TITLE 25.HEALTH SERVICES

Part 2. TEXAS DEPARTMENT OF MENTAL HEALTH AND MENTAL RETARDATION

Chapter 401. SYSTEM ADMINISTRATION

Subchapter E. CONTRACTS MANAGEMENT

25 TAC §§401.371 - 401.380, 401.387 - 401.399

The Texas Department of Mental Health and Mental Retardation (TDMHMR) adopts the repeals of §§401.371 - 401.380 and §§401.387 - 401.399 of Chapter 401, Subchapter E, concerning contracts management, without changes to the proposal as published in the December 29, 2000, issue of the Texas Register (25 TexReg 12896-12897). New §§417.51 - 417.65 of Chapter 417, Subchapter B, concerning contracts management for TDMHMR facilities and Central Office, which replace the repealed sections, are contemporaneously adopted in this issue of the Texas Register .

The repeals allow for the adoption of new and more current rules governing the same matters.

No comment on the proposal was received.

These sections are repealed under the Texas Health and Safety Code, §532.015, which provides the Texas Board of Mental Health and Mental Retardation (board) with broad rulemaking authority; §533.016, which allows TDMHMR to adopt rules relating to certain procurements of goods and services; §533.034, which provides TDMHMR with the authority to contract for community-based services; and §534.059(b), which requires TDMHMR's contract rules to provide for sanctions if TDMHMR intends to sanction a local mental health or mental retardation authority's for failing to comply with its performance contract.

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 June 8, 2001.

TRD-200103217

Andrew Hardin

Chairman, Texas MHMR Board

Texas Department of Mental Health and Mental Retardation

Effective date: July 1, 2001

Proposal publication date: December 29, 2000

For further information, please call: (512) 206-5216


Chapter 404. PROTECTION OF CLIENTS AND STAFF

Subchapter B. ABUSE, NEGLECT, AND EXPLOITATION OF PEOPLE SERVED BY PROVIDERS OF LOCAL AUTHORITIES

25 TAC §§404.41 - 404.55

The Texas Department of Mental Health and Mental Retardation (TDMHMR) adopts the repeals of §§404.41 - 404.55 of Chapter 404, Subchapter B, concerning abuse, neglect, and exploitation of people served by providers of local authorities, without changes to the proposal as published in the February 9, 2001, issue of the Texas Register (26TexReg1233). New §§414.551 - 414.564 of Chapter 414, Subchapter L, concerning abuse, neglect, and exploitation in local authorities and community centers, which replace the repealed sections, are contemporaneously adopted in this issue of the Texas Register .

The repeals allow for the adoption of new sections governing the same matters.

The subchapter is repealed as part of the reorganization of the TDMHMR rule base to reflect current operational and organizational relationships. The contemporaneous repeal and adoption of these subchapters would fulfill the requirements of the Texas Government Code, §2001.039, concerning the periodic review of agency rules.

No comment was received on the proposed repeals.

These sections are repealed under the Texas Health and Safety Code, §532.015, which provides the Texas Mental Health and Mental Retardation Board with broad rulemaking authority; the Texas Human Resources Code, Chapter 48, which requires the reporting and investigations of abuse, neglect, and exploitation of elderly and disabled persons; §48.255(c), which requires TDMHMR and TDPRS to develop joint rules to facilitate the investigations in community centers and local authorities; the Texas Family Code, Chapter 261, which requires the reporting and investigations of abuse and neglect of a child; and the Texas Civil Practice and Remedies Code, §81.006, which requires the reporting of alleged sexual exploitation by a mental health services provider to the county prosecuting attorney.

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 June 8, 2001.

TRD-200103215

Andrew Hardin

Chairman, Texas MHMR Board

Texas Department of Mental Health and Mental Retardation

Effective date: July 1, 2001

Proposal publication date: February 9, 2001

For further information, please call: (512) 206-5216


Chapter 405. CLIENT (PATIENT) CARE

Subchapter P. RESEARCH IN DEPARTMENT FACILITIES

25 TAC §§405.401 - 405.411, 405.414 - 405.417

The Texas Department of Mental Health and Mental Retardation (TDMHMR) adopts the repeals of §§405.401 - 405.411 and 405.414 - 405.417 of Chapter 405, Subchapter P, concerning research in department facilities, without changes to the proposal as published in the March 30, 2001, issue of the Texas Register (26TexReg2478). New §§414.751 - 414.764 of Chapter 414, Subchapter P, concerning research in TDMHMR facilities, which replace the repealed sections, are contemporaneously adopted in this issue of the Texas Register .

The repeals allow for the adoption of new sections governing the same matters.

The subchapter is repealed as part of the reorganization of the TDMHMR rule base to reflect current operational and organizational relationships. The contemporaneous repeal and adoption of these subchapters would fulfill the requirements of the Texas Government Code, §2001.039, concerning the periodic review of agency rules.

No comment on the proposal was received.

These sections are repealed under the Texas Health and Safety Code, §532.015, which provides the Texas MHMR Board (board) with broad rulemaking authority, and §576.021, which states that a patient receiving mental health services under the Texas Mental Health Code (Texas Health and Safety Code, Title 7, Subtitle C) has the right to refuse to participate in a research program.

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 June 8, 2001.

TRD-200103213

Andrew Hardin

Chairman, Texas MHMR Board

Texas Department of Mental Health and Mental Retardation

Effective date: July 1, 2001

Proposal publication date: March 30, 2001

For further information, please call: (512) 206-5216


Chapter 407. INTERNAL FACILITIES MANAGEMENT

Subchapter B. CONSTRUCTION BIDDING PROCEDURES

25 TAC §§407.51 - 407.58

The Texas Department of Mental Health and Mental Retardation (TDMHMR) adopts the repeals of §§407.51 - 407.58 of Chapter 407, Subchapter B, concerning construction bidding procedures, without changes to the proposal as published in the December 29, 2000, issue of the Texas Register (25 TexReg12897-12898). New §§417.51 - 417.65 of Chapter 417, Subchapter B, concerning contracts management for TDMHMR facilities and Central Office, which replace the repealed sections, are contemporaneously adopted in this issue of the Texas Register .

The repeals allow for the adoption of new and more current rules governing the same matters.

No comment on the proposal was received.

These sections are repealed under the Texas Health and Safety Code, §551.007(c), which requires TDMHMR to adopt rules relating to awarding contracts for the construction of buildings and improvements.

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 June 8, 2001.

TRD-200103218

Andrew Hardin

Chairman, Texas MHMR Board

Texas Department of Mental Health and Mental Retardation

Effective date: July 1, 2001

Proposal publication date: December 29, 2000

For further information, please call: (512) 206-5216


Chapter 414. PROTECTION OF CONSUMERS AND CONSUMER RIGHTS

Subchapter L. ABUSE, NEGLECT, AND EXPLOITATION IN LOCAL AUTHORITIES AND COMMUNITY CENTERS

25 TAC §§414.551 - 414.564

The Texas Department of Mental Health and Mental Retardation (TDMHMR) adopts new §§414.551 - 414.564 of Chapter 414, Subchapter L, concerning abuse, neglect, and exploitation in local authorities and community centers. Sections 414.553, 414.555, 414.559, 414.562, and 414.563 are adopted with changes to the proposed text as published in the February 9, 2001, issue of the Texas Register (26 TexReg 1233). Sections 414.551, 414.552, 414.554, 414.556 - 414.558, 414.560, 414.561, and 414.564 are adopted without changes. The repeals of §§404.41 - 404.55 of Chapter 404, Subchapter B, concerning abuse, neglect, and exploitation of people served by providers of local authorities, which the new sections replace, are contemporaneously adopted in this issue of the Texas Register .

The subchapter describes the requirements for reporting allegations of abuse, neglect, and exploitation of persons served in community centers, local authorities, and their contractors; ensuring the safety and protections of persons served involved in allegations; facilitating investigations; and ensuring proper disciplinary or other action is taken when abuse, neglect, or exploitation is confirmed.

The new subchapter is adopted as part of the reorganization of the TDMHMR rule base to reflect current operational and organizational relationships. The contemporaneous adoption and repeal of these subchapters fulfill the requirements of the Texas Government Code, §2001.039, concerning the periodic review of agency rules.

The definition of "investigatory agency" has been modified to clarify that the Texas Department of Protective and Regulatory Services (TDPRS) investigates allegations in intermediate care facilities for the mentally retarded or persons with a related condition (ICF/MR or ICF/MR/RC) operated by a local authority or community center. Language has also been added to the examples in the definition to state that the Texas Commission on Alcohol and Drug Abuse (TCADA) investigates allegations in TCADA-funded programs operated by a local authority or community center pursuant to a contract with TCADA. The definition of "person served" has been modified to be consistent with TDPRS companion rules, which were contemporaneously proposed and recently adopted.

The phrase "(if appropriate)" has been deleted in §414.555(b) to eliminate confusion regarding whether it is appropriate to notify the alleged victim of an allegation. Language has been added to §414.559(c) to reference a new exhibit, which is a copy of the federal statute cited in the subsection. The exhibits and references sections have been modified to reflect changes made to the subchapter upon adoption.

Written comment on the proposal was received from the Heart of Texas Region Mental Health and Mental Retardation Center, Waco; the Parent Association for the Retarded of Texas (PART), Austin; Life Management Center for MHMR, El Paso; the parent of a state school resident, Garland; and two private citizens, El Paso and Houston.

One commenter requested that the rules address the perpetrator's right to appeal the investigatory agency's finding and the perpetrator's right to review the investigative report. TDMHMR responds that it cannot adopt rules governing matters in another agency's purview. Each investigatory agency is responsible for determining whether it will provide a process for the perpetrator to appeal its finding and review its investigative report.

Two commenters expressed concern that physicians, nurses, dentists, and pharmacists are the only licensed staff to go through a peer review process. The commenter stated that all licensed staff, including licensed professional counselors (LPCs) and social workers (ACPs), should undergo peer review. TDMHMR responds that pursuant to 25 TAC §412.312(e) (relating to Competency and Credentialing), local mental health authorities are required to have a peer review process for all licensed staff that promotes sound clinical practice and professional growth. The section also directs the peer review process to comply with applicable state laws. Currently state law requires investigative peer review for physicians, nurses, dentists, and pharmacists. Neither TDMHMR rules nor TDPRS companion rules preclude a local authority or community center from having an investigative peer review process for its licensed staff who are not physicians, nurses, dentists, and pharmacists.

Regarding the definition of "investigatory agency" in §414.553(11), two commenters suggested adding clarification that TDHS is the investigating agency for ICFs/MR in the community and that TDPRS is the investigating agency for state schools, which are also ICFs/MR. TDMHMR responds that TDHS investigates allegations in all ICFs/MR that are not operated by TDMHMR, a local authority, or community center. Language has been added to clarify that TDPRS investigates allegations in ICFs/MR operated by a local authority or community center.

Regarding the definition of "person served" in §414.553(15), two commenters suggested adding language to clarify that a person served has a disability of mental retardation (or related condition) or mental illness. The commenters expressed concern that no one outside of the TDMHMR service system would know which persons are registered or assigned in the Client Assignment and Registration (CARE) system. TDMHMR responds by adding language that responds to the commenters' concerns.

Regarding notification of the victim or alleged victim in §414.555(b) and (c), two commenters supported the use of "if appropriate" in subsection (b) to reflect that it is not always appropriate to notify the victim or alleged victim. The commenters also recommended adding "if appropriate" to subsection (c) as well. TDMHMR responds that when an allegation of abuse, neglect, or exploitation is made, alleged victims, as well as their guardians, should be notified that the situation has been reported and will be investigated. They also should be informed of the outcome of the investigation. TDMHMR supports open communication between consumers and staff regardless of an alleged victim's perceived level of functioning or understanding. In absence of evidence that such notification is a harmful practice, TDMHMR declines to add language as recommended. Additionally, the phrase "(if appropriate)" has been deleted in §414.555(b) to eliminate confusion regarding the matter.

Regarding Advocacy, Inc. having access to the records of persons served in §414.559(c), two commenters objected to the rule's language because it does not articulate the conditions under which Advocacy, Inc. could have access to such records without consent from the person served or the person's legally authorized representative (LAR). The commenters suggested TDMHMR use the language proposed by TDPRS in 40 TAC, Part 19, §711.1201 relating to Advocacy, Inc.'s access to records. TDMHMR responds that language proposed by TDPRS does not address in enough detail all of the statutory conditions under which Advocacy, Inc. could have access to records. To address the commenters' concern, TDMHMR has added language to reference a new exhibit, which is a copy of the federal statute cited that sets out all of the statutory conditions under which Advocacy, Inc. could have access to records.

One commenter recommended a seamless complaint process instead of a process involving two or more state agencies, Advocacy, Inc., local police departments, and in some places, local investigations by the provider. The commenter noted that with so many alternatives to pursuing a complaint, and with so many different entities potentially involved, consumers are often confused. Given the respective roles and procedures of local providers and the state, consumers are also dispirited because they feel that nothing will be done. The commenter recommended a central agency to accept every complaint and be responsible for tracking its resolution. TDMHMR responds that allegations or complaints by consumers may be reported to TDPRS, the rights protection officer, or both. TDPRS was created to serve as the central agency for receiving and investigating allegations and complaints that involve abuse, neglect, or exploitation in TDMHMR-operated and-contracted programs. Complaints of a general nature that don't explicitly involve abuse, neglect, or exploitation are received and investigated by the rights protection officer. If TDPRS receives a complaint that does not involve abuse, neglect, or exploitation, then TDPRS will instruct the caller to report the complaint to the rights protection officer or will accept the report and refer it to the administrator for resolution. If the rights protection officer receives a complaint or allegation that involves abuse, neglect, or exploitation, then the officer will refer the allegation to TDPRS.

A commenter made remarks concerning the inability of the alleged perpetrator to have full access to information concerning allegations of abuse including, but not limited to, the name of the accuser. The commenter stated that reports that have been de-identified are meaningless. The commenter noted that an allegation of abuse could result in criminal prosecution and that under the United States Constitution, the alleged perpetrator should have the right to know his or her accuser. TDMHMR responds that the commenter's concern relates to the rules of the investigatory agency as limited by state statute. The confidentiality of information related to TDPRS investigations is governed by the Human Resources Code, §48.101, and recently adopted TDPRS rules. Although §48.101(a)(2) protects the identity of persons who report an allegation, presumably because of the potential for retaliation, §48.101(c) permits a court to order the disclosure of any confidential information under certain conditions.

The new sections are adopted under the Texas Health and Safety Code, §532.015, which provides the Texas Mental Health and Mental Retardation Board with broad rulemaking authority; the Texas Human Resources Code, Chapter 48, which requires the reporting and investigations of abuse, neglect, and exploitation of elderly and disabled persons; §48.255(c), which requires TDMHMR and TDPRS to develop joint rules to facilitate the investigations in community centers and local authorities; the Texas Family Code, Chapter 261, which requires the reporting and investigations of abuse and neglect of a child; and the Texas Civil Practice and Remedies Code, §81.006, which requires the reporting of alleged sexual exploitation by a mental health services provider to the county prosecuting attorney.

§414.553.Definitions.

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

(1)

Abuse--For purposes of reporting allegations, the term is defined by the investigatory agency. For purposes of classifying allegations as part of the TDMHMR Client Abuse and Neglect Reporting System (CANRS), the term is defined in CANRS Definitions, which is referenced as Exhibit A of §414.562 of this title (relating to Exhibits).

(2)

Administrator--The individual in charge of a local authority or community center, or designee.

(3)

Agent--Any individual not employed by a local authority, community center, or contractor, but working under the auspices of the local authority, community center, or contractor (e.g., student, volunteer).

(4)

Allegation--A report by an individual suspecting or having knowledge that a person served has been or is in a state of abuse, neglect, or exploitation as defined by the investigatory agency or in CANRS Definitions, which is referenced as Exhibit A in §414.562 of this title.

(5)

Clinical practice--Relates to the demonstration of professional competence by a licensed professional.

(6)

Community center--A community mental health center, community mental retardation center, or community mental health and mental retardation center, established under the Texas Health and Safety Code, Title 7, Chapter 534, Subchapter A.

(7)

Confirmed--The finding of an investigation if there is a preponderance of credible evidence to support that abuse, neglect, or exploitation occurred.

(8)

Contractor--Any organization, entity, or individual who contracts with a local authority or community center to provide mental health or mental retardation services to a person served. The term includes a local independent school district with which a local authority or community centers has a memorandum of understanding (MOU) for educational services.

(9)

Contractor CEO--The individual in charge of a contractor that has one or more employees excluding the CEO.

(10)

Exploitation--For purposes of reporting allegations, the term is defined by the investigatory agency. For purposes of classifying allegations as part of the TDMHMR CANRS, the term is defined in CANRS Definitions, which is referenced as Exhibit A in §414.562 of this title.

(11)

Investigatory agency--An agency with statutory authority to investigate abuse, neglect, and exploitation of a person served by a local authority, community center, or contractor. For example, the Texas Department of Protective and Regulatory Services investigates allegations in local authorities and community centers (including intermediate care facilities for the mentally retarded or persons with a related condition (ICF/MR or ICF/MR/RC) operated by a local authority or community center) and all contractors of local authorities and community centers except psychiatric hospitals; the Texas Department of Health (TDH) investigates allegations in psychiatric hospitals; and the Texas Commission on Alcohol and Drug Abuse (TCADA) investigates allegations in TCADA-funded programs operated by a local authority or community center pursuant to a contract with TCADA.

(12)

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

(13)

Neglect--For purposes of reporting allegations, the term is defined by the investigatory agency. For purposes of classifying allegations as part of the TDMHMR CANRS, the term is defined in CANRS Definitions, which is referenced as Exhibit A in §414.562 of this title.

(14)

Perpetrator--An individual who has committed an act of abuse, neglect, or exploitation.

(15)

Person served--

(A)

Any person with mental illness or mental retardation receiving services from a local authority or community center or through a contract with a local authority or community center who is registered or assigned in the Client Assignment and Registration (CARE) system; or

(B)

any child or disabled person as defined in the Human Resources Code, Chapter 48, who is otherwise receiving services from a local authority or community center or through a contract with a local authority or community center.

(16)

Professional review--A review of clinical and/or professional practice(s) by peer professionals.

(17)

Retaliatory action--Any action intended to inflict emotional or physical harm or inconvenience on an employee, agent, or person served that is taken because he or she has reported abuse, neglect, or exploitation. Retaliatory action includes, but is not limited to, harassment, disciplinary measures, discrimination, reprimand, threat, and criticism.

§414.555.Information To Be Provided to Victim or Alleged Victim and Others.

(a)

Each local authority and community center shall promulgate and implement policies and procedures that meet the requirements of this section.

(b)

As soon as possible, but no later than 24 hours following notification of an allegation by the investigatory agency, the administrator or contractor CEO shall notify the alleged victim and the alleged victim's guardian or parent (if the alleged victim is a minor) of the allegation.

(c)

The administrator or contractor CEO shall ensure that the victim or alleged victim, guardian, or parent (if the victim or alleged victim is a minor) is notified of:

(1)

the finding and any decisions made after review and/or appeal of the finding;

(2)

the method to appeal the finding, if any;

(3)

how to receive a copy of the investigative report; and

(4)

if the allegation is confirmed, the disciplinary or other action taken against the perpetrator.

§414.559.Confidentiality of Investigative Process and Report.

(a)

The reports, records, and working papers used by or developed in the investigative process by an investigatory agency, and the investigatory agency's resulting investigative report, are confidential and may be disclosed only as allowed by law or rule.

(b)

Upon request, the administrator or contractor CEO will provide a copy of the investigative report to the victim or alleged victim or guardian with the identities of other persons served and any information determined confidential by law concealed. The administrator or contractor CEO may charge a reasonable fee for providing a copy of the investigative report.

(c)

Advocacy, Inc. is entitled to access the records of persons served in accordance with 42 USC §10805 and §10806 or §6042(a)(2)(I) (Protection and Advocacy of Individuals with Mental Illness and Protection and Advocacy of Individuals with Developmental Disabilities). A copy of 42 USC §10805, §10806, and §6042(a)(2)(I) are referenced as Exhibit F in §414.562 of this title (relating to Exhibits).

§414.562.Exhibits.

The following exhibits are referenced in this subchapter:

(1)

Exhibit A--CANRS Definitions;

(2)

Exhibit B--"Guidelines for Securing Evidence";

(3)

Exhibit C--a copy of the Texas Civil Practice and Remedies Code, §81.001 and §81.006;

(4)

Exhibit D--CANRS Classifications;

(5)

Exhibit E--Client Abuse and Neglect Report form (AN-1-A); and

(6)

Exhibit F--a copy of 42 USC §10805, §10806, and §6042(a)(2)(I).

§414.563.References.

Reference is made to the following statutes and rules:

(1)

Texas Health and Safety Code, Chapter 534, Subchapter A, and §533.035(a);

(2)

Texas Civil Practices and Remedies Code, Chapter 81;

(3)

Human Resources Code, §48.255(c);

(4)

42 USC §10805, §10806, and §6042(a)(2)(I); and

(5)

Texas Administrative Code, Title 40, Chapter 711 (relating to Investigations in TDMHMR Facilities and Related 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 June 8, 2001.

TRD-200103214

Andrew Hardin

Chairman, Texas MHMR Board

Texas Department of Mental Health and Mental Retardation

Effective date: July 1, 2001

Proposal publication date: February 9, 2001

For further information, please call: (512) 206-4516


Subchapter P. RESEARCH IN TDMHMR FACILITIES

25 TAC §§414.751 - 414.764

The Texas Department of Mental Health and Mental Retardation (TDMHMR) adopts new §§414.751 - 414.764 of Chapter 414, Subchapter P, concerning research in TDMHMR facilities. Sections 414.755, 414.757, 414.758, 414.760, and 414.761 are adopted with changes to the proposed text as published in the March 30, 2001, issue of the Texas Register (26TexReg2480-2487). Sections 414.751 - 414.754, 414.756, 414.759, 414.762 - 414.764 are adopted without changes. The repeals of §§405.401 - 405.411 and 405.414 - 405.417 of Chapter 405, Subchapter P, concerning Research in Department Facilities, which the new sections replace, are contemporaneously adopted in this issue of the Texas Register .

The new sections establish uniform guidelines for the review, approval, conduct, and oversight of research in TDMHMR facilities. The sections describe TDMHMR's general principles for research in its facilities; describe four options under which a facility may choose an institutional review board (IRB) as its designated IRB; describe the functions and operations of a designated IRB, including the responsibilities and requirements for reviewing, approving, and monitoring research; and describe the requirements for procedures for obtaining informed consent from prospective human subjects. The new subchapter adopts by reference Title 45, Code of Federal Regulations, Part 46 (Protection of Human Subjects), to ensure the protection of human subjects involved in research; adopts by reference "The Belmont Report: Ethical Principles and Guidelines for the Protection of Human Subjects of Research, Report of the National Commission for the Protection of Human Subjects of Biomedical and Behavioral Research" (April 18, 1979), to ensure ethical principles are maintained when research involving human subjects is conducted; and adopts by reference Title 42, Code of Federal Regulations, Part 50, Subpart A (Responsibility of PHS Awardee and Applicant Institutions for Dealing With and Reporting Possible Misconduct in Science).

The new subchapter is adopted as part of the reorganization of the TDMHMR rule base to reflect current operational and organizational relationships. The contemporaneous adoption and repeal of these subchapters fulfill the requirements of the Texas Government Code, §2001.039, concerning the periodic review of agency rules.

Language has been modified in §414.755(d)(1)(B)(iii), (2)(B)(iii), and (3)(B)(i)-(ii) to broaden the possible scope of the advocate's representation on the IRB. Language has been added to §414.757(a) requiring research proposals that extend human subjects' use of an investigational medication or device as the primary treatment after discharge from the facility to contain assurances that subjects receive appropriate continuity of care. Language in §414.757(f) was modified to clarify that any research proposal described in paragraphs (1)-(3) required approval by the TDMHMR medical director. The proposed phrase "from prospective human subjects" in §414.758(a)(1) and (2) has been deleted because it wrongly implied that informed consent could not be obtained from the LAR. Language has been added to §414.758(b)(1) clarifying that, before approaching potential subjects who have previously objected to participating in a research protocol, the key researcher must obtain approval of the subjects' LARs, if applicable. Language has been modified in §414.760(b)(3) requiring the ORA to ensure that the agency funding the research is notified of confirmed misconduct in science, rather than allegations of misconduct in science. Language has been added to the same paragraph requiring the ORA to ensure that the IRB that approved the research protocol is notified of confirmed misconduct in science in the research study. Language has been added to §414.761(5) requiring the ORA to report misconduct in science information in accordance with 42 CFR 50, Subpart A.

Written comment on the proposal was received from Advocacy, Inc., Austin; a private citizen, Heath; a professor and vice chair for research at the University of Texas Medical School, Houston; a parent of a state school resident, Garland; and Lubbock Regional MHMR Center, Lubbock.

One commenter stated that the proposed rules provide a fair compromise between protecting the rights of the individual, including the right to informed consent and freedom from coercion, without making the research environment so cumbersome that it would impede much needed and valued research. TDMHMR appreciates the commenter's support of the proposed rules.

One commenter expressed full agreement with the proposed rules. TDMHMR appreciates the commenter's agreement.

Two commenters disagreed with the prohibition of research protocols that extend a human subject's use of placebos into the community in §414.754(j)(3). One of the commenters stated that situations exist in which an outpatient placebo-controlled study is necessary in order to determine efficacy of a maintenance treatment. The other commenter, who is an active clinical researcher, stated that studies done in the community with a placebo do not always carry high risk. The commenter noted that "the benefits of a subject's close supervision, free medical care, and early withdrawal from such trials in the early phase (to minimize distress) can often outweigh the small theoretical risk" and "patients with stable psychotic conditions with no prior history of self-harm or violence can safely be monitored in such a scenario." The commenter suggested that the rules provide for a "second opinion from an outside consultant (who is a practicing clinical or academic psychiatrist)" in cases in which Central Office denies approval for the research study. TDMHMR responds that the rules' prohibition of research protocols that extend a human subject's use of placebos into the community is consistent with the rules' applicability and scope, which are limited to research conducted in TDMHMR facilities. Although TDMHMR agrees with the commenters that studies conducted in the community with a placebo have value and do not always carry high risk, TDMHMR must consider the effects that such studies would have on facility resources and the facility's designated IRB, which is responsible for monitoring all research protocols that it approves. Regarding a second opinion from an outside consultant when Central Office denies approval for the research study, TDMHMR responds that Central Office does not approve or deny research proposals; a facility's designated IRB and the facility CEO are responsible for approving and denying research proposals. If the commenter is referring to §414.757(f), in which certain research proposals require additional approval from the TDMHMR medical director in Central Office, then TDMHMR responds that, although the rules do not preclude the medical director from seeking a second opinion, it declines to require that a second opinion be obtained because the medical director is ultimately responsible for making the final decision. TDMHMR notes that an outside consultant would be unable to consider the varied issues that may be a consideration in approval or disapproval by the medical director.

Regarding the definition of "assent" in §414.753(1), one commenter asked how an individual who does not have capacity or legal authority to consent could make an affirmative agreement to participate in research. The commenter requested that the definition be deleted because "TDMHMR must have 'informed consent' to allow individuals to participate in research." TDMHMR responds that the subchapter's use of the term "assent" in §414.758 does not negate the requirement to obtain informed consent. It merely requires that procedures be in place to attempt, to the extent possible given the prospective subject's capacity, to obtain the subject's assent to participation after the subject's LAR has provided consent. TDMHMR declines to delete the definition.

Regarding TDMHMR's assurances of protection for human subjects in §414.754(e), (m), and (n), one commenter stated that she did not trust TDMHMR to comply with its rules because "the same people who allowed the QLS (Quality of Life Study) violations to happen are the ones who are suppose(d) to see this protection is done." The commenter stated she identified three violations related to confidentiality and informed consent in the 1995-1996 research study. TDMHMR responds that concerns raised by the Quality of Life Study were given major consideration in the previous revision of the department's research rules. The new rules governing research in facilities became effective in November 1996 after the QLS concluded. The new rules articulated TDMHMR's policy that the guiding principle for all research involving human subjects is the safety, well-being, and dignity of the subject. The rules also were revised to contain additional safeguards and procedures that provided a higher level of scrutiny of research proposals and greater protection for human subjects. The provisions of this subchapter continue to provide for that high level of scrutiny of research proposals and protection for human subjects.

Regarding membership of the facility IRB and the university IRB in §414.755(d)(1)(B)(ii) and (iii) and §414.755(d)(2)(B)(ii) and (iii), one commenter requested that references to family member and advocate be changed to LAR (legally authorized representative). The commenter objected to "an advocate like Advocacy, Inc." being a member of a designated IRB. TDMHMR responds that the role of the "family member" or "advocate" as an IRB member is to provide input and perspectives related to the mental disorders/conditions and concerns of the population(s) served by the facility. TDMHMR declines to change the language as requested because it would unnecessarily eliminate qualified persons from serving on an IRB. TDMHMR notes that the rule requirement does not preclude an LAR from being an IRB member, if the LAR were also a family member or advocate.

Regarding a description of the research protocol in §414.757(a)(1), one commenter suggested adding two subparagraphs requiring the research protocol description to include a process to protect confidentiality and a process to obtain and document informed consent. TDMHMR responds that adding language as suggested by the commenter is unnecessary because federal regulations, specifically 45 CFR 46, §46.111 (which are adopted by reference), require IRB approval to be dependent on the protocol meeting the regulations' criteria for obtaining and documenting informed consent and for protection of confidentiality.

Regarding the research review and documentation process for the university IRB and the Central Office IRB in §414.757(e)(2)-(4), one commenter objected to the facility CEO having "all the control and approval." The commenter requested that language be added requiring the facility IRB to review and approve the research proposal in addition to the facility CEO. TDMHMR declines to add language requiring the facility IRB to review and approve the research proposal because the processes described in paragraphs (2)-(4) indicate that the facility does not have a facility IRB . (The process described in paragraph (1) indicates that the facility has a facility IRB.) TDMHMR notes that §414.755(b) requires each facility that participates in research to have a designated IRB , which can be a facility IRB, another facility's IRB, a university IRB, or the Central Office IRB. Additionally, TDMHMR does not agree that the facility CEO has "all the control and approval" and notes that a facility CEO cannot approve a research protocol that has been disapproved by the facility's designated IRB. TDMHMR also notes that an IRB reviews research proposals using established criteria related to ethical principles and protection of human subjects, while a facility CEO reviews research proposals for their potential impact on the facility's operations and resources.

Regarding informed consent in §414.758(a)(1)-(2), one commenter suggested adding "or LAR" after the phrase "obtaining and documenting informed consent from prospective human subjects." TDMHMR responds that, although the definition of "informed consent" provides for an LAR's approval, it agrees with the commenter's perception that the phrase "from prospective human subjects" in §414.758 seems to imply that informed consent cannot be obtained from the LAR. Rather than adding "or LAR," TDMHMR has deleted the phrase "from prospective human subjects" from §414.758(a)(1) and (2).

Regarding minors and informed consent in §414.758(a)(3), one commenter requested that the requirement apply to individuals with LARs as well as minors. TDMHMR declines to add language as requested by the commenter because the paragraph requires compliance with 45 CFR 46, §46.408, which concerns only minor children. TDMHMR notes that the specifically cited federal regulations (i.e., 45 CFR 46, §46.408) do not provide additional protections for minors as human subjects. The regulations mainly ensure that parents of minor children are afforded their full rights and responsibilities, which are substantially broader than the rights and responsibilities of parents of adult children and for an LAR of an adult.

Regarding approaching individuals who previously objected or who have not given actual consent in §414.758(b)(1), one commenter suggested adding a sentence to state, "These approaches will only be attempted after obtaining the consent of the individual's LAR." TDMHMR responds by modifying language which addresses the commenter's concern.

Regarding assessing comprehension and capacity throughout the course of the research protocol in §414.758(b)(2), one commenter stated that the paragraph should be deleted because "it is already covered under (1)." TDMHMR disagrees that paragraph (1) covers the same issues contained in paragraph (2), and declines to delete paragraph (2). The circumstance in paragraph (2), which concerns consumers who are participating in a research protocol, requires action by key researchers to assess subjects' capacity and provide information on an ongoing basis to assure maximum comprehension of the various aspects of the research protocol that affect the subject.

Regarding the Office of Research Administration's (ORA's) actions when it receives a report of alleged misconduct in science in §414.760(b), one commenter recommended adding a requirement for the ORA to notify the human subjects or their LARs of the allegation and the disposition. TDMHMR declines to add a requirement as suggested because misconduct in science is generally related to the integrity of research data. Notifying human subjects or their LARs of alleged or confirmed misconduct in science that does not affect the health, welfare, or rights of human subjects would serve no useful purpose. TDMHMR supports the exchange of vital information between key researchers and human subjects or their LARs that is related to the health, welfare, and rights of human subjects and notes that federal regulations require such exchange of information. Section 46.109(b) of 45 CFR 46 addresses the IRB's responsibility for ensuring the provision of information to subjects and LARs that the IRB determines would meaningfully add to the protection of their rights and welfare. To ensure the IRB has access to information in which to make a determination, language has been added to §414.760(b)(3) requiring the IRB that approved the research protocol to be notified of confirmed cases of misconduct in science. Additionally, §46.116(b)(5) of 45 CFR 46 requires that each subject or LAR be notified of "significant new findings developed during the course of the research which may relate to the subject's willingness to continue participation."

Regarding the ORA in §414.761, one commenter asked "Did this exist in 1995-1996?" The commenter mentioned the Quality of Life Study conducted in 1995-1996 and three violations she identified. TDMHMR responds that the ORA did not exist in 1995-1996. TDMHMR notes that the adoption of the previous subchapter governing research (Chapter 405, Subchapter P), which became effective November 1, 1996, contained additional safeguards and procedures that provided a higher level of scrutiny of research proposals and greater protection for human subjects. The provisions of this subchapter continue to provide for that high level of scrutiny of research proposals and protection for human subjects.

The new rules are adopted under the Texas Health and Safety Code, §532.015, which provides the Texas MHMR Board (board) with broad rulemaking authority, and §576.021, which states that a patient receiving mental health services under the Texas Mental Health Code (Texas Health and Safety Code, Title 7, Subtitle C) has the right to refuse to participate in a research program.

§414.751.Purpose.

The purpose of this subchapter is to establish uniform guidelines for the review, approval, conduct, and oversight of research in facilities that:

(1)

ensure the protection of the rights and welfare of human subjects involved in research;

(2)

provide for the creation and utilization of a designated Institutional Review Board (IRB) for each facility electing to be involved in the conduct of research;

(3)

provide for the investigation of allegations of misconduct in science related to research conducted at a facility;

(4)

conform with the requirements of Title 45, Code of Federal Regulations, Part 46 (Protection of Human Subjects), which is adopted by reference and referenced as Exhibit A in §414.762 of this title (relating to Exhibits).

§414.752.Application.

This subchapter applies to all research involving:

(1)

individuals receiving services from a facility; or

(2)

facility resources (e.g., employees, property, and non-public information).

§414.753.Definitions.

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

(1)

Assent - Affirmative agreement of a prospective human subject to participate in research, which is obtained when the subject does not have capacity or legal authority to consent.

(2)

Central Office - TDMHMR's administrative offices in Austin.

(3)

Designated institutional review board (IRB) - The IRB, chosen by the facility and approved by the Office of Research Administration in accordance with this subchapter, that will review, approve, and monitor all research to be conducted at the facility.

(4)

Facility - Any state hospital, state school, state center, or any other entity which is now or hereafter made a part of TDMHMR.

(5)

Facility rights officer - An employee appointed by a facility CEO to protect and advocate for the rights of persons receiving services from the facility.

(6)

Human subject - Consistent with §46.102(f) of 45 CFR 46, referenced as Exhibit A in §414.762 of this title (relating to Exhibits), a living individual about whom a key researcher conducting research obtains:

(A)

data through intervention or interaction with the individual; or

(B)

identifiable private information.

(7)

Individual - A person who has received or is receiving mental health or mental retardation services from a facility.

(8)

Informed consent - The knowing approval of an individual or an individual's legally authorized representative (LAR) to participate in a research study, given under the individual's or LAR's ability to exercise free power of choice without undue inducement or any element of force, fraud, deceit, duress, or other form of constraint or coercion.

(9)

Institutional review board (IRB) - A board whose membership meets the requirements of §414.755(d) of this title (relating to Designated Institutional Review Board (IRB)), and whose purpose is to review and approve proposed research as well as oversee the conduct of approved research.

(10)

Investigation (of misconduct in science) - The formal examination and evaluation of all relevant facts to determine if misconduct in science has occurred.

(11)

Investigational medication or device - Any drug, biological product, or medical device under investigation for human use that is not currently approved by the Food and Drug Administration for the indication being studied.

(12)

Key researcher - A principal investigator, a co-investigator, or a person who has direct and ongoing contact with human subjects participating in a research study or with prospective human subjects.

(13)

Legally authorized representative (LAR) - A person or judicial or other body authorized under applicable law to consent on behalf of a prospective human subject to the subject's participation in a research study.

(14)

Mental health priority population - Persons with mental illness, including severe emotional disturbance, identified in TDMHMR's current strategic plan as being most in need of mental health services.

(15)

Mental retardation priority population - Persons with mental retardation identified in TDMHMR's current strategic plan as being most in need of mental retardation services.

(16)

Minimal risk - The probability and magnitude of harm or discomfort anticipated in the research are not greater in and of themselves than those ordinarily encountered in daily life or during the performance of routine psychical or psychological examination or tests.

(17)

Misconduct in science - The fabrication, falsification, plagiarism, or other practices that seriously deviate from those that are commonly accepted within the scientific community for proposing, conducting, or reporting research. It does not include honest error or honest differences in interpretations or judgments of data.

(18)

Office of Research Administration (ORA) - The Central Office department that is responsible for the duties described in §414.761 of this title (relating to Responsibilities of the Office of Research Administration (ORA)).

(19)

Principal investigator - The person identified as responsible for conducting a research study.

(20)

Research - A systematic investigation, including research development, testing and evaluation, designed to develop or contribute to generalizable knowledge. Activities that meet this definition constitute research for purposes of this subchapter whether or not they are conducted or supported under a program which is considered research for other purposes. For example, certain demonstration and service programs may include research activities.

(21)

TDMHMR - The Texas Department of Mental Health and Mental Retardation.

§414.754.General Principles.

(a)

Participation in research that can advance scientific knowledge of mental disorders is integral to the mission of TDMHMR. TDMHMR recognizes and accepts its obligation to protect the rights of human subjects involved in research and supports, as a minimum standard, the preservation of those rights that are constitutionally and legally guaranteed and protected, and adopts the policy that the guiding principle for all research involving human subjects is the safety, well-being, and dignity of the subject.

(b)

To ensure the protection of human subjects involved in research at its facilities, TDMHMR promulgates this subchapter and adopts by reference Title 45, Code of Federal Regulations, Part 46 (Protection of Human Subjects), referenced as Exhibit A in §414.762 of this title (relating to Exhibits).

(c)

To ensure ethical principles are maintained when research involving human subjects is conducted at its facilities, TDMHMR adopts by reference "The Belmont Report: Ethical Principles and Guidelines for the Protection of Human Subjects of Research, Report of the National Commission for the Protection of Human Subjects of Biomedical and Behavioral Research" (April 18, 1979), referenced as Exhibit B in §414.762 of this title (relating to Exhibits).

(d)

Unless scientifically justified, individuals may not be excluded from participating in research on the basis of personal characteristics, such as race, color, ethnicity, national origin, religion, sex, age, disability, sexual orientation, or political affiliation.

(e)

TDMHMR recognizes and expresses a commitment to conducting research in a manner that is consistent with the best interests and protection of confidentiality and the personal rights of human subjects involved in the research. This includes conducting research in a manner that protects individuals from participating in research activities that conflict with their individual treatment goals.

(f)

Individuals receiving mental health services under an order of protective custody pursuant to the Texas Health and Safety Code, Chapter 574, may not be approached about participation in a research study involving an investigational medication or device prior to the entry of an order for temporary or extended mental health services.

(g)

No research involving human subjects may be conducted unless the risks to human subjects are minimized and are reasonable in relation to the anticipated benefits.

(h)

No undue inducement or coercion may be used to encourage human subjects to participate in a research study.

(i)

Research may not be conducted with human subjects who are involuntarily committed if the research involves:

(1)

placebos as the primary medication therapy;

(2)

medication or doses of medication as the primary medication therapy which are known to be ineffective for the targeted disorder or condition; or

(3)

an investigational medication or device that is proposed to be undertaken when previous research on the medication or device with 100 human subjects or fewer has provided minimal or no documentation of the efficacy and safety of the medication or device for the population with the targeted disorder or condition.

(j)

Research may not be conducted at a facility if the protocol:

(1)

extends the use of a placebo or washout period unreasonably;

(2)

deprives the human subject of reasonable relief; or

(3)

extends a human subject's use of placebos as the primary medication therapy after the subject is discharged from the facility.

(k)

Research conducted at a facility may not hinder the facility's ability to accomplish its primary purpose.

(l)

Unless otherwise provided for in this subchapter, research involving human subjects may not be conducted at a facility unless:

(1)

the research has been reviewed and approved by the facility's designated IRB in accordance with §414.757 of this title (relating to Review and Approval of Proposed Research);

(2)

the facility CEO has agreed to have the research conducted at the facility; and

(3)

if required, the necessary assurance and certification has been submitted to the appropriate federal agency, (e.g., Health and Human Services, Food and Drug Administration) and the agency has indicated its approval.

(m)

A human subject involved in research or his/her LAR is entitled to file a complaint about alleged mistreatment or other concerns relating to the research with the facility's rights officer or with any other applicable complaint mechanism in place.

(n)

All research undertaken at facilities must be conducted with a fundamental commitment to high ethical standards regarding the conduct of scientific research. Any evidence of allegations of misconduct in science shall be reviewed and investigated promptly and thoroughly in accordance with 42 CFR 50, Subpart A, (Responsibility of PHS Awardee and Applicant Institutions for Dealing With and Reporting Possible Misconduct in Science), which is adopted by reference and referenced as Exhibit C in §414.762 of this title (relating to Exhibits), and §414.760 of this title (relating to Investigation of Allegations of Misconduct in Science).

§414.755.Designated Institutional Review Board (IRB).

(a)

Each facility electing to participate in research must have a designated IRB for the purpose of reviewing, approving, and monitoring all research conducted at that facility, with the exception of research involving multiple facilities as provided by subsection (c) of this section.

(b)

A facility may choose one of the following options for its designated IRB, which must be approved by the ORA as outlined in subsection (f) of this section.

(1)

Facility IRB. An IRB, established and operated by a facility, whose membership meets the requirements described in subsection (d) of this section.

(2)

Another facility's IRB. A facility IRB as described in paragraph (1) of this subsection.

(3)

University IRB. An IRB, established and operated by a university and whose membership meets the requirements described in subsection (d) of this section.

(4)

Central Office IRB. An IRB, established and operated by Central Office, whose membership meets the requirements described in subsection (d) of this section.

(c)

A facility's CEO or a facility's designated IRB may request that the Central Office IRB act as the facility's designated IRB for a research study that involves multiple facilities.

(d)

The membership of the IRB must comply with the requirements in §46.107 of 45 CFR 46, referenced as Exhibit A in §414.762 of this title (relating to Exhibits) and this subsection.

(1)

Facility IRB. Membership of a facility IRB must include at least three members who are familiar with the mental disorders/conditions and concerns of the population(s) served by the facility or facilities.

(A)

At least one of the three members described in paragraph (1) of this subsection must be a professional in the field of mental health or mental retardation, as appropriate to the facility or facilities.

(B)

At least two of the three members described in paragraph (1) of this subsection must be:

(i)

a person who is or has been in the mental health priority population or mental retardation priority population, as appropriate to the facility or facilities;

(ii)

a family member of a person who is or has been in the mental health priority population or mental retardation priority population, as appropriate to the facility or facilities; or

(iii)

an advocate for persons who are or have been in the mental health priority population or mental retardation priority population, as appropriate to the facility or facilities.

(2)

University IRB. Membership of a university IRB must include at least three members or ad hoc members who are familiar with the mental disorders/conditions and concerns of the population(s) served by the facility or facilities.

(A)

At least one of the three members described in paragraph (2) of this subsection must be a professional in the field of mental health or mental retardation, as appropriate to the facility or facilities.

(B)

At least two of the three members described in paragraph (2) of this subsection must be:

(i)

a person who is or has been in the mental health priority population or mental retardation priority population, as appropriate to the facility or facilities;

(ii)

a family member of a person who is or has been in the mental health priority population or mental retardation priority population, as appropriate to the facility or facilities; or

(iii)

an advocate for persons who are or have been in the mental health priority population or mental retardation priority population, as appropriate to the facility or facilities.

(3)

Central Office IRB. Membership of the Central Office IRB must include local representation from various regions of the state and at least three members who are familiar with the mental disorders/conditions and concerns of the population(s) served by TDMHMR.

(A)

At least one of the three members described in paragraph (3) of this subsection must be a professional in the field of mental health and mental retardation.

(B)

At least two of the three members described in paragraph (3) of this subsection must be:

(i)

a person who is or has been in the mental health priority population, a family member of a person who is or has been in the mental health priority population, or an advocate for persons who are or have been in the mental health priority population; and

(ii)

a person who is or has been in the mental retardation priority population, a family member of a person who is or has been in the mental retardation priority population, or an advocate for persons who are or have been in the mental retardation priority population.

(e)

Each IRB must have written policies and procedures that are consistent with this subchapter and TDMHMR's rules governing the care and protection of individuals as described in §414.763(4) of this title (relating to References) and that address:

(1)

the functions and operations of the IRB as required by §46.103(b)(4) and (b)(5) of 45 CFR 46 (Exhibit A);

(2)

the review or screening process to determine whether proposed research is exempt from the requirements of federal regulations made in accordance with §46.101(b) of 45 CFR 46 (Exhibit A), including required documentation, and any necessary approvals;

(3)

the process for ensuring that each IRB member and key researcher involved in an approved research study receives documented training in applicable ethics, laws, and regulations governing research involving human subjects; and

(4)

the process for disclosing and considering potential conflicts of interest, financial or otherwise, by IRB members and key researchers.

(f)

ORA approval of a designated IRB.

(1)

A facility seeking approval for its own facility IRB, another facility's IRB, or a university IRB as its designated IRB, as described in subsection (b)(1), (b)(2), or (b)(3) of this section, must submit the following to the ORA:

(A)

IRB membership information in sufficient detail to determine compliance with subsection (d) of this section and which describes each member's chief anticipated contribution to IRB deliberations, and any employment or other relationship between each member and the facility, university, or Central Office, as appropriate;

(B)

the written policies and procedures described in subsection (e) of this section;

(C)

the written policy for the communication of IRB deliberations, recommendations, and decisions to the facility CEO and the ORA; and

(D)

if approval is for a university IRB or another facility's IRB, a copy of the written agreement in which the university IRB or other facility IRB accepts responsibility for reviewing, approving, and monitoring all research to be conducted at the facility seeking approval.

(2)

A facility seeking approval for the Central Office IRB as its designated IRB, as described in subsection (b)(4) of this section, must submit a written request from the facility CEO to the ORA.

(g)

The ORA shall review the information submitted by the facility and will approve, disapprove, or enter into negotiations to attain approval for the IRB as the facility's designated IRB. The ORA will provide written notice of approval or disapproval to the requesting facility.

(h)

Any change in a designated IRB's membership, policies, or procedures must be reported to and approved by the ORA.

(i)

The ORA may require that a designated IRB comply with additional requirements related to documentation and approval if the ORA determines that such requirements are necessary to ensure the protection of human subjects.

(j)

The ORA may revoke approval of a designated IRB at any time the ORA determines the IRB fails to maintain standards in accordance with federal regulations and this subchapter.

§414.756.IRB Functions and Operations.

(a)

Each designated IRB shall:

(1)

follow its written policies and procedures as described in §414.755(e) of this title (relating to Designated Institutional Review Board (IRB));

(2)

function in accordance with §46.108 of 45 CFR 46 (Exhibit A);

(3)

ensure proposed research is reviewed and approved in accordance with this subchapter;

(4)

except when an expedited review is used as described in §46.108(b) of 45 CFR 46 (Exhibit A), ensure proposed research is reviewed and approved only at meetings in which at least one of each of the following members are present, participating, and voting:

(A)

a member who satisfies the requirements of §414.755(d)(1)(A), (d)(2)(A), or (d)(3)(A) of this title (relating to Designated Institutional Review Board (IRB)), as appropriate to the IRB; and

(B)

a member who satisfies the requirements of §414.755(d)(1)(B), (d)(2)(B), or (d)(3)(B) of this title (relating to Designated Institutional Review Board (IRB)), as appropriate to the IRB, and in the case of the Central Office IRB, as appropriate to the facility or facilities for which the research is proposed.

(5)

exercise appropriate oversight to ensure that:

(A)

its policies and procedures designed for protecting the rights and welfare of human subjects are being effectively applied; and

(B)

research is being conducted at the facility or facilities in accordance with the approved protocol;

(6)

maintain records of its operations in accordance with §46.115 of 45 CFR 46 (Exhibit A);

(7)

submit to the ORA documentation of its continuing review of all approved and active research protocols; and

(8)

immediately notify the ORA of any unanticipated serious problems or events involving risks to the human subjects or others.

(b)

Each designated IRB has the authority to suspend or terminate research that is not being conducted in accordance with the IRB's requirements or that has been associated with significant unexpected harm to human subjects. Any suspension or termination of research shall be in writing and include a statement of the reasons for the IRB's actions and shall be reported promptly to the principal investigator, appropriate facility or facilities officials, and the ORA.

§414.757.Review and Approval of Proposed Research.

(a)

All proposed research must be submitted to the facility's designated IRB and contain adequate written information for the IRB to determine whether the requirements described in §46.111 of 45 CFR 46, referenced as Exhibit A in §414.762 of this title (relating to Exhibits), are satisfied, including the following:

(1)

A complete description of how the research protocol will be implemented at the facility or facilities, including;

(A)

the process for recruiting and screening human subjects;

(B)

how many subjects are required at the facility or facilities; and

(C)

the process for and level of clinical monitoring of human subjects throughout the research period.

(2)

A thorough justification of the research protocol and proposed analyses, including;

(A)

a description of the procedures designed to minimize risks to subjects; and

(B)

the scientific rationale for targeting the proposed population(s) as human subjects.

(3)

If the proposed research would extend human subjects' use of an investigational medication or device as the primary treatment after the subjects are discharged from the facility, then the research proposal must also contain a memorandum of agreement between the principal investigator and each local authority responsible for subjects' continuity of care that delineates responsibility for each continuity of care activity, as required by TDMHMR rules, including how these activities will be coordinated and communicated. The delineated responsibilities must ensure subjects receive appropriate care after their discharge from the facility and following the conclusion of their participation in the research study.

(b)

Each designated IRB shall review all proposed research at the facility in accordance with §46.109 of 45 CFR 46 (Exhibit A) and §414.758 of this title (relating to Informed Consent).

(c)

Each designated IRB has the authority to approve, require modifications to, or disapprove any proposed research. Approval of proposed research shall be based on:

(1)

the requirements described in §46.111 of 45 CFR 46 (Exhibit A), concerning criteria for IRB approval of research;

(2)

the requirements described in §414.758 of this title (relating to Informed Consent);

(3)

the requirements described in §414.759 of this title (relating to Human Subject Selection); and

(4)

consideration of the information described in subsection (a)(1)-(2) of this section.

(d)

The designated IRB may take into consideration deliberations and reviews from another IRB that has approved the protocol for a specific research proposal, but the designated IRB is ultimately responsible for approval of the proposed research.

(e)

Research review and documentation process.

(1)

Facility IRB as the designated IRB. The research review and documentation process for a facility IRB, as described in §414.755(b)(1) and (2) of this title (relating to Designated Institutional Review Board (IRB)), is generally as follows.

(A)

The research proposal is reviewed by the facility IRB and, if approved, forwarded to the CEO of the facility where the research is to be conducted.

(B)

The facility CEO is informed of the facility IRB's approval or disapproval and recommendations, if any.

(C)

If the research proposal is approved by the facility IRB, the facility CEO considers the facility IRB's recommendations, if any, and either approves or disapproves the research proposal for implementation at the facility.

(D)

If the research proposal is approved, the ORA is notified in writing of the CEO's and IRB's approval including copies of the IRB's meeting minutes concerning the review of the proposal, the proposal itself, and the CEO's and IRB's documentation of approval.

(2)

University IRB as the designated IRB. The research review and documentation process for a facility using a university IRB is generally as follows.

(A)

the research proposal is screened by the facility CEO and, if determined appropriate for implementation at the facility, forwarded to the university IRB for review.

(B)

The research proposal is reviewed by the university IRB.

(C)

The facility CEO is informed of the university IRB's approval or disapproval and recommendations, if any.

(D)

If the research proposal is approved by the university IRB, the facility CEO considers the university IRB's recommendations, if any, and either approves or disapproves the research proposal for implementation at the facility.

(E)

If the research proposal is approved, the ORA is notified in writing of the CEO's and IRB's approval including copies of the IRB's meeting minutes concerning the review of the proposal, the proposal itself, and the CEO's and IRB's documentation of approval.

(3)

Central Office IRB as the designated IRB. The research review and documentation process for a facility using the Central Office IRB is generally as follows.

(A)

The research proposal is screened by the facility CEO and, if determined appropriate for implementation at the facility, forwarded to the Central Office IRB.

(B)

The research proposal is reviewed by the Central Office IRB.

(C)

The facility CEO is informed of the Central Office IRB's approval or disapproval and recommendations, if any.

(D)

If the research proposal is approved by the Central Office IRB, the facility CEO considers the Central Office IRB's recommendations, if any, and either approves or disapproves the research proposal for implementation at the facility.

(E)

If the research proposal is approved, the ORA is notified in writing of the CEO's and IRB's approval including copies of the IRB's meeting minutes concerning the review of the proposal, the proposal itself, and the CEO's and IRB's documentation of approval.

(4)

Central Office IRB as a facility's designated IRB for research studies involving multiple facilities. When a facility's designated IRB or CEO requests that the Central Office IRB act as its designated IRB for a research study involving multiple facilities, pursuant to §414.755(c) of this title (relating to Designated Institutional Review Board (IRB)), then the research review and documentation process is generally as follows.

(A)

The research proposal is reviewed and approved by:

(i)

each facility CEO;

(ii)

the Central Office IRB; and

(iii)

the appropriate Central Office director(s), (i.e., director of state mental health facilities or director of state mental retardation facilities).

(B)

If the research proposal is approved by the facility CEOs, the Central Office IRB, and the appropriate Central Office director(s), the ORA is notified in writing of the approval, including copies of the IRB's meeting minutes concerning the review of the proposal, the proposal itself, and documentation of approval of the CEOs and the Central Office IRB.

(f)

In addition to approval by the designated IRB and facility CEO, review and approval by the TDMHMR medical director is required for any research proposal involving:

(1)

a placebo as the primary medication therapy;

(2)

medication or doses of medication as the primary medication therapy which are known to be ineffective for the targeted disorder or condition; or

(3)

an investigational medication or device.

(g)

The review process for proposed research may require additional steps as necessary, (e.g., in the event a proposal is initially rejected).

(h)

The facility CEO or designee is responsible for ensuring that all key researchers are qualified to perform any clinical duties assigned to them and are knowledgeable of TDMHMR's rules governing the care and protection of individuals as described in §414.763(4) of this title (relating to References).

§414.758.Informed Consent.

(a)

Designated IRB's review of proposed research.

(1)

The designated IRB's review must verify that procedures for obtaining and documenting informed consent meet the requirements in §46.116 and §46.117 of 45 CFR 46, referenced as Exhibit A in §414.762 of this title (relating to Exhibits). Additionally, informed consent must also address:

(A)

any extension of the subject's length of stay at the facility as a result of participation in the research;

(B)

if the research involves an investigational medication or device, the subject's ability to receive the medication or device after the research has concluded;

(C)

whether the research involves the use of a placebo and the likelihood of assignment to the placebo condition;

(D)

whether the research involves medication or doses of medication which are known to be ineffective for the targeted disorder or condition and the likelihood of assignment to such medication or doses of medication; and

(E)

any risk of deterioration in the subject's condition and the potential consequences for such deterioration (e.g., an extension in the length of stay, the use of interventions such as restraint, seclusion, or emergency medications).

(2)

For research protocols that present greater than minimal risk, the designated IRB's review must verify that the procedures for obtaining and documenting informed consent:

(A)

provide for a qualified professional, who is independent of the research study, to assess prospective human subjects for capacity to consent;

(B)

describe who will conduct the assessments; and

(C)

describe the nature of the assessment and justification if less formal procedures to assess capacity will be used.

(3)

If minors are the proposed human subjects, the designated IRB's review must verify that the requirements in §46.408 (concerning Requirements for Permission by Parents or Guardians and for Assent by Children) of 45 CFR 46 (Exhibit A) have been met.

(4)

The designated IRB's review must determine that there are adequate procedures to ensure that each prospective human subject understands the information provided before obtaining consent and if the subject cannot understand the information that there are provisions for obtaining informed consent from the subject's LAR. If consent is obtained from the subject's LAR then procedures must be in place to attempt, to the extent possible given the prospective subject's capacity, to obtain the subject's assent to participation.

(5)

The designated IRB's review must determine whether there are safeguards to minimize the possibility of coercion or undue influence. The research proposal may be approved only if the possible advantages of the subject's participation in the research do not impair the subject's ability to weigh the risks of the research against the value of those advantages. Possible advantages within the limited choice environment of a facility may include enhancement of general living conditions, medical care, quality of food, or amenities; opportunity for earnings; or change in commitment status.

(b)

Obtaining informed consent.

(1)

A prospective human subject's objection to enrollment in research or a human subject's objection to continued participation in a research protocol must be heeded in all circumstances, regardless of whether the subject or the subject's LAR has given consent. Objection may be conveyed verbally, in writing, behaviorally, or by other indications or means. This does not preclude a key researcher, with approval of LARs, if appropriate, and acting with a level of sensitivity that avoids the possibility or the appearance of coercion, from approaching individuals who previously objected to ascertain whether they have changed their minds or approaching individuals who have not given actual consent to ascertain whether they want to enroll in the research protocol.

(2)

Because informed consent is an ongoing process, each human subject's comprehension and capacity must be assessed and enhanced throughout the course of the research protocol.

§414.759.Human Subject Selection.

The designated IRB's review of proposed research shall ensure that the human subject selection process is equitable and that measures are taken to ensure the research sample is adequately representative of the population of interest. Subject selection procedures must offer equitable opportunity for access to participation in research and access to potential benefits of participation.

§414.760.Investigation of Allegations of Misconduct in Science.

(a)

All research undertaken at facilities shall be conducted with a fundamental commitment to high ethical standards regarding the conduct of scientific research.

(b)

Reports of alleged misconduct in science are made to the ORA, who shall ensure that:

(1)

each allegation is reviewed and investigated by an appropriate entity in accordance with 42 CFR 50, Subpart A, referenced as Exhibit C in §414.762 of this title (relating to Exhibits);

(2)

the investigating entity submits to the ORA information documenting the disposition of each allegation; and

(3)

the following are notified of confirmed incidents of misconduct in science:

(A)

the IRB that approved the research protocol; and

(B)

the agency funding the research.

§414.761.Responsibilities of the Office of Research Administration (ORA).

The ORA is responsible for:

(1)

approving the establishment or utilization of an IRB by a facility as the facility's designated IRB;

(2)

providing staff support to the Central Office IRB;

(3)

reviewing and developing TDMHMR rules and policies governing the conduct of research at facilities;

(4)

maintaining all documentation regarding a designated IRB's review of research for a facility;

(5)

receiving reports of misconduct in science, ensuring each allegation of misconduct in science is reviewed and investigated, and maintaining and reporting information regarding misconduct in science as required by the Office of Research Integrity in accordance with 42 CFR 50, Subpart A, referenced as Exhibit C in §414.762 of this title (relating to Exhibits); and

(6)

providing technical assistance and interpretation of policies, procedures, TDMHMR rules, and regulations concerning the conduct of research involving human subjects at facilities.

§414.762.Exhibits.

The following exhibits are referenced in this subchapter, copies of which are available by contacting TDMHMR, Office of Policy Development, P.O. Box 12668, Austin, TX 78711-2668:

(1)

Exhibit A - Title 45, Code of Federal Regulations, Part 46 (Protection of Human Subjects);

(2)

Exhibit B - "The Belmont Report: Ethical Principles and Guidelines for the Protection of Human Subjects of Research, Report of the National Commission for the Protection of Human Subjects of Biomedical and Behavioral Research" (April 18, 1979); and

(3)

Exhibit C - Title 42, Code of Federal Regulations, Part 50, Subpart A (Responsibility of PHS Awardee and Applicant Institutions for Dealing With and Reporting Possible Misconduct in Science).

§414.763.References.

The following statutes and TDMHMR rules are referenced in this subchapter:

(1)

Title 45, Code of Federal Regulations, Part 46 (Protection of Human Subjects);

(2)

Title 42, Code of Federal Regulations, Part 50, Subpart A (Responsibility of PHS Awardee and Applicant Institutions for Dealing With and Reporting Possible Misconduct in Science);

(3)

Texas Health and Safety Code, Chapter 574 and §533.035; and

(4)

TDMHMR rules governing the care and protection of individuals, which address:

(A)

rights and confidentiality of persons receiving services in TDMHMR facilities;

(B)

consent to treatment with psychoactive or psychotropic medication;

(C)

voluntary and involuntary interventions involving persons receiving services in TDMHMR facilities; and

(D)

abuse, neglect, and exploitation of persons receiving services in TDMHMR facilities.

§414.764.Distribution.

This subchapter is distributed to:

(1)

all members of the Texas Mental Health and Mental Retardation Board;

(2)

executive, management, and program staff of Central Office;

(3)

CEOs of all facilities;

(4)

advocacy organizations; and

(5)

upon request, to any interested person.

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 June 8, 2001.

TRD-200103212

Andrew Hardin

Chairman, Texas MHMR Board

Texas Department of Mental Health and Mental Retardation

Effective date: July 1, 2001

Proposal publication date: March 30, 2001

For further information, please call: (512) 206-5216


Chapter 417. AGENCY AND FACILITY RESPONSIBILITIES

Subchapter B. CONTRACTS MANAGEMENT FOR TDMHMR FACILITIES AND CENTRAL OFFICE

25 TAC §§417.51 - 417.65

The Texas Department of Mental Health and Mental Retardation (TDMHMR) adopts new §§417.51 - 417.65 of new Chapter 417, Subchapter B, concerning contracts management for TDMHMR facilities and Central Office. Sections 417.53 - 417.59, 417.61, and 417.64 are adopted with changes to the proposed text as published in the December 29, 2000, issue of the Texas Register (25 TexReg 12898-12904). Sections 417.51, 417.52, 417.60, 417.62, 417.63, and 417.65 are adopted without changes. The repeals of §§401.371 - 401.380 and §§401.387 - 401.390 of Chapter 401, Subchapter E, concerning contracts management, the repeals of §§407.51 - 407.58 of Chapter 407, Subchapter B, concerning construction bidding procedures, and the repeal of §417.201 of Chapter 417, Subchapter E, concerning TDMHMR Historically Underutilized Business Program, which the new sections would replace, are contemporaneously adopted in this issue of the Texas Register .

The new sections describe TDMHMR's policies for acquisition of all goods and services by TDMHMR facilities and Central Office with the exception of Medicaid provider contracts and leases or contracts for sale of real property. The main difference between the proposed new subchapter and the subchapters proposed for repeal is that the new subchapter would require compliance with procurement rules adopted by the Health and Human Services Commission, which ensures best value for the agency awarding the contract. Other differences are the new subchapter's application to construction contracts and the inclusion of protest and appeal procedures, monitoring requirements, and remedies and sanctions that TDMHMR may impose for a contractor's default.

Minor language modifications have been made throughout the subchapter to correct grammatical errors and to provide clarifying language. Language has been added to the definition of "consultant contract" to be consistent with state statute. The definition of "contractor" has been modified to be consistent with the definition of "contract." A definition of "consumer services contract" has been added to describe those contracts that are for the provision of services delivered to a consumer or consumers. Language in §417.54(f) has been modified to clarify that all procurement opportunities over $25,000 must be posted on the Texas Marketplace/Electronic State Business Daily. Language has been added to §417.55(f) which prohibits TDMHMR from contracting with a business entity that, pursuant to the Texas Family Code, §231.006, is ineligible to receive a contract.

The provision proposed as §417.56(b)(8) has been moved to §417.56(a) because it applies to all contracts. Language requiring conformity with the rules and regulations of the Texas Department of Information Resources and the Legislative Budget Board has been added to §417.57(d) because such rules and regulations are applicable to automated information systems contracts. A subsection has been added to §417.57 to clarify requirements for performance contracts that require a local authority to acquire a good through a subcontract or to subcontract with a business entity to develop or create intellectual property. Language has been added to §417.58(a) stating that before a contract may be extended or renewed the contractor must have satisfied all eligibility and compliance requirements of state law as of the date of extension or renewal. The word "contract" has been added to the title of §417.61, and the section has been modified to address monitoring requirements specific to performance contracts. The references in §417.64 have been modified to reflect the changes made to the subchapter upon adoption.

Written comment on the proposal was received from the Parent Association for the Retarded of Texas (PART), Austin, and the parent of a state school resident, Garland.

Regarding obtaining best value to TDMHMR in §417.54(a), two commenters stated that TDMHMR's top priority should be best value to the individuals it serves and their legally authorized representatives (LARs) and recommended adding language to specify such. TDMHMR responds that adding such language is unnecessary because the definition of "best value" requires the achievement of "health and human services procurement objectives as described in §391.21 of Title 1." TDMHMR notes that the objective in §391.21(4) is to "support the delivery of services and benefits that best meets the needs of clients and programs administered by health and human services agencies."

Regarding contracting with former and retired employees in §417.55(c), two commenters requested that the rule include the statutory requirements rather than the statutory cites. The commenters referred to TDMHMR's proposed rules governing contracts management for local authorities (Chapter 412, Subchapter B), which contains descriptive language relating to contracting with former employees and officers of a local authority. TDMHMR declines to include the specific statutory requirements contained in the referenced cites because the requirements are lengthy and subject to revision by the legislature every two years. TDMHMR notes that descriptive language was included in its proposed rules governing contracts management for local authorities because the requirement is not based in statute.

Regarding unrestricted access to contractors' facilities, records, and data for monitoring purposes in proposed §417.56(b)(8), two commenters suggested that language be added to include access to the individuals being served under the contract. The commenters stated that monitors needed "access to individuals to monitor more than just 'paperwork' concerning their individual programs and services." The commenters also requested that language be added to allow access to individuals without reasonable notice . Additionally, the commenters recommended adding language to state "that any violation of consumer's or LAR's rights will be reported to TDMHMR Hotline 800-252-8154 and LAR, if needed." TDMHMR responds that the rule's provision mirrors the language in the Texas Health and Safety Code, §534.061(c), as it applies to certain community services contracts. The absence of language specific to access to individuals as a contract provision does not mean that TDMHMR would not have access to the individuals served by the contractor. TDMHMR could not comply with the monitoring requirements contained in proposed §417.61(f)-(g) of this subchapter if it did not have access to individuals. Regarding access to individuals without reasonable notice , TDMHMR responds that permitting access to individuals without reasonable notice could result in violations of individuals' right to privacy. TDMHMR notes that the proposed provision has been moved to §417.56(a) because it applies to all contracts. Regarding adding language requiring the reporting of rights violations, TDMHMR responds that rules governing rights of individuals receiving services address allegations of rights violations. TDMHMR notes that §417.56(b)(7) requires contractors providing services to consumers to comply with relevant TDMHMR rules, which include those rules governing rights of individuals receiving services.

Regarding risk assessment factors in proposed §412.61(f)(2), two commenters recommended adding "Level of ICAP or level of ABL of the consumers." The commenters also requested that Level III monitoring be required for all consumer services and programs. TDMHMR declines to add the requirement because TDMHMR facilities do not generally contract for consumer services on the basis of consumers' functioning levels. Facilities contract for consumer services that facilities are unable to provide themselves, such as surgical or dental services. In the case of a facility's contract with a local general hospital, the facility may not even know which of its consumers would require the contractor's services. TDMHMR notes that proposed language doesn't preclude including as a risk assessment factor the functioning levels of consumers who may be served by the contract. Regarding requiring Level III monitoring for all contracts for consumer services and programs, TDMHMR declines to add the requirement because Level III monitoring would not be appropriate for all contracts for consumer services. Again, in the case of a facility's contract with a local general hospital, it's possible that in the first six months of the contract no consumer would receive services from the contracted hospital. Requiring Level III monitoring for such a contract would not be a wise use of resources; however, Level III monitoring may be appropriate in the case of a facility's contract with a local dentist who is new to the area. TDMHMR notes that monitoring requirements must allow for flexibility because of the wide variety of contracts that are governed by this subchapter.

Two commenters requested that the reference to §417.56(b)(1) made in proposed §417.61(g)(2) be changed to refer to §417.56(b)(1)-(11) instead. TDMHMR declines to change the reference because it properly references the provision in §417.56(b)(1) for a consumer services contract to have clearly defined performance expectations . All of the other paragraphs in §417.56(b) do not pertain to such performance expectations.

The new sections are adopted under the Texas Health and Safety Code, §532.015, which provides the Texas Board of Mental Health and Mental Retardation (board) with broad rulemaking authority; §533.016, which allows TDMHMR to adopt rules relating to certain procurements of goods and services; §533.034, which provides TDMHMR with the authority to contract for community-based services; §534.059(b), which requires TDMHMR's contract rules to provide for sanctions if TDMHMR intends to sanction a local mental health or mental retardation authority for failing to comply with its performance contract; §551.007(c), which requires TDMHMR to adopt rules relating to awarding contracts for the construction of buildings and improvements; and the 1999 Appropriations Act, Article II, Section 2, Rider 13, which states that no funds appropriated to a health and human service agency may be utilized for contracts for the purchase of program-related client services unless such contracts include clearly defined goals, outputs, and measurable outcomes which directly relate to program objectives, include clearly defined sanctions or penalties for non compliance with contract terms and conditions, and specify the accounting, reporting, and auditing requirements applicable to funds received under the contract.

§417.53.Definitions.

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

(1)

Best value--The optimum combination of economy and quality that is the result of fair, efficient, and practical procurement decision-making and that achieves health and human services procurement objectives as described in §391.21 of Title 1 (relating to Health and Human Services Procurement Objectives).

(2)

Business entity--A sole proprietorship, including an individual, partnership, firm, corporation, holding company, joint-stock company, receivership, trust, or any other entity recognized by law.

(3)

CC&PS--The Central Contracting and Procurement Support division at Central Office.

(4)

Central Office--TDMHMR's administrative offices in Austin.

(5)

Consultant contract--A contract to retain the services of a business entity that does not involve the traditional relationship of employer and employee to study an existing or proposed operation or project, or to provide advice with regard to the operation or project consistent with Texas Government Code, Chapter 2254, Subchapter B, to exclude:

(A)

practitioners of professional services (as defined in this section);

(B)

private legal counsel;

(C)

investment counselors;

(D)

actuaries; or

(E)

medical or dental services providers.

(6)

Consumer--A person with mental illness or mental retardation receiving services funded by TDMHMR.

(7)

Consumer services contract--A contract for the provision of services delivered to a consumer or consumers.

(8)

Contract--A written agreement, including a purchase order, between a facility or Central Office and a business entity that obligates the entity to provide goods or services in exchange for money or other valuable consideration.

(9)

Contract director--The TDMHMR employee who is responsible for contracts management as follows:

(A)

at a facility--the director of Contract and Materials Management section.

(B)

at Central Office--

(i)

the director of CC&PS or

(ii)

the director of the Maintenance and Construction section.

(10)

Contract management--Developing specifications or scope of work or contractor qualifications, evaluating responses, and procuring, negotiating, drafting, awarding, executing, monitoring, and enforcing a contract.

(11)

Contractor--A business entity that provides goods or services in exchange for money or other valuable consideration pursuant to a contract.

(12)

Facility--Any state hospital, state school, or state center operated by the Texas Department of Mental Health and Mental Retardation.

(13)

Higher authority--The TDMHMR employee to whom the contract director reports, as follows:

(A)

at a facility--the superintendent, director, or executive director.

(B)

at Central Office--

(i)

the deputy commissioner for finance and administration; or

(ii)

the director of the Support Services division.

(14)

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

(15)

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

(16)

Professional services--As specified in the Texas Government Code, §2254.002, those services:

(A)

within the scope of the practice, as defined by state law, of:

(i)

accounting;

(ii)

architecture;

(iii)

landscape architecture;

(iv)

land surveying;

(v)

medicine;

(vi)

optometry;

(vii)

professional engineering;

(viii)

real estate appraising; or

(ix)

professional nursing; or

(B)

provided in connection with the professional employment or practice of a person who is licensed or registered as:

(i)

a certified public accountant;

(ii)

an architect;

(iii)

a landscape architect;

(iv)

a land surveyor;

(v)

a physician, including a surgeon;

(vi)

an optometrist;

(vii)

a professional engineer;

(viii)

a state certified or state licensed real estate appraiser; or

(ix)

a registered nurse.

(17)

Respondent--A business entity that submits an oral, written, or electronic response to a solicitation. The term is intended to include "bidder," "offeror," "proposer," and other similar terminology to describe the business entity that responds to a solicitation.

(18)

Response--A respondent's oral, written, or electronic "bid," "offer," "proposal," "quote," "application," or other applicable expression of interest to a solicitation.

(19)

Solicitation--A written or electronic notification of TDMHMR's intent to purchase goods or services, such as a request for proposals (RFP) or an invitation for bids (IFB).

(20)

TDMHMR--The Texas Department of Mental Health and Mental Retardation.

(21)

TDMHMR Contracts Manual --A publication of TDMHMR's internal policies and procedures relating to contracting.

§417.54.Procurement.

(a)

With the exception of construction contracts, TDMHMR must acquire goods and services by a method approved by the Health and Human Services Commission (HHSC) that provides the best value to TDMHMR. Acquisition of goods and services must be in accordance with:

(1)

the Texas Government Code, §2155.144;

(2)

Health and Human Services Commission rules, 1 TAC, Part 15, Chapter 391, governing Purchase of Goods and Services by Health and Human Services Agencies; and

(3)

this subchapter.

(b)

Pursuant to §391.109(13) of Title 1 (relating to Exceptions to Competitive Procurement Methods), TDMHMR may waive competitive procurement requirements for purchases of less than $100,000 if there is a demand of such urgency for the goods or services that a delay in purchasing would cause operational or financial harm.

(c)

As required in §391.165(b) of Title 1 (relating to Streamlined Purchasing Standards), TDMHMR's threshold for streamlined purchases is $10,000.

(d)

TDMHMR must comply with the Uniform Grant Management Standards, promulgated by the Governor's Office of Budget and Planning, pursuant to the Texas Government Code, Chapter 783, and 1 TAC, Part 1, Chapter 5, Subchapter A, Division 4, when providing financial assistance to a unit of local government or when providing block grants to a business entity.

(e)

To increase purchases and contract awards to historically underutilized businesses, TDMHMR adopts by reference rules of the General Services Commission (GSC) contained in 1 TAC, Part 5, Chapter 111, §§111.11 - 111.27 (relating to Historically Underutilized Business Program).

(f)

Pursuant to the Texas Government Code, §2155.083, all procurement opportunities over $25,000 must be posted on the Texas Marketplace/Electronic State Business Daily.

(g)

TDMHMR may reject any or all responses or any part of a response. TDMHMR reserves the right to cancel a solicitation without award for any reason or for no reason.

(h)

Upon written request by an unsuccessful respondent, TDMHMR will provide an explanation of the reason(s) why the respondent's response was not selected for award.

§417.55.Accountability.

(a)

Conflicts of interests and standards of conduct for TDMHMR employees and officers.

(1)

Conflicts of interest. TDMHMR employees and officers may not have a conflict of interest in contracts management. An employee or officer has a conflict of interest when the employee, officer, or a person related within the second degree of consanguinity or affinity to the employee or officer, intends to have or has:

(A)

actual employment with a respondent or contractor;

(B)

paid consultation with a respondent or contractor;

(C)

membership on a respondent's or contractor's board of directors;

(D)

ownership of 10% or more of the voting stock of shares of a respondent or contractor;

(E)

ownership of 10% or more or $5,000 or more of the fair market value of a respondent or contractor; or

(F)

received funds from a respondent or contractor in excess of 10% of the employee's, officer's, or related person's gross income for the previous year.

(2)

Standards of conduct.

(A)

TDMHMR employees and officers who participate in contracts management may not:

(i)

accept or solicit any gift, favor, service, or benefit from a respondent or contractor that might reasonably tend to influence the officer or employee in the discharge of official duties relating to contract management, or that the officer or employee knows or should know is being offered with the intent to influence the officer's or employee's official duties; or

(ii)

intentionally or knowingly solicit, accept, or agree to accept any benefit for having exercised official powers or for having performed official duties in favor of another respondent or contractor.

(B)

TDMHMR employees who participate in contracts management shall comply with additional standards of ethical conduct contained in the TDMHMR Ethics Operating Instruction (417-16) and applicable state law.

(b)

Conflicts of interests and standards of conduct for a respondent and its officers and employees.

(1)

Conflict of interest. A respondent and its officers and employees may not have a conflict of interest in the solicitation for which the respondent submits a response. A person has a conflict of interest when that person is related within the second degree of consanguinity or affinity to a TDMHMR employee or officer participating in the contract management for that contract.

(2)

Standards of conduct.

(A)

A respondent may not attempt to induce any business entity to submit or not submit a response.

(B)

A respondent must arrive at its response independently and without consultation, communication, or agreement for the purposes of restricting competition.

(C)

A respondent and its officers and employees may not have a relationship with any person, at the time of submitting the response or during the contract term, that may interfere with fair competition.

(D)

A respondent and its officers and employees may not participate in the development of specific criteria for award of the contract, nor participate in the selection of the business entity to be awarded the contract.

(c)

When contracting with former and retired employees and officers, TDMHMR must ensure compliance with applicable state law, including the Texas Government Code, §572.054, §659.0115, and §2252.901.

(d)

Except for the contracts management of construction contracts and performance contracts, all contracts management must be conducted in accordance with the requirements of the TDMHMR Contracts Manual .

(e)

All contracts must contain standard terms and conditions as described in the TDMHMR Contracts Manual unless an exception is granted by CC&PS.

(f)

TDMHMR is prohibited from contracting with a business entity that:

(1)

is held in abeyance or barred from the award of a federal or state contract;

(2)

is not in good standing for state tax, pursuant to the Texas Business Corporation Act, Texas Civil Statutes, Article 2.45;

(3)

is not residing or located in Texas unless the business entity has a Texas sales tax permit or certifies that the entity does not sell taxable goods or services within Texas, pursuant to the Texas Government Code, §2155.004;

(4)

is on warrant hold status, pursuant to the Texas Government Code, §403.055; or

(5)

is ineligible to receive a contract, pursuant to the Texas Family Code, §231.006.

(g)

TDMHMR must ensure that its contractors comply with all contract provisions regardless of whether a contractor subcontracts a portion of the contract.

(h)

TDMHMR may make advance payments to a contractor provided the payments meet a public purpose, ensure adequate consideration, and are accompanied by sufficient controls to ensure accomplishment of the public purpose. With the exception of contracts paid on a capitated basis, at the end of each contract period the contractor must return to TDMHMR any state or federal funds received from or through TDMHMR that have not been expended or encumbered within the term of the contract.

(i)

TDMHMR may recoup improper payments when it is verified that a contractor has been overpaid because of improper billing or accounting practices or failure to comply with the contract terms. The determination of impropriety is based on federal, state, and local laws and rules; TDMHMR procedures; contract provisions; or statistical data on program use compiled from paid claims and other sources of data. TDMHMR will recoup payments for contracted services not received by TDMHMR.

(j)

TDMHMR shall ensure quality services are provided to consumers, including during the transition from one contractor to another.

(k)

All purchases of goods and services may be made only pursuant to a contract.

§417.56.Provisions for All Contracts.

(a)

Unless an exception is granted by CC&PS, all contracts governed by this subchapter must include the following standards and conditions:

(1)

the beginning and ending dates of the contract;

(2)

identification of the service(s) or good(s) to be purchased;

(3)

identification of all parties;

(4)

total allowable payment or, if the contract is for services provided solely on a referral basis or on a capitated basis, the rates of payment;

(5)

the method of payment;

(6)

documentation retention requirements;

(7)

the requirement that the contractor must comply with all applicable federal and state laws, rules, and regulations, including Title VI of the Civil Rights Act of 1964; Section 504 of the Rehabilitation Act of 1973; the Americans with Disabilities Act of 1990 (ADA); and the Age Discrimination in Employment Act of 1967;

(8)

sanctions and remedies TDMHMR may take in response to the contractor's default;

(9)

a statement that the contractor is not currently held in abeyance or barred from the award of a federal or state contract, and that the contractor will provide immediate written notification to TDMHMR if the contractor becomes held in abeyance or barred from the award of a federal or state contract during the term of the contract; and

(10)

that TDMHMR and its designees, including independent financial auditors, shall have, with reasonable notice, unrestricted access to all facilities, records, data, and other information under the control of the contractor as necessary to enable TDMHMR to audit, monitor, and review all financial and programmatic activities and services associated with the contract.

(b)

All consumer services contracts must include the standards and conditions that are described in subsection (a) of this section and provisions stating:

(1)

the clearly defined performance expectations which directly relate to the community service's objectives, including goals, outputs, and measurable outcomes, and that the contractor must provide services in accordance with such expectations;

(2)

that no consumer will be excluded from participation in, denied the benefits of, or unlawfully discriminated against, in any program or activity funded by the contract on the grounds of race, color, national origin, religion, sex, age, disability, or political affiliation in accordance with applicable law;

(3)

that all consumer-identifying information will be maintained by the contractor as confidential, in accordance with applicable law and Chapter 414, Subchapter A of this title (relating to Client-Identifying Information);

(4)

that the contractor, its licensed staff, and other appropriate staff (as identified in the contract) will be credentialed before services are delivered to consumers by such contractor and staff;

(5)

that any allegation of abuse, neglect, or exploitation of consumers under the contract will be reported in accordance with applicable law, TDMHMR rules, and Texas Department of Protective and Regulatory Services rules;

(6)

that AIDS/HIV workplace guidelines, similar to those adopted by TDMHMR and AIDS/HIV confidentiality guidelines and consistent with state and federal law, will be adopted and implemented by the contractor;

(7)

that the contractor will comply with relevant TDMHMR rules, certifications, accreditations, and licenses, as specified in the contract;

(8)

that any allegation involving the clinical practice of a physician, dentist, registered nurse, or licensed vocational nurse, be referred to the contractor's medical, dental, or nursing director (as appropriate to the discipline involved) for review for possible peer review and reporting to disciplinary boards; and

(9)

the accounting, reporting, and auditing requirements with which the contractor must comply.

(c)

All contracts for residential services must include the standards and conditions that are described in subsections (a) and (b) of this section and provisions stating:

(1)

that services will be provided in accordance with consumers' treatment plans; and

(2)

that the contractor must comply with Chapter 414, Subchapter K of this title (relating to Criminal History Clearances) regarding conducting criminal history clearances of its applicants, employees, and volunteers, and that if an applicant, employee, or volunteer of the contractor has a criminal history relevant to his or her employment as described in Chapter 414, Subchapter K of this title (relating to Criminal History Clearances), then the contractor will take appropriate action with respect to the applicant, employee, or volunteer, including terminating or removing the employee or volunteer from direct contact with consumers served by the contractor.

§417.57.Additional Requirements for Specific Contracts.

(a)

Consultant contracts. All consultant contracts must conform with the requirements of the Texas Government Code, Chapter 2254, Subchapter B.

(b)

Professional services contracts. All professional services contracts must conform with the requirements of the Texas Government Code, Chapter 2254, Subchapter A.

(c)

Grant contracts. All grant contracts must conform with the requirements of all terms and conditions of the grant and the Texas Health and Safety Code, §533.001(d). Block grant contracts must also conform with the requirements of:

(1)

the Texas Government Code, Chapter 2105; and

(2)

the Uniform Grant Management Standards, promulgated by the Governor's Office of Budget and Planning, pursuant to the Texas Government Code, Chapter 783, and 1 TAC, Part 1, Chapter 5, Subchapter A, Division 4.

(d)

Automated information systems (i.e., information services) contracts. Automated information systems contracts must conform with the requirements of the Texas Government Code, Chapters 2054 and 2157, and applicable rules and requirements of the Texas Department of Information Resources, the General Services Commission, and the Legislative Budget Board.

(e)

Construction contracts. All construction contracts must conform with the requirements of the Texas Health and Safety Code, §551.007, the Uniform General Conditions for Construction Contracts, promulgated by the General Services Commission, pursuant to the Texas Government Code, Chapter 2166, and TDMHMR's Supplementary General Conditions for Construction Contracts.

(f)

Interagency contracts. All interagency contracts must conform with the requirements of the Texas Government Code, Chapter 771.

(g)

Interlocal contracts. All interlocal contracts must conform with the requirements of the Texas Government Code, Chapter 791.

(h)

Employee education and training contracts. All employee education and training contracts must conform with the requirements of the Texas Government Code, Chapter 656, Subchapter C.

(i)

Performance contracts.

(1)

If a performance contract provision requires the local authority to acquire a good through a subcontract, then the performance contract provision must identify the local authority or TDMHMR as the owner of the good.

(2)

If a performance contract provision requires the local authority to subcontract with a business entity to develop or create intellectual property (e.g., computer software), then the performance contract provision must state the requirements to be included in the subcontract that relate to:

(A)

ownership of the intellectual property;

(B)

TDMHMR's and/or the local authority's right to use, modify, reproduce, or disseminate the intellectual property to others; and

(C)

indemnity of the local authority and TDMHMR should the subcontractor violate the intellectual property rights of a third party.

§417.58.Contract Extension or Renewal.

(a)

All contracts governed by this subchapter may be extended or renewed only if:

(1)

the solicitation or contract allows for extension or renewal;

(2)

funding is available for the extension or renewal;

(3)

extension or renewal is in the best interest of TDMHMR;

(4)

the contractor has demonstrated satisfactory performance; and

(5)

the contractor satisfied all eligibility and compliance requirements of state law as of the date of the extension or renewal.

(b)

The determination of whether to renew a block grant contract or reduce the funding of a block grant contract must include the consideration of factors described in the Texas Government Code, §2105.202(b).

§417.59.Award of Construction Contracts.

(a)

This section describes TDMHMR's procedures for awarding construction contracts, as required by the Texas Health and Safety Code, §551.007(c).

(b)

TDMHMR shall make a reasonable effort to give notice of its intent to award a construction contract by publishing an Invitation for Bids (IFB) notice twice in two newspapers of general circulation in the locality of the construction project. TDMHMR may send the IFB notice to plan rooms (i.e., a clearinghouse established by independent organizations in which private companies and government agencies may file plans and specifications for construction proposals). The IFB notice shall include:

(1)

a description of the construction project;

(2)

the project location;

(3)

the procedures for obtaining bidding documents (i.e., plans and specifications of the construction project and other related documentation); and

(4)

the place and time of the bid opening.

(c)

Each bid must be written on the form that is included with the bidding documents and submitted in a sealed envelope to the announced place on or before the bids are scheduled to be opened.

(d)

At the announced place and promptly at the announced time, a representative of TDMHMR's Maintenance and Construction Section shall open each bid envelope and read aloud all bid amounts contained in the bid. Any bid arriving later than the announced time will not be accepted, and will be returned unopened to the bidder. Bid openings are open to the public.

(e)

After all bids have been opened TDMHMR shall determine which, of all the responsive bids received, is the lowest and best bid. In determining the lowest and best bid and a bidder's ability to comply with the contract, TDMHMR may require a bidder to submit a qualifications form showing the bidder's capabilities.

§417.61.Contract Monitoring.

All contracts must be monitored for compliance.

(1)

Construction contracts. The monitoring activities for all construction contracts must include performing desk reviews of invoices and reports and conducting on-site reviews.

(2)

Certain professional services contracts. The monitoring activities for all professional services contracts for architects, engineers, and land surveyors must include periodic reviews of work product.

(3)

Interagency and interlocal contracts. The monitoring activities for all interagency and interlocal contracts must include performing desk reviews of invoices and reports; evaluating the contractor's performance upon completion of the contract; and, if appropriate, requiring prior approvals for expenditures.

(4)

Certain contracts for goods and non-consumer services. The monitoring activities for all contracts for goods and non-consumer services that do not exceed $25,000 must include performing desk reviews of invoices and reports.

(5)

Performance contracts.

(A)

To determine necessary financial monitoring activities:

(i)

staff must assess each local authority's financial risk through ratio analysis of the authority's liquidity, ongoing operations, and capital structure, which is based on annual and quarterly financial information submitted by the authority; and

(ii)

staff must conduct a desk review of each local authority's annual audit to determine audit quality and to identify findings and questioned costs. Staff must ensure that a local authority submits a corrective actin plan that addresses all findings and questioned costs.

(B)

To determine necessary performance monitoring activities staff must conduct a review of each local authority's performance reports and assess the authority's performance risk by analyzing data regarding at least the following information:

(i)

the local authority's ability to provide services to the required (or target) number of consumers;

(ii)

the local authority's performance outcomes (e.g., state hospital bed-day usage);

(iii)

allegations and confirmations of abuse, neglect, and exploitation at the local authority; and

(iv)

number and type of complaints about the local authority.

(C)

Financial and performance monitoring activities of performance contracts shall be in proportion to the risk assessed in accordance with subparagraphs (5)(A) and (5)(B) of this paragraph. Monitoring activities include:

(i)

regular or periodic communication between TDMHMR staff and local authority staff;

(ii)

regular or periodic reviews of detailed reports required to be submitted by the local authority;

(iii)

providing training or technical assistance; and

(iv)

conducting on-site reviews.

(6)

All other contracts. Contract monitoring requirements for all contracts not described in paragraphs (1)-(5) of this section are as follows.

(A)

Contract monitoring levels and examples of monitoring activities are as follows:

(i)

Level I - TDMHMR performs desk reviews of invoices and reports, and evaluates the contractor's performance upon completion of the contract.

(ii)

Level II - TDMHMR performs desk reviews of invoices and reports; requires prior approvals for services and/or expenditures; and evaluates the contractor's performance every six months or upon completion of the contract if the term is less than one year.

(iii)

Level III - TDMHMR performs desk reviews of invoices and reports; requires prior approvals for services and/or expenditures; conducts on-site reviews to ensure specific performance and service levels (as defined in the contract) are met; and evaluates the contractor's performance quarterly and upon completion of the contract.

(B)

Each contract must be assigned a monitoring level based on staff's risk assessment of the contract. Risk assessment factors must include at least the following:

(i)

licensing or regulatory oversight of the contractor;

(ii)

geographic dispersion;

(iii)

contract term;

(iv)

number of consumers to be served;

(v)

service mix and complexity of service or complexity of specifications;

(vi)

degree of competition;

(vii)

historical performance of contractor; and

(viii)

the contract amount.

(C)

TDMHMR shall monitor contracts at the level that corresponds with the assigned risk assessment.

(7)

Consumer services contracts. In addition to the monitoring requirements and activities described in paragraph (6) of this section, for consumer services contracts TDMHMR must evaluate:

(A)

the safety of the environment in which services are provided;

(B)

the contractor's compliance with the contract, including the clearly defined performance expectations (as referenced in §417.56 (b)(1) of this title (relating to Provisions for All Contracts)); and

(C)

satisfaction of consumers and family members with services provided.

§417.64.References.

The following laws and rules are referenced in this subchapter:

(1)

Texas Government Code, Chapters 656, Subchapter C; 783; 771; 791; 2054; 2105; 2157; 2166; and 2254, Subchapters A and B; §403.055; §411.115; §572.054; §659.0115; §2155.004; ; 2155.083; §2155.144; §2252.901; and §2260.051(c);

(2)

Texas Health and Safety Code, Chapter 250; §533.001(d); §533.007; §533.035(a); and §551.007;

(3)

Texas Civil Statutes, Article 2.45;

(4)

1 TAC, Part 1, Chapter 5, Subchapter A, Division 4;

(5)

1 TAC, Part 5, Chapter 111, §§111.11 - 111.27 (relating to Historically Underutilized Business Program);

(6)

1 TAC, Part 15, Chapter 391, governing Purchase of Goods and Services by Health and Human Services Agencies;

(7)

Chapter 417, Subchapter S of this title (relating to Negotiation and Mediation of Certain Contract Claims Against TDMHMR);

(8)

Chapter 414, Subchapter A of this title (relating to Client-Identifying Information);

(9)

Chapter 414, Subchapter K of this title (relating to Criminal History Clearances);

(10)

TDMHMR Operating Instruction for Ethics (417-16); and

(11)

Texas Family Code, §231.006.

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 June 8, 2001.

TRD-200103216

Andrew Hardin

Chairman, Texas MHMR Board

Texas Department of Mental Health and Mental Retardation

Effective date: July 1, 2001

Proposal publication date: December 29, 2000

For further information, please call: (512) 206-5216


Subchapter E. TDMHMR HISTORICALLY UNDERUTILIZED BUSINESS PROGRAM

25 TAC §417.201

The Texas Department of Mental Health and Mental Retardation (TDMHMR) adopts the repeal of §417.201 of Chapter 417, Subchapter E, concerning TDMHMR Historically Underutilized Business Program, without changes to the proposal as published in the March 2, 2001, issue of the Texas Register (26 TexReg 1825).

The section, which adopted by reference rules of the General Services Commission (GSC) contained in 1 TAC §§111.11-111.27 (relating to Historically Underutilized Business Certification Program), has been duplicated in 25 TAC §417.54(e) of rules governing contracts management for TDMHMR facilities and Central Office, which are contemporaneously adopted in this issue of the Texas Register . The repeal eliminates the duplicative provision.

No comment on the proposal was received.

This section is repealed under the Texas Health and Safety Code, §532.015, which provides the Texas Mental Health and Mental Retardation Board with broad rulemaking authority, and the Texas Government Code, §2161.003, which requires state agencies to adopt rules of the General Services Commission governing historically underutilized businesses.

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 June 8, 2001.

TRD-200103219

Andrew Hardin

Chairman, Texas MHMR Board

Texas Department of Mental Health and Mental Retardation

Effective date: July 1, 2001

Proposal publication date: March 2, 2001

For further information, please call: (512) 206-4516