granted a subpoena shall be responsible for having the subpoena served in accordance with Tex. R. Civ. Proc. §176.5. A subpoena to compel the presence of a peace officer or to secure documents from that officer may also be served by accepted alternative methods established by that peace officer's law enforcement agency, except that a subpoena must be served at least five days before the scheduled hearing.

(h) Continuing effect. A properly-issued subpoena is in effect until the judge releases the witness or until a motion to quash or for protective order is filed. If a hearing is rescheduled and a subpoena is extended, the party who subpoenaed the witness shall promptly notify the witness of the new hearing date unless the judge specifically directs otherwise.

(i) Motion to quash or for protective order.

(1) On behalf of a subpoenaed witness, a party may move to quash a subpoena or for a protective order. The party that moves to quash a subpoena must serve the motion on the other party at the time the motion is filed with SOAH.

(2) A witness need not comply with the part of a subpoena from which protection is sought unless ordered to do so by the judge.

(3) A party may seek an order from the judge at any time after the motion to quash or motion for protective order has been filed.

(4) In ruling on objections or motions for protection, the judge must provide a person served with a subpoena an adequate time for compliance, protection from disclosure of privileged material or information, and protection from undue burden or expense. The judge also may impose reasonable conditions on compliance with a subpoena.

§159.21.Hearing.

(a) Procedures.

(1) Hearings shall be conducted in accordance with the APA, Tex. Gov't Code Ann. Chapter 2001, when applicable, and with this chapter, provided that if there is a conflict between the provisions of the APA and the provisions of this chapter, this chapter shall govern. If a conflict exists between the provisions of this chapter and Tex. Trans. Code Ann. Chapters 522, 524, or 724, and the provisions in this chapter cannot be harmonized with a statute, the applicable statute controls.

(2) Once the hearing has begun, the parties may be off the record only when the judge permits. If a discussion off the record is pertinent, the judge will summarize it for the record.

(3) In the interest of justice and efficiency, the judge may question witnesses.

(4) The judge shall exclude testimony or any evidence which is irrelevant, immaterial, or unduly repetitious.

(b) Evidence. Pursuant to Tex. Gov't Code Ann. §2001.081, the rules of evidence as applied in a non-jury civil case in a district court of this state shall apply to a contested case.

(c) Witnesses and affidavits.

(1) All witnesses shall testify under oath.

(2) An officer's sworn report of relevant information shall be admissible as a public record. However, the defendant shall have the right to subpoena the officer in accordance with §159.19 of this title (relating to Subpoenas). If the defendant timely subpoenas an officer and the officer fails to appear without good cause, information obtained from that officer shall not be admissible.

(3) All substantive and procedural rights apply to the telephonic appearance of such witness, subject to the limitations of the physical arrangement as set out in §159.23(b) of this title (relating to Participation by Telephone or Videoconferencing).

(d) Record of hearing.

(1) The judge shall make an accurate and complete tape recording of the oral proceedings of the hearing.

(2) SOAH will maintain a case file that includes the tape recording, pleadings, evidence, and the judge's decision.

(3) SOAH will maintain case files in accordance with the terms of its Records Retention Schedule.

(e) Interpreters.

(1) Upon the defendant's written request for an interpreter filed with SOAH and DPS not less than seven days prior to the date of the hearing, SOAH will provide an interpreter for non-English speaking defendants or for the defendant's subpoenaed witnesses who appear at the hearing. If the defendant fails to make a timely request, the judge may continue the hearing to secure an interpreter, or the defendant may provide an interpreter. However, the defendant's attorney may not serve as the interpreter.

(2) Interpreters for deaf or hearing-impaired parties will be secured by SOAH, subject to the APA §2001.055.

(3) A defendant who makes a request for an interpreter pursuant to this subsection and fails to appear may be subject to costs incurred by SOAH in securing the interpreter or may be required to pay for securing an interpreter for a subsequent hearing.

§159.23.Participation by Telephone or Videoconferencing.

(a) Upon the judge's own motion, the judge may conduct all or part of a hearing on preliminary matters by telephone or videoconferencing if each participant has an opportunity to participate in and hear the entire proceeding.

(b) Procedural Rights and Duties. All substantive and procedural rights and duties apply to telephone or videoconference hearings, subject only to the limitations of the physical arrangement. The parties shall notify SOAH of their telephone numbers for the purpose of their appearance at the hearing. The parties shall contact their respective witnesses to ensure their availability at the hearing. When a hearing is held in person, but a subpoenaed law enforcement officer will testify by phone, the officer will notify DPS, not the defendant, of a telephone number where he or she may be reached.

(c) Documentary evidence. To be offered in a telephone or videoconference hearing, copies of exhibits should be marked and must be filed with SOAH and all parties no later than two business days prior to the scheduled hearing, unless otherwise agreed by the parties. If a witness, in preparation for or during testimony, reviews any document that has not been prefiled and the opposing party requests an opportunity to review the document, the judge will go off the record and allow the witness to read the document to the opposing party.

(d) Default. For a telephone or videoconference hearing, the following may be considered a failure to appear and grounds for default, if the conditions exist for more than ten minutes after the scheduled time for hearing:

(1) failure to answer the telephone or videoconferencing line;

(2) failure to free the line for the proceeding; or

(3) failure to be ready to proceed with the hearing or a prehearing or post-hearing conference as scheduled.

§159.25.Failure to Attend Hearing and Default.

(a) Upon proof by DPS that notice of the hearing on the merits was mailed to the last known address of defendant, or if defendant has legal representation, to defendant's counsel, and that notwithstanding such notice, defendant failed to appear, defendant's right to a hearing on the merits is waived. A rebuttable presumption that proper notice was given to the defendant may be established by the introduction of a notice of hearing dated not earlier than eleven days prior to the hearing date and addressed to defendant's or defense counsel's last known address, as reflected on defendant's notice of suspension, request for hearing, driving record, or similar documentation presented by DPS. Under those circumstances, the judge will proceed in defendant's absence and enter a default order.

(b) Within ten business days of the default, the defendant may file a written motion with SOAH and DPS requesting that the default order be vacated because the defendant had good cause for failing to appear. The defendant's written motion must state whether he has conferred with DPS, whether DPS opposes the motion, and if DPS does oppose the motion, list dates and times for a hearing on the motion that are agreeable to both parties. Whether or not DPS opposes the motion, the judge may rule on the motion without setting a hearing or may set a hearing to consider the motion. A hearing on a motion to vacate a default order may be held by telephone conference call. If the judge finds good cause for the defendant's failure to appear, the judge shall vacate the default order and reset the matter for a contested case hearing.

§159.27.Hearing Disposition.

(a) If the judge finds that DPS proved the requisite facts as specified in Tex. Trans. Code Ann. §§522.105, 524.035, or §724.042 by a preponderance of the evidence, the judge shall grant DPS's petition.

(b) If the judge finds DPS did not prove all of the requisite facts by a preponderance of the evidence, the judge shall deny DPS's petition, and DPS shall not be authorized to suspend or deny defendant's license or disqualify defendant from receiving a license for the conduct at issue.

§159.29.Decision of the Administrative Law Judge.

(a) Upon conclusion of the hearing, the judge shall issue a written decision that includes findings of fact and conclusions of law and advises parties of their rights to appeal.

(b) The decision of the judge is final and appealable. No party shall file a motion for rehearing with SOAH.

§159.31.Appeal of Judge's Decision.

(a) The record on appeal shall consist of the following:

(1) the first file-marked or stamped copy of all parties' motions or other pleadings;

(2) all written orders or decisions issued by the judge and any evidence of transmittal to the parties;

(3) all exhibits admitted into evidence;

(4) all exhibits not admitted into evidence, but made a part of the record by a party as an offer of proof or bill of exceptions; and

(5) a transcription of the proceedings electronically recorded by SOAH.

(b) A person who appeals a suspension may obtain a transcript of the administrative hearing by sending a written request to SOAH within ten days of filing the appeal and paying the applicable fees. The fees shall not exceed the actual cost of preparing or copying the transcript, and upon receipt of the fees, SOAH shall promptly furnish the reviewing court and both parties a certified copy of the record. The transcription of the electronic recording made by SOAH constitutes the official record for appellate purposes. For three years after notice of an appeal is filed, SOAH will maintain the file and original recording of proceedings. A copy of the file and recording will be available for review by the parties or a reviewing court, if needed.

(c) If a case is remanded for taking of additional evidence, the appellant must file with SOAH, within ten days of the signing of the reviewing court's remand order, a request for relief, including setting a hearing on remand. The request must include a copy of the remand order and if a hearing is requested, an estimate of the time required to present the additional evidence.

(d) A remand under this section does not stay the suspension of a driver's license.

§159.33.Other SOAH Rules of Procedure.

Other SOAH rules of procedure found at Chapters 155, 157 and 161 of this title (relating to Rules of Procedure, Temporary Administrative Law Judges, and Requests for Records) may apply in contested cases under this chapter unless there are specific applicable procedures set out in this chapter. The sections that specifically apply include the following:

(1) §155.15 of this title (relating to Powers and Duties of Judges);

(2) §155.17 of this title (relating to Assignment of Judges to Cases);

(3) §155.21 of this title (relating to Representation of Parties);

(4) §155.31 of this title (relating to Discovery), specifically subsections (l) and (m);

(5) §155.39 of this title (relating to Stipulations);

(6) §155.41 of this title (relating to Procedure at Hearing);

(7) §155.49 of this title (relating to Conduct and Decorum);

(8) §157.1 of this title (relating to Temporary Administrative Law Judge); and

(9) §161.1 of this title (relating to Charges for Copies of Public Records).

This agency hereby certifies that the proposal has been reviewed by legal counsel and found to be within the agency's legal authority to adopt.

Filed with the Office of the Secretary of State on March 28, 2006.

TRD-200601864

Cathleen Parsley

General Counsel

State Office of Administrative Hearings

Earliest possible date of adoption: May 14, 2006

For further information, please call: (512) 475-4931


Chapter 159. RULES OF PROCEDURE FOR ADMINISTRATIVE LICENSE SUSPENSION PROCEEDINGS

1 TAC §§159.5, 159.7, 159.9, 159.11, 159.13, 159.15, 159.17, 159.19, 159.21, 159.23, 159.25, 159.27, 159.29, 159.31, 159.33, 159.35, 159.37, 159.39, 159.41

(Editor's note: The text of the following sections proposed for repeal will not be published. The sections may be examined in the State Office of Administrative Hearings or in the Texas Register office, Room 245, James Earl Rudder Building, 1019 Brazos Street, Austin.)

The State Office of Administrative Hearings (SOAH) proposes to repeal §§159.5, 159.7, 159.9, 159.11, 159.13, 159.15, 159.17, 159.19, 159.21, 159.23, 159.25, 159.27, 159.29, 159.31, 159.33, 159.35, 159.37, 159.39, and 159.41.

The repeal of some of these sections will serve to remove outdated rules no longer necessary in the Administrative License Revocation process, and also remove some existing rules to allow the simultaneous adoption of new rules providing more uniform procedure, which are being concurrently proposed.

Cathleen Parsley, General Counsel, has determined that for the first five-year period the repeals are in effect, there will be no fiscal implications for state or local government as a result of enforcing or administering the repeals.

Cathleen Parsley also has determined that for the first five-year period the repeals are in effect, the public benefit anticipated as a result of the repeals will be to ensure more uniform and detailed guidelines for hearing processes in the many Administrative License Revocation cases referred to the State Office of Administrative Hearings by the Texas Department of Public Safety. There will be no effect on small businesses as a result of enforcing the repeals. There is no anticipated economic cost to individuals who are required to comply with the proposed repeals.

Written comments on the proposed repeals must be submitted within 30 days after publication of the proposed sections in the Texas Register to Debra Anderson, Paralegal, State Office of Administrative Hearings, to P. O. Box 13025, Austin, Texas 78711-3025, by e:Mail at: debra.anderson@soah.state.tx.us, or by facsimile to (512) 463-1576.

The repeals are proposed under Texas Transportation Code §§522.105, 524.002 and 724.003 which authorize SOAH to promulgate rules for the administration of Chapters 522, 524 and 724 of the Texas Transportation Code.

The following statutes are affected by the proposed amendments: Texas Transportation Code, Chapters 522, 524 and 724; Texas Government Code Chapters 2001 and 2003; and Texas Penal Code Chapter 49.

§159.5.Notice of Suspension.

§159.7.Request for Hearing.

§159.9.Scheduling of Hearings.

§159.11.Continuances.

§159.13.Prehearing Discovery.

§159.15.Request for Appearance of Department's Witnesses.

§159.17.Request for Subpoenas.

§159.19.Issues.

§159.21.Issues in Cases Involving Commercial Drivers' Licenses.

§159.23.Hearing.

§159.25.Telephone Hearings.

§159.27.Failure to Attend Hearing and Default.

§159.29.Hearing Disposition.

§159.31.Decision of the Administrative Law Judge.

§159.33.Effective Date of Suspensions.

§159.35.Proceedings Open to the Public.

§159.37.Appeal of Judge's Decision.

§159.39.Stay of Suspension.

§159.41.Other Office Rules of Procedure.

This agency hereby certifies that the proposal has been reviewed by legal counsel and found to be within the agency's legal authority to adopt.

Filed with the Office of the Secretary of State on March 28, 2006.

TRD-200601863

Cathleen Parsley

General Counsel

State Office of Administrative Hearings

Earliest possible date of adoption: May 14, 2006

For further information, please call: (512) 475-4931


Chapter 161. REQUESTS FOR RECORDS

1 TAC §161.1

The State Office of Administrative Hearings (SOAH) proposes amendments to §161.1, concerning Charges for Copies of Public Records. The reason for the amendments is to correct the reference to the "General Services Commission" to reference its current title of "Texas Building and Procurement Commission," and to correct the reference to the Commission's section citation from "§§111.61 - 111.70 of this title (relating to Cost of Copies of Open Records)" to "§§111.61 - 111.71 of this title (relating to Cost of Copies of Public Information)."

Cathleen Parsley, General Counsel, has determined that for the first five-year period the amended rules are in effect there will be no fiscal implications for state or local government as a result of enforcing or administering them.

Cathleen Parsley also has determined that for the first five-year period the amended rules are in effect the public benefit anticipated as a result of the rules will be to ensure more efficient and fair procedures for participants in contested case hearings. There will be no effect on small businesses as a result of enforcing the rules. There is no anticipated economic cost to individuals who are required to comply with the proposed rules.

Written comments must be submitted within 30 days after publication of the proposed amendments in the Texas Register to Debra Anderson, Paralegal, State Office of Administrative Hearings, P.O. Box 13025, Austin, Texas 78711-3025, or by e:Mail at debra.anderson@soah.state.tx.us., or by facsimile to (512) 463-1576.

The amended rules are proposed under Government Code, Chapter 2003, §2003.050, which authorizes the State Office of Administrative Hearings to conduct contested case hearings and requires adoption of procedural rules for hearings, and Government Code, Chapter 2001, §2001.004, which requires agencies to adopt rules of practice setting forth the nature and requirements of formal and informal procedures.

The provisions to which the proposed amendments relate affect Government Code, Chapters 2001 and 2003.

§161.1.Charges for Copies of Public Records.

(a) The charge to any person requesting photocopied reproductions of any readily available record of the State Office of Administrative Hearings will be the charges established by the Texas Building and Procurement [ General Services ] Commission which are codified at 1 TAC §§111.61 - 111.71, [ §§111.61-111.70 ] of this title (relating to Cost of Copies of Public Information [ Open Records ]) [ (effective April 22, 1994) ].

(b) (No change.)

This agency hereby certifies that the proposal has been reviewed by legal counsel and found to be within the agency's legal authority to adopt.

Filed with the Office of the Secretary of State on March 28, 2006.

TRD-200601865

Cathleen Parsley

General Counsel

State Office of Administrative Hearings

Earliest possible date of adoption: May 14, 2006

For further information, please call: (512) 475-4931


Part 12. COMMISSION ON STATE EMERGENCY COMMUNICATIONS

Chapter 251. REGIONAL PLANS--STANDARDS

1 TAC §251.6

The Commission on State Emergency Communications (CSEC) proposes amendments to §251.6, concerning guidelines for submission requests from regional planning commissions on strategic plans, amendments and allocation of funds.

The amendments are proposed as part of Rule Review of Chapter 251 pursuant to Texas Government Code, §2001.039. The rule continues to be essential to the CSEC's operations and per statutory authority.

The proposed changes to the rule include: alignment with current CSEC rule structure; alignment with the current strategic plan funding levels of priority; deletion of duplication of information provided in Program Policy Statement (PPS-008), Plan Amendments; and, revised instructions and funding parameters for pagers and generators. The TARC 911 Coordinators' Subcommittee formally requested that CSEC review and revise the requirements for funding caps for the purchase of generators. Representatives of the TARC subcommittee worked closely with CSEC staff to research and develop the proposed changes to the rule. TARC concurs with the proposed changes.

Paul Mallett, Executive Director, has determined that for the first five-year period the amendments are in effect there will be no fiscal implications for state or local government as a result of enforcing or administering the amended section.

Mr. Mallett also has determined that for each year of the first five years the amendments are in effect, the public benefit anticipated as a result of enforcing the amended section will be improved system for funds allocation and implementation levels for the 9-1-1 program statewide. No historical data is available; however, there appears to be no direct impact on small or large businesses. There is no anticipated economic cost to persons who are required to comply with the amendments as proposed. There is no anticipated local employment impact as a result of enforcing the amended section.

Comments on the amendments may be submitted in writing within 30 days after publication of the proposal in the Texas Register to Paul Mallett, Executive Director, Commission on State Emergency Communications, 333 Guadalupe Street, Suite 2-212, Austin, Texas 78701-3942.

The amendments are proposed pursuant to the Texas Health and Safety Code, Chapter 771, §§771.051, 771.071, 771.0711, 771.072, and 771.075; and Texas Administrative Code, Title 1, Part 12, Chapter 251, Regional Plan Standards, which provide the Commission on State Emergency Communications with the authority to plan, develop, fund, and provide provisions for the enhancement of effective and efficient 9-1-1 service.

No other code, statute, or article is affected by the amendments.

§251.6.Guidelines for Strategic Plans, Amendments, and Revenue Allocation.

(a) Purpose. The Commission on State Emergency Communications (Commission) establishes [ purpose of ] this rule [ is ] to provide [ the structure and ] guidelines for a regional planning commission (RPC) to follow in developing or amending its regional plan and in describing how money allocated by the Commission is to be allocated in the region [ regional strategic plans, funding of the plans, and amendments to the plans ].

[(b) Background. As authorized by Chapter 771 of the Texas Health and Safety Code, the Commission on State Emergency Communications (Commission) may impose 9-1-1 emergency service fees and equalization surcharges to support the planning, development, and provision of 9-1-1 service throughout the State of Texas. In accordance with Section 771.055 of the above chapter, such service implementation shall be consistent with regional plans developed by regional planning commissions (RPC). These regional plans must meet standards established by the Commission and "...include a description of how money allocated to the region under this chapter is to be allocated in the region." Section 771.057 addresses amendments to regional plans and indicates that such amendments may be adopted in accordance with procedure established by the Commission.]

(b) [ (c) ] Definitions. Unless the context clearly indicates otherwise, terms contained in this rule are defined as shown in Commission Rule 251.14, General Provisions and Definitions.

(c) [ (d) ] Regional [ Strategic ] Plan Budgets [ Levels ]. Regional [ strategic ] plans [ developed in accordance with Chapter 771, along with the commensurate allocation of the above described funds, ] shall be [ reflect implementation ] consistent with the Administration, Equipment, and Program Budgets approved by the Commission. The Program Budget includes the following [ following ] four major strategic plan levels (in order of priority): for state appropriations years 2004-2005.

[(1) Level I: The equipment, network, and database equipment and/or services that provide the essential elements of 9-1-1 service, including the maintenance and replacement of equipment.]

[(A) Network;]

[(B) Wireless Phase I;]

[(C) Database;]

[(D) Equipment Lease;]

[(E) Equipment Purchase;]

[(F) Language Line; and]

[(G) Equipment Maintenance.]

[(2) Level II: The activities, equipment, and/or services that directly support and enhance 9-1-1 call delivery and data maintenance for the level of service provided to the region. ]

[(A) Database Maintenance;]

[(B) MIS;]

[(C) Mapped ALI;]

[(D) PSAP Room Prep;]

[(E) PSAP Training;]

[(F) Public Education; and ]

[(G) Wireless Phase II.]

[(3) Level III: The activities, equipment, and/or services that provide auxiliary enhancements to the delivery of 9-1-1 calls and the level of service provided to the region.]

[(A) Network Diversity;]

[(B) Training Positions;]

[(C) Emergency Power;]

[(D) Recorders;]

[(E) Pagers;]

[(F) Ancillary Maintenance & Repair; and]

[(G) Other.]

[(4) Level IV: Use of Revenue in Certain Counties. The activities, equipment, and/or services that provide auxiliary enhancements to the 9-1-1 system of a county subject to Health and Safety Code, Chapter 771, with a population over 700,000, or the county that has the highest population within an RPC participating in the Commission program to include, but not limited to:]

[(A) Design of a 9-1-1 System;]

[(B) Purchase of Equipment;]

[(C) Maintenance of Equipment; and]

[(D) Personnel.]

[ (e) New Strategic Plan Levels. Regional strategic plans developed in accordance with Chapter 771, along with the commensurate allocation of the above described funds, shall reflect implementation consistent with the following four major strategic plan levels (in order of priority) beginning state appropriations year 2006. ]

(1) Level I: The equipment, network, and database equipment and/or services that provide the essential elements of 9-1-1 service, including the maintenance and replacement of equipment.

(A) Network;

(B) Wireless;

(C) Database;

(D) Equipment Lease;

(E) Language Line; and

(F) Equipment Maintenance.

(2) Level II: The activities, equipment, and/or services that directly support and enhance 9-1-1 call delivery and data maintenance for the level of service provided to the region.

(A) Database Maintenance;

(B) MIS;

(C) Mapped ALI;

(D) PSAP Room Prep;

(E) PSAP Training; and

(F) Public Education.

(3) Level III: The activities, equipment, and/or services that provide auxiliary enhancements to the delivery of 9-1-1 calls and the level of service provided to the region.

(A) Network Diversity;

(B) PSAP Supplies; and

(C) Ancillary Maintenance & Repair.

(4) Level IV: Use of Revenue in Certain Counties. The activities, equipment, and/or services that provide necessary auxiliary enhancements to the 9-1-1 system of a county eligible under Health and Safety Code section 771.0751 because it has subject to Health and Safety Code, Chapter 771, with a population over 700,000[ , ] or is the county that has the highest population within an RPC participating in the Commission program . [ to include, but not limited to: ]

[(A) Design of a 9-1-1 System;]

[(B) Purchase of Equipment;]

[(C) Maintenance of Equipment; and]

[(D) Personnel.]

(d) [ (f) ] Regional [ Strategic ] Plans. Regional [ strategic ] plans developed in compliance with Chapter 771 and Commission Rule 251.1 shall include projected [ a strategic plan that projects ] financial operating information for at least the two state fiscal years following submission of the plan [ into the future ]; and strategic planning information for at least the five state fiscal years following submission of the plan [ into the future ].

(1) The Commission shall establish the format of regional [ strategic ] plans for the sake of identifying overall statewide requirements in its implementation.

(2) Regional [ Strategic ] plans shall be consistent with the four major implementation priority levels identified above and with all applicable Commission policies and rules.

(3) An RPC shall submit financial reports at least quarterly on a schedule to be established by the Commission. The financial report shall identify actual implementation costs by county, regional [ strategic ] plan priority level and component.

(4) An RPC shall submit performance reports at least quarterly on a schedule to be established by the Commission. The performance report shall reflect the progress of implementing the RPC's regional [ region's strategic ] plan, including the status of equipment, services and program deliverables, in a format to be determined by the Commission.

(e) [ (g) ] Amendments to Regional [ Strategic ] Plans.

(1) An RPC may make changes to its approved regional [ strategic ] plan to accommodate unanticipated requirements and/or to prevent disruption of its implementation schedule, contingent upon compliance with all Commission policies and procedures. [ Examples of occasions when an amendment must be submitted to the Commission include, but are not limited to: ]

[(A) Requests for approval of items under Commission Rule 251.3, Use of Revenue in Certain Counties;]

[(B) Requests to shift budget authority from the Administrative budget to the Program budget, and vice versa;]

[(C) Requests to increase the total percentage of staff time charged to the 9-1-1 program (FTE), when the increase exceeds the total amount of time charged for all personnel funded with 9-1-1 funds in the current approved plan;]

[(D) Requests to add a call-taking position at a PSAP when the total number of call-taking positions for the region would increase;]

[(E) Requests for exceptions to Commission policy;]

[(F) Requests for additional funds; and]

[(G) As required by other Commission rule, or upon a request from the Commission.]

(2) Requests for amendments to the regional plan shall be submitted in writing to the Commission. The documentation required for changes will be submitted [ an amended budget, narrative, related worksheets and a letter indicating executive approval of the amendment ] according to Commission policy. The Commission shall take action, no fewer than four times annually, on any regional [ Regional ] plan amendment request submitted for approval.

(3) Emergency situations requiring amendments to regional plans that require additional funding may be presented to the Commission for review and consideration contingent upon the availability of such funds within the Program Budget level priorities in subsection (c) of this section [ as established by the Commission ].

(f) [ (h) ] Allocation of Revenue.

(1) Service Fee allocation--Consistent with Health and Safety Code sections 771.056(d)[ , ] and 771.078 . The [ the ] Commission shall allocate, by contract, service fee revenue to an RPC [ RPCs ] contingent on the availability of appropriated funds.

(2) Equalization Surcharge Funds

(A) Within the context of Health and Safety Code section [ Section ] 771.056(d), the Commission shall consider any revenue insufficiencies to represent need for equalization surcharge funding support.

(B) Consistent with this rule, the Commission shall allocate, by agreement, equalization surcharge funds and service fees to RPCs based upon the Commission's statewide strategic plan and contingent upon [ on ] the availability of appropriated funds over a two-year period.

(C) The Commission may allocate equalization surcharge to an emergency communication district (District) based on District requests and availability of appropriated funds.

(D) Equalization surcharge funds shall be allocated first to [ eligible ] recipients requiring such funds for administrative budgetary purposes, followed by the Program Budget level priorities in subsection (c) of this section [ Level I, II, and III activities in that order ].

(E) If sufficient equalization surcharge funds are not available to fund all RPC regional [ strategic ] plan and District requests, funds shall be allocated to provide a consistent level of 9-1-1 service throughout the State of Texas in accordance with the Program Budget level priorities in subsection (c) of this section [ priority levels described ]. Allocation [ Such allocation ] methods may include, but are not limited to, [ one or more of ] the following:

(i) In reverse order of priority, reducing the number of priority level components supported with equalization surcharge funds; and/or

[(ii) Requesting that regional strategic plans be adjusted to allow for more implementation time as appropriate; and/or]

(ii) [ (iii) ] In order of priority, proportionally allocating available funds among requesting agencies.

(F) The Commission may elect to hold a balance of equalization surcharge funds in reserve for emergencies and other contingencies.

(g) [ (i) ] Funding Parameters for Ancillary Equipment . Ancillary Equipment includes [ The Commission will look favorably on plan amendments for tandem and/or database service arrangements and ancillary equipment that will improve the effectiveness and reliability of 9-1-1 call delivery systems. This will include ] the following when the equipment supports [ is for ] 9-1-1 call delivery: surge protection devices, emergency power equipment [ uninterrupted power source (UPS), power backup ], voice recorders, and paging systems [ for 9-1-1 call delivery, security devices, and other back-up communication services ]. An RPC [ Regions ] shall refer to the strategic planning guidelines for instructions as to the appropriate budget line item to which the costs for purchase and maintenance of these items should be assigned.

(1) Paging Systems. Funding for the paging systems may be approved when such systems are the most effective means of 9-1-1 call delivery [ and they do not replace other paging or radio alerting systems. Funding for paging will be limited to systems, where alternative systems or the systems now in use cause significant delay in 9-1-1 call delivery and where existing radio systems can be modified to accommodate paging ]. Funding for pagers (receivers) will be limited to [ three, providing pagers to only ] necessary core responders . The Commission will fund the actual cost of the pagers not to exceed $450 per pager. [ within an organization (e.g., in a 15-member volunteer emergency medical group, only the on-call ambulance driver and one or two attendants would be furnished pagers). ]

(2) Voice Recording Equipment. Voice loggers may be approved when the primary use of the equipment is in support of the 9-1-1 call-taking and call-delivery function. Extra capacity on such systems may be used for other public safety functions (such as dispatch).

(A) The Commission will normally fund voice recording capability in a PSAP to record the conversation on 9-1-1 lines and administrative or 10-digit emergency lines in order to also accommodate wireless, telematics, and Voice over IP 9-1-1 emergency calls.

(B) The Commission will normally [ also ] fund recording capability to record the transfer of an emergency call from the PSAP first answering the call to the agency that is responsible for providing the required emergency services.

(C) The funding of recording devices to transfer information from another recorder will be approved only upon specific justification of need.

(D) The following guidelines will apply to determine the amount to be funded by the Commission:

(i) For a 2 position PSAP, the Commission will fund the actual cost of the recording system not to exceed $15,000 ; or [ . ]

(ii) For PSAPs with 3 positions or more, the Commission will fund the actual cost of the recording system not to exceed $25,000.

(E) The Commission will consider funding of recording capabilities greater than those suggested by the guidelines when sufficient justification is provided as part of a regional [ strategic ] plan.

(3) [ (j) ] Emergency Power Equipment. Each PSAP location should be evaluated by the RPC to determine if the [ an ] emergency power system needs [ is required ] to be updated to insure the ability to answer 9-1-1 calls in the event that commercial [ the standard ] power [ supply ] is interrupted. An Emergency [ A PSAP that receives a relatively small number of emergency calls per day may be able to provide acceptable service without the availability of ANI or ALI for short periods of time. If the same PSAP is located in a location that is subject to prolonged power outages, it may need emergency ] power sources equipment should be evaluated and tested on a regular schedule . Other considerations include:

(A) [ (1) ] An uninterrupted power source (UPS) [ Where conditions exist that indicate a need for emergency power systems to support 9-1-1 call delivery, UPS ] should be considered as basic [ the ] emergency power equipment [ system ]. A UPS should provide continuous power to keep essential 9-1-1 system components functioning for a short period of time until generator or other emergency power equipment become operable, if necessary. A UPS primarily functions continuously to maintain a clean source of commercial power. [ Emergency generators (power backup) should be approved only in locations with a documented history of or potential for extended interruptions of commercial power supplies. Generally, 9-1-1 funding will not be used to provide both a generator and UPS. At least 75 percent of the capacity of any UPS system or generator funded should directly support an existing (or planned) 9-1-1 system. ]

(B) Generators should be considered as auxiliary emergency power equipment and should directly support an existing (or planned) 9-1-1 system. A generator should provide continuous power to keep 9-1-1 equipment specific to the PSAP functioning.

[(2) Each request for UPS must include a worksheet showing the calculations used to determine the system size and batteries required. This worksheet must identify all equipment to be powered and the operating voltage and current drain of each piece of equipment. The request for UPS must identify the load capacity of the system requested and the length of time the batteries will operate the PSAP 9-1-1 equipment. The request should also indicate whether the 9-1-1 equipment has any built-in UPS capability.]

[(3) The length of time that a UPS battery will be required to provide emergency power is a major factor in determining the cost of the UPS system. Each request for UPS must provide information justifying the size of the batteries requested. Information concerning the history of power failures at the PSAP location and the average time to restore power should be obtained from the local power company.]

[(4) If the history of power failures, or the expected restoration time, is more than can be economically justified for UPS batteries, an emergency generator can be considered. Any request for an emergency generator, in addition to a UPS, shall include a comparison of the cost of a UPS with sufficient batteries to the cost of the combination of the UPS and an emergency generator.]

[ (5) There may be circumstances that justify the installation of an emergency generator (backup power), in addition to an UPS, as the primary system for a PSAP location. In these cases, the request for the emergency generator must include an explanation and comparison of the relevant costs. ]

(C) [ (6) ] The following guidelines will apply to determine the amount of generator costs [ When the operator of a 9-1-1 PSAP and the providers of emergency services desire to share the emergency power system funded by the Commission, the following guidelines will apply to determine the amount ] to be funded by the Commission:

(i) [ (A) ] For a 2 position PSAP, [ When the minimum size of emergency power system that can be purchased to serve the PSAP provides more capacity than is needed by the PSAP, the other agency may use the extra capacity and all funding will be provided by ] the Commission will fund the actual cost of the generator not to exceed $25,000 .

(ii) [ (B) ] For PSAPs with 3 positions or more, [ When the PSAP requires a given size of emergency power system, and the other agency requires additional capacity, ] the Commission will fund the actual cost of the generator not to exceed $40,000 [ size of emergency power equipment needed to supply the PSAP alone and the other agency will fund all additional capacity ].

(4) [ (7) ] Funding may be approved by the Commission for surge protection devices when they are used for protection of 9-1-1 specific electronic equipment. A complete evaluation of grounding at 9-1-1 PSAPs may be funded by the Commission [ Documented justification must be provided ].

This agency hereby certifies that the proposal has been reviewed by legal counsel and found to be within the agency's legal authority to adopt.

Filed with the Office of the Secretary of State on April 3, 2006.

TRD-200601985

Paul Mallett

Executive Director

Commission on State Emergency Communications

Earliest possible date of adoption: May 14, 2006

For further information, please call: (512) 305-6933


Part 15. TEXAS HEALTH AND HUMAN SERVICES COMMISSION

Chapter 355. REIMBURSEMENT RATES

Subchapter F. REIMBURSEMENT METHODOLOGY FOR PROGRAMS SERVING PERSONS WITH MENTAL ILLNESS AND MENTAL RETARDATION

1 TAC §355.781

The Health and Human Services Commission (HHSC) proposes an amendment to §355.781, concerning the reimbursement methodology for Rehabilitative Services, in Chapter 355, Reimbursement Rates.

BACKGROUND AND PURPOSE

The purpose of the amendment to this Subchapter is to identify the department (formerly the Texas Department of Mental Health and Mental Retardation [TDMHMR] or successor agency) as the Department of State Health Services (DSHS) and remove any references to "TDMHMR." Also, due to the restoration of the general counseling benefit to all Medicaid recipients, the reference to rehabilitative counseling and psychotherapy is removed from the rule. The rule is further amended to allow the provision of skills training in a group format to a child or adolescent.

FISCAL NOTE

Thomas M. Suehs, Deputy Executive Commissioner for Financial Services, has determined that the general revenue savings to the Department of State Health Services are as follows: approximately $134,351.55 each year for the fiscal years 2007-2011. There will be no effect to local governments.

SMALL AND MICRO-BUSINESS IMPACT ANALYSIS

HHSC has determined that there is no adverse economic effect on small businesses or micro-businesses, or on businesses of any size, as a result of enforcing or administering the amendment. This was determined by interpretation of the rules that small businesses and micro-businesses will not be required to alter their business practices in order to comply with the sections. There are no anticipated economic costs to persons who are required to comply with the sections as proposed. Pursuant to Government Code §2001.022, a review has been made and there is no anticipated negative impact on local employment.

PUBLIC BENEFIT

Ed White, Director of Rate Setting and Forecasting, in accordance with Government Code §2001.024, has determined that the public will benefit from adoption of the sections. The public benefit anticipated as a result of enforcing or administering the sections is to ensure the availability of mental health rehabilitative services, that the need for such services is appropriately assessed and authorized, that the uniqueness of services is clearly delineated between adult and child, that such services will be provided by qualified and trained staff, that correctly provided and documented services will be appropriately reimbursed by the department and that a fair hearings process is available.

TAKINGS IMPACT ASSESSMENT

HHSC has determined that the proposal does not restrict or limit an owner's right to his or her property that would otherwise exist in the absence of government action and, therefore, does not constitute a taking under Government Code, §2007.043.

PUBLIC COMMENT

Written comments on the proposal may be submitted to Lupita Villarreal, Rate Analyst, Rate Analysis-Acute Care and Cost Reporting, Health and Human Services Commission, P.O. Box 85200, MC-H400, Austin, Texas 78708-5200, (512) 491-1178 or by email to lupita.villarreal@hhsc.state.tx.us. Comments will be accepted for 30 days following publication of the proposal in the Texas Register .

STATUTORY AUTHORITY

The amendment is proposed under Government Code, §531.033, which authorizes the Executive Commissioner of HHSC to adopt rules necessary to carry out the Commission's duties, and §531.021(b), which established HHSC as the agency responsible for adopting reasonable rules governing the determination of fees, charges, and rates for medical assistance payments under the Human Resources Code, Chapter 32.

§355.781.Rehabilitative Services Reimbursement Methodology.

(a) General information.

(1) The Texas Health and Human Services Commission (HHSC) will reimburse qualified rehabilitative services providers for rehabilitative services provided to Medicaid-eligible persons with mental illness.

(2) The HHSC establishes the reimbursement rate. The HHSC sets reimbursement rates that reflect cost-effective operations and are within State appropriation constraints.

(b) Definitions.

(1) Interim rate--Rate paid to a rehabilitative services provider based on cost reports prior to settle-up conducted in accordance with subsection (d)(4) of this section.

(2) Service type--Types of Medicaid reimbursable rehabilitative services as specified in program rules for the following:

(A) Day programs for acute needs--adult;

(B) Crisis intervention services--individual-child/adolescent and adult;

(C) Medication training and support--individual-child/adolescent and adult;

(D) Medication training and support--group-adult;

(E) Medication training and support--group-child/adolescent;

(F) Psychosocial rehabilitative services--individual-adult;

(G) Psychosocial rehabilitative services--group-adult;

[ (H) Rehabilitative counseling and psychotherapy--individual-adult; ]

[ (I) Rehabilitative counseling and psychotherapy--group-adult; ]

(H) [ (J) ] Skills training and development--individual-child/adolescent and adult; [ and ]

(I) [ (K) ] Skills training and development--group-adult ;and [ . ]

(J) Skills training and development-group-child/adolescent.

(3) Unit of service--The amount of time an individual, eligible for Medicaid rehabilitative services or non-Medicaid rehabilitative services (or parent or guardian of the person of an eligible minor), is engaged in face-to-face contact with a person described in program rules established by The Department of State Health Services (DSHS) [ TDMHMR or its successor agency ]. The units of service are as follows:

(A) Day programs for acute needs--45-60 continuous minutes;

(B) Crisis intervention services--15 continuous minutes;

(C) Medication training and support--15 continuous minutes;

(D) Psychosocial rehabilitative services--15 continuous minutes; and

[ (E) Rehabilitative counseling and psychotherapy--15 continuous minutes; and ]

(E) [ (F) ] Skills training and development--15 continuous minutes.

(c) Reporting of Costs.

(1) Cost reporting. Rehabilitative services providers must submit information quarterly, unless otherwise specified, on a cost report formatted according to HHSC's specifications. Rehabilitative services providers must complete the cost report according to §§355.101, 355.102, 355.103, 355.104, and 355.105 of this title (relating to Introduction, General Principles of Allowable and Unallowable Costs, Specifications for Allowable and Unallowable Costs, Revenues, and General Reporting and Documentation Requirements, Methods, and Procedures).

(2) Reporting period and due date. Rehabilitative services providers must prepare the cost report to reflect rehabilitative services provided during the designated cost report-reporting period. The cost reports must be submitted to the HHSC no later than 45 days following the end of the designated reporting period unless otherwise specified by the HHSC.

(3) Extension of the due date. The HHSC may grant extensions of due dates for good cause. A good cause is one that the rehabilitative services provider could not reasonably [ reasonable ] be expected to control. Rehabilitative services providers must submit request for extensions in writing. Requests for extensions must be received by HHSC prior to the cost report due date. HHSC will respond to requests within 15 days of receipt.

(4) Failure to file an acceptable cost report. If a rehabilitative services provider fails to file a cost report according to all applicable rules and instructions, HHSC will notify DSHS [ TDMHMR or its successor agency ] to place the rehabilitative services provider on vendor hold until the rehabilitative services provider submits an acceptable cost report.

(5) Allocation method. If allocations of cost are necessary, rehabilitative services providers must use and be able to document reasonable methods of allocation. HHSC adjusts allocated costs if HHSC considers the allocation method to be unreasonable. The rehabilitative services provider must retain work papers supporting allocations for a period of three years or until all audit exceptions are resolved (whichever is longer).

(6) Cost report certification. Rehabilitative services providers must certify the accuracy of cost reports submitted to HHSC in the format specified by HHSC. Rehabilitative services providers may be liable for civil and/or criminal penalties if they misrepresent or falsify information.

(7) Cost data supplements. HHSC may require additional financial and statistical information other than the information contained on the cost report.

(8) Allowable and unallowable costs. Cost reports may only include costs that meet the requirements as specified in §355.102 and §355.103 of this title (relating to General Principles of Allowable and Unallowable Costs and Specifications for Allowable and Unallowable Costs).

(9) Review of cost reports. HHSC reviews each cost report to ensure that financial and statistical information submitted conforms to all applicable rules and instructions. The review of the cost report includes a desk review. HHSC reviews all cost reports according to the criteria specified in §355.106 of this title (relating to Basic Objectives and Criteria for Audit and Desk Review of Cost Reports). If a rehabilitative services provider fails to complete the cost report according to instructions or rules, HHSC returns the cost report to the rehabilitative services provider for proper completion. HHSC may require information other than that contained in the cost report to substantiate reported information. Providers will be notified of the results of a desk review or a field audit in accordance with §355.107 of this title (relating to Notification of Exclusions and Adjustments).

(10) On-site audits. HHSC may perform on-site audits on all rehabilitative services providers that participate in the Medicaid program for rehabilitative services. HHSC determines the frequency and nature of such audits but ensures that they are not less than that required by federal regulations related to the administration of the program.

(11) Notification of exclusions and adjustments. HHSC notifies rehabilitative services providers of exclusions and adjustments to reported expenses made during desk reviews and on-site audits of cost reports.

(12) Reviews and administrative hearings. Rehabilitative services providers may request an informal review and, if necessary, an administrative hearing to dispute the action taken by HHSC1 under §355.110 of this title (relating to Informal Reviews and Formal Appeals).

(13) Access to records. Each rehabilitative services provider must allow access to all records necessary to verify cost report information submitted to HHSC. Such records include those pertaining to related-party transactions and other business activities engaged in by the rehabilitative services provider. If a rehabilitative services provider does not allow inspection of pertinent records within 14 days following written notice HHSC will notify DSHS [ TDMHMR or its successor agency ] to place the rehabilitative services provider on vendor hold until access to the records is allowed. If the rehabilitative services provider continues to deny access to records, DSHS [ TDMHMR or its successor agency ] may terminate the rehabilitative services provider agreement with the rehabilitative services provider.

(14) Record keeping requirements. Rehabilitative services providers must maintain service delivery records and eligibility determination for a period of five years or until any audit exceptions are resolved (whichever is later). Rehabilitative services providers must ensure that records are accurate and sufficiently detailed to support the financial and statistical information contained in cost reports.

(15) Failure to maintain adequate records. If a rehabilitative services provider fails to maintain adequate records to support the financial and statistical information reported in cost reports, HHSC allows 30 days for the rehabilitative services provider to bring record keeping into compliance. If a rehabilitative services provider fails to correct deficiencies within 30 days from the date of notification of the deficiency, HHSC will notify DSHS [ TDMHMR or its successor agency ] to terminate the rehabilitative services provider agreement with the rehabilitative services provider.

(d) Reimbursement determination. HHSC determines reimbursement according to §355.101 of this title (relating to Introduction). Rehabilitative services providers are reimbursed a uniform, statewide interim rate with a cost-related year-end settle-up. The HHSC determines reimbursement in the following manner:

(1) Inclusions of certain reported expenses. Rehabilitative services providers must ensure that all allowable costs are included in the cost report.

(2) Data collection. The HHSC collects several different kinds of data. These include the number of units of service that individuals receive and cost data, including direct costs, programmatic indirect costs, and general and administrative overhead costs. These costs include salaries, benefits, and other costs. Other costs include non-salary related costs such as building and equipment maintenance, repair, depreciation, amortization, and insurance expenses; employee travel and training expenses; utilities; and material and supply expenses.

(3) Interim rate methodology. The interim rate is determined biennially for each service type based on cost reports.

(A) The HHSC projects and adjusts reported costs from the historical reporting period to determine the interim rate for the prospective reimbursement period. Cost projections adjust the allowed historical costs based on significant changes in cost-related conditions anticipated to occur between the historical cost period and the prospective reimbursement period. Changes in cost-related conditions include, but are not limited to, inflation or deflation in wage or price, changes in program utilization and occupancy, modification of federal or state regulations and statutes, and implementation of federal or state court orders and settlement agreements. Costs are adjusted for the prospective reimbursement period by a general cost inflation index as specified in §355.108 of this title (relating to Determination of Inflation Indices).

(B) For each settle-up service, each rehabilitative services provider's projected cost per unit of service is calculated. The mean rehabilitative services provider cost per unit of service is calculated, and the statistical outliers (those rehabilitative services providers whose unit costs exceed plus or minus (+/-) two standard deviations of the mean rehabilitative services provider cost) are removed. After removal of the statistical outliers, the mean cost per unit of service is calculated. This mean cost per unit of service becomes the recommended reimbursement per unit of service.

(4) Settle-up process. At the end of each reimbursement period, the HHSC will compare the amount reimbursed at the interim rate for each settle-up service and the rehabilitative services provider's costs for each service, as submitted on its cost report in accordance with subsection (c) of this section.

(A) Rehabilitative service provider's, whose costs are less than 95% of the amount reimbursed at the interim rate, will be required to pay to DSHS [ TDMHMR or its successor agency ] 100% of the difference between its allowable costs and 95% of the amount reimbursed at the interim rate for each settle-up service. DSHS [ TDMHMR or its successor agency ] will notify the rehabilitative services provider of the amount due by certified mail and the rehabilitative services provider will remit the repayment amount within 60 days of notification. DSHS [ TDMHMR or its successor agency ] will apply a vendor hold on Medicaid payments to a rehabilitative services provider for not making the payment to DSHS [ TDMHMR or its successor agency ] within 60 days of receiving notice.

(B) If a rehabilitative services provider's costs exceed the amount reimbursed at the interim rate, DSHS [ TDMHMR or its successor agency ] will reimburse the rehabilitative services provider the difference between its allowable costs and the reimbursement at the interim rate up to 125% of the interim rate for each settle-up service. DSHS [ TDMHMR or its successor agency ] will notify the rehabilitative services provider of the amount owed to the provider via certified mail. DSHS [ TDMHMR or its successor agency ] will make payment within 30 days of the date the notice was received, as indicated by the certified mail receipt.

(5) Adjustments to the reimbursement determination methodology. HHSC may adjust reimbursement if new legislation, regulations, or economic factors affect costs as described in §355.109 of this title (relating to Adjusting Reimbursement When New Legislation, Regulations, or Economic Factors Affect Costs).

This agency hereby certifies that the proposal has been reviewed by legal counsel and found to be within the agency's legal authority to adopt.

Filed with the Office of the Secretary of State on April 3, 2006.

TRD-200601974

Steve Aragón

Chief Counsel

Texas Health and Human Services Commission

Earliest possible date of adoption: May 14, 2006

For further information, please call: (512) 424-6900