Part VIII.
Interagency Council on Early Childhood Intervention
Chapter 621.
Early Childhood Intervention
The Interagency Council on Early Childhood Intervention (ECI) proposes
amendments to §§621.25-621.31, 621.41-621.43, 621.45, 621.46, 621.48,
and 621.49, concerning Early Childhood Intervention Service Delivery and Procedural
Safeguards and Due Process Procedures. The amendments are necessary as a result
of the rule review process. The amendments will update existing regulations.
Elsewhere in this issue of the
Texas Register
,
the ECI has proposed for review the following sections: 621.41-621.43, 621.45,
621.46, 621.48, and 621.49. Also, ECI is adopting in this issue of the
Donna Samuelson, Deputy Executive Director, Interagency Council on Early
Childhood Intervention, has determined that for the first five-year period
the amendments are in effect there will be no fiscal implications for state
or local government as a result of enforcing or administering the amendments.
Ms.
Samuelson also has determined that for each year of the first five years
the amendments are in effect the public benefit anticipated as a result of
enforcing the rules will be current and concise rules. There will be no effect
on small businesses. There are no anticipated economic costs to persons who
are required to comply with the amendments as proposed.
Comments on the proposal may be submitted to Alex Porter, General Counsel,
Interagency Council on Early Childhood Intervention, 4900 North Lamar Boulevard,
Austin, Texas 78751-2399.
Subchapter B. Early Childhood Intervention Service Delivery
25 TAC §§621.25-621.31
The amendments are proposed under the Human Resources Code,
Chapter 73, which provides the Interagency Council on Early Childhood Intervention
with the authority to promulgate rules consistent with the Code.
No other statutes, articles or codes are affected by the proposed amendments.
§621.25. Application Requirements for Comprehensive Services.
(a)
Proposal format. The council
staff
shall annually
[
(b)
Application content.
[
The application shall consist of the forms
and related material that the applicant shall complete to apply to
receive
funding for performing
[
[
The format included
in the application kit shall be used.]
[
Applications not using
the approved format will not be considered.]
[
Incomplete applications
will not be considered.]
[
Applications must be submitted for a
one-year period
unless the Funding Application Instructions specify otherwise
.
[
Applications received
after the application closing date will not be considered.]
(c)
Total program
cost
[
(d)
Applicant share or maintenance of effort
(MOE)
.
(1)
The maximum reimbursement through Early Childhood Intervention
(ECI) for continuation programs is contingent on program expenditure levels
maintained in the previous year in which ECI funds were requested. All ECI
providers are required to maintain
the level of
[
(2)
New providers may follow a phase-in period for developing
their MOE
[
Figure: 25 TAC §621.25(d)(2)
(3)
All funds used to support allowable ECI program
costs, other than ECI contract funds, must be reported as applicant share.
The
applicant
[
(A)-(D)
(No change.)
(4)-(5)
(No change.)
(6)
All program income
earned by
[
(e)
Allowable costs.
(1)
The following is intended to be a summary of the most
frequently requested costs, and should not be construed to be complete. [
(A)-(B)
(No change.)
(C)
travel and/or transportation--staff travel necessary for
the conduct of the program. Children's transportation on public or private
systems when such transportation is
ECI - related
[
(D)
(No change.)
(E)
equipment--
tangible
nonexpendable personal
property
with
[
(2)
The following expenses are the most common types
of "other expenses":
(A)
communications such as telephone [
(B)
depreciation--allowable whenever real or personal property
are used for the benefit of the program with
council staff
[
(C)-(E)
(No change.)
(F)
taxes--allowable only for those taxes which the provider
is required to pay for employment services, travel, renting, or purchasing
for the program; [
(G)
printing and reproduction
of program materials;
(H)
postage and shipping;
(I)
advertising for public awareness
and recruitment of staff;
(J)
registration fees for staff
development;
(K)
agency vehicle operating costs; and
(L)
[
(f)
Unallowable costs.
(1)
The following are the most common types of costs which
are requested but unallowable:
(A)
construction [
(B)
purchase of land or buildings
.
[
[
vehicles.]
(2)
(No change.)
§621.26. Financial Management and Recordkeeping Requirements.
(a)
(No change.)
(b)
Financial management system.
(1)
[
(A)-(C)
(No change.)
(D)
comparisons of actual amounts expended with budgeted amounts
for each program. [
(2)
Accounting for applicant funds should be in
accordance with the provisions in the UG[
(3)
(No change.)
(c)
Reports. All providers will be expected to submit quarterly
and final
financial and
program performance reports by the specified
date. The council is authorized to
withhold payment and
return
vouchers to any provider whose reports are delinquent.
(d)
On-site reviews.
(1)
Program review.
(A)
The council staff
[
(B)
Program review will include a review of policies and procedures,
individual records of services provided to children and families, documentation
of data submitted to the
council
[
(2)
Financial review.
The council staff
[
(A)
(No change.)
(B)
properly documented; [
(C)
necessary and reasonable;
and
(D)
[
(3)
Record availability. All records shall be made
available to
the council's
[
(e)
Audit requirements. Providers shall have a financial audit
of the ECI Program performed by an independent certified public accountant
(CPA)
or other independent public accountant licensed by the Texas State
Board of Public Accountancy for those fiscal years that include any portion
of an ECI contract period. [
§621.27. Funding [
(a)
Submission of application.
(1)
Applications are deemed received when logged by the
council
[
(2)
Applications which are late or
substantially
incomplete will not be accepted and will be returned to the applicant
with an explanation. Otherwise, all applications will be considered for funding.
(3)
A completed original and two copies of the application
shall be submitted to Interagency Council on Early Childhood Intervention
,4900 North Lamar Boulevard
[
(4)
(No change.)
(5)
The application shall follow the format provided
in the [
(b)
Review of Application(s).
[
§621.28. Annual Award.
(a)
Following the review process, the
board
[
(b)
If the application is for the continuation of an existing
program and the
board
[
§621.29. Contract.
(a)
An approved provider will enter into a contract with the
Interagency Council on Early Childhood Intervention [
(b)
The contract shall:
(1)
contain provisions requiring the provider to comply with
the requirements in these sections, the program
requirements as stated
[
(2)
state
[
(3)
authorize the council to
impose sanctions for
noncompliance with contract terms and conditions
[
(4)
include clearly defined goals, outputs, and
measurable outcomes which directly relate to program objectives
[
(5)
contain provisions that
the council may reduce a contract when the provider fails to serve the number
of children on which the budget was based.
[
contain provisions that
state that the council may reduce a contract by the amount for which a budget
reallocation was requested and denied;]
[
contain provisions that
the council has the option to deny, in certain instances, continuation funding
to a provider.]
(c)
The contract shall be concurrent with the current fiscal
year
, unless the board approved partial year funding due to extenuating
circumstances
.
(d)
Program and fiscal findings documented in council monitoring
or other reports must be cleared in accordance with the [
(e)
The contract shall identify the
county(ies) in which
the provider is authorized to perform ECI services and reference the service
area approved by the council staff within the county(ies)
[
(1)
All requests to change the
approved service area
[
[
The need to delete or
add a county(ies) may be based upon changes in the provider's service area
by its administrative agency.]
(2)
[
(3)
[
§621.30. Cancellation of Contract with Provider [
The Interagency Council on Early Childhood Intervention [
(1)
The council[
(2)
If the council proposes to cancel the contract [
(3)-(4)
(No change.)
(5)
Any proposed cancellation of a provider contract
may be in addition to or in conjunction with a decision to withhold funds
from the provider
[
(6)
Between the time a provider files a request for a
hearing and the final decision of the
board
[
(7)
No contract will be canceled prior to the final decision
of the
board
[
§621.31. Formal Hearing Procedures.
(a)
Purpose. This section covers the formal hearing procedures
and practices that will be available to persons or parties who request formal
hearings before the Interagency Council on Early Childhood Intervention [
(b)-(e)
(No change.)
(f)
Notice and service in proceedings.
(1)-(3)
(No change.)
(4)
The council
staff
shall mail the notice
of the proposed contract cancellation, withholding of funds, or denial of
continuation funding by certified or registered mail to the last known place
of address of the person entitled to receive such notice.
(5)-(6)
(No change.)
(g)
Request for hearing. Any person who receives a written
notice to propose to cancel the contract, withhold funding, or deny continuation
funding must file a request for hearing with the
council's
[
(1)-(3)
(No change.)
(h)
(No change.)
(i)
Subpoenas.
(1)
On its own motion or on the written request of any party
to the hearing,
the council
[
(2)-(6)
(No change.)
(j)
(No change.)
(k)
Prehearing conferences.
(1)-(4)
(No change.)
(5)
The administrative law
judge shall have the discretion on his own or at the request of the parties,
to order mediation in appropriate cases.
(l)
(No change.)
(m)
Hearing procedure.
(1)-(7)
(No change.)
(8)
Rules of evidence. The administrative law judge,
at a hearing, a reopened hearing, or a rehearing will apply the rules of evidence
under the APA, §§
2001.081, et seq.
[
(A)-(E)
(No change.)
(9)-(10)
(No change.)
(n)
Action after the hearing.
(1)-(3)
(No change.)
(4)
Final decision.
(A)
The final decision will be rendered by a majority of a
quorum of the
board
[
(B)
(No change.)
(C)
All final decisions shall be signed by each member of
the
board
[
(D)
(No change.)
(E)
When a contract has been canceled, either upon a final
decision of the council or by mutual agreement prior thereto, or a decision
to deny continuation funding, the provider shall notify parents of all children
served by the provider that
council
[
(o)
Decisions and orders.
(1)
(No change.)
(2)
Final decision. The final decision must be rendered
within 30 days after the date the hearing is finally closed. The time period
for the final decision shall be extended if the conclusions of law or findings
of fact are not submitted timely to the
board
[
(3)
(No change.)
(p)
Hearing procedure for denial of the continuation
of funding
[
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
January 11, 1999.
TRD-9900113
Donna Samuelson
Deputy Executive Director
Interagency Council on Early Childhood Intervention
Earliest possible date of adoption: February 21, 1999
For further information, please call: (512) 424-6750
approve and
] disseminate a document entitled "Funding Application."
Copies are available upon request from the Interagency Council on Early Childhood
Intervention
(council), 4900 North Lamar Boulevard, Austin, Texas 78751-2399
[
Services, 1100 West 49th Street, Austin, Texas 78756-3179
].
(1)
]
perform
] program services.
(2)
(3)
(4)
(5)
]
(6)
costs
].
Applications must include the total program cost projected for ECI program
operations.
The total program cost is defined as the sum of the total
ECI share plus the total applicant share.
local
]
other (non-ECI)
funding
which was expended for ECI program operations
in the
[
and support based on their
] previous year [
expenditures
].
local community support
]. The following schedule
illustrates the maximum reimbursement percentages for new programs in their
first three years.
applicant's
] share or
MOE
[
maintenance of effort
] may include the following:
allocated
to
] the local ECI program must be reported and either used to increase
the funding level of the ECI program or deducted from the total program cost.
Program income must be reported and expended when it becomes both measurable
and available within the fiscal year in which it is earned or no later than
90 days after the fiscal year end. Program income may only be carried forward
if it exceeds the projected amounts and with prior written approval from the
council staff.
(
]Exclusion of a particular item from the allowable list does not necessarily
mean it is unallowable. All costs to be reimbursed by ECI or applicant share
must go exclusively for conducting the program.[
)
] A complete list
of expenditures is listed in the Uniform Grant [
and Contract
] Management
Standards [
Program
] (UG[
C
]MS):
necessary
for their participation in the program
];
that is complete in itself, has an expected
use of more than one year, and
] an acquisition cost
of over
[
greater than
] $1,000 per unit [
.
]
and a useful
life of more than one year, with the following exceptions: facsimile machines,
stereo systems, still and video cameras, VCRs and VCR/TV combinations, cellular
and portable telephones, microcomputers, and printers. These items will be
considered equipment if their unit cost is over $500.
and postage
]
charges;
grantor's
] approval;
and
]
(G)
] indirect costs.
,
]
or
renovation [
, or alteration
] of buildings;
and
; or
]
(C)
Upon award of council funds,
] The provider
will be expected to implement a financial management system which will comply
with the Uniform Grant [
and Contract
] Management Standards [
Program
] (UG[
C
]MS) and also provide for the following:
Also, relation of financial information with performance
or productivity data, including the production of unit cost information whenever
appropriate and required by the council.
]
C
]MS. All documents supporting
program
[
grant
] expenditures shall be recorded in sufficient
detail to show the exact nature and cost of the expenditures for each account.
Records must be maintained in such a manner to permit preparation of required
financial reports and to indicate that funds are used for the purpose and
benefit of the ECI Program. Any funds not expended in accordance with the
contract entered into between the provider and the Interagency Council on
Early Childhood Intervention Services should be returned to the council.
State ECI staff, under
direction of the Interagency Council on Early Childhood Intervention Services
] will conduct on-site visits of providers [
in order
] to
determine
compliance with the contract
[
progress
] and
evaluate the work performed by ECI program
[
accomplishments of
stated goals and objectives
].
ECI office
], contact
with parents, staff, community members, fiscal records, and documentation
of other requirements of the ECI contract, rules, and policies.
State ECI staff, under the direction of the Interagency Council on Early
Childhood Intervention Services
] will conduct a financial review to
ascertain that program costs are:
and
]
(C)
] in compliance with all contract
requirements.
ECI state office
] monitoring
teams.
Those providers who are audited by the state
auditor or an equivalent state agency auditor may substitute that audit to
fulfill this audit requirement.
] A copy of this audit must be sent to
the
council within 30 days of receipt from the independent CPA
[
ECI state office
].
Grant ] Application Submission and Review.
Early Childhood Intervention Program (ECI) state office
]. The
council
[
state office ECI
] staff will review
each application to ensure that all parts of the proposal are included.
Program Services, 1100 West 49th Street
], Austin, Texas
78751-2399
[
78756-3179
].
"
] Funding Application[
."
]
Instructions.
If additional space for continuation of an item is needed, a reproduction
of the original page can be used for continuation. All copies of the application
should be sent as one package.
New application.
The interagency review team is formed by a parent representative and agency
representatives or designees of the Interagency Council on Early Childhood
Intervention Services.
]
A "Request for Proposal" (RFP) process
may be used to ensure that the council is obtaining the best value in purchasing
services.
The
council staff
[
review team
] will
be responsible for making recommendations to the
board
[
council
] for approval or denial of all [
new
] requests [
and
all expansion requests in which a currently funded provider is requesting
money to expand in an unserved or underserved county in which a new provider
is also requesting approval of funds
].
Interagency Council on Early Childhood Intervention Services (council)
]
will meet to approve [
or deny
] funding
recommendations
[
requests
]. Each applicant will be notified in writing of the
board's
[
council's
] decision. The reason for a denial will
be communicated in writing to the applicant.
council
] proposes to deny
funding
[
this application
], the notification to the applicant
of the proposed denial shall advise the applicant that it has the right to
a hearing on the proposed denial in accordance with the hearing procedures
in §621.31 of this title (relating to Formal Hearing Procedures), except
when the proposed denial is based on the unavailability of funds or a change
in program direction. If the applicant does not request a hearing within 10
days after receipt of the notification of proposed denial, the applicant is
deemed to have waived the hearing and the denial becomes effective.
Services
]
(council) prior to being allocated funds.
standards as required
] under the Human Resources Code,
§
73.0051,
[
73.019, the council
] policies and guidelines,
[
the council
] program monitoring requirements, and the fiscal requirements
on the administering, accounting, auditing, and recovering of funds as authorized
by the Uniform Grant [
and Contract
] Management Standards [
Program
] (UG[
C
]MS);
cover
] the total number
of eligible developmentally delayed children
that the provider's ECI
program has the capacity to serve at any one time
[
to be served
with Early Childhood Intervention Program (ECI) funds and other funds
];
withhold funds
] in accordance with the provisions of
the Human Resources Code,
§73.0051
[
§621.30 of this title (relating to Cancellation
of Contract with Provider and Withholding of Funds)
];
contain provisions authorizing the council, on its own initiative, or upon
request of the council, to cancel the contract in accordance with the provisions
of §621.30 of this title (relating to Cancellation of Contract with Provider
and Withholding of Funds)
]; and
(5)
(6)
Early Childhood
Intervention (ECI)
]
council
policies
,
[
and
] provisions in the UG[
C
]MS and within the time frame specified
in the monitoring or other report.
designated
service area by county
].
areas that are listed in the provider's contract
] must
be reviewed and approved by the council
staff
.
(2)
(3)
] The council will not
incur additional expenses for the provision of the same level of services
for the same number of children as a result of a request to change a service
area.
(4)
] A request to change the
designated service area must be either made during the annual award process
or at a regularly scheduled
board
[
council
] meeting.
and Withholding of Funds ].
Services
] (council) may cancel the contract under the following conditions:
, on its own initiative or at the request
of the council,
] may propose to [
withhold funds or
] cancel
the contract in whole or in part prior to the date of completion. The council
may propose this action whenever it is determined that the provider has not
been or is not in substantial compliance with the contract provisions, applicable
federal or state law or regulations, Early Childhood Intervention Program
(ECI) policies, or the Uniform Grant [
and Contract
] Management
Standards [
Program
] (UG[
C
]MS). If the council discovers
gross mismanagement of a program's finances or contract, the council may propose
cancellation of the contract.
or to withhold funds
], the council shall notify the provider in writing
of
the
reasons for the proposed cancellation, [
giving the
council's reasons for the proposed action
] and
give
[
giving
] the provider an opportunity to contest the proposed action
through a formal hearing
. The hearing shall be in accordance with the
[
council's
] hearing procedures in § 621.31 of this title (relating
to Formal Hearing Procedures). The provider may request a hearing by giving
written notification to the Interagency Council on Early Childhood Intervention
, 4900 North Lamar Boulevard
[
Services, 1100 West 49th Street
],
Austin, Texas
78751-2399
[
78756-3179
]. Any questions
which the provider might have concerning the proposed action shall be addressed
to the
council's
[
ECI
] executive director.
under the provisions of this section
].
council
],
any funds eligible for distribution may be retained at the sole discretion
of the
board
[
council
]. In the event the
board's
[
council's
] final decision is favorable to the provider,
the eligible funds shall be promptly distributed to the provider. In the event
the
board's
[
council's
] final decision is adverse to
the provider, the funds shall be withheld.
council
] following a hearing provided
under these sections.
Services
] (council). The intended effect of these procedures is to implement
the contested case provisions of the Administrative Procedure Act (APA), Title
10 of the Texas Government Code, §
2001.051, et seq
[
2001.001
]. These hearing procedures will be used for all providers funded
by the council, except instances when the rules provide that another fair
hearing procedure will be used or when the council elects to undertake a new
or different program direction. Hearings will be conducted in accordance with
the
APA
[
Act
], rules of the State Office of Administrative
Hearings, and the rules of the council. State Office of Administrative Hearing
rules may be obtained from that office.
Early Childhood Intervention (ECI) Program
] executive director [
through the
] ,
4900 North Lamar Boulevard
[
ECI office,
1100 West 49th Street
], Austin, Texas
78751-2399
[
78756-3179
] within ten days of receipt of the notice. The request for hearing
shall be deemed filed only when actually received by such office. Failure
to file a request for hearing shall be considered a waiver by the person of
his right to a fair hearing after the action is taken to cancel the contract,
withhold funding, or deny continuation funding, and
the council
[
ECI
] shall proceed to finalize its earlier decision. The request
for hearing shall include:
ECI
] shall issue a subpoena
to the appropriate sheriff or constable to require the attendance of witnesses
or the production of documents at the hearing.
2001.201-2001.88
], and the following rules.
council
], unless the authority
to render a final decision is delegated to the administrative law judge.
council
] who made up the quorum which rendered
the final decision.
ECI
] approval has
been canceled. If the provider fails to so notify the parents and furnish
satisfactory documentation to the council within 30 days that such notification
has been made, the
council's
[
ECI
] executive director
may thereupon serve such notice upon said parents.
council
]
by the administrative law judge.
of a grant
] to a provider. The hearing procedure
described in subsections (a)-(o) of this section shall govern all such proceedings
except that [
in subsection (n)(4)(C) of this section concerning the hearing
procedure
] the party who has been denied the continuation of funding
and is requesting that the decision of the
board
[
council
] to deny funding be reversed has the burden of proving that such an
action is justified.
Subchapter C. Procedural Safeguards and Due Process Procedures