TITLE 40.SOCIAL SERVICES AND ASSISTANCE

Part 1. TEXAS DEPARTMENT OF HUMAN SERVICES

Chapter 79. LEGAL SERVICES

Subchapter Q. FORMAL APPEALS

The Texas Department of Human Services (DHS) adopts the repeal of §§79.1601 - 79.1613, and new §§79.1601 - 79.1607, in its Legal Services chapter. The repeals and new sections are adopted without changes to the proposed text published in the November 12, 1999, issue of the Texas Register (24 TexReg 9977).

Justification for the repeals is to eliminate the hearings function from the hearings department of DHS for contested Administrative Procedure Act cases. Justification for the new sections is to reflect that contested Administrative Procedure Act cases are being conducted by the State Office of Administrative Hearings and will provide the procedures for DHS's involvement in this hearing process.

The repeal and new sections will function by ensuring that the state will be in compliance with the mandate of Senate Bill 374, which amended §22.018 of the Texas Human Resources Code, and transferred the conduct of contested Administrative Procedure Act hearings from DHS to the State Office of Administrative Hearings.

The department received no comments regarding adoption of the repeals and new sections.

40 TAC §§79.1601 - 79.1613

The repeals are adopted under the Human Resources Code, Title 2, Chapters 22 and 31, which authorizes the department to administer public and financial assistance programs.

The repeals implement the Human Resources Code, §§22.001 - 22.030 and §§31.001 - 31.0325.

This agency hereby certifies that the adoption has been reviewed by legal counsel and found to be a valid exercise of the agency's legal authority.

Filed with the Office of the Secretary of State on January 5, 2000.

TRD-200000085

Paul Leche

General Counsel, Legal Services

Texas Department of Human Services

Effective date: January 25, 2000

Proposal publication date: November 12, 1999

For further information, please call: (512) 438-3765


40 TAC §§79.1601 - 79.1607

The new sections are adopted under the Human Resources Code, Title 2, Chapters 22 and 31, which authorizes the department to administer public and financial assistance programs.

The new sections implement the Human Resources Code, §§22.001 - 22.030 and §§31.001 - 31.0325.

This agency hereby certifies that the adoption has been reviewed by legal counsel and found to be a valid exercise of the agency's legal authority.

Filed with the Office of the Secretary of State on January 5, 2000.

TRD-200000086

Paul Leche

General Counsel, Legal Services

Texas Department of Human Services

Effective date: January 25, 2000

Proposal publication date: November 12, 1999

For further information, please call: (512) 438-3765


Part 20. TEXAS WORKFORCE COMMISSION

Chapter 803. SKILLS DEVELOPMENT FUND

The Texas Workforce Commission (Commission) adopts amendments to §§803.1, 803.2, and 803.35, concerning the Skills Development Fund, without changes and §§803.3, 803.13 and 803.14 with changes to the proposed text as published in the November 19, 1999, issue of the Texas Register (24 TexReg 10312).

The purpose of the amendments is to incorporate changes resulting from House Bills 3656 and 3657 from the 76th Legislative Session, 1999, and related changes to add clarification reflecting the intent of the Commission in administering the Skills Development Fund.

The Commission, while maintaining efficient statewide distribution of the Skills Development Fund's resources, is committed to timely service of high-need areas.

The Commission determined the need to make minor changes to the program objectives of the Skills Development Fund. The fifth objective was revised to encourage a more broad-based integration with other programs, to be more inclusive, and to allow maximum leveraging with other state and federal programs. The former sixth objective was deleted because it is no longer required.

The purpose of the new sixth objective is to promote higher wages. The purpose of the amendment adding the thirteenth objective is to develop projects that, at completion of the training, will result in the greatest economic benefit to the public of each dollar invested in worker training, in the form of enhanced worker skills and optimized multiplier effects within the local community.

The Commission received no comments on the proposed amendments.

Three technical corrections are made to the rules for purposes of clarity and to provide consistency with the statute. In §803.3(a) the words "either of" are deleted and the word "purposes" is added after the word "following." In §803.3(a)(1) the word "or" is deleted and the word "and" is added. In §803.13(a)(11), "and" is deleted; and in §803.13(a)(12), the period is changed to a semicolon and the word "and" is added. Finally, in §803.14(c)(11) the word "and" was inadvertently deleted in the proposed rule and is now added in the adopted rule. Subchapter A. General Provisions Regarding the Skills Development Fund

Subchapter A. GENERAL PROVISIONS REGARDING THE SKILLS DEVELOPMENT FUND

40 TAC §§803.1 - 803.3

The amendments to the rules are adopted under Texas Labor Code, Title 4, which provides the Texas Workforce Commission with the authority to adopt, amend, or repeal such rules as it deems necessary for the effective administration of Commission programs.

§803.3. Uses of the Fund.

(a)

The Skills Development Fund may be used by public community and technical colleges, TEEX, or community-based organizations only in partnership with the public community and technical colleges or the TEEX as start-up or emergency funds for the following purposes:

(1)

to develop customized training programs for businesses and trade unions; and

(2)

to sponsor small and medium-sized business networks and consortiums.

(b)

TEEX training activities shall focus on programs that are statewide or are not available from a local junior college district, a local technical college, or a consortium of junior college districts. In developing such programs, TEEX may participate in a consortium of junior college districts or with a technical college that provides training under Texas Labor Code, Chapter 303.

(c)

Technical college training activities shall focus on programs that are not available from a local community college, except in the technical college's local service area, and shall be encouraged to focus on programs that are statewide.

(d)

The Skills Development Fund may not be used:

(1)

to pay the training costs and related costs of an employer who relocates the employer's worksite from one place in Texas to another;

(2)

for the purchase of any proprietary or production equipment required for the training program of a single local employer;

(3)

for wages for trainees; or

(4)

to pay for trainee or instructor travel costs or trainee drug tests.

(e)

The Skills Development Fund may not be used to pay for the lease of equipment if any one of the following four criteria is characteristic of the lease transaction:

(1)

the lease transfers ownership of the equipment to the lessee at the end of the lease term;

(2)

the lease contains a bargain purchase option;

(3)

the lease term is equal to 75% or more of the estimated economic life of the leased equipment; or

(4)

the present value of the minimum lease payments at the inception of the lease, excluding executory costs, equals at least 90% of the fair value of the leased equipment.

This agency hereby certifies that the adoption has been reviewed by legal counsel and found to be a valid exercise of the agency's legal authority.

Filed with the Office of the Secretary of State on January 5, 2000.

TRD-200000077

J. Ferris Duhon

Assistant General Counsel

Texas Workforce Commission

Effective date: January 25, 2000

Proposal publication date: November 19, 2000

For further information, please call: (512) 463-8812


Subchapter B. PROGRAM ADMINISTRATION

40 TAC §803.13, §803.14

The amendments to the rules are adopted under Texas Labor Code, Title 4, which provides the Texas Workforce Commission with the authority to adopt, amend, or repeal such rules as it deems necessary for the effective administration of Commission programs.

§803.13. Program Objectives.

(a)

The following are the program objectives in administering the Skills Development Fund:

(1)

to ensure that funds from the program are spent in all areas of this state;

(2)

to develop projects that will create jobs in local workforce development areas (workforce areas) where the unemployment rate is above the state's annual average unemployment rate;

(3)

to prioritize the processing of grant requests from workforce areas where the unemployment rate is higher than the state's annual average unemployment rate;

(4)

to respond to the training needs of consortiums consisting of at least two micro-, small or medium-sized businesses;

(5)

to facilitate integration with other state and federally funded training;

(6)

to develop projects that at completion of the training will result in wages greater than the prevailing wage for that occupation in the local labor market for the participants in the customized training program;

(7)

to develop projects that at the completion of training will result in employment benefits, including medical insurance, for the participants in the customized training program;

(8)

to facilitate the growth of industry and emerging occupations;

(9)

to sponsor creation and attraction of high value, high skill jobs for the state;

(10)

to ensure retention of jobs by providing retraining in response to new or changing technology;

(11)

to develop projects which include contributions from other resources, including the private partners, that are being committed to the customized training program;

(12)

to ensure expansion of the state's capacity to respond to workforce training needs; and

(13)

to develop projects that at completion of the training will result in the greatest economic benefit to the public, in the form of enhanced worker skills and optimized multiplier effects within the local community of each dollar invested in worker training.

(b)

In processing requests referenced in paragraph (3) of subsection (a), the director shall give priority in processing to grant requests from workforce areas where the unemployment rate is higher than the state's annual average unemployment rate. Notwithstanding the priority in processing, the other objectives within this section apply.

(c)

The priority referenced in paragraph (4) of subsection (a) shall be for micro-businesses which employ not more than 20 employees as defined under Texas Government Code, §481.151, small businesses that have fewer than 100 employees or less than $1 million in annual gross receipts as defined under Texas Government Code, §481.101(3), and medium-sized businesses which employ not more than 500 employees.

§803.14. Procedure for Requesting Funding.

(a)

After consultation with a local workforce development board, a prospective private partner, together with a public community or technical college or TEEX, shall present to the director a joint proposal requesting funding for a customized training program or other appropriate use of the fund.

(b)

TEEX, or the public community or technical college that is a partner to a joint training proposal for a grant from the Skills Development Fund may be non-local, but the training proposal must not duplicate a training program available in the local workforce development area in which the prospective private partner is located.

(c)

Proposals shall be written and contain the following information:

(1)

the number of proposed jobs created or retained;

(2)

a brief outline of the proposed training program, including the skills acquired through training;

(3)

a brief description of the measurable training objectives;

(4)

the occupation and wages for participants who complete the customized training program;

(5)

a budget summary, disclosing anticipated program costs and resource contributions, including the dollar amount the prospective private partner is willing to commit to the project;

(6)

an outline of the agreement between the prospective private partner and the public community or technical college or TEEX;

(7)

a statement explaining the basis for the determination that there is an actual or projected labor shortage in the occupation in which the proposed training program will be provided that is not being met by an existing institution or program in the local workforce development area;

(8)

a comparison of costs per trainee for the customized training program to the public community or technical college's or TEEX' costs for similar instruction;

(9)

a statement describing the prospective private partner's equal opportunity employment policy;

(10)

a list of the proposed employment benefits;

(11)

any additional information deemed necessary by the Commission to complete evaluation of a proposal; and

(12)

a certification as required by subsection (d) of this section.

(d)

For purposes of coordinating applications for the Skills Development Fund and the Smart Jobs Fund that is administered under Texas Government Code, Subchapter J, Business Development - Smart Jobs Fund Program, §481.152 et seq. , by the Texas Department of Economic Development (Department), the following shall apply:

(1)

A certification at the time of application to the Commission or the Department shall be filed indicating whether the application is a "concurrent application" for both the Skills Development Fund and the Smart Jobs Fund.

(2)

For purposes of this subsection, "concurrent application" shall mean either:

(A)

an application for the Skills Development Fund that has been filed and is pending at the time the applicant applies for the Smart Jobs Fund with the Department; or

(B)

an application for the Smart Jobs Fund that has been filed and is pending at the time the applicant applies for the Skills Development Fund.

(3)

A joint application, on a form approved by the director and the director's counterpart at the Department, may be used for coordinating application for both the Skills Development Fund and the Smart Jobs Fund.

This agency hereby certifies that the adoption has been reviewed by legal counsel and found to be a valid exercise of the agency's legal authority.

Filed with the Office of the Secretary of State on January 5, 2000.

TRD-200000078

J. Ferris Duhon

Assistant General Counsel

Texas Workforce Commission

Effective date: January 25, 2000

Proposal publication date: November 19, 2000

For further information, please call: (512) 463-8812


Subchapter C. PROGRAM ADMINISTRATION AFTER AWARD OF CONTRACT

40 TAC §803.35

The amendments to the rules are adopted under Texas Labor Code, Title 4, which provides the Texas Workforce Commission with the authority to adopt, amend, or repeal such rules as it deems necessary for the effective administration of Commission programs.

This agency hereby certifies that the adoption has been reviewed by legal counsel and found to be a valid exercise of the agency's legal authority.

Filed with the Office of the Secretary of State on January 5, 2000.

TRD-200000079

J. Ferris Duhon

Assistant General Counsel

Texas Workforce Commission

Effective date: January 25, 2000

Proposal publication date: November 19, 2000

For further information, please call: (512) 463-8812


Chapter 809. CHILD CARE AND DEVELOPMENT

Subchapter A. GENERAL PROVISIONS

40 TAC §809.1

The Texas Workforce Commission (Commission) adopts an amendment to §809.1 concerning child care services, without changes to the proposed text as published in the November 5, 1999, issue of the Texas Register (24 TexReg 9817).

The purpose of the amendment is to modify the language in §809.1(c) to incorporate an implementation date of no later than December 1, 1999 for §809.62(a)(1). The Commission's intent is that the new implementation date provide the local workforce development boards (Boards) and their respective child care contractors (contractors) with the necessary time to fully implement the automation systems and related programmatic changes necessary to facilitate payments directly to self-arranged providers.

Background: On February 11, 1999, the Commission published the adopted child care rules in the Texas Register (24 TexReg 826). Specifically, §809.1 provided that Boards would be required to implement the new rules on September 1, 1999.

The Child Care and Development Fund (CCDF) regulations require that parents have the ability to select self-arranged providers pursuant to 45 CFR 98.30. The Commission firmly believes in parents exercising parental choice among the full range of child care providers, including self-arranged child care providers, and in parent responsibility in the selection. Self-arranged providers are of two types: (1) certain relatives: grandparents, great-grandparents, aunts and uncles, and siblings if the sibling is over 18 and does not reside in the residence of the child, and (2) certain entities: typically licensed centers and registered family homes that, in the past, chose not to engage in a contract directly with the contractor for the delivery of child care services, but chose to be paid directly by the parents. The self-arranged providers are typically sought by parents to meet the need for nontraditional hours of child care, including weekends, evenings and night shifts. The self-arranged providers are also typically sought by parents in rural or remote locations.

In an effort to reduce fraud, the Commission adopted a change to the payment method for self-arranged care. In the past, parents were paid directly for the self-arranged care and the parents were charged with making the payment to the self-arranged providers for the child care services rendered. Effective February 11, 1999 for implementation on September 1, 1999, Boards and contractors are required to pay all providers of child care directly, including self-arranged providers.

Several Boards and contractors have requested additional time to fully implement the automation and programmatic changes necessary to pay self-arranged providers directly as specified in §809.62(a)(1) for several reasons. As an example, one contractor in one Board area has indicated that more than 1,400 self-arranged providers and 3,100 self-arranged children are impacted in that area alone. Boards and contractors also have indicated that it is anticipated that some families and providers will choose to stop utilizing self-arrangement because of concerns over the payment method. For these reasons, several contractors and Boards expressed that they were not able to fully implement the necessary automation changes by September 1, 1999.

Boards are challenged with implementing extensive integration, automation, and program design changes that are needed. Boards have demonstrated good faith efforts in moving forward to design the seamless workforce delivery system to address the needs of working families. The Commission understands that all Boards did not have the systems in place to implement this provision. The Commission believes that the requested short-term extension is necessary for the undisrupted and continuous delivery of child care services. If the September 1, 1999 implementation date is not modified, this situation could result in a disruption of services because there would be no authorized method of paying for services.

In turn, parents engaged in employment would be forced to leave employment to care for their children or leave their children unsupervised or in unregulated or unsafe care situations in order to maintain employment. The endangerment of the children in unsupervised or unsafe care arrangements would present an imminent peril to the children of the state. For this reason, the amendment is necessary to authorize a method of paying providers. Without the amendment, the breakdown in service delivery would present an imminent peril to the public health, safety or welfare of the children of the state.

The Commission received no comments on the proposed amendment.

The amendment is adopted under Texas Labor Code, §301.061 and §302.021, which provide the Texas Workforce Commission with the authority to adopt, amend, or repeal such rules as it deems necessary for the effective administration of the Commission's programs.

This agency hereby certifies that the adoption has been reviewed by legal counsel and found to be a valid exercise of the agency's legal authority.

Filed with the Office of the Secretary of State on January 5, 2000.

TRD-200000080

J. Ferris Duhon

Assistant General Counsel

Texas Workforce Commission

Effective date: January 25, 2000

Proposal publication date: November 5, 1999

For further information, please call: (512) 463-8812


Chapter 845. TEXAS WORK AND FAMILY CLEARINGHOUSE

The Texas Workforce Commission (Commission) adopts new §§845.1, 845.2, and 845.11 - 845.13, relating to the Texas Work & Family Clearinghouse, without changes to the proposed text as published in the November 12, 1999, issue of the Texas Register (24 TexReg 9985).

The purpose of the rules is to set forth the procedures applicable to the Work and Family Clearinghouse (Clearinghouse) grant request and award process pursuant to Texas Labor Code Chapter 81. The process incorporated in the rules is based on methods found to be efficient in administering grants and programs similar to the Clearinghouse grants.

Background: The Clearinghouse provides technical assistance and information on dependent care and other employment-related family issues to public and private employers, state agencies, policymakers, and individuals. The Clearinghouse also conducts research on child care and other employment-related family issues based on the recommendations of the Work and Family Policy Advisory Committee.

The statute provides that the Clearinghouse may establish a grant program to provide funds to public or private persons to conduct demonstration dependent care projects. The Code Construction Act provides that a person includes a corporation, organization, government or governmental subdivision or agency, business trust, estate, trust, partnership, association, and any other legal entity. Therefore, a private or public person may include faith-based organizations, community-based organizations and employers. A demonstration dependent care project includes community-level initiatives that improve support for working families and is not limited to model or start-up type projects.

The rules outline criteria for the awarding of grants authorized under the statute. The rules also provide for cancellation of a grant if the Commission determines that the grant recipient has failed to perform or to substantially comply with the terms in the request for proposal, request for application, contract, or agreement. The rules also allow the Commission to take corrective action in lieu of cancellation of the grant.

Comments were received from the South Plains Local Workforce Development Board (Board) and the Upper Rio Grande Board.

Comment: The commenter stated that it was appropriate for Boards to be given priority consideration for any funds from the Clearinghouse that could be used to expand employer and individual participation in the local workforce development system.

Response: The Commission disagrees that Boards should receive a priority for Clearinghouse funds as the Commission must observe the state law which requires the Commission to initiate a fair, public, competitive bid process for all initiatives funded by the Clearinghouse. Prioritizing applicants in advance would violate that statutory requirement. However, Boards may apply for funds from the Clearinghouse and will receive the earliest possible notice of fund availability.

Comment: One commenter supported the proposed rules and stated that the program appears to be a good one. The commenter also alluded to a need for guidelines to be in place to identify what would qualify as a dependent care program.

Response: The Commission appreciates the commenter's support of the proposed rules and agrees that dependent care demonstration projects provide valuable support to working families with dependent care needs. The Commission also wants to call attention to the definition of Dependent Care found at §845.2 in the rules as published. As the preamble to the proposed rules indicated, demonstration dependent care projects include community-level initiatives that improve support for working families and are not limited to model or start-up type activities.

Subchapter A. GENERAL PROVISIONS

40 TAC §845.1, §845.2

The new rules are adopted under Texas Labor Code, §301.061 which provides the Commission with the authority to adopt, amend, or repeal such rules as it deems necessary for the effective administration of the Commission's programs and Texas Labor Code §§81.004, 81.0045 and 81.007.

This agency hereby certifies that the adoption has been reviewed by legal counsel and found to be a valid exercise of the agency's legal authority.

Filed with the Office of the Secretary of State on January 5, 2000.

TRD-200000081

J. Randel (Jerry) Hill

General Counsel

Texas Workforce Commission

Effective date: January 25, 2000

Proposal publication date: November 12, 1999

For further information, please call: (512) 463-8812


Subchapter B. DEPENDENT CARE GRANTS

40 TAC §§845.11 - 845.13

The new rules are adopted under Texas Labor Code, §301.061 which provides the Commission with the authority to adopt, amend, or repeal such rules as it deems necessary for the effective administration of the Commission's programs and Texas Labor Code §§81.004, 81.0045 and 81.007.

This agency hereby certifies that the adoption has been reviewed by legal counsel and found to be a valid exercise of the agency's legal authority.

Filed with the Office of the Secretary of State on January 5, 2000.

TRD-200000082

J. Randel (Jerry) Hill

General Counsel

Texas Workforce Commission

Effective date: January 25, 2000

Proposal publication date: November 12, 1999

For further information, please call: (512) 463-8812