TITLE 40.SOCIAL SERVICES AND ASSISTANCE

Part 1. TEXAS DEPARTMENT OF HUMAN SERVICES

Chapter 41. VENDOR FISCAL INTERMEDIARY PAYMENTS

40 TAC §41.114

The Texas Department of Human Services (DHS) proposes to amend §41.114, concerning vendor fiscal intermediary payment option, in its Vendor Fiscal Intermediary Payments chapter. The purpose of the amendment is to replace references to "vendor fiscal intermediary" with "consumer directed services" (CDS), in reference to the payment option available to eligible consumers in the In-home and Family Support, Primary Home Care, Family Care Services, and Consumer-Managed Personal Assistance Services programs. The amendment also removes references to the attendant compensation enhancement participation payment rate, allowing for expansion of the CDS payment option to other services besides the attendant services.

The Texas Health and Human Services Commission (HHSC) is proposing related policy in its Chapter 355 in this issue of the Texas Register .

Bobby Halfmann, Chief Financial Officer, has determined that, for the first five-year period the proposed section will be in effect, there will be no fiscal implications for state or local government as a result of enforcing or administering the section.

Bettye M. Mitchell, Deputy Commissioner for Long Term Care, has determined that, for each year of the first five years the section is in effect, the public benefit anticipated as a result of enforcing the section will be to have the name of the payment option reflect the types of available services and be consistent with the name used in approved applicable Medicaid waivers and Medicaid State Plan amendments. There will be no adverse economic effect on small or micro businesses as a result of enforcing or administering the section, because the amendment is technical in nature and does not impact policy. There is no anticipated economic cost to persons who are required to comply with the proposed section. There is no anticipated effect on local employment in geographic areas affected by this section.

Questions about the content of this proposal may be directed to Carolyn Pratt at (512) 685- 3127 in HHSC's Rate Analysis Department. Written comments on the proposal may be submitted to Supervisor, Rules and Handbooks Unit-073, Texas Department of Human Services E-205, P.O. Box 149030, Austin, Texas 78714-9030, within 30 days of publication in the Texas Register . For further information regarding the proposal or to make the proposal available for public review, contact local offices of DHS or Carolyn Pratt at (512) 685- 3127 in HHSC Rate Analysis.

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

The amendment is proposed under the Human Resources Code, Chapter 22, which authorizes DHS to administer public assistance programs.

The amendment implements the Human Resources Code, §§22.0001-22.038.

§41.114. Consumer Directed Services [ Vendor Fiscal Intermediary ] Payment Option.

(a) The consumer directed services (CDS) [ vendor fiscal intermediary (VFI) ] payment option is made available to eligible consumers in the In-home and Family Support, Primary Home Care (PHC), Family Care Services, and Consumer-Managed Personal Assistance Services programs.

(b) The sum of the payment rate for the contracted CDS agency [ VFI ] and the payment rate for the consumer participating in CDS must not exceed the [ hourly attendant compensation enhancement participant ] payment rate made to contracted providers in these programs. The payment rate for the contracted CDS agency [ VFI ] is determined by modeling the estimated administrative cost to carry out the responsibilities of the CDS agency [ VFI ]. The payment rate for the consumer is determined by subtracting the contracted CDS [ VFI ] payment rate from the [ attendant compensation enhancement participation ] payment rate made to contracted providers in these programs.

(c) The CDS [ VFI ] payment rate is paid to the CDS agency [ VFI ] as a percentage of the amount expended and claimed to the Texas Department of Human Services.

(d) (No change.)

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 February 21, 2003.

TRD-200301347

Paul Leche

General Counsel, Legal Services

Texas Department of Human Services

Earliest possible date of adoption: April 6, 2003

For further information, please call: (512) 438-3734


Chapter 69. CONTRACTED SERVICES

Subchapter L. CONTRACT ADMINISTRATION

40 TAC §69.202

The Texas Department of Human Services (DHS) proposes to amend §69.202, concerning procurement, in its Contracted Services chapter. The purpose of the amendment is to give DHS the option of requiring prospective contractors to undergo an orientation before entering an open enrollment contract. The amendment also brings the rule into conformance with current practice by replacing a reference to unit rates as the method of payment for open enrollment contractors with a broader reference to payment methods.

Bobby Halfmann, Chief Financial Officer, has determined that, for the first five-year period the proposed section is in effect, there will be no fiscal implications for state or local government as a result of enforcing or administering the section. DHS will incur costs to develop and provide orientation sessions; however, these costs will be covered using existing resources. There will be costs associated with developing and producing the orientation and distribution orientation materials. If computer-based orientation is not used, DHS staff may conduct orientation sessions, which may involve travel, lodging, meal, and meeting room expenses.

Charles F. Lyon, Deputy Commissioner for Support Services, has determined that the public benefit anticipated for each year of the first five years the amendment is in effect is that prospective contractors will be able to make a more informed decision about whether to enter an open enrollment contract if they have first gone through an orientation. It is anticipated that knowledge gained in such an orientation will help potential contractors determine whether an open enrollment contract makes business sense and thus help to avoid future problems for both the contractor and the state. There will be no adverse economic effect on small or micro businesses as a result of enforcing or administering the amended rule, because the proposal is intended to help businesses (potential contractors) of all sizes make informed decisions about whether to enter an open enrollment contract and thus avoid unnecessary costs. Costs for persons required to comply with the rule (prospective contractors) will be minimal and consistent with the normal cost of investigating business opportunities. DHS will not charge for the orientation. Costs to contractors could range from nothing for computer-based orientation to the cost of travel, meals, and lodging for a day of orientation. There is no anticipated effect on local employment in geographic areas affected by this section.

Questions about the content of this proposal may be directed to Bill Gordon, at (512) 438- 2196 in DHS's Contract Policy section. Written comments on the proposal may be submitted to Supervisor, Rules and Handbooks Unit-125, 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 Government Code, DHS has determined that Chapter 2007 of the Government Code does not apply to these rules. Accordingly, DHS is not required to complete a takings impact assessment regarding these rules.

The amendment is proposed under the Human Resources Code, Chapter 22, which authorizes DHS to administer contracts that accomplish the purposes of its programs.

The amendment implements the Human Resources Code, §§22.0001-22.038.

§69.202.Procurement.

(a) (No change.)

(b) Exemptions to Competition.

(1) Noncompetitive procurement methods may be used if authorized by law, rule, or regulations and if:

(A) all qualified providers are allowed to enroll if payment terms are accepted [ they accept the established unit rate(s) for services ]; or

(B)-(D) (No change.)

(2) (No change.)

(c) Open Enrollment.

(1) Open enrollment is a noncompetitive purchase method by which DHS contracts for services with all providers that meet program-specified qualifications.

(2) DHS requires all open enrollment contractors to complete a pre-contract orientation, unless the program area determines that such an orientation is not required before contract enrollment. The program area establishes the content and method of delivery of the orientation.

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 February 21, 2003.

TRD-200301348

Paul Leche

General Counsel, Legal Services

Texas Department of Human Services

Earliest possible date of adoption: April 6, 2003

For further information, please call: (512) 438-3734


Chapter 75. INVESTIGATIONS

Subchapter A. GENERAL PROCEDURES

40 TAC §75.3

(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 Texas Department of Human Services (DHS) proposes to repeal Chapter 75, concerning investigations, §75.3. The purpose of the repeal is to delete a rule concerned with internal management and organization in DHS's Office of Program Integrity. Such a rule is not necessary, according to the Government Code, §2001.003(6)(c) (Administrative Procedure Act).

Bobby Halfmann, Chief Financial Officer, has determined that, for the first five-year period the proposed repeal is in effect, there are no fiscal implications for state or local government as a result of enforcing or administering the repeal.

Mary Ault, Deputy Commissioner for the Office of Program Integrity, has determined that, for each year of the first five years the repeal is in effect, the anticipated public benefit is the elimination of an unnecessary rule from the DHS rule base. There is no adverse economic effect on small or micro businesses as a result of enforcing or administering the repeal, because the rule concerns DHS's internal procedures. There is no anticipated economic cost to persons who are required to comply with the proposed repeal. There is no anticipated effect on local employment in geographic areas affected by the repeal.

Questions about the content of this proposal may be directed to Pam Colon at (512) 231- 5845 in DHS's Office of Program Integrity. Written comments on the proposal may be submitted to Supervisor, Rules and Handbooks Unit-119, 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 Government Code, DHS has determined that Chapter 2007 of the Government Code does not apply to this rule. Accordingly, DHS is not required to complete a takings impact assessment regarding this rule.

The repeal is proposed under the Human Resources Code, Chapter 21, which provides DHS with the authority to allocate and re-allocate functions of the agency, and Chapter 22, which authorizes DHS to administer public assistance programs.

The repeal implements the Human Resources Code, §21.005 and §§22.0001- 22.038.

§75.3.Investigations Referred by the Commissioner.

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 February 21, 2003.

TRD-200301349

Paul Leche

General Counsel, Legal Services

Texas Department of Human Services

Earliest possible date of adoption: April 6, 2003

For further information, please call: (512) 438-3734