Proposed Sections 
 Before an agency may permanently adopt a new or amended section, or repeal an 
existing section, a proposal detailing the action must be published in the Texas 
Register at least 30 days before any action may be taken. The 30-day time period 
gives interested persons an opportunity to review and make oral or written 
comments on the section. Also, in the case of substantive sections, a public 
hearing must be granted if requested by at least 25 persons, a governmental 
subdivision or agency, or an association having at least 25 members. 
 Symbology in proposed amendments. New language added to an existing section is 
indicated by the use of bold text. [Brackets] indicate deletion of existing 
material within a section. 
 
   
  TITLE 22. EXAMINING BOARDS 
 Part XXIII. Texas Real Estate Commission 
  Chapter 535. Provisions of the Real Estate License Act 
  
  Mandatory Continuing Education 
 
  22 TAC sec.535.71, sec.535.72 
 
  The Texas Real Estate Commission proposes amendments to  s535.71 and 
sec.535.72, concerning approval of mandatory continuing education (MCE) 
providers, courses and instructors, presentation of courses, advertising, and 
records. 
 The amendment to sec.535.71 adopts by reference a series of revised forms used 
by applicants and providers. Minor changes have been made in the forms to obtain 
additional information such as social security numbers or business addresses or 
to eliminate unnecessary questions and provide additional space for answers. Two 
forms which relate to course schedules and schedule changes would no longer be 
required and two new forms are proposed for adoption. MCE Form 10-0, MCE Out of 
State Course Credit Request, would be used by real estate licensees to request 
MCE credit for a course taken to satisfy continuing education requirements of 
another state. MCE Form 12-0, State Bar Course Credit Request, would be used by 
real estate licensees to request MCE credit for a course offered by the State 
Bar of Texas. 
 Throughout sec.535.71 and sec.535.72, references to the application forms would 
be changed, and some passages would be shortened or rephrased for clarity. 
 The amendment to sec.535.71 also clarifies that providers who offer a course 
originally approved for another provider must use all materials required in the 
original course. The amendment would permit MCE credit to be given for specific 
core real estate courses and MCE courses could be used to satisfy prelicensing 
or salesman annual educational requirements. Providers would be required to 
provide students with a copy of the course outline and bibliography submitted to 
the commission as a part of the course instructor manual. 
 The amendment to sec.535.72 would eliminate requirements for providers to file 
course schedules or changes to course schedules with the commission. Providers 
would no longer be permitted to use enrollment agreements in lieu of precourse 
announcements regarding required attendance. Restrictions would be removed on 
use of facilities controlled by or identified with real estate brokerage firms 
or real estate franchise organizations and on a provider's use of a name 
identifying brokerages or franchises. Providers would be required to include 
separate fees for course materials in their advertisements if course materials 
are not included in the tuition. 
 The amendment to sec.535.72 also would revise the guidelines for instructors to 
receive MCE credit. Instructors would continue to receive credit once for each 
course for the portion taught by the instructor but would have to attend all the 
remainder of the course to receive additional credit. 
 Donald C. Roose, Director of Education, has determined that for the first five-
year period the sections are in effect there will be no fiscal implications for 
state or local government as a result of enforcing or administering the 
sections. 
 Mr. Roose also has determined that for each year of the first five years the 
sections are in effect the public benefit anticipated as a result of enforcing 
the sections will be increased efficiency in the review and approval of MCE 
providers, courses and instructors, and clarification of the requirements for 
providers in the offering or advertising of courses. There will be no effect on 
small businesses. There is no anticipated economic cost to persons who are 
required to comply with the sections as proposed. 
 Comments on the proposal may be submitted to Donald C. Roose, Director of 
Education, Texas Real Estate Commission, P.O. Box 12188, Austin, Texas, 78711-
2188. 
 The amendments are proposed under Texas Civil Statutes, Article 6573a sec.5(h), 
which provide the Texas Real Estate Commission with the authority to make and 
enforce all rules and regulations necessary for the performance of its duties. 
 
 
  sec.535.71. Mandatory Continuing Education: Approval of Providers, Courses, 
and Instructors. 
 
  (a)-(b) (No change.) 
   
  (c) The commission adopts by reference the following forms [approved by the 
commission in 1990 and] published and available from the commission, P.O. Box 
12188, Austin, Texas 78711-2188: 
 
  (1) MCE Form <nl>1A-1<ol> [1A-0], MCE Provider Application; 
   
  (2) MCE Form <nl>1B-1<ol> [1B-0], MCE Provider Application Supplement; 
   
  (3) MCE Form <nl>2-2<ol> [2-1], MCE Principal Information Form; 
   
  (4) MCE Form <nl>3A-1<ol> [3A-0], MCE Course Application; 
   
  (5) MCE Form <nl>3B-2<ol> [3B-1], MCE Course Application Supplement; 
   
  (6) MCE Form <nl>3C-1<ol> [3C-0], MCE Single Course Offering Application; 
   
  (7) MCE Form <nl>4A-2<ol> [4A-1], MCE Instructor Application; 
   
  (8) MCE Form <nl>4B-2<ol> [4B-1], MCE Instructor Application Supplement; 
   
  [(9) MCE Form 5-2, MCE Course Schedule; 
   
  [(10) MCE Form 6-2, MCE Course Schedule Change Notice;] 
   
  <nl>(9) <ol>[(11)] MCE Form 7-0, MCE Course Completion Card; 
   
  <nl>(10)<ol>[(12)] MCE Form <nl>8-2<ol> [8-1], MCE Course Completion Roster; 
   
  <nl>(11)<ol>[(13)] MCE Form <nl>9-2<ol> [9-1], MCE Correspondence Course 
Reporting Form; [and] 
   
  <nl>(12) MCE Form 10-0, MCE Out of State Course Credit Request; 
   
  <nl>(13)<ol>[(14)] MCE Form <nl>11-3<ol> [11-2], MCE Instructor Credit 
Request<nl>; and 
   
  <nl>(14) MCE Form 12-0, State Bar Course Credit Request. 
     
  (d) (No change.) 
   
  (e) To be approved to offer a classroom course for MCE credit, the provider 
must satisfy the commission that the course subject matter is appropriate for a 
continuing education course for real estate licensees and that the information 
provided in the course will be current and accurate. 
 
  (1) A provider applicant must submit an MCE Form  <nl>3A-1<ol> [3A-0], MCE 
Course Application, the first time approval is sought to offer an MCE course. 
Once a course has been approved, no further approval is required for another 
approved provider to offer the same course<nl>. Prior to advertising or offering 
the course, however<ol>, [although] the subsequent provider must complete MCE 
Form 3B-1<nl>,<ol> [and] file the form with the commission <nl>, and receive 
written or oral acknowledgement from the commission that all necessary 
documentation has been filed<ol> [prior to advertising or offering the course]. 
Providers must submit an instructor's manual for each proposed course. A copy of 
the previously approved instructor's manual must also be submitted for each 
previously approved course the provider intends to offer. <nl>Subsequent 
providers must offer the course as originally approved or as revised with the 
approval of the commission and must use all materials required in the original 
or revised course.<ol> The commission will publish guidelines to aid providers 
in the development of instructor manuals. Each manual must contain the 
following: 
 
  (A)-(G) (No change.) 
     
  (2) The commission may approve a course for a single offering without regard 
to the requirements of paragraph (1) of this subsection. The provider must be 
approved by the commission in accordance with the provisions of this 
section<nl>. The<ol> [, and the] course may not be offered again during a 
providership unless the course has been approved by the commission for 
subsequent offerings by the original provider in accordance with the provisions 
of this section [and all requirements for approval, including payment of the 
application fee, have been satisfied]. The provider must submit MCE Form, 
<nl>3C-1<ol> [3C-0], MCE Single Course Offering Application. 
     
  (f) To be approved as an instructor of any MCE course, a person must satisfy 
the commission as to the person's competency in the subject matter to be taught 
and ability to teach effectively. An instructor applicant must submit through 
the proposed provider an MCE Form <nl>4A-2<ol> [4A-1], MCE Instructor 
Application, the first time approval is sought to teach an MCE course. For 
subsequent approval to teach a different course, an MCE Form  <nl>4B-2<ol> [4B-
1], MCE Instructor Application Supplement, must be submitted. Once an instructor 
has been approved to teach a course, no further approval is required for the 
instructor to teach the same course for another provider, although the 
subsequent provider must complete [the appropriate section of] MCE Form <nl>4B-2 
<ol> [4B-1] and file the form with the commission prior to using the instructor 
in the course. 
 
  (1) (No change.) 
   
  (2) The commission may also approve an instructor for a single offering of a 
course. The provider must submit an MCE Form <nl>3C-1<ol> [3C-0], MCE Single 
Course Offering Application, and provide additional information about the 
instructor's qualifications at the commission's request. 
     
  (g) (No change.) 
   
  (h) Fees shall be established by the commission in accordance with the 
provisions of the Real Estate Licensing Act, sec.7A, at such times as the 
commission deems appropriate. Fees are not refundable and must be submitted in 
the form of a cashier's check or money order, or, in the case of state agencies, 
colleges or universities, in a form of payment acceptable to the commission. If 
a provider seeks approval to offer a course previously approved for another 
provider, and less than one year remains for the course to be offered, the 
filing fee shall be one-half the current fee for approval of a course<nl>. 
Provided, <ol> [; provided] however, the full current fee is required for an 
application for approval of a single course offering. 
   
  (i)-(k) (No change.) 
   
  (l) A course must be devoted to one or more of the subjects specified under 
the course titles in the Act, sec.7(a)(2)-(4) and sec.7(a)(7)-(9), to real 
estate professionalism and ethics or to other subjects approved by the 
commission for MCE credit. MCE courses must be presentations of relevant issues 
and changes within the subject areas as they apply to the practice of real 
estate in the current market. The commission shall periodically publish lists of 
subjects other than legal topics which are approved for MCE credit. Courses 
approved by the commission for pre-licensing education or salesman annual 
education requirements provided in the Act, sec.7(d) and (e), <nl>may be 
accepted<ol> [are not acceptable] for satisfying MCE requirements <nl>provided 
the student attended the entire course<ol>, <nl>and<ol> [nor may] MCE courses 
<nl>may<ol> be accepted by the commission <nl>as real estate related courses 
<ol> for satisfying the education requirements of the Act, sec.7(d) and (e). The 
commission may not approve a course which promotes the sale of goods or services 
by the provider or by a vendor affiliated or associated with the provider. 
Providers may sell educational materials, such as textbooks or recordings, 
related to the subjects of the course. 
   
  (m) Providers must furnish students with copies, for students' permanent use, 
of <nl>the outline of the subject matter and bibliography or source of updated 
subject matter which were submitted to and approved by the commission as part of 
the course instructor manual<ol> [any printed material which is the basis for a 
significant portion of the course]. Ample space must be provided on handouts for 
notetaking or completion of any written exercises. 
   
  (n)-(p) (No change.) 
   
  (q)  To be approved to offer a correspondence course for MCE credit, the 
provider must satisfy the commission that the course subject matter is 
appropriate for a continuing education course for real estate licensees and that 
the information provided in the course will be current and accurate. An 
applicant must submit an MCE Form <nl>3A-1<ol> [3A-0], MCE Course Application, 
the first time approval is sought to offer an MCE correspondence course. Once a 
course has been approved, no further approval is required for another approved 
provider to offer the same course<nl>. Prior to advertising or offering the 
course, however,<ol> [although] the subsequent provider must complete MCE Form 
<nl>3B-2<ol> [3B-1]<nl>, <ol> [and] file the form together with the appropriate 
fee with the commission <nl>, and receive written or oral acknowledgement from 
the commission that all necessary documentation has been filed<ol> [prior to 
advertising or offering the course]. The commission will publish guidelines to 
aid providers in the development of correspondence courses. Each correspondence 
course must contain the following: 
 
  (1)-(8) (No change.) 
 
       
  sec.535.72. Mandatory Continuing Education: Presentation of Courses, 
Advertising, and Records. 
 
  (a) <nl>Providers are not required to file course schedules with the 
commission <ol> [Upon course approval a provider shall furnish the commission 
with an MCE Course Schedule, MCE Form 5-2, of all offerings of each course 
approved for MCE credit. The schedule must be filed at least 15 days prior to 
the date the first course will be presented]. 
   
  (b) <nl>Providers are not required to notify the commission of changes to 
their course schedules<ol> [Providers shall notify the commission of any change 
to a filed MCE Course Schedule, Form 5-2, by filing MCE Course Schedule Change 
Notice Form 6-2, no later than 10 days prior to the original starting date of 
the course. In the event of an emergency, including without limitation course 
cancellation or change in location of the course, providers shall immediately 
notify the commission by telephone, but no later than the beginning of the next 
business day]. 
   
  (c) The provider offering each MCE course shall file an MCE Course Completion 
Roster, MCE Form <nl>8-2 <ol> [8-1], and, for each student completing the 
course, an MCE Course Completion Card, MCE Form 7-0, with the commission within 
10 days following completion of the course. Prior to the commencement of each 
course, each student seeking MCE credit for that course shall print his or her 
name and license number on MCE Form <nl>8-2 <ol> [8-1]. The names of students 
not seeking MCE credit must not appear on MCE Form <nl>8-2 <ol> [8-1]. If the 
provider was in attendance, the provider shall sign MCE Form <nl>8-2<ol> [8-1]. 
If the provider was not in attendance, an authorized representative of the 
provider who was in attendance and for whom an authorized signature exemplar is 
on file with the commission shall sign MCE Form  <nl>8-2<ol> [8-1]. The 
commission may not accept signature stamps, unsigned forms, or forms signed by 
persons for whom an authorized signature exemplar has not been previously filed 
with the commission. Providers must make every reasonable effort to ensure that 
no student is certified for MCE credit who has not attended all class sessions. 
Providers may not use students for administration or monitoring duties during 
the course if the use prevents the student's participation in a significant 
portion of the course. 
   
  (d) (No change.) 
   
  (e) Providers of MCE correspondence courses shall furnish each student with an 
MCE Correspondence Course Reporting Form, MCE Form <nl>9-2<ol> [9-1], at the 
time of the final examination. Upon completion of the examination the student 
shall sign MCE Form <nl>9-2<ol> [9-1]. To report successful course completion 
the provider shall file the completed MCE Form <nl>9-2<ol> [9-1] with the 
commission. Providers may not report correspondence courses on MCE Forms [5-2, 
6-2,] 7-0, <nl>8-2 <ol> [8-1], or <nl>11-3 <ol> [11-2]. 
   
  (f) A provider shall, prior to commencement of a course, announce that the 
provider will not certify a student for MCE credit unless the student attends 
all sessions of the course, that partial credit will not be given for partial 
attendance, that no makeups or written work will be allowed for MCE credit, that 
the student must determine if the course is timely and appropriate for the 
student's MCE requirement, and that the student should retain the detachable 
portion of MCE Form 7-0 as documentation of attendance. In <nl>addition to<ol> 
[lieu of] the pre-course announcements, the provider  <nl>is encouraged to<ol> 
[may] require each student to sign an enrollment agreement containing the 
foregoing information prior to the start of the course. If the provider has not 
advertised or otherwise made students aware of the provider's refund policy, the 
enrollment agreement must also contain the refund policy. If the course is 
offered in one continuous session with no meal break and no more than four hours 
of MCE credit is awarded, the provider may verify attendance by use of a course 
completion card, MCE Form 7-0, signed by each student attending all of the 
course. If the course involves a meal break or is presented in more than one 
session, such as a course offered for three hours each day for five days, the 
provider shall verify attendance prior to the beginning of each session, using 
the original course completion roster, MCE Form <nl>8-2 <ol> [8-1], as the 
enrollment record. A provider shall retain attendance records for the period of 
time required by these sections for the retention of provider records. 
   
  (g) (No change.) 
   
  (h) Providers may not present MCE courses in the offices of[, or facilities 
controlled by, or identified with,] a real estate brokerage firm or real estate 
franchise organization. All MCE courses must be publicized as open to enrollment 
by the general public. Providers may give preference in enrollment to persons 
who need MCE credit to obtain, renew, or activate a license and may enroll all 
others on a space available basis. 
   
  (i) Advertising of MCE shall be subject to the following conditions. 
 
  (1) A person may not advertise a specific MCE course or represent in 
advertising that the person is [or will be] a provider until the person has 
received written approval from the commission for the providership and at least 
one course [or the provider has been approved and has notified the commission 
that the provider intends to offer a course previously approved for another 
provider]. A person may advertise an intention to offer MCE courses if no 
specific course is described and the advertisement clearly indicates the person 
has not been approved as a provider. 
   
  (2)  A provider may not advertise <nl>that a course has been approved <ol> or 
offer a course until the provider has received written approval of the 
course<nl>. If, however, <ol> [or if] the course has been previously approved 
for another provider,  <nl>the course may be advertised once<ol> [until] the 
commission has been notified of the provider's intention to offer the same 
course <nl>and the provider has received written or oral acknowledgment from the 
commission that all necessary documentation has been filed. 
   
  (3)-(5)  (No change.) 
   
  (6) Any name a provider uses in advertising must not be deceptively similar to 
the name of any other approved MCE provider or school accredited by the 
commission or falsely imply a governmental relationship [or identify a real 
estate brokerage or franchise organization]. 
   
  <nl>(7) If a provider requires students to purchase course materials which are 
not included in the tuition, any such fees must appear in the advertisement of 
the course. 
     
  (j) Providers shall retain student attendance records, including copies of 
completed MCE Form <nl>8-2<ol> [8-1], for a period of three years following the 
completion of a course and shall make copies of the records available to former 
students. A provider may charge a reasonable fee to defray the cost of copying 
student records. A provider's records must be kept at the location designated in 
the MCE Provider Application. Providers must obtain prior approval from the 
commission to change the location at which the provider's records are kept. 
   
  (k)-(l)  (No change.) 
   
  (m) Providers shall request permission to change business name, street or 
mailing address, ownership, person responsible for records or day-to-day 
operations, or persons authorized to sign MCE forms at least 15 days prior to 
the desired date of change. Providers shall report any change in refund policy, 
attorney-in-fact, address of attorney-in-fact, or business telephone number as 
the change occurs. All changes must be submitted on MCE Form <nl>1B-1<ol> [1B-
0], MCE Provider Application Supplement. 
   
  (n)-(o) (No change.) 
   
  (p) Providers may request MCE credit be given to instructors of MCE courses 
subject to the following guidelines. 
 
  (1) The instructors <nl>may receive credit for portions<ol> [must teach or be 
present for at least three hours] of the course <nl>which they teach. 
   
  (2) <nl>The instructors may receive full course credit by attending all of the 
remainder of the course <ol> [Credit may be requested only for time spent in 
classroom teaching or a combination of teaching and classroom attendance]. 
   
  (3) MCE credit may be <nl>granted<ol> [requested] only once for each course. 
   
  (4) The provider must report the instructor on MCE Form <nl>11-3<ol> [11-2], 
and file that form with the commission along with other required forms for the 
course. The provider may not submit MCE Course Completion Card, MCE Form 7-0, 
for the instructor or obtain the signature of the instructor as a student on MCE 
Form <nl>8-2<ol> [8-1]. 
     
  (q)-(r) (No change.) 
 
  This agency hereby certifies that the proposal has been reviewed by legal 
counsel and found to be within the agency's authority to adopt. 
 Issued in Austin, Texas, on January 22, 1993. 
 TRD-9318139 
  Mark A. Moseley 
 General Counsel 
 Texas Real Estate Commission 
    Earliest possible date of adoption: March 5, 1993 
 For further information, please call: (512) 465-3900 
         
             
  Licenses 
 
  22 TAC sec.535.92 
 
  The Texas Real Estate Commission proposes an amendment to sec.535.92, 
concerning license renewals and satisfaction of mandatory continuing education 
(MCE) requirements. 
 The amendment clarifies that real estate brokers may have a license on inactive 
status. Like inactive salesmen, the inactive brokers would be required to 
furnish a residence address to the commission and report subsequent changes of 
address. The amendment also would permit the commission to issue a license to a 
previously licensed applicant prior to completing the investigation of a pending 
complaint; the license would be subject to disciplinary action based on the 
complaint. 
 The amendment also deletes language referring to inactive status that might be 
provided by the commission's enabling law, Texas Civil Statutes, Article 6573a; 
inactive status for brokers and salesmen is now expressly provided by the law. A 
number of nonsubstantive changes are made for clarity and to conform the section 
with the commission's current practice of permitting renewal applications to be 
filed no later than the day the license expires. The amendment also would 
require licensees to use forms approved by the commission when requesting MCE 
credit either for courses satisfying another state's continuing education 
requirements or for courses offered by the State Bar of Texas. 
 Donald C. Roose, Director of Education, has determined that for the first five-
year period the section is in effect there will be no fiscal implications for 
state or local government as a result of enforcing or administering the section. 
 Mr. Roose also has determined that for each year of the first five years the 
section is in effect the public benefit anticipated as a result of enforcing the 
section will be clarification of the requirements for renewal of a real estate 
license. There will be no effect on small businesses. There is no anticipated 
economic cost to persons who are required to comply with the section as 
proposed. 
 Comments on the proposal may be submitted to Donald C. Roose, Director of 
Education, Texas Real Estate Commission, P.O. Box 12188, Austin, Texas 78711-
2188. 
 The amendment is proposed under Texas Civil Statutes, Article 6573a, sec.5(h) , 
which authorize the Texas Real Estate Commission to make and enforce all rules 
and regulations necessary for the performance of its duties. 
 
 
  sec.535.92. Renewal: Time for Filing; Satisfaction of Mandatory Continuing 
Education Requirements. 
 
  (a)-(c) (No change.) 
   
  (d)  An inactive <nl>broker or inactive<ol> salesman may renew a license by 
complying with the renewal procedures established by the commission. [An 
"inactive salesman" is a licensed salesman who is not sponsored by a licensed 
broker.] An inactive <nl>licensee<ol> [salesman] shall furnish a residence 
address at the time the <nl>licensee<ol> [salesman] becomes inactive and report 
all subsequent address changes. 
   
  (e) (No change.) 
   
  (f) Each licensee shall, as a condition of maintaining a license, pay the 
renewal fee [or fees when requested to do so by the commission. Payment of 
renewal fees must be made] no later than the day the current license expires. A 
licensee who fails timely to pay a renewal fee must <nl>apply for and receive a 
new active license in order to act as a real estate broker or salesman <ol> 
[file an original application which has been approved to regain licensure]. If 
the [original] application is filed <nl>within one year after<ol> [prior to] the 
expiration of an existing license, the commission may issue the new license 
prior to completing the investigation of any complaint pending against the 
applicant or of any matter revealed by the application without waiving the right 
to initiate an action to suspend or revoke the license after notice and hearing 
in accordance with the Act, sec.17. 
   
  (g) (No change.) 
   
  (h) If a licensee files a timely application to renew a license but has not 
satisfied applicable MCE requirements, the commission shall advise the applicant 
of the number of MCE hours required to renew the license and the time for 
satisfying MCE requirements. If MCE requirements have not been satisfied by the 
expiration date of the existing license, [and an inactive status is provided by 
the Act for the license,] the commission shall place the license in an inactive 
status. [If MCE requirements have not been satisfied by the expiration date of 
the existing license and no inactive status is provided by the Act for the 
license, the license expires; the licensee must then file an original 
application for a license which must be approved by the commission before a new 
license is issued.] Original applications and return to active status are 
subject to MCE requirements imposed by the Act. [If a application is filed prior 
to the expiration of the current license the licensee must satisfy the MCE 
requirements that would have been imposed for a timely renewal. 
   
  (i)  A real estate licensee shall not receive MCE credit for a license renewal 
unless the licensee attends all of the MCE course. Credit shall not be given for 
attendance of the same course more than once during the term of the current 
license or during the two-year period preceding the filing of an  
<nl>application for late renewal or return to active status <ol> [original 
application]. Each licensee attending all sessions of a course shall sign the 
course completion form, MCE Form 7-0. A false statement to the commission 
concerning attendance at an MCE course shall be deemed a violation of the Act, 
<nl>sec.15(a)(2)<ol> [sec.15(2)], and of this section. 
   
  (j) <nl>A course<ol> [Courses] taken by a Texas licensee to satisfy 
<nl>continuing education<ol> [MCE] requirements of another state may be approved 
on an individual basis for MCE credit in this state upon the commission's 
determination that: 
 
  (1) (No change.) 
   
  (2) the course was approved for <nl>continuing education<ol> [MCE] credit by 
the other state; 
   
  (3) the Texas licensee's successful completion of the course has been 
evidenced by a course completion certificate, a letter from the provider, or 
such other proof as is satisfactory to the commission; [and] 
   
  (4) the subject matter of the course was predominately devoted to a subject 
acceptable for MCE credit in this state <nl>; and [.] 
   
  <nl>(5) the Texas licensee has filed MCE Form 10-0, MCE Out of State Course 
Credit Request, with the commission. 
     
  <nl>(k) A licensee shall file MCE Form 12-0, State Bar Course Credit Request, 
with the commission to request MCE credit for real estate related courses 
approved by the State Bar of Texas for minimum continuing legal education 
participatory credit. 
 
  This agency hereby certifies that the proposal has been reviewed by legal 
counsel and found to be within the agency's authority to adopt. 
 Issued in Austin, Texas, on January 22, 1993. 
 TRD-9318138 
  Mark A. Moseley 
 General Counsel 
 Texas Real Estate Commission 
    Earliest possible date of adoption: March 5, 1993 
 For further information, please call: (512) 465-3900 
         
                   
  TITLE 37. PUBLIC SAFETY AND CORRECTIONS 
 Part I. Texas Department of Public Safety 
  Chapter 3. Traffic Law Enforcement 
  
  Accident Investigation 
 
  37 TAC sec.3.10 
 
  The Texas Department of Public Safety (DPS) proposes new  s3.10, concerning 
DWI accident response cost recovery-billing for services. Texas Civil Statutes, 
Article 6701l-1, sec.(n), requires the department to bill for services in 
response to an accident involving driving while intoxicated (DWI). Members of 
the department charging a DWI offense where the offense directly resulted in an 
accident requiring DPS response shall initiate billing for services. 
 Melvin C. Peeples, Assistant Chief of Fiscal Affairs, has determined that for 
the first five-year period the section is in effect there will be fiscal 
implications for state or local government as a result of enforcing or 
administering the section. The department has no historical data on which to 
estimate increase in revenue for state government. Any effect on local 
government is not applicable to DPS. 
 George C. King, Chief of Traffic Law Enforcement, also has determined that for 
each year of the first five years the section is in effect the public benefit 
anticipated as a result of enforcing the section will be to ensure the public 
that the department complies with statutory requirements to bill for services in 
DWI accident responses. There will be no effect on small businesses. The 
anticipated economic cost to persons who are required to comply with the section 
as proposed cannot be determined. 
 Comments on the proposal may be submitted to John C. West, Jr., Texas 
Department of Public Safety, Box 4087, Austin, Texas 78773-0001, (512) 465-2000. 
 The new section is proposed under the Texas Government Code, sec.411.004(3) and 
sec.411.006(4), which provides the director with the authority to adopt rules 
necessary for the control of the department, subject to the Public Safety 
Commission's approval. 
 
 
  sec.3.10. DWI Accident Response Cost Recovery-Billing for Services. 
 
  (a) Pursuant to Texas Civil Statutes, Article 67011-1, sec.(n), the Texas 
Department of Public Safety (DPS) complies with the requirement to bill for 
services in response to an accident involving driving while intoxicated (DWI). 
   
  (b) Members charging a DWI offense where the offense directly resulted in an 
accident requiring DPS response shall initiate billing for services. 
 
  This agency hereby certifies that the proposal has been reviewed by legal 
counsel and found to be within the agency's authority to adopt. 
 Issued in Austin, Texas, on January 11, 1993. 
 TRD-9318140 
  James R. Wilson 
 Director 
 Texas Department of Public Safety 
    Earliest possible date of adoption: March 5, 1993 
 For further information, please call: (512) 465-2000 
         
                   
  TITLE 40. SOCIAL SERVICES AND ASSISTANCE 
 Part IX. Texas Department on Aging 
  Chapter 255. State Delivery Systems 
  
  Planning and Service Areas Designation 
 
  40 TAC sec.255.12 
 
  The Texas Department on Aging proposes an amendment to  s255.12, concerning 
state procedures to designate planning and service areas. It incorporates into 
the Texas Administrative Code important aspects of the changes made to the Older 
Americans Act of 1965 as amended by the 1992 amendments. 
 Ann Ammons, director of field operations, Texas Department on Aging, has 
determined that for the first five-year period the section is in effect there 
will be no fiscal implications as a result of enforcing or administering the 
section. 
 Ms. Ammons also has determined that for each year of the first five years the 
section is in effect the public benefit anticipated as a result of enforcing the 
section will be greater understanding of the roles and missions of area agencies 
on aging as a result of incorporating new language and simplifying previous 
language in the rule. There will be no effect on small businesses. There is no 
anticipated economic cost to persons who are required to comply with the section 
as proposed. 
 Request for public comment on the proposal may be submitted to Ann Ammons, 
Director of Field Operations, Texas Department on Aging, P.O. Box 12786, Austin, 
Texas 78711. 
 The new section is proposed under the Human Resources Code, sec.101, which 
provides the Texas Department on Aging with the authority to promulgate rules 
governing the operation of the Department. 
 
 
  sec.255.12. Designation of <nl>Planning and Service Area (PSA) 
 
  (a) A proposed PSA shall either be <nl>a combination of <ol>[contiguous with] 
or a subdivision of state planning regions as delineated by the governor and 
authorized by <nl>Local Government Code 391 <ol>[Texas Civil Statutes, Article 
1011m]. <nl>A proposed PSA should not split an existing PSA. 
   
  (b) Existing PSAs shall continue to be designated unless [there is:] <nl>the 
designation of another PSA is necessary for the assurance of the efficient and 
effective administration of the programs authorized by the Older Americans Act. 
 
  [(1) demonstrated evidence that designation of an existing PSA is manifestly 
consistent with the purpose of the rules and regulations issued pursuant to the 
Act; or 
   
  [(2) the designation of another PSA is necessary for the assurance of the 
efficient and effective administration of the programs authorized by Title III 
of the Act and operating in the state.] 
     
  (c) <nl>The Texas Department on Aging <ol>[Committee] will document the basis 
for its designation of each PSA. 
   
  (d)<nl> State procedures to provide due process to affected parties, if the 
state agency initiates an action or proceedings to revoke designation, designate 
additional PSAs, divide the state into different PSAs, or other action otherwise 
affecting the boundaries of the PSA in the state will be as follows 
<ol>[Department will designate PSAs no later than December 1 of the year 
preceding the development of the two-year state plan]. 
 
  <nl>(1)  The State agency will provide notice of an action or proceedings to 
the affected area agencies on aging, grantee organizations and citizens advisory 
councils by certified mail. 
   
  <nl>(2) The State agency will provide in the notice the documentation for the 
need of the action or proceedings as follows: 
 
  <nl>(A) statutory authority for the action; and 
   
  <nl>(B) summary of projected impact of action on clients within service areas 
affected, and the improvements in service that will result from said action. 
     
  <nl>(3) The State agency will conduct public hearings for the action or 
proceedings as follows: 
 
  <nl>(A) hold hearings at strategic geographic locations across the state; 
   
  <nl>(B) give legal notice in local and regional newspapers of the times, 
dates, and locations of the public hearings at least 10 dates in advance; 
   
  <nl>(C) maintain a record, by registration of participants; and 
   
  <nl>(D) receive a report consisting of a summary of all oral testimony 
received at the hearings, copies of all written testimony, and a tabulation and 
listing of all persons attending. The report on the hearings will be presented 
in a public meeting of the Board within 30 days of the completion of the 
hearings. 
     
  <nl>(4)  The State agency will request written comment from area agencies on 
aging, service providers, and older individuals on the action or proceedings. 
   
  <nl>(5) The State agency will allow an appeal to the Administration on Aging 
Commissioner of the decision of the Texas Board on Aging on the action or 
proceedings. 
   
  <nl>(6) The State agency will provide a plan for an orderly transition to 
ensure continuity in the provision of services to older persons in the PSA of 
any adversely affected grantee organization. 
     
  <nl>(e) An adversely affected party involved in an action or proceedings 
described in subsection (d) of this section, pertaining to due process, may 
bring an appeal as provided in subsection (d)(5) of this section, pertaining to 
appeals to the Commissioner on Aging, on the basis of the following: 
 
  <nl>(1) the facts and merits of the matter that is the subject of the action 
or proceeding; or 
   
  <nl>(2) procedural grounds. 
     
  <nl>(f) The Administration on Aging Commissioner's decision on the appeal 
described in subsection (d)(5) of this section, pertaining to submission of 
appeals to the Administration on Aging, may affirm or set aside the decision of 
the State agency and the Texas Board on Aging. If the Administration on Aging 
Commissioner sets aside the decision, the State agency shall nullify its action. 
 
  This agency hereby certifies that the proposal has been reviewed by legal 
counsel and found to be within the agency's authority to adopt. 
 Issued in Austin, Texas, on January 27, 1993. 
 TRD-9318222 
  Mary Sapp 
 Executive Director 
 Texas Department on Aging 
    Earliest possible date of adoption: March 5, 1993 
 For further information, please call: (512) 444-2727 
         
               Chapter 270. Adult Day Care 
  
  Statutes and Regulations 
 
  40 TAC sec.270.1 
 
  The Texas Department on Aging proposes new sec.270.1, concerning provision of 
adult day care as a service authorized under the Older Americans Act, Title III, 
as amended. This chapter establishes definitions, policies, and procedures to be 
followed when area agencies contract for this service or when they monitor this 
service to determine its effectiveness in promoting the health and independence 
of the elderly of Texas. 
 Ann Ammons, director of field operations, Texas Department on Aging, has 
determined that for the first five-year period the section is in effect there 
will be no fiscal implications for state or local government as a result of 
enforcing or administering the section. 
 Ms. Ammons, also has determined that for each year of the first five years the 
section is in effect, the public benefit anticipated as a result of enforcing 
the section will be greater understanding of the processes required of area 
agencies on aging to assure proper components of this service are included in 
contract stipulations and that monitoring of contracting programs is based on 
clear requirements established by the department. There is no effect on small 
businesses. 
 There is no anticipated economic cost to persons who are required to comply 
with the section as proposed. 
 Request for public comments on the proposal may be submitted to Ann Ammons, 
Director of Field Operations, Texas Department on Aging, P.O. Box 12786, Austin, 
Texas 78711. 
 The new section is proposed under the Human Resources Code, sec.101, which 
provides the Texas Department on Aging with the authority to promulgate rules 
governing the operation of the department. 
 
 
  sec.270.1. Adult Day-Care Service Standards. 
 
  (a) Purpose. This chapter establishes policies and procedures to be followed 
when area agencies on aging foresee the need to contract for and oversee the 
delivery of adult day care services in their planning and service area. 
   
  (b)  Definitions. The following words and terms, when used in this chapter, 
shall have the following meanings, unless the context clearly indicates 
otherwise. 
     
   Adult Day Care -An array of services provided in a congregate setting to 
dependent older adults who need supervision but do not need 
institutionalization. These services may include any combination of 
social/recreational activities, health maintenance and monitoring, 
transportation, food, counseling, and/or physical therapy. 
   
   Unit of service -The unit of service is half a day. Three hours but less than 
six hours of covered service provided by the facility constitute one unit of 
service. Six hours or more of service constitute two units of service. Time 
spent in transportation provided by the facility shall be counted in the unit 
rate. 
   
   Service objective -The objective of adult day care services is to provide 
assistance to recipients residing in the community to prevent premature 
institutionalization and to provide respite for caregivers. Services are 
designed to address the physical, mental, social, and medical needs of clients 
through the provision of rehabilitative/restorative nursing and social services. 
   
   Target group-The program shall be provided for persons 60 years of age or 
older with priority given to meeting the needs of persons with the greatest 
economic or social needs and: 
 
  (A) who may not need continuing nursing care, but who require complete, 
full/part-time supervision in order to live in their own home or in the home of 
a relative; and/or 
   
  (B) who need assistance with activities of daily living in order to maintain 
themselves in the community; and/or 
   
  (C) who need intervention in the form of enrichment and opportunities for 
social interaction in order to prevent deterioration that would lead to an 
alternative housing placement. 
   
  (c) Service Activities. Adult Day care services program will provide or make 
arrangements for the provision of all the basic services provided as nursing 
services, physical rehabilitative services, nutrition services, other supportive 
services, and transportation services. 
 
  (1) Nursing services will consist of: 
 
  (A)  assessing, observing, evaluating, and documenting a client's health 
condition and instituting appropriate intervention to stabilize or improve the 
client's condition to prevent complications; 
   
  (B) assisting the recipient in ordering medications; 
   
  (C) counseling the client on health needs and illness and involving 
significant others in the discussions of the immediate and long-term goals; and 
   
  (D) providing or supervising personal care services. The goal is to enable the 
client to restore, maintain, or improve his ability to perform such tasks. 
     
  (2) physical rehabilitative will consist of the following: 
 
  (A) restorative nursing; and 
   
  (B) group and individual exercises, including range of motion. 
     
  (3) nutrition services will consist of the following: 
 
  (A) one hot noon meal served between 11 a.m.-1 p.m. which supplies of the 
recommended daily allowance (RDA) for adults as recommended by the United States 
Department of Agriculture; 
   
  (B) special diets as required by the client's plan of care; 
   
  (C) supplementary mid-morning and mid-afternoon snack; and 
   
  (D) dietary counseling and nutrition education for the client and caregiver. 
     
  (4) Other supportive services will consist of cultural enrichment, 
educational, or recreational activities, and other social activities on site or 
in the community in a planned program to meet the social needs and interests of 
the clients. 
   
  (5)  Transportation services will ensure that the facility make an efforts to 
provide transportation to and from the facility, if at all possible. If not, 
then staff will assist clients with other transportation arrangements. 
     
  (d) Service Outcomes. Services are designed to address the physical, mental, 
medical, and social needs of clients. The following depicts the service outcomes 
which should be the result of the Adult Day Care program. 
 
  (1) The client will be able to remain in a family environment, thereby 
allowing the family/caretaker a respite. 
   
  (2) The programs offered will be of a variety so that all clients will have 
the opportunity to participate at their individual level of capacity. 
   
  (3) The staff will have sufficient training in order to supervise clients in 
all program activities. This should include their ability to assess and 
recognize special clients' needs. 
   
  (4) The nursing program will provide quality instruction, education, 
supervision and consultation for the facility. 
   
  (5) The nutrition program will meet all RDA requirements as well as be 
pleasing to the program's participants. A nutritious, therapeutic diet will be 
planned to meet clients' individual needs. 
   
  (6) Clients' safety and accessibility needs will be considered during 
transportation efforts. 
     
  (e)  Service Provider Eligibility. The following criteria must be met by a 
potential provider agency if it submits an application to provide Adult Day Care 
services. 
 
  (1) A facility licensed by the Texas Department of Public Health to provide 
adult day care services is eligible as a service provider. 
   
  (2) The provider agency contracted to deliver care must do so according to the 
requirements in the contract with the area agency on aging (AAA) and the Texas 
Department on Aging Standards, as applicable. 
   
  (3)  Providers must meet all requirements of Title VI of the Civil Rights Act, 
the Rehabilitation Act of 1973, sec.504, the Age Discrimination Act of 1975, and 
the Americans with Disabilities Act of 1990. 
     
  (f) Facility Requirements. The service provider must ensure that the following 
requirements are met by the facility: 
 
  (1) a written daily activity schedule posted at least one week in advance; 
   
  (2) make available a brochure or letter which outlines the hours of operation, 
holidays, and a description of activities offered; 
   
  (3) emergency phone numbers posted near all phones; 
   
  (4) have an area available as a treatment/examination room; 
   
  (5)  have a safe, secure, and suitable outdoor recreation and relaxation area 
for participants; 
   
  (6) have an adequate supply of materials for program activities; 
   
  (7) have first aid supplies, as recommended by the American Red Cross, on the 
premises; 
   
  (8) have sufficient chairs and tables to seat all clients, comfortably, at one 
time; 
   
  (9) have a provision for a quiet room/rest area indoors separate from other 
project activity; 
   
  (10) provision for a non-smoking area made to ensure the comfort of non-
smoking participants; 
   
  (11) if located in a multipurpose center, the day care program self-contained 
with its own area and staff. 
     
  (g) staffing. The project will employ personnel sufficient to provide services 
to meet the needs of each client. Minimum requirements are as follows for the 
director or supervisor, the facility nurse, the activities director, the 
attendant, the house keeper/driver, dietitian consultant, and registered nurse 
consultant: 
 
  (1) Director or supervisor must have graduated from an accredited four year 
college or university and have one year of experience in human services or have 
an Associate Degree with three years of experience in human services or 
medically related program: 
 
  (A) be a registered nurse with one-year experience in a human service or 
medically related program; or 
   
  (B) meet the training and experience for a license as a nursing home 
administrator under the rules of the Texas Board of Licensure for Nursing Home 
Administrators. 
     
  (2) The facility nurse must be a registered nurse (RN) or a licensed 
vocational nurse (LVN). The facility nurse may also fulfill the function of 
facility director if he meets the qualifications for director. 
   
  (3) The activities director may fulfill the function of facility director if 
he meets the qualifications. One person cannot serve as nurse, director, and 
activities director, regardless of qualifications. The activities director must: 
 
  (A) have graduated from high school and; 
   
  (B) have two years of college plus two years of experience in working with the 
elderly; or 
   
  (C) have completed a state-approved activities director's course plus two 
years of experience in a patient-activities program in a healthcare setting. 
     
  (4) The attendant is responsible for: 
 
  (A) providing assistance with activities of daily living; 
   
  (B) assisting the activities director with recreational activities; 
   
  (C) providing protective supervision (observation and monitoring); and 
   
  (D) directing activities under the supervision of the activities director. 
     
  (5) The housekeeper/driver, if one is employed, is responsible for: 
 
  (A) operating the facility's vehicles in a safe manner; 
   
  (B) maintaining accurate daily mileage and expenditure records; and 
   
  (C) providing housekeeping and laundry services. 
     
  (6) The Dietitian Consultant is required as the facility must receive 
consultation from a dietician who plans and gives approval to luncheon menus. 
The dietitian should recommend nutritious snacks for mid-morning and mid-
afternoon. 
   
  (7) The Registered Nurse consultant is required in facilities where the nurse 
is a licensed vocational nurse. A registered nurse consultant must work with the 
regular facility staff as a part of the team. The following types of assistance 
are appropriate tasks for the registered nurse consultant: 
 
  (A) reviewing plans of care and suggesting changes to them, if appropriate; 
   
  (B) assessing clients' health conditions; 
   
  (C) consulting with the LVN in solving problems involving client care and 
service planning; 
   
  (D) counseling clients on their health needs; 
   
  (E) training, consulting, and assisting the LVN in maintaining proper medical 
records; and 
   
  (F) in-service training for direct service staff. 
       
  (h) Staffing requirements. The intent of staffing requirements is to ensure 
that a responsible professional is at the facility when clients are present. 
 
  (1) Duty schedules and staffing patterns must be developed to ensure that at 
least the nurse, the facility director, or the activities director be in the 
facility when clients are present. 
   
  (2) The agency must ensure that the overall ratio of clinical service staff to 
clients is a least one to eight. 
   
  (3) All direct service staff must be free of communicable diseases. 
   
  (4) If volunteers are used as attendants, they must be free of communicable 
diseases, able to perform the duties prescribed, and 18 years of age or older. 
     
  (i)  Training and Staff Development. A number of training requirements must be 
complied with by the service provider to ensure that performance of staff and 
safety of clients requirements are met. 
 
  (1) The facility must provide all staff with training in the fire/disaster and 
evacuation procedures within three workdays of employment. 
   
  (2) The facility must provide each client with training in the fire/disaster 
and evacuation plan within 30 days from the date of service initiation. 
   
  (3) The facility must provide direct delivery staff with a minimum of 24 hours 
of training during the first three months of employment and documenting that 
training includes: 
 
  (A)  safety and emergency procedures, including the Heimlich maneuver; 
   
  (B)  cardiopulmonary resuscitation; 
   
  (C) orientation to community resources; 
   
  (D) contracted and departmental agency policies, procedures, and forms; 
   
  (E) confidentiality as required by law; 
   
  (F) applicable health and safety codes, ordinances, and regulations; 
   
  (G) orientation to health care delivery including the following: 
 
  (i) basic body function and mechanics; 
   
  (ii) personal care techniques and procedures; 
   
  (iii) the aging process and implications for care; and 
   
  (iv) identification of abuse, neglect, or exploitation; and 
     
  (H) staff employed as substitutes on an infrequent basis are not required to 
have 24 hours of initial training. Substitutes, consultants, and volunteers must 
receive a minimum of three hours of orientation. 
       
  (j) Ongoing training. The facility must also provide a minimum of three hours 
of ongoing training to direct services staff during each consecutive three 
month-period after the first three months of employment. This training must 
include, but is not limited to, the following topics within a year from the 
employee's hire date: 
 
  (1) first aid; 
   
  (2)  basic nutritional needs; 
   
  (3) activity and exercise for elderly and handicapped; 
   
  (4) mobility; 
   
  (5) special skin care needs; 
   
  (6) reality orientation/remotivation; 
   
  (7) death and dying; 
   
  (8) recreation needs; and 
   
  (9) cardiopulmonary resuscitation (CPR) refresher training. 
     
  (k) Records. Records will be maintained on all clients. The facility must 
ensure that each client's record contains at least the following information. 
 
  (1) initial assessment (Forms 2060 & 2059's); 
   
  (2) pertinent medical records; 
   
  (3) significant changes in the client's condition; 
   
  (4) significant complaints and results of investigation of complaints; 
   
  (5) records of termination; 
   
  (6) documentation, that the client was notified of complaint procedures and 
client rights; and 
   
  (7) a daily record of all treatments. 
   
  (8) plan of care records. For each client, the nurse and activities director 
must jointly develop a plan of care that includes information from the Form 2059 
p.1-p.2. A meeting must be conducted at least once every six months by the 
facility director. At this meeting the program plan for the next six months and 
all new and modified individual plans of care must be described/discussed. Any 
significant changes in the plan of care which may affect eligibility or units of 
service must be discussed with the case manager before the effective date of 
change; 
   
  (9) miscellaneous records. The facility must maintain a daily record of 
attendance; 
   
  (10) incident reports. The facility must maintain incident reports. These 
reports include falls, arguments and allegations of abuse, neglect or 
exploitation; 
   
  (11)  vehicle operations. The facility must manage upkeep and operations of 
facility vehicles. If transportation is provided by the facility, the drivers 
records must indicate the date and time of service provision. Records will also 
include provision of liability insurance and vehicle records indicating 
compliance with Texas Department of Public Safety inspection requirements; 
   
  (12) financial records. In a central location in the facility, staff must 
maintain financial records according to recognized fiscal and accounting 
procedures. These records include details on charges and payments made on behalf 
of each client. These records should be kept up to date and be made available 
for review without notice by TDPH, TDoA, or any other authorized agency; 
   
  (13) personnel records. Staff must keep personnel records in a central 
location in the facility. These records include staff qualifications, 
performance reports, attendance records, and staff development records. 
     
  (l) Administering of Medications. 
 
  (1) Clients are allowed to self-administer their own medication. Medications 
that are not self-administered may be given only by the facility nurse. The 
nurse must document this in the facility's records. 
   
  (2) The facility must ensure that each client has an individual medication 
record for medications administered by the facility nurse. The nurse must record 
the dose and method of administration. Staff should sign and date all entries. 
   
  (3) All medications must be labeled and stored according to established 
federal and state laws and the following requirements (except for self-
administered medications that the client may keep). 
 
  (A) The clients' medication must be labeled and stored in a locked medical 
room or cabinet approved by the licensing agency. Staff must ensure that the 
label of each client's medication container clearly indicates: 
 
  (i) name and address of the pharmacy; 
   
  (ii) client's full name; 
   
  (iii) prescribing physician's name; 
   
  (iv) date prescription was dispensed; 
   
  (v)  instructions for use; and 
   
  (vi) brand or generic name and strength of medication. 
     
  (B) Medications for each recipient must be stored in their original 
containers. Transferring between containers is prohibited by law. 
   
  (C) Medications requiring refrigeration must be stored in the medication room 
in a refrigerator used only for medicine storage or kept in a separate, 
permanently attached, and locked medication storage box in a refrigerator. 
   
  (D) Medications discontinued by a physician's order must be given to the 
client's family by the nurse within 10 days of the date of discontinuance. This 
must be documented in the client's record and signed by the nurse. 
   
  (E) Medications of deceased clients or medications which have passed the 
expiration date must be immediately given to the client's family by the nurse or 
immediately disposed of according to federal and state laws. Records of 
disposition of these medications must be kept. 
   
  (F) The client or responsible party may take his medication home daily. The 
facility, however, should plan with the client for medication to be available 
while attending the facility. (Staff may suggest to the client or family that 
the pharmacist divide the medication into two containers so the client will not 
have to take medications home.) 
   
  (G) Schedule II drugs stored at the facility may not be returned to the family 
or responsible party but must be disposed of according to state and federal 
laws. 
       
  (m)  Initiation of Services. 
 
  (1) Eligibility Determination. Determination of eligibility for adult day care 
services involves the cooperative efforts of the case manager and the service 
provider. 
 
  (A)  The case manager determines whether the client meets the eligibility 
criteria. If so, the case manager develops a service plan, refers the client to 
a service provider; and provides on-going case management for the client. In a 
face-to-face interview with the client, the case manager completes Form 2060 and 
page 1 and 2 of Form 2059. 
   
  (B) Referral is accomplished next. Unless a client needs a verbal referral for 
services, provider agencies receive written referrals based on the following 
priorities. 
 
  (i)  client's choice; and 
   
  (ii) availability of eligible providers; 
   
  (iii) the case manager will send Form 2059 p. 1 and p. 2 to the service 
provider within seven working days, and come to an agreement of the service plan 
for the client. The case manager and service provider then establish the 
beginning date of coverage; 
   
  (iv) if services are denied, the client is entitled to receive written 
notification from the case manager. In an ongoing case if services are reduced, 
the client should receive written notification. At the same time, the client 
should be informed about his right to appeal; 
   
  (v) if verbal prior approval is required, initiate verbal approval by 
contacting the service provider in person or by telephoning within one workday 
after visiting the applicant and determining that a verbal prior approval is 
needed. In the verbal referral, give the service provider the following 
information: 
 
  (I) client identifying information; 
   
  (II) Form 2060, client needs assessment questionnaire score; and 
   
  (III) the information that is covered on Form 2060; 
   
  (IV) follow-up by sending the appropriate forms within seven days. 
       
  (C) Service provider response must be received. If the service provider is 
unable to provide services within the required time frame needed to meet the 
client's needs, or fails to begin services according to the negotiated 
agreement, the case manager may select another service provider to provide the 
services. 
   
  (D) Case manager follow-up must be accomplished. In addition to providing 
ongoing case management services to the client, the case manager discusses and 
reports to the supervisor at the service provider, any apparent deficiencies 
noted in the service provider's delivery of services. The service provider must 
ensure that a client is not without services for more than three days after 
service initiation. The case manager has the authority to change providers if 
the client is not served according to the agreed upon care plan. 
   
  (E) Reassessment must be accomplished. Each client should be reassessed as 
needed, at least every six months. 
   
  (F)  Service Plan changes may be necessary. When the client requires an 
immediate change to the service plan, use verbal notification to approve the 
change. Review and discuss the situation with the service provider. 
       
  (n)  Suspension of services. When suspension of services is necessary the 
following will be accomplished. 
 
  (1) No later than the first work day after services are suspended, the service 
provider must verbally notify the caseworker about the reason the service 
provider suspended services. Written notification must be sent within seven days 
of service suspension to the case manager. 
   
  (2) The service provider may suspend services if one or more of the following 
circumstances occur: 
 
  (A) the client leaves the service area; 
   
  (B) the client dies; 
   
  (C) the client is admitted to an institution or hospital; 
   
  (D) the client requests that services end; 
   
  (E) the case manager denies the client's eligibility. 
       
  (o)  Client application requirements. The following requirements must be met 
by potential clients for this service. 
 
  (1) The target group for adult day care services is persons 60 years of age or 
older, who are physically limited in their ability to perform regular activities 
of daily living. Applicants are eligible for services if they score at least 25 
in the client needs questionnaire (Form 2060). 
   
  (2) To receive services, the applicant must reside in a place other than the 
following: 
 
  (A) a hospital; 
   
  (B) a skilled nursing facility; or 
   
  (C) an intermediate care facility. 
       
  (p) Administrative Requirements. The following additional administrative 
requirements must be adhered to by the service provider. 
 
  (1) The service provider must be licensed by the Texas Department of Public 
Health, under the authority of the Human Resources Code, Title 6, sec.103.006 
and sec.103.008. (You must also be certified by the Texas Department of Human 
Services if you intend to apply for funding from them.) 
   
  (2) Written procedures must be established and followed to ensure patient 
confidentiality, and for obtaining the written consent of the patient for 
release of confidential information. 
   
  (3) The service provider will notify clients where they may direct a complaint 
regarding the service provider. 
   
  (4) The service provider shall have the necessary legal authority to operate 
in conformity with federal, state and local laws and regulations. 
 
  This agency hereby certifies that the proposal has been reviewed by legal 
counsel and found to be within the agency's authority to adopt. 
 Issued in Austin, Texas, on January 27, 1993. 
 TRD-9318222 
  Mary Sapp 
 Executive Director 
 Texas Department on Aging 
    Earliest possible date of adoption: March 5, 1993 
 For further information, please call: (512) 444-2727