TITLE 40. SOCIAL SERVICES AND ASSISTANCE

Part 1. DEPARTMENT OF AGING AND DISABILITY SERVICES

Chapter 2. MENTAL RETARDATION AUTHORITY RESPONSIBILITIES

Subchapter C. CHARGES FOR COMMUNITY SERVICES

The Health and Human Services Commission (HHSC) proposes, on behalf of the Department of Aging and Disability Services (DADS), amendments to §§2.101 - 2.103 and 2.105 - 2.112, concerning purpose; application; definitions; accountability; determination of ability to pay; standard charges; billing procedures; payments, collections, and non-payment; monthly ability-to-pay fee schedule; training; and brochure for a person (or parent); and proposes the repeal of §§2.104 and 2.113 - 2.115, concerning principles, exhibit, references, and distribution, in Chapter 2, Mental Retardation Authority Responsibilities, Subchapter C, Charges for Community Services.

BACKGROUND AND PURPOSE

Because they originated at the Texas Department of Mental Health and Mental Retardation, the rules in Chapter 2, Subchapter C, currently contain references to both mental health and mental retardation services. The purpose of the proposal is to eliminate references related to mental health issues and tailor the remaining rule language exclusively to mental retardation services.

The proposal also streamlines DADS' process for updating a person's financial assessment. Instead of being required to annually update every person's financial assessment, the proposal will allow a mental retardation authority (MRA) to exclude certain persons whose Medicaid status indicates that they do not have an ability to pay for non-Medicaid services.

In addition, the proposal updates terminology and agency names and corrects rule cross-references to ensure that the rules reflect changes resulting from the consolidation of health and human services agencies in 2004 and updates the subchapter to make it consistent with other DADS rules.

SECTION-BY-SECTION SUMMARY

The amendments to §§2.101 - 2.103 and 2.105 - 2.112 and the repeal of §§2.104 and 2.113 - 2.115 update the rule by eliminating language and requirements related to mental health services.

In addition, the amendment to §2.102 clarifies and updates rule language, and deletes subsection (c), because subsection (a) already states that the rules apply to a parent of a person under age 18 years.

The amendment to §2.103 adds definitions for "DADS," "MMF," "MRA," "MR priority population," and "parent," and deletes the definitions of "local authority," "priority population," and "state MH facility." The amendment also clarifies rule language and updates terminology.

The amendment to §2.105 updates MRA accountability requirements, clarifies rule language, and updates terminology, agency references, and rule cross-references.

The amendment to §2.106 streamlines the process governing the determination of ability to pay, clarifies rule language, and updates terminology and rule cross-references.

The amendment to §2.108 updates terminology and an agency reference.

The amendment to §2.109 clarifies rule language and updates terminology, agency references, and rule cross-references.

The amendment to §2.110 states that the Monthly Ability-to-Pay Fee Schedule can be found on the DADS website and updates an agency reference.

The amendment to §2.111 updates MRA staff training requirements.

The repeal of §§2.104 and 2.113 - 2.115 deletes sections that are not necessary to have in rule and makes Subchapter C more consistent with the majority of DADS rules, which do not include references to regulations and statutes, or information about distributing copies of the completed rules.

FISCAL NOTE

Gordon Taylor, DADS Chief Financial Officer, has determined that, for the first five years the proposed amendments and repeal are in effect, enforcing or administering the amendments and repeal does not have foreseeable implications relating to costs or revenues of state or local governments.

SMALL BUSINESS AND MICRO-BUSINESS IMPACT ANALYSIS

DADS has determined that there is no adverse economic effect on small businesses or micro-businesses as a result of enforcing or administering the amendments and repeal, because the proposal imposes no new requirements on MRAs.

PUBLIC BENEFIT AND COSTS

Gary Jessee, DADS Assistant Commissioner for Access and Intake, has determined that, for each year of the first five years the amendments and repeal are in effect, the public benefit expected as a result of enforcing the amendments and repeal is an updated and clarified rule base that is more accurate and easier for the public and MRAs to use and understand.

Mr. Jessee anticipates that there will not be an economic cost to persons who are required to comply with the amendments. The amendments will not affect a local economy.

TAKINGS IMPACT ASSESSMENT

DADS has determined that this 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 Texas Government Code, §2007.043.

PUBLIC COMMENT

Questions about the content of this proposal may be directed to Marcia Shultz at (512) 438-3532 in DADS' Access and Intake Division. Written comments on the proposal may be submitted to Texas Register Liaison, Legal Services-026, Department of Aging and Disability Services W-615, P.O. Box 149030, Austin, Texas 78714-9030, or street address 701 West 51st St., Austin, TX 78751; faxed to (512) 438-5759; or e-mailed to rulescomments@dads.state.tx.us. To be considered, comments must be submitted no later than 30 days after the date of this issue of the Texas Register. The last day to submit comments falls on a Sunday; therefore, comments must be either (1) postmarked or shipped before the last day of the comment period; (2) hand-delivered to DADS before 5:00 p.m. on DADS' last working day of the comment period; or (3) faxed or e-mailed by midnight on the last day of the comment period. When faxing or e-mailing comments, please indicate "Comments on Proposed Rule 026" in the subject line.

40 TAC §§2.101 - 2.103, 2.105 - 2.112

STATUTORY AUTHORITY

The amendments are proposed under Texas Government Code, §531.0055, which provides that the HHSC executive commissioner shall adopt rules for the operation and provision of services by the health and human services agencies, including DADS; Texas Human Resources Code, §161.021, which provides that the Aging and Disability Services Council shall study and make recommendations to the HHSC executive commissioner and the DADS commissioner regarding rules governing the delivery of services to persons who are served or regulated by DADS; and Texas Health and Safety Code, §534.067, which requires DADS to establish a uniform fee collection policy for mental retardation authorities.

The amendments implement Texas Government Code, §531.0055, Texas Human Resources Code, §161.021, and Texas Health and Safety Code, §534.067.

§2.101.Purpose.

The purpose of this subchapter is to comply with [ the ] Texas Health and Safety Code, §534.067, by establishing a uniform fee collection policy for an MRA [ local authorities ] that:

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

§2.102.Application.

(a) This subchapter applies to an MRA [ all local authorities ] for community services contracted for through the performance contract that the MRA [ authority ] provides directly or through a subcontractor [ subcontractors ] to a member [ members ] of the MR priority population. This subchapter also applies to an adult person [ persons ] in the MR priority population[ , ] and a parent of a person [ parents of persons ] under age 18 years in the MR priority population[ , who are seeking or receiving services ].

(b) This subchapter does not apply to:

(1) a program or service [ programs and services ] that is [ are ] prohibited by statute or regulation from charging a fee [ fees ] to a person [ persons ] served [ (e.g., Early Childhood Intervention Program) ];

(2) the DADS In-Home and Family Support Program--Mental Retardation [ TDMHMR In-Home and Family Support Program ];

(3) [ inpatient services in a state MH facility and non-crisis ] residential services as described in the performance contract; and

(4) specialized services mandated by the Omnibus Budget Reconciliation Act (OBRA) of 1987, as amended by OBRA 90, for a preadmission screening and [ annual ] resident review [ reviews ] (PASARR) provided to a non-Medicaid eligible person [ persons ].

[ (c) In this subchapter all references to a parent means the requirement is applicable to the parent of a person under age 18 years who is in the priority population and who is seeking or receiving services.]

§2.103.Definitions.

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

(1) (No change.)

(2) Community services or services--Except for [ inpatient services in a state MH facility and non-crisis ] residential services, eligibility determination, and screening, the required and optional [ mental health and ] mental retardation services described in the performance contract . [ , including: ]

[ (A) 24-hour emergency screening and rapid crisis stabilization services;]

[ (B) community-based crisis residential services or inpatient services in a mental health facility that is not a state MH facility;]

[ (C) community-based assessments, including the development of interdisciplinary treatment plans, and diagnosis and evaluation services;]

[ (D) family support services, including respite care;]

[ (E) case management services (service coordination);]

[ (F) medication-related services, including medication clinics, laboratory monitoring, medication education, mental health maintenance education, and the provision of medication; and]

[ (G) psychosocial rehabilitation programs, including social support activities, independent living skills, and vocational training.]

(3) DADS--The Department of Aging and Disability Services.

(4) [ (3) ] Extraordinary expenses--Major medical or health related expenses, major casualty losses, and child care expenses for the previous year or projections for the next year.

(5) [ (4) ] Family members--

(A) For an unmarried person under [ the ] age [ of ] 18 years--The person, the person's parents, and the dependents of the parents, if residing in the same household;

(B) For an unmarried person age 18 years or older--The person and the person's [ his/her ] dependents; or

(C) For a married person of any age--The person, the person's [ his/her ] spouse, and their dependents.

(6) [ (5) ] Gross income--Revenue from all sources before taxes and other payroll deductions. The term does not include child support received.

(7) [ (6) ] Inability to pay--The person's maximum monthly fee is zero and the person:

(A) does not have third-party coverage;

(B) has third-party coverage, but has exceeded the maximum benefit of the covered service(s) or the third-party coverage will not pay because the services needed by the person are not covered services; or

(C) has not identified payment for a needed service or services in an approved plan utilizing Social Security work incentive provisions (i.e., Plan to Achieve Self-Sufficiency; Impairment Related Work Expense).

(8) [ (7) ] Income-based public insurance--Government funded third-party coverage that bases eligibility on income (i.e., CHIP and Medicaid).

[ (8) Local authority--An entity designated by the TDMHMR commissioner in accordance with the Texas Health and Safety Code, §533.035(a).]

(9) MMF--Maximum monthly fee. A fee that is calculated in accordance with §2.106(b) of this chapter (relating to Determination of Ability to Pay).

(10) MRA--Mental retardation authority. An entity to which the Health and Human Services Commission's authority and responsibility described in Texas Health and Safety Code, §531.002(11) have been delegated.

(11) MR priority population--Groups of persons identified in the Health and Human Services Commission's current strategic plan as being most in need of mental retardation services.

(12) Parent--A biological or adoptive parent of a person under age 18 years.

(13) [ (9) ] Performance contract--A written agreement between DADS and an MRA [ TDMHMR and a local authority ] for the provision of one or more functions as described in [ the ] Texas Health and Safety Code, §533.035(a).

(14) [ (10) ] Person--A person in the MR priority population who is seeking or receiving services through an MRA [ a local authority ].

[ (11) Priority population--Those groups of persons with mental illness or mental retardation identified in TDMHMR's current strategic plan as being most in need of mental health and mental retardation services.]

(15) [ (12) ] Significant financial change--Any change in the person's (or parent's) financial status as shown in the financial documentation, as described in §2.105(d) of this subchapter [ §412.105(d) of this title ] (relating to Accountability), that affects the person's (or parent's) ability to pay. Examples of a significant financial change are:

(A) a reduction in income due to the loss of a job or due to a reduction in hours worked on a job;

(B) an increase in income because of an inheritance or a salary increase;

(C) an increase or decrease in the number of family members;

(D) the gain or loss of third-party coverage; and

(E) an increase or decrease in extraordinary expenses.

(16) [ (13) ] Standard charge--A fixed price for a community service or unit of service.

[ (14) State MH facility--A state hospital or a state center with an inpatient component.]

(17) [ (15) ] Team-- A person's service planning team [ The interdisciplinary team, multidisciplinary team, or treatment team ].

(18) [ (16) ] Third-party coverage--A public or private payer of community services [ for a specific person that is not the person ] (e.g., Medicaid, Medicare, private insurance, CHIP, TRICARE).

§2.105.Accountability.

(a) Prohibition from denying services. An MRA is [ Local authorities are ] prohibited from denying services [ to a person ]:

(1) to a person because of the person's inability to pay for the services;

(2) to a person in crisis , and the denial is because:

(A) - (C) (No change.)

(D) the person had [ his/her ] services involuntarily reduced or terminated for non-payment under §2.109(d) [ §412.109(d) ] of this title (relating to Payments, Collections, and Non-payment); or

(3) to a person pending resolution of an issue relating solely to payment for services, including failure of the person (or parent) to comply with any requirement in subsection [ subsections ] (c), (d), (e), or [ and ] (g) of this section.

(b) Identifying funding sources. An MRA must identify and access [ Local authorities are responsible for identifying and accessing ] available funding sources other than DADS [ TDMHMR ], and assist a person (or parent) [ for assisting persons (and parents) ] in identifying and accessing available funding sources other than DADS [ TDMHMR ], to pay for services. Available funding sources may include third-party coverage, state and/or local governmental agency funds (e.g., crime victims fund), Qualified Medicare Beneficiary (QMB) Program, [ indigent pharmaceutical programs, ] or a trust that provides for the person's need for community services [ healthcare and rehabilitative needs ].

(c) Requirement for a parent [ parents ] to enroll a child [ their children ] in income-based public insurance. A parent of a child [ Parents of children ] who may be eligible for Medicaid or the Children's [ Childrens ] Health Insurance Program (CHIP) must enroll the child [ their children ] in Medicaid or CHIP or provide documentation that the child has [ they have ] been denied Medicaid or CHIP benefits or that the child's [ their ] Medicaid or CHIP enrollment is pending. An MRA must [ The local authority shall ] provide assistance as needed to facilitate the enrollment process.

(d) Financial documentation. A person (or parent) [ If requested by the local authority, persons (or parents) ] must provide the following financial documentation:

(1) - (4) (No change.)

(e) Authorizing third-party coverage payment to the MRA [ local authority ]. A person (or parent) [ Persons (and parents) ] with third-party coverage must execute an assignment of benefits authorizing third-party coverage payment to the MRA [ local authority ].

(f) Failure to comply.

(1) Except as provided by paragraph (2) of this subsection, if the person (or parent) fails to comply with any requirement in subsection (c), (d), (e), or (g) [ subsections (c)-(e) ] of this section, then the MRA must charge [ local authority will charge ] the person (or parent) the standard charge(s) for services. If, within 30 days after the person (or parent) initially failed to comply, the person (or parent) complies with the requirements, then the MRA must adjust [ local authority will adjust ] the person's account to retroactively reflect compliance.

(2) The MRA may [ local authority will ] not charge the person the standard charge(s) for services if the MRA [ local authority ] makes a decision, which [ based on a clinical determination that ] is documented and includes input from the person's team, that the person's failure to comply is related to the person's functioning limitations [ mental illness or mental retardation ]. The decision [ clinical determination ] must be reassessed at least annually [ every three months ]. If the MRA [ local authority ] decides that a person's failure to comply is related to the person's functioning limitations [ mental illness or mental retardation ], then the MRA [ local authority ] must develop and implement a plan to reduce or eliminate the barriers related to the person's failure to comply.

(g) Requirement for an adult person [ persons ] to apply for Supplemental Security Income (SSI) [ SSI ] to become eligible for Medicaid. An adult person [ Adult persons ] who may be eligible for Medicaid must apply for SSI [ Supplemental Security Income (SSI) ] or provide documentation that the person has [ they have ] been denied SSI or that the person's [ their ] SSI application is pending. The MRA must provide [ local authority shall provide ] assistance as needed to facilitate all aspects of the application process. [ If the adult person is unable to act in accordance with the requirement because of the person's mental illness or mental retardation, then the local authority must develop and implement a plan to reduce or eliminate the barriers related to the person's inability to act in accordance with the requirement. ]

§2.106.Determination of Ability to Pay.

(a) Financial assessment. [ The local authority must conduct and document a financial assessment for each person within the first 30 days of services. The local authority must update each person's financial assessment at least annually and whenever a significant financial change (as defined) occurs as long as the person continues to receive services. The financial assessment is accomplished using the financial documentation listed in §412.105(d) of this title (relating to Accountability), which represents the finances of the: ]

(1) An MRA must conduct and document a financial assessment for a person within 30 days after the person begins to receive services.

(2) Except for a Medicaid recipient who is receiving Supplemental Security Income (SSI) benefits but not receiving employment income, the MRA must update a person's financial assessment at least annually while the person is receiving services. The MRA must monitor the continuing availability of benefits for a person with income-based public insurance.

(3) The MRA must update a person's financial assessment if the person experiences a significant financial change.

(4) The financial assessment must be conducted using the financial documentation listed in §2.105(d) of this subchapter (relating to Accountability) that represents the finances of:

(A) the person who is age 18 years or older and the person's spouse; or

(B) the parents of the person who is under age 18 years.

[ (1) person who is age 18 years or older and the person's spouse; or]

[ (2) parents of the person who is under age 18 years.]

(b) MMF [ Maximum monthly fee ]. A person's MMF [ maximum monthly fee ] is based on the financial assessment and calculated using the Monthly Ability-To-Pay Fee Schedule, as referenced in §2.110 of this subchapter (relating to Monthly Ability-To-Pay Fee Schedule) [ as Exhibit A in §412.113 of this title (relating to Exhibit) ]. The calculation is based on the number of family members and annual gross income, reduced by extraordinary expenses paid during the past 12 months or projected for the next 12 months. No other sliding scale is used.

(1) An MMF [ A maximum monthly fee ] that is greater than zero is established for a person who is [ persons who are ] determined as having an ability to pay. If two or more members of the same family are receiving services, then the MMF [ maximum monthly fee ] is for the family.

(2) An MMF [ A maximum monthly fee ] of zero is established for a person who is [ persons who are ] determined as having an inability to pay.

(c) Third-party coverage.

(1) (No change.)

(2) Third-party coverage that will not pay.

(A) If the person's third-party coverage will not pay for needed services because the MRA [ local authority ] does not have an approved provider on its network, then the MRA must [ local authority will ] propose to refer the person to the person's [ his/her ] third-party coverage to identify a provider for which the third-party coverage will pay unless:

(i) the MRA [ local authority ] is identified as being responsible for providing court-ordered [ outpatient ] services to the person;

(ii) the MRA [ local authority ] is able to negotiate adequate payment for services with the person's third-party coverage; or

(iii) (No change.)

(B) If the MRA [ local authority ] proposes to refer the person to the person's [ his/her ] third-party coverage as described in paragraph (2)(A) of this subsection, then the MRA must [ local authority will ] provide written notification to the person (or parent) in accordance with §2.109(e)(1) of this subchapter [ §412.109(e)(1) of this title ] (relating to Payments, Collections, and Non-payment), which provides an opportunity to appeal. The MRA [ local authority ] must also comply with §2.109(e)(2) - (3) of this subchapter [ §412.109(e)(2) - (3) ] as initiated by the person (or parent).

(C) If the MRA [ local authority ] refers the person to [ his/her ] third-party coverage, then the MRA must [ local authority will ] assist the person (or parent) in identifying a provider for which the third-party coverage will pay.

(D) If a person who has been referred to [ his/her ] third-party coverage is unable to identify or access needed services from an approved provider or if access will be unduly delayed, then the MRA must [ local authority will ]:

(i) (No change.)

(ii) if [ clinically ] indicated, ensure the provision of the needed services to the person pending resolution.

(E) The MRA must [ local authority will ] maintain documentation of:

(i) - (iii) (No change.)

(d) Social Security work incentive provisions. A person who identified payment for specific needed services in the person's [ his/her ] approved plan utilizing Social Security work incentive provisions (i.e., Plan to Achieve Self-Sufficiency; Impairment Related Work Expense ) is determined as having an ability to pay for the specific services. A person is [ Persons are ] not required to identify payment for any service for which the person [ they ] may be eligible as part of the person's [ their ] approved plan for utilizing the Social Security work incentive provisions.

(e) Notification. After a financial assessment is conducted, the MRA [ local authority ] must provide written notification to the person (or parent) [ (or parents) ] that includes:

(1) (No change.)

(2) a copy of the financial assessment form [ that is signed by the person (or parent) ] and a copy of the Monthly Ability-to-Pay Fee Schedule, with the applicable areas indicated (i.e., annual gross income, number of family members);

(3) the amount of the MMF [ maximum monthly fee ];

(4) the name and phone number of at least one MRA [ local authority ] staff who the person (or parent) may contact during office hours to discuss the information contained in the written notification; and

(5) (No change.)

§2.107.Standard Charges.

An MRA [ Each local authority ] must establish, at least annually, a reasonable standard charge for a [ each ] community service as indicated in the performance contract. The standard charge must cover, at a minimum, the MRA's [ local authority's ] cost of ensuring the provision of the service.

§2.108.Billing Procedures.

(a) Monthly account.

(1) The MRA must [ local authority will ] maintain a monthly account for a [ each ] person that lists all services provided to the person during the month and the standard charges for the services. Each service listed must [ will ] indicate whether the service is:

(A) - (D) (No change.)

(2) (No change.)

(b) Accessing funding sources. The MRA [ local authority ] must access all available funding sources before using DADS [ TDMHMR ] funds to pay for a person's services. Funding sources may include third-party coverage, state and/or local governmental agency funds (e.g., crime victims fund), Qualified Medicare Beneficiary (QMB) Program, [ indigent pharmaceutical programs, ] or a trust that provides for the person's need for community services [ healthcare and rehabilitative needs ].

(c) Billing third-party coverage. The MRA bills [ local authority will bill ] the person's third-party coverage the monthly account amount for covered services. If the MRA [ local authority ] has negotiated a reimbursement amount with the third-party coverage that is different from the monthly account amount, then the MRA [ local authority ] may bill the third-party coverage the negotiated reimbursement amount for covered services.

(d) Billing the person (or parent) [ (or parents) ].

(1) No third-party coverage. If the monthly account amount for services not covered by third-party coverage:

(A) exceeds the person's MMF [ maximum monthly fee (MMF) ], then the amount is reduced to equal the MMF and the MRA [ local authority ] bills the person (or parent) the MMF; or

(B) is less than the person's MMF, then the MRA [ local authority ] bills the person (or parent) the monthly account amount for services not covered by third-party coverage.

(2) Medicare third-party coverage. Nothing in this paragraph is intended to conflict with any applicable law, rule, or regulation with which an MRA [ a local authority ] must comply.

(A) (No change.)

(B) If the total amount applied toward the person's MMF as described in paragraph (2)(A) of this subsection:

(i) exceeds the person's MMF, then the amount is reduced to equal the MMF and the MRA [ local authority ] bills the person (or parent) the MMF; or

(ii) is less than the person's MMF, then the MRA [ local authority ] bills the person (or parent) the total amount applied toward the MMF.

(3) Non-Medicare third-party coverage.

(A) Cost-sharing exceeds MMF. If the amount of all applicable co-payments, co-insurance, and deductibles for services listed in the monthly account as covered by non-Medicare third-party coverage exceeds the person's MMF, then the MRA [ local authority ] bills the person (or parent) all applicable co-payments, co-insurance, and deductibles.

(B) Cost-sharing does not exceed MMF.

(i) (No change.)

(ii) If the total amount applied toward the person's MMF as described in paragraph (3)(B)(i) [ (3)(B) ] of this subsection:

(I) exceeds the person's MMF, then the amount is reduced to equal the MMF and the MRA [ local authority ] bills person (or parent) the MMF; or

(II) is less than the person's MMF, then the MRA [ local authority ] bills the person (or parent) the total amount applied toward the MMF.

(C) Annual cost-sharing limit. If the person (or parent) has reached the person's [ his/her ] annual cost-sharing limit (i.e., maximum out-of-pocket expense) as verified by the non-Medicare third-party coverage, then the MRA must [ local authority will ] not bill the person (or parent) any co-payments, co-insurance, or deductibles, as applicable to the annual cost-sharing limit, for services covered by the non-Medicare third-party coverage for the remainder of the policy-year.

(4) Social Security work incentive provisions.

(A) If the person identified a payment amount for specific services in the person's [ his/her ] approved plan utilizing Social Security work incentive provisions (i.e., Plan to Achieve Self-Sufficiency; Impairment Related Work Expense), then the MRA bills [ local authority bills ] the person the monthly account amount for the specific services up to the identified payment amount. If the monthly account amount for the specific services is greater than the identified payment amount, then the remaining balance is applied toward the person's MMF.

(B) (No change.)

(C) If the total amount applied toward the person's MMF as described in paragraph (4)(B) of this subsection:

(i) exceeds the person's MMF, then the amount is reduced to equal the MMF and the MRA [ local authority ] bills person (or parent) the MMF; or

(ii) is less than the person's MMF, then the MRA [ local authority ] bills the person (or parent) the total amount applied toward the MMF.

(e) Statements.

(1) The MRA must [ local authority will ] send to a person (or parent) [ persons (and parents) ] who has [ have ] been determined as having the ability to pay monthly or quarterly statements that include:

(A) - (E) (No change.)

(2) Unless requested otherwise, the MRA may [ local authority does ] not send a statement [ statements ] to a person (or parent) [ persons (or parents) ] who has [ have ] an ability to pay if the person (or parent) maintains [ they maintain ] a zero balance (i.e., the person (or parent) does not currently owe any money).

(3) Unless requested otherwise, the MRA may [ local authority does ] not send a statement [ statements ] to a person (or parent) [ persons (or parents) ] who has [ have ] an inability to pay.

§2.109.Payments, Collections, and Non-payment.

(a) Payment and collection.

(1) A person (or parent) must [ Persons (and parents) are responsible for ] promptly pay [ paying ] all charges owed to the MRA [ local authority ].

(2) An MRA must make [ Local authorities are responsible for making ] reasonable efforts to collect payments from all available funding sources before accessing DADS [ TDMHMR ] funds to pay for a person's [ persons' ] services.

(b) Financial hardship. If a person (or parent) claims financial hardship as provided in this subsection, then the MRA [ local authority ] must determine whether a significant financial change (as defined) has occurred. If a significant financial change has occurred, then the MRA [ local authority ] must immediately update the person's (or parent's) financial assessment as required in §2.106(a) of this subchapter [ 412.106(a) of the title ] (relating to Determination of Ability to Pay).

(1) If a person (or parent) claims, and provides documentation, that financial hardship prevents prompt payment of all charges owed, then the MRA [ local authority ] may arrange for the person (or parent) to pay a lesser amount each month.

(2) If a person (or parent) claims that financial hardship prevents prompt payment of all charges owed, then the MRA [ local authority ] must arrange for the person (or parent) to pay a lesser amount each month only if the person has third-party coverage that is neither income-based public insurance nor Medicare and the person's cost-sharing exceeds the person's [ his/her ] MMF. The lesser amount:

(A) - (B) (No change.)

(3) (No change.)

(c) Discontinuing charges to a person (or parent) [ persons (or parents) ] for services. If the MRA [ local authority ] makes a decision, which [ based on a clinical determination that ] is documented and includes input from the person's team, that being charged for services and receiving statements will result in a significant reduction in the functioning [ level ] of the person or the person's (or parent's) refusal or rejection of the needed services, then the MRA must stop [ local authority will discontinue ] charging the person (or parent) for services and stop sending statements. The decision [ clinical determination ] must be reassessed at least annually [ every three months ]. If the MRA [ local authority ] decides to discontinue charging the person (or parent) for services, then the MRA [ local authority ] must develop and implement a plan to address the issues related to the person's functioning limitations [ level ] or the person's (or parent's) refusal or rejection of the needed services.

(d) Involuntary reduction or termination of services for non-payment by person (or parent).

(1) The MRA must [ local authority will ] address the past-due account of a person (or parent) who is not making payments to ensure reasonable efforts to secure payments are initiated with the person (or parent). For example, if the MRA [ local authority ] determines that non-payment is related to financial hardship, then the MRA [ local authority ] may assist the person (or parent) in making arrangements to pay a lesser amount each month in accordance with subsection (a)(2) of this section or if the MRA [ local authority ] makes a decision, which [ based on a clinical determination that ] is documented and includes input from the person's team, that non-payment is related to the person's functioning limitations [ mental illness or mental retardation ], then the person's service [ treatment/service ] plan may be modified to address the non-payment.

(2) If the MRA [ local authority ] makes a decision, which [ based on a clinical determination that ] is documented and includes input from the person's team, that non-payment is not related to the person's functioning limitations [ mental illness or mental retardation ] and, despite reasonable efforts to secure payment, the person (or parent) does not pay, then the MRA [ local authority ] may propose to involuntarily reduce or terminate the person's services. The MRA [ local authority ] may not propose to involuntarily reduce or terminate the person's services if :

(A) the proposed action would result in a significant reduction in the person's functioning;

(B) the proposed action would put at risk the person's health, safety, or support system; or

(C) the MRA [ the proposed action would cause the person's mental or physical health to be at imminent risk of serious deterioration or the local authority ] is identified as being responsible for providing court-ordered [ outpatient ] services to the person.

(3) If the MRA [ local authority ] proposes to involuntarily reduce or terminate the person's services, then the MRA [ local authority ] must:

(A) maintain [ clinical ] documentation that the proposed action would not result in a significant reduction in the person's functioning or put at risk the person's health, safety, or support system [ cause the person's mental or physical health to be at imminent risk of serious deterioration ]; and

(B) (No change.)

(e) Notification, Appeal, and Review.

(1) Notification. The MRA must [ local authority will ] notify the person (or parent) in writing of the proposed action (i.e., to involuntarily reduce or terminate the person's services or refer the person to [ his/her ] third-party coverage) and the right to appeal the proposed action in accordance with §2.46 of this chapter [ §401.464 of this title ] (relating to Notification and Appeals Process). The notification must [ will ] describe the time frames and process for requesting an appeal and include a copy of this subchapter. If the person (or parent) requests an appeal within the prescribed time frame, then the MRA must [ local authority may ] not take the proposed action while the appeal is pending. The MRA [ local authority ] may take the proposed action if the person (or parent) does not request a review within the prescribed time frame.

(2) Appeal and appeal decision. The MRA must conduct the appeal [ is conducted ] in accordance with §2.46(g) of this chapter [ §401.464(g) of this title (relating to Notification and Appeals Process) ]. The MRA must notify [ local authority will notify ] the person (or parent) in writing of the appeal decision in accordance with §2.46(h) of this chapter [ §401.464(h) ] and the right to have the appeal decision reviewed by the Office of Consumer Rights and Services at DADS [ and Rights Protection - Ombudsman (1-800-252-8154) at TDMHMR Central Office ] if the person (or parent) is dissatisfied with the appeal decision. The notification must describe the time frames and process for requesting a review.

(3) Review of appeal decision. If the person (or parent) is dissatisfied with the appeal decision, then the person (or parent) may request a review by the Office of Consumer Rights and Services at DADS [ and Rights Protection - Ombudsman at TDMHMR Central Office ]. A request for review must be submitted to the Office of Consumer Rights and Services , Department of Aging and Disability Services, P.O. Box 149030, MC E-249, Austin, TX 78714-9030 [ and Rights Protection - Ombudsman, TDMHMR, P.O. Box 12668, Austin, TX 78751 ], within 10 working days after [ of ] receipt of the appeal decision. If the person (or parent) requests a review within the prescribed time frame, then the MRA must [ local authority may ] not take the proposed action while the review is pending. The MRA [ local authority ] may take the proposed action if the person (or parent) does not request a review within the prescribed time frame and the appeal decision upholds the decision to take the proposed action.

(A) A person (or parent) who requests a review may choose to have the reviewer conduct the review:

(i) by telephone conference with the person (or parent) and a representative from the MRA [ local authority ] and make a decision based upon verbal testimony made during the telephone conference and any documents provided by the person (or parent) and the MRA [ local authority ]; or

(ii) by making a decision based solely upon documents provided by the person (or parent) and the MRA [ local authority ] without the presence of any of the parties involved.

(B) The review:

(i) is [ will be ] conducted no sooner than 10 working days and no later than 30 working days after [ of ] receipt of the request for review unless an extension is granted by the director of the Office of Consumer Rights and Services [ and Rights Protection - Ombudsman ];

(ii) includes [ will include ] an examination of the pertinent information concerning the proposed action and may include consultation with DADS [ TDMHMR clinical staff and ] staff who are responsible for the policy contained in this subchapter;

(iii) results [ will result ] in a final decision which will uphold, reverse, or modify the original decision to take the proposed action; and

(iv) is the final step of the appeal process for involuntarily reducing or terminating the person's services for non-payment and for referring the person to [ his/her ] third-party coverage.

(C) Within five working days after the review, the reviewer sends [ will send ] written notification of the final decision to the person (or parent) and the MRA [ local authority ].

(D) The MRA must [ local authority will ] take appropriate action consistent with the final decision.

(f) Prohibition of financial penalties. The MRA must [ local authority may ] not impose financial penalties on a person (or parent).

(g) Debt collection. The MRA [ Local authorities ] must make reasonable efforts to collect debts before an account is referred to a debt collection agency. The MRA must document its [ Local authorities must document their ] efforts at debt collection.

(1) The MRA [ Local authorities ] must incorporate into a written agreement or contract for debt collection provisions that state that both parties must [ shall ]:

(A) (No change.)

(B) not harass, threaten, or intimidate a person or the person's family [ persons and their families ].

(2) The MRA must [ Local authorities will ] enforce the provisions contained in paragraph (1) of this subsection.

§2.110.Monthly Ability-to-Pay Fee Schedule.

The Monthly Ability-To-Pay Fee Schedule, which can be found at www.dads.state.tx.us [ referenced as Exhibit A in §412.113 of this title (relating to Exhibit) ], is based on 150% of the Federal Poverty Guidelines. DADS [ TDMHMR ] may revise the Monthly Ability-To-Pay Fee Schedule, based on any changes in the Federal Poverty Guidelines.

§2.111.Training.

[ In accordance with a prescribed training program developed by TDMHMR, all local authority ] MRA staff who are involved in implementing or explaining the content of this subchapter must receive initial training and demonstrate competency prior to performing tasks related to charging for community services [ and annually thereafter ]. Such staff must demonstrate competency annually thereafter.

§2.112.Brochure for a Person (or Parent) [ Persons (and Parents) ].

(a) DADS makes available on its website [ TDMHMR will develop ] a brochure that contains the policies for charging for community services that are contained in this subchapter, including:

(1) - (2) (No change.)

(b) An MRA [ The local authority ] must provide a person (or parent) [ persons (and parents) ] a copy of the brochure prior to the person's [ their ] entry into services, except in a crisis.

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 29, 2007.

TRD-200702781

Kenneth L. Owens

General Counsel

Department of Aging and Disability Services

Earliest possible date of adoption: August 12, 2007

For further information, please call: (512) 438-3734


40 TAC §§2.104, 2.113 - 2.115

(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 Department of Aging and Disability Services or in the Texas Register office, Room 245, James Earl Rudder Building, 1019 Brazos Street, Austin.)

STATUTORY AUTHORITY

The repeal is proposed under Texas Government Code, §531.0055, which provides that the HHSC executive commissioner shall adopt rules for the operation and provision of services by the health and human services agencies, including DADS; Texas Human Resources Code, §161.021, which provides that the Aging and Disability Services Council shall study and make recommendations to the HHSC executive commissioner and the DADS commissioner regarding rules governing the delivery of services to persons who are served or regulated by DADS; and Texas Health and Safety Code, §534.067, which requires DADS to establish a uniform fee collection policy for mental retardation authorities.

The repeal implements Texas Government Code, §531.0055, Texas Human Resources Code, §161.021, and Texas Health and Safety Code, §534.067.

§2.104.Principles.

§2.113.Exhibit.

§2.114.References.

§2.115.Distribution.

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 29, 2007.

TRD-200702782

Kenneth L. Owens

General Counsel

Department of Aging and Disability Services

Earliest possible date of adoption: August 12, 2007

For further information, please call: (512) 438-3734


Chapter 97. LICENSING STANDARDS FOR HOME AND COMMUNITY SUPPORT SERVICES AGENCIES

Subchapter E. LICENSURE SURVEYS

2. THE SURVEY PROCESS

40 TAC §97.527

The Health and Human Services Commission (HHSC) proposes, on behalf of the Department of Aging and Disability Services (DADS), an amendment to §97.527, concerning post-survey procedures, in Chapter 97, Licensing Standards for Home and Community Support Services Agencies.

BACKGROUND AND PURPOSE

The purpose of the amendment is to update the time frames and procedures that a home and community support services agency (agency) must follow to request an informal review of deficiencies (IRoD). The amendment also allows an agency submitting an IRoD request form additional time to submit a rebuttal letter and supporting documentation.

SECTION-BY-SECTION SUMMARY

The amendment to §97.527 requires an agency to postmark or fax an IRoD request form to DADS within 10 days after the agency receives official written notice of the survey findings. The amendment also requires a rebuttal letter and supporting documentation to be received by the DADS Survey and Certification Enforcement Unit within seven days after the postmark or fax date of the IRoD request form.

In addition, the amendment adds language detailing what an agency must include in a rebuttal letter and supporting documentation and states that the written decision on the IRoD issued by the DADS Survey and Certification Enforcement Unit is final.

FISCAL NOTE

Gordon Taylor, DADS Chief Financial Officer, has determined that, for the first five years the proposed amendment is in effect, enforcing or administering the amendment does not have foreseeable implications relating to costs or revenues of state or local governments.

SMALL BUSINESS AND MICRO-BUSINESS IMPACT ANALYSIS

DADS has determined that there is no adverse economic effect on small businesses or micro-businesses as a result of enforcing or administering the amendment, because the proposal does not place any new requirements on agencies that would cause them to alter their business practices.

PUBLIC BENEFIT AND COSTS

Veronda Durden, DADS Assistant Commissioner for Regulatory Services, has determined that, for each year of the first five years the amendment is in effect, the public benefit expected as a result of enforcing the amendment is clearer direction and greater flexibility for an agency in responding to a statement of violation or deficiency.

Ms. Durden anticipates that there will not be an economic cost to persons who are required to comply with the amendment. The amendment will not affect a local economy.

TAKINGS IMPACT ASSESSMENT

DADS has determined that this 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 Texas Government Code, §2007.043.

PUBLIC COMMENT

Questions about the content of this proposal may be directed to Sylvia Trevino at (361) 878-3419 in DADS' Regulatory Services Division. Written comments on the proposal may be submitted to Texas Register Liaison, Legal Services-004, Department of Aging and Disability Services W-615, P.O. Box 149030, Austin, TX 78714-9030 or street address 701 West 51st St., Austin, TX 78751; faxed to (512) 438-5759; or e-mailed to rulescomments@dads.state.tx.us. To be considered, comments must be submitted no later than 30 days after the date of this issue of the Texas Register. The last day to submit comments falls on a Sunday; therefore, comments must be either (1) postmarked or shipped before the last day of the comment period; (2) hand-delivered to DADS before 5:00 p.m. on DADS' last working day of the comment period; or (3) faxed or e-mailed by midnight on the last day of the comment period. When faxing or e-mailing comments, please indicate "Comments on Proposed Rule 004" in the subject line.

STATUTORY AUTHORITY

The amendment is proposed under Texas Government Code, §531.0055, which provides that the HHSC executive commissioner shall adopt rules for the operation and provision of services by the health and human services agencies, including DADS; Texas Human Resources Code, §161.021, which provides that the Aging and Disability Services Council shall study and make recommendations to the HHSC executive commissioner and the DADS commissioner regarding rules governing the delivery of services to persons who are served or regulated by DADS; and Texas Health and Safety Code, Chapter 142, which authorizes DADS to license and regulate home and community support services agencies.

The amendment implements Texas Government Code, §531.0055, Texas Human Resources Code, §161.021, and Texas Health and Human Safety Code, §§142.001 - 142.030.

§97.527.Post-Survey Procedures.

(a) - (j) (No change.)

(k) If an agency disagrees with the survey findings, the agency may request an IRoD and submit additional written information to refute a violation or deficiency to demonstrate compliance in an informal setting.

(1) (No change.)

(2) To request an IRoD, an agency must : [ submit the form for requesting the IRoD (included in the official written notification of the survey findings), a rebuttal letter, and supporting documentation to DADS. ]

(A) mail or fax a complete and accurate IRoD request form to the address or fax number listed on the form, which [ The original request form ] must be postmarked or faxed within 10 days after the date of receipt of the official written notification of the survey findings ; [ and be received at the DADS address listed on the form within 10 days after the date of the postmark. ]

(B) mail or fax a rebuttal letter [ A copy of the completed request for IRoD form ] and supporting documentation to the address or fax number listed on the IRoD request form and ensure receipt by the DADS Survey and Certification Enforcement Unit within seven days after the postmark or fax date of the IRoD request form; and [ must also be sent to the designated survey office. ]

(C) mail or fax a copy of the IRoD request form, rebuttal letter, and supporting documentation to the designated survey office within the same time frames each is submitted to the DADS Survey and Certification Enforcement Unit.

(3) An agency may not submit information after the deadlines established in paragraph (2)(A) and (B) of this subsection unless DADS requests additional information. The agency's response to DADS' request for information must be received within three working days after the request is made.

(4) [ (3) ] An agency waives its right to an IRoD if the agency fails to submit the required information to the DADS Survey and Certification Enforcement Unit within the required time frames. [ frame. The agency may not submit additional information after the 10 days allowed, unless DADS' review staff request additional information for clarification. ]

(5) An agency must present sufficient information to the DADS Survey and Certification Enforcement Unit to support the agency's desired IRoD outcome.

(6) The rebuttal letter and supporting documentation must include:

(A) the disputed deficiencies or violations;

(B) the reason the deficiencies or violations are disputed;

(C) the desired outcome for each disputed deficiency or violation; and

(D) attachments from client records, applicable policies and procedures, or other supporting documentation or information that directly demonstrates that the deficiency or violation should not have been cited.

(7) The written decision issued by DADS after the completion of its review is final.

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 29, 2007.

TRD-200702780

Kenneth L. Owens

General Counsel

Department of Aging and Disability Services

Earliest possible date of adoption: August 12, 2007

For further information, please call: (512) 438-3734


Part 20. TEXAS WORKFORCE COMMISSION

Chapter 800. GENERAL ADMINISTRATION

Subchapter E. SANCTIONS

40 TAC §§800.152, 800.191 - 800.200

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

Subchapter E, Sanctions, §800.152 and §800.191

The Commission proposes the following new sections to Chapter 800, relating to General Administration:

Subchapter E, Sanctions, §§800.192 - 800.200

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 rule change is to establish streamlined and administratively efficient appeals procedures for Local Workforce Development Boards (Boards) sanction hearings.

Under a separate, but concurrent, rulemaking proposal, the Commission is proposing the repeal of Chapter 823, General Hearings rules, and is proposing new Chapter 823, Integrated Complaints, Hearings, and Appeals rules. Certain sections of repealed Chapter 823 have been modified and incorporated into this chapter, which sets forth procedures for appeals of Board sanction determinations.

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 E. SANCTIONS

The Commission proposes amendments to Subchapter E, as follows:

§800.152. Definitions

Section 800.152 adds new definitions, which are retained with minor modifications, from the concurrent repeal of Chapter 823.

Section 800.152(2) defines a "hearing" as an informal, orderly, and readily available proceeding held before an impartial hearing officer at which a party or hearing representative may present evidence to show that the Agency's determination of sanctions shall be reversed, affirmed, or modified.

Section 800.152(3) defines a "hearing officer" as an Agency employee designated to conduct hearings and issue proposals for decisions.

Section 800.152(4) defines a "hearing representative" as any individual authorized by a party to assist the party in presenting the party's appeal. A hearing representative may be legal counsel or another individual. Each party may have a hearing representative to assist in presenting the party's appeal.

Section 800.152(8) defines a "party" as the person or entity with the right to participate in a hearing authorized by applicable statute or rule.

Certain subsections in §800.152 have been renumbered to accommodate additions or deletions.

§800.191. Appeal

Section 800.191(b) adds that an appeal shall be in writing.

Section 800.191(c) clarifies that the Agency shall refer the request for appeal to an impartial hearing officer. The requirement of the hearing officer to receive oral and written evidence and to prepare a written proposal for a decision to be submitted to the executive director for a final decision is removed and relocated in new §800.197.

Section 800.191(d) states that the decision of the Agency's executive director shall be final. This requirement is removed and relocated in new §800.200.

New §800.191(d) provides that the Agency shall mail a written notice of hearing to the Board (and its representative, if any), which contains:

(1) the date, time, place, and nature of the hearing;

(2) the legal authority under which the hearing is to be held; and

(3) a brief summary of the issues to be considered during the hearing.

§800.192. Hearing Procedures

New §800.192 sets forth procedures for conducting Board sanction hearings.

Section 800.192(a) provides that the hearing must be held in person in Austin, Texas, unless the parties agree to a telephonic hearing or request a different location.

Section 800.192(b) requires that the hearing be conducted informally to determine the substantial rights of the parties. This subsection also states that all issues relevant to the appeal must be considered and addressed, and may include:

(1) presentation of evidence;

(2) examination of witnesses and parties;

(3) additional evidence; and

(4) appropriate hearing behavior.

Section 800.192(c) states that:

(1) the hearing record must include the audio recording of the proceeding and any other relevant evidence relied on by the hearing officer, including documents and physical evidence entered as exhibits;

(2) the hearing record must be maintained according to federal and state law; and

(3) the confidentiality of information contained in the hearing record must be maintained according to federal and state law.

§800.193. Postponements, Continuances, and Withdrawals

New §800.193 authorizes the hearing officer to grant a hearing postponement, continuance, or withdrawal.

Section 800.193(a) allows the hearing officer to grant a postponement of the hearing for good cause, at the party's request.

Section 800.193(b) states that a continuance may be ordered at the discretion of the hearing officer to consider additional, necessary evidence or for any other reason the hearing officer deems appropriate.

Section 800.193(c) provides that a Board may withdraw an appeal at any time prior to the issuance of the final decision.

§800.194. Evidence

New §800.194 sets forth the evidence procedures for hearings.

Section 800.194(a), Evidence Generally, provides that evidence, including hearsay evidence, shall be admitted if it is relevant and if in the judgment of the hearing officer it is the kind of evidence on which reasonably prudent persons are accustomed to rely in the conduct of their affairs. However, the hearing officer may exclude evidence if its probative value is outweighed by the danger of unfair prejudice, by confusion of the issues, or by reasonable concern for undue delay, waste of time, or needless presentation of cumulative evidence.

Section 800.194(b), Exchange of Exhibits, states that any documentary evidence to be presented during a telephonic hearing shall be exchanged with all parties with a copy given to the hearing officer in advance of the hearing. Any documentary evidence to be presented at an in-person hearing shall be exchanged at the hearing.

Section 800.194(c), Stipulations, states that parties, with the consent of the hearing officer, may agree in writing to relevant facts. The hearing officer may decide the appeal on the basis of such stipulations or, at the hearing officer's discretion, may set the appeal for hearing and take such further evidence as the hearing officer deems necessary.

Section 800.194(d), Experts and Evaluations, states that if relevant and useful--testimony from an independent expert or a professional evaluation from a source satisfactory to the parties and the Agency may be ordered by the hearing officers, on their own motion, or at a party's request. Any such expert or evaluation shall be at the expense of one of the parties.

Section 800.194(e), Subpoenas, states that:

(1) The hearing officer may issue subpoenas to compel the attendance of witnesses and the production of records. A subpoena may be issued either at the request of a party or on the hearing officer's own motion.

(2) A party requesting a subpoena shall state the nature of the information desired, including names of any witnesses and the records that the requestor feels are necessary for the proper presentation of the case.

(3) The request shall be granted only to the extent the records or the testimony of the requested witnesses appears to be relevant to the issues on appeal.

(4) A denial of a subpoena request shall be made in writing or on the record, stating the reasons for such denial.

§800.195. Hearing Officer Independence and Impartiality

New §800.195 relates to the Agency's hearing officers' powers and impartiality and the grounds and process for the disqualification and withdrawal of hearing officers.

Section 800.195(a) provides that a hearing officer has all necessary powers to conduct a full, fair, and impartial hearing. Hearing officers shall remain independent and impartial in all matters regarding handling of any issues during the pendency of a case and in issuing their written proposals for decisions.

Section 800.195(b) specifies that a hearing officer shall be disqualified if the hearing officer has a personal interest in the outcome of the appeal or if the hearing officer directly or indirectly participated in the determination on appeal. Any party may present facts to the Agency in support of a request to disqualify a hearing officer.

Section 800.195(c) allows the hearing officer to withdraw from a hearing to avoid the appearance of impropriety or partiality.

Section 800.195(d) provides that upon disqualification or withdrawal, the Agency shall assign an alternate hearing officer to the case. This alternate hearing officer is not bound by any findings or conclusions made by the disqualified or withdrawn hearing officer.

§800.196. Ex Parte Communications

New §800.196 is intended to prevent improper communication with hearing officers and to ensure that their decisions are based solely on the evidence and arguments presented at the hearing. The section states that:

(a) The hearing officer shall not participate in ex parte communications, directly or indirectly, in any matter in connection with any substantive issue, with any interested person or party. Likewise, no person shall attempt to engage in ex parte communications with the hearing officer on behalf of any interested person or party.

(b) If the hearing officer receives any such ex parte communication, the other parties shall be given an opportunity to review that communication.

(c) Nothing shall prevent the hearing officer from communicating with parties or their representatives about routine matters such as requests for continuances or opportunities to inspect the file.

(d) The hearing officer may initiate communications with an Agency employee who has not participated in a hearing or any determination in the case for the limited purpose of using the special skills or knowledge of the Agency and its staff in evaluating the evidence.

§800.197. Hearing Decision

New §800.197 sets out the Agency's procedures related to the preparation of a written proposal for a decision.

Section 800.197(a) requires the hearing officer to promptly prepare a written proposal for decision following the conclusion of the hearing.

Section 800.197(b) provides that the proposal for decision shall be based exclusively on the evidence of record in the hearing and on matters officially noticed in the hearing and state:

(1) a list of individuals who appeared at the hearing;

(2) the findings of fact and conclusions of law reached on the issues; and

(3) the affirmation, reversal, or modification of the sanctions.

Section 800.197(c) provides that the proposal for decision shall be submitted to the Agency's executive director for issuance of a written decision on behalf of the Agency.

Section 800.197(d) provides that unless a party files a timely motion for rehearing, the Agency may assume continuing jurisdiction to modify or correct a decision until the expiration of 30 calendar days from the mailing date of the decision.

§800.198. Motion for Reopening

New §800.198 sets forth the procedures for requesting a reopening of a hearing if a party is not able to participate in a hearing.

Section 800.198(a) provides that a party who fails to appear at a hearing may request to reopen the hearing within 30 calendar days from the date the decision is mailed.

Section 800.198(b) states that the motion for reopening must be in writing and detail the reason for failing to appear at the hearing.

Section 800.198(c) provides that the hearing officer may schedule a hearing to consider granting the motion for reopening.

Section 800.198(d) allows that if the hearing officer determines the party has shown good cause for failing to appear, the hearing officer may grant the motion.

§800.199. Motion for Rehearing

New §800.199 sets forth the Agency's procedures for requesting a rehearing and the conditions under which a rehearing may be granted.

Section 800.199(a) provides that a Board may file a motion for rehearing within 30 days from the date the decision is mailed. A rehearing shall be granted only for the presentation of new evidence.

Section 800.199(b) requires that a motion for rehearing be in writing and set forth the new evidence for consideration.

Section 800.199(c) states that if the hearing officer determines a rehearing is warranted, it shall be scheduled at a reasonable time and place.

Section 800.199(d) requires the hearing officer to issue a written proposal for decision in response to a timely filed motion for rehearing. The proposal for decision shall be submitted to the Agency's executive director for issuance of a final decision.

§800.200. Finality of Decision

New §800.200 sets forth the conditions under which the Agency's decision is finalized.

Section 800.200(a) states that the decision of the executive director is the final administrative decision of the Agency after the expiration of 30 calendar days from the mailing date of the decision unless within that time:

(1) a request for reopening is filed with the Agency;

(2) a request for rehearing is filed with the Agency; or

(3) the Agency assumes continuing jurisdiction to modify or correct the decision.

Section 800.200(b) provides that any decision issued in response to a request for reopening or rehearing or a modification or correction issued by the Agency shall be final on the expiration of 30 calendar days from the mailing date of the decision, modification, or correction.

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 additional estimated costs to the state and 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 are no anticipated economic costs to persons required to comply with the rules.

There is no anticipated adverse economic impact on small or microbusinesses as a result of enforcing or administering the rules.

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.

Laurence M. Jones, 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 clarify the process for appealing Board sanction determinations and to ensure that such appeals satisfy procedural due process requirements.

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.

PART IV. COORDINATION ACTIVITIES

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.

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, and the Human Resources Code §44.002, regarding Administrative Rules.

The rules will affect Texas Labor Code, Title 4, particularly Chapter 301 and 302, as well as Texas Government Code, Chapter 2308.

§800.152.Definitions.

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

(1) Corrective Action Plan--A plan developed and imposed by the Agency that requires a Board or other entity to take Agency-identified actions within a specified time frame designed to correct specific instances of noncompliance or other failures.

(2) Hearing--An informal, orderly, and readily available proceeding held before an impartial hearing officer at which a party or hearing representative may present evidence to show that the Agency's determination of sanctions shall be reversed, affirmed, or modified.

(3) Hearing officer--An Agency employee designated to conduct hearings and issue proposals for decision.

(4) Hearing representative--Any individual authorized by a party to assist the party in presenting the party's appeal. A hearing representative may be legal counsel or another individual. Each party may have a hearing representative to assist in presenting the party's appeal.

(5) [ (2) ] Level One Sanction Status--A sanction status assigned by the Agency to a Board or other subrecipient of the Agency for significant inability or failure to perform as required by the Agency, including performing or failing to perform due to a sanctionable act as described in this subchapter. A Level One Sanction Status may be associated with the assessment of one or more penalties as referenced in this subchapter.

(6) [ (3) ] Level Two Sanction Status--A higher sanction status than Level One assigned by the Agency to a Board or other subrecipient of the Agency for severe inability or failure to perform as required by the Agency, including performing or failing to perform due to a sanctionable act as described in this subchapter. A Level Two sanction may be associated with the assessment of more severe penalties than those assessed to a Board or subrecipient of the Agency in Level One Sanction Status.

(7) [ (4) ] Level Three Sanction Status--The highest sanction status assigned by the Agency to a Board or other subrecipient of the Agency for extreme inability or failure to perform as required by the Agency, including performing or failing to perform due to a sanctionable act as described in this subchapter. A Level Three Sanction [ level three sanction ] may be associated with the assessment of the most severe penalties being assessed against the Board or subrecipient of the Agency.

(8) Party--The person or entity with the right to participate in a hearing authorized by applicable statute or rule.

§800.191.Appeal.

(a) A Board may appeal a Sanction Determination; however, a recommendation to another entity by the Agency or Commission under §800.174 and §800.175 of this chapter, may not be appealed under this section.

(b) A request for appeal of a [ Notice of ] Sanction Determination [ (Sanction Determination) ] shall be filed [ submitted ] within 10 [ ten ] working days following the receipt of the Sanction Determination. The appeal shall [ must ] be in writing and filed with [ submitted to ] the General Counsel, Texas Workforce Commission, 101 East 15th Street, Room 614, Austin, Texas 78778.

(c) The Agency shall refer the request for appeal to an impartial [ a ] hearing officer for a hearing . [ The hearing officer shall receive oral and written evidence, as deemed appropriate by the hearing officer, from both parties and prepare a written proposal for decision to be submitted to the Agency's Executive Director for final decision. ]

(d) The Agency shall mail a notice of hearing to the Board as provided in §800.181(c) and to its representative, if any. The notice of hearing shall be in writing and include:

(1) a statement of the date, time, place, and nature of the hearing;

(2) a statement of the legal authority under which the hearing is to be held; and

(3) a short and plain statement of the issues to be considered during the hearing.

[ (d) The decision of the Agency's Executive Director shall be final.]

§800.192.Hearing Procedures.

(a) The sanction determination hearing shall be conducted in person in Austin, Texas, unless the parties agree to a telephonic hearing or request a different location.

(b) The hearing shall be conducted informally and in such manner as to ascertain the substantial rights of the parties. All issues relevant to the appeal shall be considered and addressed, and may include:

(1) Presentation of Evidence. The parties to an appeal may present evidence that is material and relevant, as determined by the hearing officer. In conducting a hearing, the hearing officer shall actively develop the record on the relevant circumstances and facts to resolve all issues. To be considered as evidence in a decision, any document or physical evidence must be entered as an exhibit at the hearing.

(2) Examination of Parties and Witnesses. The hearing officer shall examine parties and any witnesses, and shall allow cross-examination to the extent the hearing officer deems necessary to afford the parties due process.

(3) Additional Evidence. The hearing officer, with or without notice to any of the parties, may take additional evidence as deemed necessary, provided that a party shall be given an opportunity to rebut the evidence if it is to be used against the party's interest.

(4) Appropriate Hearing Behavior. All parties shall conduct themselves in an appropriate manner. The hearing officer may expel any individual, including a party, who fails to correct behavior the hearing officer identifies as disruptive. After expulsion, the hearing officer may proceed with the hearing and render a decision.

(c) Records.

(1) The hearing record shall include the audio recording of the proceeding and any other relevant evidence relied on by the hearing officer, including documents and other physical evidence entered as exhibits.

(2) The hearing record shall be maintained in accordance with federal and state law.

(3) Confidentiality of information contained in the hearing record shall be maintained in accordance with federal and state law.

§800.193.Postponements, Continuances, and Withdrawals.

(a) The hearing officer may grant a postponement of a sanction determination hearing for good cause at a party's request.

(b) A continuance of a hearing may be ordered at the discretion of the hearing officer to consider additional, necessary evidence or for any other reason the hearing officer deems appropriate.

(c) A Board may withdraw an appeal at any time prior to the issuance of the final decision.

§800.194.Evidence.

(a) Evidence Generally. Evidence, including hearsay evidence, shall be admitted if it is relevant and if in the judgment of the hearing officer it is the kind of evidence on which reasonably prudent persons are accustomed to rely in the conduct of their affairs. However, the hearing officer may exclude evidence if its probative value is outweighed by the danger of unfair prejudice, by confusion of the issues, or by reasonable concern for undue delay, waste of time, or needless presentation of cumulative evidence.

(b) Exchange of Exhibits. Any documentary evidence to be presented during a telephonic hearing shall be exchanged with all parties and a copy shall be provided to the hearing officer in advance of the hearing. Any documentary evidence to be presented at an in-person hearing shall be exchanged at the hearing.

(c) Stipulations. The parties, with the consent of the hearing officer, may agree in writing to relevant facts. The hearing officer may decide the appeal based on such stipulations or, at the hearing officer's discretion, may set the appeal for hearing and take such further evidence as the hearing officer deems necessary.

(d) Experts and Evaluations. If relevant and useful, testimony from an independent expert or a professional evaluation from a source satisfactory to the parties and the Agency may be ordered by hearing officers, on their own motion, or at a party's request. Any such expert or evaluation shall be at the expense of one or more of the parties.

(e) Subpoenas.

(1) The hearing officer may issue subpoenas to compel the attendance of witnesses and the production of records. A subpoena may be issued either at the request of a party or on the hearing officer's own motion.

(2) A party requesting a subpoena shall state the nature of the information desired, including names of any witnesses and the records that the requestor feels are necessary for the proper presentation of the case.

(3) The request shall be granted only to the extent the records or the testimony of the requested witnesses appears to be relevant to the issues on appeal.

(4) A denial of a subpoena request shall be made in writing or on the record, stating the reasons for such denial.

§800.195.Hearing Officer Independence and Impartiality.

(a) A hearing officer presiding over a hearing shall have all powers necessary and appropriate to conduct a full, fair, and impartial hearing. Hearing officers shall remain independent and impartial in all matters regarding the handling of any issues during the pendency of a case and in issuing their written proposals for decision.

(b) A hearing officer shall be disqualified if the hearing officer has a personal interest in the outcome of the appeal or if the hearing officer directly or indirectly participated in the determination on appeal. Any party may present facts to the Agency in support of a request to disqualify a hearing officer.

(c) The hearing officer may withdraw from a hearing to avoid the appearance of impropriety or partiality.

(d) Following any disqualification or withdrawal of a hearing officer, the Agency shall assign an alternate hearing officer to the case. The alternate hearing officer shall not be bound by any findings or conclusions made by the disqualified or withdrawn hearing officer.

§800.196.Ex Parte Communications.

(a) The hearing officer shall not participate in ex parte communications, directly or indirectly, in any matter in connection with any substantive issue, with any interested person or party. Likewise, no person shall attempt to engage in ex parte communications with the hearing officer on behalf of any interested person or party.

(b) If the hearing officer receives any such ex parte communication, the other parties shall be given an opportunity to review any such ex parte communication.

(c) Nothing shall prevent the hearing officer from communicating with parties or their representatives about routine matters such as requests for continuances or opportunities to inspect the file.

(d) The hearing officer may initiate communications with an Agency employee who has not participated in a hearing or any determination in the case for the limited purpose of using the special skills or knowledge of the Agency and its staff in evaluating the evidence.

§800.197.Hearing Decision.

(a) Following the conclusion of the hearing, the hearing officer shall promptly prepare a written proposal for decision.

(b) The proposal for decision shall be based exclusively on the evidence of record in the hearing and on matters officially noticed in the hearing. The decision shall include:

(1) a list of the individuals who appeared at the hearing;

(2) the findings of fact and conclusions of law reached on the issues; and

(3) the affirmation, reversal, or modification of the sanctions.

(c) The proposal for decision shall be submitted to the Agency's executive director for issuance of a written decision on behalf of the Agency.

(d) Unless a party files a timely motion for rehearing, the Agency may assume continuing jurisdiction to modify or correct a decision until the expiration of 30 calendar days from the mailing date of the decision.

§800.198.Motion for Reopening.

(a) If a party does not appear for a hearing, the party may request a reopening of the hearing within 30 calendar days from the date the decision is mailed.

(b) The motion for reopening shall be in writing and detail the reason for failing to appear at the hearing.

(c) The hearing officer may schedule a hearing on whether to grant the reopening.

(d) The motion may be granted if the hearing officer determines that the party has shown good cause for failing to appear at the hearing.

§800.199.Motion for Rehearing.

(a) A Board may file a motion for rehearing for the presentation of new evidence within 30 days from the date the decision is mailed. A rehearing shall be granted only for the presentation of new evidence.

(b) A motion for rehearing shall be in writing and allege the new evidence to be considered.

(c) If the hearing officer determines that the alleged new evidence warrants a rehearing, a rehearing shall be scheduled at a reasonable time and place.

(d) The hearing officer shall issue a written proposal for decision in response to a timely filed motion for rehearing. The proposal for decision shall be submitted to the Agency's executive director for issuance of a final decision.

§800.200.Finality of Decision.

(a) The decision of the executive director is the final administrative decision of the Agency after the expiration of 30 calendar days from the mailing date of the decision, unless within that time:

(1) a request for reopening is filed with the Agency;

(2) a request for rehearing is filed with the Agency; or

(3) the Agency assumes continuing jurisdiction to modify or correct the decision.

(b) Any decision issued in response to a request for reopening or rehearing or a modification or correction issued by the Agency shall be final on the expiration of 30 calendar days from the mailing date of the decision, modification, or correction.

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 27, 2007.

TRD-200702700

Reagan Miller

Deputy Division Director, Workforce Policy and Service Delivery Branch

Texas Workforce Commission

Earliest possible date of adoption: August 12, 2007

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


Chapter 807. CAREER SCHOOLS AND COLLEGES

Subchapter T. CAREER SCHOOLS HEARINGS

40 TAC §§807.381 - 807.395

The Texas Workforce Commission (Commission) proposes new Subchapter T, relating to Career Schools and Colleges, as follows:

Subchapter T, Career Schools Hearings, §§807.381 - 807.395

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 rule change is to set forth procedures for the appeal and hearing process for those entities and individuals subject to regulation by the Commission under Chapter 132 of the Texas Education Code. Under a separate, but concurrent, rulemaking proposal, the Commission is proposing the repeal of Chapter 823, General Hearings rules, containing the hearings and appeals process for career schools and colleges, which has been modified and incorporated into Chapter 807.

PART II. EXPLANATION OF INDIVIDUAL PROVISIONS

The Commission proposes new Subchapter T, Career Schools Hearings, as follows:

§807.381. Purpose

Section 807.381 states that the purpose of Subchapter T is to set out the hearings process as authorized by Agency rules and Chapter 132 of the Texas Education Code.

§807.382. Definitions

Section 807.382 adds definitions, retained with minor modifications from the concurrent repeal of Chapter 823, which are referenced throughout Subchapter T.

Section 807.382(1) defines "appellant" as a party or the party's authorized hearing representative who files an appeal from an appealable determination or decision.

Section 807.382(2) defines "date of notice" as the date the notice is received--unless good cause exists for the hearing officer to determine otherwise.

Section 807.382(3) defines "date of request of hearing" as the date on which the appellant or the hearing representative filed a written notice of appeal with the Agency by hand delivery, facsimile, or mail. If an appeal is mailed to the Agency, it is completed as of the postmark date on the envelope containing the appeal request, unless good cause exists for the hearing officer to determine otherwise. If an appeal is hand delivered or faxed after 5 p.m., the date of request must be the following day.

Section 807.382(4) defines "hearing" as an informal, orderly, and readily available proceeding held before an impartial hearing officer. A party or hearing representative may present evidence to show that the Agency's determination should be reversed, affirmed, or modified.

Section 807.382(5) defines "hearing officer" as an Agency employee designated to conduct impartial hearings and issue final administrative decisions.

Section 807.382(6) defines "hearing representative" as any individual authorized by a party to assist in presenting the party's appeal, including legal counsel or another individual. Each party may have a hearing representative to assist in presenting the party's appeal.

Section 807.382(7) defines "party" as the person or entity with the right to participate in a hearing authorized in applicable statute or rule.

§807.383. Information on Right of Appeal

Section 807.383 sets forth that an issuer of a determination shall inform the career school applicant or any party directly aggrieved by the determination of the right to a hearing. The notice shall explain the procedure for an appeal, the applicant's or party's right of appeal, and the right to be represented by others, including legal counsel.

§807.384. Request for Hearing

Section 807.384 sets forth procedures for requesting a hearing.

Section 807.384(a) provides that the party seeking review of a determination under this subchapter relating to career school hearings shall request a hearing in writing within 15 days after receipt of notice of the determination.

Section 807.384(b) states that the request shall be addressed as provided in the determination, state the nature of the determination, the name and identifying information of the requesting party, and a request that the determination be reviewed.

Section 807.384(c) specifies that the request may include an explanation of why the determination should be changed, although this is not a jurisdictional requirement.

§807.385. Setting of Hearing

Section 807.385 sets forth the Agency requirements for setting a hearing.

Section 807.385(a) states that upon receipt of the request for a hearing, the Agency shall promptly mail a notice of hearing that sets the hearing for a reasonable time and place within 30 days from the receipt of the request.

Section 807.385(b) requires that the notice of hearing be in writing and include:

(1) a statement of the date, time, place, and nature of the hearing;

(2) a statement of the legal authority under which the hearing will be held; and

(3) a short and plain statement of the issues that will be considered during the hearing.

Section 807.385(c) requires that the notice of hearing be issued at least 10 days before the date of the hearing unless a shorter period is permitted by statute.

Section 807.385(d) provides that the hearing notice shall state whether the hearing will be conducted by telephone or in-person. The notice also shall identify the location of an in-person hearing.

Section 807.385(e) specifies that parties needing special accommodations, including a bilingual or sign language interpreter, may request such before the setting of the hearing, if possible, or as soon as practical.

§807.386. Hearing Officer Independence and Impartiality

Section 807.386 sets out the powers and independence of hearing officers and the grounds and process for the disqualification and withdrawal of hearing officers.

Section 807.386(a) provides that a hearing officer has all necessary powers to conduct a full, fair, and impartial hearing. Hearing officers are to remain independent and impartial in all matters relating to active cases and in issuing their decisions.

Section 807.386(b) specifies that a hearing officer shall be disqualified if he or she has a personal interest in the outcome of the appeal or directly or indirectly participated in the determination on appeal. Any party may present facts to the Agency in support of a request to disqualify a hearing officer.

Section 807.386(c) allows the hearing officer to withdraw from a hearing to avoid the appearance of impropriety or partiality.

Section 807.386(d) provides that upon disqualification or withdrawal, the Agency shall assign an alternate hearing officer. This alternate hearing officer is not bound by any findings or conclusions made by the disqualified or withdrawn hearing officer.

§807.387. Hearing Procedures

Section 807.387 sets out the general procedures for a hearing.

Section 807.387(a) specifies that hearings shall be conducted in person in Austin, Texas, unless the parties agree to a telephonic hearing or request a different location.

Section 807.387(b)(1) - (4) specifies that all hearings shall be conducted informally and in such a manner as to ascertain the substantial rights of the parties. All issues relevant to the appeal shall be considered and addressed, and may include:

(1) presentation of evidence;

(2) examination of parties and witnesses;

(3) additional evidence; and

(4) appropriate hearing behavior.

Section 807.387(c)(1) - (3), Records, states that:

(1) the hearing record shall include the audio recording of the proceedings and any other relevant evidence relied on by the hearing officer, including documents and other physical evidence entered as exhibits;

(2) the hearing record shall be maintained in accordance with federal and state law; and

(3) confidentiality of information contained in the hearing record shall be maintained in accordance with federal and state law.

§807.388. Postponements, Continuances, and Withdrawals

Section 807.388 authorizes the hearing officer to grant a postponement, continuance, or withdrawal.

Section 807.388(a) allows the hearing officer to grant a postponement of a hearing for good cause at a party's request.

Section 807.388(b) states that a continuance may be ordered at the discretion of the hearing officer in order to consider additional, necessary evidence or for any other reason deemed appropriate by the hearing officer.

Section 807.388(c) provides that a party may withdraw its appeal at any time before the final decision is issued.

§807.389. Evidence

Section 807.389 sets forth the evidence procedures for hearings.

Section 807.389(a), Evidence Generally, provides the standard for the admissibility of evidence, specifying that hearsay evidence may be admitted. However, the hearing officer has the authority to exclude relevant evidence to ensure fairness or to prevent undue delay, waste of time, or needless presentation of cumulative evidence.

Section 807.389(b), Exchange of Exhibits, states that any documentary evidence to be presented during a telephonic hearing shall be exchanged with all parties with a copy given to the hearing officer in advance of the hearing. Documentary evidence to be presented at an in-person hearing shall be exchanged at the hearing.

Section 807.389(c), Stipulations, states that parties to an appeal, with the consent of the hearing officer, may agree in writing to the relevant facts involved. The hearing officer may decide the appeal based on such stipulation or, at the hearing officer's discretion, may set the appeal for hearing and take such further evidence deemed necessary.

Section 807.389(d), Experts and Evaluations, allows the hearing officer to order--or a party may request, if relevant and useful--an independent expert or a professional evaluation from a source satisfactory to the parties and the Agency. Such expert or evaluation shall be at the expense of the party(ies).

Section 807.389(e), Subpoenas, provides that:

(1) The hearing officer may issue subpoenas to compel the attendance of witnesses and the production of records. A subpoena may be issued either at the request of a party or on the hearing officer's own motion.

(2) A party requesting a subpoena shall state the nature of the information desired, including names of any witnesses and the records that the requestor feels are necessary for the proper presentation of the case.

(3) The request shall be granted only to the extent the records or the testimony of the requested witnesses appears to be relevant to the issues on appeal.

(4) A denial of a subpoena request shall be made in writing or on the record, stating the reasons for such denial.

§807.390. Ex Parte Communications

Section 807.390(a) provides that the hearing officer shall not participate in ex parte communications, directly or indirectly, in any matter in connection with any substantive issue, with any interested person or party. Likewise, no person shall attempt to engage in ex parte communications with the hearing officer on behalf of any interested person or party.

Section 807.390(b) provides that if any such ex parte communication is received, the other parties should be given the opportunity to review the ex parte communication.

Section 807.390(c) specifies that hearing officers may communicate with parties or representatives about procedural matters.

Section 807.390(d) provides that a hearing officer may communicate with Agency personnel who are not otherwise involved in a case for the limited purpose of using the special skills or knowledge of the Agency and its staff in evaluating the evidence.

§807.391. Change in Determination

Section 807.391 sets out that the original issuer of the determination, which a party has appealed, may change the determination that is the basis of the appeal at any time up to the issuance of a decision by the hearing officer.

§807.392. Hearing Decision

Section 807.392 sets forth the time frame for and the content of a decision issued by a hearing officer under this subchapter.

Section 807.392(a) requires the hearing officer to prepare a written decision promptly after the hearing ends on behalf of the Agency.

Section 807.392(b)(1) - (3) provides that the decision shall be based exclusively on the evidence of record in the hearing and matters officially noticed in the hearing, and shall include:

(1) a list of the individuals who appeared at the hearing;

(2) the findings of fact and conclusions of law reached on the issues; and

(3) the affirmation, reversal, or modification of the determination.

Section 807.392(c) states that unless a party files a timely motion for a rehearing, the Agency may assume continuing jurisdiction to modify or correct a hearing decision until the expiration of 30 calendar days from the mailing date of the hearing decision.

§807.393. Motion for Reopening

Section 807.393 sets forth the time frame and requirements for a motion for the reopening of a hearing.

Section 807.393(a) provides that if a party does not appear for a hearing, the party may request the reopening of the hearing within 30 calendar days from the date the decision is mailed.

Section 807.393(b) states that the motion shall be in writing and detail the reason for failing to appear at the hearing.

Section 807.393(c) provides that the Agency may schedule a hearing on whether to grant the reopening.

Section 807.393(d) allows that a motion may be granted if the hearing officer determines that the party has shown good cause for failing to appear at the hearing.

§807.394. Motion for Rehearing

Section 807.394 sets forth the time frame and requirements for a motion for rehearing.

Section 807.394(a) states that a party has 30 calendar days from the date the decision is mailed to file a motion for rehearing. A rehearing may be granted only for the presentation of new evidence.

Section 807.394(b) requires that a motion for rehearing be in writing and allege the new evidence to be considered. The party must show a compelling reason why the evidence was not presented at the hearing.

Section 807.394(c) states that if the hearing officer determines that the alleged, new evidence warrants a rehearing, a hearing shall be scheduled at a reasonable time and place.

Section 807.394(d) requires that the hearing officer issue a written decision in response to a timely filed motion for rehearing.

Section 807.394(e) states that the Agency may assume continuing jurisdiction to modify, correct, or reform a decision until the expiration of 30 calendar days from the mailing date of the hearing decision.

§807.395. Finality of Decision

Section 807.395 sets forth the conditions under which the decision of the hearing officer is the final decision of the Agency, and gives the Agency the discretion to assume continuing jurisdiction.

Section 807.395(a) states that the decision of the hearing officer becomes the final decision of the Agency after the expiration of 30 calendar days from the mailing date of the decision unless within that time:

(1) a request for reopening is filed with the Agency;

(2) a request for rehearing is filed with the Agency; or

(3) the Agency assumes continuing jurisdiction to modify or correct the decision.

Section 807.395(b) provides that any decision issued in response to a request for a reopening or rehearing or a modification or correction issued by the Agency shall be final on the expiration of 30 calendar days from the mailing date of the decision, modification, or correction.

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 additional estimated costs to the state and 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 are no anticipated economic costs to persons required to comply with the rules.

There is no anticipated adverse economic impact on small or microbusinesses as a result of enforcing or administering the rules.

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.

Laurence M. Jones, 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 clarify the hearing process for career schools, career school applicants, and individuals subject to Chapter 132 of the Texas Education Code.

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.

PART IV. COORDINATION ACTIVITIES

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.

The new 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 new rules affect Title 4, Texas Labor Code, particularly Chapters 301 and 302, as well as Texas Education Code, Chapter 132.

§807.381.Purpose.

This subchapter provides a hearing process to the extent authorized by Chapter 132 of the Texas Education Code and the rules administered by the Agency.

§807.382.Definitions.

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

(1) Appellant--The party or the party's authorized hearing representative who files an appeal from an appealable determination or decision.

(2) Date of notice--The date the notice is received, unless good cause exists for the hearing officer to determine otherwise.

(3) Date of request of hearing--The date on which the appellant or the hearing representative filed a written notice of appeal with the Agency by hand delivery, facsimile, or mail. If an appeal is mailed to the Agency, then the appeal is perfected as of the postmark date on the envelope containing the appeal request unless good cause exists for the hearing officer to determine otherwise. If an appeal is delivered by hand or facsimile after 5 p.m., the date of request shall be the next day.

(4) Hearing--An informal, orderly, and readily available proceeding held before an impartial hearing officer. A party or hearing representative may present evidence to show that the Agency's determination should be reversed, affirmed, or modified.

(5) Hearing officer--An Agency employee designated to conduct impartial hearings and issue final administrative decisions.

(6) Hearing representative--Any individual authorized by a party to assist the party in presenting the party's appeal. A hearing representative may be legal counsel or another individual. Each party may have a hearing representative to assist in presenting the party's appeal.

(7) Party--The person or entity with the right to participate in a hearing authorized in applicable statute or rule.

§807.383.Information on Right of Appeal.

An issuer of a determination shall inform the career school applicant or any party directly aggrieved by the determination of the right to a hearing. The notice shall explain the procedure for an appeal, the party's right of appeal, and the right to be represented by others, including legal counsel.

§807.384.Request for Hearing.

(a) The party seeking review of a determination under this subchapter relating to career schools hearings shall request a hearing in writing within 15 days after receipt of the notice of determination.

(b) The request shall be addressed as provided in the determination and state the nature of the determination, the name and identifying information of the requesting party, and a request that the determination be reviewed.

(c) The request may include an explanation of why the determination should be changed; however, this is not a jurisdictional requirement.

§807.385.Setting of Hearing.

(a) Upon receipt of request for a hearing, the Agency shall promptly mail a notice of hearing that sets the hearing for a reasonable time and place within 30 days from receipt of the request for a hearing.

(b) The notice of hearing shall be in writing and include a:

(1) statement of the date, time, place, and nature of the hearing;

(2) statement of the legal authority under which the hearing is to be held; and

(3) short and plain statement of the issues to be considered during the hearing.

(c) The notice of hearing shall be issued at least 10 days before the date of the hearing unless a shorter period is permitted by statute.

(d) The hearing notice shall state whether the hearing shall be conducted by telephone or in-person. The hearing notice shall also include the location of an in-person hearing.

(e) Parties needing special accommodations, including a bilingual or sign language interpreter, may request such before the setting of the hearing, if possible, or as soon as practical.

§807.386.Hearing Officer Independence and Impartiality.

(a) A hearing officer presiding over a hearing shall have all powers necessary and appropriate to conduct a full, fair, and impartial hearing. Hearing officers shall remain independent and impartial in all matters regarding the handling of any issues during the pendency of a case and in issuing their written decisions.

(b) A hearing officer shall be disqualified if the hearing officer has a personal interest in the outcome of the appeal or if the hearing officer directly or indirectly participated in the determination on appeal. Any party may present facts to the Agency in support of a request to disqualify a hearing officer.

(c) The hearing officer may withdraw from a hearing to avoid the appearance of impropriety or partiality.

(d) Following any disqualification or withdrawal of a hearing officer, the Agency shall assign an alternate hearing officer to the case. The alternate hearing officer shall not be bound by any findings or conclusions made by the disqualified or withdrawn hearing officer.

§807.387.Hearing Procedures.

(a) The hearing shall be conducted in person in Austin, Texas, unless the parties agree to a telephonic hearing or request a different location.

(b) The hearing shall be conducted informally and in such a manner as to ascertain the substantial rights of the parties. All issues relevant to the appeal shall be considered and addressed, and may include:

(1) Presentation of Evidence. The parties to an appeal may present evidence that is material and relevant, as determined by the hearing officer. In conducting a hearing, the hearing officer shall actively develop the record on the relevant circumstances and facts to resolve all issues. To be considered as evidence in a decision, any document or physical evidence must be entered as an exhibit at the hearing.

(2) Examination of Parties and Witnesses. The hearing officer shall examine parties and any witnesses and shall allow cross-examination to the extent the hearing officer deems necessary to afford the parties due process.

(3) Additional Evidence. The hearing officer, with or without notice to any of the parties, may take additional evidence as deemed necessary, provided that a party shall be given an opportunity to rebut the evidence if it is to be used against the party's interest.

(4) Appropriate Hearing Behavior. All parties shall conduct themselves in an appropriate manner. The hearing officer may expel any individual or party who fails to correct behavior the hearing officer identifies as disruptive. After expulsion, the hearing officer may proceed with the hearing and render a decision.

(c) Records

(1) The hearing record shall include the audio recording of the proceeding and any other relevant evidence relied on by the hearing officer, including documents and other physical evidence entered as exhibits.

(2) The hearing record shall be maintained in accordance with federal and state law.

(3) Confidentiality of information contained in the hearing record shall be maintained in accordance with federal and state law.

§807.388.Postponements, Continuances, and Withdrawals.

(a) The hearing officer may grant a postponement of a hearing for good cause at a party's request.

(b) A continuance of a hearing may be ordered at the discretion of the hearing officer in order to consider additional, necessary evidence or for any other reason the hearing officer deems appropriate.

(c) A party may withdraw an appeal at any time prior to the issuance of the final decision.

§807.389.Evidence.

(a) Evidence Generally. Evidence, including hearsay evidence, shall be admitted if it is relevant and if in the judgment of the hearing officer it is the kind of evidence on which reasonably prudent persons are accustomed to rely in the conduct of their affairs. However, the hearing officer may exclude evidence if its probative value is outweighed by the danger of unfair prejudice, by confusion of the issues, or by reasonable concern for undue delay, waste of time, or needless presentation of cumulative evidence.

(b) Exchange of Exhibits. Any documentary evidence to be presented during a telephonic hearing shall be exchanged with all parties and a copy shall be provided to the hearing officer in advance of the hearing. Any documentary evidence to be presented at an in-person hearing shall be exchanged at the hearing.

(c) Stipulations. The parties, with the consent of the hearing officer, may agree in writing to relevant facts. The hearing officer may decide the appeal based on such stipulations or, at the hearing officer's discretion, may set the appeal for hearing and take such further evidence as the hearing officer deems necessary.

(d) Experts and Evaluations. If relevant and useful, testimony from an independent expert or a professional evaluation from a source satisfactory to the parties and the Agency may be ordered by hearing officers, on their own motion or at a party's request. Any such expert or evaluation shall be at the expense of one or more of the parties.

(e) Subpoenas.

(1) The hearing officer may issue subpoenas to compel the attendance of witnesses and the production of records. A subpoena may be issued either at the request of a party or on the hearing officer's own motion.

(2) A party requesting a subpoena shall state the nature of the information desired, including names of any witnesses and the records that the requestor feels are necessary for the proper presentation of the case.

(3) The request shall be granted only to the extent the records or the testimony of the requested witnesses appears to be relevant to the issues on appeal.

(4) A denial of a subpoena request shall be made in writing or on the record, stating the reasons for such denial.

§807.390.Ex Parte Communications.

(a) The hearing officer shall not participate in ex parte communications, directly or indirectly, in any matter in connection with any substantive issue, with any interested person or party. Likewise, no person shall attempt to engage in ex parte communications with the hearing officer on behalf of any interested person or party.

(b) If the hearing officer receives any such ex parte communication, the other parties shall be given an opportunity to review any such ex parte communication.

(c) Nothing shall prevent the hearing officer from communicating with parties or their representatives about routine matters such as requests for continuances or opportunities to inspect the file.

(d) The hearing officer may initiate communications with an Agency employee who has not participated in a hearing or any determination in the case for the limited purpose of using the special skills or knowledge of the Agency and its staff in evaluating the evidence.

§807.391.Change in Determination.

The issuer of the determination may change the determination any time before the hearing officer issues the decision. Despite the issuer changing the determination, the parties may proceed with the hearing.

§807.392.Hearing Decision.

(a) Following the conclusion of the hearing, the hearing officer shall promptly prepare a written decision on behalf of the Agency.

(b) The decision shall be based exclusively on the evidence of record in the hearing and on matters officially noticed in the hearing. The decision shall include:

(1) a list of the individuals who appeared at the hearing;

(2) the findings of fact and conclusions of law reached on the issues; and

(3) the affirmation, reversal, or modification of the determination.

(c) Unless a party files a timely motion for rehearing, the Agency may assume continuing jurisdiction to modify or correct a hearing decision until the expiration of 30 calendar days from the mailing date of the hearing decision.

§807.393.Motion for Reopening.

(a) If a party does not appear for a hearing, the party may request the reopening of the hearing within 30 calendar days from the date the decision is mailed.

(b) The motion for reopening shall be in writing and detail the reason for failing to appear at the hearing.

(c) The Agency may schedule a hearing on whether to grant the reopening.

(d) The motion may be granted if the hearing officer determines that the party has shown good cause for failing to appear at the hearing.

§807.394.Motion for Rehearing.

(a) A party has 30 calendar days from the date the decision is mailed to file a motion for rehearing. A rehearing shall be granted only for the presentation of new evidence.

(b) A motion for rehearing shall be in writing and allege the new evidence to be considered. The party shall show a compelling reason why this evidence was not presented at the hearing.

(c) If the hearing officer determines that the alleged, new evidence warrants a rehearing, a hearing shall be scheduled at a reasonable time and place.

(d) The hearing officer shall issue a written decision in response to a timely filed motion for rehearing.

(e) The Agency may assume continuing jurisdiction to modify, correct, or reform a decision until the expiration of 30 calendar days from the date of mailing of the hearing decision.

§807.395.Finality of Decision.

(a) The decision of the hearing officer is the final decision of the Agency after the expiration of 30 calendar days from the mailing date of the decision unless within that time:

(1) a request for reopening is filed with the Agency;

(2) a request for rehearing is filed with the Agency; or

(3) the Agency assumes continuing jurisdiction to modify or correct the decision.

(b) Any decision issued in response to a request for reopening or rehearing or a modification or correction issued by the Agency shall be final on the expiration of 30 calendar days from the mailing date of the decision, modification, or correction.

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 27, 2007.

TRD-200702701

Reagan Miller

Deputy Division Director, Workforce Policy and Service Delivery Branch

Texas Workforce Commission

Earliest possible date of adoption: August 12, 2007

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


Chapter 809. CHILD CARE SERVICES

The Texas Workforce Commission (Commission) proposes to amend the following section of Chapter 809 relating to Child Care Services:

Subchapter D. Parent Rights and Responsibilities, §809.74

The Commission proposes the repeal of the following subchapter to Chapter 809 relating to Child Care Services in its entirety:

Subchapter G. Appeal Procedures

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 rule change is to establish detailed and consistent procedures for complaints, hearings, and appeals related to workforce services administered by Local Workforce Development Boards (Boards). Texas Labor Code, §302.065, directs the Commission to integrate the administration of four federal block grant programs with the goal of streamlining the delivery of services provided in the local career development one-stops. The Commission expanded this integration to state-funded workforce services, including examining the existing complaints and appeals processes for workforce services administered by the Boards. An absence of unified and integrated rules on complaints, hearings, and appeals related to workforce services makes the existing rules difficult to understand or interpret consistently and works as a barrier to integrating workforce services.

To maintain uniformity and consistency across all Board-administered workforce services and to protect due process rights of Texas Workforce Center customers, in a separate but concurrent, rulemaking proposal, the Commission is proposing the repeal of Chapter 823, General Hearings rules, and is proposing new Chapter 823, Integrated Complaints, Hearings, and Appeals rules. New Chapter 823 requires Boards to establish local policies for filing complaints, to provide opportunities for informal resolutions, and to establish procedures for Board hearings and appeals.

The Commission has reviewed sections of Chapter 809 relating to complaints or grievances, local-level appeals, and state-level hearings. The Commission proposes to repeal these sections and incorporate similar processes related to complaints, hearings, and appeals in new Chapter 823.

PART II. EXPLANATION OF INDIVIDUAL PROVISIONS

(Note: Minor 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 D. PARENT RIGHTS AND RESPONSIBILITIES

The Commission proposes amendments to Subchapter D, as follows:

§809.74. Parent Appeal Rights

Under a separate but concurrent rulemaking proposal, the Commission is proposing new Chapter 823, Integrated Complaints, Hearings, and Appeals, which comprises the complaint, hearing, and appeal procedures for all Board-administered workforce services, including appeal procedures set forth in Subchapter G of this chapter. Therefore, references to "Subchapter G of this chapter" contained in §809.74(a), (c), (d), and (e) are removed and replaced by references to "Chapter 823 of this title."

SUBCHAPTER G. APPEAL PROCEDURES

The Commission proposes the repeal of Subchapter G, as follows:

Under a separate but concurrent, rulemaking proposal, the Commission is proposing new Chapter 823, Integrated Complaints, Hearings, and Appeals, which comprises the complaint, hearing, and appeal procedures for all Board-administered workforce services, including the information in the following sections.

§809.131. Board Review

Section 809.131 is repealed and the information is relocated in new Chapter 823.

§809.132. Appeals to the Commission

Section 809.132 is repealed and the information is relocated in new Chapter 823.

PART III. IMPACT STATEMENTS

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

There are no additional estimated costs to the state and 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 are no anticipated economic costs to persons required to comply with the rules.

There is no anticipated adverse economic impact on small or microbusinesses as a result of enforcing or administering the rules.

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.

Laurence M. Jones, Director, Workforce Development Division, has determined that, for each of the first five years the proposed rule amendments are in effect, the public benefit anticipated as a result of enforcing the proposed rules will be to provide a unified and streamlined process regarding the resolution of complaints, hearings, and appeals related to Board-administered workforce services. In addition, due process principles and other legal rights will be protected, program outcomes will be achieved more effectively, and workforce services will be further integrated.

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.

PART IV. COORDINATION ACTIVITIES

Comments on the proposed rules may be submitted to TWC Policy Comments, Policy and Development, 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 D. PARENT RIGHTS AND RESPONSIBILITIES

40 TAC §809.74

The rules are proposed under Texas Labor Code, §301.0015 and §302.002(d), which provide the Commission the authority to adopt, amend, or repeal such rules as it deems necessary for the effective administration of Agency services and activities and the Texas Human Resources Code, §44.002, regarding Administrative Rules.

The proposed rules will affect Texas Labor Code, Title 4, particularly Chapters 301 and 302, as well as Texas Government Code, Chapter 2308.

§809.74.Parent Appeal Rights.

(a) Unless otherwise stated in this section, a parent may request a hearing pursuant to Chapter 823 of this title, [ Subchapter G of this chapter (relating to Appeal Procedure) ] if the parent's eligibility or child's enrollment is denied, delayed, reduced, or terminated by the Board's child care contractor.

(b) A parent may have an individual represent him or her [ them ] during this process.

(c) A parent of a child in protective services may not appeal pursuant to Chapter 823 of this title [ Subchapter G of this chapter ], but shall follow the procedures established by DFPS.

(d) If the parent's eligibility or child's enrollment is denied, delayed, reduced, or terminated by a Choices caseworker, the parent may [ not ] appeal pursuant to Chapter 823 of this title. [ Subchapter G of this chapter, but may appeal following the procedures in Chapter 811 of this title. ]

(e) If the parent's eligibility or child's enrollment is denied, delayed, reduced, or terminated by an FSE&T caseworker, the parent may [ not ] appeal pursuant to Chapter 823 of this title. [ Subchapter G of this chapter, but may appeal following the procedures in Chapter 813 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 27, 2007.

TRD-200702702

Reagan Miller

Deputy Division Director, Workforce Policy and Service Delivery Branch

Texas Workforce Commission

Earliest possible date of adoption: August 12, 2007

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


Subchapter G. APPEAL PROCEDURES

40 TAC §809.131, §809.132

(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 repeals are proposed under Texas Labor Code. §301.0015 and §302.002(d), which provide the Commission the authority to adopt, amend, or repeal such rules as it deems necessary for the effective administration of Agency services and activities, and the Texas Human Resources Code, §44.002, regarding Administrative Rules.

The repeals affect Texas Labor Code, Title 4, particularly Chapters 301 and 302, as well as Texas Government Code, Chapter 2308.

§809.131.Board Review.

§809.132.Appeals to the Commission.

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 27, 2007.

TRD-200702703

Reagan Miller

Deputy Division Director, Workforce Policy and Service Delivery Branch

Texas Workforce Commission

Earliest possible date of adoption: August 12, 2007

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


Chapter 811. CHOICES

Subchapter F. APPEALS

40 TAC §§811.71 - 811.73

(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 Texas Workforce Commission (Commission) proposes the repeal of the following subchapter of Chapter 811, relating to Choices, in its entirety:

Subchapter F, Appeals, §§811.71 - 811.73

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 rule change is to establish detailed and consistent procedures for complaints, hearings, and appeals related to workforce services administered by Local Workforce Development Boards (Boards). Texas Labor Code §302.065 requires that the Commission integrate the administration of multiple federal block grant programs and identify policy changes that support this integration. The Commission expanded this integration to state-funded workforce services, including examining the existing complaints and appeals processes for workforce services administered by the Boards. An absence of unified and integrated rules on complaints, hearings, and appeals related to workforce services makes the existing rules difficult to understand or interpret consistently and works as a barrier to integrating workforce services.

To maintain uniformity and consistency across all Board-administered workforce services and to protect due process rights of Texas Workforce Center customers, in a separate, but concurrent, rulemaking, the Commission is proposing the repeal of Chapter 823, General Hearings rules, and is proposing new Chapter 823, Integrated Complaints, Hearings, and Appeals rules. New Chapter 823 requires Boards to establish local policies related to filing complaints, to provide opportunities for informal resolutions, and to establish procedures for Board hearings and appeals.

The Commission has reviewed sections of Chapter 811 relating to complaints or grievances, local-level appeals, and state-level hearings. The Commission proposes to repeal these sections and incorporate similar processes related to complaints, hearings, and appeals in new Chapter 823.

PART II. EXPLANATION OF INDIVIDUAL PROVISIONS

SUBCHAPTER F. APPEALS

The Commission proposes the repeal of Subchapter F, as follows:

Under a separate, but concurrent, rulemaking proposal, the Commission is proposing new Chapter 823, Integrated Complaints, Hearings, and Appeals, which comprises the complaint, hearing, and appeal procedures for all Board-administered workforce services, including the information in the following sections.

§811.71. Board Review

Section 811.71 is repealed and the information is relocated in new Chapter 823.

§811.72. Appeals to the Commission

Section 811.72 is repealed and the information is relocated in new Chapter 823.

§811.73. Appeals to the Texas Department of Human Services (TDHS)

Section 811.73 is repealed and the information is relocated in new Chapter 823.

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 additional estimated costs to the state and 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 are no anticipated economic costs to persons required to comply with the rules.

There is no anticipated adverse economic impact on small or microbusinesses as a result of enforcing or administering the rules.

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.

Laurence M. Jones, Director, Workforce Development Division, has determined that for each 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 provide a unified and streamlined process regarding the resolution of complaints, hearings, and appeals related to Board-administered services. In addition, due process principles and other legal rights will be protected, program outcomes will be achieved more effectively, and workforce services will be further integrated.

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.

PART IV. COORDINATION ACTIVITIES

Comments on the proposed rules may be submitted to TWC Policy Comments, Policy and Development, 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 .

The repeals 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, and Texas Human Resources Code, Chapters 31 and 34.

The proposed repeals affect Texas Labor Code, Title 4, and Texas Human Resources Code, Chapters 31 and 34.

§811.71.Board Review.

§811.72.Appeals to the Agency.

§811.73.Appeals to the Texas Department of Human Services (TDHS).

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 27, 2007.

TRD-200702705

Reagan Miller

Deputy Division Director, Workforce Policy and Service Delivery Branch

Texas Workforce Commission

Earliest possible date of adoption: August 12, 2007

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


Chapter 813. FOOD STAMP EMPLOYMENT AND TRAINING

Subchapter F. COMPLAINTS AND APPEALS

40 TAC §813.51, §813.52

(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 Texas Workforce Commission (Commission) proposes the repeal of the following sections of Chapter 813 relating to Food Stamp Employment and Training:

Subchapter F, Complaints and Appeals, §813.51 and §813.52

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 rule change is to establish detailed and consistent procedures for complaints, hearings, and appeals related to workforce services administered by Local Workforce Development Boards (Boards). Texas Labor Code §302.065 requires that the Commission integrate the administration of multiple federal block grant programs and identify policy changes that support this integration. The Commission expanded this integration to state-funded workforce services, including examining the existing complaints and appeals processes for workforce services administered by the Boards. An absence of unified and integrated rules on complaints, hearings, and appeals related to workforce services makes the existing rules difficult to understand or interpret consistently and works as a barrier to integrating workforce services.

To maintain uniformity and consistency across all Board-administered workforce services and to protect due process rights of Texas Workforce Center customers, in a separate, but concurrent, rulemaking proposal, the Commission is proposing the repeal of Chapter 823, General Hearings rules, and is proposing new Chapter 823, Integrated Complaints, Hearings, and Appeals rules. New Chapter 823 requires Boards to establish local policies for filing complaints, to provide opportunities for informal resolutions, and to establish procedures for Board hearings and appeals.

The Commission has reviewed sections of Chapter 813 relating to complaints or grievances, local-level appeals, and state-level hearings. The Commission proposes to repeal these sections and incorporate similar processes related to complaints, hearings, and appeals in new Chapter 823.

PART II. EXPLANATION OF INDIVIDUAL PROVISIONS

SUBCHAPTER F. COMPLAINTS AND APPEALS

The Commission proposes amendments to Subchapter F, as follows:

Under a separate, but concurrent, rulemaking proposal, the Commission is proposing new Chapter 823, Integrated Complaints, Hearings, and Appeals, which comprises the complaint, hearing, and appeal procedures for all Board-administered workforce services, including the information in the following sections.

§813.51. Appeals of Decisions Made on Food Stamp Applications and Benefits

Section 813.51 is repealed and the information is relocated in new Chapter 823.

§813.52. Appeals of E&T Activities and Support Services Decisions

Section 813.52 is repealed and the information is relocated in new Chapter 823.

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 additional estimated costs to the state and 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 are no anticipated economic costs to persons required to comply with the rules.

There is no anticipated adverse economic impact on small or microbusinesses as a result of enforcing or administering the rules.

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.

Laurence M. Jones, 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 provide a unified and streamlined process regarding the resolution of complaints, hearings, and appeals related to Board-administered workforce services. In addition, due process principles and other legal rights will be protected, program outcomes will be achieved more effectively, and workforce services will be further integrated.

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.

PART IV. COORDINATION ACTIVITIES

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 .

The repeals 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, and Texas Human Resources Code §44.002, regarding Administrative Rules.

The proposed repeals affect Texas Labor Code, Title 4, particularly Chapters 301 and 302, as well as Texas Government Code, Chapter 2308.

§813.51.Appeals of Decisions Made on Food Stamp Applications and Benefits.

§813.52.Appeals of E&T Activities and Support Services Decisions.

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 27, 2007.

TRD-200702706

Reagan Miller

Deputy Division Director, Workforce Policy and Service Delivery Branch

Texas Workforce Commission

Earliest possible date of adoption: August 12, 2007

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


Chapter 823. GENERAL HEARINGS

The Texas Workforce Commission (Commission) proposes the repeal of Chapter 823, relating to General Hearings, §§823.1 - 823.3, 823.11 - 823.15, 823.31 - 823.34, and 823.41 - 823.44 in its entirety.

The Commission proposes new Chapter 823, relating to Integrated Complaints, Hearings, and Appeals, as follows:

Subchapter A. General Provisions, §§823.1 - 823.4

Subchapter B. Board Complaint and Appeal Procedures, §§823.10 - 823.14

Subchapter C. Agency Complaint and Appeal Procedures, §§823.20 - 823.27

Subchapter D. Agency-Level Decisions, Reopenings, and Rehearings, §§823.30 - 823.33

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 repeal of Chapter 823 and proposed new Chapter 823 is to:

--establish uniform procedures and time frames;

--clarify additional Local Workforce Development Board (Board) responsibilities relating to appeals of Board decisions;

--simplify rule language and definitions;

--remove obsolete provisions; and

--promote operational efficiencies.

Texas Government Code §2001.039 requires that each state agency review and consider for readoption each rule adopted by that agency every four years. The Commission's General Hearings Rules, Chapter 823, were reviewed in 2006 with the goals of:

--promoting integrated workforce services;

--simplifying rule language;

--streamlining Board appeals processes and responsibilities;

--updating terminology and definitions; and

--removing obsolete provisions.

Texas Labor Code §302.065 directs the Commission to integrate the administration of four federal block grant programs with the goal of streamlining the delivery of services provided in the local career development one-stops. These programs include child care, Temporary Assistance for Needy Families (TANF), Food Stamp Employment and Training (FSE&T), and Workforce Investment Act (WIA). The Commission expanded this integration to include all Board-administered workforce services. Furthermore, the law directs the Commission to conduct a review of its programs, rules, policies, procedures, and organizational structure to identify specific barriers to the integration. The Commission has identified policy changes that support this integration by examining the existing complaints and appeals processes for workforce services administered by the Boards. The absence of unified and integrated rules on complaints, hearings, and appeals related to workforce services makes the existing rules difficult to understand or to interpret consistently and works as a barrier to integrating workforce services.

Moreover, the existing rules do not fully reinforce the principles of local flexibility and, instead, shift appeals processes from the local to the state level. The Commission has identified policy changes that enhance local flexibility by vesting local Boards with responsibility to provide opportunity for informal resolution, as well as conducting hearings, as necessary. These modifications will primarily affect childcare complaints, as most Boards currently address most other complaints under WIA.

The Commission has reviewed the following rules governing complaints, hearings, and appeals for workforce services administered by the Boards:

--Child Care Services Rules: 40 TAC Chapter 809, Subchapters D and G

--Choices Rules: 40 TAC Chapter 811, Subchapter F

--Food Stamp Employment and Training Rules: 40 TAC Chapter 813, Subchapter F

--Workforce Investment Act Rules: 40 TAC Chapter 841, Subchapters C, D, and E

While the chapters are similar in scope, each one established different procedures for individuals who wish to file a complaint, with inconsistent instructions regarding filing complaints, opportunities for informal reviews, and the right to file an appeal. The lack of continuity among the chapters complicates co-enrollment and service integration. In addition, the timelines for these procedures are inconsistent across the chapters.

Additionally, the Project Reintegration of Offenders (Project RIO) rules, 40 TAC Chapter 847, do not address Board review or notice of the right to file a complaint. Therefore, the new Chapter 823 rules include processes for Board hearings and notices of the right to file a complaint under the Project RIO rules.

New Chapter 823 follows the complaints and appeals process established in WIA regulations, 20 C.F.R. §667.600 and §667.640, which provide federally mandated procedures and time frames for complaints and appeals. The WIA procedures in Chapter 841 of this title are the only rules that have federal requirements; other Board-administered workforce services are not federally guided, but instead are governed by Commission rules.

To maintain uniformity and consistency across all Board-administered workforce services and to protect due process rights, the new Chapter 823 rules require Boards to establish local policy to ensure that Texas Workforce Center customers are notified, in writing, of any adverse actions and are provided with information on appeal rights and the right to file a complaint regarding their workforce services. Boards that do not advise Texas Workforce Centers of the requirement to inform customers of their right to file a complaint or to appeal the written notice of an adverse action risk violating due process principles, which require notice of these rights.

This chapter establishes a dispute resolution process that can be started in one of two ways. The first allows a person to file an appeal following a written determination issued by a Board or its designee. If a written determination has been issued, an appeal must be filed with the Board within 14 calendar days. The other method of initiating the process is for a person to complain of alleged violations of any law, rule, or regulation relating to any federal or state-funded workforce service. If no written determination is issued regarding an adverse action or perceived violation, a person may file a complaint within 180 days of the adverse action or violation.

Under the processes set forth in this chapter, following the receipt of an appeal or a complaint at the Board level, the Board will provide an opportunity for informal resolution. In the informal resolution process, Boards will have the flexibility to utilize such diverse procedures as informal meetings with case managers, reviews of case files, conference calls, interviews, or written explanations, as appropriate for the situation. While this may represent additional responsibilities for some Boards, it is the intent and expectation of the Commission that the majority of appeals and complaints will be resolved informally in this manner, without the necessity of holding a hearing.

However, if no successful informal resolution can be reached, the Board shall hold a hearing and issue a written decision that includes information about filing an appeal with the Agency. If a Board's written decision is appealed to the Agency, an Agency hearing officer will conduct a hearing and issue a decision on behalf of the Agency. Although requiring Boards to issue written decisions may result in supplementary efforts by Boards initially, the Commission expects greater customer satisfaction at the local level and potentially system-wide savings as formal proceedings at the state level are minimized.

There also may be circumstances in which an appeal or complaint may be filed directly with the Agency. In such a case, the Agency has the discretion to refer the appeal or complaint back to the Board, if appropriate. If an appeal is based on a determination issued by the Agency itself, however, or if a complaint is about the statewide provision of services rather than a local service issue, the Agency will provide an opportunity for informal resolution and a hearing, following the same kind of procedure as the Boards.

To assist Boards with the implementation of these rules, the Commission intends to provide training for Board personnel and support for development of Board processes. This technical assistance may include training on informal resolution procedures, hearing officer training, sample forms for Boards to use for complaints or determinations, and other assistance as needed to enable Boards to develop their own procedures.

The Commission retains the requirement that the Agency hearing officer shall be the final decision maker for state-level appeals. Federal WIA regulations require the Agency to complete its decision within 60 days of receipt of an appeal or complaint, leaving little time for an appeal process within the Agency. Therefore, pursuant to 20 C.F.R. §667.610, if a party wishes to appeal a decision of an Agency hearing officer under the federal WIA regulations, the appeal must be filed with the U.S. Department of Labor (DOL).

The Commission maintains separate procedures to resolve complaints concerning the basic labor exchange, as those procedures and timelines are dictated by 20 C.F.R. Part 658, Subpart E, §§400 - 418 and federal Employment Service law. Basic labor exchange complaints include those related to:

--violations of the terms and conditions of a job order;

--noncriminal complaints alleging acts or omissions by Texas Workforce Center staff; and

--complaints affecting migrant and seasonal farmworkers (MSFWs).

The Commission also maintains separate procedures for hearings and appeals under Chapter 807, relating to Career Schools and Colleges, and under Chapter 800, the General Administration rules relating to Board Sanctions. Hearings and appeals for Agency-administered programs are determined separately and distinctly from Board-administered workforce services. The repeal of Chapter 823 affects the hearings and appeals processes for each of these chapters; therefore, in separate, but concurrent, rulemaking proposals, certain sections of repealed Chapter 823 have been modified and incorporated into Chapter 800 and Chapter 807.

PART II. EXPLANATION OF INDIVIDUAL PROVISIONS

SUBCHAPTER A. GENERAL PROVISIONS

The Commission proposes new Subchapter A, General Provisions, as follows:

Subchapter A contains the general provisions of the Integrated Complaints, Hearings, and Appeals rules, which include the short title and purpose; definitions of terms used throughout Chapter 823; and provisions related to appeal representation.

Subchapter A also adds a detailed process related to deadlines after a determination is mailed to each party to a complaint or appeal. This provision applies to Boards, their designees, and the Agency.

§823.1. Short Title and Purpose

Section 823.1(a) states that Chapter 823 provides for an appeals process to the extent authorized by federal and state law, by rules administered by the Commission. The purpose remains the same as the purpose stated in repealed Chapter 823.

Section 823.1(b) specifically lists the types of complaints or determinations that are covered by Chapter 823. These pertain only to federal- or state-funded workforce services administered by the Agency or the Boards. These services include child care; TANF Choices; FSE&T Project RIO; WIA Adult, Dislocated Worker, and Youth; and Eligible Training Providers receiving WIA funds or other funds for training services.

Section 823.1(c)(1) - (7) lists determinations or complaints that are not covered under new Chapter 823, including:

(1) Across-the-board reductions in services, benefits, or assistance to a class of recipients.

(2) Matters governed by hearings procedures otherwise provided for in this title. This includes Board sanction hearings under Chapter 800, Subchapter E; hearings resulting from Agency monitoring activities under Chapter 800, Subchapter H; hearings regarding alleged breach of contract under Chapter 800, Subchapter K; career school cease and desist order hearings under Chapter 807, Subchapter S; career school licensing hearings under proposed Chapter 807, Subchapter T; Unemployment Insurance (UI) hearings under Chapter 815; child labor hearings under Chapters 815 and 817; Fair Housing Act hearings under Chapter 819; wage claim hearings under Chapters 815 and 821; and hearings regarding Trade Act activities or services under Chapter 815 and Chapter 849, Subchapter E.

(3) Alleged violations of nondiscrimination and equal opportunity requirements. Complaints regarding alleged violations of the nondiscrimination and equal opportunity requirements of WIA are handled by the Equal Opportunity Compliance Sectionof the Commission under Chapter 841, Subchapter F.

(4) Denial of benefits as it relates to mandatory work requirements for individuals receiving Choices and FSE&T services administered through the Texas Health and Human Services Commission (HHSC).

(5) Matters governing job service-related complaints as referenced in 20 C.F.R. Part 658, Subpart E, §§400 - 418 and federal Employment Service law.

(6) Services provided by the Agency pursuant to Texas Labor Code §301.023, Complaints Against the Commission.

(7) Alleged criminal violations of any services referenced in §823.1(b).

§823.2. Definitions

Section 823.2 sets forth the definitions for terms used throughout Chapter 823. The section incorporates definitions from repealed Chapter 823, and adds new terms and definitions.

Section 823.2(1) defines "Adverse action" as any denial or reduction of benefits or services to a party. This definition applies to individuals who are adversely affected by the type or level of services received from a Board or statewide One-Stop Service Delivery Network, including those individuals displaced from current employment by Texas Workforce Center customers.

Section 823.2(2) defines "Agency decision" as a written finding issued by an Agency hearing officer following a hearing before that hearing officer. The intent is to distinguish in rule, when necessary, the difference between a Board decision and an Agency decision.

Section 823.2(3) defines "Appeal" as a written request for a review filed with the Board or Agency by a person in response to a determination or decision. The intent of this definition is to be consistent with other Commission rules that govern hearings and appeals.

Section 823.2(4) defines "Board decision" as a written finding issued by a Board following a hearing by a Board hearing officer. The intent is to distinguish in rule, when necessary, the difference between a Board decision and an Agency decision.

Section 823.2(5) defines "Complaint" as a written statement alleging a violation of any law, regulation, or rule relating to any federal- or state-funded workforce service. This definition is consistent with other definitions of complaint in this title. Boards also may receive objections regarding direct provision of workforce-related services that do not allege a violation of law or regulations, but rather concern dissatisfaction with the behavior of Board or contractor employees, or other matters not concerning the services themselves. These objections are handled through informal resolutions at the Board and contractor levels; they are not covered under this chapter and are not appealable to the Agency.

Section 823.2(6) defines "Determination" as a written statement issued by a Board, its designee, or the Agency relating to an adverse action, or to a provider or a contractor relating to denial or termination of eligibility, under programs administered by the Agency or Boards listed in §823.1(b).

Section 823.2(7) defines "Hearing officer" as an impartial individual designated by either the Board or the Agency to conduct hearings and issue administrative decisions. This new definition provides for the designation of hearing officers by both the Board and the Agency and is similar to the definition in repealed Chapter 823. A hearing officer need not be an attorney.

Section 823.2(8) defines "Informal resolution" as any procedure that results in an agreed final settlement between all parties to a complaint or an appeal. The Commission adds rules in new Subchapters B and C requiring the Boards and the Agency to provide an opportunity for informal resolution to resolve disputes resulting from either a complaint or an appeal to a determination.

Section 823.2(9) defines "Party" as a person who files a complaint or who appeals a determination, or the entity against which the complaint is filed or that issued the determination. This definition is found in repealed Chapter 823 but has been modified to reflect other changes in new Chapter 823.

§823.3. Agency and Board Timeliness

Section 823.3 provides an efficient context, based on established principles of due process, for adjudicating late appeals and holding some late appeals timely. The principles are drawn from Chapter 815 of this title, related to UI, case law, and experience.

Section 823.3 also adds a detailed process related to deadlines after a determination is mailed to a party. This provision applies to Boards, their designees, and the Agency.

Section 823.3(a) states that a properly addressed determination or decision is final for all purposes unless the party to whom it is mailed files an appeal no later than the fourteenth calendar day after the mailing date.

Section 823.3(b) states that each party to a complaint or an appeal must promptly notify, in writing, the Board, Board's designee, or the Agency with which the complaint or appeal was filed of any change of mailing address. Determinations and decisions shall be mailed to this address.

Section 823.3(b)(1) states that a copy of the determination or decision must be mailed to a properly designated party representative in order for it to become final.

Section 823.3(b)(2) states that the Board or Agency is responsible for making an address change only if the Board or Agency is specifically directed by the party to mail subsequent correspondence to the new address.

Section 823.3(b)(3) states that if the Board, Board's designee, or Agency addresses a document incorrectly, but the party receives the document, the time frame for filing an appeal shall begin as of the actual date of receipt by the party, whether or not the party receives the document within the appeal time frame set forth in §823.3(a). However, this requirement does not apply if the party fails to provide a current address or provides an incorrect address.

Section 823.3(c) states that a determination or decision mailed to a party shall be presumed to have been delivered if the document was mailed as specified in §823.3(b).

Section 823.3(c)(1) states in subparagraphs (A) and (B) that the determination or decision shall not be presumed to have been delivered:

(A) if there is tangible evidence of nondelivery, such as being returned to sender by the U.S. Postal Service; or

(B) if credible and persuasive evidence is submitted to establish nondelivery or delayed delivery to the proper address.

Section 823.3(c)(2) states that if a party provides the Board or Agency with an incorrect mailing address, a mailing to that address must be considered a proper mailing, even if there is proof that the party never received the document.

Section 823.3(d) states that a complaint or an appeal must be in writing. Complaints or appeals may be filed electronically only if filed in a form approved by the Agency in writing.

Section 823.3(d)(1) - (7) specifies that the filing date for a complaint or an appeal is:

(1) the postmarked date or the postal meter date (where there is only one or the other);

(2) the postmarked date, if there is both a postmarked date and a postal meter date;

(3) the date the document was delivered to a common carrier, which is equivalent to the postmarked date;

(4) three business days before receipt by the Board or Agency, if the document was received in an envelope bearing no legible postmark, postal meter date, or date of delivery by a common carrier;

(5) the date of the document itself, if the document date is fewer than three days earlier than the date of receipt and the document was received in an envelope bearing no legible postmark, postal meter date, or date of delivery by a common carrier;

(6) the date of the document itself, if the mailing envelope containing the complaint or appeal is lost after delivery to the Board or Agency. If the document is undated, the filing date must be deemed to be three business days before receipt by the Board or Agency; or

(7) the date of receipt by the Board or Agency, if the document was filed by fax.

Section 823.3(e) states that credible and persuasive testimony under oath, subject to cross-examination, may establish a filing date that is earlier than the dates established under §823.3(d). A party may be allowed to establish a filing date earlier than a postal meter date or the date of the document itself only upon a showing of extremely credible and persuasive evidence. Likewise, when a party alleges that a complaint or appeal has been filed that the Board or Agency has never received, the party must present extremely credible and persuasive evidence to support the allegation.

Section 823.3(f)(1) and (2) states that a decision or determination shall not be deemed final if a party shows that a representative of the Board, Board's designee, or Agency has given misleading information on appeal rights to the party. The party shall specifically establish:

(1) how the party was misled; or

(2) what misleading information the party was given, and, if possible, by whom the party was misled.

Section 823.3(g) states that there is no good cause exception to the timeliness rules.

§823.4. Representation

Section 823.4 states that each party may authorize a hearing representative to assist in presenting a complaint or an appeal on behalf of the party under this chapter. The Agency or Board may require authorization to be in writing. On behalf of the party, the representative may exercise any of a party's rights under this chapter. Information from repealed Chapter 823 relating to Information on Right of Appeal is incorporated throughout new Chapter 823, where appropriate.

SUBCHAPTER B. BOARD COMPLAINT AND APPEAL PROCEDURES

The Commission proposes new Subchapter B, Board Complaint and Appeal Procedures, as follows:

Subchapter B contains Board-level complaint and appeal procedures related to all workforce services administered by the Boards.

The WIA regulations require that procedures be developed related to processes dealing with complaints, appeals, and hearings at both the local level and the state level. In addition, WIA also provides that eligible training providers denied WIA funding for training services be given the right to appeal the denial to the Board or the Agency. These procedures are currently set forth in Chapter 841 of this title. Under a separate, but concurrent, rulemaking proposal, the Commission proposes to repeal the Chapter 841 rules related to local and state appeals; local-level complaint procedures; and state-level hearing procedures. The repealed Chapter 841 sections have been incorporated in new Chapter 823. This new provision related to processes dealing with complaints, appeals, and hearings applies to the workforce services administered by the Agency or Board as listed in §823.1(b).

Subchapter B includes a new provision related to informal resolution. Once a complaint has been filed, an opportunity for informal resolution will be offered by the Board or its designee and the Agency. This provision is currently located in Chapter 841 of this title relating to complaints filed with the Board; however, there is no informal resolution provision offered by the Agency. New Chapter 823 allows the Boards and the Agency to resolve customers' issues in an informal manner in advance of a Board or Agency hearing. Under a separate, but concurrent, rulemaking proposal, the Commission proposes to repeal the Chapter 841 rules related to local-level informal resolution. New Chapter 823 modifies and incorporates these repealed Chapter 841 rules. The informal resolution provision applies to workforce services administered by the Boards or the Agency as listed in §823.1(b).

Subchapter B also adds a new provision that incorporates similar information related to determinations found throughout repealed Chapter 823. A determination is provided to any person affected by a Board or Board contractor's adverse action. Boards will be required to establish policies to ensure Texas Workforce Center customers receive a written determination notifying them of any adverse actions and to provide these customers with information on complaints and appeal rights. The intent of the Commission is to ensure the protection of the due process rights of Texas Workforce Center customers.

Subchapter B includes a new provision related to Board hearings. Board hearings or "Board reviews" are addressed in Chapters 809, 811, and 841. The sections in each of these chapters related to Board reviews are proposed for repeal under separate, but concurrent, rulemaking proposals. New Chapter 823 contains a single process for Board hearings and provides specific and consistent guidance for Boards to conduct hearings when a customer or provider appeals a determination.

§823.10. Board-Level Complaints

Section 823.10 contains specific responsibilities regarding filing complaints with a Board.

Section 823.10(a)(1) - (3) identifies persons who may file a complaint, including:

(1) Texas Workforce Center customers. These are individuals who have applied for or are eligible to receive federal- and state-funded workforce services administered by the Agency or Boards listed in §823.1(b).

(2) other interested persons affected by the One-Stop Service Delivery Network, including subrecipients. These persons may include child care or other service providers that have received a determination issued by a Board.

(3) previously employed individuals who believe they were displaced by a Texas Workforce Center customer participating in work-based services such as subsidized employment, work experience, or workfare. This subparagraph complies with the nondisplacement rules required by several federal agencies.

The U.S. Department of Health and Human Services (DHHS) regulations at 45 C.F.R. §261.70 require that safeguards be in place to ensure that TANF individuals do not displace other workers. In addition, states must establish and maintain procedures to resolve complaints of alleged violations of the displacement rule.

DOL regulations at 20 C.F.R. §667.270(a) require that safeguards be in place to ensure that participants in WIA employment and training activities do not displace other employees. Both regular employees and program participants may file a complaint.

The U.S. Department of Agriculture (USDA), Food and Nutrition Service (FNS) requires states to have a nondisplacement rule. The statute at 7 C.F.R. §273.7(m)(6)(i)(H) states that agencies must not place an FSE&T workfare participant in a work position that has the effect of replacing or preventing the employment of an individual not participating in the workfare program. In addition, 7 C.F.R. §273.7(e)(1)(iv)(A) and (B) states that agencies must not place FSE&T individuals participating in workfare or work experience in an employment and training activity that has the effect of replacing the employment of an individual not participating in the employment and training experience program. The regulations go on to state that employers must provide the same benefits and working conditions that are provided at the job site to employees performing comparable work for comparable hours. Although FNS does not require states to establish procedures to resolve complaints alleging violations of the displacement rule, the Commission includes the FNS displacement rule as part of service integration for workforce services.

Section 823.10(b) states that a complaint is required to be in writing and to be filed within 180 days of the alleged violation. This requirement, located in §841.63, Time Limitations at Local Level, which is concurrently proposed for repeal, is modified and incorporated in new Chapter 823.

Section 823.10(c) requires the complaint to contain the party's name, current mailing address, and a brief statement of the alleged violation identifying the facts on which the complaint is based. Portions of this requirement are found in §841.62, Grievance Filing Procedures at the Local Level, which is concurrently proposed for repeal. The requirement is modified and incorporated in new Chapter 823.

Section 823.10(d)(1) - (4) requires Boards to ensure that information about complaint procedures is provided to individuals, eligible training providers, and subrecipients. Information must be presented in a manner that is easily understood by the affected individuals, including youth, individuals with disabilities, and individuals with limited English proficiency, and must be:

(1) posted in a conspicuous public location at each Texas Workforce Center;

(2) provided in writing to any customer;

(3) made available in writing to any individual upon request; and

(4) placed in each Texas Workforce Center customer's file.

This provision follows federal WIA requirements set forth in §841.64, LWDB Responsibilities, which is concurrently proposed for repeal, and is modified and incorporated in new Chapter 823.

§823.11. Determinations

Section 823.11 relates to Boards and their designees issuing determinations regarding actions that affect the type and level of workforce services provided. This section includes the information required when issuing a determination to training providers found by the Boards to be ineligible to receive WIA funding for training services. Additionally, this section retains provisions from §841.48, Local Appeals, concurrently proposed for repeal, which requires that a written decision on an appeal be provided to an eligible training provider whose eligibility has been terminated.

Section 823.11(a) requires that a Board or its designee must promptly issue a written determination regarding any action adversely affecting the type and level of services to any person directly affected. The intent of the Commission is to ensure the protection of due process and other legal rights of Texas Workforce Center customers and other persons.

Section 823.11(b)(1) - (6) requires that the determination include the following information:

(1) A brief statement of the adverse action;

(2) The mailing date of the determination;

(3) An explanation of the individual's right to an appeal;

(4) The procedures for filing an appeal to the Board, including applicable time frames as required in §823.3;

(5) The right to have a hearing representative, including legal counsel; and

(6) The address or fax number to which the appeal must be sent.

This subsection incorporates similar provisions related to determinations found throughout repealed Chapter 823.

Section 823.11(c)(1) - (3) requires Boards to allow providers of training services the opportunity to appeal a determination related to the:

(1) denial of eligibility as a training provider under WIA §122(b), §122(c), or §122(e);

(2) termination of eligibility as a training provider or other action under WIA §122(f); or

(3) denial of eligibility as a training provider of on-the-job or customized training by the operator of a Texas Workforce Center under WIA §122(h).

This section retains certain provisions from §841.48, Local Appeals, which is concurrently proposed for repeal. In addition, this provision references the WIA requirements at 20 C.F.R. §667.640(b) relating to "denial or termination of eligibility as a training provider." States are required to provide an opportunity to appeal a denial or termination of eligibility by Boards.

Section 823.11(d) states that a person who receives a determination from a Board or a Board's designee may file an appeal with the Board requesting a review of the determination. The appeal must be submitted in writing and filed within 14 calendar days of the mailing date of the determination. The appeal must include the party's proper mailing address. This provision is located in the Commission's Child Care Services, Choices, and WIA rules in §809.131 and §809.132; §§811.71 - 811.73; and §§841.48, 841.49, 841.61 - 841.69, 841.91 - 841.93, 841.95, and 841.96, respectively. These sections are proposed for repeal, and one single uniform procedure for appealing a determination is included in new Chapter 823.

§823.12. Board Informal Resolution Procedure

Section 823.12 identifies the specific responsibilities of a Board to conduct informal resolution. This new provision also includes recommendations on how to conduct informal resolution.

Section 823.12(a) states that a Board shall provide the opportunity for informal resolution of a complaint or appeal. This provision allows Boards or their designees the opportunity to resolve customers' issues in an informal manner in lieu of a Board hearing. This subsection follows federal WIA requirements set forth in §841.65, Local Level Informal Conference Procedure, which is concurrently proposed for repeal. This information is modified and incorporated in new Chapter 823.

Section 823.12(b)(1) - (5) provides recommendations on how informal resolution may be conducted, including but not limited to:

(1) informal meetings with case managers or their supervisors;

(2) second reviews of the case file;

(3) telephone calls or conference calls to the affected parties;

(4) in-person interviews with all affected parties; or

(5) written explanations or summaries of the laws or regulations involved in the complaint.

This provision allows Boards or their designees to determine the most expeditious and practical method of resolving complaints or appeals in an informal manner, thereby possibly precluding the necessity of a Board hearing.

§823.13. Board Hearings

Section 823.13 provides the requirements for Board hearings for resolving complaints or appeals filed from a determination. The provisions in this section are retained, with modifications, from certain rules in Chapters 809, 811, 813, and 841 of this title, which are concurrently proposed for repeal.

Section 823.13(a) states that if the parties reach a final agreement through informal resolution, no hearing shall be held. It is not necessary for a complaint or appeal to proceed to a Board hearing if all parties reach an agreement through the informal resolution procedure.

Section 823.13(b) requires Boards to provide an opportunity for a hearing to resolve an appeal or complaint, if not succesfully resolved through the informal resolution procedure. This provision is found in §841.66, Local Level Hearing Procedure, which is proposed for repeal. The language is modified and included in new Chapter 823.

Section 823.13(c) requires Boards to complete either an agreement resulting from informal resolution or a hearing and Board decision within 60 calendar days of the original filing of an appeal or complaint. This follows federal WIA requirements, set forth in §841.66, Local Level Hearing Procedure, which is concurrently proposed for repeal. The language is modified and incorporated in new Chapter 823.

Section 823.13(d) requires Boards to provide a process that allows an individual alleging a labor standards violation to submit a complaint through a binding arbitration procedure. Examples of labor standards violations might include infringement on the right to collective bargaining, pay disputes, employment discrimination, or disputes as to employee benefits. Most collective bargaining agreements have specific provisions covering such violations and specific grievance procedures to address them. These procedures frequently include binding arbitration under the Federal Arbitration Act (Title 9, U.S.C., §§1 - 16) in which both parties agree to submit the dispute to a neutral arbitrator. The arbitrator's decision is final and binding upon both parties. This section follows federal WIA requirements to ensure that arbitration rights under collective bargaining agreements are enforced. In such a case, the Board may be required to follow the provisions of the applicable collective bargaining agreement with respect to its arbitration procedure.

Section 823.13(e) states that within 60 calendar days of the filing of the appeal or complaint, the Board shall send the parties a decision setting forth the results of the Board hearing. This decision shall be issued by a Board hearing officer, shall include findings of fact and conclusions of law, and shall provide information about appeal rights. This requirement follows federal WIA requirements and is located in §841.66, Local Level Hearing Procedure, which is concurrently proposed for repeal. This language is modified and incorporated in new Chapter 823.

Section 823.13(f) provides that a party may file an appeal with the Agency if a Board decision is not mailed within the 60-calendar-day time frame described in subsection (e) of this section or if any party disagrees with a timely Board decision. This follows federal WIA requirements and is contained in the proposed repeal of §841.66, Local Level Hearing Procedure. The language is modified and incorporated in new Chapter 823.

Section 823.13(g) notifies parties that an appeal to the Agency must be filed in writing with TWC Appeals, Texas Workforce Commission, 101 East 15th St., Room 410, Austin, Texas 78778-0001, within 14 calendar days after the mailing date of the Board's decision. If the Board does not issue a decision within 60 calendar days of the date of the filing of the original appeal or complaint, an appeal to the Agency must be filed no later than 90 calendar days after the filing date of the original appeal or complaint. This requirement is found in §841.69, Appeal, which is concurrently proposed for repeal. The language is modified and incorporated in new Chapter 823.

§823.14. Board Policies for Resolving Complaints and Appeals of Determinations

Section 823.14 relates to Boards' policies for complaints and appeals of determinations, informal resolution, and hearings at the Board level. This requirement located in Chapter 841, Subchapter D, which is concurrently proposed for repeal, is modified and incorporated in new Chapter 823.

Section 823.14(a) requires Boards to develop written policies to handle complaints and appeals, provide the opportunity for informal resolution, and conduct hearings in accordance with this subchapter for individuals, eligible training providers, and other persons affected by the One-Stop Service Delivery Network, including subrecipients.

Section 823.14(b) requires a Board and its subrecipients to maintain written copies of these policies and make them available to the Agency, Texas Workforce Center customers, and other interested persons upon request. This provision is modified and retained from Chapter 841, Subchapter D, which is concurrently proposed for repeal

Section 823.14(c)(1) - (8) lists the minimum requirements for Board policies relating to complaints, informal resolution, and hearings. Required Board policies are found throughout other referenced rules, which are concurrently proposed for repeal. New §823.14(c) provides an itemized list of required policies in one subsection. Boards must develop and approve policies to:

(1) ensure that determinations are provided as specified in §823.11;

(2) ensure that information about complaint procedures is available as described in §823.10(d);

(3) notify persons that complaints must be submitted in writing and set forth the facts on which the complaint is based, and notify individuals of the time limit in which to file a complaint;

(4) maintain a complaint log and all complaint-related materials in a secure file for a period of three years;

(5) designate an individual to be responsible for investigating, documenting, monitoring, and following up on complaints;

(6) inform persons of the:

(A) right to file a complaint;

(B) right to appeal a determination;

(C) opportunity for informal resolution and a Board hearing;

(D) Boards' time frames for either reaching informal resolution or issuing a decision; and

(E) right to file an appeal to the Agency, including information on where to file the appeal;

(7) designate hearing officers to conduct Board hearings, document actions taken, and render decisions; and

(8) ensure that complaints remanded from the Agency to the Board for resolution are handled in a timely fashion and follow established Board policies and time frames.

Section 823.14(d) notifies Boards that complaints filed directly with the Agency may be remanded to the appropriate Board to be processed in accordance with the Board's policies for resolving complaints. The new subsection, which complies with WIA regulations allowing complaints to be remanded first to the appropriate Board for resolution, provides that a customer can file a complaint directly with the Agency and that the Agency then may choose to remand a complaint to the Board for resolution.

SUBCHAPTER C. AGENCY COMPLAINT AND APPEAL PROCEDURES

The Commission proposes new Subchapter C, Agency Complaint and Appeal Procedures, as follows:

Subchapter C contains the Agency's complaint and appeal procedures. Similar to repealed Subchapters B and C, new Subchapter C contains rule provisions related to the setting of hearings, postponement and continuance of hearings, evidence presented for hearings, hearing officer disqualification, recusal and reassignment, hearing procedures, and withdrawal of complaints and appeals. New Subchapter C contains many of the provisions related to general hearings found throughout repealed Chapter 823.

Subchapter C adds a new provision related to state-level complaints. WIA regulations require that procedures be developed related to processes for complaints, hearings, and appeals at the state level. The Commission's WIA rules, Chapter 841, currently do not specify that a customer can file a complaint directly with the Agency, nor do these rules specify that the Agency may remand a complaint to the Boards for resolution. Instead, Chapter 841 indicates that complaints first must be addressed by the Boards before an appeal may be made to the Agency. This new Chapter 823 provision complies with WIA regulations and provides specific processes related to complaints filed directly with the Agency.

§823.20. State-Level Complaints

Section 823.20 relates to the responsibilities of the Agency to establish procedures regarding complaints received at the state level. The provisions in this section are retained and modified from other rules in this title, which are proposed for repeal.

Section 823.20(a) specifies that a Texas Workforce Center customer or other interested person affected by the statewide One-Stop Service Delivery Network, including service providers alleging a noncriminal violation of the requirements of any federal- or state-funded workforce services, may file a complaint with the Agency. WIA regulations require states to develop procedures to deal with complaints from participants and other interested persons affected by the statewide workforce system. This new provision complies with federal WIA regulations and includes the workforce services referenced in §823.1(b).

Section 823.20(b) states that complaints shall be in writing and filed within 180 calendar days of the alleged violation. The complaint shall include the party's name, current mailing address, and a brief statement of the alleged violation identifying the facts on which the complaint is based. To maintain consistency for deadlines to file complaints, the Commission has aligned the complaint filing deadlines with the Board filing deadlines set forth in new Chapter 823.

Section 823.20(c) states that the complaint must be filed with TWC Appeals, Texas Workforce Commission, 101 East 15th St., Room 410, Austin, Texas 78778-0001. This subsection retains language from the concurrent proposed repeal of certain sections of the Commission's Child Care Services, Choices, FSE&T, and WIA rules.

Section 823.20(d) requires the Agency to provide an opportunity for informal resolution. This provision allows the Agency to resolve customers' issues in an informal manner in advance of the Agency's appeal procedures. This follows federal WIA requirements and also is located in §841.93, State Level Informal Resolution and Hearing for Alleged Violations of the Requirements of WIA by the State or for Complaints by Individuals Affected by the Statewide Program, concurrently proposed for repeal.

Section 823.20(e) provides that if the informal resolution procedure results in a final agreement between the parties, no hearing is required.

Section 823.20(f) states that a complaint not resolved by the informal resolution procedure shall be set for a hearing and a decision shall be issued in accordance with procedures for appeals under this subchapter. This provision is similar to language in the prehearing procedures section in repealed Chapter 823.

Section 823.20(g) notifies Boards that complaints filed directly with the Agency may be returned to the appropriate Board to be processed in accordance with the Board's hearing policies. The new subsection, which complies with WIA regulations allowing complaints to be remanded first to the appropriate Board for resolution, provides that a customer can file a complaint directly with the Agency and that the Agency may remand the complaint to the Board for resolution. Thus, if a person files a complaint directly with the Agency regarding a concern with the local provision of services as opposed to the statewide service network, the Agency has the discretion to send the complaint to the appropriate Board.

§823.21. Setting a Hearing

Section 823.21 identifies the necessary requirements to set an Agency hearing. The provisions in this section are retained from the repealed Chapter 823 with minor modifications.

Section 823.21(a) states that a WIA-funded training provider or other provider certified by the Agency and later found to be ineligible to receive funding as a training provider may file an appeal directly with the Agency. Section 823.21(a) retains certain provisions from §841.49, State Level Appeals, which is concurrently proposed for repeal. WIA regulations at 20 C.F.R. §667.640 require states to develop a written appeals process for appeals requested by providers found by the Agency to be ineligible to receive WIA funding for training services.

Section 823.21(b) states that upon receipt of the appeal from a Board decision, an appeal from a WIA-funded training provider found to be ineligible by the Agency, or if no informal resolution of a complaint is successfully reached, the Agency shall promptly assign a hearing officer and mail a notice of hearing to the parties and/or their designated representatives. The hearing shall be set and held promptly and in no case later than as provided by applicable statute or rule.

Section 823.21(c)(1) - (3) states that the notice of hearing shall be in writing and include:

(1) a statement of the date, time, place, and nature of the hearing;

(2) a statement of the legal authority under which the hearing is to be held; and

(3) a short and plain statement of the issues to be considered during the hearing.

Section 823.21(d) provides that the notice of hearing shall be issued at least 10 calendar days before the date of the hearing unless a shorter period is permitted by statute.

Section 823.21(e) states that hearings shall be conducted by telephonic means, unless an in-person hearing is required by applicable statute or the Agency determines that an in-person hearing is necessary.

Section 823.21(f) states that parties needing special accommodations, including the need for a bilingual or sign language interpreter, shall make this request before the hearing is set, if possible, or as soon as practical.

§823.22. Postponement and Continuance

Section 823.22 relates to the Agency's policies regarding the postponement and continuance of an Agency hearing. The provisions in this section are retained from the repealed Chapter 823 with minor modifications.

Section 823.22(a) states that the hearing officer may grant a postponement of a hearing for good cause at a party's request. Except in emergencies or unusual circumstances confirmed by a telephone call or other means, postponements shall not be granted within two days of the scheduled hearing.

Section 823.22(b)(1) - (5) provides that a continuance of a hearing may be ordered at the discretion of the hearing officer if:

(1) there is insufficient evidence upon which to make a decision;

(2) a party needs additional time to examine evidence presented at the hearing;

(3) the hearing officer considers it necessary to enter into evidence additional information or testimony;

(4) an in-person hearing is necessary for proper presentation of the evidence; or

(5) any other reason deemed appropriate by the hearing officer.

Section 823.22(c) states that the hearing officer shall advise the parties of the reason for the continuance and of any additional information required. At the continuance, the parties shall have an opportunity to rebut any additional evidence.

§823.23. Evidence

Section 823.23 relates to the Agency's evidence procedures for hearings. The provisions in this section are retained from repealed Chapter 823 rules with minor modifications.

Section 823.23(a), Evidence Generally, states that evidence, including hearsay evidence, shall be admitted if it is relevant and if, in the judgment of the hearing officer, it is the kind of evidence on which reasonably prudent persons are accustomed to rely in the conduct of their affairs. However, the hearing officer may exclude evidence if its probative value is outweighed by the danger of unfair prejudice, by confusion of the issues, or by reasonable concern for undue delay, waste of time, or needless presentation of cumulative evidence.

Section 823.23(b), Exchange of Exhibits, states that to be considered as evidence in a decision, any document or physical evidence must be entered as an exhibit at the hearing. Any documentary evidence to be presented during a telephonic hearing must be exchanged with all parties and a copy must be provided to the hearing officer in advance of the hearing. Any documentary evidence to be presented at an in-person hearing must be exchanged at the hearing.

Section 823.23(c), Stipulations, states that the parties, with the consent of the hearing officer, may agree in writing to relevant facts. The hearing officer may decide the appeal on the basis of such stipulations or, at the hearing officer's discretion, may set the appeal for hearing and take such further evidence as the hearing officer deems necessary.

Section 823.23(d), Experts and Evaluations, states that if relevant and useful, testimony from an independent expert or a professional evaluation from a source satisfactory to the parties and the Agency may be ordered by hearing officers, on their own motion, or at a party's request. Any such expert or evaluation shall be at the expense of one of the parties.

Section 823.23(e), Subpoenas, states that:

(1) The hearing officer may issue subpoenas to compel the attendance of witnesses and the production of records. A subpoena may be issued either at the request of a party or on the hearing officer's own motion.

(2) A party requesting a subpoena shall state the nature of the information desired, including names of any witnesses and the records that the requestor feels are necessary for the proper presentation of the case.

(3) The request shall be granted only to the extent the records or the testimony of the requested witnesses appears to be relevant to the issues on appeal.

(4) A denial of a subpoena request shall be made in writing or on the record, stating the reasons for such denial.

§823.24. Hearing Procedures

Section 823.24 describes the Agency's hearing procedures, which include the presentation of evidence, examination of witnesses and parties, additional evidence, and appropriate hearing behavior. The provisions in this section are retained from the repealed rules and have not substantially changed.

Section 823.24(a)(1) - (4), General Procedure, states that all hearings shall be conducted informally and in such manner as to ascertain the substantial rights of the parties. The hearing shall be conducted de novo, that is, a new hearing without regard to any previous determinations or decisions issued by a Board. The hearing officer shall develop the evidence. All issues relevant to the appeal shall be considered and addressed, including:

(1) presentation of evidence;

(2) examination of witnesses and parties;

(3) additional evidence; and

(4) appropriate hearing behavior.

Section 823.24(b)(1) - (3), Records, identifies the records procedures required for an Agency hearing, including:

(1) The hearing record must include the audio recording of the proceeding and any other relevant evidence relied on by the hearing officer, including documents and other physical evidence entered as exhibits.

(2) The hearing record must be maintained in accordance with federal or state law.

(3) Confidentiality of information contained in the hearing record must be maintained in accordance with federal and state law.

§823.25. Withdrawal of Complaint or Appeal

Section 823.25 states a party may request a withdrawal of its own complaint or appeal at any time before a final Agency decision is issued. The hearing officer may grant the request for withdrawal in writing and issue an order of dismissal. Provisions in this section are retained from the repealed rules and have not substantially changed.

§823.26. Hearing Officer Independence and Impartiality

Section 823.26 relates to the Agency hearing officers' powers and impartiality. The provisions in this section are in part retained from the repealed rules.

Section 823.26(a) provides that a hearing officer presiding over a hearing shall have all powers necessary and appropriate to conduct a full, fair, and impartial hearing. Hearing officers shall remain independent and impartial in all matters regarding the handling of any issues during the pendency of a case and in issuing their written decisions.

Section 823.26(b) provides that a hearing officer shall be disqualified if the hearing officer has a personal interest in the outcome of the appeal or if the hearing officer directly or indirectly participated in the determination or Board decision on appeal. Any party may present facts to the Agency in support of a request to disqualify a hearing officer.

Section 823.26(c) states that a hearing officer may withdraw from a hearing to avoid the appearance of impropriety or partiality.

Section 823.26(d) states that following any disqualification or withdrawal of a hearing officer, the Agency shall assign an alternate hearing officer to the case. The alternate hearing officer shall not be bound by any findings or conclusions made by the disqualified or withdrawn hearing officer.

§823.27. Ex Parte Communications

Section 823.27 is intended to prevent improper communication with hearing officers, to ensure that their decisions are based solely on the evidence and arguments presented at the hearing. The section states that:

(a) The hearing officer shall not participate in ex parte communications, directly or indirectly, in any matter in connection with any substantive issue, with any interested person or party. Likewise, no person shall attempt to engage in ex parte communications with the hearing officer on behalf of any interested person or party.

(b) If the hearing officer receives any such ex parte communication, the other parties shall be given an opportunity to review that communication.

(c) Nothing shall prevent the hearing officer from communicating with parties or their representatives about routine matters such as requests for continuances or opportunities to inspect the file.

(d) The hearing officer may initiate communications with an Agency employee who has not participated in a hearing or any determination in the case for the limited purpose of using the special skills or knowledge of the Agency and its staff in evaluating the evidence.

SUBCHAPTER D. AGENCY-LEVEL DECISIONS, REOPENINGS, AND REHEARINGS

The Commission proposes new Subchapter D, Agency-Level Decisions, Reopenings, and Rehearings, as follows:

Subchapter D identifies and contains rule provisions related to the Agency's specific responsibilities for Agency decisions, motions to request the reopening of hearings, and motions for rehearings. Subchapter D is similar to the repealed Subchapter D and retains many of the provisions related to General Hearings found throughout repealed Chapter 823.

§823.30. Hearing Decision

Section 823.30 describes the Agency's procedures related to its hearing decisions. The provisions in this section are retained from repealed Chapter 823 rules with minor modifications.

Section 823.30(a) states that following the conclusion of the hearing, the hearing officer shall promptly issue a written decision on behalf of the Agency.

Section 823.30(b)(1) - (3) states that the hearing decision shall be based exclusively on the evidence of record in the hearing and on matters officially noticed in the hearing and shall include:

(1) a list of the individuals who appeared at the hearing;

(2) the findings of fact and conclusions of law reached on the issues; and

(3) the affirmation, reversal, or modification of a determination or Board decision.

Section 823.30(c) states that the Agency may assume continuing jurisdiction to modify or correct a hearing decision until the expiration of 14 calendar days from the mailing date of the hearing decision unless a party files a timely motion for rehearing.

§823.31. Motion for Reopening

Section 823.31 describes the Agency's procedures to request a reopening of a hearing. The provisions in this section are retained from repealed rules with minor modifications.

Section 823.31(a) states that if a party does not appear for an Agency hearing, the party has the right to request a reopening of the hearing within 14 calendar days from the date the Agency decision is mailed.

Section 823.31(b) states that the motion shall be in writing and detail the reason for failing to appear at the hearing.

Section 823.31(c) states that the hearing officer may schedule a hearing on whether to grant the reopening.

Section 823.31(d) states the motion may be granted if it appears to the hearing officer that the party has shown good cause for failing to appear at the hearing.

§823.32. Motion for Rehearing and Decision

Section 823.32 describes the Agency's procedures regarding motions for rehearings and decisions related to rehearings. The provisions in this section are retained from repealed rules and have not substantially changed.

Section 823.32(a) states that a party has 14 calendar days from the date the Agency decision is mailed to file a motion for rehearing. A rehearing may be granted only for the presentation of new evidence.

Section 823.32(b) states that motions for rehearing must be in writing and allege the new evidence to be considered. The appellant must show a compelling reason why the evidence was not presented at the hearing.

Section 823.32(c) states that if the hearing officer determines that the alleged, new evidence warrants a rehearing, a rehearing must be scheduled at a reasonable time and place.

Section 823.32(d) states that the hearing officer shall issue a written decision following the hearing.

Section 823.32(e) states that the hearing officer may also issue a decision denying a motion for rehearing.

§823.33. Finality of Decision

Section 823.33 describes when the Agency hearing officer's decision becomes final. Certain provisions in this section are retained, substantially unchanged, from the repealed rules.

Section 823.33(a)(1) - (3) states the decision of the hearing officer is the final decision of the Agency after the expiration of 14 calendar days from the mailing date of the decision, unless within that time:

(1) a request for reopening is filed with the Agency;

(2) a request for rehearing is filed with the Agency; or

(3) the Agency assumes continuing jurisdiction to modify or correct a decision.

Section 823.33(b) states any decision issued in response to a request for reopening or rehearing or a modification or correction issued by the Agency must be final on the expiration of 14 calendar days from the mailing date of the decision, modification, or correction.

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 state government as a result of enforcing or administering the rules. Because the proposed sections give Boards the responsibility to conduct hearings on appeals from all Board determinations, Boards (local governments) in the aggregate may experience a total estimated $100,000 per year increase in costs as they comply with the new rules requiring such appeals to be heard at the Board level. The total for such a cost increase for any given Board cannot be stated with certainty, and may also be influenced by numerous factors, including the number of determinations issued, the complexity of individual hearings, and the effectiveness of the Board's informal resolution process, as outlined in proposed §823.12.

There are estimated corresponding reductions in cost to the state (i.e, the Agency) of $100,000 (including indirect administration and personnel fringe benefits) per year, as the anticipated number of appeals conducted at the state level will be minimal over the ensuing five-year period. No reduction in cost to local governments is anticipated as a result of enforcing or administering the rules.

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

Enforcing or administering these rules does not have foreseeable implications relating to the cost or revenues of the state or local governments, aside from those possible increases of Board costs noted above.

There will be no probable economic costs to persons required to comply with these rules, aside from those possible increases of Board costs noted above, and there will be no adverse economic effect on small businesses or microbusinesses.

The reasoning for these conclusions includes the following:

1. Recent experience indicates that the vast majority of hearings resulting from Board actions were related to child care determinations, and an estimated 1,600 child care hearings statewide were conducted by the Agency during Fiscal Year 2006 (FY'06), at an estimated aggregate annual cost of approximately $100,000. (Actual costs totaled $105,205 during FY'06 and $86,965 during FY'05, averaging $96,085 per year over the two-year period, including all direct and indirect costs, and including employee fringe benefits.) As a result of the proposed rule's new hearings provisions, it is estimated that the same number of child care hearings may be held by the Boards each year during the ensuing five-year period. Proposed new §823.12 provisions require that Boards provide an opportunity for informal resolution of a complaint or appeal, and identify their responsibilities to attempt informal resolution in advance of a formal Board hearing. In TWC's experience, use of informal resolution in the areas of UI and wage claims routinely results in settlement of the vast majority of disputes, without the need for a formal hearing. An estimated 1,600 child care appeal hearings were conducted by TWC during FY'06--most of them from a small proportion of Boards--indicating that these particular Boards may benefit from the institution of informal resolution procedures, which could cause the number of hearings to decline from previous years. While there is no reasonable alternative basis to estimate future potential costs than to estimate the same number of child care hearings, at the average estimated annual aggregated cost of such Agency hearings (for example, the cost of Board hearings could increase during the initial period of time following the proposed rules going into effect--particularly regarding child care appeals for those few Boards that have been relying disproportionately on the Agency to conduct such appeals--then subsequently decline during the ensuing period as experience is gained), TWC believes that the quicker and more effectively the informal complaint and resolution provisions are instituted by Boards, the greater the likelihood that fewer hearings will be needed. Also, as noted in Part I. Purpose, Background, and Authority for these proposed rules, the Commission intends to provide training and technical assistance in order to assist Boards with implementation of these rules, including training on informal resolution procedures, hearing officer training, sample forms for complaints or resolution procedures, or other assistance in order to minimize costs as much as possible.

2. The reasoning for concluding that there will be no adverse economic effect on small businesses or microbusinesses is that small or microbusinesses are not regulated by these rules, except for those career schools or colleges that may be small businesses or microbusinesses. The proposed repeal of Chapter 823 hearings and appeals rules for career schools and colleges and the addition of new Chapter 807 Career Schools and Colleges hearings and appeals rules do not apparently represent a significant change and is not additionally substantively burdensome for small or microbusinesses.

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

Laurence M. Jones, 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 provide a unified and streamlined process regarding the resolution of complaints, hearings, and appeals related to Board-administered workforce services. In addition, due process principles and other legal rights will be protected, program outcomes will be achieved more effectively, and workforce services will be further integrated.

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.

PART IV. COORDINATION ACTIVITIES

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 A. GENERAL PROVISIONS

40 TAC §§823.1 - 823.3

(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 repeals 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, and the Texas Human Resources Code §44.002, regarding Administrative Rules.

The proposed repeals affect Texas Labor Code, Title 4, particularly Chapters 301 and 302, as well as the Texas Government Code, Chapter 2308.

§823.1.Short Title and Purpose.

§823.2.Definitions.

§823.3.Information on Right of Appeal.

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 27, 2007.

TRD-200702707

Reagan Miller

Deputy Division Director, Workforce Policy and Service Delivery Branch

Texas Workforce Commission

Earliest possible date of adoption: August 12, 2007

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


Subchapter B. PRE-HEARING PROCEDURE

40 TAC §§823.11 - 823.15

(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 repeals 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, and the Texas Human Resources Code §44.002, regarding Administrative Rules.

The proposed repeals affect Texas Labor Code, Title 4, particularly Chapters 301 and 302, as well as the Texas Government Code, Chapter 2308.

§823.11.Request for Hearing.

§823.12.Setting of Hearing.

§823.13.Postponement.

§823.14.Evidence.

§823.15.Hearing Officer Disqualification and Withdrawal.

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 27, 2007.

TRD-200702708

Reagan Miller

Deputy Division Director, Workforce Policy and Service Delivery Branch

Texas Workforce Commission

Earliest possible date of adoption: August 12, 2007

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


Subchapter C. CONDUCT OF HEARING

40 TAC §§823.31 - 823.34

(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 repeals 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, and the Texas Human Resources Code §44.002, regarding Administrative Rules.

The proposed repeals affect Texas Labor Code, Title 4, particularly Chapters 301 and 302, as well as the Texas Government Code, Chapter 2308.

§823.31.Hearing Procedure.

§823.32.Continuance of Hearing.

§823.33.Withdrawal of Appeal.

§823.34.Change in Determination.

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 27, 2007.

TRD-200702709

Reagan Miller

Deputy Division Director, Workforce Policy and Service Delivery Branch

Texas Workforce Commission

Earliest possible date of adoption: August 12, 2007

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


Subchapter D. DECISIONS, NON-APPEARANCES, AND REHEARINGS

40 TAC §§823.41 - 823.44

(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 repeals 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, and the Texas Human Resources Code §44.002, regarding Administrative Rules.

The proposed repeals affect Texas Labor Code, Title 4, particularly Chapters 301 and 302, as well as the Texas Government Code, Chapter 2308.

§823.41.Decision.

§823.42.Reopened Decision for Non-appearance.

§823.43.Rehearing Decision.

§823.44.Finality of Decision.

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 27, 2007.

TRD-200702710

Reagan Miller

Deputy Division Director, Workforce Policy and Service Delivery Branch

Texas Workforce Commission

Earliest possible date of adoption: August 12, 2007

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


Chapter 823. INTEGRATED COMPLAINTS, HEARINGS, AND APPEALS

Subchapter A. GENERAL PROVISIONS

40 TAC §§823.1 - 823.4

The new 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 new rules affect Texas Labor Code, Title 4, particularly Chapters 301 and 302, as well as Texas Government Code, Chapter 2308.

§823.1.Short Title and Purpose.

(a) This chapter provides an appeals process to the extent authorized by federal and state law and by rules administered by the Texas Workforce Commission (Agency).

(b) This section applies only to complaints or determinations regarding federal- or state-funded workforce services administered by the Agency or Local Workforce Development Boards (Boards), as follows:

(1) Child care;

(2) Temporary Assistance for Needy Families (TANF) Choices;

(3) Food Stamp Employment and Training (FSE&T);

(4) Project Reintegration of Offenders (Project RIO);

(5) Workforce Investment Act (WIA) Adult, Dislocated Worker, and Youth; and

(6) Eligible Training Providers (ETP) receiving WIA funds or other funds for training services.

(c) Determinations or complaints relating to the following matters are not governed by this chapter:

(1) Across-the-board reductions of services, benefits, or assistance to a class of recipients;

(2) Matters governed by hearing procedures otherwise provided for in this title;

(3) Alleged violations of nondiscrimination and equal opportunity requirements;

(4) Denial of benefits as it relates to mandatory work requirements for individuals receiving TANF and FSE&T services and is administered through the Texas Health and Human Services Commission (HHSC);

(5) Matters governing job service-related complaints as referenced in 20 C.F.R. Part 658, Subpart E, §§400 - 418 and the federal Employment Service law;

(6) Services provided by the Commission pursuant to Texas Labor Code §301.023 - Complaints Against the Commission; or

(7) Alleged criminal violations of any services referenced in §823.1(b).

§823.2.Definitions.

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

(1) Adverse action--Any denial or reduction in benefits or services to a party, including displacement from current employment by a Texas Workforce Center customer.

(2) Agency decision--The written finding issued by an Agency hearing officer following a hearing before that hearing officer.

(3) Appeal--A written request for a review filed with the Board or Agency by a person in response to a determination or decision.

(4) Board decision--The written finding issued by a Board hearing officer following a hearing before that hearing officer in response to an appeal or complaint.

(5) Complaint--A written statement alleging a violation of any law, regulation, or rule relating to any federal- or state-funded workforce service.

(6) Determination--A written statement issued to a Texas Workforce Center customer by a Board, its designee, or the Agency relating to an adverse action, or to a provider or contractor relating to denial or termination of eligibility under programs administered by the Agency or a Board listed in §823.1(b).

(7) Hearing officer--An impartial individual designated by either the Board or the Agency to conduct hearings and issue administrative decisions.

(8) Informal resolution--Any procedure that results in an agreed final settlement between all parties to a complaint or an appeal.

(9) Party--A person who files a complaint or who appeals a determination or the entity against which the complaint is filed or that issued the determination.

§823.3.Agency and Board Timeliness.

(a) A properly addressed determination or decision is final for all purposes unless the party to whom it is mailed files an appeal no later than the fourteenth calendar day after the mailing date.

(b) Each party to a complaint or an appeal shall promptly notify, in writing, the Board, Board's designee, or the Agency with which the complaint or appeal was filed of any change of mailing address. Determinations and decisions shall be mailed to this address.

(1) A copy of the determination or decision must be mailed to a properly designated party representative in order for it to become final.

(2) The Board or Agency is responsible for making an address change only if the Board or Agency is specifically directed by the party to mail subsequent correspondence to the new address.

(3) If the Board, Board's designee, or Agency addresses a document incorrectly, but the party receives the document, the time frame for filing an appeal shall begin as of the actual date of receipt by the party, whether or not the party receives the document within the appeal time frame set forth in subsection (a) of this section. However, this does not apply if the party fails to provide a current address or provides an incorrect address.

(c) A determination or decision mailed to a party shall be presumed to have been delivered if the document was mailed as specified in subsection (b) of this section.

(1) A determination or decision shall not be presumed to have been delivered:

(A) if there is tangible evidence of nondelivery, such as being returned to sender by the U.S. Postal Service; or

(B) if credible and persuasive evidence is submitted to establish nondelivery or delayed delivery to the proper address.

(2) If a party provides the Board or Agency with an incorrect mailing address, a mailing to that address shall be considered a proper mailing, even if there is proof that the party never received the document.

(d) A complaint or an appeal shall be in writing. Complaints or appeals may be filed electronically only if filed in a form approved by the Agency in writing. The filing date for a complaint or an appeal shall be:

(1) the postmarked date or the postal meter date (where there is only one or the other);

(2) the postmarked date, if there is both a postmark date and a postal meter date;

(3) the date the document was delivered to a common carrier, which is equivalent to the postmarked date;

(4) three business days before receipt by the Board or Agency, if the document was received in an envelope bearing no legible postmark, postal meter date, or date of delivery by a common carrier;

(5) the date of the document itself, if the document date is fewer than three days earlier than the date of receipt and if the document was received in an envelope bearing no legible postmark, postal meter date, or date of delivery by a common carrier;

(6) the date of the document itself, if the mailing envelope containing the complaint or appeal is lost after delivery to the Board or Agency. If the document is undated, the filing date shall be deemed to be three business days before receipt by the Board or Agency; or

(7) the date of receipt by the Board or Agency, if the document was filed by fax.

(e) Credible and persuasive testimony under oath, subject to cross-examination, may establish a filing date that is earlier than the dates established under subsection (d) of this section. A party shall be allowed to establish a filing date earlier than a postal meter date or the date of the document itself only upon a showing of extremely credible and persuasive evidence. Likewise, when a party alleges that a complaint or appeal has been filed that the Board or Agency has never received, the party must present extremely credible and persuasive evidence to support the allegation.

(f) A decision or determination shall not be deemed final if a party shows that a representative of the Board, Board's designee, or Agency has given misleading information on appeal rights to the party. The party shall specifically establish:

(1) how the party was misled; or

(2) what misleading information the party was given, and, if possible, by whom the party was misled.

(g) There is no good cause exception to the timeliness rules.

§823.4.Representation.

Each party may authorize a hearing representative to assist in presenting a complaint or an appeal on behalf of the party under this chapter. The Agency or Board may require authorization to be in writing. On behalf of the party, the hearing representative may exercise any of the party's rights under this chapter.

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 27, 2007.

TRD-200702711

Reagan Miller

Deputy Division Director, Workforce Policy and Service Delivery Branch

Texas Workforce Commission

Earliest possible date of adoption: August 12, 2007

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


Subchapter B. BOARD COMPLAINT AND APPEAL PROCEDURES

40 TAC §§823.10 - 823.14

The new 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 new rules affect Texas Labor Code, Title 4, particularly Chapters 301 and 302, as well as Texas Government Code, Chapter 2308.

§823.10.Board-Level Complaints.

(a) Persons who may file a complaint include:

(1) Texas Workforce Center customers;

(2) other interested persons affected by the One-Stop Service Delivery Network, including subrecipients and eligible training providers; and

(3) previously employed individuals who believe they were displaced by a Texas Workforce Center customer participating in work-based services such as subsidized employment, work experience, or workfare.

(b) Complaints shall be in writing and filed within 180 days of the alleged violation.

(c) The complaint shall include:

(1) the party's name and current mailing address; and

(2) a brief statement of the alleged violation identifying the facts on which the complaint is based.

(d) Each Board shall ensure that information about complaint procedures is provided to individuals, eligible training providers, and subrecipients. The information provided shall be presented in such a manner as to be understood by the affected individuals, including youth, individuals with disabilities, and individuals with limited English proficiency. This information shall be:

(1) posted in a conspicuous public location at each Texas Workforce Center;

(2) provided in writing to any customer;

(3) made available in writing to any individual upon request; and

(4) placed in each Texas Workforce Center customer's file.

§823.11.Determinations.

(a) A determination affecting the type and level of services to be provided by a Board or its designee shall be promptly provided to any person directly affected.

(b) The determination shall include the following:

(1) A brief statement of the adverse action;

(2) The mailing date of the determination;

(3) An explanation of the individual's right to an appeal;

(4) The procedures for filing an appeal to the Board, including applicable time frames as required in §823.3;

(5) The right to have a hearing representative, including legal counsel; and

(6) The address or fax number to send the appeal.

(c) Boards shall allow providers of training services the opportunity to appeal a determination related to the:

(1) denial of eligibility as a training provider under WIA §122(b), §122(c), or §122(e);

(2) termination of eligibility as a training provider or other action under WIA §122(f); or

(3) denial of eligibility as a training provider of on-the-job or customized training by the operator of a Texas Workforce Center under WIA §122(h).

(d) A person that receives a determination from a Board or a Board's designee may file an appeal with the Board requesting a review of the determination. The appeal must be submitted in writing, filed within 14 calendar days of the mailing date of the determination, and include the party's proper mailing address.

§823.12.Board Informal Resolution Procedure.

(a) Boards shall provide an opportunity for informal resolution of a complaint or appeal.

(b) Informal resolution may include but is not limited to:

(1) informal meetings with case managers or their supervisors;

(2) second reviews of the case file;

(3) telephone calls or conference calls to the affected parties;

(4) in-person interviews with all affected parties; or

(5) written explanations or summaries of the laws or regulations involved in the complaint.

§823.13.Board Hearings.

(a) If the informal resolution procedure results in a final agreement between the parties, no hearing shall be held.

(b) If no final informal resolution is reached, Boards shall provide an opportunity for a hearing to resolve an appeal or complaint.

(c) Either a final agreement resulting from informal resolution or a hearing and Board decision shall be completed within 60 calendar days of the original filing of the appeal or complaint.

(d) Boards shall provide a process that allows an individual alleging a labor standards violation to submit a complaint to a binding arbitration procedure, if a collective bargaining agreement covering the parties to the complaint so provides.

(e) Within 60 calendar days of the filing of the appeal or complaint, the Board shall send the parties a decision setting forth the results of the hearing. The decision shall be issued by a Board hearing officer, shall include findings of fact and conclusions of law, and shall provide information about appeal rights to the parties.

(f) If no Board decision is mailed within the 60 calendar-day time frame described in subsection (e) of this section or if any party disagrees with a timely Board decision, a party may file an appeal with the Agency.

(g) An appeal to the Agency shall be filed in writing with TWC Appeals, Texas Workforce Commission, 101 East 15th St., Room 410, Austin, Texas 78778-0001, within 14 calendar days after the mailing date of the Board's decision. If the Board does not issue a decision within 60 calendar days of the date of the filing of the original appeal or complaint, an appeal to the Agency must be filed no later than 90 calendar days after the filing date of the original appeal or complaint.

§823.14.Board Policies for Resolving Complaints and Appeals of Determinations.

(a) A Board shall establish written policies to handle complaints and appeals of determinations, provide the opportunity for informal resolution, and conduct hearings in compliance with this subchapter for individuals, eligible training providers, and other persons affected by the One-Stop Service Delivery Network, including subrecipients.

(b) A Board shall maintain written copies of these policies, and make them available to the Agency, Texas Workforce Center customers, and other interested persons upon request. A Board shall require that its subrecipients provide these policies to Texas Workforce Center customers and other interested persons upon request.

(c) At a minimum, a Board shall develop and approve policies to:

(1) ensure that determinations are provided as specified in §823.11;

(2) ensure that information about complaint procedures is available as described in §823.10(d);

(3) notify persons that complaints must be submitted in writing and set forth the facts on which the complaint is based, and notify them of the time limit in which to file a complaint;

(4) maintain a complaint log and all complaint-related materials in a secure file for a period of three years;

(5) designate an individual to be responsible for investigation, documentation, monitoring, and following up on complaints;

(6) inform persons of the:

(A) right to file a complaint;

(B) right to appeal a determination;

(C) opportunity for informal resolution and a Board hearing;

(D) time frame in which to either reach informal resolution or to issue a Board decision; and

(E) right to file an appeal to the Agency, including providing information on where to file the appeal;

(7) designate hearing officers to conduct Board hearings, document actions taken, and render decisions; and

(8) ensure that complaints remanded from the Agency to the Board for resolution are handled in a timely fashion and follow established Board policies and time frames.

(d) Complaints filed directly with the Agency may be remanded to the appropriate Board to be processed in accordance with the Board's policies for resolving complaints.

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 27, 2007.

TRD-200702712

Reagan Miller

Deputy Division Director, Workforce Policy and Service Delivery Branch

Texas Workforce Commission

Earliest possible date of adoption: August 12, 2007

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


Subchapter C. AGENCY COMPLAINT AND APPEAL PROCEDURES

40 TAC §§823.20 - 823.27

The new 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 new rules affect Texas Labor Code, Title 4, particularly Chapters 301 and 302, as well as Texas Government Code, Chapter 2308.

§823.20.State-Level Complaints.

(a) A Texas Workforce Center customer or other interested person affected by the statewide One-Stop Service Delivery Network, including service providers that allege a noncriminal violation of the requirements of any federal- or state-funded workforce services, may file a complaint with the Agency.

(b) Complaints shall be in writing and filed within 180 calendar days of the alleged violation. The complaint shall include the party's name, current mailing address, and a brief statement of the alleged violation identifying the facts on which the complaint is based.

(c) The complaint shall be filed with TWC Appeals, Texas Workforce Commission, 101 East 15th St., Room 410, Austin, Texas 78778-0001.

(d) The Agency shall provide an opportunity for informal resolution.

(e) If the informal resolution procedure results in a final agreement between the parties, no hearing shall be held.

(f) If no final informal resolution is reached, the complaint shall be promptly set for a hearing and a decision shall be issued in accordance with the procedures for appeals under this subchapter.

(g) Complaints filed directly with the Agency may be remanded to the appropriate Board to be processed in accordance with the Board's hearing policies.

§823.21.Setting a Hearing.

(a) A WIA-funded training provider or other provider certified by the Agency and later found to be ineligible to receive funding as a training provider may file an appeal directly with the Agency.

(b) Upon receipt of an appeal from a Board decision, an appeal pursuant to subsection (a) of this section, or if no informal resolution of a complaint is successfully reached pursuant to §823.20, the Agency shall promptly assign a hearing officer and mail a notice of hearing to the parties and/or their designated representatives. The hearing shall be set and held promptly and in no case later than as provided by applicable statute or rule.

(c) The notice of hearing shall be in writing and include a:

(1) statement of the date, time, place, and nature of the hearing;

(2) statement of the legal authority under which the hearing is to be held; and

(3) short and plain statement of the issues to be considered during the hearing.

(d) The notice of hearing shall be issued at least 10 calendar days before the date of the hearing unless a shorter period is permitted by statute.

(e) Hearings shall be conducted by telephonic means, unless an in-person hearing is required by applicable statute or the Agency determines that an in-person hearing is necessary.

(f) Parties needing special accommodations, including the need for a bilingual or sign language interpreter, shall make this request before the hearing is set, if possible, or as soon as practical.

§823.22.Postponement and Continuance.

(a) The hearing officer may grant a postponement of a hearing for good cause at a party's request. Except in emergencies or unusual circumstances confirmed by a telephone call or other means, no postponements shall be granted within two days of the scheduled hearing.

(b) A continuance of a hearing may be ordered at the discretion of the hearing officer if:

(1) there is insufficient evidence upon which to make a decision;

(2) a party needs additional time to examine evidence presented at the hearing;

(3) the hearing officer considers it necessary to enter into evidence additional information or testimony;

(4) an in-person hearing is necessary for proper presentation of the evidence; or

(5) any other reason deemed appropriate by the hearing officer.

(c) The hearing officer shall advise the parties of the reason for the continuance and of any additional information required. At the continuance, the parties shall have an opportunity to rebut any additional evidence.

§823.23.Evidence.

(a) Evidence Generally. Evidence, including hearsay evidence, shall be admitted if it is relevant and if in the judgment of the hearing officer it is the kind of evidence on which reasonably prudent persons are accustomed to rely in the conduct of their affairs. However, the hearing officer may exclude evidence if its probative value is outweighed by the danger of unfair prejudice, by confusion of the issues, or by reasonable concern for undue delay, waste of time, or needless presentation of cumulative evidence.

(b) Exchange of Exhibits. To be considered as evidence in a decision, any document or physical evidence must be entered as an exhibit at the hearing. Any documentary evidence to be presented during a telephonic hearing shall be exchanged with all parties and a copy shall be provided to the hearing officer in advance of the hearing. Any documentary evidence to be presented at an in-person hearing shall be exchanged at the hearing.

(c) Stipulations. The parties, with the consent of the hearing officer, may agree in writing to relevant facts. The hearing officer may decide the appeal on the basis of such stipulations or, at the hearing officer's discretion, may set the appeal for hearing and take such further evidence as the hearing officer deems necessary.

(d) Experts and Evaluations. If relevant and useful, testimony from an independent expert or a professional evaluation from a source satisfactory to the parties and the Agency may be ordered by hearing officers, on their own motion or at a party's request. Any such expert or evaluation shall be at the expense of one of the parties.

(e) Subpoenas.

(1) The hearing officer may issue subpoenas to compel the attendance of witnesses and the production of records. A subpoena may be issued either at the request of a party or on the hearing officer's own motion.

(2) A party requesting a subpoena shall state the nature of the information desired, including names of any witnesses and the records that the requestor feels are necessary for the proper presentation of the case.

(3) The request shall be granted only to the extent the records or the testimony of the requested witnesses appears to be relevant to the issues on appeal.

(4) A denial of a subpoena request shall be made in writing or on the record, stating the reasons for such denial.

§823.24.Hearing Procedures.

(a) General Procedure. All hearings shall be conducted de novo. The hearing shall be conducted informally and in such manner as to ascertain the substantial rights of the parties. The hearing officer shall develop the evidence. All issues relevant to the appeal shall be considered and addressed.

(1) Presentation of Evidence. The parties to an appeal may present evidence that is material and relevant, as determined by the hearing officer. In conducting a hearing, the hearing officer shall actively develop the record on the relevant circumstances and facts to resolve all issues. To be considered as evidence in a decision, any document or physical evidence must be entered as an exhibit at the hearing.

(2) Examination of Witnesses and Parties. The hearing officer shall examine parties and any witnesses and shall allow cross-examination to the extent the hearing officer deems necessary to afford the parties due process.

(3) Additional Evidence. The hearing officer, with or without notice to any of the parties, may take additional evidence deemed necessary, provided that a party shall be given an opportunity to rebut the evidence if it is to be used against the party's interest.

(4) Appropriate Hearing Behavior. All parties shall conduct themselves in an appropriate manner. The hearing officer may expel any individual, including a party, who fails to correct behavior the hearing officer identifies as disruptive. After an expulsion, the hearing officer may proceed with the hearing and render a decision.

(b) Records

(1) The hearing record shall include the audio recording of the proceeding and any other relevant evidence relied on by the hearing officer, including documents and other physical evidence entered as exhibits.

(2) The hearing record shall be maintained in accordance with federal or state law.

(3) Confidentiality of information contained in the hearing record shall be maintained in accordance with federal and state law.

§823.25.Withdrawal of Complaint or Appeal.

A party may request a withdrawal of its own complaint or appeal at any time before a final Agency decision is issued. The hearing officer may grant the request for withdrawal in writing and issue an order of dismissal.

§823.26.Hearing Officer Independence and Impartiality.

(a) A hearing officer presiding over a hearing shall have all powers necessary and appropriate to conduct a full, fair, and impartial hearing. Hearing officers shall remain independent and impartial in all matters regarding the handling of any issues during the pendency of a case and in issuing their written decisions.

(b) A hearing officer shall be disqualified if the hearing officer has a personal interest in the outcome of the appeal or if the hearing officer directly or indirectly participated in the determination or Board decision on appeal. Any party may present facts to the Agency in support of a request to disqualify a hearing officer.

(c) A hearing officer may withdraw from a hearing to avoid the appearance of impropriety or partiality.

(d) Following any disqualification or withdrawal of a hearing officer, the Agency shall assign an alternate hearing officer to the case. The alternate hearing officer shall not be bound by any findings or conclusions made by the disqualified or withdrawn hearing officer.

§823.27.Ex Parte Communications.

(a) The hearing officer shall not participate in ex parte communications, directly or indirectly, in any matter in connection with any substantive issue, with any interested person or party. Likewise, no person shall attempt to engage in ex parte communications with the hearing officer on behalf of any interested person or party.

(b) If the hearing officer receives any such ex parte communication, the other parties shall be given an opportunity to review that communication.

(c) Nothing shall prevent the hearing officer from communicating with parties or their representatives about routine matters such as requests for continuances or opportunities to inspect the file.

(d) The hearing officer may initiate communications with an Agency employee who has not participated in a hearing or any determination in the case for the limited purpose of using the special skills or knowledge of the Agency and its staff in evaluating the evidence.

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 27, 2007.

TRD-200702713

Reagan Miller

Deputy Division Director, Workforce Policy and Service Delivery Branch

Texas Workforce Commission

Earliest possible date of adoption: August 12, 2007

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


Subchapter D. AGENCY-LEVEL DECISIONS, REOPENINGS, AND REHEARINGS

40 TAC §§823.30 - 823.33

The new 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 new rules affect Texas Labor Code, Title 4, particularly Chapters 301 and 302, as well as Texas Government Code, Chapter 2308.

§823.30.Hearing Decision.

(a) Following the conclusion of the hearing, the hearing officer shall promptly issue a written decision on behalf of the Agency.

(b) The Agency decision shall be based exclusively on the evidence of record in the hearing and on matters officially noticed in the hearing. The Agency decision shall include:

(1) a list of the individuals who appeared at the hearing;

(2) the findings of fact and conclusions of law reached on the issues; and

(3) the affirmation, reversal, or modification of a determination or Board decision.

(c) Unless a party files a timely motion for rehearing, the Agency may assume continuing jurisdiction to modify or correct a hearing decision until the expiration of 14 calendar days from the mailing date of the hearing decision.

§823.31.Motion for Reopening.

(a) If a party does not appear for an Agency hearing, the party has the right to request a reopening of the hearing within 14 calendar days from the date the Agency decision is mailed.

(b) The motion shall be in writing and detail the reason for failing to appear at the hearing.

(c) The hearing officer may schedule a hearing on whether to grant the reopening.

(d) The motion may be granted if it appears to the hearing officer that the party has shown good cause for failing to appear at the hearing.

§823.32.Motion for Rehearing and Decision.

(a) A party has 14 calendar days from the date the decision is mailed to file a motion for rehearing. A rehearing may be granted only for the presentation of new evidence.

(b) Motions for rehearing shall be in writing and allege the new evidence to be considered. The appellant must show a compelling reason why this evidence was not presented at the hearing.

(c) If the hearing officer determines that the alleged, new evidence warrants a rehearing, a rehearing shall be scheduled at a reasonable time and place.

(d) The hearing officer shall issue a written decision following the hearing.

(e) The hearing officer may also issue a decision denying a motion for rehearing.

§823.33.Finality of Decision.

(a) The decision of the hearing officer is the final decision of the Agency after the expiration of 14 calendar days from the mailing date of the decision unless within that time:

(1) a request for reopening is filed with the Agency;

(2) a request for rehearing is filed with the Agency; or

(3) the Agency assumes continuing jurisdiction to modify or correct a decision.

(b) Any decision issued in response to a request for reopening or rehearing or a modification or correction issued by the Agency shall be final on the expiration of 14 calendar days from the mailing date of the decision, modification, or correction.

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 27, 2007.

TRD-200702714

Reagan Miller

Deputy Division Director, Workforce Policy and Service Delivery Branch

Texas Workforce Commission

Earliest possible date of adoption: August 12, 2007

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


Chapter 841. WORKFORCE INVESTMENT ACT

The Texas Workforce Commission (Commission) proposes the repeal of the following sections of Chapter 841 relating to the Workforce Investment Act (WIA):

Subchapter C, Training Provider Certification, §841.48 and §841.49

Subchapter D, Local Area Grievance Procedure, §§841.61 - 841.69

Subchapter E, State Level Hearing, §§841.91 - 841.93 and 841.95 - 841.96

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 rule change is to establish detailed and consistent procedures for complaints, hearings, and appeals related to workforce services administered by Local Workforce Development Boards (Boards). Texas Labor Code §302.065 requires that the Commission integrate the administration of multiple federal block grant programs and identify policy changes that support this integration. The Commission expanded this integration to state-funded workforce services, including examining the existing complaints and appeals processes for workforce services administered by the Boards. An absence of unified and integrated rules on complaints, hearings, and appeals related to workforce services makes the existing rules difficult to understand or interpret consistently and works as a barrier to integrating workforce services.

To maintain uniformity and consistency across all Board-administered workforce services and to protect due process rights of Texas Workforce Center customers, in a separate, but concurrent, rulemaking proposal, the Commission is proposing the repeal of Chapter 823, General Hearings rules, and is proposing new Chapter 823, Integrated Complaints, Hearings, and Appeals rules. New Chapter 823 requires Boards to establish local policies related to filing complaints, to provide opportunities for informal resolutions, and to establish procedures for Board hearings and appeals.

The Commission has reviewed sections of Chapter 841 relating to complaints or grievances, local-level appeals, and state-level hearings. The Commission proposes to repeal these sections and incorporate similar processes related to complaints, hearings, and appeals in new Chapter 823, including the complaints and appeals process that is currently established in the Workforce Investment Act (WIA) regulations at 20 C.F.R. §667.600 and §667.640.

PART II. EXPLANATION OF INDIVIDUAL PROVISIONS

SUBCHAPTER C. TRAINING PROVIDER CERTIFICATION

The Commission proposes amendments to Subchapter C, as follows:

Under a separate, but concurrent, rulemaking proposal, the Commission is proposing new Chapter 823, Integrated Complaints, Hearings, and Appeals, which comprises the complaint, hearing, and appeal procedures for all Board-administered workforce services, including the information in the following sections.

§841.48. Local Appeals

Section 841.48, procedures established by Boards for appeals requested by eligible training providers found by the Boards to be ineligible to receive WIA funding for training services, is repealed and the information is relocated in new Chapter 823.

§841.49. State Level Appeals

Section 841.49, procedures established by the Agency for appeals requested by eligible training providers found by the Agency to be ineligible to receive WIA funding for training services, is repealed and the information relocated in new Chapter 823.

SUBCHAPTER D. LOCAL AREA GRIEVANCE PROCEDURE

The Commission proposes the repeal of Subchapter D, as follows:

Under a separate, but concurrent, rulemaking proposal, the Commission is proposing new Chapter 823, Integrated Complaints, Hearings, and Appeals, which comprises the complaint, hearing, and appeal procedures for all Board-administered workforce services, including the information in the following sections.

§841.61. Purpose and Coverage

Section 841.61, procedures for resolving allegations of violations of the requirements of WIA in the operation of local WIA programs and activities, is repealed and the information is relocated in new Chapter 823.

§841.62. Grievance Filing Procedures at the Local Level

Section 841.62, grievance procedures established by the Board to notify any participant or other affected party alleging a violation of the requirements of WIA at the local level of the right to file a complaint, is repealed and the information is relocated in new Chapter 823.

§841.63. Time Limitations at Local Level

Section 841.63, the length of time required to file a complaint alleging noncriminal violations of the requirements of WIA, is repealed and the information is relocated in new Chapter 823.

§841.64. LWDB Responsibilities

Section 841.64, responsibilities of the Boards regarding grievance procedures, is repealed and the information is relocated in new Chapter 823.

§841.65. Local Level Informal Conference Procedure

Section 841.65, Board requirements regarding informal resolutions, is repealed and the information is relocated in new Chapter 823.

§841.66. Local Level Hearing Procedure

Section 841.66, Board requirements to establish local hearing procedures for parties dissatisfied with the results of an informal conference, is repealed and the information is relocated in new Chapter 823.

§841.67. Written Decision

Section 841.67, requirements for hearing officers to provide a written decision to all parties to a complaint, is repealed and the information is relocated in new Chapter 823.

§841.68. Remedies

Section 841.68, remedies that may be imposed as enumerated at WIA §181(c)(3), is repealed and the information is relocated in new Chapter 823.

§841.69. Appeal

Section 841.69, procedures for filing an appeal to the Agency if a party is dissatisfied with the results of a local level hearing, is repealed and the information is relocated in new Chapter 823.

SUBCHAPTER E. STATE LEVEL HEARING

The Commission proposes amendments to Subchapter E, as follows:

Under a separate, but concurrent, rulemaking proposal, the Commission is proposing new Chapter 823, Integrated Complaints, Hearings, and Appeals, which comprises the complaint, hearing, and appeal procedures for all Board-administered workforce services, including the information in the following sections.

§841.91. Scope

Section 841.91, related to the scope of this subchapter, is repealed and the information is relocated in new Chapter 823.

§841.92. Review Procedure for Appeals Made Under §841.69

Section 841.92, procedures established by the Agency to select an impartial hearing officer to review the record to determine if a party was afforded a process that was held in compliance with WIA and local grievance procedures, is repealed and the information is relocated in new Chapter 823.

§841.93. State Level Informal Resolution and Hearing for Alleged Violations of the Requirements of WIA by the State or for Complaints by Individuals Affected by the Statewide Program

Section 841.93, Agency requirements to establish procedures for state level informal resolutions and hearings for alleged violations of the requirements of WIA by the state or for complaints by individuals affected by the statewide program, is repealed and the information is relocated in new Chapter 823.

§841.95. Referral of Local Complaints

Section 841.95, complaints arising under Subchapter D and made directly to the Commission, is repealed and the information is relocated in new Chapter 823.

§841.96. Appeal to Secretary of Labor

Section 841.96, appeals made to the Secretary of Labor pursuant to 20 C.F.R. §§667.610, 667.640, 667.645, and 667.650, is repealed and the information is relocated in new Chapter 823.

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 additional estimated costs to the state and 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 are no anticipated economic costs to persons required to comply with the rules.

There is no anticipated adverse economic impact on small or microbusinesses as a result of enforcing or administering the rules.

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.

Laurence M. Jones, 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 provide a unified and streamlined process regarding the resolution of complaints, hearings, and appeals related to Board-administered workforce services. In addition, due process principles and other legal rights will be protected, program outcomes will be achieved more effectively, and workforce services will be further integrated.

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.

PART IV. COORDINATION ACTIVITIES

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. TRAINING PROVIDER CERTIFICATION

40 TAC §841.48, §841.49

(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 repeals 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, and Texas Human Resources Code §44.002, regarding Administrative Rules.

The repeals affect Texas Labor Code, Title 4, particularly Chapters 301 and 302, as well as Texas Government Code, Chapter 2308.

§841.48.Local Appeals.

§841.49.State Level Appeals.

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 27, 2007.

TRD-200702715

Reagan Miller

Deputy Division Director, Workforce Policy and Service Delivery Branch

Texas Workforce Commission

Earliest possible date of adoption: August 12, 2007

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


Subchapter D. LOCAL AREA GRIEVANCE PROCEDURE

40 TAC §§841.61 - 841.69

(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 repeals 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, and Texas Human Resources Code §44.002, regarding Administrative Rules.

The repeals affect Texas Labor Code, Title 4, particularly Chapters 301 and 302, as well as Texas Government Code, Chapter 2308.

§841.61.Purpose and Coverage.

§841.62.Grievance Filing Procedures at the Local Level.

§841.63.Time Limitations at Local Level.

§841.64.LWDB Responsibilities.

§841.65.Local Level Informal Conference Procedure.

§841.66.Local Level Hearing Procedure.

§841.67.Written Decision.

§841.68.Remedies.

§841.69.Appeal.

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 27, 2007.

TRD-200702716

Reagan Miller

Deputy Division Director, Workforce Policy and Service Delivery Branch

Texas Workforce Commission

Earliest possible date of adoption: August 12, 2007

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


Subchapter E. STATE LEVEL HEARING

40 TAC §§841.91 - 841.93, 841.95, 841.96

(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 repeals 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, and Texas Human Resources Code §44.002, regarding Administrative Rules.

The repeals affect Texas Labor Code, Title 4, particularly Chapters 301 and 302, as well as Texas Government Code, Chapter 2308.

§841.91.Scope.

§841.92.Review Procedure for Appeals Made Under §841.69.

§841.93.State Level Informal Resolution and Hearing for Alleged Violations of the Requirements of WIA by the State or for Complaints by Individuals Affected by the Statewide Program.

§841.95.Referral of Local Complaints

§841.96.Appeal to Secretary of Labor

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 27, 2007.

TRD-200702717

Reagan Miller

Deputy Division Director, Workforce Policy and Service Delivery Branch

Texas Workforce Commission

Earliest possible date of adoption: August 12, 2007

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