TITLE 40.SOCIAL SERVICES AND ASSISTANCE

Part 20. TEXAS WORKFORCE COMMISSION

Chapter 800. GENERAL ADMINISTRATION

The Texas Workforce Commission (Commission) proposes amendments to the following sections of Chapter 800, relating to General Administration:

Subchapter C. Performance and Contract Management, §800.81

Subchapter E. Sanctions, §800.151

PART I. PURPOSE, BACKGROUND, AND AUTHORITY

PART II. EXPLANATION OF INDIVIDUAL PROVISIONS

PART III. IMPACT STATEMENTS

PART IV. COORDINATION ACTIVITIES

PART I. PURPOSE, BACKGROUND, AND AUTHORITY

The purpose of the proposed rules amendment is to eliminate references in this chapter to Chapter 805, relating to the Job Training Partnership Act Rules. Chapter 805 of this title is concurrently being proposed for repeal in its entirety because the rules are no longer necessary.

PART II. EXPLANATION OF INDIVIDUAL PROVISIONS

(Note: Minor, nonsubstantive, editorial changes are made that do not change the meaning of the rules and, therefore, are not discussed in the Explanation of Individual Provisions.)

SUBCHAPTER C. PERFORMANCE AND CONTRACT MANAGEMENT

The Commission proposes the following amendment:

§800.81. Performance

Section 800.81(i) is deleted. Based on the concurrent proposed repeal of Chapter 805 of this title, the Job Training Partnership Act Rules, this subsection is obsolete.

SUBCHAPTER E. SANCTIONS

The Commission proposes the following amendment:

§800.151. Scope and Purpose

Section 800.151(d) is deleted. Based on the concurrent proposed repeal of Chapter 805 of this title, the Job Training Partnership Act Rules, this subsection is obsolete.

PART III. IMPACT STATEMENTS

Randy Townsend, Chief Financial Officer, has determined that for each year of the first five years the rules will be in effect, the following statements will apply:

There are no estimated additional costs to the state and to local governments expected as a result of enforcing or administering the rules.

There are no estimated reductions in costs to the state and to local governments as a result of enforcing or administering the rules.

There are no estimated losses or increases in revenue to the state or to local governments as a result of enforcing or administering the rules.

There are no foreseeable implications relating to costs or revenue of the state or local governments as a result of enforcing or administering the rules.

There will be no probable economic costs to persons required to comply with this rule, and there will be no adverse economic effect on small businesses.

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

Mark Hughes, Director of Labor Market Information, has determined that there is no significant negative impact upon employment conditions in the state as a result of the rules.

Luis M. Macias, Director, Workforce Development Division, has determined that for each year of the first five years the rules are in effect, the public benefit anticipated as a result of enforcing the proposed rules will be to ensure compliance with federal and state requirements.

PART IV. COORDINATION ACTIVITIES

In the development of these rules for publication and public comment, the Commission considered all information gathered in order to develop a rule that provides clear and concise direction to all parties involved. Additionally, the Commission provided the policy concept regarding the concurrent proposed repeal of Chapter 805, relating to the Job Training Partnership Act Rules, to the Boards for consideration and review.

Comments on the proposed rules may be submitted to TWC Policy Comments, Workforce and UI Policy, 101 East 15th Street, Room 440T, Austin, Texas 78778; faxed to 512-475-3577; or e-mailed to TWCPolicyComments@twc.state.tx.us. The Commission must receive comments postmarked no later than 30 days from the date this proposal is published in the Texas Register .

Subchapter C. PERFORMANCE AND CONTRACT MANAGEMENT

40 TAC §800.81

The rules are proposed under Texas Labor Code §301.0015 and §302.002(d), which provide the Texas Workforce Commission with the authority to adopt, amend, or repeal such rules as it deems necessary for the effective administration of Agency services and activities.

The proposed rules affect Title 4, Texas Labor Code, particularly Chapters 301 and 302.

§800.81.Performance.

(a) A Board shall meet or exceed performance targets as referenced in contracts with the Agency.

(b) The Commission shall determine the performance targets based on federal and state performance standards and by using factors that may be necessary to achieve the mission of the Commission and reflect local conditions. The Commission approves individual Board performance targets annually, which may be adjusted based on local conditions including, but not limited to, specific economic conditions and demographic characteristics of the workforce area.

(c) A Board and other subrecipients [ subrecipient ] shall comply with all Commission rules, Workforce Development (WD) Letters, the Financial Manual for Grants and Contracts, [ Grants and Contracts Manual, the Financial Manual ] and guidance letters of the Agency, including rules contained in other chapters of Part 20 of this title applicable to specific services and activities performed by a Board and other subrecipients.

(d) A Board's achievement of high levels of performance may result in the Commission providing incentives for the Board.

(e) A Board's failure to meet minimum levels of performance as referenced in the Board's contract may result in corrective actions, penalties , or sanctions as specified in:

(1) Part 20 of this title (relating to the Texas Workforce Commission), including Chapter 800, Subchapter E , relating to Sanctions;

(2) the Board's contract with the Commission; or

(3) [ as otherwise provided for by ] federal or state statute or rule.

(f) A Board may submit to the Commission a request for an adjustment to the minimum levels of performance.

(g) The Commission may determine what constitutes a necessary adjustment to local performance targets and may consider specific economic conditions and demographic characteristics to be served in the [ local ] workforce [ development ] area and other factors the Commission deems appropriate including the anticipated impact of the adjustment on the state's performance.

(h) The Governor may adopt additional performance incentives and sanctions provisions as provided in WIA.

[ (i) A Board shall comply with and remain subject to the provisions contained in Chapter 805 effective on July 1, 2001, relating to performance or any other matters addressed in Chapter 805 regarding any funds granted by the Secretary of Labor under the JTPA regulations or Act, including NRA and other funds. ]

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 June 22, 2006.

TRD-200603419

Reagan Miller

Deputy Director for Workforce and UI Policy

Texas Workforce Commission

Earliest possible date of adoption: August 6, 2006

For further information, please call: (512) 475-0829


Subchapter E. SANCTIONS

40 TAC §800.151

The rules are proposed under Texas Labor Code §301.0015 and §302.002(d), which provide the Texas Workforce Commission with the authority to adopt, amend, or repeal such rules as it deems necessary for the effective administration of Agency services and activities.

The proposed rules affect Title 4, Texas Labor Code, particularly Chapters 301 and 302.

§800.151.Scope and Purpose.

(a) The purpose of this subchapter is to:

(1) ensure accountability of Boards [ Local Workforce Development Boards (Boards) ] and other subrecipients of the Agency, in meeting the needs of employers and job seekers ; [ , ]

(2) ensure performance in reaching outcome measures ; [ , ]

(3) ensure adequate returns on state investments ; [ , ] and

(4) support the state in achieving its goals.

(b) The Agency may review financial, administrative, and performance data to evaluate a Board and subrecipients [ subrecipient ] of the Agency to determine the need for sanctions.

(c) To accomplish the purposes of this subchapter [ Subchapter ], the Agency may require at any point during the year that a Board or subrecipients [ subrecipient ] of the Agency cooperate with remedial actions, including , but not limited to , entering into a Performance Improvement Plan and other performance review and assistance activities.

[ (d) This rule incorporates by reference the existing rule for the Job Training Partnership Act Program cited in §805.170 - §805.196 of this title. ]

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 June 22, 2006.

TRD-200603420

Reagan Miller

Deputy Director for Workforce and UI Policy

Texas Workforce Commission

Earliest possible date of adoption: August 6, 2006

For further information, please call: (512) 475-0829


Chapter 805. JOB TRAINING PARTNERSHIP ACT RULES

The Texas Workforce Commission (Commission) proposes the repeal of the following sections of Chapter 805, relating to the Job Training Partnership Act (JTPA) rules:

Subchapter A, General Provisions:

§§805.101 - 805.106

Subchapter C, Job Training Plans:

§§805.140 - 805.155

Subchapter D, Performance Standards:

§§805.160 - 805.165

Subchapter E, State Monitoring and Sanctions Policies:

§§805.170 - 805.196

Subchapter F, Financial Management Rules:

§§805.200 - 805.232

Subchapter G, Eligibility Policies and Procedures:

§§805.240 - 805.249

Subchapter I, JTPA Grievance Procedures:

§§805.280 - 805.298

PART I. PURPOSE, BACKGROUND, AND AUTHORITY

PART II. IMPACT STATEMENTS

PART III. COORDINATION ACTIVITIES

PART I. PURPOSE, BACKGROUND, AND AUTHORITY

The purpose of the proposed repeal is to eliminate Chapter 805, relating to the JTPA rules. The Workforce Investment Act repealed JTPA and initiated a new delivery system for providing employment and training services. Therefore, these rules are no longer required.

PART II. IMPACT STATEMENTS

Randy Townsend, Chief Financial Officer, has determined that for each year of the first five years the proposed repeal will be in effect, the following statements will apply:

There are no estimated additional costs to the state and to local governments expected as a result of enforcing or administering the repeal.

There are no estimated reductions in costs to the state and to local governments as a result of enforcing or administering the repeal.

There are no estimated losses or increases in revenue to the state or to local governments as a result of enforcing or administering the repeal.

There are no foreseeable implications relating to costs or revenue of the state or local governments as a result of enforcing or administering the repeal.

There will be no probable economic costs to persons required to comply with this repeal, and there will be no adverse economic effect on small businesses.

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

Mark Hughes, Director of Labor Market Information, has determined that there is no significant negative impact upon employment conditions in the state as a result of the repeal.

Luis M. Macias, Director, Workforce Development Division, has determined that for each year of the first five years the proposed repeal is in effect, the public benefit anticipated as a result of enforcing the proposed repeal will be to ensure compliance with federal and state requirements.

PART III. COORDINATION ACTIVITIES

In the development of the proposal for publication and public comment, the Commission sought the involvement of each of Texas' 28 Boards. The Commission provided the policy concept regarding the proposed repeal to the Boards for consideration and review.

Comments on the proposed repeal may be submitted to TWC Policy Comments, Workforce and UI Policy, 101 East 15th Street, Room 440T, Austin, Texas 78778; faxed to (512) 475-3577; or e-mailed to TWCPolicyComments@twc.state.tx.us. The Commission must receive comments postmarked no later than 30 days from the date this proposal is published in the Texas Register .

Subchapter A. GENERAL PROVISIONS

40 TAC §§805.101 - 805.106

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

The repeal is proposed under Texas Labor Code §301.0015 and §302.002(d), which provide the Texas Workforce Commission with the authority to adopt, amend, or repeal such rules as it deems necessary for the effective administration of Agency services and activities.

The repeal affects Title 4, Texas Labor Code, particularly Chapters 301 and 302.

§805.101.Short Title and Purpose.

§805.102.General Definitions.

§805.103.General Duties of Governor's Office.

§805.104.General Duties of the Texas Workforce Commission.

§805.105.The Texas Council on Workforce and Economic Competitiveness.

§805.106.Implementation of USDOL Final Rule.

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 June 22, 2006.

TRD-200603412

Reagan Miller

Deputy Director for Workforce and UI Policy

Texas Workforce Commission

Earliest possible date of adoption: August 6, 2006

For further information, please call: (512) 475-0829


Subchapter C. JOB TRAINING PLANS

40 TAC §§805.140 - 805.155

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

The repeal is proposed under Texas Labor Code §301.0015 and §302.002(d), which provide the Texas Workforce Commission with the authority to adopt, amend, or repeal such rules as it deems necessary for the effective administration of Agency services and activities.

The repeal affects Title 4, Texas Labor Code, particularly Chapters 301 and 302.

§805.140.Plan Submission for Review and Approval.

§805.141.Standards for Plan Approval or Disapproval.

§805.142.Plan Modification or Amendment.

§805.143.Criteria for Plan Modification.

§805.144.Criteria for Plan Amendment.

§805.145.Competency System Development and Approval.

§805.146.Submission for State Approval.

§805.147.Elements of a Sufficiently Developed Competency System.

§805.148.Substate Plans.

§805.149.Carry-Over Funds.

§805.150.Services to Displaced Homemakers.

§805.151.Rapid Response Grants.

§805.152.Certificate of Continuing Eligibility.

§805.153.Allotment of Dislocated Worker State Reserve Funds.

§805.154.Discretionary Fund Distribution Process.

§805.155.Waiver of Expenditures for Retraining Services.

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 June 22, 2006.

TRD-200603413

Reagan Miller

Deputy Director for Workforce and UI Policy

Texas Workforce Commission

Earliest possible date of adoption: August 6, 2006

For further information, please call: (512) 475-0829


Subchapter D. PERFORMANCE STANDARDS

40 TAC §§805.160 - 805.165

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

The repeal is proposed under Texas Labor Code §301.0015 and §302.002(d), which provide the Texas Workforce Commission with the authority to adopt, amend, or repeal such rules as it deems necessary for the effective administration of Agency services and activities.

The repeal affects Title 4, Texas Labor Code, particularly Chapters 301 and 302.

§805.160.Definitions.

§805.161.Variations to DOL Performance Standards.

§805.162.State Performance Standards.

§805.163.Incentive Grants for Exceeding DOL Performance Standards.

§805.164.Incentive Grants for Exceeding State Standards.

§805.165.Distribution of Any Remaining Incentive Funds.

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 June 22, 2006.

TRD-200603414

Reagan Miller

Deputy Director for Workforce and UI Policy

Texas Workforce Commission

Earliest possible date of adoption: August 6, 2006

For further information, please call: (512) 475-0829


Subchapter E. STATE MONITORING AND SANCTIONS POLICIES

40 TAC §§805.170 - 805.196

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

The repeal is proposed under Texas Labor Code §301.0015 and §302.002(d), which provide the Texas Workforce Commission with the authority to adopt, amend, or repeal such rules as it deems necessary for the effective administration of Agency services and activities.

The repeal affects Title 4, Texas Labor Code, particularly Chapters 301 and 302.

§805.170.Purpose and Authority.

§805.171.Definitions.

§805.172.State Monitoring.

§805.173.The Monitoring Report.

§805.174.Responses to Monitoring Reports.

§805.175.Local Monitoring Plan Development.

§805.176.Subrecipient Roles and Responsibilities.

§805.177.Assessment of Subrecipient Monitoring Functions.

§805.178.PIC Oversight Standards.

§805.179.State Sanctions Policy and Procedures.

§805.180.Sanctions Procedures.

§805.181.Repeated Problems or Findings.

§805.182.Imposition of Sanctions.

§805.183.Technical Assistance and Reorganization.

§805.184.Failure To Meet Performance Standards.

§805.185.Technical Assistance Plan.

§805.186.SDA/SSA Reorganization Plan Due to Consecutive Failure.

§805.187.Sanctions for Continued Violations.

§805.188.Subrecipient Annual Audit Requirement.

§805.189.Audit Costs.

§805.190.Competitive Bidding To Procure Auditor.

§805.191.Contents of Audit Report.

§805.192.Subrecipient Annual Audit Plan.

§805.193.Audit Submissions.

§805.194.Informal Resolution Process.

§805.195.Failure To Submit Audit.

§805.196.Appeals from Final Determinations.

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 June 22, 2006.

TRD-200603415

Reagan Miller

Deputy Director for Workforce and UI Policy

Texas Workforce Commission

Earliest possible date of adoption: August 6, 2006

For further information, please call: (512) 475-0829


Subchapter F. FINANCIAL MANAGEMENT RULES

40 TAC §§805.200 - 805.232

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

The repeal is proposed under Texas Labor Code §301.0015 and §302.002(d), which provide the Texas Workforce Commission with the authority to adopt, amend, or repeal such rules as it deems necessary for the effective administration of Agency services and activities.

The repeal affects Title 4, Texas Labor Code, particularly Chapters 301 and 302.

§805.200.Purpose and Authority.

§805.201.General Cash Management.

§805.202.Subrecipient Bonding.

§805.203.Repayment of Disallowed Costs.

§805.204.Historically Underutilized Businesses (HUBs).

§805.205.Insurance Requirements.

§805.206.Refund Policy.

§805.207.Allowable and Unallowable Costs.

§805.208.Definition of an Obligation.

§805.209.Reporting Obligations.

§805.210.Voluntary Deobligation.

§805.211.Contractor Code of Conduct.

§805.212.JTPA Records and Files.

§805.213.Methods of Procurement.

§805.214.Competitive Negotiation Method.

§805.215.Request for Proposal (RFP) Process.

§805.216.Statement of Work.

§805.217.Noncompetitive Negotiation (Sole Source) Method.

§805.218.Processing of Noncompetitive Procurements.

§805.219.Cost/Price Analysis.

§805.220.Contract Payments.

§805.221.Contract Budgets.

§805.222.Fixed-unit Price Contracts.

§805.223.Nonexpendable Personal Property Management.

§805.224.Subrecipient Property Inventory.

§805.225.Property Maintenance and Security.

§805.226.Shared Use of JTPA Property.

§805.227.Disposition of Excess Nonexpendable JTPA Property.

§805.228.Reporting Requirements.

§805.229.The Closeout Process.

§805.230.Resolution of Questioned Costs.

§805.231.Subrecipient Time Limitations.

§805.232.Variance from Uniform Grant and Contract Management Standards.

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 June 22, 2006.

TRD-200603416

Reagan Miller

Deputy Director for Workforce and UI Policy

Texas Workforce Commission

Earliest possible date of adoption: August 6, 2006

For further information, please call: (512) 475-0829


Subchapter G. ELIGIBILITY POLICIES AND PROCEDURES

40 TAC §§805.240 - 805.249

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

The repeal is proposed under Texas Labor Code §301.0015 and §302.002(d), which provide the Texas Workforce Commission with the authority to adopt, amend, or repeal such rules as it deems necessary for the effective administration of Agency services and activities.

The repeal affects Title 4, Texas Labor Code, particularly Chapters 301 and 302.

§805.240.Purpose and Authority.

§805.241.Definitions.

§805.242.Record of Documentation To Verify Eligibility.

§805.243.Basic Forms for Eligibility Documentation.

§805.244.Information To Establish Income Eligibility.

§805.245.Verification by Telephone or Document Inspection.

§805.246.Verification by an Applicant Statement.

§805.247.Title III/EDWAA Eligibility Definitions.

§805.248.Additional Categories of "Terminated" or "Laid Off".

§805.249.Defense Conversion Adjustment Program.

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 June 22, 2006.

TRD-200603417

Reagan Miller

Deputy Director for Workforce and UI Policy

Texas Workforce Commission

Earliest possible date of adoption: August 6, 2006

For further information, please call: (512) 475-0829


Subchapter I. JTPA GRIEVANCE PROCEDURES

40 TAC §§805.280 - 805.298

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

The repeal is proposed under Texas Labor Code §301.0015 and §302.002(d), which provide the Texas Workforce Commission with the authority to adopt, amend, or repeal such rules as it deems necessary for the effective administration of Agency services and activities.

The repeal affects Title 4, Texas Labor Code, particularly Chapters 301 and 302.

§805.280.Purpose and Coverage.

§805.281.Definitions.

§805.282.Grievance Filing Procedures at the Local Level.

§805.283.Time Limitations at Local Level.

§805.284.JTPA Contractor Responsibilities.

§805.285.Orientation to Complaint Procedure.

§805.286.Local Level Informal Conference Procedure.

§805.287.Opportunity and Request for a Hearing.

§805.288.Notice of Hearing at Local Level.

§805.289.Hearing Officer.

§805.290.Local Level Hearing Procedure.

§805.291.Written Decision.

§805.292.Request for Review of a Written Decision.

§805.293.Procedure for Review by the Texas Workforce Commission.

§805.294.Final Written Decision.

§805.295.Optional Forms Available.

§805.296.Appeal of a Commission Action or Decision.

§805.297.Formal Hearing Procedure at State Level.

§805.298.Final State Action.

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 June 22, 2006.

TRD-200603418

Reagan Miller

Deputy Director for Workforce and UI Policy

Texas Workforce Commission

Earliest possible date of adoption: August 6, 2006

For further information, please call: (512) 475-0829