TITLE 25.HEALTH SERVICES

Part 1. TEXAS DEPARTMENT OF HEALTH

Chapter 128. PERMITS FOR CONTACT LENS DISPENSERS

The Texas Department of Health (department) proposes amendments to §§128.3, 128.9, and 128.11-128.12, the repeal of §128.5, and new §128.5, concerning the regulation of persons filling contact lens prescriptions.

The repeal and new rule implement the "Fairness to Contact Lens Consumers Act", Public Law 108-164, a change in federal law affecting the dispensing of contact lenses. The amendments are necessary to implement House Bill 2985, 78th Legislature, 2003, which added Occupations Code, Chapter 101, Subchapter G, which establishes the Office of Patient Protection within the Health Professions Council and requires additional fees to fund it; Senate Bill 1152, 78th Legislature, 2003, which amended Government Code, Chapter 2054, to require participation in Texas Online; House Bill 2292, 78th Legislature, 2003, which revised Health and Safety Code, §§ 12.0111 and 12.0112, and requires two-year licenses effective January 1, 2005; and Senate Bill 161, 78th Legislature, 2003, which amends Occupations Code, Chapter 353, relating to emergency suspension. The amendments also clarify the department's current complaint process.

An amendment to §128.3 lists the additional fees that will be imposed, and clarify that the renewal fee for a permit with a two year term will be twice the amount required for the current annual renewal. New §128.5 references the new federal statute. The amendment to §128.9 further clarifies that a permit may be issued for a one or a two year term. The amendment to §128.11 clarifies the department's current complaint process. New language is added to amend §128.12 to reference the new statutory authority of the department to impose an emergency suspension.

Jim Zukowski, Ed. D., Chief, Bureau of Licensing and Compliance, has determined that for each year of the first five years the sections are in effect, there will be fiscal implications as a result of enforcing or administering the sections as proposed. The effect on state government will be an estimated increase in revenue to the state of approximately $1,000 per year. It is estimated that costs to the state to administer the new provisions will be equal to the estimated fee increases. No fiscal impact to local government is expected.

Dr. Zukowski has also determined that for each year of the first five years the sections are in effect, the public benefit anticipated as a result of enforcing or administering the proposed sections will be to assure the issuance of permits and the regulation of contact lens dispensers in Texas. There will be no effect on small businesses or micro-businesses because the maximum fee increase amount of $10 for a new applicant and $6 annually for a renewal is too small to impact businesses engaged in sale of contact lenses. There are anticipated economic costs of up to $10 to persons who are required to comply with the sections as proposed. There is no anticipated impact on local employment.

Comments on the proposal may be submitted to Yvonne Feinleib, Program Director, Texas Department of Health Contact Lens Permit Program, 1100 West 49th Street, Austin, Texas 78756, (512) 834-4515. Comments will be accepted for 30 days following publication of the proposal in the Texas Register .

25 TAC §§128.3, 128.5, 128.9, 128.11, 128.12

The amendments and new section are proposed under the Occupations Code, Chapter 353, which authorizes the Texas Board of Health (board) to adopt rules necessary to implement the section; and the Health and Safety Code, §12.001, which provides the board with the authority to adopt rules for the performance of every duty imposed by law on the board, the department, and the commissioner of health.

The amendments and new section affect the Occupations Code, Title 3, Chapter 353.

§128.3.Fees.

(a) The [ annual ] permit fees are as follows:

(1) $50 for a one year term and $100 for a two year term for an optician who has registered with the department under the Opticians' Registry Act, Occupations Code, Chapter 352;

(2) $75 for a one year term and $150 for a two year term for an optician who has not registered with the department under the Opticians' Registry Act, Occupations Code, Chapter 352; and

(3) $300 for a one year term and $600 for a two year term for a business entity.

(b) For all applications and renewal applications, the department is authorized to collect fees to fund the Office of Patient Protection, Health Professions Council, as mandated by law.

(c) For all applications and renewal applications, the department is authorized to collect subscription and convenience fees, in amounts determined by the Texas Online Authority, to recover costs associated with application and renewal application processing through Texas Online.

§128.5.Sale or Delivery of Contact Lenses.

An individual or business holding a permit shall comply with the federal "Fairness to Contact Lens Consumers Act" Public Law 108-164, and applicable standards in Occupations Code, Chapter 353. If federal and state laws establish conflicting standards for the dispensing of contact lenses, permit holders shall comply with federal law.

§128.9.Renewal of Permit.

(a) (No change.)

(b) When issued, a permit is valid for one year or two years, as determined by the department, commencing on the date of issuance of the initial permit.

(c) A permit holder must renew the permit annually or every two years . The renewal date of a permit shall be the last day of the month in which the permit was originally issued.

(d) - (i) (No change.)

(j) A person whose permit has been expired for 90 days or less may renew the permit by paying to the department a renewal fee that is equal to one and one-half times the normally required [ annual ] permit fee.

(k) A person whose permit has been expired for more than 90 days but less than one year may renew the permit by paying to the department a renewal fee that is equal to two times the normally required [ annual ] permit fee.

(l) - (p) (No change.)

§128.11.Filing Complaints and Complaint Investigations.

(a) - (c) (No change.)

(d) The department shall investigate the complaint [ and report the findings to the enforcement review committee (ERC) of the Bureau of Licensing and Compliance ]. If the department [ ERC ] determines that the complaint is not within the department's jurisdiction, the complainant will be notified. If warranted, the complaint may be referred to another governmental agency for review.

(e) The department [ ERC ] may determine [ recommend ] that the permit be revoked, suspended, placed on probation or that other appropriate action as authorized by law be taken.

(f) If the department [ ERC ] determines that there are insufficient grounds to support the complaint, the complaint shall be dismissed. Written notice of the dismissal will be provided to the permit holder or person against whom the complaint has been filed and the complainant.

§128.12.Grounds for Disciplinary Action.

(a) - (e) (No change.)

(f) The department may impose an emergency suspension for a violation of the Act or this chapter in accordance with the procedures established in Occupations Code, §353.2025.

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 April 15, 2004.

TRD-200402503

Susan K. Steeg

General Counsel

Texas Department of Health

Earliest possible date of adoption: May 30, 2004

For further information, please call: (512) 458-7236


25 TAC §128.5

(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 Health or in the Texas Register office, Room 245, James Earl Rudder Building, 1019 Brazos Street, Austin.)

The repeal is proposed under the Occupations Code, Chapter 353, which authorizes the Texas Board of Health (board) to adopt rules necessary to implement the section; and the Health and Safety Code, §12.001, which provides the board with the authority to adopt rules for the performance of every duty imposed by law on the board, the department, and the commissioner of health.

The repeal affects the Occupations Code, Title 3, Chapter 353.

§128.5.Sale or Delivery of Contact Lenses.

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 April 15, 2004.

TRD-200402504

Susan K. Steeg

General Counsel

Texas Department of Health

Earliest possible date of adoption: May 30, 2004

For further information, please call: (512) 458-7236


Chapter 129. OPTICIANS' REGISTRY

25 TAC §§129.4, 129.7 - 129.9, 129.11

The Texas Department of Health (department) proposes amendments to §§129.4, 129.7 - 129.9, and 129.11, concerning the voluntary registration of opticians.

The amendments are necessary to implement House Bill 2985, 78th Legislature, 2003, which added Occupations Code, Chapter 101, Subchapter G, which establishes the Office of Patient Protection within the Health Professions Council and requires additional fees to fund it; Senate Bill 1152, 78th Legislature, 2003, which amended Government Code, Chapter 2054, to require participation in Texas Online; House Bill 2292, 78th legislature, 2003, which revised Health and Safety Code, §§12.0111 and 12.0112, and requires two-year licenses effective January 1, 2005; and Senate Bill 161, 78th legislature, 2003, which amends Occupations Code, Chapter 352, relating to emergency suspension.

An amendment to §129.4 lists the additional fees that will be imposed, and clarifies that the renewal fee for a registration with a two year term will be twice the amount required for the current annual renewal. Amendments to §§129.7 and 129.8 further clarify that a registration may be issued for a one or a two year term. The amendment to §129.9 clarifies that the number of continuing education hours to be accrued for a registration with a two year term will be twice that of the current annual renewal, and add language to require that registrants report carryover continuing education hours in the renewal period in which they were earned. New language is added to amend §129.11 to reference the new statutory authority of the department to impose an emergency suspension.

Jim Zukowski, Ed. D., Chief, Bureau of Licensing and Compliance, has determined that for each year of the first five years the sections are in effect, there will be fiscal implications as a result of enforcing or administering the sections as proposed. The effect on state government will be an estimated increase in revenue to the state of approximately $1,000 per year. It is estimated that costs to the state to administer the new provisions will be equal to the estimated fee increases. No fiscal impact to local government is expected.

Dr. Zukowski has also determined that for each year of the first five years the proposed sections are in effect, the public benefit anticipated as a result of enforcing or administering the sections will be to assure the voluntary registration and regulation of opticians in Texas. There will be no effect on small businesses or micro-businesses because this registration as an optician is a voluntary registry. There are anticipated economic costs of up to $10 to persons who are required to comply with the sections as proposed, based on anticipated fees assessed for new applicants. There is no anticipated impact on local employment.

Comments on the proposal may be submitted to Yvonne Feinleib, Program Director, Texas Department of Health Opticians' Registry, 1100 West 49th Street, Austin, Texas 78756, (512) 834-6661. Comments will be accepted for 30 days following publication of the proposal in the Texas Register .

The amendments are proposed under the Occupations Code, Chapter 352, which authorizes the board to adopt procedural and substantive rules in accordance with the statute; and the Health and Safety Code, §12.001, which provides the Texas Board of Health (board) with the authority to adopt rules for the performance of every duty imposed by law on the board, the department, and the commissioner of health.

The amendments affect the Occupations Code, Title 3, Chapter 352.

§129.4.Fees.

(a) Schedule of fees. The fees are as follows:

(1)-(2) (No change.)

(3) registration renewal fee:

(A) for a registration issued for one year --$50;

(B) for a registration issued for two years--$100;

(4) dual registration renewal fee:

(A) for a registration issued for one year --$80;

(B) for a registration issued for two years--$160;

(5)-(7) (No change.)

(b)-(c) (No change.)

(d) For all applications and renewal applications, the department is authorized to collect fees to fund the Office of Patient Protection, Health Professions Council, as mandated by law.

(e) For all applications and renewal applications, the department is authorized to collect subscription and convenience fees, in amounts determined by the Texas Online Authority, to recover costs associated with application and renewal application processing through Texas Online.

§129.7.Issuance of Certificate of Registration.

(a)-(g) (No change.)

(h) Expiration of initial registration. The initial registration certificate is valid through the registrant's next birth month for a one or two year term, as determined by the department .

§129.8.Renewal of Registration.

(a) (No change.)

(b) General.

(1) When issued, a registration certificate is valid through the registrant's next birth month for a one or two year term, as determined by the department .

(2) A registrant must renew the registration certificate in order to remain registered [ annually ].

(3)-(7) (No change.)

(c)-(e) (No change.)

§129.9.Requirements for Continuing Education.

(a) Purpose. The purpose of this section is to establish the continuing education requirements a registrant shall meet [ annually ] to maintain registration. The requirements are intended to maintain and improve the quality of services provided to the public by registered spectacle dispensing opticians and registered contact lens dispensers. Continuing education credit includes programs beyond the basic preparation which are designed to promote and enrich knowledge, improve skills, and develop attitudes for the enhancement of dispensing opticians, thus improving health care to the public. The Texas Department of Health (department) assumes dispensing opticians will maintain the high standards of the profession in selecting quality educational programs to fulfill the continuing education requirements.

(b) Number of hours required. Proof of having earned five contact hours of continuing education credit in each area for which the registrant is renewing shall be required at the time of renewal for each registration issued for a one year term, or proof of having earned ten contact hours of continuing education credit in each area for which the registrant is renewing shall be required at the time of renewal for each registration issued for a two year term . A contact hour is 50 minutes.

(1) The hours must have been completed within 12 months prior to the date of expiration of a [ the ] registration issued for a one year term, or within 24 months prior to the date of expiration of a registration issued for a two year term .

(2) (No change.)

(3) If applying for dual registration renewal the applicant must have a total of 10 contact hours of continuing education for a registration issued for a one year term, or 20 contact hours of continuing education for a registration issued for a two year term. Half of the [ Five ] contact hours must be offered or approved by the American Board of Opticianry and half of the [ five ] contact hours must be offered or approved by the National Contact Lens Examiners.

(c)-(d) (No change.)

(e) Accrual carryover. Earned continuing education hours exceeding the minimum requirements in a previous renewal period shall first be applied to the continuing education requirements for the current renewal period. A maximum of five additional clock hours may be accrued during a registration period to be applied to the next consecutive renewal period. A maximum of 10 additional clock hours may be accrued for dual registrants during a registration period to be applied to the next consecutive renewal period. To be eligible for carryover, all hours earned must be reported to the department in the previous renewal period.

§129.11.Violations, Complaints, Investigation of Complaints, and Disciplinary Actions.

(a)-(c) (No change.)

(d) Investigation of complaints.

(1)-(4) (No change.)

(5) If the administrator determines that there are sufficient grounds to support the complaint, the administrator may propose to deny, suspend, revoke, probate, or not renew a registration [ with the concurrence or ratification of the Complaints Subcommittee, if such subcommittee exists ].

(6) (No change.)

(e)-(f) (No change.)

(g) The department may impose an emergency suspension for a violation of the Act or this chapter in accordance with the procedures established in Occupations Code, §352.254.

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 April 15, 2004.

TRD-200402507

Susan K. Steeg

General Counsel

Texas Department of Health

Earliest possible date of adoption: May 30, 2004

For further information, please call: (512) 458-7236


Chapter 130. CODE ENFORCEMENT REGISTRY

25 TAC §§130.4, 130.11, 130.12, 130.15, 130.20

The Texas Department of Health (department) proposes amendments to §§130.4, 130.11, 130.12, 130.15, and 130.20, concerning the registration of code enforcement officers.

The amendments are necessary to implement House Bill 2985, 78th Legislature, 2003, which added Occupations Code, Chapter 101, Subchapter G, which establishes the Office of Patient Protection within the Health Professions Council and requires additional fees to fund it; Senate Bill 1152, 78th Legislature, 2003, which amended Government Code, Chapter 2054, to require participation in Texas Online; House Bill 2292, 78th Legislature, 2003, which revised Health and Safety Code, §§12.0111 and 12.0112, and requires two-year licenses effective January 1, 2005; and Senate Bill 161, 78th Legislature, 2003, which amends Occupations Code, Chapter 1952, relating to administrative penalties.

An amendment to §130.4 lists the additional fees that will be imposed, and clarifies that the renewal fee for a registration with a two year term will be twice the amount required for the current annual renewal. Amendments to §§130.11 and 130.12 further clarify that a registration may be issued for a one or a two year term. New language is added to amend §130.15 to reference the new statutory authority of the department to impose administrative penalties. The amendment to §130.20 clarifies that the number of continuing education hours to be accrued for a registration with a two year term will be twice that of the current annual renewal.

Jim Zukowski, Ed.D., Chief, Bureau of Licensing and Compliance, has determined that for each year of the first five years the sections are in effect, there will be fiscal implications as a result of enforcing or administering the sections as proposed. The effect on state government will be an estimated increase in revenue to the state of approximately $7,000 per year. It is estimated that costs to the state to administer the new provisions will be equal to the estimated fee increases. No fiscal impact to local government is expected.

Dr. Zukowski has also determined that for each year of the first five years the sections are in effect, the public benefit anticipated as a result of enforcing or administering the proposed sections will be to assure the registration and regulation of code enforcement officers in Texas. There will be no effect on small businesses or micro-businesses because this registration as a code enforcement officer is a voluntary registry. There are anticipated economic costs of up to $10 to persons who are required to comply with the sections as proposed, based on anticipated fees assessed for new applicants. There is no anticipated impact on local employment.

Comments on the proposal may be submitted to Yvonne Feinleib, Program Director, Texas Department of Health Code Enforcement Officer Registration Program, 1100 West 49th Street, Austin, Texas 78756, (512) 834-4512. Comments will be accepted for 30 days following publication of the proposal in the Texas Register .

The amendments are proposed under the Occupations Code, Chapter 1952, which authorizes the Texas Board of Health (board) to adopt standards, education requirements, and fees by rule for the registration of code enforcement officers; and the Health and Safety Code, §12.001, which provides the board with the authority to adopt rules for the performance of every duty imposed by law on the board, the department, and the commissioner of health.

The amendments affect the Occupations Code, Title 12, Chapter 1952.

§130.4.Fees.

(a) The schedule of fees is as follows:

(1) (No change.)

(2) renewal fee : [ --$50; ]

(A) for a registration issued for a one year term--$50; and

(B) for a registration issued for a two year term--$100;

(3)-(7) (No change.)

(b)-(c) (No change.)

(d) For all applications and renewal applications, the department is authorized to collect fees to fund the Office of Patient Protection, Health Professions Council, as mandated by law.

(e) For all applications and renewal applications, the department is authorized to collect subscription and convenience fees, in amounts determined by the Texas Online Authority, to recover costs associated with application and renewal application processing through Texas Online.

§130.11.Code Enforcement Officer Registration.

(a) (No change.)

(b) Issuance of registrations.

(1) (No change.)

(2) A certificate of registration issued under this Act is valid for one year or for two years, as determined by the department, and may be renewed as provided in §130.12 of this title (relating to Code Enforcement Registration Renewal) [ annually on payment of the required renewal fee ].

(3) (No change.)

(c)-(d) (No change.)

§130.12.Code Enforcement Registration Renewal.

(a) (No change.)

(b) General.

(1) A registrant must renew the registration annually or every two years .

(2)-(5) (No change.)

(c)-(f) (No change.)

§130.15.Violations, Complaints, Investigations, and Disciplinary Actions.

(a)-(f) (No change.)

(g) The department may assess administrative penalties for a violation of the Act or this chapter in accordance with the procedures established in Occupations Code, Chapter 1952, Subchapter F.

§130.20.Continuing Education.

(a)-(b) (No change.)

(c) Each registered code enforcement officer and code enforcement officer in training must obtain and show proof of not less than six continuing education hours as set forth in this section within the twelve months preceding renewal of a [ their ] registration issued for one year, or not less than 12 continuing education hours as set forth in this section within the 24 months preceding renewal of a registration issued for two years , at least one hour of which must be in legal/legislative issues as provided in subsection (j)(12) of this section.

(d)-(q) (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 April 15, 2004.

TRD-200402505

Susan K. Steeg

General Counsel

Texas Department of Health

Earliest possible date of adoption: May 30, 2004

For further information, please call: (512) 458-7236


Chapter 157. EMERGENCY MEDICAL CARE

The Texas Department of Health (department) proposes amendments to §157.25, concerning Out of Hospital Do Not Resuscitate Orders and §157.41, concerning Automated External Defibrillators; repeal of §157.130, concerning the emergency medical services and trauma care system account; and new §157.5 concerning rule exception request for Emergency Medical Services (EMS) personnel and applicants for EMS certification or licensure; new §157.130, concerning the emergency medical services and trauma care system account and emergency medical services, trauma facilities, and trauma care system fund; and new §157.131, concerning the designated trauma facility and emergency medical services account. Specifically, the sections cover out of hospital Do Not Resuscitate Orders, minimum standards for Automated External Defibrillator training, rule exceptions requests for EMS personnel and applicants for EMS certification or licensure and funding formulas/eligibility criteria for the emergency medical services and trauma care system account and emergency medical services, trauma facilities, and trauma care system fund and the designated trauma facility and emergency medical services account.

Government Code, §2001.039, requires that each state agency review and consider for readoption each rule adopted by that agency pursuant to the Government Code, Chapter 2001 (Administrative Procedures Act). The sections have been reviewed and the department has determined that reasons for adopting the sections continue to exist; however, revisions to the sections are necessary and described in this preamble.

The department published a Notice of Intention to review and consider for readoption, revision, or repeal Chapter 157, Subchapter B, Emergency Medical Services Provider Licenses, §157.25; Subchapter C. Emergency Medical Services Training and Course Approval, §157.41 and Subchapter G, Emergency Medical Services Trauma Systems, §157.130 in the September 12, 2003, issue of the Texas Register (28 TexReg 8013). There were no comments received due to the publication of notice.

Kathryn C. Perkins, Bureau Chief of the Bureau of Emergency Management, has determined that for each year of the first five years the sections will be in effect, there will be fiscal implications to state and local governments as a result of enforcing or administering the sections as proposed concerning the EMS/Trauma System. The impact is related to the projected increased revenue from the newly created accounts authorized by Health and Safety Code, §773.006 and Health and Safety Code, §780.003. The department anticipates that the proposed new §§157.130 and 157.131 will increase funding available to licensed EMS providers, department designated trauma facilities and department recognized regional advisory councils thus strengthening the EMS/Trauma System. There is an anticipated cost associated with the proposed new rules resulting from the need to provide technical assistance, contract development and contract management to the above entities regarding the availability and distribution of funds from the newly created accounts. One percent of the funds appropriated from the designated trauma facility and the emergency medical services account are dedicated to the department. Additionally, three percent of the funds appropriated from the emergency medical services trauma care system account and emergency medical services, trauma facilities, and trauma care system fund are dedicated to the department.

The fiscal note outlined on May 19, 2003, from John Keel, Director, Legislative Budget Board, projected new revenue to the designated trauma facility and the emergency medical services account will be as follows: Fiscal Year (FY) 2004, $100,938,603; FY 2005, $220,363,936; FY2006, $229,385,665; and FY 2007, $353,135,665. Appropriation Rider 68 appropriated $59,338,603 in FY 2004 and $112,613, 914 in FY 2005 to the department.

The fiscal note outlined on May 4, 2003, from John Keel, Director, Legislative Budget Board, projected new revenue to the emergency medical services and trauma care system account and emergency medical services, trauma facilities, and trauma care system fund will be as follows: Fiscal Year (FY) 2004, $3,082,000; FY 2005, $4,709,000; FY2006, $4,798,0000; and FY 2007, $4,890,000; and FY08, $4,982,000.

Ms. Perkins has also determined that for each year of the first five years the proposed sections are in effect the public health benefit anticipated as a result of administering the sections will be a strengthening of the EMS/Trauma System due to increased funding and an improvement in understanding of and clarification of the Do Not Resuscitate form for out of hospital providers and healthcare practitioners utilizing the form. The proposed sections concerning rule exceptions requests for EMS personnel and applicants for EMS certification or licensure will cause a fiscal implication on small business, micro-business, and to persons who are required to comply with the sections proposed. A $30 nonrefundable application fee will be required for entities/personnel that choose to request an exception to rule. The proposed sections concerning Out of Hospital Do Not Resuscitate Orders, minimum standards for Automated External Defibrillator training and EMS/Trauma System Funding will cause no fiscal implication on small business, micro-business, and to persons who are required to comply with the sections proposed. There are no anticipated economic costs to person(s)/entities that are required to comply with the sections as proposed. There is no anticipated effect on local employment.

Comments on the proposal may be submitted to Kathryn C. Perkins, Chief, Bureau of Emergency Management, Texas Department of Health, 1100 West 49th Street, Austin, Texas 78756, telephone (512) 834-6700, or kathy.perkins@tdh.state.tx.us. Comments will be accepted for 30 days after publication of the proposal in the Texas Register .

Subchapter A. EMERGENCY MEDICAL SERVICES-PART A

25 TAC §157.5

The new section is proposed under the Texas Health and Safety Code, Chapter 773, Emergency Medical Services, which provides the department with the authority to adopt rules to implement the Emergency Medical Services Act; and §12.001, which provides the Texas Board of Health with the authority to adopt rules for its procedure and for the performance of each duty imposed by law on the board, the department or the commissioner of health.

The new section affects Health and Safety Code, Chapter 166, 773, 779 and 780. The review of the rule implements Government Code, §2001.039.

§157.5.Rule Exemption Requests.

(a) EMS personnel and applicants for EMS certification or licensure may request an exemption to rules of this title by:

(1) submitting an exemption request application form with a nonrefundable fee of $30, if applicable, in addition to any other applicable applications and fees required by this title;

(2) providing a letter of explanation and other documented evidence which establishes that patient care will not be diminished, or the health and safety of the public affected, if the exemption is approved;

(3) providing a signed and dated written statement of support from the medical director of the licensed emergency medical services (EMS) provider or registered first responder organization with whom the applicant is affiliated or will be affiliated; and

(4) providing a written plan under which the applicable requirement will be met as soon as possible.

(b) In determining whether to grant the exemption, the bureau chief shall take into consideration the best interests of the people in a rural area who are served by the licensed EMS provider or registered first responder organization with whom the applicant is affiliated or will be affiliated, if approved. For the purposes of this section, a rural area is defined to be:

(1) a county of 50,000 or less; or

(2) a sparsely populated area in a county with a population of more than 50,000, as determined by the Federal Office of Rural Health Policy designation (of rural areas within metropolitan areas).

(c) If the request is approved, an exemption may be granted temporarily. The applicant will be notified by the bureau chief, in writing, and the notification shall include:

(1) the date the exemption begins and expires;

(2) an explicit statement which specifically describes the rule requirements exempted and any related conditions which must be met for the exemption to apply or continue to apply.

(d) This exemption process may be utilized to temporarily allow a person in a rural area, described in subsection (b)(1) and (2) of this section, to practice at a higher level prior to receiving the higher level of certification.

(1) To apply to receive this allowance for up to two months after course completion, the applicant must:

(A) meet the requirements of subsection (a)(1)-(4) of this section;

(B) be currently certified by the department as an ECA, EMT, or EMT-Intermediate; and

(C) submit a course completion certificate for the higher level of training.

(2) If granted through written approval from the bureau chief, the candidate may practice at the higher level only if accompanied by an individual who is certified or licensed by the department at the same or a higher level of certification or licensure.

(3) This allowance shall be automatically and immediately forfeited upon notification of the candidate's failure of the National Registry written or practical examination.

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 April 16, 2004.

TRD-200402508

Susan K. Steeg

General Counsel

Texas Department of Health

Earliest possible date of adoption: May 30, 2004

For further information, please call: (512) 458-7236


Subchapter B. EMERGENCY MEDICAL SERVICES PROVIDER LICENSES

25 TAC §157.25

The amendment is proposed under the Texas Health and Safety Code, Chapter 773, Emergency Medical Services, which provides the department with the authority to adopt rules to implement the Emergency Medical Services Act; and §12.001, which provides the Texas Board of Health with the authority to adopt rules for its procedure and for the performance of each duty imposed by law on the board, the department or the commissioner of health.

The amendment affects Health and Safety Code, Chapter 166, 773, 779 and 780. The review of the rule implements Government Code, §2001.039.

§157.25.Out-of-Hospital Do Not Resuscitate (DNR) Order.

(a) - (c) (No change.)

(d) Recordkeeping. Records shall be maintained on each incident in which an out-of-hospital DNR order or DNR identification device is encountered by responding healthcare professionals, and the number of cases where there is an on-site revocation of the DNR order shall be recorded.

(1) (No change.)

(2) These records must be maintained and shall meet records retention requirements for each health care profession.

(3) [ (2) ] If the patient is transported, the original DNR order or a copy of the original order will be kept with the patient.

(4) [ (3) ] Copies of the original DNR order may be put on file with concerned parties, and the original order shall remain in the possession of the patient, a legal guardian, or the healthcare facility responsible for the patient's care.

[ (4) At the time of relicensure, the out-of-hospital provider shall submit a report to the Bureau of Emergency Management with the following information:]

[ (A) number of times personnel have been presented with DNR documentation;]

[ (B) number of times there was a problem and the DNR order could not be honored; and]

[ (C) any problems that were encountered using the standardized form.]

(e) - (g) (No change.)

(h) DNR Form. The Bureau of Emergency Management or their appointees shall furnish DNR forms to physicians, clinics, hospitals, nursing homes, hospices and home health agencies throughout the state upon request.

(1) (No change.)

(2) The form shall be 8-1/2 inches by 11 inches, printed front and back, and in the format specified by the board as follows.

Figure: 25 TAC §157.25(h)(2) (.pdf)

[Figure: 25 TAC §157.25(h)(2)]

(i) (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 April 16, 2004.

TRD-200402509

Susan K. Steeg

General Counsel

Texas Department of Health

Earliest possible date of adoption: May 30, 2004

For further information, please call: (512) 458-7236


Subchapter C. EMERGENCY MEDICAL SERVICES TRAINING AND COURSE APPROVAL

25 TAC §157.41

The amendment is proposed under the Texas Health and Safety Code, Chapter 773, Emergency Medical Services, which provides the department with the authority to adopt rules to implement the Emergency Medical Services Act; and §12.001, which provides the Texas Board of Health with the authority to adopt rules for its procedure and for the performance of each duty imposed by law on the board, the department or the commissioner of health.

The amendment affects Health and Safety Code, Chapter 166, 773, 779 and 780. The review of the rule implements Government Code, §2001.039.

§157.41.Automated External Defibrillators.

(a) - (c) (No change.)

(d) Training required. A person acquiring and/or using an AED shall successfully complete a training course in CPR and AED operation in accordance with the guidelines established by the device's manufacturer and as approved by the American Heart Association, the American Red Cross, other nationally recognized associations, or the medical director of the local emergency medical services provider. The person shall maintain that training in accordance with the guidelines established by the training association.

(e) Notification required. A person or entity that [ who ] acquires an AED shall immediately notify all local emergency medical service providers of the existence, physical location and type of device.

(f) (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 April 16, 2004.

TRD-200402510

Susan K. Steeg

General Counsel

Texas Department of Health

Earliest possible date of adoption: May 30, 2004

For further information, please call: (512) 458-7236


Subchapter G. EMERGENCY MEDICAL SERVICES TRAUMA SYSTEMS

25 TAC §157.130

(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 Health or in the Texas Register office, Room 245, James Earl Rudder Building, 1019 Brazos Street, Austin.)

The repeal is proposed under the Texas Health and Safety Code, Chapter 773, Emergency Medical Services, which provides the department with the authority to adopt rules to implement the Emergency Medical Services Act; and §12.001, which provides the Texas Board of Health with the authority to adopt rules for its procedure and for the performance of each duty imposed by law on the board, the department or the commissioner of health.

The repeal affects Health and Safety Code, Chapter 166, 773, 779 and 780. The review of the rule implements Government Code, §2001.039.

§157.130.Emergency Medical Services and Trauma Care System Account.

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 April 16, 2004.

TRD-200402511

Susan K. Steeg

General Counsel

Texas Department of Health

Earliest possible date of adoption: May 30, 2004

For further information, please call: (512) 458-7236


25 TAC §157.130, §157.131

The new sections are proposed under the Texas Health and Safety Code, Chapter 773, Emergency Medical Services, which provides the department with the authority to adopt rules to implement the Emergency Medical Services Act; and §12.001, which provides the Texas Board of Health with the authority to adopt rules for its procedure and for the performance of each duty imposed by law on the board, the department or the commissioner of health.

The new sections affect Health and Safety Code, Chapter 166, 773, 779 and 780. The review of the rules implements Government Code, §2001.039.

§157.130.Emergency Medical Services and Trauma Care System Account and Emergency Medical Services, Trauma Facilities, and Trauma Care System Fund.

(a) Definitions. The following words and terms, when used in this section, shall have the following meanings, unless the context clearly indicates otherwise.

(1) Extraordinary emergency--An event or situation which may disrupt the services of an EMS/trauma system.

(2) Rural county--A county with a population of less than 50,000 based on the latest official federal census population figures.

(3) Urban county--A county with a population of 50,000 or more based on the latest official federal census population figures.

(4) Emergency transfer--Any immediate transfer of an emergent or unstable patient, ordered by a licensed physician, from a health care facility to a health care facility which has the capability of providing a higher level of care or of providing a specialized type of care not available at the transferring facility.

(5) Trauma care--Care provided to patients who underwent treatment specified in at least one of the following ICD-9 (International Classification of Diseases, 9th Revision, of the National Center of Health Statistics) codes: between 800.00 and 959.9, including 940.0-949.0 (burns), excluding 905.0-909.0 (late effects of injuries), 910.0-924.0 (blisters, contusions, abrasions, and insect bites), 930.0-939.0 (foreign bodies), and who underwent an operative intervention as defined in paragraph (9) of this subsection or was admitted as an inpatient for greater than 23-hours or who died after receiving any emergency department evaluation or treatment or was dead on arrival to the facility or who transferred into or out of the hospital.

(6) Uncompensated trauma care--The sum of "charity care" and "bad debt" resulting from trauma care as defined in paragraph (5) of this subsection after due diligence to collect. Contractual adjustments in reimbursement for trauma services based upon an agreement with a payor (to include but not limited to Medicaid, Medicare, Children's Health Insurance Program (CHIP), etc.) is not uncompensated trauma care.

(7) Charity care--The unreimbursed cost to a hospital of providing health care services on an inpatient or emergency department basis to a person classified by the hospital as "financially indigent" or "medically indigent".

(A) Financially indigent--An uninsured or underinsured person who is accepted for care with no obligation or a discounted obligation to pay for the services rendered based on the hospital's eligibility system.

(B) Medically indigent--A person whose medical or hospital bills after payment by third-party payors (to include but not limited to Medicaid, Medicare, CHIP, etc.) exceed a specified percentage of the patient's annual gross income, determined in accordance with the hospital's eligibility system, and the person is financially unable to pay the remaining bill.

(8) Bad debt--The unreimbursed cost to a hospital of providing health care services on an inpatient or emergency department basis to a person who is financially unable to pay, in whole or in part, for the services rendered and whose account has been classified as bad debt based upon the hospital's bad debt policy. A hospital's bad debt policy should be in accordance with generally accepted accounting principles.

(9) Operative intervention--Any surgical procedure resulting from a patient being taken directly from the emergency department to an operating suite regardless of whether the patient was admitted to the hospital or discharged from the hospital.

(10) Calculation of the costs of uncompensated trauma care--For the purposes of this section, a hospital will calculate its total costs of uncompensated trauma care by summing its charges related to uncompensated trauma care as defined in paragraph (6) of this subsection, then applying the cost to charge ratio defined in paragraph (12) of this subsection and derived in accordance with generally accepted accounting principles. The calculation of cost to charge ratios shall be based on the most recently completed and audited prior fiscal year of the hospital or hospital system.

(11) County of licensure--The County within which lies the location of the business mailing address of a licensed ambulance provider, as indicated by the provider on the application for licensure form that it filed with the department.

(12) Cost-to-charge ratio--Hospital's overall cost-to-charge ratio, as determined from its Medicaid cost report it submitted for its fiscal year ending in the previous calendar year. The latest available Medicaid cost report will be used in the absence of the cost report for the hospital fiscal year ending in the previous calendar year.

(b) Reserve. On September 1 of each year, there shall be a reserve of $500,000 in the emergency medical services (EMS) and trauma care system account and the emergency medical services, trauma facilities, and trauma care system fund (accounts) for extraordinary emergencies. During the fiscal year, distributions may be made from the reserve by the commissioner of health based on requests which demonstrate need and impact on the EMS and trauma care system (system). Proposals not immediately recommended for funding will be reconsidered at the end of each fiscal year, if funding is available, and need are still present.

(c) Allotments. The EMS allotment shall be 50%, the trauma service area (TSA) allotment shall be not more than 20%, and the uncompensated care allotment shall be at least 27% of the funds remaining from the accounts after any amount necessary to maintain the extraordinary emergency reserve of $500,000 has been deducted.

(1) Allotment Determination. Each year, the department shall determine:

(A) eligibility of all EMS providers, regional advisory councils (RACs), and trauma facilities;

(B) the amount of the TSA allotment, the EMS allotment, and the uncompensated care allotment;

(C) each county's share of the EMS allotment for eligible recipients in the county;

(D) each RAC's share of the TSA allotment; and

(E) each designated trauma facility's share of the uncompensated care allotment.

(2) EMS Allotment. The department shall contract with each eligible RAC to distribute the county shares of the EMS allotment to eligible EMS providers based within counties which are aligned within the relevant RAC. Prior to distribution of the county shares to eligible providers, the RAC shall submit a distribution proposal, approved by the RAC's voting membership, to the department for approval.

(A) The county portion of the EMS allotment shall be distributed directly to eligible recipients without any reduction in the total amount allocated by the department and shall be used as an addition to current county EMS funding of eligible recipients, not as a replacement.

(B) The department shall evaluate each RAC's distribution plan based on the following:

(i) fair distribution process to all eligible providers, taking into account all eligible providers participating in contiguous TSAs;

(ii) needs of the EMS providers; and

(iii) evidence of consensus opinion for eligible entities.

(C) A RAC opting to use a distribution plan from the previous fiscal year shall submit, to the department, a letter or email of intent to do so.

(D) Eligible EMS providers may opt to pool funds or contribute funds for a specified RAC purpose.

(3) TSA Allotment. The department shall contract with each eligible RAC to distribute the TSA allotment. Prior to distribution of the TSA allotment, the RAC shall submit a budget proposal to the department for approval. The department shall evaluate each RAC's budget according to the following:

(A) budget reflects all funds received by the RAC, including funds not expended in the previous fiscal year;

(B) budget contains no ineligible expenses;

(C) appropriate mechanism is used by RAC for budgetary planning; and

(D) program areas receiving funding are identified by budget categories.

(4) Uncompensated Care Allotment. The department shall contract with each eligible RAC to distribute shares of the uncompensated care allotment to eligible designated trauma facilities within the RAC's TSA. Prior to distribution of the uncompensated care allotment, the RAC shall submit a distribution proposal, approved by the RAC's voting membership, to the department for approval.

(A) The department shall evaluate each RAC's distribution plan based on the following:

(i) fair distribution process to all eligible providers;

(ii) needs of designated trauma facilities; and

(iii) evidence of consensus opinion from eligible entities.

(B) A RAC opting to use a distribution plan from the previous fiscal year shall submit, to the department, a letter or email of intent to do so.

(C) Eligible designated hospitals may opt to pool funds or contribute funds for a specified RAC purpose for novel or innovative projects.

(d) Eligibility requirements. To be eligible for funding from the accounts, all potential recipients (EMS Providers, RACs, Registered First Responder Organizations and hospitals) must maintain active involvement in regional system development. Potential recipients must also meet requirements for reports of expenditures from the previous year and planning for use of the funding in the upcoming year.

(1) Extraordinary Emergency Funding. To be eligible to receive extraordinary emergency funding, an entity must:

(A) be a licensed EMS provider, a licensed general hospital, or a registered first responder organization;

(B) submit to the department a signed written request, containing the entity name, contact information, amount of funding requested, and a description of the extraordinary emergency; and

(C) timely submit a signed and fully completed extraordinary emergency information checklist (on the department's form) to the department.

(2) EMS Allotment. To be eligible for funding from the EMS allotment, an EMS provider must meet the following requirements:

(A) maintain provider licensure as described in §157.11 of this title (relating to Requirements for An EMS Provider License) and provide emergency medical services and/or emergency transfers;

(B) demonstrate utilization of the RAC regional protocols regarding patient destination and transport in all TSAs in which they operate (verified by each RAC);

(C) demonstrate active participation in the regional system performance improvement (PI) program in all TSAs in which they operate (verified by each RAC);

(D) if an EMS provider is licensed in a county or contracted to provide emergency medical services in a county that is contiguous with a neighboring TSA, it must participate on at least one RAC of the TSAs:

(i) participation on both RACs is encouraged;

(ii) RAC participation shall follow actual patient referral patterns;

(iii) an EMS provider, contracted to provide emergency medical services within a county of any one TSA and whose county of licensure is another county not in or contiguous with that TSA, must be an active member of the RAC for the TSA of their contracted service area and meet that RAC's definition of participation and requirements listed in subparagraph (E)(i)-(vi) of this paragraph; and

(iv) it is the responsibility of an EMS provider to contact each RAC in which it operates to ensure knowledge of the provider's presence and potential eligibility for funding from the EMS allotment related to that RAC's TSA;

(E) if an EMS provider is serving any county beyond its county of licensure it must provide to the department evidence of a contract or letter of agreement with each additional county government or taxing authority in which service is provided:

(i) inter-facility transfer letters of agreement and/or contracts, as well as mutual aid letters of agreement and/or contracts, do not meet this requirement;

(ii) contracts or letters of agreement must be dated and submitted to the department on or before August 31 of the respective year, and be effective more than six months of the upcoming fiscal year;

(iii) effective dates of the contracts or letters of agreement should be provided;

(iv) EMS providers with contracts or letters of agreement on file with the department which include contract service dates that meet the required time period need not resubmit.

(v) EMS providers are responsible for assuring that all necessary portions of their contracts and letters of agreement have been received by the department; and

(vi) air ambulance providers must meet the same requirements as ground transport EMS providers to be eligible to receive funds from a specific county other than the county of licensure; and

(F) if an EMS provider is licensed in a particular county and has a contract (with a county government or taxing authority) for a service area which is a geopolitical subdivision (examples listed below) whose boundary lines cross multiple county lines, it will be considered eligible for the 911 EMS Allotment for all counties overlapped by that geopolitical subdivision's boundary lines. A contract with every county that composes the geopolitical subdivision is not necessary. And, the eligibility of EMS providers, whose county of licensure is in a geopolitical subdivision other than those listed in clauses (i) - (vi) of this subparagraph, will be evaluated on a case-by-case basis.

(i) Municipalities.

(ii) School districts.

(iii) Emergency service districts (ESDs).

(iv) Hospital districts.

(v) Utility districts.

(vi) Prison districts.

(3) RAC Allotment. To be eligible for funding from the RAC allotment, a RAC must:

(A) be officially recognized by the department as described in §157.123 of this title (relating to Regional Emergency Medical Services/Trauma Systems);

(B) be incorporated as an entity that is exempt from federal income tax under §501(a) of the United States Internal Revenue Code of 1986, and its subsequent amendments, by being listed as an exempt organization under §501(c)(3) of the code;

(C) submit documentation of ongoing system development activity and future planning;

(D) have demonstrated that a regional system performance improvement (PI) process is ongoing by submitting to the department the following:

(i) lists of committee meeting dates and attendance rosters for the RAC'S most recent fiscal year;

(ii) committee membership rosters which included each member's organization or constituency; and

(iii) lists of issues being reviewed in the system performance improvement meetings; and

(E) submit all required EMS allocation eligibility items addressed in paragraph (2)(B)-(C) of this subsection.

(4) To be eligible to distribute the EMS, Uncompensated Care and TSA allotments, a RAC must be incorporated as an entity that is exempt from federal income tax under §501(a) of the Internal Revenue Code of 1986, and its subsequent amendments, by being listed as an exempt organization under §501(c)(3) of the code.

(5) Uncompensated Care Allotment. To be eligible for funding from the Uncompensated Care allotment, a hospital must be a department designated trauma facility or a Department of Defense hospital that is a department designated trauma facility.

(A) To receive funding from the Uncompensated Care allotment, an application must be submitted within the time frame specified by the department and include the following:

(i) name of facility;

(ii) location of facility including mailing address, city and county; and

(iii) Texas Provider Identifier (TPI number) or accepted federal identification number.

(B) The application must be signed and sworn to before a Texas Notary Public by the chief financial officer, chief executive officer and the chairman of the facility's board of directors.

(C) A copy of the application shall be distributed by Level I, II, or III facilities to the trauma medical director and Level IV facilities to the physician director.

(D) The department may opt to use data from applications submitted by qualified hospitals in accordance with §157.131(d)(5) (relating to Designated Trauma Facility and Emergency Medical Services Account) for the distribution of funds outlined in subsection (e)(3) of this section.

(E) Additional information may be requested at the department's discretion.

(e) Calculation Methods. Calculation of county shares of the EMS allotment, the RAC shares of the TSA allotment, and the TSA's share of the uncompensated care allotment.

(1) EMS allotment.

(A) Counties will be classified as urban or rural based on the latest official federal census population figures.

(B) The EMS allotment will be derived by adjusting the weight of the statutory criteria in such a fashion that, in so far as possible, 40% of the funds are allocated to urban counties and 60% are allocated to rural counties.

(C) An individual county's share of the EMS allotment shall be based on its geographic size, population, and number of emergency health care runs multiplied by adjustment factors, determined by the department, so the distribution approximates the required percentages to urban and rural counties.

(D) The formula shall be: ((the county's population multiplied by an adjustment factor) plus (the county's geographic size multiplied by an adjustment factor) plus (the county's total emergency health care runs multiplied by an adjustment factor) divided by 3)) multiplied by (the total EMS allocation). The adjustment factors will be manipulated so that the distribution approximates the required percentages to urban and rural counties. Total emergency health care runs shall be the number of emergency runs electronically transmitted to the department in a given calendar year by EMS providers.

(2) TSA allotment.

(A) A RAC's share of the TSA allotment shall be based on its relative geographic size, population, and trauma care provided as compared to all other TSAs.

(B) The formula shall be: ((the TSA's percentage of the state's total population) plus (the TSA's percentage of the state's total geographic size) plus (the TSA's percentage of the state's total trauma care) divided by 3)) multiplied by (the total TSA allotment). Total trauma care shall be the number of trauma patient records electronically transmitted to the department in a given calendar year by EMS providers and hospitals.

(3) Uncompensated care allotment.

(A) The uncompensated care allotment shall be based on a TSA's relative geographic size, population, and a TSA's percentage of the state's total reported uncompensated trauma care.

(B) The formula shall be: ((the TSA's percentage of the state's total population) plus (the TSA's percentage of the state's total geographic size) plus (the TSA's percentage of the total reported cost of uncompensated trauma care by qualified hospitals that year) divided by 3) multiplied by (the total uncompensated care allotment).

(C) For purposes of subparagraphs (A)-(B) of this paragraph, the reporting period of a facility's uncompensated trauma care shall apply to costs incurred during the preceding calendar year.

(f) Loss of funding eligibility. If the department finds that an EMS provider, RAC, or trauma facility has violated the Health and Safety Code, §773.122, or fails to comply with this section, the department may withhold account monies for a period of one to three years depending upon the seriousness of the infraction.

§157.131.Designated Trauma Facility and Emergency Medical Services Account.

(a) Definitions. The following words and terms, when used in this section, shall have the following meanings, unless the context clearly indicates otherwise.

(1) Extraordinary emergency--An event or situation which may disrupt the services of an EMS/trauma system.

(2) Rural county--A county with a population of less than 50,000 based on the latest official federal census population figures.

(3) Urban county--A county with a population of 50,000 or more based on the latest official federal census population figures.

(4) Emergency transfer--Any immediate transfer of an emergent or unstable patient, ordered by a licensed physician, from a health care facility to a health care facility which has the capability of providing a higher level of care or of providing a specialized type of care not available at the transferring facility.

(5) Trauma care--Care provided to patients who underwent treatment specified in at least one of the following ICD-9 (International Classification of Diseases, 9th Revision, of the National Center of Health Statistics) codes: between 800.00 and 959.9, including 940.0-949.0 (burns), excluding 905.0-909.0 (late effects of injuries), 910.0-924.0 (blisters, contusions, abrasions, and insect bites), 930.0-939.0 (foreign bodies), and who underwent an operative intervention as defined in paragraph (9) of this subsection or was admitted as an inpatient for greater than 23-hours or who died after receiving any emergency department evaluation or treatment or was dead on arrival to the facility or who transferred into or out of the hospital.

(6) Uncompensated trauma care--The sum of "charity care" and "bad debt" resulting from trauma care as defined in (a)(5) of this section after due diligence to collect. Contractual adjustments in reimbursement for trauma services based upon an agreement with a payor (to include but not limited to Medicaid, Medicare, Children's Health Insurance Program (CHIP), etc.) is not uncompensated trauma care.

(7) Charity care--The unreimbursed cost to a hospital of providing health care services on an inpatient or emergency department basis to a person classified by the hospital as "financially indigent" or "medically indigent".

(A) Financially indigent--An uninsured or underinsured person who is accepted for care with no obligation or a discounted obligation to pay for the services rendered based on the hospital's eligibility system.

(B) Medically indigent--A person whose medical or hospital bills after payment by third-party payors (to include but not limited to Medicaid, Medicare, CHIP, etc.) exceed a specified percentage of the patient's annual gross income, determined in accordance with the hospital's eligibility system, and the person is financially unable to pay the remaining bill.

(8) Bad debt--The unreimbursed cost to a hospital of providing health care services on an inpatient or emergency department basis to a person who is financially unable to pay, in whole or in part, for the services rendered and whose account has been classified as bad debt based upon the hospital's bad debt policy. A hospital's bad debt policy should be in accordance with generally accepted accounting principles.

(9) Operative intervention--Any surgical procedure resulting from a patient being taken directly from the emergency department to an operating suite regardless of whether the patient was admitted to the hospital or discharged from the hospital.

(10) Active pursuit of department designation as a trauma facility--means that by December 31, 2003, a licensed hospital, applying for a designation from the department as a trauma facility, must have submitted:

(A) a complete application to the department's trauma facility designation program or appropriate agency for trauma verification;

(B) evidence of participation in Trauma Services Area (TSA) Regional Advisory Council (RAC) initiatives;

(C) evidence of a hospital trauma performance improvement committee; and

(D) data to the department's EMS/Trauma Registry.

(11) Calculation of the costs of uncompensated trauma care--For the purposes of this section, a hospital will calculate its total costs of uncompensated trauma care by summing its charges related to uncompensated trauma care as defined in paragraph (6) of this subsection, then applying the cost to charge ratio defined in paragraph (13) of this subsection and derived in accordance with generally accepted accounting principles. The calculation of cost to charge ratios shall be based on the most recently completed and audited prior fiscal year of the hospital or hospital system.

(12) County of licensure--The County within which lies the location of the business mailing address of a licensed ambulance provider, as indicated by the provider on the application for licensure form that it filed with the department.

(13) Cost-to-charge ratio--Hospital's overall cost-to-charge ratio, as determined from its Medicaid cost report it submitted for its fiscal year ending in the previous calendar year. The latest available Medicaid cost report will be used in the absence of the cost report for the hospital fiscal year ending in the previous calendar year.

(b) Reserve. On September 1 of each year, there shall be a reserve of $500,000 in the designated trauma facility and emergency medical services account (account) for extraordinary emergencies. During the fiscal year, distributions may be made from the reserve by the commissioner of health based on requests which demonstrate need and impact on the EMS and trauma care system (system). Proposals not immediately recommended for funding will be reconsidered at the end of each fiscal year, if funding is available, and a need is still present.

(c) Allocations. The EMS allocation shall be not more than 2%, the TSA allocation shall be not more than 1%, and the hospital allocation shall be at least 96% of the funds appropriated from the account after any amount necessary to maintain the extraordinary emergency reserve of $500,000 has been deducted.

(1) Allocation Determination. Each year, the bureau of emergency management (department) shall determine:

(A) eligible recipients for the EMS allocation, TSA allocation, and hospital allocation;

(B) the amount of the TSA allocation, the EMS allocation, and the hospital allocation;

(C) each county's share of the EMS allocation for eligible recipients in the county;

(D) each RAC's share of the TSA allocation; and

(E) each facility's share of the hospital allocation.

(2) EMS Allocation. The department shall contract with each eligible RAC to distribute the county shares of the EMS allocation to eligible EMS providers based within counties which are aligned within the relevant RAC. Prior to distribution of the county shares to eligible providers, the RAC shall submit a distribution proposal, approved by the RAC's voting membership, to the department for approval.

(A) The county portion of the EMS allocation shall be distributed directly to eligible recipients without any reduction in the total amount allocated by the department and shall be used as an addition to current county EMS funding of eligible recipients, not as a replacement.

(B) The department shall evaluate each RAC's distribution plan based on the following:

(i) fair distribution process to all eligible providers, taking into account all eligible providers participating in contiguous TSAs;

(ii) needs of the EMS providers; and

(iii) evidence of consensus opinion for eligible entities.

(C) A RAC opting to use a distribution plan from the previous fiscal year shall submit, to the department, a letter or email of intent to do so.

(D) Eligible EMS providers may opt to pool funds or contribute funds for a specified RAC purpose.

(3) TSA Allocation. The department shall contract with eligible RACs to distribute the TSA allocation. Prior to distribution of the TSA allocation, the RAC shall submit a budget proposal to the department for approval. The department shall evaluate each RAC's budget according to the following:

(A) budget reflects all funds received by the RAC, including funds not expended in the previous fiscal year;

(B) budget contains no ineligible expenses;

(C) appropriate mechanism is used by RAC for budgetary planning; and

(D) program areas receiving funding are identified by budget categories.

(4) Hospital Allocation. The department shall distribute funds directly to facilities eligible to receive funds from the hospital allocation to subsidize a portion of uncompensated trauma care provided or to fund innovative projects to enhance the delivery of patient care in the overall EMS/Trauma System. Funds distributed from the hospital allocations shall be made based on, but not limited to:

(A) the percentage of the hospital's uncompensated trauma care cost in relation to total uncompensated trauma care cost reported by qualified hospitals that year; and

(B) availability of funds.

(d) Eligibility requirements. To be eligible for funding from the account, all potential recipients (EMS Providers, RACs, Registered First Responder Organizations and hospitals) must maintain active involvement in regional system development. Potential recipients also must meet requirements for reports of expenditures from the previous year and planning for use of the funding in the upcoming year.

(1) Extraordinary Emergency Funding. To be eligible to receive extraordinary emergency funding, an entity must:

(A) be a licensed EMS provider, a licensed hospital, or a registered first responder organization;

(B) submit to the department a signed written request, containing the entity name, contact information, amount of funding requested, and a description of the extraordinary emergency; and

(C) timely submit a signed and fully completed extraordinary emergency information checklist (on the department's form) to the department.

(2) EMS Allocation. To be eligible for funding from the EMS allocation an EMS provider must meet the following requirements:

(A) maintain provider licensure as described in §157.11 of this title and provide emergency medical services and/or emergency transfers;

(B) demonstrate utilization of the RAC regional protocols regarding patient destination and transport in all TSAs in which they operate (verified by each RAC);

(C) demonstrate active participation in the regional system performance improvement (PI) program in all TSAs in which they operate (verified by each RAC);

(D) if an EMS provider is licensed in a county or contracted to provide emergency medical services in a county that is contiguous with a neighboring TSA, it must participate on at least one RAC of the TSAs:

(i) participation on both RACs is encouraged;

(ii) RAC participation shall follow actual patient referral patterns;

(iii) an EMS provider contracted to provide emergency medical services within a county of any one TSA and whose county of licensure is another county not in or contiguous with that TSA must be an active member of the RAC for the TSA of their contracted service area and meet that RAC's definition of participation and requirements listed in subparagraph (E)(i)-(vi) of this paragraph; and

(iv) it is the responsibility of an EMS provider to contact each RAC in which it operates to ensure knowledge of the provider's presence and potential eligibility for funding from the EMS allotment related to that RAC's TSA;

(E) if an EMS provider is serving any county beyond its county of licensure it must provide to the department evidence of a contract or letter of agreement with each additional county government or taxing authority in which service is provided:

(i) inter-facility transfer letters of agreement and/or contracts, as well as mutual aid letters of agreement and/or contracts, do not meet this requirement;

(ii) contracts or letters of agreement must be dated and submitted to the department on or before August 31 of the respective year, and be effective more than six months of the upcoming fiscal year;

(iii) effective dates of the contracts or letters of agreement should be provided;

(iv) EMS providers with contracts or letters of agreement on file with the department which include contract service dates that meet the required time period (noted in this subsection) need not resubmit;

(v) EMS providers are responsible for assuring that all necessary portions of their contracts and letters of agreement have been received by the department; and

(vi) air ambulance providers must meet the same requirements as ground transport EMS providers to be eligible to receive funds from a specific county other than the county of licensure; and

(F) if a EMS provider is licensed in a particular county and has a contract (with a county government or taxing authority) for a service area which is a geopolitical subdivision (examples listed below) whose boundary lines cross multiple county lines, it will be considered eligible for the 911 EMS Allocation for all counties overlapped by that geopolitical subdivision's boundary lines. A contract with every county that composes the geopolitical subdivision is not necessary. And, the eligibility of EMS providers, whose county of licensure is in a geopolitical subdivision other than those listed in clauses (i) - (vi) of this subparagraph, will be evaluated on a case-by-case basis.

(i) Municipalities.

(ii) School districts.

(iii) Emergency service districts (ESDs).

(iv) Hospital districts.

(v) Utility districts.

(vi) Prison districts.

(3) RAC Allocation. To be eligible for funding from the TSA allocation, a RAC must:

(A) be officially recognized by the department as described in §157.123 of this title (relating to Regional Emergency Medical Services/Trauma Systems);

(B) be incorporated as an entity that is exempt from federal income tax under §501(a) of the United States Internal Revenue Code of 1986, and its subsequent amendments, by being listed as an exempt organization under §501(c)(3) of the code;

(C) submit documentation of ongoing system development activity and future planning;

(D) have demonstrated that a regional system performance improvement process is ongoing by submitting to the department the following:

(i) lists of committee meeting dates and attendance rosters for the RAC'S most recent fiscal year;

(ii) committee membership rosters which included each member's organization or constituency; or

(iii) lists of issues being reviewed in the system performance improvement meetings.

(E) Submit all required EMS allocation eligibility items addressed in paragraph (2)(B)-(C) of this subsection.

(4) To be eligible to distribute the EMS and TSA allocations, a RAC must be incorporated as an entity that is exempt from federal income tax under §501(a) of the Internal Revenue Code of 1986, and its subsequent amendments, by being listed as an exempt organization under §501(c)(3) of the code.

(5) Hospital Allocation. To be eligible for funding from the hospital allocation, a hospital must be a department designated trauma facility or in active pursuit of a department designation as a trauma facility or a Department of Defense hospital that is a department designated trauma facility or in active pursuit of a department designation as a trauma facility.

(A) To receive funding from the hospital allocation, an application must be submitted within the time frame specified by the department and include the following:

(i) name of facility;

(ii) location of facility including mailing address, city and county;

(iii) Texas Provider Identifier (TPI number) or accepted federal identification number.

(B) The application must be signed and sworn to before a Texas Notary Public by the chief financial officer, chief executive officer and the chairman of the facility's board of directors.

(C) A copy of the application shall be distributed by Level I, II, or III facilities to the trauma medical director and Level IV facilities to the physician director.

(D) Additional information may be requested at the department's discretion.

(E) A TDH-designated trauma facility in receipt of funding from the hospital allocation that fails to maintain designation through December 31, 2005, must return an amount as follows to the account by no later than January 31, 2006:

(i) 1 to 60 days lapsed designation: 0% of the facility's hospital allocation for FY04 and FY05;

(ii) 60 to 180 days lapsed designation: 25% of the facility's hospital allocation for FY04 and FY05 plus a penalty of 10%;

(iii) greater than 180 days lapsed designation: 100% of the facility's hospital allocation for FY04 and FY05 plus a penalty of 10%; and

(iv) the department may grant an exception to subparagraph (E) of this subsection if it finds that compliance with this section would not be in the best interests of the persons served in the affected local system.

(F) A facility in active pursuit of designation but has not achieved TDH-trauma designation by December 31, 2005, must return to the account by no later than January 31, 2006, all funds received from the hospital allocation in FY04 and FY05 plus a penalty of 10%.

(e) Calculation Methods. Calculation of county shares of the EMS allocation, the RAC shares of the TSA allocation, and the hospital allocation.

(1) EMS allocation.

(A) Counties will be classified as urban or rural based on the latest official federal census population figures.

(B) The EMS allocation will be derived by adjusting the weight of the statutory criteria in such a fashion that, in so far as possible, 40% of the funds are allocated to urban counties and 60% are allocated to rural counties.

(C) An individual county's share of the EMS allocation shall be based on its geographic size, population, and number of emergency health care runs multiplied by adjustment factors, determined by the department, so the distribution approximates the required percentages to urban and rural counties.

(D) The formula shall be: (((the county's population multiplied by an adjustment factor) plus (the county's geographic size multiplied by an adjustment factor) plus (the county's total emergency health care runs multiplied by an adjustment factor) divided by 3)) multiplied by (the total EMS allocation). The adjustment factors will be manipulated so that the distribution approximates the required percentages to urban and rural counties. Total emergency health care runs shall be the number of emergency runs electronically transmitted to the department in a given calendar year by EMS providers.

(2) TSA allocation.

(A) A RAC's share of the TSA allocation shall be based on its relative geographic size, population, and trauma care provided as compared to all other TSAs.

(B) The formula shall be: (((the TSA's percentage of the state's total population) plus (the TSA's percentage of the state's total geographic size) plus (the TSA's percentage of the state's total trauma care) divided by 3)) multiplied by (the total TSA allocation). Total trauma care shall be the number of trauma patient records electronically transmitted to the department in a given calendar year by EMS providers and hospitals.

(3) Hospital allocation.

(A) There will be one annual application process from which all distributions from the hospital allocation, plus any unexpended portion of the EMS and TSA allocations, in a given fiscal year will be made. The department will notify all eligible designated trauma facilities and those hospitals in active pursuit of designation at least 90 days prior to the due date of the annual application. Based on the information provided in the application, each facility shall receive:

(i) an equal amount, with an upper limit of $50,000, from up to 15 percent of the hospital allocation; and

(ii) an amount for uncompensated trauma care as determined in subparagraphs (B)-(C) of this paragraph, less the amount received in clause (i) of this subparagraph.

(B) Any funds not allocated in subparagraph (A)(i) of this paragraph shall be included in the distribution formula in subparagraph (D) of this paragraph.

(C) If the total cost of uncompensated trauma care exceeds the amount appropriated from the account, minus the amount referred to in subparagraph (A)(i) of this paragraph, the department shall allocate funds based on a facility's percentage of uncompensated trauma care costs in relation to the total uncompensated trauma care cost reported by qualified hospitals that year.

(D) In the first year of distribution, the hospital allocation formula for Level I, II, III and IV trauma facilities and those facilities in active pursuit of designation shall be: (((the facility's reported costs of uncompensated trauma care) divided by (the total reported cost of uncompensated trauma care by qualified hospitals that year))) multiplied by (total money available for facilities minus the amount referred to in subparagraph (A)(i)) of this paragraph.

(E) In subsequent years of distribution, the hospital allocation formula for Level I, II, III and IV trauma facilities and those facilities in active pursuit of designation shall be: (((the facility's reported costs of uncompensated trauma care) minus (any collections received by the hospitals for any portion of their uncompensated care previously reported for the purposes of this section) divided by (the total reported cost of uncompensated trauma care by qualified hospitals that year))) multiplied by (total money available for facilities minus the amount distributed in subparagraph (A)(i)) of this paragraph.

(F) For purposes of subparagraphs (D) - (E) of this paragraph, the reporting period of a facility's uncompensated trauma care shall apply to costs incurred during the preceding calendar year.

(G) Hospitals should have a physician incentive plan that supports the facility's participation in the trauma system.

(f) Loss of funding eligibility. If the department finds that an EMS provider, RAC, or hospital has violated the Health and Safety Code, §780.004, or fails to comply with this section, the department may withhold account monies for a period of one to three years depending upon the seriousness of the infraction.

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 April 16, 2004.

TRD-200402512

Susan K. Steeg

General Counsel

Texas Department of Health

Earliest possible date of adoption: May 30, 2004

For further information, please call: (512) 458-7236


Chapter 229. FOOD AND DRUG

The Texas Department of Health (department) proposes the repeal of §§229.181-229.184 and new §§229.181-229.184, concerning the licensure of food manufacturers, food wholesalers, and warehouse operators relating to food operations for the programs within the Bureau of Food and Drug Safety.

The new rules are necessary changes to implement Senate Bill (SB) 1152, 78th Legislature, 2003, which amended Government Code, Chapter 2054, to require participation in Texas Online; House Bill 2292, 78th Legislature, 2003, which revised Health and Safety Code, §§12.0111 and 12.0112, and requires two-year licenses effective January 1, 2005; SB 381, 78th Legislature, 2003, which amended Health and Safety Code, Chapter 431, to create an exception from licensing for certain restaurants; SB 1826, 78th Legislature, 2003, which amended Health and Safety Code, Chapter 431, to change the definition of manufacture to include relabeling, and increased criminal penalties for violations of the chapter; and SB 1803, 78th Legislature, 2003, which amended Health and Safety Code, Chapter 431, to increase criminal penalties for violations of the chapter, and established authority to license warehouse operators and register certain food wholesalers who meet the requirements of the chapter. The new rules rename the subchapter, reorganize the sections, and clarify license requirements and fees.

Derek Jakovich, Director, Licensing and Enforcement Division, has determined that for each year of the first five-year period the sections are in effect, there will be no fiscal implications to the state as the proposed license/registration fees will generate the same amount of revenue as the current license fees (approximately $800,000 each year). There will be no effect on local government.

Mr. Jakovich has also determined that for each of the first five years the rules are in effect, the public benefit anticipated as a result of enforcing and administering the proposed rules will be the ability to ensure that food products stored, distributed in Texas, and offered to the public are fully inspected and regulated and that those products that are adulterated and/or misbranded can be removed from the market so as to protect public health and safety. Since most food wholesalers will be paying a $50 annual registration fee prior to January 1, 2005, and then a $100 registration fee for a two-year license on or after January 1, 2005, there will be no adverse economic effect on micro-businesses and/or small businesses or persons who are required to comply with the sections. There will be no anticipated impact on local employment.

Government Code, §2001.039, requires each state agency to review and consider for adoption each rule adopted by that agency pursuant to Government Code, Chapter 2001 (Administrative Procedure Act). The current rules have been reviewed and the department has determined that reasons for adopting the rules continue to exist. However, because substantial changes are made to implement legislation and reorganize the rules, the current rules are being repealed and new rules are proposed.

The department published a Notice of Intention to Review for §§229.181 - 229.184 in the Texas Register on October 24, 2003 (28 TexReg 9295). No comments were received as a result of the publication of the notice.

Comments on the proposed rules may be submitted to Derek Jakovich, Director, Licensing and Enforcement Division, Bureau of Food and Drug Safety, Texas Department of Health, 1100 West 49th Street, Austin, Texas 78756-3189, (512) 719-0222. Comments will be accepted for 30 days following publication of the proposed rules in the Texas Register .

Subchapter L. LICENSURE OF FOOD MANUFACTURERS AND FOOD WHOLESALERS--INCLUDING GOOD MANUFACTURING PRACTICES AND GOOD WAREHOUSING PRACTICES IN MANUFACTURING, PACKING AND HOLDING HUMAN FOOD

25 TAC §§229.181 - 229.184

(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 Department of Health or in the Texas Register office, Room 245, James Earl Rudder Building, 1019 Brazos Street, Austin.)

The repeals are proposed under the Health and Safety Chapter 431, §431.241, which authorizes the Texas Board of Health (board) to adopt rules for the efficient enforcement of Chapter 431; and the Health and Safety Code, §12.001, which provides the Texas Board of Health (board) with the authority to adopt rules for the performance of every duty imposed by law on the board, the department, and the commissioner of health.

The repeals affect the Health and Safety Code, Chapters 12 and 431. The review of the rules implements Government Code, §2001.039.

§229.181.Definitions.

§229.182.Licensing Fee and Procedures.

§229.183.Minimum Standards for Licensure.

§229.184.Refusal, Revocation, or Suspension of Licensure.

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 April 15, 2004.

TRD-200402501

Susan K. Steeg

General Counsel

Texas Department of Health

Earliest possible date of adoption: May 30, 2004

For further information, please call: (512) 458-7236


Subchapter L. LICENSURE OF FOOD MANUFACTURERS, FOOD WHOLESALERS, AND WAREHOUSE OPERATORS

25 TAC §§229.181 - 229.184

The new rules are proposed under the Health and Safety Chapter 431, §431.241, which authorizes the Texas Board of Health (board) to adopt rules for the efficient enforcement of Chapter 431; and the Health and Safety Code, §12.001, which provides the Texas Board of Health (board) with the authority to adopt rules for the performance of every duty imposed by law on the board, the department, and the commissioner of health.

The new rules affect the Health and Safety Code, Chapters 12 and 431. The review of the rules implements Government Code, §2001.039.

§229.181.Definitions.

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

(1) Direct seller--An individual:

(A) who is not affiliated with a permanent retail establishment and who engages in the business of:

(i) in-person sales of prepackaged nonperishable foods, including dietary supplements, to a buyer on a buy-sell basis, a deposit-commission basis, or a similar basis for resale in a home; or

(ii) sales of prepackaged nonperishable foods, including dietary supplements, in a home;

(B) who receives substantially all remuneration for a service, whether in cash or other form of payment, which is directly related to sales or other output, including the performance of the service, and not to the number of hours worked; or

(C) who performs services under a written contract between the individual and the person for whom the service is performed, and the contract provides that the individual is not treated as an employee with respect to federal tax purposes.

(2) Food--Any article of food or drink for man; chewing gum; or an article used for components of any such article.

(3) Food manufacturer--A person who combines, purifies, processes, or packages food for sale through a wholesale outlet. The term also includes a retail outlet that packages or labels food before sale and a person that represents itself as responsible for the purity and proper labeling of an article of food by labeling the food with the person's name and address.

(4) Food service establishment--Any place where food is prepared and intended for individual portion service, and includes the site at which individual portions are provided. The term includes any such place regardless of whether consumption is on or off the premises and regardless of whether there is a charge for the food. The term also includes delicatessen-type operations that prepare sandwiches intended for individual portion service. The term does not include private homes where food is prepared or served for individual family consumption, retail food stores, the location of food vending machines, and supply vehicles.

(5) Food wholesaler--A person who distributes food for resale, either through a retail outlet owned by that person or through sales to another person. The term "food wholesaler" shall not include a commissary which distributes food primarily intended for immediate consumption on the premises of a retail outlet under common ownership or an establishment engaged solely in the distribution of nonalcoholic beverages in sealed containers.

(6) Manufacture--The process of combining or purifying food or packaging food for sale to a person at wholesale or retail, and includes repackaging, labeling, or relabeling of any food.

(7) Package--Any container or wrapping in which a consumer commodity is enclosed for use in the delivery or display of that consumer commodity to retail purchasers. The term includes wrapped meats enclosed in papers or other materials as prepared by the manufacturers thereof for sale. The term does not include:

(A) shipping containers or wrappings used solely for the transportation of a consumer commodity in bulk or in quantity to manufacturers, packers, or processors, or to wholesale or retail distributors; or

(B) shipping containers or outer wrappings used by retailers to ship or deliver a commodity to retail customers if the containers and wrappings do not bear printed matter relating to any particular commodity.

(8) Place of business--Each location where a person manufactures food, where food for wholesale is distributed, or a warehouse where food is stored.

(9) Sale--The manufacture, production, processing, packaging, exposure, offer, possession, or holding of any such article for sale; and the sale, dispensing, and giving of any such article, and the supplying or applying of any such articles in the conduct of any food, drug, or device place of business.

(10) Warehouse--Any structure used for the storage of food.

(11) Warehouse operator--A person that operates a warehouse where food is stored.

§229.182.Licensing Fee and Procedures.

(a) License required.

(1) A person who manufactures food must obtain a food manufacturer's license for each place of business as described in subsection (b)(1) or (2) of this section; also, a food manufacturer who distributes its own food, and/or food from another manufacturer must only obtain a food manufacturer's license. When calculating the amount of the licensing fee, the manufacturer must include the total for all food manufactured and wholesaled from the place of business.

(2) A person who distributes food, but who does not manufacture food, must obtain a food wholesaler's license for each place of business as described in subsection (b)(3) or (4) of this section.

(3) A person who distributes food, but who does not manufacture food, and who chooses to store that food with a warehouse operator licensed under subsection (b)(8) or (9) of this section, must register as a food wholesaler under subsection (b)(7) of this section.

(4) A person who distributes food and drugs, food and medical devices, or food and drugs and medical devices, must obtain a wholesaler with combination products license, as described in subsection (b)(5) or (6) of this section, for each place of business; this license is required even if the products are stored in a separate warehouse or with a warehouse operator licensed under subsection (b)(8) or (9) of this section.

(5) A warehouse operator storing food for a registered food wholesaler must obtain a warehouse operator license as described in subsection (b)(8) or (9) of this section for each such warehouse. A warehouse operator who distributes only food is required to obtain only a warehouse operator license. A warehouse operator who distributes combination products (food and drugs, food and medical devices, or food, drugs, and medical devices) and is also required to obtain a wholesaler's license under subsection (b)(5) or (6) of this section will be issued only one license. The license fee to be paid will be the higher of the two applicable fees.

(6) A warehouse operated by a food manufacturer which is totally separate from any manufacturing location, including locations from which foods are held for limited periods of time for distribution, must obtain a warehouse operator license as described in subsection (b)(8) or (9) of this section for each such warehouse.

(7) A retail food store that also manufactures food and is required to be permitted by the Texas Department of Health (department) pursuant to Health and Safety Code, Chapter 437, and the Texas Food Establishment Regulations, §§229.370 - 229.371 of this title (relating to Permitting Retail Food Establishments), will be issued only one license or permit. The license or permit fee to be paid will be the higher of the two applicable fees.

(8) A wholesaler who distributes combination products and who is also required to be licensed as a warehouse operator under this section will be issued only one license. The license fee to be paid will be the higher of the two applicable fees.

(9) A food manufacturer required to be licensed exclusively pursuant to Health and Safety Code, Chapter 432, relating to Food, Drug, Device and Cosmetic Salvage, Chapter 433, relating to Meat and Poultry Inspection, Chapter 435, relating to Dairy Products, Chapter 436, relating to Aquatic Life, or Chapter 440, relating to Frozen Desserts, is not required to license pursuant to this chapter.

(b) Licensing and registration fees.

(1) Food manufacturer. This subsection applies to all new and renewal applications received by the department prior to January 1, 2005. Licenses issued under this subsection are valid up to one year and expire on the date printed on the license. All food manufacturers in Texas shall obtain a license annually with the department and shall pay a license fee as follows:

(A) $25 for each place of business having gross annual manufactured food sales of $0.00-$9,999.99;

(B) $50 for each place of business having gross annual manufactured food sales of $10,000-$24,999.99;

(C) $100 for each place of business having gross annual manufactured food sales of $25,000-$99,999.99;

(D) $250 for each place of business having gross annual manufactured food sales of $100,000- $199,999.99;

(E) $400 for each place of business having gross annual manufactured food sales of $200,000-$999,999.99;

(F) $500 for each place of business having gross annual manufactured food sales of $1 million-$9,999,999.99; and

(G) $750 for each place of business having gross annual manufactured food sales greater than or equal to $10 million.

(2) Food manufacturer. This subsection applies to all new and renewal applications received by the department on or after January 1, 2005. Licenses issued under this subsection are valid up to two years and expire on the date printed on the license. All food manufacturers in Texas shall obtain a license every two years with the department and shall pay a license fee as follows:

(A) $50 for each place of business having gross annual manufactured food sales of $0.00-$9,999.99;

(B) $100 for each place of business having gross annual manufactured food sales of $10,000- $24,999.99;

(C) $200 for each place of business having gross annual manufactured food sales of $25,000-$99,999.99;

(D) $500 for each place of business having gross annual manufactured food sales of $100,000-$199,999.99;

(E) $800 for each place of business having gross annual manufactured food sales of $200,000- $999,999.99;

(F) $1000 for each place of business having gross annual manufactured food sales of $1 million-$9,999,999.99; and

(G) $1500 for each place of business having gross annual manufactured food sales greater than or equal to $10 million.

(3) Food wholesaler. This subsection applies to all new and renewal applications received by the department prior to January 1, 2005. Licenses issued under this subsection are valid up to one year and expire on the date printed on the license. All food wholesalers in Texas shall obtain a license annually with the department. Except as provided for in paragraph (5) of this subsection, food wholesalers shall pay a license fee as follows:

(A) $100 for each place of business having gross annual food sales of $0.00-$199,999.99;

(B) $200 for each place of business having gross annual food sales of $200,000-$499,999.99;

(C) $300 for each place of business having gross annual food sales of $500,000-$999,999.99;

(D) $400 for each place of business having gross annual food sales of $1 million-$9,999,999.99; and

(E) $600 for each place of business having gross annual food sales of greater than or equal to $10 million.

(4) Food wholesaler. This subsection applies to all new and renewal applications received by the department on or after January 1, 2005. Licenses issued under this subsection are valid up to two years and expire on the date printed on the license. Except as provided for in paragraph (7) of this subsection, all food wholesalers in Texas shall obtain a license every two years with the department and shall pay a license fee as follows:

(A) $200 for each place of business having gross annual food sales of $0.00-$199,999.99;

(B) $400 for each place of business having gross annual food sales of $200,000-$499,999.99;

(C) $600 for each place of business having gross annual food sales of $500,000-$999,999.99;

(D) $800 for each place of business having gross annual food sales of $1 million-$9,999,999.99; and

(E) $1200 for each place of business having gross annual food sales of greater than or equal to $10 million.

(5) Wholesaler with combination products. This subsection applies to all new and renewal applications received by the department prior to January 1, 2005. Licenses issued under this subsection are valid up to one year and expire on the date printed on the license. A wholesaler who is required to be licensed under this section and who is also required to be licensed as a wholesale distributor of drugs under §229.252(a)(1) of this title (relating to Licensing Fee and Procedures) and/or as a device distributor under §229.439(a)(1) of this title (relating to Licensure Fees) shall pay a combined licensure fee for each place of business. The licensure fee shall be based on the combined gross annual sales of these regulated products (foods, drugs, and/or devices) as follows:

(A) $200 for each place of business having combined gross annual sales of $0.00-$199,999.99;

(B) $300 for each place of business having combined gross annual sales of $200,000-$499,999.99;

(C) $400 for each place of business having combined gross annual sales of $500,000-$999,999.99;

(D) $500 for each place of business having combined gross annual sales of $1 million-$9,999,999.99; and

(E) $750 for each place of business having combined gross annual sales greater than or equal to $10 million.

(6) Wholesaler with combination products. This subsection applies to all new and renewal applications received by the department on or after January 1, 2005. Licenses issued under this subsection are valid up to two years and expire on the date printed on the license. A wholesaler who is required to be licensed under this section and who is also required to be licensed as a wholesale distributor of drugs under §229.252(a)(1) of this title (relating to Licensing Fee and Procedures) or as a device distributor under §229.439(a)(1) of this title (relating to Licensure Fees) shall pay a combined licensure fee for each place of business. The licensure fee shall be based on the combined gross annual sales of these regulated products (foods, drugs, and/or devices) as follows:

(A) $400 for each place of business having combined gross annual sales of $0.00-$199,999.99;

(B) $600 for each place of business having combined gross annual sales of $200,000-$499,999.99;

(C) $800 for each place of business having combined gross annual sales of $500,000-$999,999.99;

(D) $1000 for each place of business having combined gross annual sales of $1 million-$9,999,999.99; and

(E) $1500 for each place of business having combined gross annual sales greater than or equal to $10 million.

(7) Food wholesaler registration. Except as provided in subsections (5) and (6) of this section, a food wholesaler is not required to obtain a license under this section for a place of business if all of the food distributed from that place of business will be stored in a warehouse licensed under this section. A registration issued under this subsection is valid until expiration on the date printed on the registration. A food wholesaler that is not required to obtain a license for a place of business under this section shall register each place of business with the department pursuant to subsection (d)(2) of this section, but only one registration fee must be paid by each such food wholesaler. A food wholesaler who meets this subsection's requirements shall pay a registration fee as follows:

(A) $50 for an annual registration, on a form received by the department prior to January 1, 2005;

(B) $100 for a two-year registration, on a form received by the department on or after January 1, 2005;

(8) Warehouse operator. This subsection applies to all new and renewal applications received by the department prior to January 1, 2005. Licenses issued under this subsection are valid up to one year and expire on the date printed on the license. All warehouse operators in Texas shall obtain a license annually with the department. The fee paid must be based on the maximum amount of square feet dedicated to food storage during the licensing period. A warehouse operator shall pay a license fee as follows:

(A) $175 for each place of business having food storage of 0 - 6,000 square feet;

(B) $350 for each place of business having food storage of 6,001 - 24,000 square feet;

(C) $525 for each place of business having food storage of 24,001 - 75,000 square feet;

(D) $700 for each place of business having food storage of 75,001 - 250,000 square feet; and

(E) $1000 for each place of business having food storage of 250,001 or more square feet.

(9) Warehouse operator. This subsection applies to all new and renewal applications received by the department on or after January 1, 2005. Licenses issued under this subsection are valid up to two years and expire on the date printed on the license. All warehouse operators in Texas shall obtain a license every two years with the department. The fee paid must be based on the maximum amount of square feet dedicated to food storage during the licensing period. A warehouse operator shall pay a license fee as follows:

(A) $350 for each place of business having food storage of 0 - 6,000 square feet;

(B) $700 for each place of business having food storage of 6,001 - 24,000 square feet;

(C) $1,050 for each place of business having food storage of 24,001 - 75,000 square feet;

(D) $1,400 for each place of business having food storage of 75,001 - 250,000 square feet; and

(E) $2,000 for each place of business having food storage of 250,001 or more square feet.

(10) A firm that has more than one business location may request a one-time proration of fees when applying for a license for each new location. Upon approval by the department, the expiration date of the license for the new location will be established the same as the firm's previously licensed locations.

(11) For all applications and renewal applications, the department is authorized to collect subscription and convenience fees, in amounts determined by the Texas Online Authority, to recover costs associated with application and renewal application processing through Texas Online.

(12) All license/registration fees paid under this section are non-refundable.

(13) If the license/registration category changes during the license period, the license shall be renewed in the proper category at the time of renewal.

(c) License forms. License forms may be obtained from the Bureau of Food and Drug Safety, Texas Department of Health, 1100 West 49th Street, Austin, Texas 78756-3182, or from the website at www.tdh.state.tx.us/bfds/lic/apps.html.

(d) License application. All food manufacturers, food wholesalers, and warehouse operators shall file a license application on a form authorized by the department.

(1) The application form shall be signed and verified, and shall contain the following information:

(A) the name of the legal entity to be licensed, including the name under which the business is conducted;

(B) the physical address of the place of business in the state that is licensed;

(C) the mailing address of the place of business in the state that is licensed;

(D) if a sole proprietorship, the name of the proprietor; if a partnership, the names of all partners; if a corporation, the name of the corporation, the date and place of incorporation and name and address of its registered agent in the state; or if any other type of association, the names of the principals of such association;

(E) the names of those individuals in an actual administrative capacity which, in the case of a sole proprietorship shall be the managing proprietor; in a partnership, the managing partner; in a corporation, the officers and directors; in any other association, those in a managerial capacity; and

(F) a list of categories of gross annual sales or square footage as applicable, which must be marked and adhered to by the licensee in the determination and paying of the license fee.

(2) Food wholesalers who meet the requirements to register under subsection (b)(7) of this section, must submit a registration form authorized by the department which shall be signed and verified, and contain the following information:

(A) the name of the legal entity to be registered, including the name under which the business is conducted;

(B) the name, telephone number, and physical address of the licensed warehouse where the food wholesaler's food products are or will be stored;

(C) the physical address where the food wholesaler's distribution records are located and available for review upon inspection;

(D) the mailing address and telephone number where the food wholesaler may be contacted; and

(E) a description of the type of food products being distributed by the food wholesaler.

(e) Two or more establishments. If the food manufacturer, food wholesaler, or warehouse operator operates more than one place of business, each place of business shall be licensed separately by listing the name and address of each place of business on the license application.

(f) Issuance of license. As applicable, the department may license/register a manufacturer, food wholesaler, or warehouse operator who meets the requirements of this section and §229.183 of this title (relating to Minimum Standards for Licensure).

(1) The initial license/registration shall be valid for one year from the start date of the regulated activity which becomes the anniversary date, for all applications received by the department prior to January 1, 2005, and for two years from the anniversary date for all applications received on or after January 1, 2005.

(2) The renewal license/registration shall be valid for one year from the anniversary date, unless an amendment occurs, for all applications received by the department prior to January 1, 2005, and for two years from the anniversary date for all applications received on or after January 1, 2005.

(3) A current license/registration shall only be issued when all past due fees and late fees are paid.

(g) Renewal of license.

(1) For each licensing/registration period, the food manufacturer, food wholesaler, or warehouse operator shall renew its license/registration as applicable following the requirements of this section and §229.183 of this title.

(2) A person who holds a license/registration issued by the department under the Health and Safety Code shall renew the license/registration by filing an application for renewal on a form authorized by the department accompanied by the appropriate licensing/registration fee. A licensee must file for renewal before the expiration date of the current license. A person who files a renewal application after the expiration date must pay an additional $100 as a delinquency fee.

(3) Failure to submit the renewal during the licensing/registration period may subject the food manufacturer, food wholesaler, or warehouse operator to the offense provisions under the Health and Safety Code, Chapter 431, to the provision of §229.184 of this title (relating to the Refusal, Revocation, or Suspension of License), and to the provisions of §229.222 of this title (relating to Penalties).

(h) Amendment of license.

(1) Fees. A license or registration that is amended during the licensing or registration period, including a change of name, ownership (change in legal entity), or a notification of a change in the location of a licensed or registered place of business required under the Health and Safety Code, §431.2251, will require a new application and submission of license or registration fees as outlined in subsection (b) of this section.

(2) Change in name, ownership, status, or location of business.

(A) Not later than the 31st day before the date of the change in the name, status, or location of a licensed place of business, the license holder shall provide written notice to the department of the intended change. The notice shall include, as applicable:

(i) The new name of the legal entity to be licensed or registered, including the name under which the business is conducted;

(ii) The physical and mailing address of the new location;

(iii) The name and physical address of the licensed warehouse where the food wholesaler's food products will be stored;

(iv) The physical address where the food wholesaler's distribution records are located and available for review upon inspection; and

(v) The mailing address and telephone number where the food wholesaler may be contacted.

(B) Not later than the 10th day after completion of the change of location, the licensee or registrant shall forward to the department the name and residence address of the individual in charge of the new place of business.

(C) Notice is considered adequate if the licensee or registrant provides the intent and verification notices to the department by certified mail, return receipt requested, mailed to Texas Department of Health, Bureau of Food and Drug Safety, 1100 West 49th Street, Austin, Texas 78756-3182.

(i) This section does not apply to:

(1) a person, firm, or corporation that harvests, packages, washes, or ships raw fruits or vegetables;

(2) a direct seller who is not otherwise engaged in manufacturing;

(3) a person engaged solely in the distribution of alcoholic beverages in sealed containers by holders of licenses or permits issued under the Alcoholic Beverage Code, Chapters 19, 20, 21, 23, 64, or 65;

(4) a food service establishment or a commissary which distributes food primarily intended for immediate consumption on the premises of a retail outlet under common ownership unless the business regularly engages in the labeling, combining, and purifying of food which is either sold for resale or packaged for sale in other than individual portions; or

(5) a restaurant that provides food for immediate human consumption to a political subdivision or to a licensed nonprofit organization if the restaurant would not otherwise be considered a food wholesaler.

§229.183.Minimum Standards for Licensure.

Food manufacturers, food wholesalers, and warehouse operators.

(1) All food manufacturers, and warehouse operators in Texas shall comply with §§229.211 - 229.221 of this title (relating to Current Good Manufacturing Practice and Good Warehousing Practice in Manufacturing, Packing, or Holding Human Food) in addition to the existing standards contained in the Health and Safety Code, Chapters 431, 434, and 438.

(2) All food wholesalers in Texas, including those food wholesalers registered under §229.182 of this title (relating to Licensing Fees and Procedures), shall comply with §§229.211 - 229.219 of this title, in addition to the existing standards contained in the Health and Safety Code, Chapters 431, 434, and 438.

(3) Living areas. No manufacturing or holding of foods for distribution shall be conducted in any room used as living or sleeping quarters. All food manufacturing and storage shall be separated from any living or sleeping quarters by complete partitioning.

(4) Food labeling. If a person, firm, or corporation labels an article of food, the label shall meet the requirements of the Health and Safety Code, Chapter 431.

§229.184.Refusal, Revocation, or Suspension of Licensure.

(a) Basis. The department may, after providing an opportunity for a hearing, refuse an application for a license/registration from a food manufacturer, food wholesaler, or warehouse operator, or may revoke or suspend a license/registration for violations of the requirements in §229.182 of this title (relating to Licensing Fee and Procedures), and §229.183 of this title (relating to Minimum Standards for Licensure), or for interference with the department in the performance of its duty under these rules.

(b) Hearings. Any hearings for the refusal, revocation, or suspension of a license/registration are governed by §§1.21, 1.23, 1.25, and 1.27 of this title (relating to Formal Hearing Procedures).

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 April 15, 2004.

TRD-200402502

Susan K. Steeg

General Counsel

Texas Department of Health

Earliest possible date of adoption: May 30, 2004

For further information, please call: (512) 458-7236


Chapter 265. GENERAL SANITATION

Subchapter K. REGISTRATION OF SANITARIANS

25 TAC §§265.143, 265.147, 265.151, 265.152, 265.155

The Texas Department of Health (department) proposes amendments to §§265.143, 265.147, 265.151, 265.152, and 265.155, concerning the registration of sanitarians.

The amendments are necessary to implement House Bill 2985, 78th Legislature, 2003, which added Occupations Code, Chapter 101, Subchapter G, which established the Office of Patient Protection and requires additional fees to fund it; Senate Bill 1152, 78th Legislature, 2003, which amends Government Code, Chapter 2054, to require participation in Texas Online; and Senate Bill 161, 78th Legislature, 2003, which amends Occupations Code, Chapter 1953, relating to emergency suspensions and administrative penalties. The two year licensing fee amendments are required as a result of revisions to the Health and Safety Code, Chapter 12, §§12.0111 and 12.0112, pursuant to House Bill 2292, 78th Legislature, 2003.

An amendment to §265.143 lists the additional fees that will be imposed, and clarifies that the renewal fee for a registration with a two year term will be twice the number required for the current annual renewal. The amendment to §265.147 clarifies that the number of continuing education hours to be accrued for a registration with a two year term will be twice that of the current annual renewal. Obsolete language in §265.147 concerning transition is being removed to further clarify the rules. Amendments to §§265.151 and 265.152 further clarify that a registration may be issued for a one or a two year term. New language is added to amend §265.155 to reference the new statutory authority of the department to impose administrative penalties.

Jim Zukowski, Ed. D., Chief, Bureau of Licensing and Compliance, has determined that for each year of the first five years the sections are in effect, there will be fiscal implications as a result of enforcing or administering the sections as proposed. The effect on state government will be an estimated increase in revenue to the state of approximately $8,000 per year. It is estimated that costs to the state to administer the new provisions will be equal to the estimated fee increases. No fiscal impact to local government is expected.

Dr. Zukowski has also determined that for each year of the first five years the sections are in effect, the public benefit anticipated as a result of enforcing or administering the proposed sections will be to assure the registration and regulation of sanitarians in Texas. There will be no effect on small businesses or micro-businesses because this registration as a sanitarian is a voluntary registry. There are anticipated economic costs of up to $10 to persons who are required to comply with the sections as proposed, based on anticipated fees assessed for new applicants. There is no anticipated impact on local employment.

Comments on the proposal may be submitted to Yvonne Feinleib, Program Director, Texas Department of Health Sanitarian Registration Program, 1100 West 49th Street, Austin, Texas 78756, (512) 834-4517. Comments will be accepted for 30 days following publication of the proposal in the Texas Register .

The amendments are proposed under the Occupations Code, Chapter 1953, which authorizes the Texas Board of Health (board) to adopt rules to administer and enforce the chapter; and the Health and Safety Code, §12.001, which provides the board with the authority to adopt rules for the performance of every duty imposed by law on the board, the department, and the commissioner of health.

The amendments affect the Occupations Code, Title 12, Chapter 1953.

§265.143.Fees.

(a) (No change.)

(b) The schedule of fees is as follows:

(1)-(2) (No change.)

(3) [ annual ] registration renewal fee:

(A) sanitarian-in-training (one-time renewal for a two year period) - $150; [ or ]

(B) registered Sanitarian (for a one year term) - $75; or

(C) registered Sanitarian (for a two year term) - $150;

(4)-(10) (No change.)

(c) The month the initial registration is issued will establish the anniversary date for future [ annual ] registration renewal.

(d) For all applications and renewal applications, the department is authorized to collect fees to fund the Office of Patient Protection, Health Professions Council, as mandated by law.

(e) For all applications and renewal applications, the department is authorized to collect subscription and convenience fees, in amounts determined by the Texas Online Authority, to recover costs associated with application and renewal application processing through Texas Online.

§265.147.Continuing Education Requirements.

(a) Each [ registered ] sanitarian registered [ licensed ] by the department must meet the renewal requirements set out in this section.

(b) Each registered sanitarian must obtain and show proof of not less than 12 continuing education contact hours related to the fields of consumer health, environmental health or sanitation as defined in §256.142 of this title (relating to Definitions) within the 12 months preceding renewal of a [ their ] registration issued for a one year term, or 24 hours taken within the 24 months preceding renewal for a registration issued for a two year term .

(c)-(p) (No change.)

[(q) Transition. Course sponsors who submitted one or more activities to the department and received approval between September 1, 2000, and September 1, 2002, will be approved for one year without payment of a fee upon completion and submission of the sponsor approval form within 90 days of the effective date of these rules.]

§265.151.Sanitarian Registration Procedures.

(a) (No change.)

(b) Issuance of certificates of registration.

(1) (No change.)

(2) A certificate of registration issued under this Act is valid for a one or two year term, as determined by the department, [ one year ] and may be renewed [ annually ] on payment of the required renewal fee and documentation of the required continuing education contact hours.

(3) (No change.)

(c)-(d) (No change.)

§265.152.Sanitarian Registration Renewal.

(a) (No change.)

(b) General.

(1) A registrant must renew the registration annually or every two years, as determined by the department .

(2)-(5) (No change.)

(c)-(f) (No change.)

§265.155.Violations, Complaints, Investigations, and Disciplinary Actions.

(a)-(f) (No change.)

(g) The department may assess administrative penalties for a violation of the Act or this chapter in accordance with the procedures established in Occupations Code, Chapter 1953.

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 April 15, 2004.

TRD-200402506

Susan K. Steeg

General Counsel

Texas Department of Health

Earliest possible date of adoption: May 30, 2004

For further information, please call: (512) 458-7236