TITLE 19. EDUCATION

PART 1. TEXAS HIGHER EDUCATION COORDINATING BOARD

CHAPTER 21. STUDENT SERVICES

SUBCHAPTER A. GENERAL PROVISIONS

19 TAC §21.8

The Texas Higher Education Coordinating Board proposes new §21.8, concerning definition of student's financial need. Specifically, proposed new §21.8 would provide a general definition of student's financial need. Certain sections of the Texas Education Code, such as §56.011(b) regarding set-asides from designated tuition, indicate institutions are to award funds to students who "must establish financial need in accordance with rules and procedures established by the Texas Higher Education Coordinating Board." Currently, the term "financial need" is defined in Coordinating Board rules for individual financial aid programs, but there is no generic definition in our rules of "student financial need." New §21.8 would provide this definition.

Lois Hollis, Senior Assistant to the Deputy Commissioner for Business and Finance/Chief Operating Officer, has determined that for each year of the first five years the section is in effect, there will no fiscal implications to state or local government as a result of enforcing or administering the section.

Ms. Hollis has also determined that for each year of the first five years the section is in effect, the public benefit anticipated as a result of administering the section will be a clearer understanding of the definition of student financial need. There is no effect on small businesses. There are no anticipated economic costs to persons who are required to comply with the section as proposed. There is no impact on local employment.

Comments on the proposal may be submitted to Lois Hollis, P.O. Box 12788, Austin, Texas 78711, (512) 427-6465, Lois.Hollis@thecb.state.tx.us. Comments will be accepted for 30 days following publication of the proposal in the Texas Register.

The new section is proposed under the Texas Education Code, §56.011(b) and §56.012(b), which gives the Coordinating Board the authority to adopt rules that will provide for the efficient and uniform application of this section.

The new section affects the Texas Education Code, §56.011 and §56.012.

§21.8.Definition of Student's Financial Need.

Unless otherwise specified in statute or rule, a student's financial need is defined as the difference between the student's cost of attendance as determined by the institution and the student's expected family contribution as calculated using the United States Department of Education's federal methodology.

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 February 4, 2009.

TRD-200900441

Bill Franz

General Counsel

Texas Higher Education Coordinating Board

Proposed date of adoption: April 30, 2009

For further information, please call: (512) 427-6114


SUBCHAPTER OO. MEDICAID CHILDREN'S LOAN REPAYMENT PROGRAM

19 TAC §§21.2200 - 21.2207

The Texas Higher Education Coordinating Board proposes new §§21.2200 - 21.2207 concerning Medicaid Children's Loan Repayment Program. Specifically, House Bill 15, §19(d), 80th Texas Legislature, instructs the Texas Health and Human Services Commission (HHSC) to develop a plan (contingent on applicable approval by the federal judiciary and pursuant to the Joint Motion in Frew v. Hawkins), that details the proposed expenditure of funds in a manner that addresses the requirements of the Consent Decree, the Joint Motion, and the judicially-approved Correction Action Plans in Frew v. Hawkins, to the extent those judicially-approved Corrective Action Plans supersede the Joint Motion. The Frew expenditure plan was approved by the Governor's Office of Budget, Planning, and Policy and the Legislative Budget Board (LBB) in October 2007. The Frew expenditure plan included Appendix D, Strategic Initiatives Received from Public Stakeholders, which indicates to achieve the objective of increasing participation of medical and dental providers who serve children in the Texas Medicaid program, HHSC should fund or establish well-structured loan repayment programs with a particular emphasis on primary care. It is anticipated that by the time these rules are finally adopted, the Texas Higher Education Coordinating Board (THECB) will have entered into a memorandum of understanding with the Texas Health and Human Services Commission, under which the THECB serves as a fiscal disbursing agent for the Medicaid Children's Loan Repayment Program. The program will enroll up to 300 physicians and dentists per year, and the State may prioritize the applications based on particular specialties or locations. Once the program is fully implemented, HHSC anticipates that it will provide loan repayments for up to 1,200 physicians and dentists per year. Each doctor will be eligible for up to $140,000 in loan repayments over four years if he or she meets targets for services provided to Medicaid eligible children. The loan repayment program is expected to cost about $300,000 in state funding in fiscal year 2010, with the cost growing to $42.6 million a year once the program achieves the maximum number of participants after four years. The new sections establish definitions and identify the eligibility requirements for provider, education loan, and lender or holder of loan.

Mr. Dan Weaver, Assistant Commissioner, Business & Support Services, has determined that for each year of the first five years the section is in effect, there will be no fiscal impact to local government, but the fiscal implications to state government as a result of enforcing or administering the new sections are estimated to be the following: $297,480 in FY2009, $12,573,922 in FY2010, $21,577,514 in FY2011, $33,653,074 in FY2012, and $42,644,542 in FY2013.

Mr. Weaver has also determined that for each year of the first five years the section is in effect, the public benefit anticipated as a result of administering the sections will be that there will be improved access to medically necessary services for members of the plaintiff class in the Frew V. Hawkins lawsuit styled "Linda Frew, et al. v. Albert Hawkins, et al., Civil Action No. 3:93CA65 (U.S. Dist. - E.D. Tex.). There is no effect on small businesses. There are no anticipated economic costs to persons who are required to comply with the sections as proposed. There is no impact on local employment.

Comments on the proposal may be submitted to Dan Weaver, P.O. Box 12788, Austin, Texas 78711, (512) 427-6465, dan.weaver@thecb.state.tx.us. Comments will be accepted for 30 days following publication of the proposal in the Texas Register.

The new sections are proposed under the Texas Education Code, §61.027, which provides the Coordinating Board with general rule-making authority, Article III of the General Appropriations Act of the 80th Texas Legislature, and House Bill 15, §19(d), 80th Texas Legislature.

The new sections affect Article III of the General Appropriations Act of the 80th Texas Legislature; Texas Education Code §§61.027, 61.531 - 61.539, 61.901, 61.91; and 19 Texas Administrative Code §§21.251 - 21.263 and 21.560 - 21.566.

§21.2200.Authority and Purpose.

(a) Authority. Authority for this subchapter is provided in House Bill 15, §19(d), 80th Legislature, Regular Session.

(b) Purpose. The purpose of the Medicaid Children's Loan Repayment Program is to encourage qualified physicians and dentists to ensure adequate access to health care services, including primary care and subspecialty medical and dental services and utilization of appropriate and necessary health care services by Medicaid enrollees under the age of 21.

§21.2201.Administration.

The Texas Higher Education Coordinating Board, or its successor or successors, shall enter into an agreement with the Texas Health and Human Services Commission (HHSC) and/or the Texas Department of State Health Services (DSHS) to administer the disbursement processes of the Medicaid Children's Loan Repayment Program. The agreement shall describe the respective roles and responsibilities of the Coordinating Board, the Texas Health and Human Services Commission and the Texas Department of State Health Services, including application review and selection, compliance monitoring, dissemination of information, and funds disbursement.

§21.2202.Dissemination of Information.

The Board shall provide a web link, on the appropriate Board web page(s), to the DSHS Internet site providing information about the program.

§21.2203.Definitions.

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

(1) Board--the Texas Higher Education Coordinating Board.

(2) Commissioner--the Commissioner of Higher Education, the Chief Executive Officer of the Board.

(3) DSHS--the Texas Department of State Health Services.

(4) HHSC--the Texas Health and Human Services Commission.

(5) Medicaid--the State and Federal cooperative venture that provides medical coverage to eligible needy persons.

(6) Program--the Medicaid Children's Loan Repayment Program.

(7) Service period--a twelve-month period during which a physician qualifies for repayment of education loans.

§21.2204.Provider Eligibility Requirements.

Applicants must:

(1) ensure that an application has been received by DSHS by the established deadline;

(2) hold an unrestricted license from the Texas Medical Board or the Texas State Board of Dental Examiners;

(3) if practicing in a subspecialty, be certified by or be eligible to sit for the applicable subspecialty board;

(4) have a Medicaid provider number;

(5) not be currently fulfilling an obligation to provide medical or dental services in the eligible area or facility;

(6) fulfill the four-year service obligation in the Medicaid Children's Loan Repayment Program before qualifying for loan repayment through any other state loan repayment program; and

(7) provide eligible services for four consecutive years and meet the target number of Medicaid visits by children under the age of 21 for each 12-month period as indicated on the following table:

Figure: 19 TAC §21.2204(7)

§21.2205.Eligible Education Loan.

To be eligible for repayment, an education loan must:

(1) have been made for undergraduate, graduate, or medical education at an accredited institution in the United States;

(2) not have been made during residency;

(3) not be from a loan made to oneself from one's own insurance policy or pension plan or from the insurance policy or pension plan of a spouse or other relative;

(4) not have an existing service obligation;

(5) not be subject to repayment through another student loan repayment or loan forgiveness program; and

(6) not be consolidated with non-education loans or with loans obtained by someone other than the provider applying for loan repayment.

§21.2206.Eligible Lender or Holder.

The Board shall retain the right of determining eligibility of lenders and holders of education loans to which payments may be made. An eligible lender or holder shall, in general, make or hold education loans made to individuals for purposes of undergraduate, medical and graduate medical education.

(1) An eligible lender or holder may be, but is not limited to, a bank, savings and loan association, credit union, institution of higher education, secondary market, governmental agency, pension fund, private foundation, or insurance company.

(2) An eligible lender or holder shall not be any private individual.

§21.2207.Repayment of Education Loans.

The total annual repayment to one or more eligible lenders or holders shall not exceed the applicant's unpaid loan balance.

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 February 9, 2009.

TRD-200900507

Bill Franz

General Counsel

Texas Higher Education Coordinating Board

Proposed date of adoption: April 30, 2009

For further information, please call: (512) 427-6114


PART 2. TEXAS EDUCATION AGENCY

CHAPTER 30. ADMINISTRATION

SUBCHAPTER B. STATE BOARD OF EDUCATION: PURCHASING AND CONTRACTS

19 TAC §30.21

The State Board of Education (SBOE) proposes an amendment to §30.21, concerning the historically underutilized business (HUB) program. The section addresses the HUB program, as required by statute. The proposed amendment would update the rule to reflect the transfer of HUB rules from the Texas Building and Procurement Commission (TBPC) to the Comptroller of Public Accounts.

Texas Government Code, §2161.003, directed each state agency to adopt the state's HUB rules as its own rules. Those rules applied to state agency construction projects and purchases of goods and services paid for with appropriated money. To comply with statute and on the advice of Texas Education Agency legal counsel, the SBOE adopted effective December 5, 2004, 19 TAC §30.21, Historically Underutilized Business (HUB) Program, which adopted by reference the TBPC rules concerning the HUB program.

House Bill 3560, 80th Texas Legislature, 2007, transferred certain procurement duties and powers, and the rules related to those duties and powers, from the TBPC to the Comptroller of Public Accounts. The rules concerning the HUB program were transferred and codified as new 34 TAC §§20.11 - 20.28 effective September 1, 2007. In conjunction with the adoption of the review of SBOE rules in 19 TAC Chapter 30, Subchapter B, during its January 2009, meeting the SBOE approved for first reading and filing authorization the proposed amendment to 19 TAC §30.21. The proposed amendment would update the SBOE's rule to reflect the transfer of HUB rules from the TBPC to the Comptroller of Public Accounts.

Shirley Beaulieu, associate commissioner for finance/chief financial officer, has determined that for the first five-year period the amendment is in effect there will be no additional costs for state or local government as a result of enforcing or administering the amendment.

Ms. Beaulieu has determined that for each year of the first five years the amendment is in effect the public benefit anticipated as a result of enforcing the amendment would be defining the SBOE's policy for implementing the HUB program, as required by statute. There is no anticipated economic cost to persons who are required to comply with the proposed amendment.

In addition, there is no direct adverse economic impact for small businesses and microbusinesses; therefore, no regulatory flexibility analysis, specified in Texas Government Code, §2006.002, is required.

Comments on the proposal may be submitted to Cristina De La Fuente-Valadez, Policy Coordination Division, Texas Education Agency, 1701 North Congress Avenue, Austin, Texas 78701, (512) 475-1497. Comments may also be submitted electronically to rules@tea.state.tx.us or faxed to (512) 463-0028. A request for a public hearing on the proposed amendment submitted under the Administrative Procedure Act must be received by the commissioner of education not more than 15 calendar days after notice of the proposal has been published in the Texas Register.

The amendment is proposed under the Texas Government Code, §2161.003, which authorizes the State Board of Education to adopt the HUB rules of the state as its own rules.

The amendment implements the Texas Government Code, §2161.003.

§30.21.Historically Underutilized Business (HUB) Program.

In accordance with the Texas Government Code, §2161.003, the State Board of Education adopts by reference the rules of the Comptroller of Public Accounts [ Texas Building and Procurement Commission], found at Title 34 [1] Texas Administrative Code, §§20.11-20.28 [§§111.11-111.28], concerning the Historically Underutilized Business (HUB) Program.

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

Filed with the Office of the Secretary of State on February 5, 2009.

TRD-200900445

Cristina De La Fuente-Valadez

Director, Policy Coordination

Texas Education Agency

Earliest possible date of adoption: March 22, 2009

For further information, please call: (512) 475-1497