TITLE 40.SOCIAL SERVICES AND ASSISTANCE

Part 1. TEXAS DEPARTMENT OF HUMAN SERVICES

Chapter 7. REFUGEE CASH ASSISTANCE PROGRAM

The Texas Department of Human Services (DHS) proposes amendments to §§7.201, 7.204, 7.211, 7.212, 7.301, 7.305, 7.306, 7.307, 7.401, 7.403, 7.405, 7.502, 7.601, 7.602, and 7.603 concerning AFDC ineligibility, social security numbers, marriage to a U.S. citizen, employment services, application and interview, income and resources, grant amounts and budgeting, financial management, food stamps, refugee medically needy program, family self-support services, reporting changes, sanctions for noncompliance with employment services requirements, fraud, recoupment, and appeal, and good cause; repeal of §7.304, §7.402, and §7.501 concerning income from voluntary resettlement agencies, sponsors and Medicaid/Early and Periodic Screening, Diagnosis and Treatment (EPSDT), and monthly reporting; and new sections §7.304, §7.402, and §7.404, concerning income from voluntary resettlement agencies, Medicaid/Texas Health Steps (THSteps), and sponsors and refugee medical assistance (RMA) program, in its Cash Assistance Program chapter. The purpose of the amendments, repeals, and new sections is to update obsolete language and adhere to federal regulations that were effective in April and June 2000. The updates allow easier access to basic services for the refugee population.

Eric M. Bost, commissioner, has determined that for the first five-year period the proposed sections will be in effect there will be no fiscal implications for state or local governments as a result of enforcing or administering the sections.

Mr. Bost also has determined that for each year of the first five years the sections are in effect the public benefit anticipated as a result of adoption of the proposed rules will be that households eligible for benefits from the Refugee Resettlement Programs of Refugee Cash Assistance (RCA) and Refugee Medical Assistance (RMA) are more likely to be eligible for assistance as a result of more flexible rules; the rules concern counting income, deductions, resources, and referrals for refugee children who are ineligible for Medicaid to Children's Health Insurance Program (CHIP). There will be no effect on small or micro businesses as a result of enforcing or administering the sections, because these sections do not apply to businesses but to refugees who are settling in a new country. There is no anticipated economic cost to persons who are required to comply with the proposed sections.

Questions about the content of this proposal may be directed to Melissa Saenz at (512) 438-4930 in DHS's Programs and Policy section. Written comments on the proposal may be submitted to Supervisor, Rules and Handbooks Unit-90, Texas Department of Human Services E-205, P.O. Box 149030, Austin, Texas 78714-9030, within 30 days of publication in the Texas Register .

Under §2007.003(b) of the Texas Government Code, the department has determined that Chapter 2007 of the Government Code does not apply to these rules. Accordingly, the department is not required to complete a takings impact assessment regarding these rules.

Subchapter B. ELIGIBILITY CRITERIA

40 TAC §§7.201, 7.204, 7.211, 7.212

The amendments are proposed under the Human Resources Code, Title 2, Chapter 31, which authorizes the department to administer financial assistance programs.

The amendments implement the Human Resources Code, §§31.001- 31.0325.

TANF [ AFDC ] Ineligibility.

A refugee must be ineligible for the Temporary Assistance for Needy Families Program (TANF) [ aid to families with dependent children (AFDC) ] before being tested for eligibility under RCA.

§7.204.Social Security Numbers.

Requirements for Social Security Numbers are the same as outlined in the TANF [ AFDC ] rules.

§7.211.Marriage to a United States Citizen.

If a refugee marries a U.S. citizen, only the refugee can be eligible for RCA. Children resulting from the marriage are citizens and are not eligible for RCA. DHS considers income of the refugee's spouse toward eligibility using stepparent policies and procedures outlined in the TANF [ AFDC ] rules.

§7.212.Employment Services.

All nonexempt refugees who are at least 16 years old and not older than 64 years must register for employment. DHS uses the same exemptions that it uses in the TANF [ AFDC ] program.

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

Filed with the Office of the Secretary of State, on March 9, 2001.

TRD-200101435

Paul Leche

General Counsel, Legal Services

Texas Department of Human Services

Earliest possible date of adoption: April 22, 2001

For further information, please call: (512) 438-3108


Subchapter C. ELIGIBILITY DETERMINATION

40 TAC §§7.301, 7.304 - 7.307

The new section and amendments are proposed under the Human Resources Code, Title 2, Chapter 31, which authorizes the department to administer financial assistance programs.

The new section and amendments implement the Human Resources Code, §§31.001-31.0325.

§7.301.Application and Interview.

An applicant must complete and sign an application form to apply for refugee cash assistance. The applicant must also have a face-to-face [ personal ] interview with a Texas Department of Human Services (DHS) advisor [ caseworker ].

§7.304.Income from Voluntary Resettlement Agencies and Sponsors.

Texas Department of Human Services (DHS) exempts the income and resources of the sponsor or Voluntary Resettlement Agency (VOLAG). DHS exempts VOLAG grants from income. Refugee Cash Assistance (RCA) applicants are not eligible if they are recipients in a match grant program.

§7.305.Income and Resources.

(a)

The TANF [ AFDC ] rules apply to RCA [ except: ] including an earned income disregard.

[ (1)

VOLAG grants are counted as unearned income toward eligibility.]

[ (2)

The $30 and 1/3 earned income disregard is not allowed.]

(b)

SSI payments, and overpayments caused by SSI payments, are treated in the same manner as outlined in the TANF [ AFDC ] rules.

§7.306.Grant Amounts and Budgeting.

The same grant amounts and budgeting procedures in TANF [ AFDC ] rules are used for RCA.

§7.307.[ Financial ] Management.

DHS determines whether household expenses can be met by income according to the same requirements as outlined in the TANF [ AFDC ] rules.

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

Filed with the Office of the Secretary of State, on March 9, 2001.

TRD-200101436

Paul Leche

General Counsel, Legal Services

Texas Department of Human Services

Earliest possible date of adoption: April 22, 2001

For further information, please call: (512) 438-3108


40 TAC §7.304

(Editor's note: The text of the following section proposed for repeal will not be published. The section may be examined in the offices of the Texas Department of Human Services or in the Texas Register office, Room 245, James Earl Rudder Building, 1019 Brazos Street, Austin.)

The repeal is proposed under the Human Resources Code, Title 2, Chapter 31, which authorizes the department to administer financial assistance programs.

The repeal implements the Human Resources Code, §§31.001- 31.0325.

§7.304.Income from Voluntary Resettlement Agencies and Sponsors

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

Filed with the Office of the Secretary of State, on March 9, 2001.

TRD-200101437

Paul Leche

General Counsel, Legal Services

Texas Department of Human Services

Earliest possible date of adoption: April 22, 2001

For further information, please call: (512) 438-3108


Subchapter D. ELIGIBILITY FOR OTHER PROGRAMS

40 TAC §§7.401 - 7.405

The new sections and amendments are proposed under the Human Resources Code, Title 2, Chapter 31, which authorizes the department to administer financial assistance programs.

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

§7.401.Food Stamps.

Refugees are eligible for food stamps the same as any other lawfully admitted alien. If all members of the household residing as a family unit receive either TANF [ AFDC ] or RCA, DHS considers the household a public assistance case. If the refugee group is residing with other persons who are not recipients of RCA or TANF [ AFDC ], DHS considers the household a non-public assistance case.

§7.402.Medicaid/Texas Health Steps (THSteps).

TANF, Medicaid, and THSteps rules apply to RCA, except that transitional Medicaid is denied if the eight-month limit is reached and eligibility for transitional coverage is not dependent on the receipt of RCA for a specific number of months out of the last six months.

§7.403.Refugee Medically Needy Program.

The Refugee Medically Needy Program is the same as outlined in the TANF [ AFDC ] Medically Needy Program rules except:

(1)

the refugee must be ineligible for TANF [ AFDC ] medical programs.

(2)

after being certified for the Refugee Medically Needy Program, the refugee continues to be eligible for Medical Programs (MP) without spend down regardless of new or increased earnings. [ the refugee must meet all RCA eligibility requirements except work registration. ]

§7.404.Refugee Medical Assistance (RMA) Program.

RMA is available to refugees who are ineligible for Medicaid, Medical Programs, or to refugees who choose to only apply for RMA.

(1)

RMA eligibility is based on income and resources as of the date of application.

(2)

RMA applicants whose income exceeds the Medically Needy Income Limit (MNIL) on the date of application are eligible if deducting incurred medical expenses puts the income under MNIL.

(3)

Income from a match grant program is exempt in determining RMA eligibility.

§7.405.[ Family ] Self-support Services.

Refugees are eligible for all [ family ] self-support services if they meet eligibility requirements . [ outlined in family self-support rules. ] Services, such as English as a Second Language or job placements, are offered by local Voluntary Resettlement Agencies (VOLAGs).

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

Filed with the Office of the Secretary of State, on March 9, 2001.

TRD-200101438

Paul Leche

General Counsel, Legal Services

Texas Department of Human Services

Earliest possible date of adoption: April 22, 2001

For further information, please call: (512) 438-3108


40 TAC §7.402

(Editor's note: The text of the following section proposed for repeal will not be published. The section may be examined in the offices of the Texas Department of Human Services or in the Texas Register office, Room 245, James Earl Rudder Building, 1019 Brazos Street, Austin.)

The repeal is proposed under the Human Resources Code, Title 2, Chapter 31, which authorizes the department to administer financial assistance programs.

The repeal implements the Human Resources Code, §§31.001- 31.0325.

§7.402.Medicaid/Early and Periodic Screening, Diagnosis, and Treatment (EPSDT).

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

Filed with the Office of the Secretary of State, on March 9, 2001.

TRD-200101439

Paul Leche

General Counsel, Legal Services

Texas Department of Human Services

Earliest possible date of adoption: April 22, 2001

For further information, please call: (512) 438-3108


Subchapter E. CLIENT REPORTING REQUIREMENTS

40 TAC §7.501

(Editor's note: The text of the following section proposed for repeal will not be published. The section may be examined in the offices of the Texas Department of Human Services or in the Texas Register office, Room 245, James Earl Rudder Building, 1019 Brazos Street, Austin.)

The repeal is proposed under the Human Resources Code, Title 2, Chapter 31, which authorizes the department to administer financial assistance programs.

The repeal implements the Human Resources Code, §§31.001- 31.0325.

§7.501.Monthly Reporting.

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

Filed with the Office of the Secretary of State, on March 9, 2001.

TRD-200101440

Paul Leche

General Counsel, Legal Services

Texas Department of Human Services

Earliest possible date of adoption: April 22, 2001

For further information, please call: (512) 438-3108


40 TAC §7.502

The amendment is proposed under the Human Resources Code, Title 2, Chapter 31, which authorizes the department to administer financial assistance programs.

The amendment implements the Human Resources Code, §§31.001- 31.0325.

§7.502.Reporting Changes.

RCA clients must report changes according to the same requirements as outlined in TANF [ AFDC ] rules.

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

Filed with the Office of the Secretary of State, on March 9, 2001.

TRD-200101441

Paul Leche

General Counsel, Legal Services

Texas Department of Human Services

Earliest possible date of adoption: April 22, 2001

For further information, please call: (512) 438-3108


Subchapter F. PENALTY PROVISIONS

40 TAC §§7.601 - 7.603

The amendments are proposed under the Human Resources Code, Title 2, Chapter 31, which authorizes the department to administer financial assistance programs.

The amendments implement the Human Resources Code, §§31.001- 31.0325.

§7.601.Sanctions for Noncompliance with Employment Services Requirements.

The same sanctions in TANF [ AFDC ] rules are used for RCA for refusal to comply with employment services requirements, including failure to appear for an interview, failure to apply for or accept employment, or failure to participate in training.

§7.602.Fraud, Recoupment, and Appeal.

TANF [ AFDC ] rules regarding fraud, referral, recoupment of overpayments, and the right to appeal apply to RCA.

§7.603.Good Cause.

If a refugee refuses to register for employment, participate in employment services, or voluntarily quits a job, he may remain eligible only if the good cause requirements in the TANF [ AFDC ] rules are met.

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

Filed with the Office of the Secretary of State, on March 9, 2001.

TRD-200101442

Paul Leche

General Counsel, Legal Services

Texas Department of Human Services

Earliest possible date of adoption: April 22, 2001

For further information, please call: (512) 438-3108


Chapter 19. NURSING FACILITY REQUIREMENTS FOR LICENSURE AND MEDICAID CERTIFICATION

The Texas Department of Human Services (DHS) proposes an amendment to §19.101, concerning definitions, and §19.802, concerning comprehensive care plans, in its Nursing Facility Requirements for Licensure and Medicaid Certification chapter. The purpose of the amendments is to allow providers the option of including a palliative plan of care in the comprehensive care plan at the request of residents of nursing facilities with terminal conditions or end stage diseases or other conditions. This part of the plan of care may be developed when curative care is no longer warranted.

Eric M. Bost, commissioner, has determined that for the first five- year period the sections are in effect there will be no fiscal implications for state or local government as a result of enforcing or administering the sections.

Mr. Bost also has determined that for each year of the first five years the sections are in effect the public benefit anticipated as a result of adoption of the proposed rule will emphasize that all facilities must meet end-of-life issues. The use of a palliative plan of care in the comprehensive care plan may be an option when curative care is no longer warranted or desired by the nursing facility resident, surrogate decision maker or the legal representative. There will be no adverse economic effect on large, small or micro businesses, because the amendment does not require additional staff or material goods to enforce. Providers currently complete plans of care. There is no anticipated economic cost to persons who are required to comply with the proposed sections.

Questions about the content of this proposal may be directed to Maxcine Tomlinson at (512) 438-3169 in DHS's Long Term Care Policy Division. Written comments on the proposal may be submitted to Supervisor, Rules and Handbooks Unit-068, Texas Department of Human Services E-205, P.O. Box 149030, Austin, Texas 78714-9030, within 30 days of publication in the Texas Register .

Subchapter B. DEFINITIONS

40 TAC §19.101

Under §2007.003(b) of the Texas Government Code, the department has determined that Chapter 2007 of the Government Code does not apply to these rules. Accordingly, the department is not required to complete a takings impact assessment regarding these rules.

The amendment is proposed under the Health and Safety Code, Chapter 242, which authorizes the department to license and regulate nursing facilities.

The amendment implements the Health and Safety Code, 242.001- 242.268.

§19.101.Definitions.

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

(1)-(93)

(No change.)

(94)

Palliative Plan of Care - appropriate medical and nursing care for residents with advanced and progressive diseases for whom the focus of care is controlling pain and symptoms while maintaining optimum quality of life.

(95)

[ (94) ] Patient care-related electrical appliance - An electrical appliance that is intended to be used for diagnostic, therapeutic, or monitoring purposes in a patient care area, as defined in Standard 99 of the National Fire Protection Association.

(96)

[ (95) ] Person - An individual, firm, partnership, corporation, association, joint stock company, limited partnership, limited liability company, or any other legal entity, including a legal successor of those entities.

(97)

[ (96) ] Person with a disclosable interest - A person with a disclosable interest is any person who owns at least a 5.0% interest in any corporation, partnership, or other business entity that is required to be licensed under Health and Safety Code, Chapter 242. A person with a disclosable interest does not include a bank, savings and loan, savings bank, trust company, building and loan association, credit union, individual loan and thrift company, investment banking firm, or insurance company, unless these entities participate in the management of the facility.

(98)

[ (97) ] Pharmacist - An individual, licensed by the Texas State Board of Pharmacy to practice pharmacy, who prepares and dispenses medications prescribed by a physician, dentist, or podiatrist.

(99)

[ (98) ] Physical restraint - See Restraints (physical).

(100)

[ (99) ] Physician - A doctor of medicine or osteopathy currently licensed by the Texas State Board of Medical Examiners.

(101)

[ (100) ] Physician assistant (PA) -

(A)

A graduate of a physician assistant training program that is accredited by the Committee on Allied Health Education and Accreditation of the Council on Medical Education of the American Medical Association, or

(B)

A person who has passed the examination given by the National Commission on Certification of Physician Assistants. According to federal requirements (42 CFR §491.2) a physician assistant is a person who meets the applicable state requirements governing the qualifications for assistant to primary care physicians, and who meets at least one of the following conditions:

(i)

is currently certified by the National Commission on Certification of Physician Assistants to assist primary care physicians; or

(ii)

has satisfactorily completed a program for preparing physician's assistants that:

(I)

was at least one academic year in length;

(II)

consisted of supervised clinical practice and at least four months (in the aggregate) of classroom instruction directed toward preparing students to deliver health care; and

(III)

was accredited by the American Medical Association's Committee on Allied Health Education and Accreditation; or

(C)

A person who has satisfactorily completed a formal educational program for preparing physician assistants who does not meet the requirements of paragraph (d)(2), 42 CFR §491.2, and has been assisting primary care physicians for a total of 12 months during the 18-month period immediately preceding July 14, 1978.

(102)

[ (101) ] Podiatrist - A practitioner whose profession encompasses the care and treatment of feet who is licensed by the Texas State Board of Podiatry Examiners.

(103)

[ (102) ] Poison - Any substance that federal or state regulations require the manufacturer to label as a poison and is to be used externally by the consumer from the original manufacturer's container. Drugs to be taken internally which contain the manufacturer's poison label, but are dispensed by a pharmacist only by or on the prescription order of a physician, are not considered a poison, unless regulations specifically require poison labeling by the pharmacist.

(104)

[ (103) ] Practitioner - A physician, podiatrist, or dentist, when relating to Pharmacy Services.

(105)

[ (104) ] Preadmission medical necessity determination - The determination of need for nursing facility care before the individual's admission into the nursing facility. This determination is valid until admission into a nursing facility or up to 30 days from the effective date.

(106)

[ (105) ] PRN (pro re nata) - As needed.

(107)

[ (106) ] Provider - The individual or legal business entity that is contractually responsible for providing Medicaid services under an agreement with DHS.

(108)

[ (107) ] Psychoactive drugs - Drugs prescribed to control mood, mental status, or behavior.

(109)

[ (108) ] Qualified surveyor - An employee of DHS who has completed state and federal training on the survey process and passed a federal standardized exam.

(110)

[ (109) ] Quality assessment and assurance committee - A group of health care professionals in a facility who develop and implement appropriate action to identify and rectify substandard care and deficient facility practice.

(111)

[ (110) ] Recipient - Any individual residing in a Medicaid certified facility or a Medicaid certified distinct part of a facility whose daily vendor rate is paid by Medicaid.

(112)

[ (111) ] Registered nurse (RN) - An individual currently licensed by the Board of Nurse Examiners for the State of Texas as a Registered Nurse in the State of Texas.

(113)

[ (112) ] Reimbursement methodology - The method by which DHS determines nursing facility per diem rates.

(114)

[ (113) ] Remodeling - The construction, removal, or relocation of walls and partitions, the construction of foundations, floors, or ceiling-roof assemblies, the expanding or altering of safety systems (including, but not limited to, sprinkler, fire alarm, and emergency systems) or the conversion of space in a facility to a different use.

(115)

[ (114) ] Renovation - The restoration to a former better state by cleaning, repairing, or rebuilding, including, but not limited to, routine maintenance, repairs, equipment replacement, painting.

(116)

[ (115) ] Representative payee - A person designated by the Social Security Administration to receive and disburse benefits, act in the best interest of the beneficiary, and ensure that benefits will be used according to the beneficiary's needs.

(117)

[ (116) ] Resident - Any individual residing in a nursing facility.

(118)

[ (117) ] Resident assessment instrument (RAI) - An assessment tool utilized to conduct comprehensive, accurate, standardized, and reproducible assessments of each resident's functional capacity as specified by the Secretary of the U.S. Department of Health and Human Services. At a minimum, this instrument must consist of the Minimum Data Set (MDS) core elements as specified by the Health Care Financing Administration (HCFA); utilization guidelines; and Resident Assessment Protocols (RAPS).

(119)

[ (118) ] Responsible party - An individual authorized by the resident to act for him as an official delegate or agent. Responsible party is usually a family member or relative, but may be a legal guardian or other individual. Authorization may be in writing or verbal.

(120)

[ (119) ] Restraints (chemical) - Psychoactive drugs administered for the purposes of discipline, or convenience, and not required to treat the resident's medical symptoms.

(121)

[ (120) ] Restraints (physical) - Any manual method, or physical or mechanical device, material or equipment attached, or adjacent to the resident's body, that the individual cannot remove easily which restricts freedom of movement or normal access to one's body.

(122)

[ (121) ] Secretary - Secretary of Health and Human Services.

(123)

[ (122) ] Services required on a regular basis - Services which are provided at fixed or recurring intervals and are needed so frequently that it would be impractical to provide the services in a home or family setting. Services required on a regular basis include continuous or periodic nursing observation, assessment, and intervention in all areas of resident care.

(124)

[ (123) ] SNF - A skilled nursing facility or distinct part of a facility that participates in the Medicare program. SNF requirements apply when a certified facility is billing Medicare for a resident's per diem rate.

(125)

[ (124) ] Social Security Administration - Federal agency for administration of social security benefits. Local social security administration offices take applications for Medicare, assist beneficiaries in filing claims, and provide information about the Medicare program.

(126)

[ (125) ] Social Worker - A qualified social worker is an individual who is licensed, or provisionally licensed, by the Texas State Board of Social Work Examiners as prescribed by Chapter 50 of the Human Resources Code and who has at least:

(A)

a bachelor's degree in social work, or

(B)

similar professional qualifications which include a minimum educational requirement of a bachelor's degree and one year experience met by employment providing social services in a health care setting.

(127)

[ (126) ] Standards - The minimum conditions, requirements, and criteria established in this chapter with which an institution must comply to be licensed under this chapter.

(128)

[ (127) ] State plan - A formal plan for the medical assistance program, submitted to HCFA, in which the State of Texas agrees to administer the program in accordance with the provisions of the State Plan, the requirements of Titles XVIII and XIX, and all applicable federal regulations and other official issuances of the United States Department of Health and Human Services.

(129)

[ (128) ] State survey agency - The Texas Department of Human Services is the agency, which through contractual agreement with the single state agency, is designated as the agency responsible for Title XIX survey and certification of nursing facilities and utilization review in the Title XIX nursing facilities.

(130)

[ (129) ] Supervising physician - A physician who assumes responsibility and legal liability for services rendered by a physician assistant (PA) and has been approved by the Texas State Board of Medical Examiners to supervise services rendered by specific Pas. A supervising physician may also be a physician who provides general supervision of a nurse practitioner providing services in a nursing facility.

(131)

[ (130) ] Supervision - General supervision, unless otherwise identified.

(132)

[ (131) ] Supervision (direct) - Authoritative procedural guidance by a qualified person for the accomplishment of a function or activity within his sphere of competence. If the person being supervised does not meet assistant-level qualifications specified in this chapter and in federal regulations, the supervisor must be on the premises and directly supervising.

(133)

[ (132) ] Supervision (general) - Authoritative procedural guidance by a qualified person for the accomplishment of a function or activity within his sphere of competence. The person being supervised must have access to the licensed and/or qualified person providing the supervision.

(134)

[ (133) ] Supervision (intermittent) - Authoritative procedural guidance by a qualified person for the accomplishment of a function or activity within his sphere of competence, with initial direction and periodic inspection of the actual act of accomplishing the function or activity. The person being supervised must have access to the licensed and/or qualified person providing the supervision.

(135)

[ (134) ] Texas Register - A publication of the Texas Register Publications Section of the Office of the Secretary of State which contains emergency, proposed, withdrawn, and adopted rules issued by Texas state agencies. The Texas Register was established by the Administrative Procedure and Texas Register Act of 1975.

(136)

[ (135) ] Therapeutic diet - A diet ordered by a physician as part of treatment for a disease or clinical condition, in order to eliminate, decrease, or increase certain substances in the diet or to provide food which has been altered to make it easier for the resident to eat.

(137)

[ (136) ] Therapy week - A seven-day period beginning the first day rehabilitation therapy or restorative nursing care is given. All subsequent therapy weeks for a particular individual will begin on that day of the week.

(138)

[ (137) ] Threatened violation - A situation which, unless immediate steps are taken to correct, may cause injury or harm to a resident's health and safety.

(139)

[ (138) ] TILE - Texas Index for Level of Effort; an index of 11 categories plus a default that consists of relative resource utilization groups. The index determines where a nursing facility client fits based upon service and care requirements. It determines the daily rate to be paid on behalf of the client.

(140)

[ (139) ] TILE 202 restorative nursing - Nursing care and practices, based on a plan of care developed by the restorative team, designed to maintain or improve on goals achieved during physical or occupational therapy. Examples of TILE 202 restorative nursing include training and skill practice in self-feeding, bed mobility, transfers, ambulation, dressing or grooming, and active range of motion.

(141)

[ (140) ] TILE error - Inaccuracies in a CARE form assessment of a Medicaid recipient which result in an incorrect TILE classification.

(142)

[ (141) ] Title II - Retirement Survivors' Disability Insurance of the Social Security Act.

(143)

[ (142) ] Title XVI - Supplemental Security Income (SSI) of the Social Security Act.

(144)

[ (143) ] Title XVIII - Medicare provisions of the Social Security Act.

(145)

[ (144) ] Title XIX - Medicaid provisions of the Social Security Act.

(146)

[ (145) ] Total health status - Includes functional status, medical care, nursing care, nutritional status, rehabilitation and restorative potential, activities potential, cognitive status, oral health status, psychosocial status, and sensory and physical impairments.

(147)

[ (146) ] TXMHMR - Texas Department of Mental Health and Mental Retardation.

(148)

[ (147) ] UAR - DHS's Utilization and Assessment Review Section.

(149)

[ (148) ] Uniform data set - See Resident Assessment Instrument (RAI).

(150)

[ (149) ] Universal precautions - The use of barrier and other precautions by long term care facility employees and/or contract agents to prevent the spread of blood-borne diseases.

(151)

[ (150) ] Utilization review committee - The group of health care professionals contracted by DHS to make individual determinations of medical necessity regarding nursing facility care. The Utilization Review Committee consists of physicians and registered nurses.

(152)

[ (151) ] Vendor payment - Payment made by DHS on a daily-rate basis for services delivered to recipients in Medicaid- certified nursing facilities. Vendor payment is based on the nursing facility's claim approval of the DHS-generated Nursing Facility Billing Statement to DHS. The Nursing Facility Billing Statement, subject to adjustments and corrections, is prepared from information submitted by the nursing facility which is currently on file in the computer system as of the billing date. Vendor payment is made at periodic intervals, but not less than once per month for services rendered during the previous billing cycle.

(153)

[ (152) ] Working day - Any 24-hour period, Monday through Friday, excluding state and federal holidays.

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

Filed with the Office of the Secretary of State, on March 6, 2001.

TRD-200101348

Paul Leche

General Counsel, Legal Services

Texas Department of Human Services

Earliest possible date of adoption: April 22, 2001

For further information, please call: (512) 438-3108


Subchapter I. RESIDENT ASSESSMENT

40 TAC §19.802

The amendment is proposed under the Health and Safety Code, Chapter 242, which authorizes the department to license and regulate nursing facilities.

The amendment implements the Health and Safety Code, 242.001- 242.268.

§19.802.Comprehensive Care Plans.

(a)-(b)

(No change.)

(c)

A comprehensive care plan may include a palliative plan of care. This plan may be developed only at the request of the resident, surrogate decision maker or legal representative for residents with terminal conditions, end stage diseases or other conditions for which curative medical interventions are not appropriate. The plan of care must have goals that focus on maintaining a safe, comfortable and supportive environment in providing care to a resident at the end of life.

(d)

[ (c) ] The services provided or arranged by the facility must:

(1)

meet professional standards of quality; and

(2)

be provided by qualified persons in accordance with each resident's written plan of care.

(e)

[ (d) ] The care plan must be made available to all direct care staff.

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

Filed with the Office of the Secretary of State, on March 6, 2001.

TRD-200101350

Paul Leche

General Counsel, Legal Services

Texas Department of Human Services

Earliest possible date of adoption: April 22, 2001

For further information, please call: (512) 438-3108


Chapter 68. BUSINESS SERVICES

Subchapter E. FLEET MANAGEMENT

40 TAC §68.501

The Texas Department of Human Services (DHS) proposes new §68.501 concerning restrictions on assignment of agency vehicles in new Chapter 68, Business Services. The purpose of the section is to comply with Government Code §2171.1045, which requires that agencies adopt rules relating to the assignment and use of agency vehicles.

Eric M. Bost, commissioner, has determined that for the first five- year period the section is in effect there will be no fiscal implications for state or local government as a result of enforcing or administering the section.

Mr. Bost also has determined that for each year of the first five years the section is in effect the public benefit anticipated as a result of adoption of the proposed rule will be the establishment of an agency motor pool that will increase vehicle use and improve the efficiency of vehicle fleet operations. There will be no adverse economic effect on small or micro businesses, because the rules only affect internal policies and procedures that are designed to increase vehicle use. There is no anticipated economic cost to persons who are required to comply with the proposed section.

Questions about the content of this proposal may be directed to Keith Romel at (512) 438-5140 in DHS's Business Services division. Written comments on the proposal may be submitted to Supervisor, Rules and Handbooks Unit-66, Texas Department of Human Services E-205, P.O. Box 149030, Austin, Texas 78714-9030, within 30 days of publication in the Texas Register .

Under §2007.003(b) of the Texas Government Code, the department has determined that Chapter 2007 of the Government Code does not apply to these rules. Accordingly, the department is not required to complete a takings impact assessment regarding these rules.

The new section is proposed under the Human Resources Code, Title 2, Chapter 22, which authorizes the department to administer public assistance programs; and Texas Government Code §2171.1045, which directs state agencies to adopt rules consistent with the management plan adopted under §2171.104, relating to the assignment and use of the agency's vehicles.

The new section implements the Human Resources Code, §§22.001- 22.030 and the Government Code, §2171.1045.

§68.501.Restrictions on Assignment of Vehicles.

(a)

the agency motor pool may consist of agency vehicles permanently assigned to state office or each regional field office.

(b)

DHS state office monitors vehicle usage and makes recommendations on the consolidation of the agency's fleet as follows:

(1)

each agency vehicle must be assigned to the agency motor pool and be available for checkout, and

(2)

a vehicle may be assigned to an individual employee on a regular or everyday basis only if the agency makes a written finding that the assignment is critical to the needs and mission of the agency.

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

Filed with the Office of the Secretary of State, on March 7, 2001.

TRD-200101385

Paul Leche

General Counsel, Legal Services

Texas Department of Human Services

Earliest possible date of adoption: April 22, 2001

For further information, please call: (512) 438-3108


Part 4. TEXAS COMMISSION FOR THE BLIND

Chapter 167. BUSINESS ENTERPRISES PROGRAM

The Texas Commission for the Blind proposes the repeal of §§167.1-167.3 pertaining to the Business Enterprises Program and simultaneously proposes new §§167.1-167.16 pertaining to the operation of Business Enterprises of Texas. The repeal is necessary to allow the agency to adopt revised rules for the administration of the program. The new rules are the result of the agency's review of TAC, Chapter 167, under the requirements of Texas Government Code, §2001.039; and the General Appropriations Act, Article IX, §9-10.13, 76th Legislature, 1999, and the culmination of a two-year study of the program. The recent change in the program's name from Business Enterprises Program to Business Enterprises of Texas is reflected in the new chapter title.

The proposed new rules implement Texas Human Resources Code, Chapter 94, pertaining to vending facilities operated by blind persons, and United States Code, Title 20, Chapter 6A, pertaining to vending facilities for blind in federal buildings. Section 167.2 defines terms used in these rules. Section 167.3 contains several general program policies, including the relationship of Business Enterprises of Texas (BET) to the agency's Vocational Rehabilitation Program and the fact that managing a BET facility constitutes full-time employment under the Rehabilitation Act of 1973, as amended. The section also contains rules on management subcontracting and the effect of a manager's outside employment on eligibility to manage a BET facility. Section 167.4 contains rules on BET administration, including the roles of the executive director and BET director. The section contains the conditions under which consultants may be used in facilities. Section 167.5 contains the agency's rules for entering the program for training. Section 167.6 sets forth the conditions for licensing and the nature of the license itself. Section 167.7 contains the agency's procedures for making initial assignment and requirements for applying for career advancement assignments. This section also contains rules for interviewing and selecting from the managers applying for a career advancement assignment and the process for investigating reports of improper contact during the selection process. Section 167.8 contains the agency's rules for providing facilities with fixtures, furnishings, and equipment and rules governing maintenance, repairs, and replacement. The section also contains the requirements for obtaining advances for stocks and supplies when a manager chooses to apply for another facility after the manager's initial assignment. Section 167.9 contains the set-aside fee schedule a manager is required to pay based on the manager's net proceeds. The section also sets forth allowable adjustments to the monthly set-aside fee. Section 167.10 contains the basic duties and responsibilities of managers. Section 167.11 contains the basic responsibilities of the Commission. Section 167.12 creates and sets forth rules related to the BET Elected Committee of Managers. Section 167.13 contains the conditions for nondisciplinary termination of a BET license. Section 167.14 sets forth rules for disciplinary actions, including types of disciplinary actions and notices of disciplinary procedures. Section 167.15 contains the procedures whereby managers who are dissatisfied with a Commission action arising from the operation of BET may appeal the action. Included are any timeframes in which the manager and commission must take action. Section 167.16 contains the agency's policies on establishing and closing facilities.

Alvin Miller, Chief Financial Officer, has determined that for the first five years the rules are in effect there will be no fiscal implications for state or local government as a result of the repeal or enforcing or administering the new rules. There will be no economic cost to small or micro-businesses as a result of enforcing these sections. The cost effect on individuals who are required to comply with the new rules will depend on a licensed manager's monthly facility net proceeds. Set-aside fees have been revised in these new rules. Based on the income of all managers last year, 83% of the affected licensed managers will pay less per month, 17% will pay more. There may be some additional cost to some managers in the form of interest payments if the manager finances the facility's initial inventory on a career advancement assignment with a bank loan. Because business plans are required when a manager applies for a career advancement facility, managers may incur an expense if the manager chooses to have someone who charges for the service assist with the plan.

Michael Hooks, BET Director, has determined that the public benefit anticipated as a result of the repeal and new rules as proposed will be the adoption of clearer rules for operating BET facilities in Texas pursuant to the Randolph-Sheppard Act.

Comments on the proposal may be submitted to Jean Crecelius, Policy and Rules Coordinator, Texas Commission for the Blind, 4800 North Lamar, Austin, Texas 78756, or by e-mail to jean.crecelius@tcb.state.tx.us, or by fax (512) 377-2682. Comments must be received by the Commission no later than 30 days from the date this proposal is published in the Texas Register .

40 TAC §§167.1-167.3

(Editor's note: The text of the following sections proposed for repeal will not be published. The sections may be examined in the offices of the Texas Commission for the Blind or in the Texas Register office, Room 245, James Earl Rudder Building, 1019 Brazos Street, Austin.)

The repeals are proposed under Human Resources Code §94.012, which authorizes the Commission to promulgate rules for the administration of the program and §94.016, which authorizes the commission to administer the program in accordance with the provisions of the Randolph-Sheppard Act (20 U.S.C. Section 107 et seq.).

The proposal also affects Human Resources Code §91.052, Vocational Rehabilitation Program for the Blind.

§167.1.Conformity to Federal Guidelines.

§167.2.Public Access to Internal Procedural Documents.

§167.3.Business Enterprises Manual.

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

Filed with the Office of the Secretary of State, on March 8, 2001.

TRD-200101415

Terrell I. Murphy

Executive Director

Texas Commission for the Blind

Earliest possible date of adoption: April 22, 2001

For further information, please call: (512) 377-0611


Chapter 167. BUSINESS ENTERPRISES OF TEXAS

40 TAC §§167.1 - 167.16

The new rules are proposed under Human Resources Code §94.012, which authorizes the Commission to promulgate rules for the administration of the program and §94.016, which authorizes the commission to administer the program in accordance with the provisions of the Randolph-Sheppard Act (20 U.S.C. Section 107 et seq.).

The proposal also affects Human Resources Code §91.052, Vocational Rehabilitation Program for the Blind.

§167.1.Legal Authority.

(a)

Program name. The Commission shall carry out its responsibilities for licensing blind persons to operate vending facilities on state, federal, and other property through its state program entitled Business Enterprises of Texas, formerly known as Business Enterprises Program. Any references still in existence to Business Enterprises Program shall mean Business Enterprises of Texas.

(b)

Federal authority. The Commission operates Business Enterprises of Texas under the authority of the Randolph-Sheppard Act (20 USC. §107 et seq.) and implementing regulations (34 CFR §395.1 et seq.).

(c)

State authority. The Commission operates Business Enterprises of Texas under the authority of Texas Human Resources Code, Title 5, Chapter 94, and is authorized in §94.016 to administer BET in accordance with the provisions of the Randolph-Sheppard Act.

(d)

Statutory References. Unless expressly provided otherwise, a reference to any portion of a statute, rule, or regulation applies to all reenactments, revisions, or amendments of the statute, rule, or regulation.

§167.2.Definitions.

The following words and terms, when used in these rules, shall have the following meanings, unless the context clearly indicates otherwise. Unless expressly provided otherwise, words in the present or past tense include the future tense, and the singular includes the plural and the plural includes the singular. The masculine gender includes the feminine and neuter genders.

(1)

Act--Randolph-Sheppard Act (20 USC, Ch. 6A, §107 et seq.).

(2)

Application--The "BET Facility Assignment Application" form used by managers to apply for a facility.

(3)

BET--Business Enterprises of Texas.

(4)

BET Assignment--The document that sets forth the terms and conditions for management of a BET facility by the individual named as manager.

(5)

BET director--The administrator of Business Enterprises of Texas; or, if there be no person in that capacity, the person designated by the executive director to perform that function; or if there be none, the executive director.

(6)

BET facility--Automatic vending machines, cafeterias, snack bars, cart service, shelters, counters and such other appropriate auxiliary equipment which may be operated by BET managers and which is necessary for the sale of newspapers, periodicals, confections, tobacco products, foods, beverages and other articles or services dispensed automatically or manually and prepared on or off the premises in accordance with all applicable health laws, and including the vending or exchange of tickets for any lottery authorized by state law.

(7)

BET manual--"Business Enterprises of Texas Manual of Operations," which contains these rules adopted by the Commission's board and accordant instructions and procedures by which BET facilities are to be managed.

(8)

Blind (person who is)--A person whose central visual acuity does not exceed 20/200 in the better eye with correcting lenses or whose visual acuity, if better than 20/200, is accompanied by a limit to the field of vision in the better eye to such a degree that its widest diameter subtends an angle of no greater than 20 degrees.

(9)

Board--The Commission's governing body appointed pursuant to state law.

(10)

Business day--A day on which state agencies are officially required to be open during their normal business hours.

(11)

Commission--Texas Commission for the Blind.

(12)

Commission staff - Employees of the Commission who have been delegated the authority by the executive director or his designee to take an action contained in these policies.

(13)

ECM--Elected Committee of Managers.

(14)

Executive Director--The Commission's chief executive officer.

(15)

Expendables--Items that require a low capital outlay and have a short life expectancy, such as, by way of illustration and not limitation, smallwares, thermometers, china, glass, silverware, sugar and napkin dispensers, salt and pepper shakers, serving trays, mops, brooms, knives, spreaders, serving spoons, and ladles.

(16)

Individual with a significant disability--An individual who has a severe physical or mental impairment that seriously limits one or more functional capacities (such as mobility or communication).

(17)

Initial assignment--The first BET facility to which a manager is assigned after being licensed.

(18)

Level 1 facility--A BET facility which in the prior year generated a net income after set-aside fees equal to or less than 170% of the median net income after set-aside fees of all BET managers for the prior year or, in the case of a new BET facility, is reasonably expected to generate said income.

(19)

Level 2 facility--A BET facility which in the prior year generated a net income after set-aside fees greater than 170% of the median net income after set-aside fees of all BET managers for the prior year or, in the case of a new BET facility, is reasonably expected to generate said income.

(20)

Manager--A person licensed by the Commission to manage a BET facility in Texas.

(21)

Net sales--All sales, excluding sales tax.

(22)

Other income--Money received by a manager from sources other than direct sales, such as vending commissions or subsidies.

(23)

State property--Lands and buildings owned, leased, or otherwise controlled by the State of Texas; and equipment and facilities purchased and/or owned by the State of Texas.

(24)

Vending machine--For the purpose of assigning vending machine income, a coin or currency operated machine that dispenses articles or services, except those machines operated by the United States Postal Service for the sale of postage stamps or other postal products and services. Machines providing services of a recreational nature and telephones shall not be considered to be vending machines.

§167.3.General Policies.

(a)

Objectives. The objectives of Business Enterprises of Texas shall be:

(1)

to provide employment opportunities for qualified individuals; and

(2)

to administer a continuing process of career development for managers which encourages them to move into the private sector of business.

(b)

Relationship of BET to Vocational Rehabilitation Program. The intent of Business Enterprises of Texas, as authorized in the Randolph-Sheppard Act and the Texas Human Resources Code, is to stimulate and enlarge the economic opportunities for the citizens of Texas who are blind or visually impaired by establishing a vending facility program in which such persons who are in need of employment are given preference in the operation of vending facilities selected and installed by the Commission. The Commission is required to administer BET in accordance with the Commission's vocational rehabilitation objectives. Therefore, a consumer receiving services from the Vocational Rehabilitation Program whose employment goal is to be a licensed manager shall have reached an employment outcome as that term is used in the Rehabilitation Act of 1973 when the consumer is licensed by the Commission and is managing a BET facility. The licensed manager shall not be considered an employee of the Commission, state, or federal government.

(c)

Full-time employment. Managing a BET facility shall constitute full-time employment. Full-time shall mean being actively engaged in the management of a BET facility at least 40 hours a week unless a different period of time is approved subsequent to the effective date of this section or a different period of time has been approved by the Commission prior to the effective date of this subsection. Management is the personal supervision of the day-to-day operation of the assigned BET facility by the assigned manager.

(d)

Management subcontracting. The management of a BET facility shall not be subcontracted except for temporary periods of time approved by the Commission or in those circumstances in which the Commission deems that subcontracting the operation of some parts of the facility are in the best interest of BET. In all events, subcontracting shall require the prior written consent of the Commission. This subsection shall not affect subcontracts in existence on the effective date of this subsection.

(e)

Effect of outside employment. Managers earning adjusted gross incomes (as defined in the Internal Revenue Code and as reported to the IRS for the most recent year) from outside employment equal to or greater than their enterprise income or 170% of the prior year's median income of all BET managers, whichever is greater, are considered no longer in need of employment through BET and shall not be eligible to manage a BET facility. Personal income tax returns for this purpose shall be provided to the Commission upon request.

(f)

Availability of funds. The administration of BET and the implementation of these policies are contingent upon the availability of funds for the purposes stated herein.

(g)

BET manual. All BET policies adopted by the board shall be included in the BET manual. The BET director shall ensure that each manager is provided with a copy of the manual and any revisions thereto. The manager shall be responsible for reading the manual and acknowledging in writing that he or she has read and understands its contents. The BET director shall insure that the BET manual contains procedures whereby managers may obtain assistance in understanding BET policies and procedures.

(h)

Accessibility of BET materials. All information produced by and provided to managers by the Commission shall be in an accessible format. When possible, materials will be sent in the format requested by the manager.

(i)

Nondiscrimination.

(1)

VR and BET participants. The Commission shall not discriminate against any blind person who is participating in or who may wish to participate in Business Enterprises of Texas on the basis of sex, age, religion, color, creed, national origin, political affiliation, or physical or mental impairment, insofar as such impairment does not preclude satisfactory performance.

(2)

BET facilities. Managers shall operate BET facilities without discriminating against any present or prospective supplier, customer, employee, or other individual who might come into contact with the facility on the basis of sex, age, religion, color, creed, national origin, political affiliation or physical or mental impairment.

(j)

Emergencies. The BET director is authorized to expend funds on an emergency basis for the purpose of protecting the state's investment in a BET facility not to exceed $15,000 in a fiscal year or $2,500 per facility incident.

§167.4.BET Administration.

(a)

Executive director. The executive director (subject to Subchapter A, Chapter 531, Government Code, pertaining to the authority of the Commissioner of the Health and Human Services Commission over certain agency functions) is authorized to:

(1)

establish personnel policies for Commission personnel employed in BET;

(2)

establish BET plans, which at a minimum shall provide for all services, assistance, training, supervision, and planning necessary for the implementation and administration of BET; and

(3)

delegate authority to implement these rules to the BET director.

(b)

BET director. In addition to the responsibilities delegated to the BET director by the executive director, the BET director shall be responsible for:

(1)

implementing BET personnel policies and development plans; and

(2)

disseminating the information developed by the executive director related to BET plans and policies to all managers.

(c)

Consultants.

(1)

If the Commission determines a consultant is necessary to assist a manager or protect the interests of the agency, the Commission shall contract with a consultant and may pay for the consultant out of the facility revenues.

(2)

If the Commission determines a consultant is necessary to assist a manager who is currently in a facility, the BET director shall consult with the manager prior to contracting with a consultant. The final authority, however, for contracting with a consultant shall rest with the Commission.

(3)

All consultant contracts entered into by the Commission for the provision of support and mentoring services to the manager shall not exceed three years in duration, provided, however, that the contract may be extended for additional periods not to exceed one year each. No contract shall be extended until the manager has been consulted. The final discretion to extend the contract shall rest with the Commission.

(4)

If the Commission determines it necessary to contract with a consultant to protect the interests of the Commission, the Commission shall enter into a separate agreement for that purpose with such terms and conditions as the Commission may deem appropriate.

§167.5.Training of Potential Managers.

(a)

Prerequisites for training. To be eligible for BET training, consumers desiring a career with BET as a vocational rehabilitation program employment outcome must meet the following criteria:

(1)

The person must be at least 18 years of age.

(2)

The person must be a United States citizen residing in Texas (a birth certificate or other applicable documentation must be submitted with the application).

(3)

The person must be blind.

(4)

The person must have demonstrated proficiency in math, writing, and reading comprehension.

(5)

The person must have adequate general health and stamina required to perform the basic functions of a manager.

(6)

The person must have adequate mobility skills to safely operate a BET facility.

(7)

The person must not have a history of substance abuse for the previous 12 months.

(b)

Application process. Each eligible consumer interested in applying for BET training may submit an application and shall receive an interview and be informed of the results of the application.

§167.6.BET Licenses.

(a)

Natural persons. Licenses to manage a BET facility shall be issued only to natural persons.

(b)

Prerequisites. No person may be licensed until such person has satisfactorily completed all required BET training and otherwise continues to satisfy the criteria for entry into BET.

(c)

Issuance. A license issued by the Commission shall bear the name of the manager, date of issue, and contain such other information as may be deemed to be appropriate from time to time by the executive director. The license shall be signed by the executive director on behalf of the Commission and State of Texas.

(d)

Display. The license or a copy of the license shall be displayed prominently in the enterprise to which the manager is assigned.

(e)

Property right. A license shall not create any property right in the manager to whom it is issued and shall be deemed only to inform the public and other interested parties that the manager has successfully completed BET training and is qualified and authorized to operate a BET facility.

(f)

Transferability. A license is not transferable.

(g)

Term. A license issued by the Commission shall be valid for an indefinite period, subject, however, to termination, revocation, or suspension pursuant to conditions specified in these policies pertaining to nondisciplinary termination of license and termination for disciplinary reasons.

§167.7.Initial and Career Advancement Assignment Procedures.

(a)

Purpose. This section defines the process for the initial and career advancement assignments of managers. It is the goal of the process to provide a fair, unbiased, and impartial process for selection, transfer, and promotion.

(b)

Initial assignment. Upon successful completion of BET training, the initial assignment for a newly-licensed manager shall be made by the BET director. The initial assignment shall be for a minimum of 12 months. The BET director shall make the assignment based on the following:

(1)

availability of a Level 1 facility;

(2)

recommendations from the BET training specialist and the ECM chairperson;

(3)

manager's training records;

(4)

manager's geographical concerns; and

(5)

any other circumstances on a case-by-case basis.

(c)

Career advancement assignments.

(1)

Availability. All career advancement opportunities are dependent upon the availability of BET facilities.

(2)

Notice. As BET facilities become available, written notice of such availability shall be given to all managers.

(3)

On-site visits. An advertised facility shall be available for onsite visits upon reasonable notice by applicants.

(4)

Eligibility. To apply for an available facility, a manager must meet the following requirements:

(A)

The manager must have successfully managed a BET facility for a minimum of one year.

(B)

The manager must have been current on all accounts payable for the preceding 12 months prior to the date of the facility announcement.

(C)

The manager must not be on probation under the section of these rules relating to disciplinary actions.

(D)

The manager must meet eligibility requirements of the facility's host organization.

(E)

The manager must not have submitted two or more insufficient fund checks to the Commission within the 12 months prior to the date of the facility announcement.

(F)

The manager must not have submitted two or more late reports within the 12 months prior to the date of the facility announcement.

(G)

If unassigned, the manager must have fulfilled all resignation requirements in the manager's last facility or be displaced and eligible to apply for a facility.

(H)

The manager must have an inventory of merchandise and expendables in the manager's current facility as the Commission has determined sufficient for its satisfactory operation.

(I)

The manager must satisfy the Commission that he can acquire the merchandise and expendables required for the available facility.

(J)

A manager who has been placed on probation is not eligible for promotion and transfer for 30 days following release from probation.

(K)

A manager who has been placed on probation twice within a twelve-month period is not eligible for promotion or transfer for six months following release from probation.

(L)

A manager who has been placed on probation three times within a two-year period is not eligible for promotion or transfer for one year following release from probation.

(5)

BET application deadline. A manager may apply for an available facility by submitting an application not later than the 12th business day (exclusive of date of mailing) after the date the facility notice was mailed. The submission date shall be:

(A)

the date the application is delivered to the Commission; or

(B)

3 days after deposit of the application in the United States mail, whichever is earlier; or

(C)

the date the application is delivered to an overnight courier.

(6)

BET application contents. A copy of the current form of the application shall be included in the BET manual. The substance of the application form shall not be modified except by action of the Commission's board. Modifications shall be provided to all managers prior to their effective date.

(7)

Preliminary review of applications. Commission staff and the ECM representative in each geographic area in which the applying managers are currently located shall review all applications from their areas and shall verify the applying manager's eligibility and the accuracy of the application. In the event an ECM representative is an applicant for an available BET facility, the ECM chairperson shall appoint another ECM member for the review. The reviewing Commission staff and ECM representative shall provide assistance upon request to enable the applicant to correctly complete the application. Completed applications shall then be forwarded to the BET director who shall provide copies to the ECM and Commission staff in the area in which the available facility is located.

(8)

Level 1 assignments. Assignments to Level 1 facilities shall be made by the BET director after reviewing the recommendations and assessments of all applicants conducted by the ECM representative and Commission staff for the regions in which the available facilities are located.

(9)

Level 2 assignments. For Level 2 assignments, the following additional procedures shall apply:

(A)

Business plan. An applicant must submit a business plan to the BET director no later than the 20th business day after the postmark date on the notice of facility availability. Upon request by an applicant, the Commission staff in the area in which the available facility is located shall provide a standard packet of information to the applicant containing information necessary to prepare the business plan. The Commission staff shall deliver the packet to the applicant no later than the 3rd business day after receiving a request.

(B)

Establishment of pool of impartial and qualified individuals. The Commission shall establish and maintain a pool of qualified individuals. The pool members shall be individuals who:

(i)

have no personal, professional, or financial interest that would be in conflict with the objectivity of the individual;

(ii)

neither have nor have had any association with the Commission or Business Enterprises of Texas prior to being considered as a pool member; and

(iii)

have at least 5 years experience in business at a managerial or executive level, including experience in budget preparation and administration, personnel supervision or management; and administration of business plans or equivalents to business plans in the sector of business in which the person has experience.

(C)

Evaluation of business plans. All business plans shall be reviewed and evaluated by an individual chosen at random from the pool of impartial and qualified individuals. Business plans shall be evaluated and scored based on a scoring system of 100 points. The evaluations and scores shall then be forwarded to the BET director for consideration by the selection panel in the selection process.

(D)

Selection panel. A selection panel consisting of one representative from the ECM, one Commission staff member, and one individual from the pool of impartial and qualified individuals shall be chosen by means of a computer program that selects randomly from a database. The selection of each panel member shall be from among all persons within their respective categories, except that the impartial member may not be the individual who evaluated the business plans. If the member of a category of panel members who is selected is unable or refuses to serve, the BET director shall use the same method of random selection until three members are chosen.

(E)

Presiding officer. The impartial panel member shall serve as the presiding officer of the selection panel.

(F)

Interview notices. Applicants shall be notified by first class U. S. Mail of the date, place and time of the selection panel interview no fewer than 10 business days prior to the convening of the selection panel.

(G)

Selection panel materials. Completed applications and business plans shall be provided to the selection panel members no fewer than 5 business days prior to the date the selection panel is to convene.

(H)

Duties of selection panel. The selection panel shall review the documents provided and interview the applicants. The selection panel shall then rank the top three applicants. The selections shall be transmitted to the BET director, who shall in turn notify the highest ranked applicant of the decision of the selection panel. The available facility shall be offered to the applicants in order of ranking.

(I)

Reports of improper contact. Members of the selection panel must report improper contacts to the BET director or the executive director. Improper contact is defined as any communication with a member of the selection panel for the purpose of influencing or manipulating, directly or indirectly, the selection of an applicant for the facility being considered for assignment. Nothing contained in this section, however, shall be deemed to prohibit any manager from endorsing or supporting any candidate for selection by furnishing a letter or other document to that effect to be included with the applying manager's application. At the conclusion of the selection panel's responsibilities, each panel member shall be required to sign a statement certifying whether the member had, or had knowledge of, an improper contact during the selection proceedings.

(J)

Process for investigating reports of improper contact. When improper contact is reported, each applicant for the facility under consideration shall be informed as to the improper contact. The information provided to the applicants shall describe the nature of the improper contact but shall not divulge the identities of any persons allegedly participating in such improper contact. Each applicant may make objection to continuation by the existing panel and request that a new panel be formed to select the manager for the available facility. The executive director, upon the request of any applicant for the facility or upon the request of the BET director, shall determine if the improper contact is such as to require that the panel be disbanded and a new panel formed. In making that decision, the executive director shall consider all relevant factors, including the objections, if any, of the applicants, to determine if the improper contact is likely to influence the decision of the selection panel. If the executive director determines that the improper contact is likely to influence the selection process, the executive director shall direct that the panel be disbanded and that a new panel be formed to consider the selection for the facility being considered. The executive director shall inform all applicants of his decision to continue the selection process with the existing panel or to form a new panel and shall state the basis of the decision. The actions prescribed as a consequence of improper contact set forth in policies pertaining to disciplinary actions shall apply whether or not any improper contact results in the panel being disbanded.

(K)

Exceptions to assignment and selection procedures. Unusual circumstances may require exceptions to assignment and selection procedures. Exceptions to these procedures shall be made only if the circumstance is not covered by assignment procedures and failure to react to the circumstance would be detrimental to BET or a manager. Notwithstanding anything in this section, no exceptional procedure shall result in the removal of a manager from a facility except for reasons contained in policies pertaining to disciplinary actions. Assignment and selection decisions that are exceptions to these procedures shall be made by the BET director after discussing relevant information with the ECM chairperson and receiving the chairperson's recommendation. Should a decision contrary to the ECM chairperson's recommendation be made, the BET director shall provide a written explanation of the decision to the ECM chairperson.

§167.8.Fixtures, Furnishings, and Equipment; Initial Inventory and Expendables.

(a)

Survey. When a BET facility becomes available for assignment to a manager, Commission staff shall conduct a survey of the site to determine the fixtures, furnishings, and equipment required to allow the facility to operate in accordance with projections by Commission staff as to the potential for the facility. When such facility is an existing one, the survey shall consider the need for replacement or repair of fixtures, furnishings, and equipment.

(b)

Facility plan. Commission staff shall prepare a detailed schedule of the requirements for fixtures, furnishings, and equipment for the facility, including specifications for each item required and a site plan of the facility depicting the placement of the fixtures, furnishings, and equipment within the facility.

(c)

Acquisition, placement, and installation. When satisfied as to the fixtures, furnishings, and equipment required for the facility, Commission staff shall cause the necessary fixtures, furnishings, and equipment to be purchased or otherwise acquired and placed and/or installed in or upon the facility in accordance with the approved plans.

(d)

Ownership.

(1)

All state fixtures, furnishings, and equipment within the facility shall at all times remain the property of the State of Texas. Their use by the facility manager shall be as a licensee only.

(2)

The Commission shall have the sole authority to direct, control, transfer, and dispose of such fixtures, furnishings, and equipment as it determines to be appropriate and necessary.

(e)

Modifications. No modifications or alterations shall be made to state-owned fixtures, furnishings, and equipment by any person, firm, or entity without the express prior written approval of the Commission, which shall be granted or not granted solely at the discretion of the Commission.

(f)

Upkeep and maintenance.

(1)

The manager assigned to a facility shall be provided with manuals, instructions, and guides in an accessible format to state-owned fixtures, furnishings, and equipment within the facility.

(2)

It shall be the responsibility of the manager to keep Commission fixtures, furnishings, and equipment in a clean and sanitary condition and to perform maintenance required or recommended by the manufacturers or vendors of the fixtures, furnishings, and equipment.

(3)

The manager shall keep and maintain accurate records of all maintenance performed on Commission fixtures, furnishings, and equipment. Any failure or refusal of the manager to perform the maintenance referred to herein shall result in the manager being required to reimburse the Commission for any cost or expense resulting from such failure or refusal.

(g)

Repairs and replacements.

(1)

The Commission shall be responsible for all necessary repairs of any of the state-owned fixtures, furnishings, and equipment located within the facility except for repairs necessitated by the negligence, abuse, or misuse of the fixtures, furnishings, or equipment by the manager or the manager's employees. The cost of repairs necessitated by negligence, abuse, or misuse by the manager or the manager's employees shall be the sole responsibility of the manager. Failure to make such repairs shall result in disciplinary action pursuant to these rules.

(2)

The BET director shall establish and implement procedures for effecting the timely necessary repairs and for the payment for such services. There shall be included in these procedures specific procedures for initiating repairs by the manager and a list of approved vendors for repairs, which shall be provided to each manager as published and as revised from time to time.

(3)

Under no circumstances is a manager authorized to have the cost of repairs charged to the Commission or have repairs made by anyone other than approved vendors unless specific authority to do so has been given to the manager in writing by Commission staff. Each vendor included in the approved list of vendors for repairs shall be informed by Commission staff of this prohibition and of the procedures for authorized repairs and for payment for services.

(4)

Commission staff on their own initiative or upon request by a manager shall determine the need for replacement of any fixtures, furnishings, or equipment. If such need is determined, Commission staff shall report the need to the BET director. If authorized by the BET director, replacement fixtures, furnishings, or equipment shall be acquired from available BET funds.

(5)

Fixtures, furnishings, and equipment shall not include expendables. Each manager of a facility shall be responsible for replacing all such items with items of comparable quality as those being replaced and originally furnished by the Commission.

(h)

Initial inventory of merchandise and expendables for newly-licensed managers. The Commission shall furnish without charge the initial inventory of merchandise and expendables for the first facility of a newly-licensed manager. The initial inventory of merchandise and expendables shall be sufficient, as projected by the Commission, to provide the manager with merchandise and expendables for 30 days.

(i)

Subsequent inventory of merchandise and expendables.

(1)

The manager shall maintain an inventory of merchandise and expendables in the same quantity as the initial merchandise and expendables transferred to the manager upon assignment to the facility. If the Commission determines that changed circumstances require a different amount of merchandise and expendables, the Commission shall communicate in writing to the manager the new amount of merchandise and expendables. If a new amount of merchandise and expendables is necessary to provide for the satisfactory operation of the facility, that new amount of inventory must be maintained by the manager.

(2)

Managers assigned to any facility other than their initial assignment in Texas shall acquire the merchandise and expendables as determined by the Commission to be sufficient to satisfactorily operate the facility.

(j)

Purchases on credit. Managers must notify the Commission in advance of any purchase of merchandise and expendables on credit.

(k)

Obtaining an advance from the Commission for initial inventory. Managers may apply to the Commission for an advance to purchase an initial inventory of merchandise and expendables. The granting of an advance is discretionary and may be granted only under the following conditions:

(1)

The manager must satisfy the Commission in writing as to why the advance is needed and why the funds are not available from other sources.

(2)

Before an advance is granted by the Commission pursuant to this section, the manager must submit evidence satisfactory to the Commission that the financing has been sought from at least two commercial financial institutions, such as, by way of example, the Small Business Administration, banks, savings and loans, credit unions, or like institutions.

(3)

The manager shall satisfy the Commission as to the manager's ability to repay the advance within 12 months.

(4)

Managers with outstanding balances on advances are not eligible for transfer to another assignment.

(l)

Transfer of fixtures, furnishings, equipment, and inventory of merchandise and expendable Items. When a manager is assigned to an existing BET facility, the responsibility for the fixtures, furnishings, and equipment of that facility, as well as its inventory of merchandise and expendable items, shall be transferred to the incoming manager. The BET director shall develop and implement procedures for effecting such transfers to assure that both the incoming and outgoing managers have full knowledge of the nature and condition of the items being transferred.

§167.9.Set-Aside Fees.

(a)

Purpose. It is the policy of the Texas Commission for the Blind to require from managers the payment of a set-aside fee based on the monthly net proceeds of their BET facilities. The purpose of requiring such payment is:

(1)

to promote to the greatest possible extent the concept of a manager being an independent business person;

(2)

to cause BET to be to the greatest extent possible, with due regard to other considerations, self-supporting;

(3)

to encourage and stimulate growth in BET; and

(4)

to provide incentives for the increased employment opportunities for blind Texans.

(b)

Use of funds. To the extent permitted or required by applicable laws, rules, and regulations, the funds collected as set-aside fees shall be used by the Commission for the following purposes:

(1)

maintenance and replacement of equipment for use in BET;

(2)

purchase of new equipment for use in BET;

(3)

management services;

(4)

assuring a fair minimum return to managers; and

(5)

the establishment and maintenance of retirement or pension funds, health insurance contributions, and provision for paid sick leave and vacation time.

(c)

Method of computing net proceeds.

(1)

Net proceeds is the amount remaining from the sale of merchandise of a BET facility, all vending machine income, and other income accruing to the manager from the facility after deducting the reasonable and necessary cost of such sale, but excluding set-aside charges required to be paid by the manager. Net sales are all sales, excluding sales tax.

(2)

Costs of sales that may be deducted from net sales to calculate net proceeds in a reporting period shall be limited to:

(A)

cost of merchandise sold;

(B)

wages paid to employees;

(C)

payroll taxes; and

(D)

the following reasonable miscellaneous operating expenses that are directly related to the operation of the BET facility:

(i)

discretionary expenses, not to exceed 1.5% of the monthly net sales, or $150, whichever is greater;

(ii)

rent and utilities authorized in the permit or contract;

(iii)

business taxes, licenses, and permits;

(iv)

telecommunication services;

(v)

liability, property damage, and fire insurance;

(vi)

Worker's Compensation insurance;

(vii)

employee group hospitalization/health insurance;

(viii)

employee retirement contributions (the plans must be IRS-approved and not for the manager);

(ix)

janitorial services, supplies, and equipment;

(x)

bookkeeping and accounting services;

(xi)

trash removal and disposal services;

(xii)

service contracts on file with the Commission;

(xiii)

legal fees directly related to the operation of the facility (legal fees directly or indirectly related to actions against governmental entities are not deductible);

(xiv)

medical expenses directly related to accidents that occur to employees at the facility, not to exceed $500;

(xv)

purchase of personally owned or leased equipment that has been approved by the Commission for placement in the facility;

(xvi)

repairs and maintenance to personally owned or leased equipment that has been approved by the Commission to be placed within the facility;

(xvii)

consumable office supplies; and

(xviii)

exterminator/pest control services.

(3)

All reports by managers shall be accompanied by such supporting documents as may be required by the Commission.

(d)

Method of computing monthly set-aside fee. The amount of set-aside fee owed shall be according to the following schedule:

(1)

On net proceeds of $1 to $999.99, the amount shall be 2% of the manager's net proceeds.

(2)

On net proceeds of $1,000 to $1,499.99, the amount shall be 3% of the manager's net proceeds.

(3)

On net proceeds of $1,500 to $1,999.99, the amount shall be 4% of the manager's net proceeds.

(4)

On net proceeds of $2,000 to $5,999.99, the amount shall be $80 plus 18% of the manager's net proceeds over $2,000.

(5)

On net proceeds of $6,000 or more, the amount shall be $800 plus 24% of the manager's net proceeds over $6,000.

(e)

Payment of set-aside fee. The set-aside fee shall be submitted with the manager's monthly statement of facility operations. The BET director shall develop and implement procedures for the preparation and submittal of monthly statements.

(f)

Adjustments to monthly set-aside fee.

(1)

When a "single point of contact" is required under the provisions of §167.16 of this title, pertaining to establishing and closing facilities, the monthly set-aside payment for the contact manager shall be reduced by 3% for each manager represented.

(2)

To encourage managers to hire individuals with significant disabilities, managers shall deduct from their set-aside payment up to 50% of the wages or salary paid to a blind or otherwise significantly disabled employee during any month up to an amount not to exceed 5% of the set-aside payment amount for that month. A manager may make this deduction for any number of employees who are individuals who are blind or otherwise significantly disabled so long as that deduction from the set-aside payment amount does not exceed 25% of the total set-aside payment due, or $1,250.00, whichever is less. The manager shall provide such documentation to the Commission as required by the Commission to verify such employment and the right to the reduction in set-aside fees. For the purposes of this paragraph, the term "blind or otherwise significantly disabled employee" does not include:

(A)

the manager,

(B)

a blind or otherwise significantly disabled person within the first degree of consanguinity or affinity to the manager, or

(C)

a blind or otherwise significantly disabled person claimed as a dependent, either in whole or in part, on the manager's United States income tax return.

(3)

Any adjustments provided for in paragraphs (1) and (2) of this subsection shall not apply for any month in which the set-aside fee is not paid in a timely manner.

(4)

To encourage managers to promptly file their monthly statement of facility operations and pay their monthly set-aside fee, managers shall have their monthly set-aside fee increased by 5% if either their monthly statement or the monthly set-aside fee is not timely received by the Commission in accordance with BET procedures for their preparation and submittal. None of the terms of this rule shall ever be construed to create a contract to pay, as consideration for the use, forbearance, or detention of money, interest at a rate in excess of the maximum rate permitted by applicable laws. This adjustment to the set-aside fee is not imposed as interest, but if for any reason whatever this adjustment is considered to be interest, the Commission shall refund to the manager any and all amounts as shall be necessary to cause the "interest" paid to produce a rate equal to the maximum rate permitted by applicable laws.

§167.10.Duties and Responsibilities of Managers.

(a)

Managers must comply with applicable law, these rules, written agreements with hosts, the BET Assignment, the requirements of the BET manual, and any proper and authorized instruction by Commission staff.

(b)

Managers must comply with procedures prescribed by the Comptroller of Public Accounts for the payment of sales taxes and provide evidence to the Commission of timely sales tax remittances.

(c)

Managers must not jeopardize the Commission's right, title, and interest in the BET facility, its equipment, or the lease or agreement with the property managers.

(d)

Managers must maintain a professional appearance and act in a professional manner while managing a BET facility.

(e)

Managers must open a commercial business account in which they maintain sufficient funds to operate the BET facility.

(f)

Managers must purchase and maintain in force liability and product liability insurance and shall name the licensee and the State of Texas as named insured. The host shall be added as an insured when required.

(g)

Managers must hire sufficient employees to insure the efficient operation of the BET facility and to provide adequate service to customers.

(h)

Managers must be actively engaged at least 40 hours a week in the management of the BET facility to which they are assigned unless a different period of time is approved by the Commission subsequent to the effective date of this section or a different period of time was approved by the Commission prior to the effective date of this section.

(i)

Managers must take appropriate and timely actions to correct deficiencies noted on BET facility audits or reviews.

(j)

Managers must provide satisfactory service to the BET facility host and customers.

(k)

Except in the case of an emergency, managers must provide prior notice to the Commission of leave due to illness, vacation, or for personal reasons.

§167.11.Responsibilities of the Commission.

(a)

Management services. The Commission shall provide each manager with regular and systematic management services, which shall, at a minimum, include:

(1)

explanations of the Commission's rules, procedures, policies, and standards;

(2)

recommendations on ways in which the facility may be made more profitable for the manager;

(3)

techniques to develop positive relationships with customers, assistants and management of the host organization;

(4)

possible solutions to problems recognized by the manager or brought to the manager's attention by Commission staff or the facility host;

(5)

continuing education and training courses and opportunities for managers designed to enhance skills, productivity and profitability; and

(6)

information about laws, rules, and regulations affecting the operation of a BET facility.

(b)

Training. The Commission shall conduct a special training seminar each year for all managers to inform them of new BET developments and to provide instruction on new, relevant topics to enhance upward mobility.

(c)

Facility operating conditions. The Commission shall establish the conditions for operation of a BET facility. The operating conditions shall include, among other things, pricing requirements, hours of operation, and menu items or product lines. The Commission may revise the operating conditions from time to time as market conditions warrant. The final authority and ultimate responsibility for determining the prices to be charged for products sold through BET facilities shall rest with the Commission

(d)

BET financial data. Upon request, the Commission shall provide managers with access to BET financial data. Also upon request, the Commission staff shall provide assistance to the manager in interpreting the data.

(e)

Inventory payment. When a manager leaves the manager's initial assignment, the Commission shall pay the manager or the manager's heirs the value of the usable stock and supplies above the amount provided to the manager upon initial assignment.

§167.12.BET Elected Committee of Managers.

(a)

Authority. The Elected Committee of Managers (ECM) is created and shall operate pursuant to Section 107b-1 of the Act.

(b)

Relationship to Commission. The ECM shall be presumed as the sole representative of all managers to the Commission in matters contained in the Act and implementing regulations requiring the active participation of the ECM. Active participation means an ongoing process of good faith negotiations between the Elected Committee of Managers and the Commission in the development of BET policies and procedures prior to implementation. The Commission shall have the ultimate responsibility for the administration and operation of all aspects of BET and has final authority in decisions affecting BET.

(c)

Relationship to managers.

(1)

It shall be the sole responsibility of the managers who elect the members of the ECM to insure that the persons elected represent all managers.

(2)

The ECM shall, in addition to all other matters set forth in these rules or by law or regulation affecting the administration of BET, act as advocates for the managers and trainees and shall strive to improve, expand, and make profitable and successful BET to the greatest possible extent for the mutual benefit of the Commission and of the consumers who participate in the program.

(d)

BET policies, rules, and procedures. In all matters related to policies and rules, the Commission's board has the ultimate responsibility and the ultimate authority for their establishment and adoption. The ECM shall actively participate in the consideration of significant BET decisions and in deliberations of rules and policies affecting BET. Whenever a committee of the Commission's board is to consider policies and/or rules related to BET for recommendation to the full board, the board's presiding officer shall request that the chairman of the ECM participate in the committee's discussions and deliberations as an ex officio member. When, in the discretion of the board's presiding officer, one or more additional members of the ECM would enhance the decision-making process by participating in the committee's actions, the ECM chairman shall be requested to appoint one or more other ECM members to participate. In all consideration and deliberations of such board committee, any members of the ECM acting as ex officio members shall be entitled to fully participate in all discussions and deliberations to the same extent as are board committee members. ECM members participating in the committee process shall be bound by the rules and procedures by which the committee operates and by the management decisions made by the board committee chairman. The nature of the participation by the ECM members is advisory and no member of the ECM or any person who is not a member of the board may vote on any issue requiring a vote by the committee members.

(e)

BET administrative decisions. In matters concerning the administration of BET, the ultimate responsibility and authority for making administrative decisions affecting BET is that of the Commission. The BET director shall establish and maintain a continuing dialogue and exchange of information with the ECM as to decisions regarding the administration of BET and shall seek ECM input and advice on all decisions affecting the administration of the program. In cooperation with the ECM chairman and such other additional members of the ECM as the BET director deems necessary and appropriate, the BET director shall develop and implement methods of establishing and maintaining the dialogue and exchange of information. The methods developed shall be set out in detail in a written format and shall be included in the BET manual.

(f)

Exclusions from participation. Neither the ECM nor any member thereof nor any manager is an employee, officer, or official of the State of Texas. Therefore, the ECM shall not participate in any decision-making process regarding personnel of the Commission, personnel policies, or personnel administration.

(g)

Structure. The ECM shall, to the extent possible, be composed of managers who are representative of all managers in BET based on such factors as geography and facility type and size. One representative shall be elected from each designated ECM district created by the Commission and as may be revised or modified from time to time.

(h)

Qualifications. Each candidate for election to the ECM must:

(1)

be a manager in good standing;

(2)

have been an active, assigned manager for a minimum of one year prior to nomination; and

(3)

be assigned to a facility in the ECM district he or she is seeking to represent.

(i)

Nomination, election and replacement. The BET director and the ECM shall establish and implement written procedures for the nomination, election, and replacement of managers to the ECM. All such procedures shall be included in the BET manual. No changes in any procedure for the nomination, election, or replacement of ECM representatives shall be made without the concurrence of a majority of the ECM. At a minimum, procedures established pursuant to this subsection shall:

(1)

insure that all candidates are qualified;

(2)

insure that all managers receive notice of the election procedures and of all dates and times for actions related to such elections in a timely manner so as to allow full participation by managers in the nomination and election process;

(3)

insure that each manager is provided an opportunity to nominate and elect candidates from the manager's district;

(4)

allow for secret ballots; and

(5)

insure that only managers actually assigned to a facility in the district are elected to represent the district on the ECM.

(j)

Changing districts. A member of the ECM shall automatically be removed as a representative from a district when that member is no longer assigned to a BET facility within the district from which elected.

(k)

Term of office. The term of office for ECM members shall be two years beginning on January 1 following the election. Even- and odd-numbered districts shall alternate election years. Any ECM member elected to fill a vacancy shall serve the remainder of the unexpired term of the manager who vacated a position.

(l)

Officers. The ECM shall select from among its members at the first meeting of every year the chairperson and any other officers the ECM may from time to time elect.

(m)

Meetings. The ECM shall meet once during each calendar year for the purpose of electing officers and again as it may establish by bylaw. It shall be the duty of the ECM chairman to provide to the BET director with a written meeting agenda ten business days in advance of each meeting.

(n)

Internal procedures of the ECM. The ECM shall establish bylaws to govern their internal operation and order of business and shall provide the Commission with a copy.

(o)

Travel expenses. Expenses for travel, meals, lodging, or other related expenses while the ECM representative is attending meetings approved by the Commission shall be reimbursed by the Commission at the rate allowed for travel by Commission staff. Travel for official business other than attendance at approved ECM meetings shall be reimbursed only when the travel is approved in advance by the BET director.

§167.13.Nondisciplinary Termination of License.

(a)

Causes for nondisciplinary termination. The license of a manager shall be terminated upon the occurrence of any one of the following:

(1)

The manager's visual acuity is improved by any means to the point at which the manager no longer satisfies the definition of blind.

(2)

The manager becomes otherwise permanently disabled and as a result of such permanent disability is unable to perform the essential functions of operating and maintaining a BET facility. Permanently disabled is a condition that is medically documented and has existed or is expected to exist for at least twelve months. The determination of permanently disabled shall be made by the executive director or his designee after review of medical documentation and other information relevant to the issue. Other information relevant to the issue shall include recommendations from Commission staff and the ECM, pertinent information from the manager's BET file or provided by the manager, and reports of examinations or evaluations, if any, obtained by the Commission and the manager.

(3)

The manager is unassigned and has not applied for an assignment for a period of 12 consecutive months.

(b)

Examination and evaluation. In any situation in which the vision or other disability of a manager is at issue with respect to termination of a license, the Commission or the manager may require an examination or evaluation by professionals to determine whether the manager is otherwise permanently disabled and as a result of such permanent disability is unable to perform the essential functions of operating and maintaining a BET facility. The reports of such professionals shall be furnished to the executive director and manager. Any failure of the manager to participate in required examinations or evaluations shall be grounds for disciplinary action.

(c)

Restoration of license. A license terminated for nondisciplinary reasons may be restored at the discretion of the executive director if the condition or conditions causing the nondisciplinary termination have been satisfactorily resolved. In considering a decision whether to restore a license terminated for nondisciplinary reasons, the executive director shall consult with appropriate BET staff, the ECM chairperson, and any advocate for the manager and shall consider all pertinent information and/or documentation provided by any of the persons described in this subsection.

(d)

Conditional restoration. If the executive director determines that a license terminated for nondisciplinary reasons should be restored, the executive director may condition the restoration of the license on any reasonable matters, such as, by way of illustration, continued medical treatment or therapy, or completion of refresher or other courses of training.

§167.14.Disciplinary Actions.

(a)

Causes for disciplinary action. The happening of any one or more of the following acts or omissions by a manager shall result in disciplinary action:

(1)

Failing to personally operate the assigned facility as set forth in the permit or contract with the host and/or in the manager's record of assignment unless prior approval to operate the facility in another manner has been obtained from the Commission.

(2)

Failing to pay moneys due from the operation of the facility, including, but not limited to, taxes, fees, or assessments to a governmental entity or supplier, or knowingly giving false or deceptive information to or failing to disclose required information to or misleading in any manner a governmental entity (including the Commission) or a supplier.

(3)

Failing to file required financial and other records with the Commission or preserve them for the time required by these policies and procedures.

(4)

Failing to cooperate in a timely manner with audits conducted by the Commission or other state or federal agencies.

(5)

Failing to maintain insurance coverage required by these policies and procedures.

(6)

Using BET equipment or facility premises to operate another business.

(7)

Failing to properly maintain facility equipment in a clean and operable condition within the scope of the manager's level of maintenance authorization.

(8)

Intentionally abusing, neglecting, using, or removing facility equipment without written Commission authorization.

(9)

Substance abuse while operating a facility; or other abusive use of substances that interferes with the operation of the facility.

(10)

Operating a BET facility in a manner that endangers the Commission's investment in the facility.

(11)

Using privileged information concerning an existing facility to compete with the Commission for the facility.

(12)

Failing to comply with any federal or state law prohibiting discrimination and failure to assure services without distinction on the basis of race, gender, color, national origin, religion, age, political affiliation, or disability.

(13)

Failing to maintain the necessary skills and abilities for effectively managing a facility.

(14)

Using a facility to conduct unlawful activities.

(15)

Failing to comply with the manager's responsibilities under applicable law, these rules, the requirements of the BET manual, or any proper and authorized instruction by Commission personnel.

(b)

Acts of improper contact. The participation in any one or more of the following acts or omissions by a manager shall result in termination of the manager's license:

(1)

Contacting or communicating with a member of a selection panel or an applicant for a facility then being considered for assignment for the purpose of influencing or manipulating, directly or indirectly, the selection of an applicant for the facility being considered for assignment.

(2)

Causing another person to contact or communicate with a member of a selection panel or an applicant for a facility then being considered for assignment for the purpose of influencing or manipulating, directly or indirectly, the selection of an applicant for the facility being considered for assignment.

(3)

Giving or offering to give, directly or indirectly, expressly or by implication, a thing of value, tangible or intangible, including promises of future benefit, for the purpose of influencing or manipulating any decision or process of BET.

(4)

Causing another person to give or offer to give, directly or indirectly, expressly or by implication, a thing of value, tangible or intangible, including promises of future benefit, for the purpose of influencing or manipulating any decision or process of BET.

(c)

Disciplinary action pending an appeal. The Commission may at its discretion suspend disciplinary action pending the outcome of an appeal.

(d)

Types of disciplinary actions. There are four types of disciplinary actions:

(1)

Written reprimand. Written reprimand means a formal statement describing violations of applicable law, these rules, the requirements of the BET manual, or any proper and authorized instruction by Commission personnel.

(2)

Probation. Probation means allowing a manager to continue in BET in an effort to satisfactorily remedy a condition that is not acceptable under these rules. If the condition causing probation is satisfactorily remedied within the time periods specified in the written notice of probation, the probation will be lifted. If the unacceptable condition is not remedied within the time specified, additional and more serious disciplinary actions may ensue. When a manager who has been on probation three times in a three-year period qualifies for probation for the fourth time within said three years, the Licensed Manager's license may be revoked according to Commission procedures.

(3)

Loss of facility. Loss of facility means the removal of a manager from the manager's current facility for disciplinary reasons.

(4)

Termination. Termination means the cessation of a license issued to a manager to operate a facility and the removal of the manager from BET.

(e)

Disciplinary procedures.

(1)

The Commission shall make the decision as to what disciplinary action to take based upon the seriousness of the violation, the damage to BET, and the manager's disciplinary record. The foregoing language notwithstanding, when the act or omission alleged to be a matter requiring disciplinary action is one or more of those described in subsection (b) of this section, the disciplinary action to be taken shall in every case be termination of the license.

(2)

Upon receipt of information which indicates that disciplinary action may be appropriate, the Commission shall take the following actions prior to making a determination as to taking disciplinary action:

(A)

The Commission shall notify the manager in writing of the allegations and reasons that disciplinary action is being considered. The notice shall either be hand delivered and read to the manager, or it shall be delivered to the manager's work or home address.

(B)

The manager shall have 5 business days to respond, either in person or in writing, to the notice. The response shall be made to the individual designated in the notice. After receiving the manager's response, the Commission shall decide what disciplinary action, if any, is appropriate. If no response is timely received from the manager, the Commission shall decide what disciplinary action, if any, is to be taken without the manager's response.

(C)

If a decision is made to issue a written reprimand, the written reprimand will be accompanied by a brief summary of the evidence justifying the reprimand, suggested steps for correcting the violation, and consequences of not correcting the violation. All reprimands shall contain notice of the manager's right to appeal the reprimand and a statement that failure to correct the violation may result in further disciplinary action.

(D)

If a decision is made to place a manager on probation, the Commission shall deliver to the manager a letter of probation containing the following:

(i)

the specific reasons for probation;

(ii)

the remedial action required to remove the manager from probation;

(iii)

the time within which said remedial action must take place;

(iv)

the consequences of failure to take remedial action within the prescribed time frame; and

(v)

notice of the manager's right to appeal.

(E)

Upon satisfactory completion of the remedial action outlined in the letter of probation, a manager shall be removed from probation.

(F)

Failure of the manager to complete remedial requirements within the prescribed time frame shall result in one or more of the following actions:

(i)

required training;

(ii)

extension of probation;

(iii)

restrictions on applying for another facility;

(iv)

removal from the facility;

(v)

termination of license.

(G)

If, after the manager has had an opportunity to respond, a decision is made that sufficient grounds exist to remove the manager from a facility, the Commission shall notify the manager in writing by hand delivery or certified U. S. Mail, return receipt requested, that the manager's assignment to the BET facility has been terminated and the manager must vacate the facility. The removal letter shall contain the following information:

(i)

specific reasons for removal from the facility;

(ii)

actions required by the manager, if any;

(iii)

requirements for obtaining reassignment; and

(iv)

notice of the manager's right to appeal.

(H)

If, after the manager has had an opportunity to respond, a decision is made that sufficient grounds exist for termination, the Commission shall notify the manager in writing by hand delivery or certified U. S. Mail, return receipt requested, that the Commission has decided that sufficient cause exists to terminate the manager's license. The manager shall be instructed to vacate the facility if the manager has not already done so. The termination letter shall contain the following information:

(i)

specific reasons for termination;

(ii)

actions required by the manager, if any;

(iii)

procedures for applying for any other Commission services for which the person may be eligible; and

(iv)

notice of the manager's rights under the Randolph-Sheppard Act.

(3)

The provisions of paragraph (2) notwithstanding, pending a determination with respect to disciplinary action, a manager may be removed from a facility if the Commission considers such removal in the best interest of BET.

(4)

During the license termination process, the manager shall not be eligible for assignment to any other BET facility.

§167.15.Procedures for Resolution of Manager's Dissatisfaction.

(a)

Appealable actions. These rules provide the procedures for managers who are dissatisfied with a Commission action arising from the operation of BET.

(b)

Actions not subject to appeal. The phrase "Commission action arising from the operation of BET" in subsection (a) does not include the following actions of the Commission:

(1)

the hiring, firing or discipline of Commission employees;

(2)

the challenge of federal or state law, or rules previously approved by the Secretary of Education pursuant to the Randolph-Sheppard Act; or

(3)

an action by the Commission unless it is alleged that the action is in violation of applicable law, these rules, the requirements of the BET manual, any proper and authorized instruction by Commission personnel, or is unreasonable. Unreasonable shall mean without rational basis or arbitrary and capricious.

(c)

Commission discretion and sovereign immunity. The Commission does not waive its right and duty to exercise its lawful and proper discretion. The Commission does not waive its sovereign immunity.

(d)

Remedies. Remedies available to resolve dissatisfaction shall correct the action complained of from the earlier time of:

(1)

agreement by the parties as to an appropriate remedy, or

(2)

a final resolution pursuant to the Randolph-Sheppard Act that the Commission acted in violation of applicable law, these rules, the requirements of the BET manual, any proper and authorized instruction by Commission personnel, or acted unreasonably.

(e)

Informal administrative review. The manager has the right to request an informal administrative review to resolve a dissatisfaction. The purpose of an informal administrative review is to allow a manager a quick means for resolving a dissatisfaction arising from the operation or administration of BET. The Commission shall attempt to resolve complaints at the informal administrative review level. Informal administrative reviews shall be conducted according to the following:

(1)

The manager or manager's representative must submit a written request for an informal administrative review no later than the 20th business day after the occurrence of the disputed action. The request shall be considered timely if it is either postmarked or delivered to the Commission within said 20 business days.

(2)

An informal administrative review shall be conducted only by a member or members of the administrative staff of the Commission who have not participated in the Commission action in question.

(3)

The written request for an informal administrative review must describe with reasonable particularity the specific action sufficient to provide notice as to the action which is alleged to be unreasonable or in violation of applicable law, these rules, the requirements of the BET manual, or any proper and authorized instruction by Commission personnel. The request must, to the best of the Complainant's knowledge, contain the dates those actions occurred and the law or regulation must be reasonably identified if an action is alleged to be in violation of law, these rules, the requirements of the BET manual, or regulation. The request must also identify the desired relief or remedy.

(4)

The informal administrative review shall be held during regular Commission working hours at a district or local office location. Unless agreed otherwise by the parties, an informal administrative review shall be conducted no later than the 45th business day after the date the Commission receives the request.

(5)

Reader or other communication services, if needed, shall be arranged for the manager by the Commission upon request by the manager at least three business days prior to the review date.

(6)

The Commission staff member conducting the informal administrative review shall determine whether the action arising out of the operation or administration of BET was in violation of applicable law, these rules, the requirements of the BET manual, any proper and authorized instruction by Commission personnel or is unreasonable. If the action is found to be not in violation of applicable law, these rules, the requirements of the BET manual, any proper and authorized instruction by Commission personnel or not unreasonable, the staff member shall not substitute his discretion for that of the discretion exercised by the Commission.

(7)

The reviewing Commission staff member shall prepare brief findings of fact, conclusions, and recommendations no later than the 10th business day after the conclusion of the review. These shall be sent to the executive director, who shall review them and make his own determination as to whether to accept the findings, conclusions and recommendation of the reviewing staff member. The executive director shall inform the manager of his decision in writing no later than the 10th business day after receipt of the recommendation.

(8)

When an informal administrative review does not resolve a dispute to the satisfaction of a manager, such manager may request a full evidentiary hearing in accordance with the provisions of these rules and regulations.

(f)

Full evidentiary hearing. A manager has the right to request a full evidentiary hearing to resolve a dissatisfaction according to the following:

(1)

A manager has the right to request a full evidentiary hearing without first going through an informal administrative review.

(2)

A request for an evidentiary hearing must be made no later than the 20th business day after the occurrence of the agency action about which the manager complains. The executive director, upon request of the complaining party, may extend the time period for filing a grievance upon the showing of good cause by the complaining party for such additional period if such request is made no later than the 20th business day after the occurrence of the agency action about which the manager complains.

(3)

A manager requesting a full evidentiary hearing after the conduct of an informal administrative review must request such hearing in writing no later than the 20th business day after receipt of the executive director's decision.

(4)

A request for a full evidentiary hearing must be in writing and transmitted to the executive director. A request that is postmarked within the applicable time frame shall be considered timely delivered if properly posted.

(5)

The request for a full evidentiary hearing must describe the specific action with reasonable particularity sufficient to provide notice as to the action which is alleged to be unreasonable or in violation of applicable law, these rules, the requirements of the BET manual, or any proper and authorized instruction by Commission personnel. The request must, to the best of the complainant's knowledge, contain the date the action occurred and the law or regulation must be reasonably identified if an action is alleged to be in violation of law, these rules, the requirements of the BET manual, or regulation. The request must also identify the desired relief or remedy.

(6)

The manager may be represented in the evidentiary hearing by legal counsel or other representative of the manager's choice, at the manager's expense.

(7)

Reader or other communication services, if needed, shall be arranged for the manager by the Commission upon request by the manager at least three business days prior to the hearing date.

(8)

The manager shall be notified in writing of the time and place fixed for the hearing and of the manager's right to be represented by legal or other counsel.

(9)

The presiding officer at the hearing shall be an impartial and qualified official who has no involvement either with the Commission action which is at issue or with the administration or operation of BET.

(10)

Hearings shall be conducted in accordance with the Randolph-Sheppard Act, these rules, and the State Office of Administrative Hearings (SOAH) procedures for hearing contested case hearings contained in 1 TAC §105.1 et seq. to the extent those procedures do not conflict with the Act or these rules.

(11)

Managers bringing complaints shall have the burden of proving their cases by the preponderance of evidence. Managers shall present their evidence first.

(12)

A record shall be made of the evidence and shall be made available to the parties by the Commission no later than the 30th business day after the close of the hearing.

(13)

The hearing officer shall issue a recommendation which shall set forth the principal issues and relevant facts adduced at the hearing and the applicable provisions of law, rule, the requirements of the BET manual, or any proper and authorized instruction by Commission personnel. The recommendation shall contain findings of fact and conclusions with respect to each of the issues, and the reasons and bases for the conclusions.

(14)

In formulating a recommendation, the hearing officer shall not evaluate whether the Commission's actions were wise, efficient, or effective. Rather, the hearing officer is limited to determining whether the Commission's actions were unreasonable, or violated applicable law, these rules, the requirements of the BET manual, or any proper and authorized instruction by Commission personnel.

(15)

Should the hearing officer find that the actions taken by the Commission were unreasonable, or violated applicable law, these rules, the requirements of the BET manual, or any proper and authorized instruction by Commission personnel, the hearing officer shall also recommend any prospective action necessary to correct the violations.

(16)

The hearing officer's recommendation shall be made no later than the 30th business day after the receipt of the official transcript. The recommendation shall be delivered promptly to the executive director.

(17)

The executive director shall review the recommendation of the hearing officer and forward a decision to the manager no later than the 20th business day after receipt of the hearing officer's recommendation.

(g)

Arbitration. A manager appealing the Commission's decision must file a complaint with the Secretary of Education no later than the 20th business day after receipt of such decision in conformity with the provisions of Sec. 395.13 of the Act, pertaining to arbitration of vendor complaints.

§167.16.Establishing and Closing Facilities.

(a)

Establishing facilities.

(1)

On its own initiative, at the request of an agency that controls federal or state property, or at the request of a private organization, the Commission shall survey the property, blueprints, or other available information concerning the property to determine whether the installation of a BET facility is feasible and consonant with applicable laws and regulations and with the Commission's vocational rehabilitation objectives.

(A)

If the installation of a BET facility is determined to be feasible, the Commission shall proceed to develop plans for the establishment of a facility in accordance with procedures promulgated and implemented by the Commission staff and, when the facility is developed, shall assign a manager to the facility.

(B)

If the Commission determines that the location being considered for a BET facility is not appropriate for use in the program or that the creation of the facility is not feasible and the location being considered is on state property, then the following shall occur:

(i)

The BET director shall, no later than the 40th business day after the date the location was brought to the attention of the Commission or the Commission became aware of its possible use as a BET facility, certify to the executive director that the location being considered is not appropriate for BET use or that it is not feasible to establish a BET facility at the location.

(ii)

The location shall be made available to the Texas Rehabilitation Commission in accordance with state law.

(2)

The procedures set forth in this section shall apply whether the consideration of a location is an initial or a subsequent review.

(b)

Maximizing employment opportunities.

(1)

On the effective date of this section, the Commission shall hereafter maximize the number of employment opportunities for persons who are blind by applying the procedures set forth in this subsection. This subsection shall not affect the current assignment of any manager at the time this section becomes effective.

(2)

Upon the opening of a new location or upon needing to advertise and assign a manager to an existing facility, the Commission shall determine whether the opportunity exists to increase the number of employment opportunities for persons who are blind. The Commission shall increase the number of employment opportunities in a location when all of the following circumstances exist:

(A)

The location must be physically suited to support the operation of two or more BET facilities, such as, by way of illustration and not by way of definition or limitation:

(i)

a single building in which two or more clearly separate and distinct facilities can be located in two or more separate areas of the building;

(ii)

a location comprised of a complex of buildings, each of which can support one or more BET facilities; or

(iii)

a location that includes two or more clearly separate and distinct sites that can support different operations, such as two or more dining areas; a dining area and a site for vending machines; a cafeteria and one or more other types of BET facilities; or any combination of the foregoing.

(B)

The creation of two or more facilities from one location must provide from at least one of the facilities before set-aside fees an income equal to or greater than 600% of the state median income of all managers for the preceding year.

(C)

Once the requirement in subparagraph (B) is satisfied, if any additional facility is not projected to provide before set-aside fee an income of at least 200% of the state median income of all managers for the preceding year, such site shall be assigned by the Commission as a satellite location. Once the satellite location produces net proceeds in excess of 200% of the state median income per year before set aside fees, it shall be advertised for assignment as a full-time employment opportunity pursuant to these rules.

(D)

Once the requirement in subparagraph (B) is satisfied, if at least one additional facility is projected to provide before set-aside fee an income of at least 200% of the state median income of all managers for the preceding year, then the Commission shall advertise such facility or facilities pursuant to these rules.

(E)

There is no circumstance beyond the control of the Commission which precludes assignment of more than one manager to the same location.

(F)

Under no circumstances shall more than one manager be assigned to a clearly separate and distinct site regardless of income produced or any other factors. Additionally, under no circumstances shall a site be divided into separate facilities by any means other than by actual physical separation.

(G)

In those situations in which multiple managers are assigned to a single location and the host of the location requires a single point of contact, the Commission shall designate from among the managers assigned to the location a directing manager to serve as the single point of contact. The directing manager shall be compensated for these services in accordance with policies for paying set-aside fees.

(c)

Closing facilities.

(1)

Except for temporary closings by Commission staff, no BET facility shall be closed by the Commission until each of the following has occurred:

(A)

The BET director has certified to the executive director that the facility is no longer a feasible or viable BET facility and provides reasons for that opinion.

(B)

The executive director has approved the proposed closing of the facility.

(C)

The facility has been made available to the Texas Rehabilitation Commission for operation of a facility by a person disabled by conditions other than blindness if the location is on state property, and the Texas Rehabilitation Commission has declined the facility.

(2)

All facility closings shall be reported to the Commission's board at the regular meeting of the board next following such closing with the reasons for the closing.

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

Filed with the Office of the Secretary of State, on March 8, 2001.

TRD-200101416

Terrell I. Murphy

Executive Director

Texas Commission for the Blind

Earliest possible date of adoption: April 22, 2001

For further information, please call: (512) 377-0611


Part 11. TEXAS COMMISSION ON HUMAN RIGHTS

Chapter 338. EXEMPTED RESIDENTIAL REAL ESTATE-RELATED TRANSACTIONS

40 TAC §338.6

The Texas Commission on Human Rights proposes the amendment of §338.6, concerning Familial Status. This amendment is necessary to demonstrate that the TCHR adheres to the same principles regarding housing for older persons to its federal counterpart, the Department of Housing and Urban Development, which issued a final rule on this matter. Pursuant to §301.002(3) of the Texas Property Code, a purpose of the Texas Fair Housing Act is to provide rights and remedies substantially equivalent to those granted under federal law.

The Commission has determined that for each year of the first five years the amended rule is in effect, there will be no fiscal impact on state and local government as a result of enforcing and administering the amended rule.

The Commission has also determined that there will be neither an economic cost nor adverse impact on small businesses as a result of the amended rule.

Comments on the proposed amendment must be submitted within 30 days after the publication of the proposed section in the Texas Register to Katherine A. Antwi, Interim Executive Director, Mail Code 344, Texas Commission on Human Rights, P.O. Box 13006, Austin, Texas, 78711. Any requests for a public hearing must be submitted separately to the Interim Executive Director.

This rule is amended under the Texas Property Code, Chapter 301, Section 301.062, and 40 Texas Administrative Code Chapter 336, Section 336.1 and Chapter 335, Section 335.4. Under the Texas Property Code, Section 301.062, the Commission may adopt rules as necessary to implement the Texas Fair Housing Act. The Texas Administrative Code Title 40, Sections 335.4 and 336.1, provide that the Commission may adopt rules and regulations to execute the duties and functions of the Texas Commission on Human Rights.

No other statute, article or code is affected by this proposal.

§338.6.Familial Status

(a)

Nothing in the Texas Fair Housing Act regarding discrimination based on familial status applies to housing for older persons, if the commission determines that the housing is specifically designed and operated to assist elderly persons under a federal or state program; the housing is intended for, and solely occupied by, persons 62 years of age or older; or the housing is intended and operated for occupancy by at least one person 55 years of age or older per unit as determined by commission rules.

(b)

The exemption related to housing for persons 62 years or older, satisfies the requirements of this section even though:

(1)

there are persons residing in such housing on September 13, 1988, who are under 62 years of age, provided that all new occupants are persons 62 years of age or older;

(2)

there are unoccupied units, provided that such units are reserved for occupancy for persons 62 years of age or older;

(3)

there are units occupied by employees of the housing (and family members residing in the same unit) who are under 62 years of age provided they perform substantial duties directly related to the management or maintenance of the housing.

(c)

The exemption related to housing intended and operated for occupancy by at least one person 55 years of age or older per unit, shall satisfy the following requirements:

[ (1)

the housing facility has significant facilities and services specifically designed to meet the physical or social needs of older persons. Significant facilities and services specifically designed to meet the physical or social needs of older persons include, but are not limited to, social and recreational programs, continuing education, information and counseling, recreational, homemaker, outside maintenance and referral services, an accessible physical environment, emergency and preventive health care programs, congregate dining facilities, transportation to facilitate access to social services, and services designed to encourage and assist residents to use the services and facilities available to them (the housing facility need not have all of these features to qualify for the exemption under this section);]

[ (2)

it is not practicable to provide significant facilities and services designed to meet the physical or social needs of older persons and the housing facility is necessary to provide important housing opportunities for older persons. In order to satisfy this requirement the owner or manager of the housing facility must demonstrate through credible and objective evidence that the provision of significant facilities and services designed to meet the physical and social needs of older persons would result in depriving older persons in the relevant geographic area of needed and desired housing. The following factors, among others, are relevant in meeting the requirements of this paragraph:]

[ (A)

whether the owner or manager of the housing facility has endeavored to provide significant facilities and services designed to meet the physical or social needs of older persons either by the owner or by some other entity. Demonstrating that such services and facilities are expensive to provide is not alone sufficient to demonstrate that the provision of such services is not practicable:]

[ (B)

the amount of rent charged, if the dwellings are rented, or the price of the dwellings, if they are offered for sale;]

[ (C)

the income range of the residents of the housing facility;]

[ (D)

the demand for housing for older persons in the relevant geographic area;]

[ (E)

the range of housing choices for older persons within the relevant geographic area;]

[ (F)

the availability of other similarly priced housing for older persons in the relevant geographic area. If similarly priced housing for older persons with significant facilities and services is reasonably available in the relevant geographic area then the housing facility does not meet the requirements of this paragraph;]

[ (G)

the vacancy rate of the housing facility;]

(1)

[ (3) ] at least 80% of the units in the housing facility are occupied by at least one person 55 years of age or older per unit [ except that a newly constructed housing facility for first occupancy after March 12, 1989, need not comply with this paragraph until 25% of the units in the facility are occupied ]:

(A)

a newly constructed housing facility for first occupancy after March 12, 1989, need not comply with this paragraph until 25% of the units in the facility are occupied;

(B)

a housing facility or community may not evict, refuse to renew leases, or otherwise penalize families with children in order to achieve occupancy of at least 80% of the occupied units by at least one person 55 years of age or older.

(2)

[ (4) ] the owner or manager of a housing facility publishes and adheres to policies and procedures which demonstrate an intent by the owner or manager to provide housing for persons 55 years of age or older. The following factors, among others, are relevant in determining whether the owner or manager of a housing facility has complied with the requirements of this paragraph:

(A)

the manner in which the housing facility is described to prospective residents;

(B)

the nature of any advertising designed to attract prospective residents;

(C)

age verification procedures;

(D)

lease provisions;

(E)

written rules and regulations;

(F)

actual practices of the housing facility or community; [ owner or manager in enforcing relevant lease provisions and relevant rules or regulations; ]

(G)

public posting in common areas of statements describing the facility or community as housing for persons 55 years of age or older.

(3)

[ (5) ] housing satisfies the requirements of this section even though:

(A)

on September 13, 1988, under 80% of the occupied units in the housing facility are occupied by at least one person 55 years of age or older per unit, provided that at least 80% of the units that are occupied by new occupants after September 13, 1988, are occupied by at least one person 55 years of age or older;

(B)

there are unoccupied units, provided that at least 80% of such units are reserved for occupancy by at least one person 55 years of age or older;

(C)

there are units occupied by employees of the housing (and family members residing in the same unit) who are under 55 years of age provided they perform substantial duties directly related to the management or maintenance of the housing.

(d)

The owner or manager of a housing facility may not be held personally liable for monetary damages for discriminating on the basis of familial status, if the person acted with the good faith belief that the housing facility qualified for a housing for older persons exemption:

(1)

the person claiming the good faith belief defense must have actual knowledge that the housing facility has asserted in writing that it qualifies for a housing for older persons exemption;

(2)

a housing facility must certify before the date on which discrimination is claimed to have occurred, to the person claiming the defense that it complies with the requirements of such an exemption as housing for persons 55 years of age or older in order for such person to claim the defense.

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

Filed with the Office of the Secretary of State, on March 5, 2001.

TRD-200101310

Katherine A. Antwi

Interim Executive Director

Texas Commission on Human Rights

Earliest possible date of adoption: April 22, 2001

For further information, please call: (512) 437-3457