ADOPTED RULES
An agency may take final action on a section 30 days after a proposal has been 
published in the Texas Register. The section becomes effective 20 days after the 
agency files the correct document with the Texas Register, unless a later date 
is specified or unless a federal statute or regulation requires implementation 
of the action on shorter notice.
If an agency adopts the section without any changes to the proposed text, only 
the preamble of the notice and statement of legal authority will be published. 
If an agency adopts the section with changes to the proposed text, the proposal 
will be republished with the changes.

TITLE 4. AGRICULTURE
PART I. Texas Department of Agriculture
CHAPTER 3.Boll Weevil Eradication Program
SUBCHAPTER E.Creation of Eradication Zones
4 TAC sec.3.110
The Texas Department of Agriculture (the department) adopts an amendment to 
sec.3.110, concerning the Southern High Plains Boll Weevil Eradication Zone. The 
amendment is adopted to change the name of the area designated as the Southern 
High Plains Boll Weevil Eradication Zone to the Western High Plains Boll Weevil 
Eradication Zone. The name change is adopted, upon the request of the Southern 
High Plains Boll Weevil Eradication Zone Interim Advisory Committee, to avoid 
confusion due to the current name of the zone being similar to the existing 
Southern High Plains/Caprock zone, and to more accurately describe the 
geographical area included in the designated zone. The amendment designates all 
of the area currently included in the Southern High Plains Zone as the Western 
High Plains Boll Weevil Eradication Zone. 
No comments were received on the proposal. 
The amendment is adopted under the Texas Agriculture Code, sec.74.1042, which 
provides the commissioner of agriculture with the authority, by rule, to 
designate an area of the state as a proposed boll weevil eradication zone; and 
Senate Bill 1814, 75th Legislature, 1997, sec.1.27(d), which provides the 
commissioner of agriculture with the authority to by rule divide a statutory 
zone and fairly apportion any debt to each portion of the divided zone.
This agency hereby certifies that the adoption has been reviewed by legal 
counsel and found to be a valid exercise of the agency's legal authority.
Filed with the Office of the Secretary of State on March 18, 1998.
TRD-9804175
Dolores Alvarado Hibbs
Deputy General Counsel
Texas Department of Agriculture
Effective date: April 13, 1997
Proposal publication date: February 20, 1998
For further information, please call: (512) 463-7541

TITLE 13. CULTURAL RESOURCES
PART I. Texas State Library and Archives Commission
CHAPTER 2.General Policies and Procedures
13 TAC sec.sec.2.11, 2.60-2.64
The Texas State Library and Archives Commission adopts an amendment to sec.2.11 
and new sec.sec.2.60 - 2.64, concerning friends organizations. Section 2.60 and 
sec.2.62 are adopted with changes to the proposed text as published in the 
December 26, 1997, issue of the Texas Register (22 TexReg 12646). Sections 2.11, 
2.61, and 2.63 - 2.64 are adopted without changes and the text will not be 
republished.
In order to provide assistance to nonprofit organizations that support the 
commission's programs and services, the commission has adopted written policies 
as required by law. In exchange for its assistance the commission expects to 
receive financial support from affiliated nonprofit friends. The word "support" 
in sec.2.60 was changed to "recognize" removing possible ambiguity in the 
section. In sec.2.62 the word "recognized" was inserted before the phrase 
"friends groups" in the first sentence to specify which friends groups would be 
provided reasonable assistance by the commission. The adopted sections define 
friends group. They also establish the terms of the relationship between the 
Texas State Library and Archives Commission and affiliated nonprofit friends 
organizations and will guide the Commission in designating friends groups. 
No comments were received regarding adoption of the sections. 
The new sections and the amendment are adopted under the Government Code 
sec.441.006(a) and sec.441.006(b), as amended by House Bill 2512, Acts, 75 
Legislature, R.S. (1997), which permits the commission to adopt policies and 
affiliate with a nonprofit organization. 

sec.2.60.Relationship Between the State Library and Archives Commission and 
Friends Groups.
The commission may designate nonprofit organizations that are organized to raise 
funds and provide services and other benefits to the commission as a "friend" of 
the Texas State Library and Archives Commission. A friends group must submit 
copies of its charter and bylaws or other organizational documents to the 
commission for review and approval. Upon designation as a friend of the 
commission and for so long as such designation exists, the commission may 
recognize a friends group. Designation as a "friend" shall be reviewed 
periodically but not less than once every five years. 

sec.2.62.Use of Commission Employees or Property.
The commission may authorize reasonable use of commission employees, equipment, 
or property by recognized friends groups in order to further or support the 
purposes or programs of the commission, provided such usage is commensurate with 
the benefit received or to be received by the commission. Commission employees 
shall receive no compensation from the friends groups for such service.
This agency hereby certifies that the adoption has been reviewed by legal 
counsel and found to be a valid exercise of the agency's legal authority.
Filed with the Office of the Secretary of State on March 25, 1998.
TRD-9804274
Raymond Hitt
Assistant State Librarian
Texas State Library and Archives Commission
Effective date: April 14, 1998
Proposal publication date: December 26, 1997
For further information, please call: (512) 463-5460

TITLE 16. ECONOMIC REGULATION
PART IV. Texas Department of Licensing and Regulation
CHAPTER 72. Staff Leasing Services
16 TAC sec.sec.72.1, 72.10, 72.20, 72.70, 72.71, 72.80-72.83, 72.90
The Texas Department of Licensing and Regulation adopts amendments to 
sec.sec.72.1, 72.10, 72.20, 72.70, 72.71, 72.80-72.83, and 72.90, concerning 
staff leasing services. Sections 72.70, 72.71, 72.81 and 72.82 are adopted with 
changes to the proposed text as published in the November 21, 1997 issue of the 
Texas Register (22 TexReg 11208). Sections 72.1, 72.10, 72.20, 72.80, 72.83, and 
72.90 are adopted without changes and will not be republished. 
sec.72.1 is changed because of codification. The amended definitions in 
sec.72.10 are either changed because of codification, deleted because they are 
redundant to the Code or added for clarity. The changes in sec.72.20 sets 
limited license application requirements. 
Comments opposed to the proposed changes in sec.72.70 were received from 
Trendsetter Staffing, Inc.; Rice and Associates, (on behalf of the Texas Chapter 
of the National Association of Professional Employer Organizations (NAPEO); 
Nations Personnel, Inc.; and, Workforce 2000 because they were burdensome and 
restrictive. The Department is changing the proposed language to language 
recommended by industry representatives and trade groups while still achieving 
departmental goals. 
The changes in sec.72.71 are needed for regulatory records retention. The 
original proposed language was vague and broad in scope and the time frame was 
determined to be burdensome to industry. The Department is changing the proposed 
language. 
The changes in sec.72.81 are required by Code fee changes and license period 
changes. The comments received were strongly opposed to these proposed changes. 
The Department has changed the fee structure to reflect a two year license. 
The changes in sec.72.80 and sec.72.82 are needed for clarity and because of 
Code changes. The amendment in sec.72.83 is made because of a Code change 
requiring or allowing certain information to appear on the license certificate. 
The change in sec.72.90 conforms the rule to Texas Revised Civil Statutes 
Annotated, article 9100 (Vernon 1991) and Texas Administrative Code sec.60 
(1994).
The amendments will function by increasing program integrity. 
The amendments are adopted under Texas Labor Code Annotated sec.91 (Vernon 1997) 
which authorizes the Texas Department of Licensing and Regulation to promulgate 
and enforce a code of rules and take action necessary to assure compliance with 
the intent and purpose of the Code. 
The Code and Article affected by the amendments is Texas Labor Code Annotated 
sec.91 (Vernon 1997) and Texas Revised Civil Statutes Annotated, article 9100 
(Vernon 1991). 

sec.72.70. Responsibility of Licensee. 
(a) All licensees shall notify assigned employees and clients of the name, 
mailing address, and telephone number of the department. The notice shall also 
contain a statement that unresolved complaints concerning a licensee or 
questions concerning the regulation of staff leasing services may be addressed 
to the department. 
(1) The notice required by subsection (a) of this section shall be made a part 
of all contractual agreements between licensees and clients. The notification 
shall appear in a typeface no smaller than the body of the contract and shall be 
printed in bold face, all capital letters or contrasting color of ink, so as to 
be set out from the surrounding written material in a conspicuous manner. 
(2) Each assigned employee of a licensee shall be provided the notice required 
by subsection (a) of this section. The notice shall be provided as a wallet size 
card or as a notice printed not less often than once every six months on a pay 
check stub or a separate piece of paper provided to the assigned employee. 
(3) The licensee shall have each assigned employee sign a document indicating 
they received the required notification set forth in subsection (a) of this 
section, which shall be kept on file for two years after employment is 
terminated. The signed notice may be included as part of a contract or other 
agreement with the assigned employee or may be a separate document. 
(b) License applications and licensee information required on the application 
shall be updated within 45 days after any material change to any of the 
information provided on original or renewal applications. 

sec.72.71. Responsibility of Licensee - Records. 
(a) Upon notification, the licensee shall allow the commissioner or his designee 
to audit records required by the Code and any records required by these rules. 
(b) All licensees shall maintain the following documents for two years following 
the termination of a staff leasing services contract:
(1) insurance coverage documents which may be required for filing with the Texas 
Department of Insurance, or insurance coverage documents which the licensee may 
be required to retain by the Texas Department of Insurance;
(2) all documents pertaining to insurance claims; 
(3) workers compensation coverage documents; 
(4) all documents pertaining to Workers compensation claims; 
(5) staff Leasing Services contracts between the license holder and client 
companies; 
(6) employee tax records which may be required to be retained by or filed with 
the Texas Workforce Commission; 
(7) employee tax records which may be required to be retained by or filed with 
the Internal Revenue Service; and 
(8) employee tax records which may be required to be retained by or filed with 
the county or state. 
(c) This section does not require a licensee to obtain documents that it would 
not otherwise obtain in the course of business and does not require a licensee 
to obtain documents from any other person or entity. This section requires 
licensees to maintain copies of documents actually received in the course of 
business or required to be maintained by the governmental entities listed in 
this section. 

sec.72.81. Fees - Licensing. 
(a) The two year license and two year renewal licensing fee shall be: 
(1) $3,000 for 0 to 249 assigned employees; 
(2) $4,000 for 250 to 750 assigned employees; and, 
(3) $5,000 for more than 750 assigned employees. 
(b) The limited staff leasing services license shall be $1,000.

sec.72.82. Fees - Background Check. 
Non-refundable background check fees, when required, shall be $150 for each 
business/corporation and controlling person(s). 
This agency hereby certifies that the adoption has been reviewed by legal 
counsel and found to be a valid exercise of the agency's legal authority.
Filed with the Office of the Secretary of State on March 26, 1998.
TRD-9804326
Tommy V. Smith
Executive Director
Texas Department of Licensing and Regulation
Effective date: April 15, 1998
Proposal publication date: November 21, 1997
For further information, please call: (512) 463-7357

16 TAC sec.sec.72.21, 72.22, 72.60, 72.91
The Texas Department of Licensing and Regulation adopts the repeal of 
sec.sec.72.21, 72.22, 72.60 and 72.91, regarding staff leasing services, without 
changes to the proposed text as published in the November 14, 1997 issue of the 
of Texas Register (22 TexReg 11044). 
These sections are being repealed because they are either found in the Code or 
are no longer applicable. 
No comments were received regarding adoption of this repeal. 
The repeal is adopted under Texas Labor Code Annotated sec.91 (Vernon 1997), 
which provides the Texas Department of Licensing and Regulation the authority to 
promulgate and enforce a code of rules and take action necessary to assure 
compliance with the intent and purpose of the Code. 
This agency hereby certifies that the adoption has been reviewed by legal 
counsel and found to be a valid exercise of the agency's legal authority.
Filed with the Office of the Secretary of State on March 26, 1998.
TRD-9804327
Tommy V. Smith
Executive Director
Texas Department of Licensing and Regulation
Effective date: April 15, 1998
Proposal publication date: November 14, 1997
For further information, please call: (512) 463-7357

PART VI. Texas Motor Vehicle Board
CHAPTER 105.Advertising Rules
16 TAC sec.sec.105.25, 105.26
The Texas Motor Vehicle Board of the Texas Department of Transportation adopts 
amendments to sec.105.25 concerning sales payment disclosures and simultaneous 
repeals and adopts new sec.105.26, concerning lease payment disclosures. 
Sections 105.25 and 105.26 are adopted with changes to the proposed text as 
published in the January 30, 1998, issue of the Texas Register (23 TexReg 699). 
The amendments to sec.105.25(2) and (4) clarify the required disclosures for the 
terms of repayment and the annual percentage rate, with regard to advertising 
closed-end credit transactions. The Board agreed with comments suggesting 
further clarification of the rule by deleting the specific requirement to 
disclose a balloon payment's due date and adding language to ensure continued 
availability of unit cost disclosure. The Board also concurred with staff 
revisions designed to clarify the triggering terms in sec.105.25. 
New sec.105.26 conforms to revised Federal Reserve Board Regulation M (12 CFR 
Part 213) which implements the Consumer Leasing Act (15 U.S.C. 1667-1667e). The 
revised Regulation M became effective April 1, 1997 with a mandatory compliance 
date of January 1, 1998. The section establishes new disclosure requirements for 
lease contracts, and revises and streamlines lease advertising rules. The Board 
agreed with changes designed to clarify the triggering terms in section (a). 
The effect of the amendments to sec.105.25 will be to better educate the motor 
vehicle buying public and more readily allow consumers to compare financing 
terms. The effect of new sec.105.26 will be to help consumers shop and compare 
lease terms and conform the rule to federal law governing lease payment 
disclosures. 
Comments generally in favor of the amendments to sec.105.25 expressed concern 
that requiring a specific due date of balloon payments in advertisements would 
mandate a level of specificity and precision unattainable in generic 
advertisements. Additional comments suggested that the parenthetical language in 
Section (2) be amended to make it clear that the changes are not intended to 
limit credit advertising disclosures strictly to a payment schedule, but only to 
explain that the Board is not requiring disclosure of anything else. Comments 
supporting new sec.105.26 were also received. 
The American Association of Automobile Manufacturers (AAMA) and the Association 
of International Automobile Manufacturers (AIAM) jointly filed comments 
suggesting additional clarification of the amendments to sec.105.25. The Texas 
Automobile Dealers Association commented in support of the amendments and the 
modifications suggested by AAMA and AIAM. The National Vehicle Leasing 
Association, Texas Chapter, filed comments supporting new sec.105.26. 
The amendments to sec.105.25 and new sec.105.26 are adopted under sec.3.06 of 
the Texas Motor Vehicle Commission Code, Article 4413(36) and (36a), Texas 
Revised Civil Statutes, which provides the Board with the authority to adopt 
rules necessary and convenient to effectuate the provisions of the Code and to 
govern practice and procedure before the agency. 

sec.105.25. Sales Payment Disclosures. 
An advertisement that contains the amount of a down payment, in either a 
percentage or dollar amount; the amount of any payment, in either a percentage 
or dollar amount; the number of payments; the period of repayment; or the amount 
of any finance charge, must include the following: 
(1) the amount or percentage of the down payment; 
(2) the terms of repayment (from which the number of months to make repayment 
and the amount per month can be determined) including any balloon payment; 
(3) the annual percentage rate or APR; and 
(4) the amount of annual percentage rate, if increased, after consummation of 
the credit transaction. 

sec.105.26.Payment Disclosure - Lease. 
(a) An advertisement that promotes a consumer lease and contains the amount of 
any payment; or a statement of any capitalized cost reduction or other payment 
required prior to or by delivery, if delivery occurs after consummation, must 
clearly and conspicuously include the following: 
(1) that the transaction advertised is a lease; 
(2) the total amount due prior to or at consummation or by delivery, if delivery 
occurs after consummation; 
(3) the number, amounts, and due dates or periods of scheduled payments under 
the lease; 
(4) a statement of whether or not a security deposit is required; and 
(5) a statement that an extra charge may be imposed at the end of the lease term 
where the lessee's liability, if any, is based on the difference between the 
residual value of the leased property and its realized value at the end of the 
lease term. 
(b) Except for a periodic payment, a reference to a charge as described in 
subsection (a)(2), i.e., to components of the total due at lease signing or 
delivery, cannot be more prominently advertised than the disclosure of the total 
amount due at lease signing or delivery. 
(c) If a percentage rate is advertised, that rate shall not be more prominent 
than any of the following disclosures stated in the advertisement, with the 
exception of paragraph (19) of this subsection, the notice required to accompany 
the rate. 
(1) Description of payments. 
(2) Amount due at lease signing or delivery. 
(3) Payment schedule and total amount of periodic payments.
(4) Other itemized charges that are not included in the periodic payment. These 
charges include the amount of any liability that lease imposes upon the lessee 
at the end of the lease term. 
(5) Total of payments. 
(6) Payment calculation: 
(A) Gross capitalized cost. 
(B) Capitalized cost reduction. 
(C) Adjusted capitalized cost. 
(D) Residual value. 
(E) Depreciation and any amortized amounts. 
(F) Rent charge. 
(G) Total of base periodic payments. 
(H) Lease term. 
(I) Base periodic payment. 
(J) Itemization of other charges that are a part of the periodic payment. 
(K) Total periodic payment. 
(7) Early termination conditions and disclosure of charges. 
(8) Maintenance responsibilities. 
(9) Purchase option. 
(10) Statement referencing nonsegregated disclosures.
(11) Liability between residual and realized values.
(12) Right of appraisal. 
(13) Liability at the end of the lease term based on residual value. 
(14) Fees and taxes. 
(15) Insurance. 
(16) Warranties or guarantees. 
(17) Penalties and other charges for delinquency. 
(18) Security interest. 
(19) Limitations on rate information. 
(d) If a lessor provides a percentage rate in an advertisement, a notice stating 
that "this percentage may not measure the overall cost of financing this lease" 
shall accompany the rate disclosure. The lessor shall not use the term "annual 
percentage rate," "annual lease rate," or any equivalent term. 
(e) A multi-page advertisement that provides a table or schedule of the required 
disclosures is considered a single advertisement if, for lease terms that appear 
without all of the required disclosures, the advertisement refers to the page or 
pages on which the table or schedule appears. 
(f) A merchandise tag stating any item listed in subsection (a), must comply 
with the disclosures in subsection (a)(1)-(5) of this section by referring to a 
sign or display prominently posted in the lessor's place of business that 
contains a table or schedule of the required disclosures.
(g) An advertisement made through television or radio stating any item listed in 
subsection (a), must state in the advertisement: 
(1) that the transaction advertised is a lease; 
(2) the total amount due prior to or at consummation or by delivery, if delivery 
occurs after consummation; 
(3) the number, amounts, and due dates or periods of scheduled payments under 
the lease; and 
(4) Either: 
(A) a toll-free telephone number along with a reference that such number may be 
used by consumers to obtain the information in subsection (a)(1)-(5) of this 
section. The toll-free telephone number shall be available for no fewer than ten 
days, beginning on the date of the broadcast and the lessor shall provide the 
information in subsection (a)(1)-(5) of this section orally or in writing upon 
request; or, 
(B) direct the consumer to a written advertisement in a publication of general 
circulation in the community served by the media station, including the name and 
the date of the publication, with a statement that the required disclosures in 
subsection (a)(1)-(5) of this section are included in the advertisement. The 
written advertisement shall be published beginning at least three days before 
and ending at least 10 days after the broadcast. 
This agency hereby certifies that the adoption has been reviewed by legal 
counsel and found to be a valid exercise of the agency's legal authority.
Filed with the Office of the Secretary of State on March 26, 1998.
TRD-9804361
Brett Bray
Director, Motor Vehicle Division
Texas Motor Vehicle Board
Effective date: April 15, 1998
Proposal publication date: January 30, 1998
For further information, please call: (512) 463-8630

16 TAC sec.105.26
The Texas Motor Vehicle Board of the Texas Department of Transportation adopts 
the repeal of sec.105.26, concerning lease payment disclosures. 
Existing sec.105.26 is repealed and by separate simultaneous adoption, new 
sec.105.26 is adopted to conform the rule to revised Federal Reserve Board 
Regulation M (12 CFR Part 213) which implements the Consumer Leasing Act. 
The effect of the repeal is to remove inconsistency and conflict with provisions 
of federal law governing lease payment disclosures. 
No comments on the proposed repeal of sec.105.26 were received.
The repeal is adopted under sec.3.06 of the Texas Motor Vehicle Commission Code, 
Article 4413(36) and (36a), Texas Revised Civil Statutes, which provides the 
Board with the authority to adopt rules necessary and convenient to effectuate 
the provisions of the Code and to govern practice and procedure before the 
agency. 
This agency hereby certifies that the adoption has been reviewed by legal 
counsel and found to be a valid exercise of the agency's legal authority.
Filed with the Office of the Secretary of State on March 26, 1998.
TRD-9804360
Brett Bray
Director, Motor Vehicle Division
Texas Motor Vehicle Board
Effective date: April 15, 1998
Proposal publication date: January 30, 1998
For further information, please call: (512) 463-8630

TITLE 22. EXAMINING BOARDS
PART XXIII. Texas Real Estate Commission
CHAPTER 535.Provisions of the Real Estate License Act
General Provisions Relating to the Requirements of Licensure
22 TAC sec.sec.535.1-535.4
The Texas Real Estate Commission (TREC) adopts amendments to sec.535.1, 
concerning when a real estate license is required, sec.535.2, concerning a 
broker s responsibility, sec.535.3, concerning compensation accepted by a 
salesperson, and sec.535.4, concerning compensation paid by a salesperson, 
without changes to the proposed text as published in the January 30, 1998, issue 
of the Texas Register (23 TexReg 707). The amendments replace gender-specific 
terms such as "salesman" or "his" with neutral terms such as "salesperson" or "a 
person s." Adoption of the amendments was necessary for TREC to comply with 
House Bill 814, 75th Legislature (1997) which requires TREC to use the term 
"salesperson" in all its rules and documents no later than January 1, 1999, and 
for TREC to revise its rules for consistency and style.
No comments were received regarding the proposed amendments. 
The amendments are adopted under Texas Civil Statutes, Article 6573a, sec.5(h), 
which authorize the Texas Real Estate Commission to make and enforce all rules 
and regulations necessary for the performance of its duties 
This agency hereby certifies that the adoption has been reviewed by legal 
counsel and found to be a valid exercise of the agency's legal authority.
Filed with the Office of the Secretary of State on March 25, 1998.
TRD-9804298
Mark A. Moseley
General Counsel
Texas Real Estate Commission
Effective date: April 14, 1998
Proposal publication date: January 30, 1998
For further information, please call: (512) 465-3900

Definitions
22 TAC sec.sec.535.12, 535.14.-535.17, 535.20
The Texas Real Estate Commission (TREC) adopts amendments to sec.535.12, 
concerning general definitions, sec.535.14, concerning offers to dispose of real 
estate, sec.535.15, concerning negotiations, sec.535.16, concerning listings, 
sec.535.17, concerning appraisals, and sec.535.20, concerning procuring 
prospects, without changes to the proposed text as published in the January 30, 
1998, issue of the Texas Register (23 TexReg 708). The amendments replace 
gender-specific terms such as "salesman" or "his" with neutral terms such as 
"salesperson" or "a person s." Adoption of the amendments was necessary for TREC 
to comply with House Bill 814, 75th Legislature (1997) which requires TREC to 
use the term "salesperson" in all its rules and documents no later than January 
1, 1999, and for TREC to revise its rules for consistency and style. 
No comments were received regarding the proposed amendments. 
The amendments are adopted under Texas Civil Statutes, Article 6573a, sec.5(h), 
which authorize the Texas Real Estate Commission to make and enforce all rules 
and regulations necessary for the performance of its duties.
This agency hereby certifies that the adoption has been reviewed by legal 
counsel and found to be a valid exercise of the agency's legal authority.
Filed with the Office of the Secretary of State on March 25, 1998.
TRD-9804299
Mark A. Moseley
General Counsel
Texas Real Estate Commission
Effective date: April 14, 1998
Proposal publication date: January 30, 1998
For further information, please call: (512) 465-3910

Exemptions to Requirements of Licensure
22 TAC sec.sec.535.31, 535.33
The Texas Real Estate Commission (TREC) adopts amendments to sec.535.31, 
concerning attorneys at law and sec.535.33, concerning public officials, without 
changes to the proposed text as published in the January 30, 1998, issue of the 
Texas Register (23 TexReg 709). The amendments replace gender-specific terms 
such as "salesman" or "his" with neutral terms such as "salesperson" or "a 
person s." or revise the sections to eliminate use of terms related to a single 
gender. Adoption of the amendments was necessary for TREC to comply with House 
Bill 814, 75th Legislature (1997) which requires TREC to use the term 
"salesperson" in all its rules and documents no later than January 1, 1999, and 
for TREC to revise its rules for consistency and style.
No comments were received regarding the proposed amendments. 
The amendments are adopted under Texas Civil Statutes, Article 6573a, sec.5(h), 
which authorize the Texas Real Estate Commission to make and enforce all rules 
and regulations necessary for the performance of its duties. 
This agency hereby certifies that the adoption has been reviewed by legal 
counsel and found to be a valid exercise of the agency's legal authority.
Filed with the Office of the Secretary of State on March 25, 1998.
TRD-9804300
Mark A. Moseley
General Counsel
Texas Real Estate Commission
Effective date: April 14, 1998
Proposal publication date: January 30, 1998
For further information, please call: (512) 465-3900

The Commission
22 TAC sec.535.41
The Texas Real Estate Commission (TREC) adopts an amendment to sec.535.41, 
concerning procedures of the commission, without changes to the proposed text as 
published in the January 30, 1998, issue of the Texas Register (23 TexReg 709). 
The amendment replaces terms such as"chairman" or "his" with terms which are not 
gender-specific, such as "chairperson" or "the chairperson s." Archaic 
references to enabling legislation also have been revised with current 
citations. Adoption of the amendment was necessary for TREC to comply with House 
Bill 814, 75th Legislature (1997), which replaces gender-specific terms used in 
Texas Civil Statutes, Article 6573a, and for TREC to revise its rules for 
consistency and style.
No comments were received regarding the proposed amendment. 
The amendment is adopted under Texas Civil Statutes, Article 6573a, sec.5(h), 
which authorize the Texas Real Estate Commission to make and enforce all rules 
and regulations necessary for the performance of its duties.
This agency hereby certifies that the adoption has been reviewed by legal 
counsel and found to be a valid exercise of the agency's legal authority.
Filed with the Office of the Secretary of State on March 25, 1998.
TRD-9804301
Mark A. Moseley
General Counsel
Texas Real Estate Commission
Effective date: April 14, 1998
Proposal publication date: January 30, 1998
For further information, please call: (512) 465-3900

Requirements for Licensure
22 TAC sec.sec.535.51-535.53, 535.61, 535.62, 535.66, 535.68, 535.70
The Texas Real Estate Commission (TREC) adopts amendments to sec.535.51, 
concerning general requirements for licensure, sec.535.52, concerning individual 
applicants, sec.535.53, concerning corporations and limited liability companies, 
sec.535.61, concerning examinations, sec.535.66, concerning accreditation, 
sec.535.68, concerning alternative education for brokers, and sec.535.70, 
concerning required coursework, without changes to the proposed text as 
published in the January 30, 1998, issue of the Texas Register (23 TexReg 710). 
The amendment to sec.535.62, concerning waiver of examination, was adopted with 
one change; an additional term "salesman" was replaced by the term 
"salesperson." The amendments to all the sections replace terms such as 
"salesman" or "his" with terms which are not gender-specific, such as 
"salesperson" or "the salespersons". In some cases, additional terms were used 
to broaden the scope of the text and avoid use of single gender-specific terms. 
Section 535.52 also was amended to delete an outdated provision relating to the 
licensing of partnerships under prior law. Adoption of the amendments was 
necessary for TREC to comply with House Bill 814, 75th Legislature (1997) which 
requires TREC to use the term "salesperson" in all its rules and documents no 
later than January 1, 1999, and for TREC to revise its rules for consistency and 
style. 
No comments were received regarding the proposed amendments. 
The amendments are adopted under Texas Civil Statutes, Article 6573a, sec.5(h), 
which authorize the Texas Real Estate Commission to make and enforce all rules 
and regulations necessary for the performance of its duties 

sec.535.61. Examinations and Acceptance of Courses.
(a) To be authorized for admittance to a real estate licensure examination, 
either for salesperson or broker licensure, the applicant must present to the 
examination proctor a certificate of eligibility issued by the commission for an 
initial examination or for a reexamination. Certificates of eligibility will be 
furnished to the sponsoring broker for salesperson applicants, or directly to 
the applicant for broker licensure. 
(b)-(h) (No change.) 
(i) Examination schedules for both salesperson and broker licensure examinations 
are published periodically and reflect the dates, times and locations throughout 
the state that the examinations will be administered. Such schedules will be 
furnished to applicants for their determination of a location at which to take 
the examination. The examination may be taken at any location shown on the 
schedule within the time authorized by the applicant's certificate of 
eligibility. 
(j)-(z) (No change.) 
(aa) The commission may not accept more than one course with the same course 
title and level or same course content and level completed within three years of 
each other, unless there have been significant changes in the subject matter, 
such as the promulgation of new contract forms, major law revisions, and major 
changes in real estate financing. The commission may not accept for core real 
estate credit a core real estate course completed more than ten years prior to 
the date of the applicant's transcript evaluation. The commission may accept for 
real estate related course credit a core course not completed within the ten 
year period established by this section. If the commission has evaluated the 
education of a potential applicant, courses acceptable at the time of the 
evaluation will not be rejected under this subsection for a period of one year 
after the date of the evaluation. Provided, however, the ten-year restriction on 
the acceptance of courses does not apply in either of the following instances. 
(1) The applicant was licensed as a real estate broker or salesperson in this or 
any other state within the five year period prior to filing the application. 
(2) The course was offered by an accredited college or university or by a school 
accredited by the commission. 
(bb)-(hh) (No change.) 

sec.535.62. Waiver of Examination. 
(a) The commission shall waive the examination of an applicant for broker 
license who has, no more than two years prior to the filing of the application, 
been licensed as a broker in this state. The commission shall waive the 
examination of an applicant for salesperson license who has, no more than two 
years prior to the filing of the application, been licensed in this state as a 
broker or salesperson. 
(b) The examination requirements cannot be waived except under the express 
provisions of this section. 
This agency hereby certifies that the adoption has been reviewed by legal 
counsel and found to be a valid exercise of the agency's legal authority.
Filed with the Office of the Secretary of State on March 25, 1998.
TRD-9804302
Mark A. Moseley
General Counsel
Texas Real Estate Commission
Effective date: April 14, 1998
Proposal publication date: January 30, 1998
For further information, please call: (512) 465-3900

TITLE 25. HEALTH SERVICES
PART II. Texas Department of Mental Health and Mental Retardation
CHAPTER 401. System Administration
SUBCHAPTER I. Certification of Community Residential Programs
25 TAC sec.sec.401.551-401.565
The Texas Department of Mental Health and Mental Retardation (department) adopts 
the repeal of sec.sec.401.551-401.565 of Chapter 401, Subchapter I, concerning 
certification of community residential programs, without changes to the text as 
proposed in the January 23, 1998, issue of the Texas Register (23 TexReg 493). 
The repeal is part of a comprehensive reorganization of chapters and subchapters 
within the department's portion of the Texas Administrative Code in conjunction 
with the review of the department's rule base required by Section 167 of Article 
IX of the current Appropriations Act. Community residential programs which have 
been certified under the provisions of this subchapter will be included in the 
QAIS self-assessments conducted by the local mental retardation authorities in 
whose local service areas they are located. The self-assessments will be 
conducted as described in new Chapter 412, Subchapter H, concerning standards 
and quality assurance for mental retardation community services and supports. A 
hearing to accept oral and written testimony from the public was held on 
February 13, 1998, in Austin. No testimony was offered concerning the repeals. 
No written comments were received. 
The repeals are adopted under the Texas Health and Safety Code, sec.532.015, 
which provides the Texas Mental Health and Mental Retardation Board with broad 
rulemaking authority. 
This agency hereby certifies that the adoption has been reviewed by legal 
counsel and found to be a valid exercise of the agency's legal authority.
Filed with the Office of the Secretary of State on March 27, 1998.
TRD-9804410
Charles Cooper
Chairman, Texas MHMR Board
Texas Department of Mental Health and Mental Retardation
Effective date: April 16, 1998
Proposal publication date: January 23, 1998
For further information, please call: (512) 206-4516

CHAPTER 408. Standards and Quality Assurance
SUBCHAPTER A. Standards of the Texas Department of Mental Health and Mental 
Retardation - Quality Assurance
25 TAC sec.sec.408.1-408.10
The Texas Department of Mental Health and Mental Retardation (department) adopts 
the repeal of sec.sec.408.1-408.10 of Chapter 408, Subchapter A, concerning 
standards of the Texas Department of Mental Health and Mental Retardation - 
quality assurance, without changes to the text as proposed in the January 23, 
1998, issue of the Texas Register (23 TexReg 494). 
The repeal is part of a comprehensive reorganization of chapters and subchapters 
within the department's portion of the Texas Administrative Code. The subchapter 
adopts by reference a number of national quality assurance standards as well as 
the department's mental health and mental retardation standards for services and 
supports delivered by local authorities in the community. The mental health 
standards have been incorporated into Chapter 408, Subchapter B, concerning 
mental health community services standards. Key provisions of the 1988 TDMHMR 
Community Standards for Mental Retardation Services have been incorporated into 
new Chapter 412, Subchapter H, concerning standards and quality assurance for 
mental retardation community services and supports, which is adopted 
contemporaneously in this issue of the Texas Register. 
A hearing to accept oral and written testimony from the public was held on 
February 13, 1998, in Austin. No testimony was offered concerning the repeal.
No written comments were received. 
The repeal is adopted under the Texas Health and Safety Code, sec.532.015, which 
provides the Texas Mental Health and Mental Retardation Board with broad 
rulemaking authority. 
This agency hereby certifies that the adoption has been reviewed by legal 
counsel and found to be a valid exercise of the agency's legal authority.
Filed with the Office of the Secretary of State on March 27, 1998.
TRD-9804414
Charles Cooper
Chairman, Texas MHMR Board
Texas Department of Mental Health and Mental Retardation
Effective date: April 16, 1998
Proposal publication date: January 23, 1998
For further information, please call: (512) 206-4516

SUBCHAPTER C. Quality Assurance and Improvement System (QAIS) for Mental 
Retardation Services and Supports
25 TAC sec.sec.408.51-408.63
The Texas Department of Mental Health and Mental Retardation (department) adopts 
the repeal of sec.sec.408.51-408.63 of Chapter 408, Subchapter C, concerning 
quality assurance and improvement system (QAIS) for mental retardation services 
and supports, without changes to the text as proposed in the January 23, 1998, 
issue of the Texas Register (23 TexReg 495). 
Key provisions of the sections are incorporated into new Chapter 412, Subchapter 
H, concerning standards and quality assurance for mental retardation community 
services and supports, as part of a comprehensive reorganization of chapters and 
subchapters within the department's portion of the Texas Administrative Code. 
The new subchapter is adopted contemporaneously in this issue of the Texas 
Register.
A hearing to accept oral and written testimony from the public was held on 
February 13, 1998, in Austin. No testimony was offered concerning the repeals.
No written comments were received. 
The repeals are adopted under the Texas Health and Safety Code, sec.532.015, 
which provides the Texas Mental Health and Mental Retardation Board with broad 
rulemaking authority. 
This agency hereby certifies that the adoption has been reviewed by legal 
counsel and found to be a valid exercise of the agency's legal authority.
Filed with the Office of the Secretary of State on March 27, 1998.
TRD-9804412
Charles Cooper
Chairman, Texas MHMR Board
Texas Department of Mental Health and Mental Retardation
Effective date: April 16, 1998
Proposal publication date: January 23, 1998
For further information, please call: (512) 206-4516

SUBCHAPTER E. Health, Safety, and Rights in Community-based
Mental Retardation Programs
25 TAC sec.sec.408.151-408.164
The Texas Department of Mental Health and Mental Retardation (department) adopts 
the repeal of sec.sec.408.151-408.164 of Chapter 408, Subchapter E, concerning 
health, safety, and rights in community-based mental retardation programs, 
without changes to the text as proposed in the January 23, 1998, issue of the 
Texas Register (23 TexReg 495). 
Key provisions of the sections are incorporated into new Chapter 412, Subchapter 
H, concerning standards and quality assurance for mental retardation community 
services and supports, as part of a comprehensive reorganization of chapters and 
subchapters within the department's portion of the Texas Administrative Code. 
The new subchapter is adopted contemporaneously in this issue of the Texas 
Register. 
A hearing to accept oral and written testimony from the public was held on 
February 13, 1998, in Austin. No testimony was offered concerning the repeals.
No written comments were received. 
The repeals are adopted under the Texas Health and Safety Code, sec.532.015, 
which provides the Texas Mental Health and Mental Retardation Board with broad 
rulemaking authority. 
These sections would affect the Texas Health and Safety Code, sec.534.052 and 
sec.534.058. 
This agency hereby certifies that the adoption has been reviewed by legal 
counsel and found to be a valid exercise of the agency's legal authority.
Filed with the Office of the Secretary of State on March 27, 1998.
TRD-9804411
Charles Cooper
Chairman, Texas MHMR Board
Texas Department of Mental Health and Mental Retardation
Effective date: April 16, 1998
Proposal publication date: January 23, 1998
For further information, please call: (512) 206-4516

CHAPTER 412. Local Authority Responsibilities
SUBCHAPTER H. Standards and Quality Assurance for Mental Retardation Community 
Services and Supports
25 TAC sec.sec.412.351-412.373
The Texas Department of Mental Health and Mental Retardation (department) adopts 
new sec.sec.412.351-412.369, 412.370, 412.371, and 412.373 of Chapter 412, 
Subchapter H, concerning standards and quality assurance for mental retardation 
community services and supports, with changes to the text as proposed in the 
January 23, 1998, issue of the Texas Register (23 TexReg 498). New sec.412.372 
is adopted without changes.
The new subchapter is part of a comprehensive reorganization of chapters and 
subchapters within the department's portion of the Texas Administrative Code. It 
incorporates selected provisions of the following subchapters which are repealed 
in this issue of the Texas Register: Chapter 401, Subchapter I, concerning 
certification of community residential programs; Chapter 408, Subchapter A, 
concerning standards of the Texas Department of Mental Health and Mental 
Retardation -- quality assurance (which adopts by reference the 1988 TDMHMR 
Community Standards for Mental Retardation Services); Chapter 408, Subchapter C, 
concerning quality assurance and improvement system (QAIS) for mental 
retardation services and supports; and Chapter 408, Subchapter E, concerning 
health, safety, and rights in community-based mental retardation programs. 
The new subchapter describes the quality assurance and improvement system (QAIS) 
by which the quality of community-based mental retardation services and supports 
delivered by a local mental retardation authority (MRA) or designated provider 
is assessed by the local MRA or designated provider and the department; minimum 
standards for community based services and supports as required by the Texas 
Health and Safety Code (THSC), sec.534.052, to ensure the health, safety, and 
rights of consumers and their protection from abuse and neglect; and the 
extension of QAIS to cover community residential programs which formerly were 
certified by the department based on the 1988 TDMHMR Community Standards for 
Mental Retardation Services. The minimum standards described in this subchapter 
replace the more prescriptive 1988 TDMHMR Community Standards for Mental 
Retardation Services and are an integral part of QAIS. Local MRAs and designated 
providers collect data as part of the QAIS self-assessment based on these 
standards. The subchapter also includes a section concerning respite services as 
required by the THSC, sec.534.057. 
Throughout the sections the term "individual," as it relates to a person 
receiving mental retardation services and supports, is changed to "consumer"; 
"legally authorized representative" is replaced by the acronym "LAR" except for 
the initial use of the term in sec.412.353; and "local authority" is changed to 
"local MRA." Also, "local" is added before "MRA" wherever the latter appeared 
alone in the sections as proposed, and the phrase "services and supports" 
replaces "supports and services" in sec.sec.412.357 and 412.369. The term 
"abuse/neglect" is added to the phrase "health, safety, and rights" in 
discussions of outcome measures, minimum standards, or the collection of 
required data as part of the MRA's QAIS self-assessment and external evaluation 
processes. The phrase is revised in sec.412.351(2) to read "health, safety, 
rights, and freedom from abuse/neglect," and in sec.sec.412.355(a), 412.357(a), 
and 412.359(b)(2)(B) and(c)(2) to read "health, safety, rights, and 
abuse/neglect." Section 412.351 is revised to more accurately convey the 
subchapter's purpose of describing the department's quality assurance and 
improvement system (QAIS) for community-based services and supports delivered by 
local MRAs and their contract providers, and the minimum standards for those 
services and supports. The section clearly states that those services and 
supports are to be consistent with services provided by department facilities. 
The phrase "for respite services," which inadvertently was omitted from the 
proposed text, is inserted in paragraph (3).
Subsection (b) of sec.412.352, which described general-revenue-funded community 
residential programs formerly certified under a subchapter which is repealed in 
this issue of the Texas Register, is deleted as unnecessary. The phrase "funded 
by the department" is deleted in the stem of sec.412.352(1) to clarify that the 
subchapter applies only to those services and supports delivered by local MRAs 
and their contract providers. This subchapter does not apply to those providers 
which have Medicaid contracts with the department but are neither operated by 
nor have a contract with a local MRA. 
In sec.412.353, the definitions of "AIDS," "community center," "hepatitis B 
immunization," "hepatitis B testing," "HIV testing," "medication 
administration," and "state operated community-based MHMR services division" are 
deleted because they are not used in the subchapter. Definitions for "emergency 
interventions," "organization," "restraint," and "services and supports" are 
added. In the definition of "behavior management," the phrase "emergency 
procedures" is changed to "emergency interventions" to avoid confusion with 
emergency care. The term "defined" is replaced by "described" in the definition 
of "designated provider" to reflect that the term is not defined in statute but 
is described in THSC, sec.534.054. The definition of "HRC (human rights 
committee)" is revised to eliminate unnecessary verbiage, to incorporate a 
reference to designated providers, and to move procedural language for 
incorporation into sec.412.360. The definition of "legally authorized 
representative (LAR)" is revised to be more succinct and clear. In the 
definition of "Outcome Based Performance Measures" the language in subparagraph 
(A) is revised to emphasize that the focus is on both outcomes for consumers and 
outcomes for organizations. The definition of "polypharmacy" is revised to 
reflect the principles of consumer empowerment and involvement in medication 
decisions. The definition of "provider" is revised to clarify that the term 
applies only to those private providers which contract with a local MRA to 
deliver community-based services and supports and to that part of the local MRA 
which directly provides services and supports. The term "neuroleptic" in the 
definition of "tardive dyskinesia" is replaced with "psychoactive" to be 
consistent with terminology used elsewhere in the sections. 
The language of sec.412.354(a) is revised to clarify that local MRAs and 
designated providers will comply with the QAIS Implementation Manual in addition 
to the provisions of this subchapter. The language of sec.412.354(b) is revised 
to clarify that local MRAs will require that the providers which contract with 
them to deliver mental retardation services and supports comply with the 
provisions of this subchapter and with the QAIS Implementation Manual. 
Subsection (c) is revised to clarify that Early Childhood Intervention (ECI) 
programs are not required to comply with the minimum standards described in this 
subchapter. 
The language of sec.412.355(a) is revised to clarify the department's 
expectations for the annual completion of an organization's self-assessment and 
development of a quality improvement plan, specifying that both must be 
completed within 30 days following the anniversary date of the organization's 
initial self-assessment. Subsection (b)(2)(A) is revised to clarify membership 
guidelines for self-assessment teams; where the proposed text recommended that a 
consumer and/or family member serve on the team, the revised language recommends 
including a "consumer, LAR, or actively involved family member." Language is 
added in sec.412.356(a) which references the QAIS Implementation Manual as an 
exhibit to the subchapter. In sec.412.356(c), "program coordinator/case manager" 
is replaced with "service coordinator" to be consistent with terminology in 
other sections and to reflect current usage trends. In addition, language is 
added to that same subsection specifying that written consent will be obtained 
to conduct interviews with the consumer, LAR, if any, and persons who are 
actively involved in the consumer's life. The second sentence of subsection (d) 
is revised to clarify that self-assessment interviews will be conducted with 
both consumers and the LARs, if any. 
The misleading construction of sec.412.357(a) is corrected to specify that 
outcome measures for organizations support the findings of the outcome measures 
for people. As proposed, the subsection appeared to refer to the organization 
conducting the self-assessment, i.e., the local MRA or designated provider. A 
sentence is added in that same subsection which specifies that statistical data 
related to the outcomes concerning health, safety, rights, and abuse/neglect are 
to be submitted to the department for each state fiscal year quarter no later 
than 30 days after the close of that quarter. 
The word "plan" is added following "quality improvement" in the first sentence 
of sec.412.358(a) to correct an omission in the proposed text. A reference to 
the number of outcomes for organizations was deleted because the number is 
different in the recently released 1998 Outcome Based Performance Measures. Upon 
the adoption of this new subchapter, the section which adopts by reference the 
1993 Outcome Based Performance Measures will be proposed for public comment to 
adopt the 1998 Outcome Based Performance Measures by reference with an expected 
effective date of September 1, 1998. In subsections (c) and (e), the phrase 
"sampling of the relevant outcomes" is replaced by "sampling of consumers for 
the presence and absence of outcomes" to clarify that local MRAs and designated 
providers will interview a smaller sample of consumers each quarter to determine 
the presence or absence of all outcomes, not just those found to be absent 
during the annual self-assessment. 
A reference to sec.412.355(a) is added in sec.412.359(a) to clarify the 
timelines local MRAs and designated providers must follow when submitting their 
annual self-assessment results and quality improvement plans. In that same 
subsection, new paragraph (1) is added which specifies that the foremost purpose 
of the external validation portion of QAIS is to assess the quality of the 
services and supports delivered by local MRAs and designated providers; 
subsequent paragraphs are renumbered. Language requiring consent to be obtained 
from the consumer or the LAR, if any, is added in subsection (b)(1)(C). In 
subsection (b)(1)(E), "the" is added in two places where it was inadvertently 
omitted in the proposed text. In subsection (b)(2), "are" is replaced with 
"including" to introduce a listing of the on-site activities conducted by 
external validation teams to confirm the results of self-assessments. In 
(b)(2)(B), "consumer" is deleted to reflect that the responses of all persons 
interviewed as part of the external validation activities will be reviewed, 
including those of the consumer, the LAR, if any, and other persons who are 
actively involved with a consumer. Language is added in subsections (d) and (e) 
which references the QAIS Implementation Manual as an exhibit to the subchapter. 
Language in subsection (e) is revised to clarify that desk reviews will be 
conducted by the department of all self-assessments and quality improvement 
plans and to move language requiring that self-assessments be conducted annually 
with subsequent development of a quality improvement plan to sec.412.355(a). The 
first sentence in subsection (e) is deleted and the requirement that local MRAs 
and designated providers conduct a self-assessment and develop quality 
improvement plan is incorporated into sec.412.355(a). References to the numbers 
of outcomes for people and organizations were deleted in subsection (f) because 
the numbers are different in the recently released 1998 Outcome Based 
Performance Measures. The first sentence of subsection (h) is rewritten to 
correct an awkward construction. 
In sec.412.360(a), language is added requiring that information regarding rights 
be provided to both the consumer and LAR, if any, upon the consumer's admission 
to services and annually thereafter. A new subsection (b) is added to 
incorporate procedural and membership information which was proposed in the 
definition of Human Rights Committee (HRC) but which more appropriately belongs 
in this section concerning full expression of consumer rights. The membership 
information is revised to clarify that certain provisions are requirements and 
not suggested guidelines; in addition, the suggestion that one third of the 
members not be affiliated with the organization is revised to require that at 
least one member not be affiliated. Subsequent subsections are relettered. 
Paragraph (2) of relettered (c) is revised to correct its awkward construction 
and to create new paragraph (3), which emphasizes that a review by the human 
rights committee is a third aspect of due process when limitations of consumers' 
rights are proposed. The term "individual" is eliminated as excess verbiage in 
three places in relettered subsection (d). The title of the section is revised 
to replace the phrase "individual rights" with "legal and civil rights." In 
sec.412.362, subsection (b) is deleted and the language concerning consumer 
access to appropriate medical and preventive health care is moved to subsection 
(c) to replace the phrase "ensuring the availability of physician." Subsection 
(c) is relettered and now states that MRAs and designated providers will assist 
consumers in accessing various health care services. The subsequent sections 
also are relettered. New subsection (c) is revised to require the policies and 
procedures of the local MRA or designated provider to address appropriate 
documentation for notifying a consumer's LAR, if any, of the use of restraint or 
psychoactive medication during a medical or dental procedure. In sec.412.363, 
subsection (b)(4) is rewritten to correct an awkward construction. A reference 
to designated providers is added in subsection (c) consistent with usage in 
other sections. 
In sec.412.364(b), the "i.e." in the parenthetical phrase is replaced by "e.g." 
and the term "physical" is deleted to be consistent with terminology used 
elsewhere in the sections. In subsection (c), the language is revised to use 
"emergency intervention," a definition added in response to public comment. In 
subsections (e) and (f) "and/or intrusive" is added between "restrictive" and 
"interventions" to be consistent with the preferred usage in subsection (b). The 
second sentence of subsection (c) is revised to indicate that a functional 
analysis will be conducted to determine if a behavior management program is 
needed; as proposed, the language required that a program be developed. A 
grammatical error is corrected in (f) by replacing "are" with "is." The acronym 
"HRC" is substituted for "human rights committee" in subsection (h)(1) because 
it was introduced earlier in sec.412.360(b). Subsection (h)(3) is revised to use 
the term consumer consistent with usage elsewhere in the sections. The order of 
paragraphs (2) and (3) in sec.412.365 is reversed to present a more logical 
progression of consideration. As proposed, the order of the paragraphs appeared 
to suggest that physicians were expected to obtain a second opinion regarding 
the safety of polypharmacy only if tardive dyskinesia was suspected. 
In sec.412.366(d) and (e) the term "state authority" is replaced with 
"department" to be consistent with usage elsewhere in the subchapter. 
In sec.412.367(3), language is added specifying that all sites of service 
delivery must meet the appropriate chapter of either the most recent edition of 
the Life Safety Code or the edition used by the authority having jurisdiction 
over that site. 
References to a consumer's LAR are added in sec.412.368(2) to clarify that if a 
consumer has an LAR, that person will be encouraged to participate in the 
selection of a qualified respite provider, and that family members or other 
actively involved persons will be involved in the selection with the consent of 
the consumer or LAR, if any. In paragraph (6), the language is revised to 
clarify that a respite plan will be developed for each consumer. Language is 
added in sec.412.369(d) requiring that a consumer's LAR, if any, will be 
encouraged to participate in the consumer's planning team. Language is revised 
in paragraphs (2) and (4) of that subsection to reflect the principles of 
consumer empowerment and involvement in making decisions about needs, goals, 
services and supports. 
New subsection (b) is added to sec.412.370 which references the QAIS 
Implmentation Manual as Exhibit E; the proposed subsection (b) is relettered as 
subsection (c). 
Language referencing QAIS start-up training is deleted in sec.412.371(a), and 
language is added in subsection (c) to clarify that training materials for the 
self-assessment and quality improvement plan teams are provided by The Council 
on Quality and Leadership in Supports for People with Disabilities, formerly The 
Accreditation Council. 
A hearing to accept oral and written testimony from the public was held on 
February 13, 1998, in Austin. No oral or written testimony was offered. Written 
comments were received from the following members of the public: the 
parent/guardian of a state school resident, Garland; the guardian of a state 
school resident, Dallas; Parent Association for the Retarded of Texas (PART), 
Austin; The Arc of Texas, Austin; ACCESS (local MRA for Anderson and Cherokee 
counties), Jacksonville; The Gulf Coast Center, Galveston; and MHMRA of Harris 
County, Houston. 
A commenter suggested that instead of borrowing the Outcome Based Performance 
Measures from The Council, the department should develop its own list in 
priority order so even consumers with the most profound levels of mental 
retardation are included and their needs addressed. The commenter noted that The 
Council represents a wide spectrum of disabilities and that its focus is not 
specific to the needs and problems of consumers with mental retardation. The 
commenter also stated that the department seems to expect consumers to have more 
choices about where and with whom to live, where to work, their daily routine, 
and other issues than 90 percent of the general population. The department 
responds that the Outcome Based Performance Measures are not "borrowed." 
Instead, the department, on the recommendation of a broad-based workgroup and 
with the support of the Texas Mental Health and Mental Retardation Board, 
contracted with The Council to use the Outcome Based Performance Measures as the 
foundation QAIS. The department agrees that The Council works with organizations 
which assist consumers with a wide range disabilities, but disagrees that The 
Council's copyrighted system of quality improvement and measurement is 
inappropriate for evaluating the delivery of mental retardation services and 
supports in the community. 
One commenter questioned whether ICF/MR and HCS certified programs which are 
operated by or contracted with by the local MRA are required to comply with both 
the QAIS standards and the appropriate certification standards. The department 
responds that compliance with both is required when the program either is 
operated by or contracts with the local MRA. 
Two commenters requested that either "consumer" be defined in sec.412.353 to 
encompass both the individual with mental retardation and the individual's LAR, 
or that "LAR" be added everywhere the term "consumer" is used in the subchapter. 
While declining in this subchapter to equate "consumer" with both the individual 
with mental retardation and the individual's parent, managing conservator, or 
guardian, the department recognizes the importance of LARs for those consumers 
who have them and notes that in some situations the consumer and family 
(including LAR, when one exists) are considered to be the joint recipients of 
services and supports while in other situations, the consumer alone is the 
recipient. Language is revised in the following sections to reference both 
consumers and LARs when the issues of appropriate involvement in the QAIS 
process or consent are addressed: sec.sec.412.355(b)(2)(A), 412.356(d), 
412.362(c), 412.368(2), and 412.369(d). 
Two commenters requested that a new paragraph be added to the definition of 
Human Rights Committee requiring that at least one member be a LAR. The 
department responds that the stem of the definition specifies that members may 
include LARs. 
A commenter noted that the definition of the HRC does not permit a local MRA's 
public responsibility committee (PRC) to function as the HRC. The department 
acknowledges that the two committees have different membership critieria, and 
specifically notes that the THSC, sec.596.004, prohibits MRA employees and 
people residing outside the local MRA's service area from serving on the PRC, 
whereas these limitations are not placed on the HRC. 
Two commenters objected to the use of the term "planning team" and requested 
that "interdisciplinary team," which is defined in THSC, sec.596.001, be used 
instead. The department responds that the use of "planning team" does not 
conflict with the statute, and more accurately captures the statewide diversity 
in how consumers and their personal support networks (including LARs, family 
members, and friends) approach the development of a service and support plan. 
The department further notes that the definition reflects the reality that the 
consumer (and LAR, if any) can and should be in control of determining what type 
of services and supports are needed and appropriate. A commenter noted that the 
definition of "respite services" permits up to 30 consecutive days of respite 
while the mental retardation service definition in both the current performance 
contract for local MRAs and the draft contract for fiscal year 1999 permit only 
29 days. The department will revise the performance contract to use the 30-day 
figure. 
A commenter noted that the definition of restraint does not incorporate the 
previous standard that use for less than five minutes of a restraint procedure 
described in the department's PMAB (Prevention and Management of Aggressive 
Behavior) curriculum does not constitute restraint. The department responds that 
the more restrictive view of restraint reflected in the definition is deliberate 
and is intended to be more respectful of consumer rights and personal dignity. 
A commenter noted that the deadline in sec.412.355(a) for local MRAs to complete 
annual self-assessments and develop quality improvement plans is inconsistent 
with the requirement in the performance contracts. The department responds that 
language regarding timelines will be eliminated from the performance contract 
and local MRAs will be referred to the rule to determine when self-assessments 
and quality improvement plans must be completed and submitted to Central Office. 
The language of sec.412.355(a) is revised to clarify the department's 
expectations for the annual completion of an organization's self-assessment and 
development of a quality improvement plan. 
A commenter requested that inclusion of at least one consumer or family member 
on the self-assessment team should be required rather than simply recommended in 
sec.412.355(b)(2). The commenter also requested that MRAs and designated 
providers be required in sec.412.355(c) to include a peer reviewer from an 
organization of similar size; as proposed, the provision is simply a suggestion. 
The commenter acknowledged that permitting MRAs some degree of flexibility in 
determining the composition of their self-assessment teams is necessary, 
especially for small MRAs, but stated that having team members from outside the 
organization is important. The department responds that permitting MRAs 
flexiblity in determining the composition of their self-assessment teams is 
essential to the integrity of the self-assessment process, and is consistent 
with the key QAIS values of choice and individualization. The department 
strongly encourages organizations to include consumers, LARs and involved family 
members, as well as peer reviewers, on the self-assessment team, but notes that 
serving requires a week of training and regular involvement in the required 
quarterly interview to maintain skills. This constitutes a significant 
commitment of time and energy even for MRA staff, and some small MRAs especially 
have not been able to recruit consumers, LARs, or family members to serve on the 
self-assessment teams. The same issues apply to the use of peer reviewers. For 
these reasons the department prefers not to mandate the inclusion of consumers, 
LARs, family members, or peer reviewers at this time. 
Two commenters requested the addition of language in sec.412.356(d) requiring 
that self-assessment interviews involving "other significant people in the 
consumer's life" be conducted only with the consent of the consumer or the LAR. 
The department responds that subsection (c) has been revised to clarify that 
such consent is necessary. 
Two commenters recommended deleting the last sentence of sec.412.356(d), 
explaining that it implies the consumer or LAR could not refuse certain services 
such as residential services in a group home or supported employment without 
first trying. The department responds that the sentence is not intended to 
interfere with the right of the consumer or LAR to make decisions and choices 
about services and supports. The provision is intended to ensure that local MRAs 
and designated providers provide information about the full range of services 
and supports to enable consumers and LARs to make informed choices. A commenter 
noted that "plan" is missing after "quality improvement" in sec.412.358(a). The 
department agrees and adds the omitted word. 
Two commenters recommended adding a statement in sec.412.359(a) that one purpose 
of the external validation portion of QAIS is to ensure quality of services and 
supports for consumers and LARs. The department agrees with the spirit of the 
recommendation, and adds new paragraph (1) stating that external validation is 
intended to "assess the quality of services and supports" followed by a 
renumbering of the subsequent two paragraphs. 
Two commenters recommended adding "and/or LARs" in sec.412.359(b)(2)(B). The 
department modifies the subparagraph to reflect that the responses of all 
persons interviewed as part of the external validation activities will be 
reviewed, including those of the consumer, the LAR, if any, and other persons 
who are actively involved with a consumer. 
A commenter suggested that the number of outcomes listed in sec.412.359(f) 
reflects The Council's 1993 Outcome Based Performance Measures and should be 
changed to be consistent with the newly revised edition. The department deletes 
the numbers and explains that the subchapter adopts by reference the 1993 
Outcome Based Performance Measures because the revised edition had not yet been 
released when the subchapter was proposed in January. The 1998 version will be 
proposed for adoption by reference upon the adoption of the new subchapter in 
April. 
A commenter stated that local MRAs are not funded to provide health care 
services as is implied by the wording of sec.412.362(b) and (c). The department 
agrees that the provisions as proposed are misleading and has revised the 
section as described earlier in this preamble. 
A commenter stated that local MRAs can only "ensure" the requirements imposed in 
sec.412.367 concerning environmental requirements for those programs they 
operate or fund. The department agrees with the commenter's concern and responds 
that the application section of the subchapter, both as proposed and as 
strengthened by revisions, clearly states that the local MRA is responsible only 
for those programs it operates or contracts for. 
A commenter recommended that the requirement in sec.412.367(3) for all service 
sites to meet the appropriate chapter of the most recent edition of the Life 
Safety Code be revised to require compliance with the edition used by the 
regional fire marshal and building code offices. The department agrees that the 
provision is inadequate as proposed and revises the paragraph to require that 
"all sites meet the appropriate chapter of the most recent edition of the Life 
Safety Code (LSC) published by the National Fire Protection Association (NFPA) 
or the edition used by the authority having jurisdiction over that site." 
The sections are adopted under the THSC, sec.532.015, which provides the Texas 
Mental Health and Mental Retardation Board with broad rulemaking authority; 
sec.534.052, which requires the board to adopt rules to ensure the adequate 
provision of community-based mental retardation services by local MRAs; 
sec.534.058, which requires the department to develop standards of care for 
services provided by local MRAs and their subcontractors to ensure that the 
quality of those services is consistent with the quality of care available in 
department facilities; and sec.534.057 which requires the department to adopt 
rules concerning respite services. 

sec.412.351. Purpose. 
This subchapter describes the: 
(1) quality assurance and improvement system (QAIS) for community-based mental 
retardation services and supports which is intended in part to ensure that the 
quality of those services and supports is consistent with services provided by 
facilities of the Texas Department of Mental Health and Mental Retardation, as 
required by the Texas Health and Safety Code (THSC), sec.534.058;
(2) minimum standards, as required by the THSC, sec.534.052, for ensuring the 
health, safety, rights, and freedom from abuse and neglect of consumers 
receiving community-based mental retardation services and supports; and 
(3) minimum standards for respite services, as required by THSC, sec.534.057. 

sec.412.352. Application. 
The provisions of this subchapter apply to community-based mental retardation 
services and supports delivered by: 
(1) local MRAs and the providers with which they contract; and 
(2) designated providers. 

sec.412.353. Definitions. 
The following words and terms, when used in this subchapter, have the following 
meanings, unless the context clearly indicates otherwise: 
(1) Actively involved -- Involvement with the consumer which the planning team 
deems to be of a quality nature based on the following:
(A) observed interactions of the person with the consumer;
(B) advocacy for the best interests of the consumer; 
(C) knowledge of and sensitivity to the consumer's preferences, values, and 
beliefs; 
(D) ability to communicate with the consumer; and 
(E) availability to the consumer for assistance or support when needed. 
(2) Behavior management -- All efforts to increase socially adaptive behavior 
and to modify maladaptive or problem behaviors and replace them with behaviors 
and skills that are adaptive and socially productive. This broad category 
includes behavior interventions, emergency interventions, and both formal and 
informal planned interactions intended to increase socially adaptive behavior 
and/or to modify maladaptive or problem behaviors. 
(3) CARE -- The department's Client Assignment and Registration System, an on-
line data entry system developed to provide demographic and other data about 
consumers served by the department. 
(4) Department -- The Texas Department of Mental Health and Mental Retardation. 
(5) Designated provider -- As described in the Texas Health and Safety Code, 
sec.534.054, a service provider with whom the department contracts for the 
delivery of a specific community-based mental retardation service in a specified 
local service area of the state if the MRA for that local service area is unable 
or unwilling to provide that service. The term does not include a local MRA. 
(6) Emergency care -- Procedures and interventions designed to respond to 
medical emergencies. 
(7) Emergency interventions -- Procedures deemed necessary to control severely 
aggressive or destructive behaviors that place the consumer or others in 
imminent danger of harm. This may include restraint. These procedures are used 
on an emergency basis in response to behaviors which could not reasonably be 
anticipated, and are outside the scope of planned interventions in the context 
of an approved behavior modification program. 
(8) Hepatitis B -- An infection of the liver caused by the hepatitis B virus 
(HBV). 
(9) HIV -- Human immunodeficiency virus. 
(10) HRC (human rights committee) -- A committee appointed by the local MRA or 
designated provider with the authority to ensure that the civil and legal rights 
of consumers are acknowledged, respected, and protected through the review of 
organizational practices and approaches. The HRC is a mechanism for ensuring due 
process. 
(11) Informed consent (legally adequate consent) -- A term consistent with 
provisions of the Texas Health and Safety Code, sec.591.006, concerning consent 
obtained from a consumer which is legally adequate when each of the following 
conditions has been met: 
(A) legal status: The consumer giving the consent is of the minimum legal age 
and currently does not have a guardian appointed to manage personal affairs by 
an appropriate court of law; 
(B) comprehension of information: The consumer giving the consent has been 
informed of and comprehends the nature, purpose, consequences, risks, and 
benefits of and alternatives to the procedure, and the fact that withholding or 
withdrawal of consent shall not prejudice the future provision of care and 
services to the consumer; and 
(C) voluntariness: The consent has been given voluntarily and free from coercion 
and undue influence. 
(12) Legally authorized representative (LAR) -- The parent or managing 
conservator of a consumer who is a minor or, the guardian of the person of an 
adult consumer. 
(13) Local mental retardation authority (MRA) -- As defined in the Texas Health 
and Safety Code, sec.531.002, an entity to which the Texas Mental Health and 
Mental Retardation Board delegates its authority and responsibility within a 
specified region for planning, policy development, coordination, and resource 
development and allocation and for supervising and ensuring the provision of 
mental retardation services to consumers in one or more local service areas. 
(14) Organization -- A local MRA or designated provider.
(15) Outcome Based Performance Measures -- The Council's copyrighted system of 
quality improvement and measurement that emphasizes responsiveness on the part 
of service organizations to the individual needs of that organization's 
consumers rather than traditional compliance with established standards. The 
system: 
(A) focuses on outcomes for consumers and the organizational processes that 
contribute to those outcomes; 
(B) is concise, focusing on those priority outcomes that people with 
disabilities indicate are most important to them; and 
(C) can be used with all services and programs -- residential, vocational, 
social, or residential -- and for consumers with different disabilities.
(16) Planning team -- The consumer, the LAR, if any, and those persons chosen by 
the consumer and LAR, if any, who assess the consumer's treatment, training, and 
service/support plan needs and make recommendations to the local MRA or 
designated provider for services which will enable the consumer to meet desired 
personal outcomes. Team members typically could include: 
(A) family members or other persons who are actively involved in the life of the 
consumer; 
(B) persons who are professionally qualified, certified, or both, in various 
professions with special training and experience in the diagnosis, management, 
needs, and treatment of consumers; 
(C) persons who are directly involved in the delivery of mental retardation 
services to the consumer; and 
(D) member(s) of the local MRA's public responsibility committee (PRC), if 
requested by the consumer with the ability to provide legally adequate consent 
or the LAR, if any, or the PRC in instances when the consumer does not have 
either the ability to provide legally adequate consent or an LAR.
(17) Polypharmacy -- Simultaneous use by a consumer of more than one 
psychoactive medication from the same medication class, except for those periods 
of overlapping use when a consumer is changing from one drug to another. 
(18) Provider -- 
(A) Any organization or entity which contracts with a local MRA to provide 
mental retardation services and supports; or 
(B) that part of a local MRA directly providing mental retardation services and 
supports.
(19) Psychoactive medication -- Any medication which is prescribed for the 
primary intent of improving cognition, affective state, and/or behavior. 
(20) Quality Assurance and Improvement System (QAIS) -- The framework by which 
local MRAs and designated providers measure the quality, efficiency, and 
effectiveness of their organizations and the services and supports they provide 
to consumers either directly or by contracting with providers. It is an outcome-
oriented system that concentrates on measuring desired results and the processes 
used to obtain those results, as defined by the consumer. The system is based on 
The Council's Outcome Based Performance Measures and involves three stages: 
(A) self-assessment; 
(B) quality improvement plan; and 
(C) external validation. 
(21) Respite services -- Services which assist both consumers and their families 
during times of crisis or other specific events. Designed to be of short 
duration, the services may vary from one day to a maximum of 30 consecutive 
calendar days per episode. Respite services may be provided either in the 
consumer's home or in a residence operated or contracted for by the local MRA. 
(22) Restraint -- The use of physical force or a mechanical device to 
involuntarily restrict the free movement of the whole or a portion of a 
consumer's body to control physical activity. 
(23) Services and supports -- Programs and assistance for consumers with mental 
retardation that may include a determination of mental retardation, planning 
team recommendations, education, special training, supervision, care, treatment, 
rehabilitation, residential care, and counseling, but does not include those 
services or programs that have been explicitly delegated by law to other state 
agencies. 
(24) Tardive dyskinesia -- A possible side effect of psychoactive medication 
characterized by involuntary and abnormal movements which are purposeless and 
stereotypical. 
(25) The Council -- The Council on Quality and Leadership in Supports for People 
with Disabilities, formerly The Accreditation Council, is a diversified quality 
enhancement organization with an international focus in the field of human 
services which: develops standards of quality; develops and disseminates 
materials; provides training, consultation, and technical assistance; and 
operates an accreditation program for organizations which serve people with 
disabilities. 
(26) Tuberculosis -- A disease spread through airborne particles containing 
tubercle bacilli which become established in the lungs and may spread throughout 
the body. 

sec.412.354. Responsibilities of Local MRAs and Designated Providers. 
(a) Through its contract with the department, the local MRA or designated 
provider shall assure its compliance with the provisions of this subchapter and 
the QAIS Implementation Manual, which is referenced as Exhibit E in 
sec.412.370(b) of this title (relating to Exhibits). 
(b) Through its contracts with other providers, the local MRA shall require 
compliance with the provisions of this subchapter and the QAIS Implementation 
Manual, which is referenced as Exhibit E in sec.412.370(b) of this title. 
(c) Programs under the purview of the Texas Interagency Council on Early 
Childhood Intervention (ECI) are not required to be surveyed as a part of QAIS 
nor are they required to comply with minimum standards described in this 
subchapter. 
(d) Nothing in this subchapter is intended to diminish or negate any contractual 
requirement on the organization, including a contractual requirement to comply 
with applicable department rules. 

sec.412.355. Self-assessment by Local MRAs and Designated Providers. 
(a) During every fiscal year, each local MRA and designated provider will 
conduct a self-assessment with the subsequent development of a quality 
improvement plan as described in sec.412.358 of this title (relating to Quality 
Improvement Plan). These will be completed within 30 days following the 
anniversary date of the initial self-assessment and submitted to the 
department's Office of Quality Management. The self-assessment is based on The 
Council's Outcome Based Performance Measures which are adopted by reference as 
Exhibit A in sec.412.370 of this title (relating to Exhibits) and is designed to 
evaluate two aspects of quality, which are: 
(1) outcomes of services that contribute to the quality of life (outcome 
measures for people); and 
(2) the organizational structure and processes that support quality services and 
supports (outcome measures for organizations). 
(b) The self-assessment is conducted by a team comprising at least four people, 
including the team coordinator. 
(1) The chief executive officer (CEO) or designee of the local MRA or designated 
provider names a staff member as team coordinator. 
(2) The team coordinator selects other members of the team with consideration 
given to both the communication needs and the diverse cultural, ethnic, and 
religious backgrounds of the consumers who receive services and supports from 
that local MRA or designated provider. Recommended team members include: 
(A) at least one consumer, LAR, or actively involved family member; 
(B) one direct care staff person; 
(C) one person from the local community who has no affiliation with the 
organization; and 
(D) one administrative staff person. 
(c) The local MRA or designated provider also may choose to include on the team 
persons from other local MRAs or designated providers of similar size. Having a 
team member from outside the organization may prove beneficial when reviewing 
the outcome measures for organizations. 
(d) Team members will receive training in the self-assessment process in 
addition to an orientation which includes an overview of the consumers being 
reviewed, the importance of confidentiality, scheduling, and team assignments.
(1) The training is based on model curriculum provided by the department, as 
described in sec.412.371 of this title (relating to Training.)
(2) Each team member will sign a statement agreeing to respect the confidential 
nature of the information concerning the consumers being reviewed. 
(e) The self-assessment will be performed using guidelines provided by the 
department, applicable department rules, and the organization's contract with 
the department. 
(f) The self-assessment process should take no longer than 15 working days with 
a formal feedback session immediately following the completion of the self-
assessment. This timeframe permits the organization to gain a "snapshot" of 
itself and maintain the continuity and validity of the self-assessment. The 
self-assessment is divided into the following key components: 
(1) visits to settings where services and supports are provided for: 
(A) discussion and interaction with consumers, staff, service coordinators, and 
other significant people; 
(B) observation of the environment; and 
(C) review of documentation, when necessary; 
(2) the completion of all individual consumer interviews;
(3) the team synthesis and consensus process including;
(A) compilation of interview or rating sheets; and 
(B) a consensus to generate a summary report of findings; and 
(4) feedback session for the CEO and invited staff.

sec.412.356. Outcome Measures for People. 
(a) The outcome measures for people survey is designed to measure the impact of 
services and supports on the lives of consumers. 
(b) A stratified, random sample for the survey is developed as described in the 
QAIS Implementation Manual, which is referenced as Exhibit E in sec.412.370(b) 
of this title (relating to Exhibits). Technical assistance in developing the 
sample is available from the department's Office of Research and Evaluation. 
(c) The service coordinator for each consumer included in the survey will be 
contacted by the team coordinator or another team member to explain the 
assessment process and to obtain the written consent of the consumer or the 
consumer's LAR, if any, as described in Chapter 403, Subchapter K of this title 
(relating to Client-Identifying Information) to conduct interviews with the 
consumer, LAR, and other significant people in the consumer's life.
(d) The presence of each outcome is determined by the consumer or the consumer's 
LAR. It is evidenced through the interview process with the consumer, the LAR, 
if any, and the other significant people in the consumer's life. An outcome also 
can be met if it is absent but the consumer or legal representative has 
determined that it is unimportant to the consumer. There should be evidence that 
the consumer or LAR has an experiential context for making such a choice. 
(e) The interview is supplemented by observations of the consumer's environment 
and, when necessary, by reviewing documentation to resolve perceived conflicts 
in information. 
(f) Each outcome measure will be addressed with every consumer chosen for the 
interview process. 
(g) The Outcome Measures for People Results Worksheet is adopted by reference as 
Exhibit B and the Outcomes for People Scoring Grid is adopted by reference as 
Exhibit C in sec.412.370 of this title. 

sec.412.357. Outcome Measures for Organizations.
(a) The outcome measures for organizations support the findings of the outcome 
measures for people. The issues of health, safety, rights, and abuse/neglect are 
reviewed through assessment of the services and supports provided by the 
organization. Data related to health, safety, rights, and abuse/neglect outcomes 
are submitted to the department for each state fiscal year quarter no later than 
30 days after the close of the quarter. 
(b) The organization's written documentation, together with interviews of 
designated staff and other stakeholders and the observations of team members, 
form the basis for reviewing the outcomes for organizations. Documentation of a 
utilization management process, policies and procedures, and strategic planning 
will be in evidence. 
(c) An organization profile will be generated by the team which identifies the 
extent to which processes contribute to outcomes, strengths in meeting outcomes, 
and areas needing improvement. 
(d) The Outcomes for Organizations Results Worksheet is adopted by reference as 
Exhibit D in sec.412.370 of this title (relating to Exhibits).

sec.412.358. Quality Improvement Plan.
(a) The quality improvement plan is intended to be a dynamic document that 
guides the organization in assuring that improvements are made which support 
consumers in realizing their desired outcomes. Consistent with the quality 
improvement plan, the organization will implement changes which facilitate its 
achievement of the outcomes for organizations described in Exhibit A in 
sec.412.370 of this title (relating to Exhibits). 
(b) A team selected by the organization's CEO to coordinate the quality 
improvement plan activities should include at least one representative from the 
self-assessment team to ensure the continuity of the process. 
(c) The quality improvement plan is developed within 30 calendar days of the 
feedback session described in sec.412.355(f)(4) of this title (relating to Self-
assessment by Local MRAs and Designated Providers) and will be reviewed, 
amended, and acted upon as determined necessary by a quarterly sampling of 
consumers for the presence and absence of outcomes. 
(d) In developing the quality improvement plan, the team analyzes the self-
assessment data and other relevant information such as the organization's 
strategic plan or reports of other regulatory entities, reviews the 
organization's monitoring of critical issues data analysis, develops a concise 
profile of the strengths and weaknesses evident in critical areas, determines 
areas for improvement, and arranges these in priorities based upon the 
organization's mission and its contract with the department. 
(1) As part of the analysis, strategies that address high priority issues and 
barriers to opportunities for improvement are identified and described. 
(2) Ultimately, the team consolidates the results of these efforts into a 
written quality improvement plan consistent with any additional strategy or 
planning done by the organization. 
(e) The following should be reflected in the quality improvement plan: 
(1) the organization's mission statement; 
(2) goals essential for the fulfillment of the mission;
(3) action steps which will lead to the accomplishment of goals and which are 
specific enough to articulate responsibilities across the organization; 
(4) a quarterly evaluation process which will document progress towards goals, 
illuminate areas for further quality enhancement endeavors, and include a 
sampling of consumers for the presence and absence of outcomes; and 
(5) an evaluation process which describes and assesses leadership and its 
involvement in setting direction, and developing and maintaining a leadership 
system that supports the mission. 

sec.412.359. External Validation. 
(a) The local MRA or designated provider will submit its annual self-assessment 
results and quality improvement plan as described in sec.412.355(a) of this 
title (relating to Self-assessment by Local MRAs and Designated Providers) to 
the department's Office of Quality Management for the external validation 
portion of the QAIS. The external validation is intended to: 
(1) assess the quality of services and supports; 
(2) reassure the public that public funds are being expended prudently for the 
purpose intended; and 
(3) affirm to the administrators of the local MRA or designated provider and to 
the trustees of the local MRA that QAIS is being implemented as intended and 
that data are representative of the organization's performance. 
(b) The external validation process consists of three phases:
(1) pre-visit activities including: 
(A) desk review of requested documentation; 
(B) determination of external validation team composition;
(C) selection of an independent, stratified/random sample of consumers from the 
CARE system, separate from the sample used by the organization in the self-
assessment as described in sec.412.356 of this title (relating to Outcome 
Measures for People), for interviews which will be conducted with the written 
consent of the consumer or the LAR, if any, as described in Chapter 403, 
Subchapter K of this title (relating to Client-Identifying Information);
(D) scheduling of on-site external validation process activities: and 
(E) coordination of the external validation process with the organization; 
(2) on-site activities intended to confirm the findings and products of the 
organization's self-assessment and quality improvement plan including: 
(A) examination of the products of the internal self-assessment through 
validation of the organization's implementation of the self-assessment 
instrument and quality improvement plan; 
(B) feedback regarding responses on all outcomes and confirmation of the 
findings on the health, safety, rights, and abuse/neglect outcome measures 
through interviews with the consumers selected in the random sample described in 
paragraph (1)(C) of this subsection; and 
(C) establishment of the organization's overall inter-rater reliability; and 
(3) followup reporting activities including: 
(A) an optional closed exit conference with key staff, at the discretion of the 
organization chief executive officer; 
(B) an open exit conference for staff, consumers, advocates, parents, and other 
interested parties; and 
(C) provision of information to the department's Community Services Division. 
(c) The external validation team leader will: 
(1) provide information to the department's Community Services Division 
regarding the organization's performance as reflected in the self-assessment and 
the status of the quality improvement plan; and 
(2) notify the organization's CEO and department's Community Services Division 
of problems in the outcome areas of health, safety, rights, and abuse/neglect 
which require immediate action. 
(d) The membership of the external validation team is composed as described in 
the QAIS Implementation Manual, which is referenced as Exhibit E in 
sec.412.370(b) of this title (relating to Exhibits). 
(e) The department's Office of Quality Management will conduct a desk review of 
the annual self-assessment and quality improvement plan submitted by each 
organization as described in sec.412.355(a) of this title. The on-site visit 
portion of the external validation component will take place in one, two, or 
three year cycles, depending on the organization's accomplishment as reflected 
in the following elements which are described in detail in the QAIS 
Implementation Manual, which is referenced as Exhibit E in sec.412.370(b) of 
this title: 
(1) a valid self-assessment; 
(2) addressing of high impact issues in the quality improvement plan; 
(3) completion and implementation of a quality improvement plan; and 
(4) presence of outcomes and processes in the self-assessment.
(f) The outcomes for organizations described in Exhibit A assess whether an 
organization has the necessary and appropriate processes in place to support the 
outcomes for people. 
(g) Information obtained during the external validation of every organization's 
self-assessment and quality improvement plan will be used by the department for 
contract enforcement and negotiations and in compiling statewide data related to 
outcomes for people and organizations. 
(h) Deemed status will be granted by the department to those organizations 
accredited by The Council based on evidence of continuing accreditation 
presented to the department's Office of Quality Management. These organizations 
will be exempt from the on-site external validation process, but will be 
required to submit an annual self-assessment and quality improvement plan to the 
department's Office of Quality Management for data compilation and further 
contract negotiation. Deemed status for accreditation by other nationally 
recognized accreditation associations which meet the requirements of QAIS will 
be considered by the department's Office of Quality Management upon request by a 
local MRA or designated provider. 

sec.412.360. Encouraging Full Expression of Legal and Civil Rights. 
(a) The local MRA or designated provider will encourage the full expression of 
legal and civil rights by each consumer and will provide supports, as necessary, 
to assist consumers and their LARs in the exercise of their rights. The local 
MRA or designated provider will fully inform consumers and their LARs of their 
rights as guaranteed under the Persons with Mental Retardation Act (Texas Health 
and Safety Code, Title 7, Subtitle D) upon admission to services and at least 
annually thereafter. In doing so, the local MRA or designated provider will 
refer to Chapter 405, Subchapter Y of this title (relating to Client Rights -- 
Mental Retardation Services) and use the handbook prescribed in the subchapter. 
(b) The local MRA or designated provider has a Human Rights Committee (HRC) as a 
mechanism for ensuring due process for consumers when a limitation of a 
consumer's rights is being considered. 
(1) Members include, but are not limited to, consumers served by the local MRA 
or designated provider, LARs, actively involved family members, and local 
advocates. 
(A) Minimally, one committee member is experienced in issues and decisions 
regarding human rights. 
(B) At least one committee member is knowledgeable of current behavior 
management strategies. 
(C) At least one committee member is not affiliated with the local MRA or 
designated provider. 
(2) Any member directly involved in the development, review, or approval of a 
proposal before the committee will not take part in deliberations relative to 
that proposal. 
(3) Members will receive appropriate training to maximize the benefit of their 
participation on the committee. 
(c) The local MRA or designated provider shall ensure that due process is 
provided when an consumer's rights must be limited. As applicable, see Chapter 
405, Subchapter J of this title (relating to Surrogate Decision-Making for 
Community-Based ICF/MR and ICF/MR/RC Facilities). Due process includes:
(1) obtaining informed consent in writing for a period not to exceed one year 
from the consumer or the LAR; and 
(2) review by the planning team; and 
(3) review by the HRC. 
(d) When rights must be limited, the planning team will consider what, if any, 
training or modifications to the service plan might enable the limitations to be 
removed. 
(e) The local MRA or designated provider shall develop and implement written 
policies and procedures for reporting and investigating allegations of rights 
violations and allegations of abuse, neglect, and exploitation, and taking 
appropriate action in confirmed cases. See Chapter 405, Subchapter Y of this 
title and Chapter 404, Subchapter B of this title (relating to Abuse, Neglect, 
and Exploitation of People Served by Providers of Local Authorities), and 
Chapter 404, Subchapter A of this title (relating to Abuse, Neglect, and 
Exploitation in TDMHMR Facilities.) 
(f) Procedures for appeal of decisions shall be delineated and publicized, and 
shall include a mechanism for external review or mediation if agreement cannot 
be reached. For local MRAs, these procedures will include those set forth in 
sec.401.464 of this title (relating to Notification and Appeals Process). See 
Chapter 401, Subchapter G of this title (relating to Community Mental Health and 
Mental Retardation Centers.) 

sec.412.361. Human Resources. 
The local MRA or designated provider ensures that: 
(1) all staff possess the work experience and education/credentials required by 
the job description or contract; 
(2) professional personnel are licensed, certified, or registered, if required 
by law; 
(3) verification of credentials and verification of the renewal of credentials 
is maintained in the human resource file for all certified or licensed 
professionals; 
(4) there is a mechanism in place for maintaining and ensuring standards of 
professional and ethical practice; 
(5) staff have the necessary training and demonstrate the necessary skills to 
ensure that the consumer's health, safety, and support needs are met; and 
(6) documentation is maintained of the type and content of training and 
attendance records. 

sec.412.362. Medication Practice and Health Related Services. 
(a) The local MRA or designated provider operates in accordance with accepted 
principles of practice and applicable federal and state laws and regulations to 
ensure medication is administered safely and appropriately. The written policies 
and procedures of the local MRA or designated provider shall address: 
(1) proper handling, storage, and disposal of medications;
(2) proper use of telephone orders; 
(3) administration of medications by staff licensed or authorized to administer 
medications; 
(4) supervision of self-administration; 
(5) administration of medications without errors; and
(6) documentation of follow up and corrective action when medication errors do 
occur. 
(b) The local MRA or designated provider assists the consumer in accessing 
appropriate medical and preventive health care, dental, nursing, pharmacy, and 
laboratory services by qualified personnel, in compliance with laws and 
regulations, based on each consumer's needs, and provides for emergency care 
during hours of program operation. 
(c) The local MRA or designated provider has written policies and procedures 
which address the use of physical restraints and psychoactive medication when 
necessary during a medical or dental procedure or to promote healing following a 
medical procedure or an injury. The policies and procedures shall address 
appropriate documentation including: 
(1) medical necessity; 
(2) the behavior to be controlled; 
(3) a physician's or dentist's written order; 
(4) renewals, if necessary, every 12 hours; 
(5) provision of appropriate medical treatment and observation; and 
(6) notification of the LAR, if any. 

sec.412.363. Infection Control. 
(a) In accordance with recommendations of The Centers For Disease Control and 
Prevention and the Occupational Safety and Health Administration, the local MRA 
or designated provider shall ensure that an infection control plan is in place 
to decrease the risk for infection and/or transmission of diseases. 
(b) The plan addresses the following: 
(1) orientation training and updates; 
(2) prevention and management of infections for staff/providers and consumers 
(to include, but not be limited to, HIV, hepatitis B, and tuberculosis);
(3) postexposure treatment for consumers and staff; 
(4) procedures for notifying the Texas Department of Health (TDH) of instances 
of reportable diseases; 
(5) personnel policies in compliance with state and federal law; 
(6) criteria for determining when a consumer should be tested for HIV and 
hepatitis B; 
(7) hepatitis B immunization; and 
(8) special waste disposal as required by TDH as described in 25 TAC 
sec.sec.1.131-1.137 . 
(c) Documentation shall be included in the records of the local MRA or 
designated provider that the plan has been implemented. 

sec.412.364. Behavior Management.
(a) The local MRA or designated provider has written policies and procedures 
addressing behavior management which: 
(1) specify all approved interventions including aversive procedures and 
techniques; 
(2) designate a hierarchy of intervention from most positive and least intrusive 
to most restrictive and intrusive; and 
(3) specify accepted standards of professional practice for the use of these 
interventions. 
(b) Restrictive and/or intrusive interventions (e.g. restraint, time-out, or 
psychoactive medications) are used only when warranted by the severity of the 
behavior, based on a functional analysis and team input, and result in desired 
behavioral outcomes. 
(c) Emergency interventions are used when the behavior is not predictable and 
presents the clear threat of injury to self or others. If emergency 
interventions are needed more than twice during two consecutive months a 
functional analysis is undertaken to determine if a program to reduce the 
frequency and severity of the identified behaviors is needed. 
(d) Restrictive and/or intrusive interventions may be used as part of an 
individualized plan that is intended to lead to less restrictive means of 
managing and eliminating the behavior or controlling the symptoms of mental 
illness. 
(e) Monitoring of the consumer during all restrictive and/or intrusive 
interventions is at the appropriate level for the type of intervention being 
used and assures that the consumer's rights are protected. 
(f) All restrictive and/or intrusive interventions addressing the management of 
targeted behavior are justified by the functional assessment, the current level 
of behavior, and are reviewed by the treatment team at least annually to 
determine the ongoing need and to assess for the possible decrease in the use of 
the intervention, based on current clinical evidence. When possible, the 
acquisition of adaptive replacement behaviors is also measured. 
(g) Other interventions (e.g. environmental engineering, counseling) are 
similarly evaluated for their effectiveness through the use of individualized 
and quantified measures. 
(h) Except in an emergency, written informed consent for a period not to exceed 
one year is obtained when restrictive and/or intrusive interventions are 
included as part of a behavior management program. 
(1) The HRC should review the situation carefully as a matter of due process. 
When the failure to obtain written informed consent is based on the consumer's 
assessed inability to provide legally adequate consent, the need for obtaining a 
guardian should be considered. When applicable, surrogate decision making will 
be considered as described in Chapter 405, Subchapter J of this title (relating 
to Surrogate Decision-Making for Community-Based ICF/MR and ICF/MR/RC 
Facilities.) 
(2) The consumer or guardian have the right to withdraw consent to treatment at 
any time without regard to any time limit specified in the consent form. 
(3) A comsumer does not have the right to cause injury to self or others, but 
does have a right to be free of unnecessary drugs and other restrictive 
interventions and to receive appropriate treatment. This can best be ascertained 
when planned interventions are evaluated and determined to be effective. 

sec.412.365. Psychoactive Medications. 
In accordance with accepted principles of practice, the local MRA or designated 
provider shall ensure that: 
(1) psychoactive medications are used judiciously as part of an individualized 
plan in which the following are carefully considered:
(A) rationale including current DSM diagnosis; 
(B) benefits of treatment in light of potential risks of the targeted behavior; 
(C) overall impact on the consumer's quality of life; 
(D) adjunctive procedures; 
(E) monitoring of side effects; and 
(F) monitoring for efficacy; 
(2) the physician obtains a second opinion to review and determine the safety of 
any usage of polypharmacy or dosage levels over the maximum when clinically 
indicated prior to the consumer receiving such medications; 
(3) when tardive dyskinesia is suspected, the physician:
(A) informs the consumer and/or LAR; 
(B) discusses treatment options; and 
(C) documents in the record that the consumer and/or LAR has been informed of 
the suspected condition, possible treatment options, and the rationale for the 
treatment chosen; 
(4) informed consent in writing for a period not to exceed one year from the 
consumer, LAR, or a surrogate decision-making committee, if applicable, as 
described in Chapter 405, Subchapter J of this title (relating to Surrogate 
Decision-Making for Community-Based ICF/MR and ICF/MR/RC Facilities) is obtained 
prior to initiation of the medication unless the use is necessitated by an 
emergency as described in sec.412.364 of this title (relating to Behavior 
Management). Informed consent must include: 
(A) an explanation of the medication and its purposes; 
(B) expected beneficial effects, side effects and risks; 
(C) probable consequences of not taking medication; 
(D) the existence and value of alternative less restrictive forms of treatment, 
if any, and why the physician rejects the alternative therapy; 
(E) instruction that the consumer with the ability to provide legally adequate 
consent or the LAR may withdraw consent at any time without negative actions on 
the part of staff; 
(F) an offer to answer any questions concerning the medication and its use; and 
(G) a specification of the time period to be co vered by the consent document; 
(5) informed consent will be obtained on at least an annual basis or any time 
the medication regimen is altered in a way which would result in a change of 
medication class or result in a significant change in the risks or benefits to 
the consumer; and 
(6) if the consumer with the ability to provide legally adequate consent or the 
LAR consents to the administration of psychoactive medication but is physically 
unable to provide written consent, the physician will document the verbal 
consent in the consumer's record. 

sec.412.366. Consumer Records. 
(a) In accordance with accepted principals of practice, each local MRA or 
designated provider must insure that a separate confidential record is 
established and maintained for each consumer receiving services. This record 
must provide accurate documentation of the organization's efforts to provide 
health care, habilitation and support services, social information, and the 
protection of rights. The record should provide a readily accessible means of 
communication among all service providers. 
(b) The local MRA or designated provider will ensure that record entries: 
(1) are accurate; 
(2) are legible; 
(3) are chronological; 
(4) are not altered; 
(5) are properly corrected when errors in documentation occur; 
(6) are timely; 
(7) are properly signed and dated; 
(8) do not reference other consumers; 
(9) use only accepted abbreviations and symbols; 
(10) provide comprehensible documentation of services provided; and 
(11) are consistent with written policies and procedures.
(c) Falsification of records is prohibited and the local MRA or designated 
provider will ensure that falsification of records is not supported, encouraged, 
or condoned under any circumstances. 
(d) The local MRA or designated provider must provide and maintain accurate and 
complete consumer data as required by the department through the performance 
contract or performance memorandum and this subchapter.
(e) The local MRA or designated provider shall make all records, reports, and 
other program information available for review on a timely basis when requested 
by the department. 

sec.412.367. Environmental Requirements. 
The local MRA or designated provider ensures that: 
(1) each consumer's environment promotes human rights and dignity; 
(2) each consumer is served by a sufficient number and type of staff to provide 
services needed and to insure the consumer's safety and health; 
(3) all sites meet the appropriate chapter of the most recent edition of the 
Life Safety Code (LSC) published by the National Fire Protection Association 
(NFPA) or the edition used by the authority having jurisdiction over that site; 
(4) all sites have emergency plans which address relevant emergencies 
appropriate for the type of service, geographic location, and the consumers; 
(5) all staff are knowledgeable of the emergency plans and that staff and 
consumers follow the plans during both drills and real procedures; and 
(6) the local sanitation codes and licensure requirements are met. 

sec.412.368. Respite Services. 
The local MRA has written policies and procedures addressing the provision of 
respite services which shall: 
(1) encourage the use of existing local providers; 
(2) encourage participation by the consumer, LAR, if any, and, with the consent 
of the consumer or LAR, by family members and other actively involved persons in 
the choice of a qualified provider; 
(3) describe how in-home providers are selected and trained;
(4) describe how emergency backup for in-home respite care providers is 
provided; 
(5) address admission procedures; and 
(6) require development of a respite plan for each consumer which includes 
addressing the unique medical and support needs of the consumer.

sec.412.369. Additional Requirements. 
(a) The local MRA or designated provider assists consumers to enter the service 
delivery system whether or not they are admitted to direct services 
operated/contracted by the local MRA. 
(b) The local MRA or designated provider ensures that information and education 
materials are available which are adapted to the cultural, economic and 
educational characteristics and translated into the languages appropriate to the 
major population subgroups of the local service area. 
(c) The local MRA or designated provider ensures that services provided by two 
or more agencies are coordinated/integrated and consistent with the needs of the 
consumer. 
(d) The local MRA or designated provider ensures that: 
(1) each consumer and the LAR, if any, are encouraged to participate in the 
planning team; 
(2) each planning team designs an individually tailored plan of services and 
supports (formal and informal) which describes how the local MRA will assist the 
consumer in acquiring needed and desired skills and meeting personal goals; 
(3) plans are modified or changed in response to the consumer's specific 
accomplishments, need or desire for new programs, or difficulties in acquiring 
or maintaining skills; and 
(4) a staff person is designated to be accountable for supporting and assisting 
the consumer and LAR, if any, in planning, coordinating, and monitoring services 
and supports.
(e) The local MRA or designated provider ensures that: 
(1) prior to admission to services a determination of mental retardation is made 
as described in Chapter 405, Subchapter D of this title (relating to 
Determination of Mental Retardation and Eligibility for Admission to Services.) 
(2) assessments appropriate to the needs of the consumer and in response to 
requests by the consumer or LAR are obtained in order to direct and guide the 
service provision; 
(3) within 21 days of initial contact the consumer is:
(A) admitted into existing services; 
(B) placed on a waiting list for existing services; or 
(C) determined to be ineligible for services and referred to an agency that can 
address the service request; and 
(4) when available services have been refused by the consumer or LAR, if any the 
refusal is documented and appropriate alternatives are considered. 

sec.412.370. Exhibits. 
(a) Documents adopted by reference in this subchapter include:
(1) Exhibit A -- The Council's Outcome Based Performance Measures -- 1993; 
(2) Exhibit B -- Outcomes for People Results Worksheet;
(3) Exhibit C -- Outcomes for People Scoring Grid; and
(4) Exhibit D -- Outcomes for Organizations Worksheet.
(b) The QAIS Implementation Manual is referenced in this subchapter as Exhibit 
E. 
(c) Copies of the Outcome Based Performance Measures listed in subsection (a)(1) 
of this section may be obtained by contacting The Council, 100 West Road, Suite 
406, Towson, Maryland 21204. All other documents listed in subsections (a) and 
(b) of this section may be obtained by contacting the Office of Policy 
Development, Texas Department of Mental Health and Mental Retardation, P.O. Box, 
12668, Austin, Texas 78711-2668. 

sec.412.371. Training. 
(a) Training and other learning opportunities for all stakeholders of the local 
MRA or designated provider and for the members of the external validation teams 
are based on The Council's Outcome Based Performance Measures and other service 
quality improvement concepts. 
(b) Training is consistent with guidelines and materials provided by the 
department and must be tailored to the needs and interests of the stakeholder 
groups. 
(c) Training material supplied by The Council for the QAIS self-assessment 
review team and the quality improvement plan team include information on 
interviewing techniques, confidentiality, decision-making, and the processes for 
implementing the self-assessment and the quality improvement plan. 

sec.412.373. Distribution. 
(a) Copies of this subchapter shall be distributed to: 
(1) members of the Texas Mental Health and Mental Retardation Board; 
(2) executive, management, and program staff of the department's Central Office; 
(3) chairs of boards of trustees of local MRAs; 
(4) CEOs of local MRAs and designated providers; and
(5) interested advocates and advocacy organizations.
(b) The CEOs of local MRAs and designated providers are responsible for 
distributing copies of this subchapter to: 
(1) appropriate staff; 
(2) providers; 
(3) agents; 
(4) any consumer receiving services and supports who requests a copy; 
(5) family members and advocates of consumers who requests a copy; 
(6) any employee who requests a copy; and 
(7) any other person who requests a copy. 
This agency hereby certifies that the adoption has been reviewed by legal 
counsel and found to be a valid exercise of the agency's legal authority.
Filed with the Office of the Secretary of State on March 27, 1998.
TRD-9804413
Charles Cooper
Chairman, Texas MHMR Board
Texas Department of Mental Health and Mental Retardation
Effective date: April 16, 1998
Proposal publication date: January 23, 1998
For further information, please call: (512) 206-4516

TITLE 34. PUBLIC FINANCE
PART III. Teacher Retirement System of Texas
CHAPTER 29.Benefits
34 TAC sec.29.21
The Teacher Retirement System of Texas (TRS) adopts a new sec.29.21 concerning 
the tables to figure life expectancy needed to administer a new law found at 
sec. 824.1012 of the Government Code. sec. 29.21 is adopted without changes to 
the proposed text published in the January 23, 1998 issue of the Texas Register 
(23 TexReg 526). 
The justification for TRS to adopt this rule is to establish needed ife 
expectancy tables to allow a retiree to change a beneficiary. With the new 
tables, TRS will be able to determine how long to make payments to a new 
beneficiary.
No public comments were made on this proposal.
The new section is adopted under the Government Code, Chapter 825, sec.825.102, 
which provides the Board of Trustees of the Teacher Retirement System with the 
authority to adopt rules for the administration of the funds of the retirement 
system. In addition, sec. 824.1012 of the Government Code allows the changes in 
beneficiary which this rule addresses. 
This agency hereby certifies that the adoption has been reviewed by legal 
counsel and found to be a valid exercise of the agency's legal authority.
Filed with the Office of the Secretary of State on March 25, 1998.
TRD-9804306
Charles Dunlap
Executive Director
Teacher Retirement System of Texas
Effective date: April 14, 1998
Proposal publication date: January 23, 1998
For further information, please call: (512) 370-0592

CHAPTER 41.Insurance
34 TAC sec.41.12
The Teacher Retirement System of Texas (TRS) adopts amendments to sec.41.12 
concerning the certification process with public schools for TRS insurance. 
sec.41.12 is adopted without changes to the proposed text published in the 
January 23, 1998 issue of the Texas Register (23 TexReg 527).
The justification for TRS to adopt this rule is to bring the rule in compliance 
with new law passed by the 75th Legislature found at sec. 22.004 of the 
Education Code which requires rules with the information outlined in the amended 
language. It is a requirement for each school district to provide the 
information outlined in the amended language. There is also a new date for 
submission outlined in the law as well as a new reference to the pertinent law.
No public comments were made on this proposal. 
The amended section is adopted under the Government Code, Chapter 825, 
sec.825.102, which provides the Board of Trustees of the Teacher Retirement 
System with the authority to adopt rules for the administration of the funds of 
the retirement system. In addition, sec. 22.004 of the Education Code provides 
the requirements on the substance of the rule and on submitting the 
certificaiton.
This agency hereby certifies that the adoption has been reviewed by legal 
counsel and found to be a valid exercise of the agency's legal authority.
Filed with the Office of the Secretary of State on March 25, 1998.
TRD-9804307
Charles Dunlap
Executive Director
Teacher Retirement System of Texas
Effective date: April 14, 1998
Proposal publication date: January 23, 1998
For further information, please call: (512) 370-0592

CHAPTER 51.General Administration
34 TAC sec.51.1
The Teacher Retirement System of Texas (TRS) adopts amendments to sec.51.1 
concerning the term and make-up of some Advisory and Auxiliary Committees of 
TRS. sec. 51.1 is adopted without changes to the proposed text published in the 
January 23, 1998 issue of the Texas Register (23 TexReg 528). 
The justification for TRS to adopt this rule is to set an expiration date for 
the committees. In addition, the amendments eliminate an Investment Advisory 
Committee and a Real Estate Finance Committee which no longer exist. Finally, 
the word "Retired" is eliminated from the Group Insurance Program as it was 
eliminated in the law. 
No public comments were made on this proposal. 
The new section is adopted under the Government Code, Chapter 825, sec.825.102, 
which provides the Board of Trustees of the Teacher Retirement System with the 
authority to adopt rules for the administration of the funds of the retirement 
system. In addition, sec.825.114 of the Government Code allows TRS to create any 
advisory committee considered necessary. The TRS Medical Board is created under 
sec. 825.204 of the Government Code. The Retirees Advisory Committee is created 
under Article 3.50-4, sec.6 of the Insurance Code. A credentialing committee is 
authorized under sec.18 of the same law.
This agency hereby certifies that the adoption has been reviewed by legal 
counsel and found to be a valid exercise of the agency's legal authority.
Filed with the Office of the Secretary of State on March 25, 1998.
TRD-9804308
Charles Dunlap
Executive Director
Teacher Retirement System of Texas
Effective date: April 14, 1998
Proposal publication date: January 23, 1998
For further information, please call: (512) 370-0592

TITLE 40. SOCIAL SERVICES AND ASSISTANCE
PART I. Texas Department of Human Services
CHAPTER 3.Income Assistance Services
SUBCHAPTER W.Reminders
40 TAC sec.3.2302
The Texas Department of Human Services (DHS) adopts new sec.3.2302, with changes 
to the proposed text as published in the December 26, 1997, issue of the Texas 
Register (22 TexReg 12715).
The justification for the new section is to clearly define that Temporary 
Assistance for Needy Families (TANF) benefits may only be used to purchase goods 
and services which are essential and necessary for the welfare of the family. 
The new section will function by ensuring that DHS is in compliance with state 
legislation in administering the new section. 
During the comment period, DHS received comments from the Houston Welfare Rights 
Organization. A summary of the comments and DHS's responses follow:
Comment: The commenter stated that in keeping with the premise upon which the 
Client Self-Support Services Advisory Council (CSSAC) approved the proposed 
rule, a sentence should be added to the proposed rule that states that DHS 
investigates ongoing, consistent purchases that are not essential and necessary.
Response: DHS disagrees with the commenter. DHS prefers not to add restrictions 
to the rule in order to allow for enforcement in any situation that may arise 
under the rule language proposed. While it is agreed that DHS would not 
generally assign a protective payee except in cases of ongoing and consistent 
purchases that are not essential and necessary, there will likely be situations 
in which a single offense is of such a serious nature that DHS might determine 
that a protective payee is required. For example, DHS would require a protective 
payee if DHS became aware that a recipient was arrested for a drug possession 
and confessed to using the monthly TANF benefit on the drug purchase. 
Comment: The commenter remarked that the proposed rule should not state "for the 
children" after recreation, and requested that the rule simply state 
"recreation" at that point. 
Response: DHS agrees to change the phrase "recreation for the children" to 
"recreation for the family" to maintain a consistent message that the primary 
purpose of the TANF grant is for purchases that are essential and necessary for 
the children and caretaker of those children. 
The new section is adopted under the Human Resources Code, Title 2, Chapters 22 
and 31, which authorizes the department to administer public and financial 
assistance programs. 
The new section implements the Human Resources Code, sec.sec.22.001-22.030 and 
sec.sec.31.001-31.0325.

sec.3.2302.Use of Temporary Assistance for Needy Families (TANF) Benefits.
Recipients can only use TANF benefits to purchase goods and services that are 
essential and necessary for the welfare of the family. Essential and necessary 
includes food, clothing, housing, utilities, furniture, transportation, 
telephone, laundry, medical supplies not paid by Medicaid, and incidentals such 
as household equipment, supplies, and recreation for the family. 
This agency hereby certifies that the adoption has been reviewed by legal 
counsel and found to be a valid exercise of the agency's legal authority.
Filed with the Office of the Secretary of State on March 26, 1998.
TRD-9804356
Glenn Scott
General Counsel, Legal Services
Texas Department of Human Services
Effective date: April 15, 1998
Proposal publication date: December 26, 1997
For further information, please call: (512) 438-3765

SUBCHAPTER QQ.Finger Imaging
40 TAC sec.3.7002
The Texas Department of Human Services (DHS) adopts an amendment to sec.3.7002, 
without changes to the proposed text as published in the December 5, 1997, issue 
of the Texas Register (22 TexReg 12027). 
The justification for the amendment is to delete the exemption for household 
members who claim their religious beliefs do not allow their image to be 
captured. The amendment will function by enhancing the integrity of the Lone 
Star Image System. During the public comment period and at a public hearing held 
on February 2, 1998, DHS received comments from Texas Legal Services Center, the 
Texas Clients Council, the Association of Community Organizations for Reform Now 
(ACORN), Houston Welfare Rights Association, and an individual. A summary of the 
comments and DHS's responses follow: 
Comment: Four commenters stated that people should not have to abandon closely 
held beliefs in order to receive assistance, and requested the religious 
exemption be kept, not deleted. 
Response: DHS is deleting the religious exemption because (1) the number of 
exemptions (1,200) claimed threatens the integrity of the system; (2) other 
imaging systems, such as the Texas Department of Public Safety's and those in 
other states, do not allow for a religious exemption; (3) future enhancements 
such as finger imaging at Point-of-Sale (POS) depend on having as complete a 
database as possible; (4) deletion of the exemption has been presented to and 
approved by the Food and Nutrition Services (FNS), who requested Texas to 
consider the exemption in the pilot; and (5) individuals who do not want their 
photo image taken will be excused from providing it. 
Comment: One commenter indicated finger imaging is a police tactic, and treats 
all who apply as persons who would commit fraud, without any suspicion 
particular to the applicant. 
Response: Finger imaging is being used increasingly by commercial and 
governmental entities for purposes other than criminal justice applications. The 
availability of a religious exemption is not related to previous law enforcement 
applications of finger imaging. 
Comment: One commenter stated the Client Self-support Advisory Council (CSSAC) 
voted against the finger imaging project in general. 
Response: After implementation of the finger imaging pilot, deletion of the 
finger imaging exemption was presented to the CSSAC. The council approved 
recommending deletion of the religious exemption. 
Comment: One commenter indicated an erroneous telephone access code for the 
CSSAC had been released to three individuals, and that it will not be known what 
the vote would have been had a correct telephone access code been in the 
materials released to the public. 
Response: The CSSAC meeting was held as scheduled. Anyone receiving an erroneous 
telephone access code for the CSSAC could call the main DHS number to be given 
instructions on accessing the scan call. 
Comment: Three commenters indicated that evaluation of the finger imaging pilot 
by the Center for the Study of Human Resources raises concerns about the cost-
effectiveness of finger imaging. 
Response: Deletion of the religious exemption will not have a discernible effect 
on the cost of the finger imaging system, but is intended to improve the 
integrity of the system. 
Comment: Four commenters indicated that Texas already significantly underserves 
those who should be eligible for food stamps, and that less than half of those 
eligible will receive food stamps. 
Response: Neither finger imaging nor the religious exemption affects who meets 
the financial eligibility requirements for food stamps. FNS noted in approving 
the use of finger imaging that providing a finger image is not a hardship as the 
finger image is readily available to applicants or recipients. Planning for 
implementation of the program has emphasized making finger imaging as accessible 
to clients as possible. It is noteworthy that in surveys taken during the pilot, 
client response was overwhelmingly positive regarding finger imaging. 
Comment: One commenter indicated that the finger imaging project caused numerous 
cases to be pended and resulted in numerous false matches. 
Response: The religious exemption does not affect the number of cases pended or 
the number of false matches received. 
Comment: One commenter stated that DHS has estimated client-caused error in the 
food stamp program at a high rate that is "in marked contrast to the national 
average," so it may be that actual fraud is markedly lower than it is touted to 
be. 
Response: The absence or presence of a religious exemption should have no effect 
on client-caused errors, other than allowing individuals who are intent on 
defrauding the programs a means to thwart the finger imaging system.
Comment: One commenter stated that House Bill 1863 authorized a type of 
electronic finger imaging or photo imaging, but DHS has proceeded as if the 
written law said "and". 
Response: DHS was advised that it is standard in the finger imaging industry to 
use a photograph as part of the finger imaging process. DHS's main purpose in 
including the photograph is to take every safeguard possible to ensure that any 
matches received are legitimate before impacting an applicant's or recipient's 
benefits. 
Comment: Two commenters indicated that earlier law from the Bible may be the 
basis why some would claim a religious exemption from being imaged.
Response: Anyone stating that his religion prohibits his picture being taken 
will not be photographed; only a finger image is required.
Comment: One commenter indicated that the finger imaging exemption is similar to 
those who had a conscientious objection to military service, and that other 
means should be used to verify that an individual with religious objections does 
not receive duplicate benefits, such as an oral statement under penalty of 
perjury, or verification of a social security number and other such identifying 
information that would not compromise firmly held religious beliefs. 
Response: The application for benefits currently asks if any person in the 
household is receiving benefits and requires a signature under penalty of 
perjury that the information provided is correct. The state currently also has 
in place a system that requires applicants to provide, but not verify, their 
social security number, and the state then verifies that number with the Social 
Security Administration. The system can be circumvented through the use of false 
social security numbers. Requiring proof of the social security number prior to 
certifying the household presents barriers to more people than requiring a 
finger image, and still cannot prevent the use of counterfeit cards. The finger 
image is readily available, requires no further proof, and is not susceptible to 
circumvention. 
Comment: Spending $1.7 million on the finger imaging pilot appears to be of no 
benefit to the state, and only benefits the company that receives the contract. 
It does not help the people applying for benefits. 
Response: Deleting the finger imaging religious exemption does not significantly 
impact the cost of the finger imaging project. 
The amendment is adopted under the Human Resources Code, Title 2, Chapters 22 
and 31, which provides the department with the authority to administer public 
and financial assistance programs. 
The amendment implements the Human Resources Code, sec.sec.22.001-22.030 and 
sec.sec.31.001-31.076. 
This agency hereby certifies that the adoption has been reviewed by legal 
counsel and found to be a valid exercise of the agency's legal authority.
Filed with the Office of the Secretary of State on March 26, 1998.
TRD-9804357
Glenn Scott
General Counsel, Legal Services
Texas Department of Human Services
Effective date: May 22, 1998
Proposal publication date: December 5, 1997
For further information, please call: (512) 438-3765

PART XX. Texas Workforce Commission
CHAPTER 800.General Administration
SUBCHAPTER G.Petition for Adoption of Rules
40 TAC sec.sec.800.251-800.255
The Texas Workforce Commission (Commission) adopts new sec.sec. 800.251-800.255, 
concerning the Petition for Adoption of Rules without changes to the proposed 
text as published in the February 6, 1998, issue of the Texas Register (23 
TexReg 948). The adopted text will not be republished here. 
New Subchapter G., Petition for Adoption of Rules, is adopted as the location of 
new sec.sec.800.251-800.255. 
New Subchapter G in Chapter 800 is adopted to provide the form and procedure for 
processing a petition for the adoption of rules. 
New sec.800.251 sets forth the short title and purpose for this subchapter.
New sec.800.252 sets forth the definitions that apply to this subchapter.
New sec.800.253 sets forth the procedures for submission that apply to this 
subchapter. 
New sec.800.254 sets forth the procedure for reviewing the petitions submitted 
pursuant to this subchapter.
New sec.800.255 sets forth a description of Commission action that may result 
from the submission made pursuant to this subchapter. 
The Commission received no comments on the proposed rules. 
The new rules are adopted pursuant to Texas Labor Code, sec.301.061 which 
provides the Commission with the authority to adopt, amend or rescind such rules 
as it deems necessary for the effective administration of the Act and Texas 
Government Code, sec.2001.021 which provides for the Commission to promulgate by 
rule the form for a petition for adoption of rules and the procedure for its 
submission, consideration, and disposition of the petition.
This agency hereby certifies that the adoption has been reviewed by legal 
counsel and found to be a valid exercise of the agency's legal authority.
Filed with the Office of the Secretary of State on March 26, 1998.
TRD-9804439
J. Randel (Jerry) Hill
General Counsel
Texas Workforce Commission
Effective date: April 19, 1998
Proposal publication date: February 6, 1998
For further information, please call: (512) 463-8812

CHAPTER 811. Job Opportunities and Basic Skills
The Texas Workforce Commission (Commission) adopts the repeal of sec.sec.811.1-
811.5, 811.10-811.23, and 811.60 relating to the Job Opportunities and Basic 
Skills and new sec.sec.811.1, 811.2, 811.11-811.20, 811.31-811.34, 811.41-
811.45, 811.61-811.65, 811.81-811.87 and 811.101, concerning the Choices rules. 
Sections 811.2, 811.13, 811.18-811.20, 811.42, 811.44, 811.45, 811.62, 811.87 
and 811.101 are adopted with changes to the proposed text as published in the 
January 2, 1998, issue of the Texas Register (23 TexReg 101). 
Rules of the Texas Department of Human Services (DHS) relating to employment 
services include the following: requirements of applicants and recipients of 
temporary cash assistance to attend workforce orientation sessions and to 
participate in employment services; the exemptions from participation 
requirements; determination of good cause for failure to participate; and 
financial penalties applied to benefits resulting from noncompliance. The 
Commission, where applicable, cross-references those rules for the purposes of 
continuity or clarity. Although these rules govern services available through 
the Temporary Assistance for Needy Families (TANF) block grant funds, 
participants are eligible for and receive services funded through other 
resources, including the Job Training Partnership Act (JTPA), Wagner-Peyser 
Employment Services, and the Adult Education Act, as amended by the National 
Literacy Act. 
Local workforce development boards have the jurisdiction and the authority to 
develop local policy, to determine service delivery practices and procedures, to 
set the services and activities available in each local workforce development 
area, and to choose the locations where services are available and delivered 
consistent with federal and state regulations, rules, and policies. 
Eligibility requirements for receipt of temporary cash assistance benefits under 
the jurisdiction of the DHS include the requirement to work or participate in 
the state's employment services program which replaces the JOBS Program. Failure 
of an applicant or a recipient of temporary cash assistance to fulfill this 
requirement results in denial of the application or a financial penalty 
(sanction) placed on the cash assistance grant for each month of noncompliance. 
The current financial penalty for failure to participate in employment services 
is a maximum of $78 per month for one parent. In two-parent households, if both 
parents do not comply, the penalty is a maximum of $125 per month.
Some commenters were for the rules and others had concerns and questions about 
the rules as proposed and suggested changes. Comments were received from the 
following: a Texas Senator's office, a Texas Representative, West Central Texas 
Workforce Development Board, Tarrant County Workforce Development Board, Texas 
Council on Family Violence, North Central Texas Council of Governments, Houston 
Welfare Rights Organization, Texas Legal Services Center, and an individual 
representing herself. Following each comment is the Commission's response.
Comments regarding sec.811.2 Definitions are as follows. 
Comment: A commenter requests a change in the definition of employability plan. 
The commenter suggests that the employability plan is a contractual agreement 
and should be signed by both the participant and the Choices staff member to be 
valid. 
Response: The Commission agrees that both parties to the agreement should sign 
the employability plan. The definition in the proposed version did not intend to 
imply that only the participant would sign the agreement. Rather its intention 
was to clarify that, because the agreement is used to base compliance decisions, 
it is necessary for the participant to sign. To avoid confusion, however, the 
definition of employability plan has been revised. The second sentence of that 
definition now reads, "The plan, signed by the participant and the Choices staff 
member, is the participation agreement for compliance purposes." 
Comment: A commenter requests a clarification in the definition of good cause 
determination to not exclude exempt clients. Exempt clients may be granted good 
cause. The commenter asserts that if an exempt client fails to participate and 
the good cause reason continues, the case should be closed. 
Response: The definitions in this section provide context for the use of terms 
in other sections of Chapter 811. The Commission acknowledges that good cause 
may be determined for exempt participants, but it does not have the same outcome 
as good cause determinations for nonexempt participants. The term good cause is 
used in other sections to indicate exceptions for initiating sanctions. Again, 
to avoid misinterpretations, we will delete the word "nonexempt" from the 
definition of good cause. 
Comments regarding sec.811.11 Eligibility are as follows. 
Comment: A commenter suggests that the language in subsection (a) should be 
modified to add the words "able-bodied" or "non-disabled" preceding "applicants 
and recipients." The commenter asserts the reason for this change would be that 
incapacity of an adult is a qualifying factor for temporary cash assistance 
under DHS rules at 40 TAC sec.3.1701. Cash assistance recipients can have $3,000 
in countable resources, while Supplemental Security Income (SSI) recipients can 
have only $2,000 in countable resources. 
Response: The Commission's intent in this rule is not to specify who is or is 
not eligible for temporary cash assistance, but to state the eligibility 
criteria for receipt of Choices services. As the commenter pointed out, the DHS 
is the rulemaking authority for TANF eligibility requirements, and their rules 
are found in 40 TAC Chapter 3. Therefore, as currently worded, 40 TAC sec.811.11 
appropriately states the eligibility for Choices. Although clients may be exempt 
from, or have good cause for, not working or participating in employment 
services due to disability or incapacity, they remain eligible for Choices 
services. Program staff may outreach or offer services to assist such clients in 
obtaining employment and self-sufficiency. 
Comments regarding sec.811.12 Participation Requirements are as follows.
Comment: A commenter states that subsection (a) of this section specifies that 
DHS will determine who is mandated to participate in the Choices Program. The 
commenter points out that current DHS policy states that teens 16 years of age 
or older who have dropped out of high school and who are in an active TANF case 
are mandated to participate in the program. The commenter is concerned about the 
way participation is counted at the federal level. The commenter asserts that 
the employment services activity of a mandatory teen may not be counted in the 
participation rate formula. The commenter asks if there will be rules that 
mandate Choices Program staff to outreach, assess, and counsel these teens. 
Response: The Commission does not plan to specify in rules any requirements as 
to the level of outreach or services available for mandatory teens who are part 
of another assistance unit. This is a decision best left to local programs and 
is impacted both by participation rate performance measures and local resources 
and funding. DHS will refer teen parents applying for TANF services who are the 
head of the assistance unit to the program for mandatory workforce orientation 
sessions and employment planning sessions. These teen parents are to be served 
in accordance with rules at sec.811.17, relating to Choices Services Strategies. 
Local program planning should promote collaborative arrangements necessary for 
providing or referring both mandatory and voluntary teens for appropriate 
educational, supportive, and workforce services. 
Comment: A commenter suggests that subsection (b)(1) of this section needs 
clarification as to whether people who reapply for TANF after being denied are 
also considered applicants and therefore required to attend an orientation.
Response: The requirement for applicants to attend a workforce orientation 
session is included in the rules of both DHS and the Commission. Technically, 
anyone who requests an application is considered an applicant, regardless of 
whether the person previously received TANF and was denied. Therefore, as 
currently worded, the rule applies to all applicants. DHS determines who must 
attend an orientation session. The Commission has made no change to 
sec.811.12(b)(1) because of this comment. 
Comment: A commenter requests that subsection (b)(2) of this section be 
clarified to specify that a sanction can be initiated for someone who is 
scheduled for more than the federal minimum participation requirement. 
Response: The Commission disagrees that sec.811.12(b)(2) requires clarification 
about initiating a sanction for noncompliance with participation requirements 
beyond the federal minimum requirements. This section does not address sanctions 
for noncompliance which are included in sec.811.14. We believe that the rule as 
currently worded is sufficient in that it addresses recipients being required to 
participate in activities for the required number of hours per week as 
stipulated in the federal requirements or in an employability plan. The rule 
then clarifies that compliance is based on the number of hours in the 
employability plan, even if that number is greater than the federal minimum 
requirement. 
Comment: A commenter asks if staff will be required to monitor the ancillary 
services in subsection (b)(4) of this section as outlined in sec.811.18. The 
commenter questions if the activities count toward participation since 
sec.811.16(b) specifies that counseling or other services to address family 
violence and other crisis situations may be included in the participant's 
employability plan. 
Response: Monitoring all components of a participant's employability plan is 
part of effective case management and is necessary to determine program 
compliance. The intent of sec.811.18 is to ensure frequent tracking and 
reporting of employment services activities and provision of timely intervention 
necessary for both client participation monitoring and quality client services. 
If ancillary services are included in a participant's employability plan, and 
the hours of required activity can be verified, those hours can be included as 
participation provided they qualify as an allowable activity. No changes have 
been made to sec.811.12(b)(4) as a result of the comment. The Commission has 
changed the language in the first sentence of sec.811.18 to clarify the intent 
of monitoring and to provide for more local flexibility, as explained in 
responses to sec.811.18. 
Comment: A commenter asserts that instead of requiring recipients to participate 
in ancillary services as specified in subsection (b)(4) of this section, the 
statement should allow flexibility for the employment goal to be changed. If the 
recipient chooses not to utilize the ancillary services, the Choices staff 
should be allowed to reassess the recipient regarding the employment goal. 
Response: The Commission does not believe that the rule language at subsection 
(b)(4) of this section precludes prudent case management or staff decisions 
about updating employability plans to accommodate individual needs of program 
clients. The intent of this rule is to list the participation requirements. The 
key word in sec.811.12(b)(4) is "required." If ancillary services are found to 
be required in order to remove barriers to participation or to obtaining a job, 
and the participant refuses to accept the service referral or participate in the 
services, then nonparticipation could be an issue. An example would be someone 
who participates in job search for the number of required hours, but does not 
obtain a job because he appears for interviews inebriated. Program staff may 
include drug and alcohol treatment or counseling for the individual in an 
employability plan and, if necessary, give the client good cause for a period of 
time to allow for services to be effective. Failure of the client to follow 
through with the ancillary services could be cause for a sanction.
Comment: A commenter requests a clarifying change in subsection (b)(5) of this 
section to stipulate that "if the job offer pays at least minimum wage, the 
recipient must accept it." 
Response: This provision is covered in sec.811.13(8) which allows the client to 
show good cause for failure to accept a job offer paying less than the minimum 
wage. Therefore, the Commission has not made the suggested change to 
sec.811.12(b)(5). 
Comments regarding sec.811.13 Good Cause are as follows. 
Comment: A commenter suggests that sec.811.13(1) should be modified to insert 
the words "or permanently" between the words "temporarily" and "ill." The 
commenter states that it would not make good sense to grant good cause to a 
temporarily incapacitated person, while denying good cause to a permanently 
incapacitated person. 
Response: The Commission's rules at sec.811.13, relating to good cause, are the 
same as current policy under the state welfare waiver approved by the federal 
government. Therefore, the Commission will not make substantive changes to 
sec.811.13(1). Good cause determinations are applied when a non-exempt TANF 
recipient demonstrates a reason for inability to participate in work or 
employment-related services. Permanent incapacity or disability would result in 
the recipient's referral to DHS to redetermine employment services or exemption 
status under the rules at 40 TAC Chapter 3. 
Comment: A commenter supports the purpose of sec.811.13(2), but requests that 
the rule be amended to include meetings with probation or parole officers as 
good cause. The commenter bases this request on the high percentage of people on 
parole or probation in the state. The commenter suggests that the intent of the 
rule should not exclude persons who are required to meet with a state or federal 
probation or parole officer. 
Response: The Commission agrees that good cause could be applied to a 
participant required to meet with probation or parole officers. However, the 
Commission believes that making the suggested language change in sec.811.13(2) 
would be considered a substantive revision to the state waiver provisions. 
Therefore, the Commission prefers to provide additional guidance on addressing a 
participant's legal matters through written program guidelines. 
Comment: A commenter suggests that sec.811.13(3) seems to indicate that persons 
who have not completed high school have less good cause than high school 
graduates, and notes that the reverse is more logical. 
Response: The rule as proposed is consistent with the state's welfare waiver. 
Therefore, the Commission declines to change sec.811.13(3). Both state and 
federal welfare reform statutes emphasize the requirement for parents to 
complete high school. Excluding a caretaker who has not completed high school 
from claiming good cause for not participating more than 20 hours per week, 
regardless of the age of the child, is consistent with policy governing school 
attendance.
Comment: A commenter states that sec.811.13(4) is similar to the good cause 
provision in sec.811.13(10), and asks if it is necessary to make the distinction 
between someone who is a caretaker of a physically or mentally disabled child 
and someone who has a family crisis. 
Response: Although the Commission agrees with the commenter that family crisis 
could fit some of the other specific good cause provisions, we are maintaining 
the rule as proposed in order to be consistent with the good cause policy in our 
state welfare waiver. 
Comment: A commenter recommends deleting sec.811.13(8) which allows good cause 
for an individual not accepting employment offers below minimum wage and 
changing the language in sec.811.12(b)(5) to specify that recipients must accept 
a job offer unless it results in below minimum wage employment. The commenter 
suggests that this could eliminate some work associated with good cause 
determination. 
Response: The Commission agrees that this could be an alternate method of 
incorporating the policy. However, substantive changes to good cause provisions 
would impact the state waiver. Prior to any need for determining good cause, 
there must be some form of nonparticipation, such as failure to accept a job 
offer. Therefore, the Commission declines to revise the rule. 
Comment: Two commenters request a change to the six-month timeframe as specified 
in sec.811.13(10). The commenters state that the limits for granting good cause 
for domestic violence purposes should be consistent with state law rather than 
the proposed TANF federal regulations, which have not yet been finalized. House 
Bill 3428, passed by the Texas Legislature in 1997, provides for waivers of 
certain eligibility requirements for victims of domestic violence, including 
work requirements. The state law further specifies that the requirements would 
not be waived for more than one year. The proposed federal regulations for TANF 
specify a six-month limit for granting good cause exemption for domestic 
violence purposes, and the preamble to those regulations states that such an 
exemption could be extended. The commenters request that the language in the 
last sentence of sec.811.13(10) be changed to read, "Good cause shall not be 
extended beyond one year for domestic violence purposes," or that the rule be 
changed to provide for an extension of the good cause provision for up to a 
total of one year, depending on the needs of the individual.
Response: The Commission has revised sec.811.13(10) to provide for extensions of 
good cause for family violence purposes not to exceed twelve months. This is 
consistent with state statute and the preamble to the federal TANF regulations.
Comments regarding sec.811.17 Choices Services Strategies are as follows.
Comment: A commenter requests that the Commission clarify the rule relating to 
the Work First service delivery approach and service strategy described in 
subsection (b) of this section. The commenter asserts that the state-established 
guidelines referenced in this subsection should be reviewed to ensure that 
sufficient flexibility is provided for local workforce development boards. The 
commenter asserts that the local workforce development boards should determine 
the services, approaches, and length of service as long as they are in 
accordance with the Work First philosophy. 
Response: The Commission agrees with the commenter that flexibility for local 
areas to set policy and plan service delivery is important. The Commission 
believes that subsection (f) of this section provides the local flexibility as 
requested. We are committed to ensuring that, to the degree possible, program 
rules and policy will not restrict local authority and decision making. 
Throughout the development of these program rules, we evaluated the requirement 
and need for state policy as it related to local authority and flexibility. The 
Welfare Reform Division will involve local workforce development boards and 
local Commission staff in the development of written Choices Program guidelines. 
Prior to release of the final guidelines, there will be a state and local review 
and comment period. 
Comment: A commenter asks whether the rule on Work First precludes the option of 
providing short-term skills training for high demand occupations for those most 
qualified for the training. The commenter asks if a recipient would have to go 
through the Work First model and fail before being allowed the opportunity to 
participate in short-term training. The commenter references sec.811.62, which 
indicates that education and training services may be authorized under the 
program. 
Response: The Personal Responsibility and Work Opportunities Reconciliation Act 
sets forth expectations for programs and communities to move welfare recipients 
into the workforce. The Commission's Work First philosophy, policy, and service 
strategy contained in this rule are based on federal law and state welfare 
reform legislation in House Bill 1863, which emphasize time-limited benefits, 
personal responsibility, work, and retention of individuals in the labor market. 
Texas Human Resources Code sec.31.0126 requires DHS and the Commission to 
develop, by rule, a Work First program that offers a participant job readiness 
training, employment information, and employment services to motivate the 
participant to find and apply for a job. Section 31.0126 also requires 
development of alternate work programs and activities for persons needing work-
based experience and training to obtain unsubsidized employment. Section 
811.17(b) of the proposed rules does not preclude consideration of short-term 
training or skills development for participants engaged in job search services 
if it is determined they need education or training in order to be considered 
for available job openings in the job market. Additionally, basic skills and 
training may be combined with employment and work-related activities to assist 
participants in obtaining higher-level positions. 
Comment: A commenter suggests that sec.811.17(b) be reworded to reflect that 
local workforce development boards may delegate the development of written 
policy guidelines to their subcontractors. 
Response: State law specifies that the local workforce development boards are 
directly responsible and accountable to the workforce development division for 
planning, oversight, and evaluation of all workforce programs in their area. To 
the extent that development of policy pertains to those responsibilities, it is 
clearly a local workforce development board responsibility. This does not, 
however, preclude local workforce development boards from soliciting input from 
their subcontractors and the community. Therefore, the Commission declines to 
revise this rule. 
Comment: A commenter requests a clarification regarding sec.811.17(d) relating 
to program services for teens. If a teenage participant has completed high 
school or GED, will staff have the option to refer the client to job skills 
training or to an employment activity? 
Response: Determining what services teens need is a local decision. The rules 
provide those with knowledge the flexibility needed to serve the local 
population. Therefore, the Commission believes that no rule change is needed.
Comments regarding sec.811.18 Monitoring of Participation are as follows.
Comment: A commenter requests clarification about whether local workforce 
development board contractors would be required to obtain permission from the 
Commission as to which participants can be exempted from the weekly monitoring 
requirement stipulated in this section. As the basis for this question, the 
commenter references the language in the rule that states, "unless less frequent 
monitoring is approved under written guidelines by the Commission." 
Response: The timeframe for monitoring clients' participation is a local 
decision. The Commission suggests weekly monitoring, but has revised the rule by 
substituting the following two sentences for the first sentence of the proposed 
rule: "Choices staff shall monitor the participation in employment services 
activities, compliance with program requirements, and progress toward achieving 
the goals and objectives in the employability plan. Monitoring shall be ongoing 
and frequent, as determined by local workforce development boards or their 
subcontractors." 
Comment: A commenter states that the frequency of monitoring should be a 
decision made by the local workforce development board, not the Commission. The 
commenter also requests the word "monitor" be defined, as it could be 
interpreted differently. 
Response: The Commission agrees, and has amended sec.811.18 to reflect that the 
frequency of monitoring is a local decision. The rule as revised specifies the 
type of monitoring to be conducted. 
Comments regarding sec.811.19 Individual Development Accounts are as follows. 
Comment: A commenter states that the goal in the creation of individual 
development accounts (IDA) is commendable. 
Comment: A commenter questions the restriction that IDAs must be administered by 
the Commission or through contract with a public or nonprofit entity. If this is 
not required, the commenter requests that the Commission allow local control and 
administration of such accounts. This would assist in obtaining matching funds 
and ensure that each area establishes IDA programs that are based on local 
needs. The commenter states that local workforce development boards should be a 
party to any decision regarding the selection of an IDA contract manager, as 
well as establishing guidelines for use of IDAs. 
Response: The current rule, as written, does not preclude IDA programs from 
being developed in local workforce development areas. Texas Labor Code 
sec.301.067 requires the Commission to establish and implement a pilot program 
that establishes IDAs for TANF recipients who are participating in the 
subsidized work program. To fulfill this mandate, the Commission is requesting a 
rule change from DHS to disregard IDA balances as resources when determining 
eligibility for cash assistance. In addition, DHS may have to request a federal 
waiver from the United States Department of Agriculture (USDA) to exclude IDA 
balances from food stamp resource limits. If waivers are granted that extend to 
local areas, local workforce development boards may develop IDA programs. To 
avoid possible confusion as to who may administer the program, commas are added 
between "nonprofit" and "private" and between "private" and "or public entity."
Comment: A commenter questions whether TANF recipients will be allowed to make 
deposits into the account from sources other than temporary cash assistance 
funds. 
Response: Participants are not required to limit the source of deposits into an 
IDA to cash assistance funds. The Commission, local workforce development 
boards, or entities administering the IDA may restrict the source of deposits to 
earned income or other sources if they are providing matching funds. 
Comment: A commenter asks what entity determines which recipients are eligible 
to participate in the individual account program. 
Response: TANF recipients in the pilot program area who are participating in the 
subsidized employment program are eligible to participate in the IDA pilot 
program. If local workforce development boards implement an IDA program, the 
local workforce development board or its subcontractor will determine which 
recipients are eligible to participate, subject to DHS' rules and approval of a 
federal waiver from USDA. 
Comment: A commenter asks about the benefits of participating in an IDA if 
matching funds are not available. 
Response: If matching funds are not available, the benefit of participating in 
an IDA program would be reduced. However, if USDA grants a federal waiver of 
food stamp eligibility requirements, the non-matched deposits in the IDA would 
allow the participant to accumulate more resources without losing eligibility 
for food stamps or cash assistance. 
Comment: A commenter asks who is responsible for locating matching funds.
Response: The Commission, local workforce development boards, or entities 
administering the IDA program are responsible for identifying sources for 
matching funds. 
Comment: A commenter questions if the match is dollar for dollar. 
Response: The match is not required to be dollar for dollar. The ratio of 
matching contributions to participant deposits will be determined by the 
availability of funds. 
Comments regarding sec.811.20 Employment Retention and Re-Employment are as 
follows. 
Comment: A commenter asks if the intent of the requirement in sec.811.20(a) is 
to monitor individuals as long as they remain eligible for temporary cash 
assistance or as long as they receive cash assistance. The commenter suggests 
that some individuals who remain eligible may choose not to receive those 
benefits due to employment, and it would be difficult to monitor employment for 
persons not actually receiving cash assistance. 
Response: The Commission agrees that the rule on monitoring and reporting of 
employment hours at subsection (a) of this section should be clarified. The rule 
is therefore revised to read, "Monitoring of employment retention and reporting 
hours of employment are required for at least the length of time the participant 
receives temporary cash assistance." 
Comment: Two commenters ask for clarification about the timeframe in which 
employment retention and re-employment services may be provided. Can an 
individual request services at anytime after denial of cash assistance 
regardless of how long the individual has been denied? 
Response: The Commission believes it is unnecessary to set a maximum timeframe 
in which employment retention and re-employment services may be provided to 
persons who have been denied temporary cash assistance. The extent to which 
these services are provided, as well as the timeframe, is a local decision. 
Subsection (c) of this section states that "employment retention and re-
employment services may be made available...beyond denial of temporary cash 
assistance benefits." Allowing a local workforce development board to make this 
decision is consistent with the philosophy of local flexibility throughout the 
rules in Chapter 811. 
Comment: The commenter asks how long an individual would be eligible for child 
care under subsection (c) of this section and what is the appropriate funding 
source. 
Response: Transitional child care is available for up to 12 months or 18 months 
after cash assistance denial for employed individuals as specified in 
sec.811.83. Transitional child care for unemployed individuals may be provided 
for up to eight weeks to complete education or training and for up to four weeks 
to seek employment. Section 811.20(c) is revised to provide a cross-reference to 
the child care rules at 40 TAC Chapter 809 to clarify eligibility for child 
care. Child care provided beyond the time limits for transitional child care 
would use child care funds for income-eligible clients through the Child Care 
Management System or welfare-to-work grant funds, at local option. 
Comment: A commenter requests that the phrase "as quickly as possible" in 
sec.811.20(c)(5) and (6) be defined or that the rule language be modified to 
specify that this timeframe is to be determined by the local workforce 
development boards. 
Response: The Commission believes that "as quickly as possible" is not a phrase 
that must be defined. It depends on many variables, such as the condition of the 
local labor market, resources available, and the client's individual situation. 
The Commission has modified the language in sec.811.20(c)(5) and (6) to indicate 
that the provision of job readiness, job search, job placement, and job 
development services is a local decision. 
Comments regarding sec.811.42 Subsidized Employment are as follows.
Comment: A commenter suggests that sec.811.42(b) conflicts with sec.811.13(3) 
that states that caretakers with children under the age of six cannot be 
required to participate more than 20 hours per week. The commenter asks if this 
requirement does not apply to subsidized employment. 
Response: The hours per week requirement for subsidized employment in 
sec.811.42(b) is not in conflict with the rule for good cause in sec.811.13(3). 
The rule language specifies that the participant is encouraged, not required, to 
work between 35 and 40 hours per week. If a participant claims good cause due to 
the weekly hours required for the specific position, then the client would not 
be required to participate in that activity or in the specific position. 
Consideration could be given to assigning the client to a subsidized employment 
position that is 20 hours per week, or including some other appropriate activity 
in the client's employability plan. 
Comment: A commenter supports the goal of same wages and benefits incorporated 
in (c)(2) of this section. 
Comment: A commenter has questions and concerns about specifications in (c)(4). 
The commenter questions who will be responsible for writing the contract with 
the employer, including determining the amount of the wage subsidy. 
Response: Consistent with legislative intent, sec.811.42 supports local control 
for local workforce development boards electing to operate this program and 
encourages public and private partnerships. Local workforce development boards 
have the authority to negotiate subsidized employment contracts with employers; 
to decide which participants are enrolled in this activity; to determine the 
length of any individual subsidized employment placements not to exceed four 
months; to set the amount of the wage subsidy; and to negotiate policy and 
contract provisions determined necessary to protect the local workforce 
development board, the intent of the program, and the participants. 
Comment: A commenter states that the rule is not clear how the diverted benefits 
will be distributed to the employer, and is concerned that the rule divides 
responsibilities between local staff and the Commission. The commenter believes 
this may create parallel systems at the state and local level as well as 
unnecessary reporting. 
Response: The term "Choices staff," as used throughout these rules, includes 
Commission staff and contracted services providers. The term is not meant to 
impose dual responsibilities on Commission staff, local workforce development 
boards, and contract staff. However, the wage subsidy is derived from public 
assistance benefits that are under the jurisdiction of another state agency. 
Therefore, it is prudent to have a degree of state control over the system of 
transferring benefits for the subsidy portion. An interagency agreement between 
DHS and the Commission establishes a state methodology for the diversion of the 
public assistance benefits. The Commission is committed to developing the most 
efficient and cost effective procedures for distribution of payments to 
participating employers. 
Comment: A commenter suggests that language be added to ensure that employers 
retain participants who successfully complete the contract in order to eliminate 
misuse of this program and the participants. 
Response: The Commission agrees that the purpose of implementing subsidized 
employment is to provide placements that lead to unsubsidized employment and 
self-sufficiency for the participant and the family. In entering subsidized 
employment contracts with employers, local workforce development boards or their 
subcontractors may consider terms encouraging the retention of subsidized 
employment participants in an unsubsidized employment position. As this is a 
local decision, the Commission declines to revise the rule. 
Comment: A commenter requests that the rule specify which entity is responsible 
for paying workers' compensation for participants in subsidized employment.
Response: The Commission has revised sec.811.42 by adding subsection (e) to 
clarify that the subsidized employment participants are considered employees of 
the subsidized employment employer. 
Comments regarding sec.811.43 Work Skills Training are as follows. 
Comment: A commenter states that the rule on Work Skills Training seems similar 
to the "unpaid work experience" component. The commenter asks if the number of 
hours worked and wages earned must be equivalent to the grant amount.
Response: The new Chapter 811 replaces the rule on unpaid work experience. The 
Work Skills Training replaces the unpaid work experience component, and complies 
with state legislation that requires the Commission to develop and implement a 
volunteer work program. The Commission believes that the rule language as 
written ensures that the intent of this activity is to obtain training in work 
skills that will improve the employment prospects for participants. The client 
is not paid wages in this activity. Written program guidelines will prescribe 
procedures for establishing maximum hours for this activity per recipient. 
Comments regarding sec.811.44 Texans Work Program are as follows. 
Comment: A commenter states that the Texans Work Program should be designed to 
be administered locally. 
Response: The Commission supports the commenter's position that the Texans Work 
Program should be administered locally. We do not believe that the rule as 
written contradicts local control and local development of this program.
Comment: A commenter states that, when feasible, it is reasonable to have the 
Texas Skills Standards Board approve the curriculum. However, as there are few 
areas where standards are established, it is not reasonable to require every 
training program be reviewed. Local workforce development boards already have 
responsibility for identifying demand and target occupations and approving 
training providers. Therefore, they are capable and should be allowed to approve 
local training programs. The commenter suggests that, based on their knowledge 
of the local labor market, the local workforce development boards are in a 
better position than the Commission to approve such training. 
Response: The Commission agrees that local workforce development boards have the 
local expertise, information, and the responsibility for ensuring that training 
programs are consistent with the demand and target occupations. However, Senate 
Bill 781 mandates that training programs be approved by the Commission and the 
Skills Standards Board. In writing guidelines for approval of training courses, 
the Commission will support local decision-making and local approval to the 
greatest extent possible. Until skill standards are developed, the Skills 
Standards Board involvement will be collaborative, rather than as an approval 
body. 
Comment: A commenter asks if the local workforce development board can begin 
working on a Texans Work Program as soon as the rules are published, or whether 
the program will be piloted. 
Response: Local workforce development boards may develop a Texans Work Program 
as soon as final policy guidelines are issued, any necessary DHS rule changes 
are completed, and a federal waiver request is submitted to, and approved by, 
the USDA. 
Comment: A commenter supports the goal of creating a training stipend for 
trainees in the Texans Work Program as specified in subsection (h). 
Comment: A commenter believes that the language in subsection (h) indicates that 
the only allowable assistance for a participant is that authorized by DHS staff 
and would preclude receipt of assistance from Choices staff, JTPA staff, or 
other state or local providers. The commenter asserts that appropriate Choices 
staff or case management staff of a local contractor should make the 
determination of assistance. 
Response: The language in subsection (h) is specific to the receipt of a 
training stipend by Texans Work Program participants. Such stipend is in 
addition to the cash assistance and food stamp benefits provided by DHS. It is 
not the intent of the Commission through these rules to restrict any local 
decisions on the amount of assistance, services, or support to participants in 
the Choices Program, which lead to employment and self-sufficiency. Some types 
of financial assistance provided to temporary cash assistance recipients from 
other programs impact their eligibility for or the amount of cash assistance 
received. 
Comments regarding sec.811.45 Self-Employment Assistance are as follows.
Comment. A commenter states that, to the extent possible, small business 
development centers should be utilized to provide this assistance, rather than 
creating another entity or program. These programs already provide these 
services and should be used. If contracting with small business development 
centers is not available in certain areas, the local workforce development 
boards should be allowed to contract with established entities rather than the 
Commission contracting for these services. 
Response: The language in sec.811.45 does not restrict local workforce 
development boards from establishing contracts with appropriate entities for 
self-employment assistance services. Subsection (b) stipulates that the 
microenterprise development program is a type of self-employment assistance and 
that the microenterprise development program is to be administered centrally, 
which is consistent with the Appropriations Act, 95th Legislature, Regular 
Session, Article IX, Rider 27. 
Comment: A commenter has several questions and comments regarding the 
microenterprise development program. How will the participant's income and asset 
accumulation affect the qualification for cash assistance, food stamps, and/or 
an IDA? Will encouragement of this program suddenly force participants off 
public assistance as soon as they receive a small loan? The commenter states 
that it takes time for a small business to become profitable enough to enable a 
person to become self-sufficient. 
Response: A participant's income and asset accumulation can affect both 
eligibility for food stamps and TANF cash assistance, as well as the amount of 
benefits. In calculating net income, which determines the benefit amount, some 
business-related expenses will be deducted from gross self-employment income. 
Costs that are allowable deductions from gross income are detailed in DHS' 
Income Assistance Handbook. Households are subject to resource limits to 
maintain eligibility for food stamps and cash assistance. A household is not 
eligible if the total value of available resources exceeds $2,000, or $3,000 if 
the household has a member age 60 or over. Income producing property, except 
real property, that is essential to a household member's self-employment does 
not count toward the resources limit. Rules to be developed by DHS for the IDA 
program will determine how a participant's income and asset accumulation affect 
qualifications to participate in an IDA. The Commission plans to implement an 
IDA program targeted for participants in subsidized employment. Local workforce 
development boards may develop and implement an IDA program in their area. The 
receipt of a small loan will not affect a participant's eligibility for cash 
assistance, but the available amount does count toward the resource limit in 
determining eligibility for food stamps. However, if income-producing property 
is purchased with loan funds as a condition of the loan, then that amount of the 
loan does not impact eligibility. 
Comment: A commenter states that the four optional assistance services should be 
optional for the participants in a microenterprise program, but not optional for 
the local service delivery provider. The commenter states that the contractor 
should ensure access to any and all of the services within an accessible area if 
the individual chooses these services. The commenter suggests that 
entrepreneurial training should be available for every participant in the 
program. 
Response: The Commission agrees with the commenter's suggestion that the service 
provider should offer the full range of microenterprise development assistance 
services to each participant in the program. Training should be provided to 
enable each participant to reach an acceptable level of proficiency in business 
skills prior to receiving financial assistance through the program. The 
Commission has revised the language in subsection (d) to read, "Self-employment 
assistance services available to all participants in the program shall include, 
but not be limited to: (1) entrepreneurial training, a required activity for 
each participant in the program; . . . ." Sections 811.45(d)(2)-(4) are 
unchanged.
Comment: A commenter suggests that financial assistance should include access to 
both small loans and credit, as well as to savings accounts. 
Response: The Commission plans to provide financial assistance through loans 
initially. We are currently studying ways to enable recipients of cash 
assistance to accumulate savings to finance business start-up through IDAs. An 
issue that requires resolution is the asset limits for TANF and food stamp 
assistance that would require changes in DHS policy and a possible waiver of 
federal regulations. Another issue is the considerable cost of administering an 
IDA program. 
Comment: A commenter requests information on the type of outreach that will be 
done to ensure proper notice of the Request for Proposal to potential 
contractors. 
Response: Consistent with state administrative practice requirements, the 
Commission will publish a Request for Proposal (RFP) for the microenterprise 
development program in the Texas Register. We will also send notice of the RFP 
to potential bidders that appear on our list of self-employment assistance 
services vendors. That list includes all providers who have contacted us since 
passage of the appropriation. Service providers that wish to receive notice of 
the RFP may contact the Commission's Welfare Reform Division at (512) 463-2222.
Comment: A commenter asks if the RFP will be open to service providers, research 
and academic agencies, or both. The commenter states that the contractor should 
be able to collect pertinent performance data and administer appropriate 
monitoring and evaluation mechanisms of all three program sites. The commenter 
states that for future funding and possible expansion of the program, the 
legislature will need information on both the participant's experience and 
outcomes and the program styles and approaches. 
Response: The RFP will be open to a provider with experience in credit-based 
programs. The Commission agrees that a thorough evaluation of the program is 
essential and will ensure that the criteria for selection in the RFP will 
include necessary reporting capabilities. 
Comment: A commenter asks the Commission to consider allocating the $2 million 
appropriation primarily towards microenterprise and self-employment assistance. 
The commenter states that other local innovations that receive funding should 
complement the needs of those receiving microenterprise assistance.
Response: The majority of the $2 million appropriations to the Commission has 
been allocated to self-employment assistance. Some funds will be allocated for 
local innovation grants to encourage local workforce development boards and 
community partners to test new ideas for empowering TANF recipients to attain 
self-sufficiency. 
Comments regarding sec.811.62 Educational Activities are as follows.
Comment: A commenter requests a definition of "postsecondary vocational 
education" in item (5) and for "vocational job skills." 
Response: The Commission has included definitions for vocational education and 
job skills training in sec.811.2, relating to Definitions. 
Comment: Two commenters are concerned about the language in subsection (5) 
related to postsecondary vocational education and the 12-month timeframe. They 
ask how the vocational and time limit restrictions in the rule impact self-
initiated education and training, such as a client who is in the senior year of 
college. One of the commenters states that, historically, the program supported 
completion of baccalaureate degrees within any time limits set by policy. Does 
the new rule require the client to go to work even if it means dropping out of 
college? 
Response: The Commission has revised sec.811.62(5) to allow for the 
consideration of self-initiated postsecondary education. While federal law is 
very specific regarding education and training, TANF does allow states to 
include, as work activities, all those activities currently authorized under a 
state's waiver. Therefore, the Commission has some latitude to define education 
and training activities and agrees that it may not be in the best interest of a 
TANF recipient or of the program goals to require a client to drop out of 
school. 
Comments regarding sec.811.81 Support Services are as follows. 
Comment: A commenter suggests adding a rule to require written notification to 
applicants and recipients regarding the availability of support services. The 
commenter provides as a reason for this change DHS' record of informing clients. 
The commenter suggests that, for the Commission to not inform applicants and 
recipients in writing of the support services available, the Commission may 
appear less informative than DHS. The commenter continues the rationale by 
asserting that, because the premise for support services is to foster transition 
to employment, it makes sense to give written notice of the support services 
available. The commenter recommends development of a brochure as a means of 
informing clients about services available, and offers the assistance of the 
Texas Clients Council in providing Spanish language for the brochure. 
Response: The Commission agrees with the commenter about the importance of 
providing information regarding Choices services to temporary cash assistance 
applicants and recipients. In relation to workforce orientations, we believe 
that sec.811.17(a) is sufficient rulemaking about client informing wherein it 
specifies that clients be informed about services available through Choices. The 
commenter's perception that Commission staff or local workforce development 
board service contractors do not provide appropriate information to program 
participants causes concern. Commission staff and local workforce development 
board contractors ensure that clients are fully informed about the local labor 
market, the services available to them in seeking employment, and the 
employability planning options. Services are individualized and employability 
plans are based on a full employment assessment. Support services for employment 
or participation in activities are provided as needed. Therefore, the Commission 
disagrees that the rule needs revision. We will take under advisement the 
suggestion to develop a new client brochure and appreciate the offer of 
assistance. DHS and Commission staff distribute several brochures to clients. 
Local workforce development boards or their contractors may develop client 
informing materials that best describe the employment picture and services 
available in the local area. 
Comments regarding sec.811.83 Transitional Child Care are as follows.
Comment: A commenter suggests that local workforce development boards should be 
allowed to establish guidelines on the length of transitional child care for 
unemployed participants. The commenter asserts that local workforce development 
boards should be able to provide child care services while an individual is 
engaged in work search activities based on locally established policies. 
Response: The transitional child care services and timeframe are based on child 
care rules at 40 TAC Chapter 809. The Commission's rule on the timeframe for 
provision of transitional child care services for someone who is not employed is 
up to four weeks to allow for job search as stated in sec.811.83 (3). We believe 
that no change in sec.811.83 is necessary. 
Comments regarding sec.811.84 Tranportation are as follows. 
Comment: A commenter requests clarification regarding transportation assistance 
and asks whether there are any Commission limitations established for that 
assistance. 
Response: The Commission believes that this is an area best left to local 
control. We, therefore, do not plan to set state-prescribed limits on the amount 
or methods for providing this assistance. 
Comment: A commenter asks about the suggested method of tracking the 
transportation money. 
Response: The Commission does not plan to prescribe any single method for 
tracking support services payments. Written program guidelines will provide 
suggestions about methods for providing transportation and for tracking support 
services payments. Transportation support services for individual clients must 
be entered into the state-automated client activity and service reporting system 
in order to maintain state and federal program and expense reporting 
requirements. 
Comments regarding sec.811.85 Work-Related Expenses are as follows. 
Comment: A commenter requests clarification regarding work-related expenses and 
the provision allowing local workforce development boards to develop policies on 
the methods and limitations for provision of work-related expenses. The 
commenter asks whether the Commission will place limits on the amount of money 
the contractor can provide for these expenses per client. 
Response: As this is an area best left to local control, the Commission does not 
intend to set state-prescribed limits on the amount or type of work-related 
expenses that could be covered under the program. 
Comments regarding sec.811.86 Wheels for Work are as follows. 
Comment: A commenter asks if there are model programs for providing such 
services as Wheels for Work and, if so, where, how, and with what results.
Response: Several states are exploring ways to move the concept of the Wheels 
for Work into practice. A program in Florida operates entirely without state 
support and has transferred 30 vehicles to single working mothers. That program 
relies heavily on the donations of one car dealer, who also provides repairs and 
contributes to the cost of insurance. New York and Maryland also have programs 
with limited successful transfers of automobiles. 
Comment: A commenter asks how many donated vehicles are estimated in Texas.
Response: The Commission's pilot program in the Dallas/Fort Worth area has 
transferred one automobile to date. We anticipate additional vehicle transfers 
this spring. The pilot program relies on a broad coalition of community, state, 
and local workforce development partners. The Commission believes that the best 
chance for success in the program lies in the strong partnership with the 
automobile industry, which has participated in the pilot since its inception. We 
have no basis for estimating the number of vehicles that could be donated 
through the program in Texas. With the involvement of the Texas Automobile 
Dealers Association statewide, there is some promise of meaningful results for 
the program. 
Comment: A commenter states that liability insurance is very costly for 
individuals who may be receiving only minimum wage. Donations are probably used 
vehicles and vulnerable to repair and maintenance needs. With these combined 
costs, few people will be able to benefit from the program although the 
transportation is needed. 
Response: Local workforce development boards may decide on paying or providing 
work-related expenses, including transportation costs for clients in their 
programs, as specified in sec.811.85. Assistance with some of the initial 
insurance costs could be included as a work-related transportation expense, at 
local option. 
Comment: A commenter asks if there is a limit for reimbursing qualified repair 
expenses, and who determines this. 
Response: Reimbursement for necessary repair expenses could be covered as work-
related expenses at the option of local workforce development boards. The 
Commission has not set limitations on the amount of work-related expenses that 
can be covered. Local workforce development boards may develop policy on the 
methods and limitations for provision of work-related expenses, as specified in 
sec.811.85(b). 
Comment: A commenter asks if car pool or van services should be an option in 
addition to donating vehicles to individuals. The commenter suggests that this 
would seem to reach those participants who cannot afford the insurance and 
upkeep of a donated vehicle. 
Response: Local workforce development boards may also offer car pool and van 
services as an option for participants in the program and as a support for 
employment and employment retention. Traditionally, the employment services 
program has encouraged clients to use car pools, vans, and other public or 
private transportation methods when those methods are the most economical and 
meet the participants' needs. The transportation barriers faced by the Choices 
Program participants are complex and vary from person to person and from area to 
area. Many approaches and interagency and inter-program coordination are 
required at the state and local levels to adequately address the overall 
problem. 
Comments regarding sec.811.87 GED Testing Payments are as follows. 
Comment: A commenter requests clarification of the rule to read that "payments 
for GED testing shall be made by the Commission, local workforce development 
board or its contractor." 
Response: The commission agrees and has made this change in the rule.
Comments regarding sec.811.101 Fair Hearings or Appeals are as follows.
Comment: Two commenters state that the appeal period specified in subsection (b) 
should be extended to be consistent with DHS' rules. One commenter specifies 
that it should be extended to 90 days. One commenter suggests that if the client 
appeals within 10 days of the notice of termination, reduction, or suspension of 
services, services should continue unchanged until the appeal is decided. The 
commenter suggests language to this effect. The commenter's reason for 
requesting this change is consistency with DHS procedures and long-standing 
Texas practice. The commenter continues by stating that the preservation of the 
status quo avoids irreparable harm if the decision being appealed is erroneous. 
The commenter believes that the existence of an appeal procedure implies that 
erroneous decisions may occur. The commenter believes that, just as with the DHS 
client services, there is a risk that inaccurate information may result in 
improper service denial. The option of maintaining the status quo, if requested, 
will serve the useful purpose of avoiding service interruptions that may be 
found unjustified. 
Response: The Commission believes that 30 days is sufficient time for a client 
to decide to request a hearing. Due to the nature of employment services 
activities and the support services that assist clients in working or 
participating in those activities, it is often inappropriate to continue 
employment services activities or support services for those activities pending 
the outcome of an appeal. Therefore, the Commission has not made these requested 
changes to the rule. 
Comment: A commenter requests deleting "upon request" from the last sentence of 
subsection (b). The commenter believes that the concepts in DHS' rule at 40 TAC 
sec.79.1201 should be incorporated in this rule. The commenter suggests adding 
language requiring Choices staff to inform persons aggrieved by any Choices 
decision or policy of their right to a fair hearing; to explain the procedure 
for an appeal, the person's right of appeal, and the right to be represented by 
others, including legal counsel; and to provide information to service 
applicants and recipients concerning available legal services in the community. 
The commenter also suggests that legal services' information be provided through 
notices in each office. The commenter recommends that the rule provide for the 
appellant to review appeal procedures that are available in the offices of 
Choices staff. The commenter's reasons for this change are that it is the 
approach long used in Texas and would promote accuracy in decision-making under 
Choices. He asserts that, if appeal procedures are not known, they may as well 
not exist. The commenter asserts that since workplaces are required to inform 
employees, without request, of their rights under workers' compensation, equal 
employment opportunity, and family leave laws, it makes analogous good sense for 
the suggested revisions to be made. 
Response: The Commission agrees to modify this section to provide for 
notification to clients of their right to appeal and the procedures for 
requesting an appeal. The last sentence in subsection (b) has been revised to 
read, "Choices staff shall inform participants of their right to appeal a 
decision of Choices staff related to employment services or support services and 
the procedures for requesting a fair hearing." The Commission believes, however, 
that the level of detail suggested by the commenter for the rule is unnecessary 
for rulemaking. Local workforce development boards operating the program may 
develop policies and practices providing this level of detail. General Comments 
Comment: A commenter asks if the way single-parent (all-family) households are 
counted for participation rates will be changed. 
Response: Yes. The method for determining participation rates for both all-
family cases and two-parent family cases has changed. 
Comment: A commenter asks if cases, rather than clients, are counted in both the 
numerator and the denominator. If so, the commenter questions what happens to 
all of the clients being served who are mandatory teens. Will they not be 
counted in the numerator portion of the participation rate formula? If that is 
the case, if a parent is not meeting participation requirements, but the teen 
member of the household is meeting the requirements, will the case be counted 
toward participation? 
Response: The state bases the all-family rate on the number of single parent and 
two-parent family cases meeting work requirements for at least 20 hours per week 
divided by the number of cases with clients that the state required to 
participate in the Choices Program minus the number of cases subject to sanction 
and the number of cases that have good cause. Sanctioned cases are excluded from 
the participation rate base only for three out of twelve months. The state bases 
its two parent participation rate on the number of individuals in two-parent 
family cases meeting work requirements for an average of at least 35 hours per 
week divided by the number of two-parent family cases that the state requires to 
participate in the Choices Program minus the number of cases subject to sanction 
and the number of cases with good cause. 
The participation of mandatory teen clients who are members of an assistance 
unit is no longer counted towards the participation rate calculations. 
Therefore, if the adult or parent is not meeting the participation requirement, 
but the teen is, the hours of activity for the teen will not be counted toward 
participation.
Comment: A commenter asks about rules that address clients who have gone from 
exempt to mandatory while certified. The commenter asks that since Choices is 
the only outreach discussed in the rules and is the primary way to outreach 
participants, how will the local workforce development board contractors be 
expected to outreach this population of clients? 
Response: The rules in Chapter 811 govern the Choices Program services. The term 
Choices does not relate to any single outreach method or specific activity 
within the array of services included in these rules. Section 811.15 provides 
for a variety of methods for accessing Choices services. These include direct 
referrals, outreach, and clients requesting services. 
Although the primary method for enrolling applicants and new recipients for 
Choices services would be through the direct referrals from DHS for workforce 
orientation and employment planning sessions, Choices Program providers are 
encouraged to check for eligible clients on a regular basis for outreach 
purposes. As this is a local decision, the Commission does not intend to include 
this level of procedural and practice detail in the rule base for Choices. The 
Commission staff will provide technical assistance to local workforce 
development boards or their subcontractors on the methods and procedures for 
conducting outreach and ensuring that appropriate recipients are contacted for 
services.
Comment: A commenter requests adding a rule allowing local workforce development 
boards to refer to the TANF federal regulations when the state rules do not 
address an issue. The commenter feels that while the state rules are in 
accordance with the federal regulations, all aspects of the regulations are not 
included in the state rules. 
Response: The Commission does not believe that it is necessary or appropriate to 
specify in state rules that local workforce development boards or any resident 
are permitted to view federal regulations or statute. The Commission will 
provide information and guidance to local workforce development boards regarding 
the federal requirements. 
Comment: A commenter states that it does not appear that private employers are 
carrying any responsibility for providing transportation or child care services 
during and after job placement. The commenter suggests that employers who 
benefit from having subsidized employees and, in some cases, hire them should 
share in the burden of caring for their workers. The commenter asks if the 
Commission has explored potential employer requirements that involve the 
employers sharing the cost of these services in programs such as subsidized 
employment, work skills training, and the Texans Work Program. 
Response: Employers participating in the subsidized employment program are 
required to offer the same level of pay and benefits to subsidized employees as 
normally offered to employees in similar, unsubsidized positions, as stipulated 
in sec.811.42(c)(2). Employers who offer transportation or child care to 
unsubsidized employees would be expected to offer the same assistance to the 
subsidized employee. Employers participating in the Texans Work Program have 
limited and specific responsibilities under the program as enacted in state 
legislation, Senate Bill 781. These responsibilities are to provide quality 
training, to provide skills certification, to report attendance, and to pay the 
employer's portion of the training stipend. It is the Commission's opinion that 
employers participating in the Texans Work Program or other training programs 
cannot be required to provide additional benefits without a legislative change. 
The Texas Work and Family Clearinghouse (Clearinghouse), a program administered 
by the Commission, is working to develop awareness and support among employers 
on dependent care issues facing employees. The state funds the Clearinghouse to 
create employer-led coalitions that support dependent care services in Texas 
communities. 
Comment: A commenter states that, although the goals of both DHS and the 
Commission are to help people receiving assistance become self-sufficient, a 
large percentage of the recipients do not receive the right type of assistance.
Response: Both the federal and state welfare reform laws enacted strong 
individual responsibility provisions, but also provided for necessary support 
services to assist clients in meeting self-sufficiency expectations. The state 
reform shifted control of job training and employment programs to a local level, 
under the leadership of local workforce development boards. Persons familiar 
with the needs of residents in the community, rather than state government, 
design the services. Choices services are integrated with other programs and 
delivered through a network of one-stop career centers. At these centers, 
Choices participants may access an array of services that can help them 
transition to self-sufficiency. The rules in Chapter 811 set forth the policies 
governing the employment and support services to be provided. Individualized 
employability plans, based on an assessment of each client's needs, are the 
basis for ensuring that clients have access to necessary resources to increase 
employability.
Comment: A commenter states that recipients are sent out on low-income jobs 
because they do not have necessary skills. The commenter suggests that 
recipients need more help with education and training. Many recipients are not 
allowed to continue education, or do not receive the support to continue the 
education or training. The commenter asserts that loans and Pell grants do not 
help people with low income, because they do not have the ability to repay the 
loans. 
Response: The State of Texas is committed to ensuring that support services, 
including education and training, are available, if needed, to help recipients 
obtain a job or to gain better wages. The goal of the Choices Program is to 
ensure that all cash assistance applicants and recipients obtain, at the 
earliest opportunity, employment that leads to self-sufficiency. The program is 
designed to allow all families the opportunity to obtain employment; to gain 
work experience; and to have access to post-employment education, training, and 
support so that families may more fully realize their career goals and reach 
self-sufficiency. Due to the time limits on cash assistance, we believe that the 
best service to clients is to help them find employment as soon as possible, to 
provide temporary support to the clients once they have found employment, and to 
help and encourage clients to make plans for meeting longer-term educational 
goals after they are employed. 
Comment: A commenter states that Commission staff does not do all that they can 
to properly inform clients of the things they should know. Clients should be 
given receipts for paperwork. 
Response: At the point of application for TANF benefits, clients sign a personal 
responsibility agreement at DHS that explains their eligibility requirements. 
Throughout the Choices service delivery process, clients are provided both oral 
and written information that explains their employment services requirements. 
Clients also are involved in developing an employability plan that they agree to 
by signing. Choices staff reinforce these requirements from the point of 
workforce orientation throughout the employability planning process. 

40 TAC sec.sec.811.1-811.5, 811.10-811.23, 811.60
The repeals are adopted under the Texas Labor Code, Chapter 301, which 
authorizes the Commission to adopt rules necessary for the administration of the 
Commission and the workforce development division. The repeals of old sections 
are also adopted under the Texas Human Resources Code, Title 2, Subtitle C, 
Chapter 31, Financial Assistance and Service Programs, which governs employment 
services for recipients of financial assistance. 
This agency hereby certifies that the adoption has been reviewed by legal 
counsel and found to be a valid exercise of the agency's legal authority.
Filed with the Office of the Secretary of State on March 26, 1998.
TRD-9804333
J. Randel (Jerry) Hill
General Counsel
Texas Workforce Commission
Effective date: April 15, 1998
Proposal publication date: January 2, 1998
For further information, please call: (512) 463-8812

CHAPTER 811. Choices
SUBCHAPTER A. General Provisions
40 TAC sec.811.1, sec.811.2
The new sections are adopted under the Texas Labor Code, Chapter 301, which 
authorizes the Commission to adopt rules necessary for the administration of the 
Commission and the workforce development division. The new sections are also 
adopted under the Texas Human Resources Code, Title 2, Subtitle C, Chapter 31, 
Financial Assistance and Service Programs, which governs employment services for 
recipients of financial assistance. 

sec.811.2. Definitions. 
The following words and terms, when used in this chapter, shall have the 
following meanings unless the context clearly indicates otherwise. 
(1) Choices -- The program formerly known as the Job Opportunities and Basic 
Skills Training (JOBS) program. 
(2) Choices staff -- Any personnel assigned to functions responsible for 
providing direct employment services or support services for applicants and 
recipients of temporary cash assistance. This term applies to TWC staff, to 
staff of Local Workforce Development Boards, and to contracted service 
providers. 
(3) Commission -- The Texas Workforce Commission (TWC).
(4) DHS -- The Texas Department of Human Services. 
(5) Employability plan -- A plan developed by Choices staff and a participant 
that is based on an individual and family assessment, that delineates the goal 
of self-sufficiency through employment, and sets out the steps necessary to 
achieve the goal. The plan, signed by the participant and the Choices staff 
member, is the participation agreement for compliance purposes. 
(6) Employment entry -- Entry of a participant into an unsubsidized, paid job or 
when a participant begins a personal business, a farm, or other self-employment 
enterprise. 
(7) Exempt -- The status of a recipient of temporary cash assistance who is not 
required to participate in employment services activities, as determined by DHS 
staff. 
(8) Exemptions -- Criteria established by DHS that permanently or temporarily 
excuse a recipient of temporary cash assistance from the employment services 
participation requirements. 
(9) GED -- Abbreviation for General Educational Development, a trademark for a 
series of tests measuring skill in writing, social studies, science, reading, 
and math at the high school level; the initials sometimes refer to the 
equivalency certificate (formal name in Texas: Certificate of High School 
Equivalency). 
(10) Good cause determination -- A decision by Choices staff that a participant 
is not able at the current time to participate in employment services or in 
ancillary services required as part of the employability plan. 
(11) Individual development account (IDA) -- A state-established account for 
deposits by a recipient of temporary cash assistance and any matching funds from 
employers or other community organizations to be used for specific purposes. 
(12) JTPA -- The Job Training Partnership Act and the programs established under 
such laws to prepare youth and adults facing barriers to employment for 
participation in the labor force by providing job training and other job 
services. 
(13) Job skills training -- Training in technical job skills and equivalent 
knowledge and abilities in a specific occupational area offered by post-
secondary institutions, secondary schools, public and private agencies, and 
other organizations. 
(14) Local workforce development board -- An entity formed under Texas 
Government Code, Title 10, Subchapter F and as detailed in sec.8.801(b) of this 
title (relating to Requirements for Formation of Local Workforce Development 
Boards). 
(15) Nonexempt -- The status of a recipient of temporary cash assistance who is 
required to participate in employment services activities, as determined by DHS 
staff. 
(16) Participant -- A person who is enrolled in Choices services. 
(17) Penalty -- A reduction in a family's temporary cash assistance grant 
applied by DHS staff when a nonexempt recipient is sanctioned. The financial 
penalty is equal to the needs amount for one parent each month of the sanction 
period. In two parent families, if both parents are sanctioned, the penalty is 
equal to the needs amount for both parents. See definition of sanction. 
(18) Sanction -- Action taken by DHS staff when a nonexempt recipient of 
temporary cash assistance does not comply with employment services requirements. 
See definition of penalty. 
(19) Subsidized employment -- A time-limited training position that meets 
suitability and non-displacement requirements of the Federal Unemployment Tax 
Act and other federal laws. 
(20) TAC -- Texas Administrative Code. 
(21) Temporary cash assistance -- A cash grant provided through DHS to persons 
who meet certain residency, income, and resource criteria as provided for under 
the federal Personal Responsibility and Work Opportunity Reconciliation Act and 
the Temporary Assistance for Needy Families block grant statutes and 
regulations. The acronym used for this assistance is TANF. The former name was 
Aid to Families with Dependent Children or AFDC. 
(22) Vocational education -- Courses offered by an institution of higher 
learning that include organized units of technical or vocational instruction and 
training which are directly related to the acquisition or updating of 
occupational skills and for which a certificate or an associate of applied 
science is awarded. 
This agency hereby certifies that the adoption has been reviewed by legal 
counsel and found to be a valid exercise of the agency's legal authority.
Filed with the Office of the Secretary of State on March 26, 1998.
TRD-9804334
J. Randel (Jerry) Hill
General Counsel
Texas Workforce Commission
Effective date: April 15, 1998
Proposal publication date: January 2, 1998
For further information, please call: (512) 463-8812

SUBCHAPTER B. Eligibility and Participation
40 TAC sec.sec.811.11-811.20
The new sections are adopted under the Texas Labor Code, Chapter 301, which 
authorizes the Commission to adopt rules necessary for the administration of the 
Commission and the workforce development division. The new sections are also 
adopted under the Texas Human Resources Code, Title 2, Subtitle C, Chapter 31, 
Financial Assistance and Service Programs, which governs employment services for 
recipients of financial assistance. 

sec.811.13. Good Cause. 
A recipient of temporary cash assistance who fails to comply with employment 
services requirements may have good cause if verified or otherwise demonstrated 
by the recipient to the satisfaction of Choices staff. Each of the following may 
constitute good cause. 
(1) The person is temporarily ill or incapacitated. 
(2) The person is incarcerated or has a court appearance.
(3) The person is the parent or caretaker personally providing care for a child 
under the age of six and shall not be required to participate more than 20 hours 
per week. This good cause situation shall not apply to custodial parents who 
have not completed high school or its equivalent or to two parent families where 
one parent is able to care for the child.
(4) The person is the caretaker of a physically or mentally disabled child who 
requires the caretaker's presence in the home. 
(5) The person demonstrates that there is no available transportation or there 
is a breakdown in transportation arrangements. 
(6) The person demonstrates that there is no available child care or there is a 
breakdown in child care arrangements. 
(7) There is a lack of other necessary support services and participation is not 
deemed possible without such services. 
(8) The person receives a job referral that results in an offer below the 
minimum wage, except for certain work-related, on-the-job training activities 
such as work skills training.
(9) There are no available jobs within reasonable commuting distance, which 
means that travel from home to the job or training would require commuting time 
of more than two hours round trip, or the distance prohibits walking and 
transportation is not available. 
(10) A family crisis or family circumstances preclude participation, including 
being a victim of domestic violence. The recipient shall be expected to engage 
in problem resolution through appropriate referrals for counseling and 
supportive services. Good cause for domestic violence purposes shall be 
temporary and reevaluated within three months. Good cause shall not be extended 
beyond a total of twelve months for domestic violence purposes.

sec.811.18. Monitoring of Participation.
Choices staff shall monitor the participation in employment services activities, 
compliance with program requirements, and progress toward achieving the goals 
and objectives in the employability plan. Monitoring shall be ongoing and 
frequent, as determined by local workforce development boards or their 
subcontractors. Monitoring shall consist of tracking and reporting hours of 
participation, evaluation of the participant's progress in the assigned 
activity, and determining and arranging for any intervention needed to assist 
the participant in complying with program requirements. 

sec.811.19. Individual Development Accounts. 
(a) Subject to available resources, individual development accounts (IDA) shall 
be established and administered by the Commission or by contract with a 
nonprofit, private, or public entity. 
(b) The account shall be administered to assist a recipient of temporary cash 
assistance participating in a work-related activity, including but not limited 
to the Subsidized Employment Program. 
(c) Use of funds in a participant's IDA is limited to expenses related to: 
(1) home ownership; 
(2) medical expenses; 
(3) education and training expenses such as tuition, books, and costs for 
qualifying examinations; 
(4) small business start-up; or 
(5) other types of asset accumulation. 
(d) The Commission reserves the right to place more restrictive limits for use 
of the individual development accounts through written guidelines.
(e) Deposits made in an IDA may be matched by an employer, a community group, or 
a financial institution. Match is not considered as income. 

sec.811.20. Employment Retention and Re-employment Services. 
(a) Monitoring of employment retention and reporting hours of employment are 
required for at least the length of time the participant receives temporary cash 
assistance. 
(b) Participant follow-up methods and timeframes shall be established through 
local policy and procedures, but shall occur no less often than monthly. 
(c) Employment retention and re-employment services may be made available to 
participants beyond denial of temporary cash assistance benefits. These services 
include but are not limited to the following: 
(1) assistance and support for the transition into employment through direct 
services or referrals to resources available in the area; 
(2) child care, if needed, as specified in rules at Chapter 809 of this title 
(relating to Childcare and Development); 
(3) work-related expenses, including those identified in sec.811.85 of this 
title (relating to Work-Related Expenses); 
(4) transportation necessary for a period of time to allow a participant who 
loses employment to engage in short-term, supported job search or related 
activities; 
(5) job readiness services and assisted intensive job search, as determined by 
local workforce development boards, to help a participant who loses employment 
find another job as quickly as possible; 
(6) job placement and job development services, as determined by local workforce 
development boards, to help a participant who loses employment find another job 
as quickly as possible; or 
(7) referrals to available education and training resources, as needed, to 
increase an employed participant's skills or to help the participant qualify for 
advancement and longer-term employment goals. 
(d) Employment retention and re-employment services may be provided by 
Commission staff, local workforce development boards, or contracted service 
providers. 
This agency hereby certifies that the adoption has been reviewed by legal 
counsel and found to be a valid exercise of the agency's legal authority.
Filed with the Office of the Secretary of State on March 26, 1998.
TRD-9804335
J. Randel (Jerry) Hill
General Counsel
Texas Workforce Commission
Effective date: April 15, 1998
Proposal publication date: January 2, 1998
For further information, please call: (512) 463-8812

SUBCHAPTER C. Job Search-Related Activities
40 TAC sec.sec.811.31-811.34
The new sections are adopted under the Texas Labor Code, Chapter 301, which 
authorizes the Commission to adopt rules necessary for the administration of the 
Commission and the workforce development division. The new sections are also 
adopted under the Texas Human Resources Code, Title 2, Subtitle C, Chapter 31, 
Financial Assistance and Service Programs, which governs employment services for 
recipients of financial assistance. 
This agency hereby certifies that the adoption has been reviewed by legal 
counsel and found to be a valid exercise of the agency's legal authority.
Filed with the Office of the Secretary of State on March 26, 1998.
TRD-9804336
J. Randel (Jerry) Hill
General Counsel
Texas Workforce Commission
Effective date: April 15, 1998
Proposal publication date: January 2, 1998
For further information, please call: (512) 463-8812

SUBCHAPTER D. Work-Based Programs
40 TAC sec.sec.811.41-811.45
The new sections are adopted under the Texas Labor Code, Chapter 301, which 
authorizes the Commission to adopt rules necessary for the administration of the 
Commission and the workforce development division. The new sections are also 
adopted under the Texas Human Resources Code, Title 2, Subtitle C, Chapter 31, 
Financial Assistance and Service Programs, which governs employment services for 
recipients of financial assistance. 

sec.811.42. Subsidized Employment. 
(a) Enrollment. 
(1) Participants who, after an objective assessment of their skills, are 
determined by Choices staff to have the basic skills and attitudes necessary to 
succeed in the workplace may be placed in subsidized employment positions. 
(2) Participants, age 18 and older, who are unemployed after completing an 
initial job readiness and job search period may be required to enter into a 
subsidized employment position based on available resources and the 
participant's skills, interests, and employability plan. 
(3) Other participants may volunteer for a subsidized employment position. 
(b) Duration of the Activity. Participants in a subsidized employment position 
are encouraged to work between 35 and 40 hours per week for no more than four 
full months. Overtime is allowed by mutual agreement between the participant and 
the employer. 
(c) Wages. 
(1) Wages shall be at least minimum wage. 
(2) Employers must provide the same wages and benefits to subsidized employees 
as for unsubsidized employees with similar skills, experience, and position. 
(3) If overtime is earned, the employer is responsible for all wages in excess 
of 40 hours per week. 
(4) Upon submission of a monthly voucher supported by weekly time and attendance 
documentation, employers will be subsidized a portion of wages paid, as 
determined by contract. The subsidy is derived from the participant's temporary 
cash assistance and food stamp benefits which are diverted to the Commission to 
be distributed to the employer. 
(d) Status of Enrollment at Denial of Benefits. If a participant's temporary 
cash assistance benefits are denied while enrolled in a subsidized employment 
position, the employment subsidy ends with the effective date of denial. 
Employers may decide whether or not to retain the participant in an unsubsidized 
employment position. 
(e) Status of Subsidized Employee. The subsidized employment participants are 
considered employees of the participating employer for purposes of state and 
federal labor laws. 

sec.811.44. Texans Work Program. 
(a) Description. The Texans Work Program is on-the-job training for Choices 
participants. 
(b) Participating Employers. Employers or employer alliances or consortia may 
participate in the program upon approval by the Commission or by the Local 
Workforce Development Boards. 
(c) Approval of the Employer's Training Program. An employer's training program 
must be approved by the Commission in collaboration with the Texas Skills 
Standards Board following written guidelines to be developed by the Commission. 
(d) Employer Responsibilities. Employers, other approved organizations as 
stipulated in subsection (b) of this section, or subcontracted training 
providers are responsible for the following: 
(1) designing the training curriculum and providing the training;
(2) providing one or more training positions for Choices participants; 
(3) contributing $300 per month, to the Commission, for each trainee for the 
duration of the training program; and 
(4) reporting the trainee's attendance and other necessary information as 
established in written guidelines by the Commission or the Local Workforce 
Development Boards. 
(e) Participants in the Texans Work Program. 
(1) Participants who are unemployed after completing job search activities may 
be required to participate in a Texans Work assignment. 
(2) Choices staff shall make arrangements with the employers to provide 
candidates for the training positions. Employers may conduct interviews or use 
other objective means to select appropriate trainees for the available 
positions. 
(3) Excessive, unexcused absences by a participant, as defined by the employer 
and based on the participant's employability plan, shall be subject to a pro-
rata reduction in the amount of the training stipend received under subsection 
(h) of this section. 
(f) Duration of the Placement. The length of a training course shall be in 
compliance with the Texas Labor Code, Subtitle B, Title 4, Chapter 308. 
(g) Exception to Duration. The workforce development division may approve an 
exception to subsection (f) of this section. The workforce development division 
will consider the specific training needs in granting an exception. 
(h) Training Stipend. Each participant making satisfactory progress in the 
training program as set forth in the course curriculum shall receive a monthly 
training stipend of $600 in addition to the temporary cash assistance and other 
financial assistance authorized by DHS staff. 

sec.811.45. Self-Employment Assistance. 
(a) Subject to available resources, the Commission shall, or Local Workforce 
Development Boards may, provide for self-employment assistance services for 
appropriate Choices participants to enable them to begin or continue a small 
business. For the purpose of this subsection, a small business has five or fewer 
employees. 
(b) Self-employment assistance may include a microenterprise development 
program, centrally administered by the Commission. The Commission may contract 
with credit organizations to provide individual loans and business counseling 
services to eligible participants for authorized services. These loans must be 
repaid. 
(c) Participants shall be selected for self-employment assistance through an 
objective assessment process that will identify participants that are likely to 
succeed as a business owner. 
(d) Self-employment assistance services available to all participants in the 
program shall include, but not be limited to: 
(1) entrepreneurial training, a required activity for each participant in the 
program; 
(2) business counseling; 
(3) financial assistance; or 
(4) technical assistance. 
This agency hereby certifies that the adoption has been reviewed by legal 
counsel and found to be a valid exercise of the agency's legal authority.
Filed with the Office of the Secretary of State on March 26, 1998.
TRD-9804337
J. Randel (Jerry) Hill
General Counsel
Texas Workforce Commission
Effective date: April 15, 1998
Proposal publication date: January 2, 1998
For further information, please call: (512) 463-8812

SUBCHAPTER E. Educational and Other Training Activities
40 TAC sec.sec.811.61-811.65
The new sections are adopted under the Texas Labor Code, Chapter 301, which 
authorizes the Commission to adopt rules necessary for the administration of the 
Commission and the workforce development division. The new sections are also 
adopted under the Texas Human Resources Code, Title 2, Subtitle C, Chapter 31, 
Financial Assistance and Service Programs, which governs employment services for 
recipients of financial assistance. 

sec.811.62. Educational Activities. 
Choices staff may authorize, arrange, or refer participants for the following 
educational activities if deemed necessary for finding employment:
(1) secondary school leading to a high school diploma; 
(2) a course of study leading to a certificate of high school equivalency; 
(3) basic skills and literacy; 
(4) English proficiency; or 
(5) post-secondary vocational education, for up to 12 months, that prepares 
participants for employment in current and emerging occupations that do not 
require a baccalaureate or advanced degree. On an individual basis, completion 
of self-initiated education currently in progress at the associates, 
baccalaureate, or advanced degree level may be approved within the twelve-month 
time frame. 
This agency hereby certifies that the adoption has been reviewed by legal 
counsel and found to be a valid exercise of the agency's legal authority.
Filed with the Office of the Secretary of State on March 26, 1998.
TRD-9804338
J. Randel (Jerry) Hill
General Counsel
Texas Workforce Commission
Effective date: April 15, 1998
Proposal publication date: January 2, 1998
For further information, please call: (512) 463-8812

SUBCHAPTER F. Support Services
40 TAC sec.sec.811.81-811.87
The new sections are adopted under the Texas Labor Code, Chapter 301, which 
authorizes the Commission to adopt rules necessary for the administration of the 
Commission and the workforce development division. The new sections are also 
adopted under the Texas Human Resources Code, Title 2, Subtitle C, Chapter 31, 
Financial Assistance and Service Programs, which governs employment services for 
recipients of financial assistance. 

sec.811.87. GED Testing Payments. 
The cost of GED testing and issuance of the certificate shall be paid by the 
Commission, Local Workforce Development Board, or the board's services provider 
through direct payments to the GED test centers and the Texas Education Agency 
for participants referred for testing by Choices staff. 
This agency hereby certifies that the adoption has been reviewed by legal 
counsel and found to be a valid exercise of the agency's legal authority.
Filed with the Office of the Secretary of State on March 26, 1998.
TRD-9804339
J. Randel (Jerry) Hill
General Counsel
Texas Workforce Commission
Effective date: April 15, 1998
Proposal publication date: January 2, 1998
For further information, please call: (512) 463-8812

SUBCHAPTER G. Appeals
40 TAC sec.811.101
The new section is adopted under the Texas Labor Code, Chapter 301, which 
authorizes the Commission to adopt rules necessary for the administration of the 
Commission and the workforce development division. The new section is also 
adopted under the Texas Human Resources Code, Title 2, Subtitle C, Chapter 31, 
Financial Assistance and Service Programs, which governs employment services for 
recipients of financial assistance. 

sec.811.101. Fair Hearings or Appeals.
(a) Applicants and recipients of temporary cash assistance may appeal adverse 
action taken on their application for benefits or amount of benefits to DHS in 
accordance with DHS' rules located at sec.3.2406 of this title (relating to 
Right to Appeal). 
(b) Persons who are dissatisfied with decisions of Choices staff relating to 
Choices activities or support services may file an appeal of the decision. The 
request must be submitted in writing to the Appeals Department, Texas Workforce 
Commission, 101 East 15th Street, Room 410; Austin, Texas 78778-0001, within 30 
calendar days after being notified in writing of the decision. Choices staff 
shall inform participants of their right to appeal a decision of Choices staff 
related to employment services or support services and the procedures for 
requesting a fair hearing. 
This agency hereby certifies that the adoption has been reviewed by legal 
counsel and found to be a valid exercise of the agency's legal authority. 
Filed with the Office of the Secretary of State on March 26, 1998.
TRD-9804340
J. Randel (Jerry) Hill
General Counsel
Texas Workforce Commission
Effective date: April 15, 1998
Proposal publication date: January 2, 1998
For further information, please call: (512) 463-8812