<num value="40">TITLE 40</num><heading>SOCIAL SERVICES AND ASSISTANCE</heading><part identifier="/us/state/tx/tac/t40/p2"><num value="2">PART 2</num><heading>DEPARTMENT OF ASSISTIVE AND REHABILITATIVE SERVICES</heading><chapter identifier="/us/state/tx/tac/t40/p2/c101"><num value="101">CHAPTER 101</num><heading>ADMINISTRATIVE RULES AND PROCEDURES</heading><subchapter identifier="/us/state/tx/tac/t40/p2/c101/scC"><num value="C">SUBCHAPTER C</num><heading>COUNCILS, BOARD, AND COMMITTEES</heading><section identifier="/us/state/tx/tac/t40/p2/c101/scC/s101.301"><num value="101.301">§101.301</num><heading>Purpose</heading><content>The Rehabilitation Council of Texas (RCT) advises the DARS Division for Rehabilitation Services and the DARS Division for Blind Services in performing their responsibilities to provide vocational rehabilitation services for people with disabilities.</content><note type="source"><p>Source Note: The provisions of this §101.301 adopted to be effective March 12, 2012, 37 TexReg 1706.</p></note></section><section identifier="/us/state/tx/tac/t40/p2/c101/scC/s101.303"><num value="101.303">§101.303</num><heading>Legal Authority</heading><content>The Rehabilitation Council of Texas (RCT) is created pursuant to the Rehabilitation Act of 1973, as amended, 29 United States Code §725; and the Human Resource Code, §111.016. Federal law requires DARS to establish the RCT in order to receive federal financial assistance. Failure to establish the RCT would prohibit DARS from receiving federal financial assistance. In accordance with Human Resources Code, §111.0161, the RCT reports to and advises the executive commissioner or designee on the RCT's activities and the results of the RTC's work. In performing its advisory functions, the RCT works with the DARS commissioner, the DARS staff, and the executive commissioner or designee.</content><note type="source"><p>Source Note: The provisions of this §101.303 adopted to be effective March 12, 2012, 37 TexReg 1706.</p></note></section><section identifier="/us/state/tx/tac/t40/p2/c101/scC/s101.305"><num value="101.305">§101.305</num><heading>Definitions</heading><content>The following words and terms, when used in this division, have the following meanings, unless the context clearly indicates otherwise:(1) DARS--The Texas Department of Assistive and Rehabilitative Services.(2) RCT--The Rehabilitation Council of Texas.(3) Divisions--The DARS Division for Rehabilitation Services (DRS) and the DARS Division for Blind Services (DBS).</content><note type="source"><p>Source Note: The provisions of this §101.305 adopted to be effective March 12, 2012, 37 TexReg 1706.</p></note></section><section identifier="/us/state/tx/tac/t40/p2/c101/scC/s101.307"><num value="101.307">§101.307</num><heading>Tasks</heading><content>Tasks. The council shall:(1) review, analyze, and advise the divisions about their performance of responsibilities, particularly those relating to:(A) eligibility determination (including order of selection);(B) the extent, scope, and effectiveness of services provided; and(C) functions performed by the divisions that potentially affect the ability of people with disabilities to achieve rehabilitation goals and objectives;(2) advise the divisions and, at its discretion, helps prepare the State Plan for Vocational Rehabilitation Services; amendments to the plan; and applications, reports, needs assessments, and evaluations required;(3) to the extent feasible, review and analyze the effectiveness of, and consumer satisfaction with:(A) the functions performed by state agencies and other public and private entities responsible for performing functions for people with disabilities; and(B) vocational rehabilitation services:(i) provided, or paid for from funds made available, under 29 United States Code §725, or through other public or private sources; and(ii) provided by state agencies and other public and private entities responsible for providing vocational rehabilitation services to people with disabilities; and(C) the employment outcomes achieved by people who receive services under 29 United States Code §725, including the availability of health and other employment benefits in connection with those employment outcomes;(4) coordinate with other councils in the state, including the State Independent Living Council established under 29 United States Code §796d; the advisory panel established under §612(a)(20) of the Individuals with Disabilities Education Act 20 U.S.C. §1412(a)(21); the State Council on Developmental Disabilities described in 42 United States Code §15025; the State Mental Health Planning Council established under 42 United States Code §300x-3(a); and the state workforce investment board;(5) advise the divisions and coordinates working relationships between the divisions and the State Independent Living Council and centers for independent living within the state; and(6) perform other comparable functions consistent with the Rehabilitation Act of 1973, as amended, that the RTC determines to be appropriate.</content><note type="source"><p>Source Note: The provisions of this §101.307 adopted to be effective March 12, 2012, 37 TexReg 1706.</p></note></section><section identifier="/us/state/tx/tac/t40/p2/c101/scC/s101.309"><num value="101.309">§101.309</num><heading>Reports</heading><content>The Rehabilitation Council of Texas (RCT) shall:(1) prepare and submit an annual report to the governor or appropriate state entity and the commissioner on the status of vocational rehabilitation programs operated within the state, and make the report available to the public; and(2) submit to the commissioner of the Rehabilitation Services Administration, United States Department of Education, periodic reports that the commissioner may reasonably request, and keep records that the commissioner finds necessary to verify those reports.</content><note type="source"><p>Source Note: The provisions of this §101.309 adopted to be effective March 12, 2012, 37 TexReg 1706.</p></note></section><section identifier="/us/state/tx/tac/t40/p2/c101/scC/s101.311"><num value="101.311">§101.311</num><heading>Funding</heading><content>The Rehabilitation Council of Texas (RCT) is funded primarily by federal funds, and its existence is required in order for DARS to receive and expend federal funds.</content><note type="source"><p>Source Note: The provisions of this §101.311 adopted to be effective March 12, 2012, 37 TexReg 1706.</p></note></section><section identifier="/us/state/tx/tac/t40/p2/c101/scC/s101.401"><num value="101.401">§101.401</num><heading>Purpose</heading><content>The State Independent Living Council (SILC) is created and established as an independent council, as required by the Rehabilitation Act of 1973, as amended, and carries out its responsibilities as set forth in the federal law and regulations under which it is established.</content><note type="source"><p>Source Note: The provisions of this §101.401 adopted to be effective March 12, 2012, 37 TexReg 1706.</p></note></section><section identifier="/us/state/tx/tac/t40/p2/c101/scC/s101.403"><num value="101.403">§101.403</num><heading>Legal Authority</heading><content>The State Independent Living Council (SILC) is authorized and required under the Rehabilitation Act of 1973, as amended, 29 United States Code §796d; and 34 C.F.R. §364.21. Failure to establish the SILC would prohibit DARS from receiving federal financial assistance.</content><note type="source"><p>Source Note: The provisions of this §101.403 adopted to be effective March 12, 2012, 37 TexReg 1706.</p></note></section><section identifier="/us/state/tx/tac/t40/p2/c101/scC/s101.405"><num value="101.405">§101.405</num><heading>Definitions</heading><content>The following words and terms, when used in this division, have the following meanings unless the context clearly indicates otherwise:(1) DARS--The Texas Department of Assistive and Rehabilitative Services.(2) SILC--State Independent Living Council.</content><note type="source"><p>Source Note: The provisions of this §101.405 adopted to be effective March 12, 2012, 37 TexReg 1706.</p></note></section><section identifier="/us/state/tx/tac/t40/p2/c101/scC/s101.407"><num value="101.407">§101.407</num><heading>Tasks</heading><content>The State Independent Living Council (SILC) shall:(1) in conjunction with DARS, jointly develops and submits the State Plan for Independent Living Services as required by federal law;(2) monitors, reviews, and evaluates the implementation of the state plan;(3) coordinates activities with the Rehabilitation Council of Texas set out in §101.301 of this subchapter (relating to Purpose) and other councils that address the needs of specific disability populations and issues under other federal law;(4) ensures that all regularly scheduled meetings of the SILC are open to the public and sufficient advance notice is provided;(5) submits to the federal government periodic reports that the federal government may reasonably request, and keeps records that the federal government finds necessary to verify those reports; and(6) reports to the DARS Council at least annually on the SILC's actions and the results of the SILC's work.</content><note type="source"><p>Source Note: The provisions of this §101.407 adopted to be effective March 12, 2012, 37 TexReg 1706.</p></note></section><section identifier="/us/state/tx/tac/t40/p2/c101/scC/s101.409"><num value="101.409">§101.409</num><heading>Funding</heading><content>The State Independent Living Council (SILC) is funded primarily by federal funds, and its existence is required in order for DARS to receive and expend federal funds.</content><note type="source"><p>Source Note: The provisions of this §101.409 adopted to be effective March 12, 2012, 37 TexReg 1706.</p></note></section><section identifier="/us/state/tx/tac/t40/p2/c101/scC/s101.701"><num value="101.701">§101.701</num><heading>Purpose</heading><content>The purpose of the Elected Committee of Managers (ECM) is to comply with the Randolph-Sheppard Act, which requires the agency, as the state licensing agency in Texas under the Act, to provide for the biennial election of a State Committee of Blind Vendors which, to the extent possible, is fully representative of all blind vendors in the state.</content><note type="source"><p>Source Note: The provisions of this §101.701 adopted to be effective March 12, 2012, 37 TexReg 1706.</p></note></section><section identifier="/us/state/tx/tac/t40/p2/c101/scC/s101.703"><num value="101.703">§101.703</num><heading>Legal Authority</heading><content>The Elected Committee of Managers (ECM) is created pursuant to 20 U.S.C.A. §107b(1) of Chapter 6A of Title 20, known as the Randolph-Sheppard Act.</content><note type="source"><p>Source Note: The provisions of this §101.703 adopted to be effective March 12, 2012, 37 TexReg 1706.</p></note></section><section identifier="/us/state/tx/tac/t40/p2/c101/scC/s101.705"><num value="101.705">§101.705</num><heading>Definitions</heading><content>The following words and terms, when used in this division, have the following meanings unless the context clearly indicates otherwise:(1) DARS--The Texas Department of Assistive and Rehabilitative Services.(2) DBS--Division for Blind Services.(3) BET--Business Enterprises of Texas.(4) ECM--Elected Committee of Managers.</content><note type="source"><p>Source Note: The provisions of this §101.705 adopted to be effective March 12, 2012, 37 TexReg 1706.</p></note></section><section identifier="/us/state/tx/tac/t40/p2/c101/scC/s101.707"><num value="101.707">§101.707</num><heading>Substantive Rules</heading><content>DARS rules relating to the duties, authority, and responsibilities of the BET Elected Committee of Managers are set forth in Chapter 106, Subchapter G of this title (relating to Business Enterprises of Texas).</content><note type="source"><p>Source Note: The provisions of this §101.707 adopted to be effective March 12, 2012, 37 TexReg 1706.</p></note></section></subchapter></chapter></part><part identifier="/us/state/tx/tac/t40/p5"><num value="5">PART 5</num><heading>TEXAS VETERANS LAND BOARD</heading><chapter identifier="/us/state/tx/tac/t40/p5/c175"><num value="175">CHAPTER 175</num><heading>GENERAL RULES OF THE VETERANS LAND BOARD</heading><subchapter identifier="/us/state/tx/tac/t40/p5/c175/scA"><num value="A">SUBCHAPTER A</num><heading>GENERAL RULES OF CONTRACT FOR DEED AND FINANCING FOR LAND</heading><section identifier="/us/state/tx/tac/t40/p5/c175/scA/s175.1"><num value="175.1">§175.1</num><heading>Sale of Bonds</heading><content>Procedure for issuance and sale of bonds will be set by resolution of the board. The chairman of the board and the executive secretary of the board are authorized to work with the bond counsel selected by the board in ascertaining the elements of security permissible under the law, the maturities, option provisions, paying agency provisions, and any related elements, pertaining to the sale of bonds that are acceptable in the market to the end that such elements may be incorporated into the bonds and resolution. The chairman, executive secretary and bond counsel will prepare a draft of the official notice of sale of bonds for the approval of the Attorney General of Texas and subsequently by the board. After the notice of sale is approved, it will be published, either in full or abbreviated form, in the manner prescribed by law, and the board has the right to reject any and all bids received.</content><note type="source"><p>Source Note: The provisions of this §175.1 adopted to be effective January 1, 1976; amended to be effective July 28, 2025, 50 TexReg 4969.</p></note></section><section identifier="/us/state/tx/tac/t40/p5/c175/scA/s175.2"><num value="175.2">§175.2</num><heading>Loan Eligibility Requirements</heading><content>(a) The following words and terms, when used in this chapter, shall have the following meanings, unless the context clearly indicates otherwise:(1) Bona fide resident--An individual living within the State of Texas with the intention to remain.(2) Missing/Missing in Action--To have an official designation of "missing status" as provided by 37 USC §551. (3) Surviving spouse--A person who satisfies the federal definition of "surviving spouse" contained in by 38 USC §101(3), as modified by the special provision in 38 USC §103, or any successor statutes, as amended from time to time. (4) USDVA/VA--The United States Department of Veterans Affairs or any successor thereto.(5) Veteran--A person who satisfies the requirements of subsection (c)(1) of this section.(b) The board shall be the final authority in defining and interpreting all eligibility requirements, and whether an applicant has actually satisfied those requirements. The board may by resolution prescribe the procedures and forms to be used by applicants to evidence eligibility, and may appoint a committee of qualified individuals to consider the evidence of eligibility and make recommendations to the board. (c) To be eligible to participate in the program, an applicant must satisfy one of the following:(1) be a person who:(A) is at least 18 years of age;(B) is a bona fide resident of Texas at the time of application for a loan. Military personnel on active duty, who otherwise meet the requirements of this subsection are eligible even though stationed outside of Texas at the time of application;(C) satisfied one of the following service requirements after September 16, 1940, and:(i) has served not less than 90 cumulative days of active duty or active duty training time in the Army, Navy, Air Force, Coast Guard, Marine Corps, United State Space Force, United States Public Health Service, or a recognized reserve component of one of the listed branches of service, unless discharged earlier because of a service-connected cause;(ii) has completed all initial active duty training required as a condition of service in any National Guard or reserve component of one of the branches of service listed in clause (i) of this subparagraph;(iii) has at least 20 years of active or reserve military service as computed when determining the applicant's eligibility to receive retired pay under applicable federal law; or(iv) served in the Armed Forces of the Republic of Vietnam between February 28, 1961 and May 7, 1975.(D) satisfies one of the following:(i) was a bona fide resident of Texas at the time of enlistment, induction, commissioning, appointment or drafting;(ii) is a legal resident of Texas on the date of application; or(iii) is serving on active duty, at the time of application, assigned to a military base or facility in Texas, and has officially designated Texas as the applicants home of record.(2) is the surviving spouse of a veteran who died:(A) as a result of a service-connected cause, as determined by the board or certified by the USDVA, or who is identified as missing in action, if the spouse satisfies the requirements of paragraph (1)(A) and (B) of this subsection, and the veteran satisfied the requirements of paragraph (1)(C) and (D) of this subsection and either paragraph (1)(E)(i) of this subsection or the veteran was a legal resident of Texas at the time of his or her death; or(B) after filing an application and contract of sale with the board, but before the transaction was completed, if he or she meets all other qualification requirements of the board. (C) For purposes of this subsection relating to surviving spouses, an individual assigned to a military installation in Texas, who is killed in Texas as the result of a terrorist attack as defined by the board, will be considered to be a Texas resident as of the day of death.(d) A person may only have one land loan at a time as a veteran for which the person applied. However, once that land loan is paid in full, he or she may apply for another land loan as a veteran. The foregoing notwithstanding, an individual who is currently participating in the land program as a veteran may also, as a non-veteran: (1) take an assignment of a contract or contracts;(2) assume a land mortgage loan or loans; or(3) bid on a forfeited or foreclosed tract or tracts.(e) The applicant must sign applications and contracts. An attorney in fact may not sign these documents for an applicant, except under limited conditions approved by the board.(f) No application shall be approved to purchase land under the program:(1) which provides for or recognizes a second or subordinate lien as a part of the original purchase price for any tract except as provided for in §175.54(b)(1) of this chapter (Protection of Security Interests); (2) where there is evidence that the benefits derived from the use of the land will not pass to the applicant; or(3) where there exists any other good and sufficient reason to refuse approval, as determined by the chairman of the board. (g) If both spouses are individually eligible to participate in the program, nothing herein shall be construed to prohibit them from applying for a loan to jointly purchase the same tract of land. The board may make a loan for the purchase of the same tract of land by two veterans who are spouses, but only if both spouses together satisfy the loan qualification requirements of the program. The total amount of this loan shall not exceed the maximum amount allowable for this type of loan.(h) Any requirement of this section, or of any section within this chapter, which is not otherwise required by the constitution or statutes of this state, may be waived on a case-by-case basis by the board. Any waiver request must be in writing and must describe the circumstances surrounding the request, including all of the reasons why the waiver is requested.(i) For purposes of this section, evidence of service in the Armed Forces of the Republic of Vietnam consists of:(1) documents from said Armed Forces of the Republic of Vietnam;(2) documents from a federal office, such as the Army, Navy, Air Force, Marine Corps, or the Bureau of Immigration and Customs Enforcement;(3) documents from the People's Republic of Vietnam; or(4) other proof of service deemed appropriate by the board or the board's designee.(j) A person who has been discharged from the branch of the service in which the person served or from the reserve or National Guard with:(1) a discharge type of honorable, general, or medical is eligible for a loan under the program and participation in the board's other loan programs. (2) a discharge type of dishonorable is not eligible for a loan under the program and participation in the board's other loan programs.(3) any other discharge type, including but not limited to, bad conduct, other than honorable, entry-level separation, or separation for convenience of the government is not eligible for a loan under the program or participation in the board's other loan programs unless the person provide a certificate of eligibility or similar documentation from the USVA demonstrating the person qualifies for a VA loan based on service history and duty status.</content><note type="source"><p>Source Note: The provisions of this §175.2 adopted to be effective March 11, 1986, 11 TexReg 1005; amended to be effective November 10, 1986, 11 TexReg 4487; amended to be effective June 11, 1990, 15 TexReg 2917; amended to be effective December 10, 1993, 18 TexReg 8797; amended to be effective August 24, 1999, 24 TexReg 6516; amended to be effective April 15, 2001, 26 TexReg 2748; amended to be effective November 18, 2001, 26 TexReg 9221; amended to be effective June 23, 2002, 27 TexReg 5248; amended to be effective June 9, 2003, 28 TexReg 4434; amended to be effective November 23, 2003, 28 TexReg 10253; amended to be effective December 21, 2010, 35 TexReg 11390; amended to be effective February 24, 2014, 39 TexReg 1174; amended to be effective November 21, 2022, 47 TexReg 7746; amended to be effective August 25, 2024, 49 TexReg 6466; amended to be effective July 28, 2025, 50 TexReg 4969.</p></note></section><section identifier="/us/state/tx/tac/t40/p5/c175/scA/s175.3"><num value="175.3">§175.3</num><heading>Land Selection</heading><content>(a) Land selected by a veteran for purchase or financing through the program must:(1) be situated entirely in Texas;(2) contain at least one acre (excluding, as defined by the board, inundated or submerged land, or otherwise unusable land);(3) have insurable title under conditions acceptable to the board;(4) if more than one tract of land is selected the tracts must be contiguous as defined by the board; or, if not contiguous, then one tract must meet the minimum acreage requirement, and the use, location, and value of the tracts would permit the board, in its sole discretion, to consider the combination of the tracts as one tract; and(5) have direct access to a public road. If the tract does not directly abut a public road, a perpetual access easement appurtenant must be conveyed to the board, or other board approved access must be provided. This easement must meet the county width requirement for publicly maintained roads and, in any event, must be at least 60 feet wide. The easement must be conveyed to the board by general warranty deed or dedicated to the public or subdivision owners. If the easement is conveyed to the board by deed, it must be described by metes and bounds. This description must contain specific tie calls to both the tract and a public road. If the easement is dedicated, the deed to the board must refer to the recording information of the subdivision plat or other dedication instrument. If the board finances the transaction the tract must have similar easement rights. Easements and roads must be usable by standard automobiles during inclement weather.(b) The board will not purchase or finance a tract of land that was wholly owned by the veteran or his spouse, separately or jointly, within 3 years of the date of application.(c) If the veteran or his or her spouse owns an undivided interest in the land that he or she has selected, the board may approve the application after the tract has been partitioned and a copy of the recorded partition deed is furnished to the board. The board may purchase only that interest not owned by the applicant or the applicant's spouse. If the land is not partitioned because the applicant is purchasing the remaining undivided interest not currently owned by the applicant or the applicant's spouse, the board may nonetheless approve the purchase or financing of the tract. In such cases, the purchase price or loan amount will be limited to the value of the interest not previously owned by the applicant or the applicant's spouse. Whether or not the land is partitioned however, title to the entire tract must be conveyed to the board, or the board must be in a first lien position as to the entire tract.(d) Except as provided in subsection (c) of this section, the board will not purchase or finance land in which the seller or any prior owner is to retain any interest, other than a mineral interest or an access or utility easement.(e) The board will not approve any application that will result in a refinancing of a prior purchase by a veteran or his or her spouse.(f) A tract must be free and clear of all liens when the board takes title or perfects its lien.(g) The board reserves the right to refuse to purchase or finance any tract for any reason.</content><note type="source"><p>Source Note: The provisions of this §175.3 adopted to be effective March 11, 1986, 11 TexReg 1005; amended to be effective November 10, 1986, 11 TexReg 4487; amended to be effective January 8, 2002, 27 TexReg 286; amended to be effective October 21, 2003, 28 TexReg 9088.</p></note></section><section identifier="/us/state/tx/tac/t40/p5/c175/scA/s175.4"><num value="175.4">§175.4</num><heading>Land Description</heading><content>(a) Land selected to be purchased by the board must be described by a legally sufficient metes and bounds description. The property description must:(1) contain a general description of the land, specifying the acreage contained, the original survey(s) or grant(s) with abstract number(s), survey number(s) and block designation, if applicable, and the county in which the tract is located. If the tract is divided by a county line, the appropriate abstract numbers and acreage on each side of the county line will be shown. The general description shall also contain the deed reference to the parent tract including grantor, grantee, date of instrument, and volume and page of recording. Additional references to other instruments in the chain of title may be referred to if appropriate;(2) contain a specific description of the land, defining each side of the tract by course and distance or appropriate and complete curve data, identifying and describing monuments at each corner, and further identifying the land by calls for other natural and artificial objects on and along the boundaries and by calls for and reference to adjoining properties where appropriate;(3) be tied to a corner of an original grant or survey if such corner is locatable and if the tie is not impractical to obtain. If it is impossible or impractical to tie to a corner of an original grant or survey the tract should tie to a locatable corner of the parent tract or any of the adjoinders; and(4) include a description, either by metes and bounds or center line, of the access easement from the tract to an existing public road of all tracts which do not abut a public road.(b) If the tract selected is in a subdivision, a lot and block description of the tract may be substituted for the metes and bounds description. If a lot and block description is to be used, the board must be furnished a copy of the recorded subdivision plat. This plat must show the recording information and the required signatures of the governmental entity authorized to accept such subdivision plat. Easements as necessary for access to a public road from all tracts must be clearly shown on the subdivision plat together with appropriate language dedicating such easement to the public or to the owners of tracts in the subdivision. All the data required in subsection (a) of this section should be shown on the face of the plat, including courses and distances for all lot lines and areas for each lot. All plats accepted subsequent to the adoption of this section shall identify the size and type of monument set at each corner of every lot. If a lot is part of a subdivision already of record where monumentation is not shown, a survey plat shall be furnished indicating monuments set or found at all corners of the tract together with sufficient ties to locate the lot within the subdivision.(c) All metes and bounds descriptions and survey plats shall bear the seal and signature of the surveyor preparing the same. Any field notes or survey plat prepared for and used in any board transaction includes a license from the surveyor to the board and the veteran purchaser to copy and use the field notes in that transaction and in any future transactions involving the surveyed property.(d) Metes and bounds descriptions must be prepared from a survey of the property made on the ground. The survey should be made in such manner to be generally acceptable to title companies in the State of Texas for the purpose of deleting the survey exception clause.(e) Each corner of the tract of land shall be marked by concrete or metal monuments or other durable monuments generally used in the area. A description of each monument set or found and its location, with witnesses as available, shall be incorporated into the metes and bounds description of the property.(f) When a roadway or easement crosses a tract, it shall be described sufficiently to enable its location throughout the tract and its area to be determined.(g) Property descriptions and subdivision plats will be examined by the board for acreage, closure, and sufficiency. The board's determination of these items will control.(h) The surveyor should be instructed to do a proper boundary survey of the land to be conveyed according to the record boundaries of the tracts involved. Any encroachments by existing perimeter fences into the subject tract or into adjacent tracts should be shown together with the area of any lands lying between the record boundaries and the existing occupation. Any occupation on the ground not conforming to the record boundaries should be shown on a plat of survey and fully explained in an accompanying surveyor's report.(i) The chairman may waive any of the foregoing requirements and accept a survey deemed sufficient by the title company to permit deletion of the survey exception clause.</content><note type="source"><p>Source Note: The provisions of this §175.4 adopted to be effective May 7, 1991, 16 TexReg 2305; amended to be effective June 9, 2003, 28 TexReg 4434; amended to be effective December 21, 2010, 35 TexReg 11390; amended to be effective July 28, 2025, 50 TexReg 4969.</p></note></section><section identifier="/us/state/tx/tac/t40/p5/c175/scA/s175.5"><num value="175.5">§175.5</num><heading>Appraisal of Land</heading><content>(a) Before property is purchased it shall be appraised for the board by an appraiser approved by the board. The exclusive purpose of the appraisal is to assist the board in determining that its investment will be sufficiently secured. Any improvement existing on the land may be considered by the board in making the appraisal. If improvements are considered in determining the value of the property, the board may in accordance with §175.6(d) of this chapter (relating to Commitment by the Board) require the purchase of an insurance policy covering fire and hazard losses.(b) If the appraisal amount is less than the purchase price agreed upon, the veteran may cancel the transaction. The veteran must provide a written cancellation notice to the seller and the board and request that the board return the down payment and the unused portion of the fee deposits.(c) Upon the request of the veteran, the appraiser shall meet with the veteran for a physical inspection of the land to be purchased. Except as provided in subsection (d) of this section, the board may not require that veterans accompany the appraiser. The board may, by resolution, establish a procedure for veterans to certify they have personally inspected the tracts they are purchasing. This resolution may also provide a procedure for granting a request to permit the veteran's personal representative to inspect the tract for the veteran.(d) If the veteran believes that the appraisal contains a mistake, the veteran may request that the land be appraised again. The board shall have the land re-appraised if all the following requirements are satisfied:(1) The request for a re-appraisal must be in writing and describe any mistake the veteran believes was made.(2) The written request should be accompanied by any documentation supporting the allegation that a mistake was made.(3) The re-appraisal fee must be remitted to the board.(4) If the board elects to perform another physical inspection of the tract in connection with the re-appraisal, the board may require that the veteran personally accompany the board's representative on that inspection.(e) The chairman, or executive secretary, of the board may waive any of the requirements of subsection (d) of this section. The board shall be the sole and final judge regarding any matter associated with the appraisal of the land to be purchased, and the amount of the loan offered to any veteran.</content><note type="source"><p>Source Note: The provisions of this §175.5 adopted to be effective August 12, 2001, 26 TexReg 5838; amended to be effective June 9, 2003, 28 TexReg 4435; amended to be effective July 28, 2025, 50 TexReg 4969.</p></note></section><section identifier="/us/state/tx/tac/t40/p5/c175/scA/s175.6"><num value="175.6">§175.6</num><heading>Commitment by the Board</heading><content>(a) After reviewing the appraisal, and any other relevant information, the board shall issue a commitment showing the amount it will invest in the land selected. The veteran and seller shall be notified of the commitment amount in writing. The board shall not invest more than the least of the following options:(1) 95% of the appraised value of the land;(2) 95% of the final agreed purchase price; or(3) the maximum loan amount as set by the board by resolution from time to time, as prescribed by law.(b) Except for certain forfeited land sales, the board requires the veteran to have at least a five percent (5.0%) equity investment in the land. The equity investment is the difference between the commitment amount and the purchase price. The amount of equity required shall be the combination of the initial payment and the down payment(s), as applicable.(c) If the commitment amount is less than 95% of the purchase price, one of the following should be done:(1) The veteran may pay to the board the difference between the purchase price and the commitment amount;(2) The parties may amend the purchase price, with the veteran paying to the board the difference between the amended price and the commitment amount;(3) The parties may amend the contract to increase the acreage to make up for the difference in value compared to price; or (4) The veteran may cancel the loan application and purchase contract.(d) In certain cases, special circumstances may require special loan conditions in the commitment terms. The following are two examples, but others may apply:(1) If improvements on the land are considered by the board in determining the commitment amount, their value may be amortized over their lifetime as determined by the appraiser; and(2) If the land is situated in an underground irrigation water area, the installments may be accelerated for the purpose of protecting the board's investment against the risk of any diminishment of the water reserve.(e) Notwithstanding anything to the contrary in these rules, the chairman may establish procedures so that any required initial payment, down payment, or difference money may be paid to the closing agent at closing.(f) If for any reason a veteran's application is not processed to completion, the down payment will be refunded to the veteran, together with the unused portion of any fees that have been paid by the applicant.(g) Each application will be considered as a wholly separate transaction, independent of any other agreement, transaction or contingency. The board will not consider an application which contains a provision making it contingent upon the success or completion of another agreement or transaction, except as provided for in §175.54(b)(1) of this chapter (relating to Protection of Security Interests.)</content><note type="source"><p>Source Note: The provisions of this §175.6 adopted to be effective March 11, 1986, 11 TexReg 1005; amended to be effective May 14, 2002, 27 TexReg 4173; amended to be effective November 23, 2003, 28 TexReg 10253; amended to be effective July 28, 2025, 50 TexReg 4969.</p></note></section><section identifier="/us/state/tx/tac/t40/p5/c175/scA/s175.7"><num value="175.7">§175.7</num><heading>Title Examination</heading><content>(a) The board will designate an attorney or title company in the county where the land is located to serve as its closing representative. The veteran or seller may submit the name of a closing representative for the board's consideration. The representative will be paid $25 for closing the transaction. The board will also pay up to $30 to cover recording costs. The board will not pay a representative for preparing and filing application papers, drafting instruments, or for rendering services of a similar nature. If an attorney provides such services the attorney shall be paid directly by the veteran or seller.(b) The seller shall obtain a commitment for title insurance and to provide copies of it to the closing representative and the board.(c) The seller shall also provide the following, as applicable:(1) releases of any outstanding liens;(2) proof that all taxes have been paid through the last taxable year;(3) evidence that taxes have been prorated as of the date of sale, or that satisfactory arrangements have been made with the veteran regarding taxes, including rollback taxes;(4) releases of any mineral leases that have expired, or an affidavit of nonproduction and nonpayment of annual delay rentals;(5) any instruments in the chain of title necessary for the board to make a proper showing of ownership to a lessee under an existing mineral lease; and(6) fees for recording all instruments other than the deed from the seller to the board and the contract of sale and purchase between the board and the veteran.(d) The veteran shall be required:(1) to furnish a fire and hazard insurance policy if there are any improvements on the land which have been considered by the board in determining the amount to be invested, together with a receipt showing the first year's premium has been paid; and(2) to execute an affidavit showing that the veteran has taken possession of the land, has inspected the land, and has found no one in adverse possession and that the taxes have been prorated to the veteran's satisfaction.(e) The staff of the board will prepare a deed sufficient to convey title to the land from the seller to the board. If the seller wishes to have a deed prepared and furnishes it to the board, this deed must:(1) name the Veterans Land Board of the State of Texas as grantee;(2) state the full and true consideration to be paid;(3) specify all reservations of oil, gas, and other minerals affecting the property;(4) specify all easements, leases, or other exceptions which might affect the property; and(5) contain a general warranty; special warranty deeds are not acceptable, except where specifically authorized by the chairman of the board, chief clerk, executive secretary, or assistant executive secretary.(f) The staff of the board will prepare the deed upon submission of a title commitment and other closing papers. The seller may at his or her sole expense arrange to have a proposed deed furnished to the board for approval. The board's use of such a deed will in no way reduce any fees charged by the board for title examination and deed preparation.(g) When the title insurance commitment has been completed and submitted, the closing representative shall forward it, along with the original and one copy of the proposed deed, if any, to the board. The board must also be provided copies of all reservations and exceptions listed in the title insurance commitment or proposed deed. The staff of the board will examine the closing papers (and draft a warranty deed if needed). If all is in order, the board will request the state comptroller to issue a treasury warrant in the amount of the purchase price. When the warrant is received by the board, it will be forwarded with the other closing materials to the representative so that the transaction can be completed.(h) When the closing representative is satisfied that all closing requirements have been met, the closing representative shall require the seller to execute and tender the deed, and shall, on behalf of the board, tender the consideration to the seller. The closing representative shall also require the veteran to execute the contract of sale and purchase. The veteran must execute this personally, no other person is authorized to execute it for him.(i) The closing representative shall file the deed and contract of sale and purchase for recording, together with any additional instruments which should be recorded. The recorded originals of the deed to the board and the contract of sale and purchase shall be sent to the board, where they will be made a part of the veteran's permanent file.(j) The board has obtained a group credit life insurance policy and a group disability policy for the benefit of both veterans and non-veterans who are purchasing land through the program. If the contract holder obtains the group credit life insurance and dies while it is in force, the principal balance of the veteran's account as of the date of death will be paid in full in accordance with the terms of the policy of insurance. If the contract holder obtains the group disability insurance and becomes disabled, the account holders regularly scheduled payments will be made in accordance with the terms of the policy of insurance. The policy or policies will be terminated when the contract holder dies or pays the account in full.</content><note type="source"><p>Source Note: The provisions of this §175.7 adopted to be effective March 11, 1986, 11 TexReg 1005; amended to be effective October 19, 1987, 12 TexReg 3602; amended to be effective March 22, 1991, 16 TexReg 1472; amended to be effective July 28, 2025, 50 TexReg 4969.</p></note></section><section identifier="/us/state/tx/tac/t40/p5/c175/scA/s175.8"><num value="175.8">§175.8</num><heading>Contract of Sale and Purchase</heading><content>(a) The contract of sale and purchase will be prepared by the board. It is to be executed by both the veteran and the chairman of the board.(b) The board will specify the terms of the contract for each transaction.(c) Each contract of sale and purchase shall bear a rate of interest designated by the board and shall not exceed 30 years in duration.(d) If the tract contains improvements or is located in an underground irrigation water area, the chairman may require accelerated installments for the purpose of protecting the board's investment.(e) Installment payments on a contract of sale and purchase shall be made on a monthly basis with the dates specified in the contract. (f) Advance payments may be made at any time. When making an advance payment the veteran should provide the board with written instructions as to the nature of the payment (i.e., whether it is an additional payment against principal or an advance installment payment). Making an additional payment against principal will not relieve the veteran of the obligation to make each installment payment as it becomes due.(g) All taxes shall be kept current. Evidence of their payment shall be submitted to the board by May 1 of each year.(h) If there are any material errors in the contract, the chairman may execute a correction contract. This instrument will then be provided to the veteran for signing.</content><note type="source"><p>Source Note: The provisions of this §175.8 adopted to be effective March 11, 1986 11 TexReg 1005; amended to be effective July 28, 2025, 50 TexReg 4969.</p></note></section><section identifier="/us/state/tx/tac/t40/p5/c175/scA/s175.9"><num value="175.9">§175.9</num><heading>Death of a Purchaser</heading><content>(a) Upon the death of the purchaser, if the account is insured under a group life insurance plan, the board should be immediately notified and furnished with a certified copy of the death certificate and a deed fee, which is not paid under the group insurance plan.(b) If the account is not insured at the time of the purchaser's death, the board should be furnished with: (1) certified copies of all probate proceedings, if any; or(2) an affidavit of heirship, if the purchaser dies intestate and no administration is necessary for the estate.(c) The person or persons acquiring the rights of the deceased purchaser should indicate to the board that they are willing to accept the obligations of the contract of sale and purchase.(d) Upon receipt of the items listed in subsections (a), (b), and (c) of this section, the records of the board will be changed to reflect the new ownership.</content><note type="source"><p>Source Note: The provisions of this §175.9 adopted to be effective March 11, 1986, 11 TexReg 1005; amended to be effective August 12, 2001, 26 TexReg 5838; amended to be effective July 28, 2025, 50 TexReg 4969.</p></note></section><section identifier="/us/state/tx/tac/t40/p5/c175/scA/s175.10"><num value="175.10">§175.10</num><heading>Insurance Losses</heading><content>(a) All proceeds received for insurance losses must be deposited with the board. These proceeds may be used to repair or replace the damaged or destroyed improvements, or they may be applied to the principal balance of the veteran's account.(b) In the event a check jointly payable to the board and purchaser by the insurance company, the veteran shall endorse the check and forward it to the board. The proceeds will be held in a special account until the damaged or destroyed improvement has been repaired or replaced, or until it has been determined that the proceeds are to be applied to the principal balance of the veteran's account. (c) If there has been a partial loss, repairs shall be made in order to prevent further deterioration. If the loss is total, the veteran will have the option of rebuilding the improvement or applying the proceeds to the principal balance of the veteran's account. If applying the proceeds to the principal balance of the account pays it in full, any unused funds will be refunded to the veteran, or his or her designee, as soon thereafter as practicable.(d) When an improvement is repaired or replaced, and the loss is under $500, the veteran should:(1) submit to the board itemized statements showing the materials and labor furnished; and(2) submit to the board an affidavit showing that all of the materials and labor specified in the statements were actually used in the repair or replacement of the improvement.(e) When an improvement is repaired or replaced and the loss is over $500, the veteran should:(1) submit to the board an itemized statement showing the materials and labor furnished; and(2) allow sufficient time for the board to make a physical inspection of the repaired or replaced improvement.(f) Reimbursement from the insurance proceeds may be made directly to the veteran or the veteran's creditors. If reimbursement is to be made to the veteran, the itemized statements mentioned in subsections (d)(1) and (e)(1) of this section must show that payment has already been made by the veteran. If reimbursement is to be made to the creditors, the veteran must authorize the board in writing to pay the creditors.(g) Reimbursement can be made only when the damaged or destroyed improvement has been repaired or restored.(h) If proceeds from insurance losses are not completely used in restoring improvements to their original condition, the remaining balance on deposit will be applied to the principal balance of the veteran's account.(i) The application of insurance proceeds to the principal balance of the veteran's account shall not relieve the veteran of the obligation to make the regular installment payments.</content><note type="source"><p>Source Note: The provisions of this §175.10 adopted to be effective March 11, 1986, 11 TexReg 1005; amended to be effective July 28, 2025, 50 TexReg 4969.</p></note></section><section identifier="/us/state/tx/tac/t40/p5/c175/scA/s175.11"><num value="175.11">§175.11</num><heading>Transfer of Contract of Sale and Purchase</heading><content>(a) After the original veteran-purchaser has been in possession of the tract for at least three years from the date of closing, the contract of sale and purchase may be transferred in one of the following ways:(1) it may be assigned to an eligible veteran without any increase in the interest rate; or (2) it may be assigned to a non-veteran, a veteran who is currently participating in the program or a firm or corporation with an increase in the interest rate. The new rate of interest shall be set by the board.(b) The contract may be transferred before the expiration of the three-year period only if the veteran dies, becomes financially incapacitated, or in the event of an involuntary transfer by court order or proceedings, such as bankruptcy, sheriff's sale, or divorce. Affidavits, certified copies of proceedings, and other documentation may be requested by the board in connection with this exception.(c) If the veteran attempts to transfer, sell, or convey the property before the three-year period has elapsed, the board may forfeit the account and order the property to be sold. In the alternative, the board may require that the account be paid in full and a penalty paid, or approve the unauthorized transfer upon the payment of the penalty and receipt of such other documentation as may be required. The penalty shall be the difference between the account's interest rate and the interest rate charged to non-veterans at the time the unacceptable transfer or conveyance is discovered.(d) No assignment shall be effective until approved by the chairman of the board.(e) Upon request, the board will furnish to the assignor, or to one designated by the assignor, the forms and information necessary to complete a transfer.(f) An assignment will not be approved if it is executed by an attorney in fact.(g) If married, the veteran's spouse must join in the assignment.(h) If the assignor wishes to reserve any interest in the property, the assignor must obtain the approval of the board prior to the assignment. An assignment will not be approved if the assignor attempts to reserve any interest in the contract of sale and purchase.(i) The assignee, not the board, is not responsible for the condition of title subsequent to the execution of the contract of sale and purchase with the original veteran-purchaser.</content><note type="source"><p>Source Note: The provisions of this §175.11 adopted to be effective March 11, 1986, 11 TexReg 1005; amended to be effective July 28, 2025, 50 TexReg 4969.</p></note></section><section identifier="/us/state/tx/tac/t40/p5/c175/scA/s175.12"><num value="175.12">§175.12</num><heading>Severances</heading><content>(a) A veteran may obtain a severance deed from the board for a portion of land the veteran purchases and for which the veteran wishes to have clear title as follows: (1) A current ground survey of the portion to be severed must be made by a qualified surveyor. The survey requirements of §175.4 of this chapter (relating to Land Description) must be met. The field notes and plat prepared from the ground survey must be submitted to the board.(2) Both the tract to be severed and the remaining tract must have access to a public road. If the severed tract includes all of the road frontage, a 60-foot access easement to the portion remaining under contract must be conveyed to the board.(3) Upon receipt of the field notes and plat, the board will have an appraisal made to determine the amount to be paid for the severed acreage. The veteran will be notified of the result of this appraisal. This amount, which will be applied against the principal of the veteran's account, should be submitted to the board, along with a deed fee. The board will then issue a deed, conveying clear title to the severed portion.(b) The board will not issue severance deeds listing anyone besides the original veteran purchaser or the last approved assignee as the grantee.(c) All requests for severances will be subject to the approval of the chairman of the board.</content><note type="source"><p>Source Note: The provisions of this §175.12 adopted to be effective March 11, 1986, 11 TexReg 1005; amended to be effective August 12, 2001, 26 TexReg 5838; amended to be effective July 28, 2025, 50 TexReg 4969.</p></note></section><section identifier="/us/state/tx/tac/t40/p5/c175/scA/s175.13"><num value="175.13">§175.13</num><heading>Sale of a Material Asset, and Improvements</heading><content>(a) Material Assets.(1) No sale of timber, rock, gravel, sand, chemicals, or other material asset, the loss of which tends to lower the value of the land, shall be effective until approved by the chairman of the board.(2) The chairman will prescribe the form or forms of instruments necessary to effectuate a sale, and will approve any such sale on behalf of the board.(3) At least one-half of the proceeds from the sale of a material asset shall be paid to the board. This amount will be applied toward the principal balance of the veteran's account.(b) Improvements.(1) Before any improvements may be removed from the property the veteran must obtain written permission to do so from the chairman. (2) The veteran's request should be in writing and addressed to the chairman, and advise the amount to be paid, if any, and the reasons for removal.(3) The chairman is authorized to enter into, and execute on behalf of the board, an agreement recognizing that an improvement, when constructed, shall not attach to and become a part of the realty for the duration of any obligation incurred by a purchaser in connection with the erection of such improvement.</content><note type="source"><p>Source Note: The provisions of this §175.13 adopted to be effective March 11, 1986, 11 TexReg 1005; amended to be effective July 28, 2025, 50 TexReg 4969.</p></note></section><section identifier="/us/state/tx/tac/t40/p5/c175/scA/s175.14"><num value="175.14">§175.14</num><heading>Mineral Leases</heading><content>(a) When applicable, a veteran may execute mineral leases covering the land being purchased through the board. The following conditions must be met:(1) No oil and gas lease will be accepted unless the board's standard form is used. Copies of this form will be furnished upon request.(2) The lease must be approved by the chairman of the board.(3) Each lease must state the actual and true consideration to be paid.(4) At least one-half of all proceeds, including bonus, rentals and royalties received under the terms of such leases, shall be paid to the board and applied toward the principal balance of the account. If an account is delinquent, the board will require that additional payments of bonus, rental and royalty be paid until the delinquency is satisfied. Payments made in this manner will not relieve the veteran of the veteran's obligation to make the regular installment payments.(5) The lease term may not exceed 10 years, except when a lease is held in force by production. However, coal and lignite leases may be executed, with board approval, for terms up to 40 years.(6) No lease may contain a provision for an option, renewal or release for any term, nor may such provision be provided for by separate instrument.(b) Each executed mineral lease must be submitted to the board in duplicate. The approved original will be returned for recording with the county clerk. One half of the bonus payment should accompany the lease, along with a lease review fee. If the account is delinquent, all of the bonus payment, or as much as may be required, should be sent to the board to satisfy the delinquency.(c) At least five acres around and including improvements on a tract must be excluded from all leases executed for iron ore, gravel, coal, or other substances, the mining or development of which tends to destroy the surface value of the land.(d) The veteran may lease the property for agricultural, hunting or grazing purposes or for other surface uses without obtaining the approval of the board. However, if the tract is forfeited the rights of the lessee are then terminated.</content><note type="source"><p>Source Note: The provisions of this §175.14 adopted to be effective March 11, 1986, 11 TexReg 1005; amended to be effective August 12, 2001, 26 TexReg 5838; amended to be effective July 28, 2025, 50 TexReg 4969.</p></note></section><section identifier="/us/state/tx/tac/t40/p5/c175/scA/s175.15"><num value="175.15">§175.15</num><heading>Approval of Easements</heading><content>(a) A contract holder may, with the approval of the board, grant easements or rights of way: (1) A right of way granted to the state or county for roads, channels, and similar projects. The forms to be used in granting such an easement may be obtained from the board or the Texas Department of Transportation.(2) Utility easements for pipelines, electric lines, and similar projects. The board requires use of its form when granting such an easement, except when an easement for a waterline is to be granted. In that case the Federal Housing Administration (FHA) form may be used. If an FHA form is used, a course and distance description of the waterline must be attached.(3) Flowage easements granted in connection with dams and reservoir projects. The agency administering the project furnishes the forms for such easements. An elevation contour map of the acreage involved, together with an engineer flood data sheet, may be used in place of a course and distance description.(4) Easement for right of way purposes. The board does not require the use of a specified form for easements of this type. However, a form that may be used as a guide is available from the board.(b) If a board form is not used, the following paragraph must be inserted into the grant of easement. This paragraph more fully explains the conditions of ownership of the tract of land: "The land herein described is under Contract of Sale and Purchase to grantor herein who will receive a deed to said lands from the Veterans Land Board when all the terms of said contract have been complied with. Grantor executes this instrument with the approval of the Veterans Land Board in accordance with the regulations of said board, which approval is signified by the signature hereon of its chairman." A signature block must be provided at the conclusion of the instrument, as follows: Approved this __________ day of __________, 20__ Veterans Land Board of the State of Texas by: ___________________________Chairman, Veterans Land Board.(c) The contract holder must submit two original grants of easement to the board. These must be signed by the contract holder and acknowledged by a notary public.(d) A fee must be paid to the board for review and approval of such easements. This fee is to be submitted to the board, along with the duplicate easement documents and any consideration paid, at the time the board's approval is requested.(e) The consideration paid for the easement must be stated clearly and accurately. Statements such as "ten dollars and other good and valuable consideration" are not acceptable.(f) All cash consideration paid for an easement must be submitted to the board. The board will distribute the consideration in light of the account's payment record, the amount of consideration and the effect on the value of the land. At least one-half of the consideration will be retained by the board and applied to the principal balance of the account.(g) Any payment made to compensate for temporary damage to the land, such as to growing crops or to plowed fields, should be paid directly to the contract holder. The amount of such payment and its purpose must be specifically stated in the grant of easement.(h) If payment is made for permanent damage to or depletion of the land, such as the cutting of timber, one half of that amount must be paid to the board. This amount is to be applied to the principal of the veteran's account.(i) If the easement is to be donated, the grant of easement should so state.</content><note type="source"><p>Source Note: The provisions of this §175.15 adopted to be effective March 11, 1986, 11 TexReg 1005; amended to be effective August 12, 2001, 26 TexReg 5838; amended to be effective July 28, 2025, 50 TexReg 4969.</p></note></section><section identifier="/us/state/tx/tac/t40/p5/c175/scA/s175.16"><num value="175.16">§175.16</num><heading>Payment in Full</heading><content>(a) When an account is paid in full the board will draft a deed conveying the land to the original veteran-purchaser or the last approved assignee. If a deed is executed to someone other than the legal owner, the deed and the rights thereto shall inure to the benefit of the legal owner. A fee must be paid to the board for issuance of the deed.(b) The board will accept a cashier's check, certified check, personal check, money order or cash as final payment.(c) The board will furnish a final statement to the contract holder at any time upon request.</content><note type="source"><p>Source Note: The provisions of this §175.16 adopted to be effective March 11, 1986, 11 TexReg 1005; amended to be effective August 12, 2001, 26 TexReg 5838.</p></note></section><section identifier="/us/state/tx/tac/t40/p5/c175/scA/s175.17"><num value="175.17">§175.17</num><heading>Fees and Deposits</heading><content>(a) Notwithstanding any other references to fees in this chapter to the contrary, the only fees collected by the board shall be those described in this section.(1) The board shall from time-to-time adopt by resolution a schedule describing the services for which it charges fees. The board's resolution adopting a schedule shall set the specific fee for each service described in the schedule, provided that no fee shall exceed the maximum amounts described in this section. The schedule will be made available to any person upon request and will be published on the board's website. (2) If another law of the state requires the board to perform a service, the board shall collect the fee authorized by said law.(3) On a case-by-case basis, the chairman or the executive secretary may waive the collection of any fee described in this section if it serves the best interests of the program.(b) The board shall collect the following fees when they are applicable:(1) a fee not to exceed $250 for a regular (or first) appraisal of a tract of land;(2) a fee not to exceed $100 for the reappraisal of land previously appraised by the board for the same transaction;(3) a $2 per acre fee for a subdivision pre-appraisal and consultation, calculated on the gross acreage in the subdivision, with a minimum of $250; and(4) a fee not to exceed $25 for a returned check for non-sufficient funds; (5) a fee not to exceed $150 for the preparation, review, or approval of any document, including but not limited to the following:(A) contract of sale and purchase;(B) mineral lease or assignment of mineral lease;(C) easement, including but not limited to utility easements, access right of ways, and recreational;(D) transfer of contract and sale and purchase; and(E) deed issued when a portion of a tract is severed prior to the full payment of its loan;(6) a fee for a deed issued when a loan is paid in full, not to exceed:(A) $150 if the contract incorporates this chapter by reference, or includes a general reference to the rules or regulations of the board; or(B) the amount of the fee that was in effect on the date the contract was executed if the contract contains no reference to the rules or regulations of the board.(c) The board may collect a fee to cover the cost of a credit report. Any fee for this purpose cannot exceed the actual cost of obtaining such a report from a third-party vendor. (d) No fee may be charged in connection with the program to a loan applicant by a third party that has not been approved by the board.</content><note type="source"><p>Source Note: The provisions of this §175.17 adopted to be effective August 12, 2001, 26 TexReg 5839; amended to be effective April 23, 2023, 48 TexReg 2140; amended to be effective July 28, 2025, 50 TexReg 4969.</p></note></section><section identifier="/us/state/tx/tac/t40/p5/c175/scA/s175.18"><num value="175.18">§175.18</num><heading>Resale of Forfeited Land</heading><content>(a) Definitions. The following words and terms, when used in this chapter, shall have the following meanings, unless the context clearly indicates otherwise.(1) Bid--A bid is an offer to purchase a Type I or Type II tract submitted in the manner prescribed by the board.(2) Highest bidder--The person who submits the best and highest bid which satisfies all the terms, conditions, and guidelines set by the board for any sale of any tract.(3) Minimum bid amount--The minimum acceptable selling price set by the board for each Type I and Type II tract.(4) Type I land tract--When a tract is forfeited and first ordered for sale or lease by the board, it is automatically classified as Type I land.(5) Type II land tract--When Type I land has been made available for sale or lease and is not sold or leased by the board for any reason, it is automatically reclassified as Type II land at the moment the board determines that no acceptable bid was received.(b) Costs of sale.(1) All property taxes which are, in the opinion of the board, lawfully due and owing on a Type I or Type II tract on the date it is resold by the board, may be paid from the proceeds of the issuance of bonds.(2) All costs to the board associated with selling a Type I or Type II tract, including administrative expenses, road construction, surveying, legal fees, real estate commissions, advertising expenses, and other similar costs, may be paid from the proceeds of the issuance of bonds.(c) Sale of forfeited tracts.(1) Qualified purchasers.(A) Type I tracts shall be first offered for sale or lease only to veterans who meet the eligibility requirements of §175.2 of this chapter (relating to Definitions and Loan Eligibility Requirements). Bids on Type I tracts shall be submitted to the board on or before the bid deadline set by the board. These bids shall be reviewed by the board and the board may, in its discretion, award any Type I tract to the highest bidder.(B) Any Type I tract not awarded by the board on the bid deadline date shall be immediately reclassified as Type II land. Type II tracts may be offered for sale or lease to both non-veterans and eligible veterans. Bids on Type II tracts may be reviewed by the chairman who may, in his or her sole discretion, award any Type II tract to the highest bidder.(2) Terms of sale.(A) The board may, in its sole discretion, set terms, conditions, and guidelines governing the sale of any tract.(B) The board may combine or subdivide Type I or Type II land to form individual Type I or Type II tracts.(C) Any tract formed by combining Type I and Type II shall be classified as Type I until it has been offered for sale or lease and is not sold or leased by the board for any reason. Thereafter, it shall be reclassified as Type II land.(D) Type II tracts shall be sold to an eligible veteran or non-veteran under a contract of sale and purchase or under a note and deed of trust.(3) Deposit. Each bidder shall be required to deposit, in cash, an amount designated by the board.(4) Duration. The land shall be sold under contract of sale and purchase or under a note and deed of trust not to exceed 30 years in duration.(5) Additional terms and conditions. Each contract of sale and purchase or note and deed of trust shall conform to the provisions of the Texas Natural Resources Code, Chapter 161, and shall be in such form, and contain such terms and conditions, as the chairman of the board may prescribe.(6) Bid rejection. The board may reject any and all bids on Type I tracts. The chairman may reject any and all bids on Type II tracts.(7) Forfeiture. If a successful bidder refuses to execute a contract of sale and purchase or a note and deed of trust, the money submitted with the bid may be forfeited and shall be deposited in the state treasury and credited to the fund.(d) Bids.(1) Minimal amount. The board shall, in its sole discretion, set the minimum amount for which offers will be accepted for each Type I and Type II tract. Any costs to the board associated with selling a Type I or Type II tract, including road construction, surveying, advertising, legal fees, property taxes, real estate commissions, advertising expenses, and other similar costs, may be made part of the minimum bid amount.(2) Bid deadline.(A) The board may set a specific time and date on or before which bids pertaining to any tract must be submitted. In such event, no bid shall be awarded by the board prior to that time.(B) The board may elect to set no specific time and date on which bids pertaining to any tract must be submitted. In such event, the chairman shall be authorized to review bids when and as received, and accept the first acceptable bid on any such tract.</content><note type="source"><p>Source Note: The provisions of this §175.18 adopted to be effective March 11, 1986, 11 TexReg 1005; amended to be effective October 11, 1988, 13 TexReg 4785; amended to be effective September 15, 1989, 14 TexReg 4473; amended to be effective June 9, 2003, 28 TexReg 4436; amended to be effective August 21, 2013, 38 TexReg 5311; amended to be effective July 28, 2025, 50 TexReg 4969.</p></note></section><section identifier="/us/state/tx/tac/t40/p5/c175/scA/s175.19"><num value="175.19">§175.19</num><heading>Subdivision Loan Processing</heading><content>(a) To qualify for subdivision loan processing a seller must:(1) have, or plan to have at least five tracts of land available for sale to veterans in the same subdivision or development;(2) agree to comply with all local ordinances and regulations regarding the subdivision or resubdivision of land; and(3) agree to provide the services and materials described in this rule to interested veterans in order to facilitate the board's processing of loans.(b) A written request for subdivision loan processing of an existing or proposed subdivision must be submitted to the board.(c) Those sellers who qualify for subdivision loan processing may request the board to perform a preliminary appraisal of the subdivision. This preliminary appraisal process will include:(1) Establishing high and low per acre values for the subdivision. The board will use these valuations in determining how much it will loan for the purchase of tracts in the subdivision; (2) Advising the seller, when appropriate, of the best subdivision plan, so as to maximize land values of the gross acreage for sale; and (3) Discussing requirements for roads, easements, water sources and other factors affecting land values. Recommendations will be made if appropriate.(d) A fee is charged for the preliminary subdivision appraisal.(e) After the preliminary appraisal has been completed and the seller indicates that tracts within a subdivision are ready for sale to veterans, the seller may make arrangements with the board for appraisals of specific tracts. The board will commit itself to a loan value based upon these appraisals even though a specific veteran purchaser has not yet been identified. To obtain these appraisals, the seller must:(1) Supply a ground survey of each tract of land by a registered surveyor; (2) Submit to the board a certified copy of a recorded subdivision plat, if the tracts are to be sold by lot and block numbers. This plat must contain evidence that it has been approved and accepted by the county commissioners;(3) Obtain a title insurance commitment for each tract;(4) Request a field appraisal of each tract by the board. A fee is charged in advance for each appraisal. This fee will be refunded to the seller if the tract is sold to a veteran through the program; and(5) Furnish a recorded subdivision plat, if requested by the board.(f) Sellers may arrange to obtain application packets from the board.(g) Sellers using the subdivision loan processing system should help veterans complete all forms and documents required for processing and closing loans. Sellers will also be responsible for having veterans:(1) submit the correct amounts for down payments and fees required by the board; and(2) provide any missing documentation needed in order to qualify, process, or close a loan.(h) Completed application packets must be received by the board within 30 days of the date the application contract is signed.(i) Application packets are to be submitted by the seller and must include:(1) a copy of the recorded subdivision plat or other evidence of compliance with local regulations and ordinances; and(2) a title insurance commitment for the tract to be purchased.(j) Due to the nature and purpose of the subdivision loan processing program, it is the seller's responsibility to work with the veteran and the board to expedite the processing of the loan. For this reason it is suggested that the seller designate one individual to serve as a contact person with the board. This person should be familiar with the board's forms, rules, procedures, and any other requirements necessary for successful processing of the loan. In this regard it is also suggested that the contact person maintain regular contacts with the board's field staff, local veterans' service officers, and the title company providing insurance.</content><note type="source"><p>Source Note: The provisions of this §175.19 adopted to be effective March 11, 1986, 11 TexReg 1005; amended to be effective August 12, 2001, 26 TexReg 5838; amended to be effective September 18, 2003, 28 TexReg 7998; amended to be effective July 28, 2025, 50 TexReg 4969.</p></note></section><section identifier="/us/state/tx/tac/t40/p5/c175/scA/s175.20"><num value="175.20">§175.20</num><heading>Delinquencies and Forfeiture Procedures</heading><content>(a) Definitions. The following words and terms when used in this section shall have the following meanings, unless the context clearly indicates otherwise:(1) Account--The loan account a borrower holds with the Veterans Land Board. The account includes the obligations between the borrower and the board as evidenced by contracts and documents in the borrower's loan file as well as the accounting records of the board. This includes the amount of the unpaid principal balance of the loan, any administrative costs made a part of the loan, unpaid interest, and any delinquent amount.(2) Borrower--The person presently obligated to make the loan installment payments set forth in the contract, including the purchaser at a forfeited land sale or the last board-approved assignee of the original veteran purchaser.(3) Contract--The contract of sale and purchase between the board and a borrower.(4) Current--The account is in good standing with no installments past due.(5) Delinquent amount--The total amount needed to bring an account current. This includes all past due installments, administrative costs made part of such past due installments, and all accrued delinquent interest or penalty on all such past due installments. Delinquent interest or penalty shall accrue on any delinquent amount as set by the board from time to time by resolution.(6) Forfeiture--The action by which the board declares a borrower to be in breach of his or her contract by virtue of failing to perform a material term of the contract, including, but not limited to, timely payment of the loan installments.(7) Installment--The amount of the periodic loan payment specified by the contract.(8) Partial Payment Agreement--A borrower's written agreement to clear the delinquent amount on or before a designated date by making payments in addition to the installment amount on scheduled dates as described in the agreement.(9) Delinquent interest--The interest or penalty which accrues on a loan installment which has become delinquent. The delinquent interest rate or penalty shall be set by the board from time to time by resolution(10) Reinstatement penalty--The amount charged to a borrower (whose contract has been forfeited by the board) in order to reinstate the contract. The reinstatement penalty is in addition to the amount necessary to bring the account current.(A) Beginning on the date of the first and any second forfeiture of the contract, each unpaid delinquent installment (of principal and interest combined) will accrue a reinstatement penalty in an amount equal to 1.5 percent per month (or 18 percent per year), until the contract is reinstated.(B) Beginning on the date of the third instance and any subsequent forfeiture of the contract, the outstanding principal balance of the contract will accrue a reinstatement penalty in an amount equal to 1.5 percent per month (or 18 percent per year), less the accrued delinquent interest, until the contract is reinstated.(11) Sale order date--The date on which the board meets to order a tract advertised for sale, or for lease for mineral development.(b) Delinquencies.(1) If a scheduled loan installment is not received by the board within the time allotted by the board, the account becomes delinquent. Any payments received on an account shall be first applied to the delinquent amount. The account continues in a delinquent status until the full amount of the delinquent amount has been received by the board.(2) A partial payment agreement may be granted at the discretion of the chairman at any time prior to the date an account is forfeited. From time to time, the board may, by resolution, set guidelines for other conditions under which partial payment agreements may be approved.(c) Forfeiture.(1) The board is the sole judge whether any contract has been forfeited. An account shall become eligible for forfeiture if:(A) it remains in a delinquent status for 30 or more consecutive days; or,(B) the contract has been transferred without obtaining the board's permission; or,(C) property taxes for all prior years shall not have been paid by May 1 of any year; or,(D) the provisions of the Natural Resources Code, Chapter 161, the terms of the contract, or the rules of the board are not satisfied.(2) The board must give 30 days written notice to the borrower, the original veteran purchaser (if different from the borrower) and all board approved assignees of the original veteran purchaser, if any, and must specify the reason why the contract is subject to forfeiture. This notice will be sent by certified mail to the last known address of these parties. If the reason for forfeiture is cured or corrected within 30 days the board shall not declare a forfeiture.(3) The liability of the original veteran purchaser and any subsequent assignee or assignees is joint and several, but the original veteran purchaser is primarily liable for payment of the money under the contract. The board may release any assignor from liability if the assignor requests the release in writing and at least 3 years have passed since the assignment was approved and the assignee has paid the account in a manner acceptable to the board.(4) A forfeiture shall be effective at the same time the board meets and adopts a resolution forfeiting the contract. At that time, the land and all payments previously made are forfeited.(5) When the forfeiture is effective, the full title to the land shall revest in the board. Any interest in the mineral estate which the board acquired at purchase shall likewise revest in the board. The board shall recognize, and continue in force and effect, any outstanding valid oil, gas, or mineral lease and collect all rentals, royalties, or other amounts payable under the lease. The board may also lease the land on terms it considers proper. The proceeds received from a lease on a forfeited tract shall be credited to the Veterans Land Fund; however, the chairman is authorized to credit any portion of the lease proceeds to the delinquent amount and unpaid principal of a loan as part of a borrower's attempt to reinstate his or her contract.(d) Reinstatement.(1) From time to time, the board by resolution may set additional guidelines and reasonable requirements which must be satisfied before reinstatement may be granted (e.g., evidence that there are no delinquent taxes due as of the date and time of reinstatement, etc.).(2) The borrower, the original veteran purchaser (if different from the borrower) and all board approved assignees may reinstate the contract at any time before the sale order date if the reason for forfeiture was failure to keep the account current. If the contract was forfeited for any other reason, the board in its discretion may determine there is no right to reinstate the contract.(A) Any person wishing to exercise a right of reinstatement shall submit to the board payment of the delinquent amount, the reinstatement penalty and other costs incident to the reinstatement as prescribed by the board.(i) If there is only one person who has a right to reinstate a contract (there having been no board approved assignments of the contract), or if the last approved assignee requests reinstatement, the chairman of the board may in his or her discretion reinstate the contract immediately upon receipt of payment of the delinquent amount, the reinstatement penalty and other costs prescribed by the board.(ii) If two or more persons, other than the last approved assignee, appear to have a right to reinstate the same contract, reinstatement shall not be granted prior to the time the board meets on the sale order date. In this event, all persons wishing to reinstate the same contract are required to submit to the board payment of the delinquent amount, reinstatement penalty and other costs prescribed by the board. Any person failing to satisfy this requirement by the sale order date may, in the chairman of the board's discretion, be deemed to have failed to exercise his or her right to reinstate the contract. Any monies and documents submitted by such persons shall be returned. If on the order for sale date, there are still two or more persons who have satisfied the requirements to reinstate the same contract, the chairman of the board may, in his or her discretion, reinstate the contract in the name of the person that has complied with the board's requirements for reinstatement and was most recently approved by the board as a purchaser or an assignee.(B) A person who desires to reinstate a contract but is unable to submit full payment of the delinquent amount before the anticipated sale order date, may petition the chairman to postpone the sale order date for the tract. The chairman in his or her sole discretion may grant or deny such a petition.(i) In granting such a petition, the chairman may set reasonable conditions which must be satisfied by a stated deadline. Such conditions may include, but are not limited to, the requirement that the requesting party enter into a partial payment agreement.(ii) If the requesting party satisfies all conditions set by the chairman by the stated deadline, the account shall be reinstated.(iii) If the requesting party fails to satisfy all conditions set by the chairman by the stated deadline, the sale order date for the tract may be reset. If the requesting party thereafter fails to pay the delinquent amount in full prior to the sale order date, all monies paid under the partial payment agreement shall be forfeited to the board.(3) Any person failing to make a timely submission shall lose his or her right of reinstatement.(4) The right to reinstate a contract is extinguished when the tract has been ordered advertised for sale (or for lease for mineral development). However, the borrower, the original veteran purchaser (if different from the borrower), or any board approved assignee may petition the board to permit reinstatement.(A) The board, in its discretion, may reinstate the contract under conditions it deems appropriate, including, but not limited to, requiring that the account be paid in full simultaneously with the reinstatement.(B) Stay of Sale.(i) The board, in its discretion, may stay (postpone) sale of the tract. The board may set conditions which must be satisfied before reinstatement will be permitted. The chairman is authorized by the board to make a written agreement with the party seeking reinstatement setting forth all conditions for reinstatement, including a date by which each condition must be satisfied. The conditions may include, but are not limited to, the following: payment of the delinquent amount, payment of the reinstatement penalty (including costs incident to the reinstatement), and submission of tax certificates evidencing that there are no delinquent taxes on the land. When the board determines that all conditions set forth in the agreement have been satisfied, it shall reinstate the contract. Until the board's conditions have been satisfied, the contract will remain in a forfeited status, but the sale of the tract shall be stayed.(ii) The stay may be revoked at any time by the board if the borrower fails to satisfy any of the conditions set forth in the agreement.(iii) The board shall be the sole judge of whether the conditions of the agreement have been satisfied.(5) The board expressly authorizes the chairman to reinstate any account at any time prior to receipt of full payment of the delinquent amount if he or she deems it to be in the best interest of the Veterans Land Program.(6) If a contract is forfeited more than two times, the chairman may require, as an additional condition of reinstatement, that the account be paid in full.(e) Re-amortization.(1) The chairman, in his or her discretion, may permit a borrower to re-amortize his or her loan to incorporate all or part of the delinquent amount into the unpaid balance.(2) A re-amortization shall be granted only on the condition that the borrower's loan has not been previously re-amortized.(3) The chairman's consent to re-amortize shall state the new balance and the term over which it is to be re-amortized.(f) Restoring Eligibility to Participate after Order for Sale.(1) A person who is ineligible to participate in loan programs because of a past forfeiture and order for sale, may make a written request to the board for a restoration of the person's eligibility. The request must detail the circumstances which led to the prior forfeiture and order for sale and justify such request. If granted, the requestor must fulfill any conditions that the board, in its sole discretion and notwithstanding any other provisions of this chapter, establishes or determines are necessary to restore such eligibility.(2) Notwithstanding any other provisions of this chapter, the board authorizes the chairman to restore a person's eligibility to participate in board loan programs, as a veteran or non-veteran as the case may be, without further board action if the person requesting the restoration of eligibility:(A) was not the account holder at the time the account was forfeited and ordered for sale, because the board had earlier approved a transfer of the account to a new account holder and the account was current at the time of transfer; or(B) was the account holder at the time of forfeiture and order for sale and:(i) the board has sold the property that was the subject of the forfeited account; and(ii) the person requesting the restoration of eligibility pays to the board the unpaid interest, including delinquent interest, and reinstatement penalty that had accrued on the forfeited account as of the date the account was ordered for sale.(g) Savings clause. Interest charged and collected on any contract will not exceed the maximum rate or amount of nonusurious interest that may be contracted for, taken, reserved, charged, or received under any law. Any interest in excess of that maximum amount will be credited on the principal amount of the contract or, if the principal amount has been paid, refunded to the borrower. On any acceleration or required or permitted prepayment any excess interest will be canceled automatically as of the acceleration or prepayment or, if the excess interest has already been paid, credited on the principal amount or, if the principal amount has been paid, refunded to the borrower. This subsection shall prevail over other provisions in this chapter and any instruments concerning the debt.(h) All contracts are subject to the provisions of the constitution, statutes, and rules governing the board, as such constitution, statutes, and rules may from time to time be amended.</content><note type="source"><p>Source Note: The provisions of this §175.20 adopted to be effective May 17, 1988, 13 TexReg 2168; amended to be effective August 24, 1999, 24 TexReg 6516; amended to be effective August 12, 2001, 26 TexReg 5840; amended to be effective May 15, 2003, 28 TexReg 3846; amended to be effective October 21, 2003, 28 TexReg 9089.</p></note></section><section identifier="/us/state/tx/tac/t40/p5/c175/scA/s175.21"><num value="175.21">§175.21</num><heading>Prizes and Inducements</heading><content>(a) So that a veteran has equity in a tract purchased through the program, the board shall not approve a transaction, the net effect of which involves the seller, realtor, or any party to the transaction other than the veteran directly or indirectly paying the initial payment or down payment(s). This includes inducements such as zero coupon bonds and savings bonds.(b) Subsection (a) of this section shall not be construed to prevent a veteran from contracting with the seller or any other party to a transaction for the payment of other expenses associated with closing the transaction such as survey costs, title examination, and attorney's fees.(c) Subsection (a) of this section shall not be construed to prohibit privileges incidental to the ownership of land and available to all purchasers in the same subdivision and/or joint ownership of recreational areas such as parks and lakes.</content><note type="source"><p>Source Note: The provisions of this §175.21 adopted to be effective March 11, 1986, 11 TexReg 1005; amended to be effective October 19, 1987, 12 TexReg 3602; amended to be effective May 14, 2002, 27 TexReg 4173; amended to be effective July 28, 2025, 50 TexReg 4969.</p></note></section><section identifier="/us/state/tx/tac/t40/p5/c175/scA/s175.22"><num value="175.22">§175.22</num><heading>Duties and Responsibilities of Chairman, Executive Secretary, and Assistant Executive Secretary</heading><content>(a) The chairman of the board may delegate any of the chairman's nondiscretionary responsibilities to the executive secretary and the assistant executive secretary, including the execution of veterans' purchase contracts, easements, and deeds when loans are paid in full.(b) The assistant executive secretary may perform any of the duties of the executive secretary, when and as requested by the chairman or executive secretary.</content><note type="source"><p>Source Note: The provisions of this §175.22 adopted to be effective March 17, 1988, 13 TexReg 1149; amended to be effective December 21, 2010, 35 TexReg 11390; amended to be effective July 28, 2025, 50 TexReg 4969.</p></note></section><section identifier="/us/state/tx/tac/t40/p5/c175/scA/s175.23"><num value="175.23">§175.23</num><heading>County Committees</heading><content>The commissioners court of each county may appoint a committee of up to three resident real property owners, who are knowledgeable and active in veterans' affairs, to serve as a local county advisory committee to the board. The committee shall perform all duties requested by the board, including, but not limited to, providing information about the programs to veterans and veterans' groups, and collecting and reporting relevant information to the board. In the event a county chooses to appoint members to an advisory committee, the county shall notify the board of the names and address of those appointed.</content><note type="source"><p>Source Note: The provisions of this §175.23 adopted to be effective August 18, 1992, 17 TexReg 5460; amended to be effective September 18, 2003, 28 TexReg 7998.</p></note></section></subchapter><subchapter identifier="/us/state/tx/tac/t40/p5/c175/scB"><num value="B">SUBCHAPTER B</num><heading>LAND MORTGAGE FINANCING</heading><section identifier="/us/state/tx/tac/t40/p5/c175/scB/s175.51"><num value="175.51">§175.51</num><heading>Construction of Subchapter B</heading><content>(a) The purpose of this subchapter is to implement the authority granted to the board by the Texas Natural Resources Code, Chapter 161, Subchapter K. The board shall only make loans under this subchapter that are secured by mortgages, deeds of trust, or other liens.(b) The rules of the board set forth in Subchapter A of this chapter (relating to General Rules of Contract for Deed and Financing for Land) shall apply to all loan transactions made by the board that are secured by a mortgage, deed of trust, or other lien on the land to be purchased unless otherwise provided by this subchapter. When applying any provision of Subchapter A to a mortgage loan transaction, those provisions shall be construed as necessary and appropriate for a mortgage loan transaction rather than a contract of sale transaction. The board may, by resolution, clarify the construction of any provision of Subchapter A in its application to a mortgage loan transaction.(c) Any requirement of this subchapter that is not otherwise required by the constitution or statutes of this state may be waived on a case-by-case basis by the board. Any waiver request must be in writing and must describe the circumstances surrounding the request, including all of the reasons why the waiver is requested.(d) Definitions.(1) "Borrower" means a person presently obligated to make payments to the board:(A) For a loan made, or purchased, by the board as provided by this subchapter;(B) For a purchase of land from the board under a contract of sale as provided by Subchapter A of this chapter; or(C) For a loan or contract of sale that the person assumed from the original borrower with board approval.(2) "Contract of sale" means those transactions described in Subchapter A of this chapter, in which the board takes fee title to property as security and sells to the borrower on a contract of sale and purchase. Title is conveyed to the borrower when all terms and conditions of the contract of sale have been satisfied.</content><note type="source"><p>Source Note: The provisions of this §175.51 adopted to be effective January 8, 2002, 27 TexReg 286; amended to be effective July 28, 2025, 50 TexReg 4969.</p></note></section><section identifier="/us/state/tx/tac/t40/p5/c175/scB/s175.52"><num value="175.52">§175.52</num><heading>Borrower's Eligibility and Number of Loans</heading><content>(a) The board shall be the final authority in defining and interpreting all eligibility requirements, and whether a prospective borrower has actually satisfied those requirements. The board may by resolution prescribe the procedures and forms to be used in mortgage loan transactions.(b) A person is eligible to apply for a loan under the provisions of this subchapter if he or she satisfies the requirements of §175.2(c) of this chapter (relating to Loan Eligibility Requirements). (c) A person may only have one land loan at a time as a veteran. However, once that land loan is paid in full he or she may apply for an additional land loan as a veteran. The foregoing notwithstanding, an individual who is currently participating in the program as a veteran may assume a land loan, or take an assignment of a contract of sale as a non-veteran, and may bid on a tract or tracts at a forfeited land sale as a non-veteran.(d) Notwithstanding anything to the contrary in this chapter, a purchaser under an executory board contract of sale and purchase may refinance the obligation represented by the contract of sale and purchase by substituting a purchase money board mortgage loan. No additional funds may be advanced except for expenses incident to the transaction, as provided in the Texas Natural Resources Code, §161.508(b). The chairman may establish procedures, documents, and policies to accomplish transactions authorized by this section. To the maximum extent possible, the substitute loans must retain the terms of the original contracts of sale and purchase and must comply with the requirements for new board mortgage loans. All liens securing the substitute loans relate back to the date of the original contracts of sale and purchase.</content><note type="source"><p>Source Note: The provisions of this §175.52 adopted to be effective January 8, 2002, 27 TexReg 286; amended to be effective April 20, 2003, 28 TexReg 3068; amended to be effective July 28, 2025, 50 TexReg 4969.</p></note></section><section identifier="/us/state/tx/tac/t40/p5/c175/scB/s175.53"><num value="175.53">§175.53</num><heading>Eligibility and Description of Land</heading><content>(a) The board shall only make, or purchase, loans under this subchapter that are secured by tracts of land that meet all the requirements of §175.3 of this chapter (relating to Land Selection). (b) For every loan made under this subchapter, the board must be furnished a survey and legal description for its review that satisfies all the requirements set forth in §175.4 of this chapter (relating to Land Description). (c) For every loan made under this subchapter, the board must be furnished an appraisal that conforms to the requirements of §175.5 of this chapter (relating to Appraisal of Land).(d) Notwithstanding the provisions of subsections (b) and (c) to the contrary, the board may, by resolution, establish requirements and specifications for surveys and appraisals that conform to the prudent lending practices prevalent in the mortgage lending industry.</content><note type="source"><p>Source Note: The provisions of this §175.53 adopted to be effective January 8, 2002, 27 TexReg 286; amended to be effective July 28, 2025, 50 TexReg 4969.</p></note></section><section identifier="/us/state/tx/tac/t40/p5/c175/scB/s175.54"><num value="175.54">§175.54</num><heading>Protection of Security Interests</heading><content>(a) All paperwork associated with the note and lien shall be deposited for safekeeping with the board, or as the board may direct.(b) The security for the board's loan will be provided by:(1) A first lien mortgage with the board as mortgagee, or the board and a participating lending institution joining as mortgagees, each receiving the payment as provided by its note.(2) Hazard insurance on any improvements securing the loan. The policy must name the board loss payee in at least the amount of the board's loan.(c) The board shall adopt credit, underwriting, and appraisal standards that protect the best interest of the program and limit the exposure of the fund to any losses.</content><note type="source"><p>Source Note: The provisions of this §175.54 adopted to be effective January 8, 2002, 27 TexReg 286; amended to be effective March 18, 2008, 33 TexReg 2319; amended to be effective July 28, 2025, 50 TexReg 4969.</p></note></section><section identifier="/us/state/tx/tac/t40/p5/c175/scB/s175.55"><num value="175.55">§175.55</num><heading>Loan Approval</heading><content>(a) After reviewing the appraisal, and any other relevant information, the board shall notify the prospective borrower whether or not it approves the loan application. If the board disapproves a loan application, it shall notify the prospective borrower, in writing, of the reason for the disapproval.(b) The board may approve a loan for a lesser amount than was requested by the prospective borrower. In that event, the prospective borrower shall do one of the following:(1) negotiate an amended purchase price that conforms to the approved loan amount;(2) increase the down payment to include the difference between the purchase price and the approved loan amount; or(3) cancel the loan application.(c) The board reserves the right to refuse to approve any loan application when it deems it protects the best interests of the program to do so.(d) The board may, by resolution, establish general exceptions to the provisions of §175.6(g) of this chapter (relating to Commitment by the Board), pertaining to contingent transactions. These exceptions shall be limited to those transactions described in the Texas Natural Resources Code, Chapter 161, Subchapter K.</content><note type="source"><p>Source Note: The provisions of this §175.55 adopted to be effective January 8, 2002, 27 TexReg 286; amended to be effective November 23, 2003, 28 TexReg 10254; amended to be effective July 28, 2025, 50 TexReg 4969.</p></note></section><section identifier="/us/state/tx/tac/t40/p5/c175/scB/s175.56"><num value="175.56">§175.56</num><heading>Fees, Loan Amount, Interest Rate, and Down Payment</heading><content>(a) In addition to the fees described in §175.17 of this chapter (relating to Fees and Deposits), the board shall collect a fee for the preparation, review, or approval of any document relating to a loan made under this subchapter, including but not limited to the following: (1) notes;(2) deeds of trust;(3) subordination agreements;(4) transfers and/or assignments of liens; or(5) release of liens.(b) Fees and expenses approved by the board may be made a part of the borrower's loan installment payments.(c) The board will specify the terms and conditions of the loan for each transaction.(d) Each loan shall not exceed 30 years in duration.(e) The chairman, in compliance with §175.6 and §175.55 of this chapter, (relating to Commitment by the Board and Loan Approval), shall set the amount of the down payment required of borrowers. This down payment shall be paid to the closing agent at or before closing.</content><note type="source"><p>Source Note: The provisions of this §175.56 adopted to be effective January 8, 2002, 27 TexReg 286; amended to be effective March 18, 2008, 33 TexReg 2319; amended to be effective July 28, 2025, 50 TexReg 4969.</p></note></section><section identifier="/us/state/tx/tac/t40/p5/c175/scB/s175.57"><num value="175.57">§175.57</num><heading>Title Insurance and Closing Requirements</heading><content>(a) The board may designate an attorney or title company in the county where the land is located to serve as a closing agent. The board shall furnish written instructions to the closing agent describing all conditions that must be satisfied before loan funds are released to the seller.(b) The board, by resolutions, shall provide for the selection of persons who shall be authorized to act as a trustee for any mortgage loan made or purchased by the board. The resolutions shall either name specific individuals, or describe classes of individuals, who may act as trustees. The resolutions shall explicitly describe the powers that may be exercised by persons authorized to act as trustees.(c) The borrower must personally sign the loan documents.(d) The board shall be provided a mortgagee's title insurance policy and the borrower must be furnished an owner's title insurance policy. The only exceptions that may be contained in the mortgagee's title insurance policy are those that are acceptable to the board.(e) Notwithstanding any other provision of this chapter to the contrary, all loans made under this subchapter shall be secured by first, or co-first, liens.(f) No fees or expenses in connection with closing a transaction may be charged to the board without its prior written consent. The board may require that a closing agent furnish the board an insured closing letter from its underwriter before the board shall release funds for a transaction.</content><note type="source"><p>Source Note: The provisions of this §175.57 adopted to be effective January 8, 2002, 27 TexReg 286; amended to be effective December 21, 2010, 35 TexReg 11390.</p></note></section><section identifier="/us/state/tx/tac/t40/p5/c175/scB/s175.58"><num value="175.58">§175.58</num><heading>Removal of Material Assets, Releases, and Payment in Full</heading><content>(a) The borrower is liable to the board for any decrease in value of the land due to any sale or removal of timber, rock, gravel, sand, chemicals, or other material assets, the loss of which tends to lower the value of the land.(b) If a borrower wishes to obtain a partial release of lien to clear title to a portion of the land, the borrower shall submit a request in writing to the board. The procedures for granting a partial release are identical to those for obtaining a severance as provided in §175.12 of this chapter (relating to Severances), except that the board will issue a partial release of lien, instead of a deed, for a portion of the tract.(c) When a loan is paid in full, the board will execute a release of lien in favor of the borrower identified in the records of the board.</content><note type="source"><p>Source Note: The provisions of this §175.58 adopted to be effective January 8, 2002, 27 TexReg 286; amended to be effective March 18, 2008, 33 TexReg 2319; amended to be effective July 28, 2025, 50 TexReg 4969.</p></note></section><section identifier="/us/state/tx/tac/t40/p5/c175/scB/s175.59"><num value="175.59">§175.59</num><heading>Easements and Mineral Leases</heading><content>A borrower may grant easements or rights of way, or execute mineral leases over or covering the land being purchased with a loan from the board. The borrower is liable to the board for any decrease in value of the land due to any grant of easement or lease of minerals by the borrower.</content><note type="source"><p>Source Note: The provisions of this §175.59 adopted to be effective January 8, 2002, 27 TexReg 286; amended to be effective March 18, 2008, 33 TexReg 2319; amended to be effective July 28, 2025, 50 TexReg 4969.</p></note></section><section identifier="/us/state/tx/tac/t40/p5/c175/scB/s175.60"><num value="175.60">§175.60</num><heading>Purchasing Loans from Lending Institutions</heading><content>(a) Notwithstanding any provisions of this chapter to the contrary, the board may, by resolution, provide for the purchase of notes, mortgages, deeds of trust, or other liens from lending institutions. In any such resolutions, the board shall, to the maximum extent possible, establish procedures and requirements that are consistent with the prudent lending practices prevalent in the mortgage lending industry.(b) The board, may by resolution, establish a schedule of fees, charges, and interest rates that may be charged by a lending institution in connection with a loan that will be sold to the board.</content><note type="source"><p>Source Note: The provisions of this §175.60 adopted to be effective January 8, 2002, 27 TexReg 286.</p></note></section><section identifier="/us/state/tx/tac/t40/p5/c175/scB/s175.61"><num value="175.61">§175.61</num><heading>Delinquencies, Acceleration and Foreclosures</heading><content>(a) The chairman is authorized to enter into any modification of the debtor's obligation if it is in the best interest of the program.(b) The terms of each note and deed of trust or any other lien document shall determine acceleration and foreclosure requirements and procedures, unless modified under section (a) of this section.(c) The chairman must approve the initiation of all foreclosure proceedings. All foreclosures shall be conducted in strict compliance with applicable federal and state laws and the note and the deed of trust or other lien document, or any modification thereof.</content><note type="source"><p>Source Note: The provisions of this §175.61 adopted to be effective April 20, 2003, 28 TexReg 3068; amended to be effective July 28, 2025, 50 TexReg 4969.</p></note></section><section identifier="/us/state/tx/tac/t40/p5/c175/scB/s175.62"><num value="175.62">§175.62</num><heading>Trustee's Sale</heading><content>(a) The chairman may bid for the land at any trustee's sale for any amount that the chairman deems to be in the best interest of the program. All land purchased by the board at a foreclosure sale shall be resold by private sale according to the practices prevalent in the mortgage industry, or, in the same manner as forfeited land under §175.18 of this chapter (relating to Resale of Forfeited Land). (b) The chairman may collect any deficiencies as allowed by law.(c) "Trustee's sale" means any foreclosure sale under this subchapter.</content><note type="source"><p>Source Note: The provisions of this §175.62 adopted to be effective April 20, 2003, 28 TexReg 3068; amended to be effective March 18, 2008, 33 TexReg 2319; amended to be effective July 28, 2025, 50 TexReg 4969.</p></note></section></subchapter><subchapter identifier="/us/state/tx/tac/t40/p5/c175/scC"><num value="C">SUBCHAPTER C</num><heading>PROCEDURES FOR ALTERNATIVE DISPUTE RESOLUTION</heading><section identifier="/us/state/tx/tac/t40/p5/c175/scC/s175.100"><num value="175.100">§175.100</num><heading>Applicability</heading><content>(a) This subchapter applies to internal and external disputes before the board, including those that may be referred by the State Office of Administrative Hearings. (b) This subchapter supplements the procedures required by the Administrative Procedure Act (APA), Chapter 2001 of the Texas Government Code.(c) In accordance with the Government Dispute Resolution Act, Chapter 2009 of the Texas Government Code, and it is the board's policy that disputes with the board be resolved as fairly and expeditiously as possible. To encourage this policy, the board has adopted the use of ADR. (d) All Alternative Dispute Resolution procedures shall be consistent with the APA and GDRA and Chapter 154 of the Texas Civil Practice and Remedies Code. (e) ADR procedures developed and used by the board do not limit other dispute resolution procedures available for the board.(f) Consistent with this ADR policy, the board shall endeavor to educate its staff and persons who are subject to the board's jurisdiction concerning the availability of ADR to resolve disputes.(g) The use of ADR may not be applied in a manner that denies a person a right granted under other state or federal law including a right to an administrative or judicial hearing that is allowed or mandated by the board or by laws of more general application.(h) Any resolution reached as a result of the ADR procedure should be through the voluntary agreement of the parties.</content><note type="source"><p>Source Note: The provisions of this §175.100 adopted to be effective April 20, 2009, 34 TexReg 2543; amended to be effective July 28, 2025, 50 TexReg 4969.</p></note></section><section identifier="/us/state/tx/tac/t40/p5/c175/scC/s175.101"><num value="175.101">§175.101</num><heading>Definitions</heading><content>The following words and terms, when used in this chapter, shall have the following meanings, unless the context clearly indicates otherwise.(1) Alternative Dispute Resolution (ADR)--A procedure or combination of procedures that uses an impartial third party to assist individuals in voluntarily resolving disputes, including procedures described in Civil Practice and Remedies Code, §§154.023 - 154.027. (2) ADR Coordinator--The board-designated, trained person who performs the ADR-related duties provided for in Texas Natural Resources Code, §161.036.(3) Contested case--Shall have the same meaning as such term is defined in the Administrative Procedure Act (APA), Chapter 2001 of the Texas Government Code. (4) GDRA--The Governmental Dispute Resolution Act, Chapter 2009 of the Texas Government Code. (5) Impartial Third Party (ITP)--A person who meets the qualifications and conditions of the GDRA, §2009.053.(6) Party--Shall have the same meaning as such term is defined in the APA. (7) Person--Shall have the same meaning as such term is defined in the APA. (8) Rule--Shall have the same meaning as such term is defined in the APA. (9) State Agency--Shall have the same meaning as such term is defined in the APA.</content><note type="source"><p>Source Note: The provisions of this §175.101 adopted to be effective April 20, 2009, 34 TexReg 2543; amended to be effective July 28, 2025, 50 TexReg 4969.</p></note></section><section identifier="/us/state/tx/tac/t40/p5/c175/scC/s175.102"><num value="175.102">§175.102</num><heading>Referral of Pending Disputes for ADR</heading><content>The chairman, the ADR Coordinator, or a beneficiary of a board program may seek to resolve an internal or external dispute through any ADR procedure. Such procedures may include, but are not limited to, those applied to resolve matters pending in the state's district courts.</content><note type="source"><p>Source Note: The provisions of this §175.102 adopted to be effective April 20, 2009, 34 TexReg 2543; amended to be effective July 28, 2025, 50 TexReg 4969.</p></note></section><section identifier="/us/state/tx/tac/t40/p5/c175/scC/s175.103"><num value="175.103">§175.103</num><heading>Required Training for ADR Coordinator and Impartial Third Party</heading><content>Eligibility for designation as an ADR Coordinator or appointment as an ITP depends upon the following qualifications being met:(1) completion of a minimum of 40 classroom hours of training in dispute resolution techniques in a course conducted by an alternative dispute resolution system or other dispute resolution approved by the board or; (2) in appropriate circumstances the board may waive the training required in this section if a person has professional training or experience in dispute resolution processes related to a particular matter.</content><note type="source"><p>Source Note: The provisions of this §175.103 adopted to be effective April 20, 2009, 34 TexReg 2543; amended to be effective July 28, 2025, 50 TexReg 4969.</p></note></section><section identifier="/us/state/tx/tac/t40/p5/c175/scC/s175.104"><num value="175.104">§175.104</num><heading>Appointment of ADR Coordinator</heading><content>(a) In the absence of an ADR Coordinator, the chairman shall appoint one as soon as practicable. (b) The ADR Coordinator shall, as soon as practicable after appointment, complete the minimum training standards set forth in the Texas Civil Practice and Remedies Code, §154.052.</content><note type="source"><p>Source Note: The provisions of this §175.104 adopted to be effective April 20, 2009, 34 TexReg 2543; amended to be effective July 28, 2025, 50 TexReg 4969.</p></note></section><section identifier="/us/state/tx/tac/t40/p5/c175/scC/s175.105"><num value="175.105">§175.105</num><heading>Responsibilities of ADR Coordinator</heading><content>The ADR Coordinator shall have the following responsibilities:(1) Establish a method of choosing ITPs who possess the minimum qualifications described in the GDRA, §154.052; (2) Establish a pool of ITPs to resolve contested matters through ADR procedures;(3) Provide information about available ADR processes to board employees, and to both potential and current users of the ADR program; and(4) Maintain necessary board records while maintaining the confidentiality of participants.</content><note type="source"><p>Source Note: The provisions of this §175.105 adopted to be effective April 20, 2009, 34 TexReg 2543; amended to be effective July 28, 2025, 50 TexReg 4969.</p></note></section><section identifier="/us/state/tx/tac/t40/p5/c175/scC/s175.106"><num value="175.106">§175.106</num><heading>Selection and Payment of Impartial Third Parties</heading><content>(a) For each matter referred for ADR procedures, the ADR Coordinator shall assign an ITP selected by the parties from the board's list of potential ITPs unless the parties agree upon the use of a private ITP.(b) A private ITP may be hired for commission of ADR procedures provided that:(1) the parties unanimously agree to the selection and use of a private ITP; and(2) the private ITP agrees to be subject to the direction of the board's ADR Coordinator and to all time limits imposed by the chairman, the ADR Coordinator, the judge, or by statute or agency rule.(c) If a private ITP is used, the costs for the services of the ITP shall be apportioned pro rata among the parties, unless otherwise agreed upon by the parties, and shall be paid directly to the ITP.(d) If the parties select a GLO ITP for ADR procedures, the costs for the services of the ITP shall be apportioned pro rata among the parties, unless otherwise agreed upon by the parties, and shall be paid directly to the ITP.</content><note type="source"><p>Source Note: The provisions of this §175.106 adopted to be effective April 20, 2009, 34 TexReg 2543; amended to be effective July 28, 2025, 50 TexReg 4969.</p></note></section><section identifier="/us/state/tx/tac/t40/p5/c175/scC/s175.107"><num value="175.107">§175.107</num><heading>Responsibilities of Impartial Third Parties</heading><content>(a) The ITP shall complete the minimum training standards set forth in the GDPRA, §154.052, prior to starting any ADR procedure for the board through programs approved by the ADR Coordinator, unless the required training is waived by the ADR Coordinator. (b) The ITP shall have the following responsibilities:(1) to facilitate the ADR procedure; and(2) to encourage and assist the parties in reaching a voluntary settlement of their dispute.</content><note type="source"><p>Source Note: The provisions of this §175.107 adopted to be effective April 20, 2009, 34 TexReg 2543; amended to be effective July 28, 2025, 50 TexReg 4969.</p></note></section><section identifier="/us/state/tx/tac/t40/p5/c175/scC/s175.108"><num value="175.108">§175.108</num><heading>Commencement of the ADR Process and ADR Procedures</heading><content>(a) To initiate the ADR process, a party to a contested matter must submit a written ADR request to the ADR Coordinator. The request must be submitted to the ADR Coordinator with copies sent to any other parties to the dispute.(b) ADR procedures under this subchapter may begin, at the discretion of the ADR Coordinator, at any time after a party to a contested matter submits a written ADR proposal requesting the use of ADR procedures to resolve a dispute with the board. (c) The ADR Coordinator shall provide the chairman a copy of the ADR proposal for review, discuss it with the interested parties, as appropriate, and assess whether ADR would assist in fairly and expeditiously resolving the dispute.(d) If the parties, the chairman, and the ADR Coordinator, cannot agree on whether the ADR procedure should be used or on the particulars of the ADR procedure, the ADR Coordinator will notify the affected parties of that outcome and the proposal will be dismissed without opportunity for resubmission to the ADR Coordinator.(e) The ADR Coordinator will promptly notify all affected parties within ten (10) business days of receiving the ADR proposal, or as soon as reasonably possible if a pertinent or impending deadline is indicated in the ADR proposal, whether or not the dispute will be referred for the ADR process. If the ADR Coordinator determines not to refer the dispute to ADR, the notice shall include the reasons that the dispute was not referred. If the ADR Coordinator determines to refer the dispute to ADR, the notice shall include the starting date for the selected ADR.</content><note type="source"><p>Source Note: The provisions of this §175.108 adopted to be effective April 20, 2009, 34 TexReg 2543; amended to be effective July 28, 2025, 50 TexReg 4969.</p></note></section><section identifier="/us/state/tx/tac/t40/p5/c175/scC/s175.109"><num value="175.109">§175.109</num><heading>Partial Settlement Agreements through ADR</heading><content>When ADR procedures do not result in the full settlement of a contested matter, the parties, in conjunction with the ITP, shall limit the contested issues through the entry of written stipulations. Such stipulations shall be forwarded or formally presented to the judge assigned to conduct the hearing on the merits and shall be included in the hearing record.</content><note type="source"><p>Source Note: The provisions of this §175.109 adopted to be effective April 20, 2009, 34 TexReg 2543.</p></note></section><section identifier="/us/state/tx/tac/t40/p5/c175/scC/s175.110"><num value="175.110">§175.110</num><heading>Complete Settlement Agreements through ADR</heading><content>(a) All parties participating in an ADR procedure are expected to make a good faith effort to reach agreement.(b) All parties participating must have the authority to reach an agreement to make a final recommendation to resolve the dispute.(c) The chairman will abide by an agreed upon resolution to the dispute and either approve the agreement or offer the recommendation to the board, if board authorization is needed.(d) The decision to reach an agreement by all parties is voluntary.(e) Each party to a resolution resulting from ADR must execute a written agreement reflecting the resolution. The agreement is enforceable in the same manner as any other written agreement of the same nature with the state.(f) The chairman must approve a written agreement, to which the board's executive secretary or members are signatories resulting from the ADR procedure and it is subject to the Public Information Act, Chapter 552 of the Texas Government Code.</content><note type="source"><p>Source Note: The provisions of this §175.110 adopted to be effective April 20, 2009, 34 TexReg 2543; amended to be effective July 28, 2025, 50 TexReg 4969.</p></note></section><section identifier="/us/state/tx/tac/t40/p5/c175/scC/s175.111"><num value="175.111">§175.111</num><heading>Confidentiality of Communications in ADR Procedures</heading><content>(a) Except as provided in subsections (c) and (d) of this section, communications, records, conduct and demeanor of an ITP and parties relating to the subject matter made by a party in an ADR procedure, whether before or after the initiation of formal proceedings, is confidential, is not subject to disclosure, and may not be used as evidence in any further proceeding.(b) Any notes or record made of an ADR procedure are confidential, and parties, including the ITP, may not be required to testify in any proceedings relating to or arising out of the matter in dispute or be subject to processes requiring disclosure of confidential information or data relating to or arising out of the matter in dispute.(c) An oral communication or written material used in or made a part of an ADR procedure is admissible or discoverable only if it is admissible or discoverable independent of the procedure.(d) If this section conflicts with other legal requirements for disclosure of communications or materials, the issue of confidentiality may be presented to the judge to determine, in camera, whether the facts, circumstances, and context of the communications or materials sought to be disclosed warrant a protective order or whether the communications or materials are subject to disclosure.(e) The ITP may not, directly or indirectly, communicate with anyone on any aspect of ADR negotiations made confidential by this section unless all the parties consent to the disclosure, or upon issuance of an opinion from the Office of the Attorney General that the evidence is subject to the Public Information Act, Chapter 552 of the Texas Government Code.</content><note type="source"><p>Source Note: The provisions of this §175.111 adopted to be effective April 20, 2009, 34 TexReg 2543; amended to be effective July 28, 2025, 50 TexReg 4969.</p></note></section></subchapter></chapter><chapter identifier="/us/state/tx/tac/t40/p5/c176"><num value="176">CHAPTER 176</num><heading>STATE VETERANS HOMES</heading><subchapter identifier="/us/state/tx/tac/t40/p5/c176/sc"><num value="">SUBCHAPTER </num><heading></heading><section identifier="/us/state/tx/tac/t40/p5/c176/sc/s176.1"><num value="176.1">§176.1</num><heading>Definitions</heading><content>The following words and terms when used in this chapter, shall have the following meanings, unless the context clearly indicates otherwise:(1) Covenants--The bond covenants undertaken by the board in association with the sale of bonds.(2) Fund--The State Veterans Home Fund, which is comprised of the proceeds from the sale of bonds issued for the purpose of acquisition, construction, operation, and maintenance of SVHs, revenues derived from the operation of one or more SVH, and the proceeds from other sources which are used for the acquisition, construction, operation and maintenance of a SVH. (3) Operator--The entity under contract with the board to manage a SVH. (4) Spouse--Means a person of the opposite sex who is a wife or husband.(5) Surviving spouse--A person who satisfies the federal definition of "surviving spouse" contained in by 38 USC §101(3), as modified by the special provision in 38 USC §103, or any successor statutes, as amended from time to time. (6) State Veterans Home (SVH)--A veterans home as defined under the Texas Natural Resources Code, §164.002, that is licensed as a nursing home, and may be licensed as a long term or acute care facility, and falls under the State Veterans Homes Program. (7) USDVA--The United States Department of Veterans Affairs or any successor thereto.</content><note type="source"><p>Source Note: The provisions of this §176.1 adopted to be effective November 24, 1997, 22 TexReg 11092; amended to be effective April 12, 2001, 26 TexReg 2750; amended to be effective March 19, 2008, 33 TexReg 2320; amended to be effective July 28, 2025, 50 TexReg 4972.</p></note></section><section identifier="/us/state/tx/tac/t40/p5/c176/sc/s176.3"><num value="176.3">§176.3</num><heading>Sale of Bonds</heading><content>The procedure for the issuance and sale of bonds will be set by resolution of the board. The chairman and the executive secretary of the board are authorized to work with the bond counsel and financial advisor selected by the board in ascertaining the elements of security permissible under the law, maturities, option provisions, paying agency provisions, and all other matters pertaining to the bonds which affect the bonds' acceptability in the market, to the end that such elements may be incorporated into the bonds and resolution. The chairman, executive secretary of the board, and bond counsel will prepare a draft of the official notice of sale of bonds. After the notice of sale is approved, it will be published, either in full or abbreviated form, in the manner prescribed by law. The board has the right to reject any and all bids received.</content><note type="source"><p>Source Note: The provisions of this §176.3 adopted to be effective November 24, 1997, 22 TexReg 11092; amended to be effective July 28, 2025, 50 TexReg 4972.</p></note></section><section identifier="/us/state/tx/tac/t40/p5/c176/sc/s176.4"><num value="176.4">§176.4</num><heading>Administration of the State Veterans Home Fund</heading><content>(a) The proceeds from each bond sale shall be part of the fund and shall first be used for the following purposes:(1) to satisfy the reserve requirements of the particular covenants associated with the sale; and(2) to set up the initial debt repayment associated with each sale.(b) After the requirements of subsection (a) of this section have been satisfied, the board shall monitor the cash flow requirements of the program and shall administer the fund to:(1) meet all bond repayment requirements; and(2) make money available as needed to construct, equip and/or maintain state veterans homes as provided by Chapter 164 of the Texas Natural Resources Code and this chapter.(c) The board may use money in the fund attributable to bonds issued and sold to pay:(1) expenses incidental and necessary to the sale and delivery of the bonds, including, but not limited to, the following:(A) fees for legal and financial advice;(B) the expense of publishing notice of sale;(C) the expense of printing the bonds;(D) the expense of delivering the bonds, including the costs of travel, lodging, and meals of officers or employees of the board, the state comptroller, and the attorney general, that are necessary in the opinion of the board to effectuate the delivery of bonds;(E) remuneration to any agent employed by the board to pay the principal and interest on the bonds; and(F) any other expenses deemed by the board to be reasonable and necessary;(2) capital expenditures by the operator which involve items not described in the board's contract with the operator and which are not part of the operator's standard services. These additional expenses must not be in conflict with any existing covenants or any board resolutions affecting the sale of bonds or administration of the fund. All such additional expenditures must also be authorized and requested by a resolution of the board.(d) Any money in the fund not immediately needed for the purposes described in subsections (b) and (c) of this section nor immediately committed to paying principal of and interest on the bonds, nor the payment of expenses, may be invested in bonds or obligations as determined by the board. (e) The board may, by resolution, make provisions for the administration of the fund.</content><note type="source"><p>Source Note: The provisions of this §176.4 adopted to be effective November 24, 1997, 22 TexReg 11092; amended to be effective July 28, 2025, 50 TexReg 4972.</p></note></section><section identifier="/us/state/tx/tac/t40/p5/c176/sc/s176.5"><num value="176.5">§176.5</num><heading>Appointment of Operator</heading><content>(a) The board will appoint an operator who will be responsible for maintenance and operation of a TSVH. An operator may be an individual, partnership, corporation, or other business entity, as well as a state or federal agency.(b) The board will set qualifications, requirements, terms and conditions, and all contract specifications to be met by the operator. No appointment of an operator shall be effective until a contract has been awarded and duly executed by the board and the operator. The functions of the operator will be provided for in the contract. These functions shall include, but are not limited to, the following:(1) to manage and operate the TSVH in compliance with all applicable federal, state and local laws, rules, regulations, standards, and policies; (2) to develop, implement, and maintain policies and procedures for all aspects of the management and operation of the TSVH. All such policies and procedures shall be reviewed and approved by the board. All such policies and procedures shall remain the property of the board in the event of cancellation or termination of the contract for any reason; (3) to secure and retain all licenses and certifications required to operate the TSVH as a skilled nursing care facility with an Alzheimer's/dementia care unit or a skilled nursing care facility dedicated exclusively to Alzheimer's/dementia care. The operator shall ensure that all personnel employed at the TSVH are properly licensed or certified for the work they are performing. The operator shall secure and retain such other licenses and certifications as may be required by the board; (4) to be fully responsible for the management and supervision of the daily operations of the home, including the development, implementation, and operation of all necessary administrative systems, including, but not limited to, accounting, personnel, reporting, administrative records, medical records, and purchasing; (5) to provide annual operating statements and budget estimates to the board; (6) to make available at reasonable times and for reasonable periods books, records, and supporting documents kept current by the operator pertaining to the TSVH for purposes of inspecting, monitoring, auditing, or evaluating by the board and its representatives, and representatives of the Texas Department of Health and Human Services, USDVA, the state auditor, the comptroller of public accounts, and other applicable agencies; and(7) to notify the board, immediately following notifications required by law, of any abuse or suspected abuse of a resident, any unexpected or unexplained injury or death of a resident, or any immediate threat to the health or safety of a resident.(c) The contract between the operator and the board shall contain guidelines and standards for assessing the performance of the operator. The contract will also describe the circumstances and conditions under which the board may dismiss the operator. The operator's performance may be subject to an annual review by the board's staff.</content><note type="source"><p>Source Note: The provisions of this §176.5 adopted to be effective November 24, 1997, 22 TexReg 11092; amended to be effective July 28, 2025, 50 TexReg 4972.</p></note></section><section identifier="/us/state/tx/tac/t40/p5/c176/sc/s176.6"><num value="176.6">§176.6</num><heading>Operator Qualifications</heading><content>An operator:(1) may be a person, partnership, corporation, or other business or governmental entity;(2) must be duly organized, validly existing, and in good standing under the laws governing its creation and existence, and must be duly authorized and qualified to transact all business contemplated by these rules, and any contract with the board; (3) must be in compliance with the nondiscrimination provision of the Civil Rights Act of 1964 and the regulations pursuant to it, and the Americans with Disabilities Act; and (4) shall satisfy any other qualification requirements which the board may adopt by resolution.</content><note type="source"><p>Source Note: The provisions of this §176.6 adopted to be effective November 24, 1997, 22 TexReg 11092; amended to be effective July 28, 2025, 50 TexReg 4972.</p></note></section><section identifier="/us/state/tx/tac/t40/p5/c176/sc/s176.7"><num value="176.7">§176.7</num><heading>Admissions Requirements</heading><content>(a) For purposes of this section, the term "veteran" means a person who satisfies the requirements of §175.2(c)(1) of this title (relating to Loan Eligibility Requirements), as amended from time-to-time.(b) To be eligible for admission to a SVH, an applicant must satisfy one of the following:(1) be a veteran who satisfies the USDVA guidelines and regulations relating to the need for nursing home care; (2) is a spouse, or surviving spouse, of a veteran if the spouse is at least eighteen (18) years of age;(3) is a parent, whose child died while serving in the armed forces of the United States, and who has resided in Texas continuously for at least one year immediately before applying for admission; or(4) is a veteran residing out of state who:(A) resides currently at an out-of-state nursing home;(B) desires transfer to a SVH;(C) is otherwise an eligible veteran under this section but for the fact that they reside out-of-state;(D) has not lived in Texas continuously for at least one year immediately before applying for admission to a SVH; and can be accommodated with a space in the desired SVH.(c) The board may establish, by resolution from time-to-time, procedures for processing applications for admission to each SVH. Based on the availability of space, the board may also establish a priority system for admitting applicants according to one or more factors, including, but not limited to:(1) the priority of a veteran over the spouse or parent of a veteran;(2) the necessity to comply with USDVA regulations governing a SVH; (3) whether an applicant meets the eligibility criteria in §175.2, and is thereby eligible for other Board benefits;(4) the date upon which the application for admission was made;(5) whether the applicant's spouse is also an applicant or a current resident of a SVH;(6) a request to transfer a resident from one SVH to another to be nearer to family members;(7) the level of medical treatment and care required by the applicant;(8) the characteristics and extent of financial resources available to the applicant; and(9) such other criteria as the board may determine are in the best interest of the program.</content><note type="source"><p>Source Note: The provisions of this §176.7 adopted to be effective November 24, 1997, 22 TexReg 11092; amended to be effective May 18, 2000, 25 TexReg 4353; amended to be effective April 12, 2001, 26 TexReg 2750; amended to be effective August 4, 2005, 30 TexReg 4335; amended to be effective March 19, 2008, 33 TexReg 2320; amended to be effective December 21, 2010, 35 TexReg 11391; amended to be effective July 28, 2025, 50 TexReg 4972.</p></note></section><section identifier="/us/state/tx/tac/t40/p5/c176/sc/s176.9"><num value="176.9">§176.9</num><heading>Fees and Expenses</heading><content>(a) All fees, expenses and charges to be paid by a resident of a SVH must be approved by the board. The imposition and amount of any fee or charge shall be consistent with or lower than industry standards.(b) Within a reasonable period of time, the board shall either approve or disapprove all fees and expenses to be charged. The operator shall incorporate in its guidelines the maximum fees and expenses which may be charged.</content><note type="source"><p>Source Note: The provisions of this §176.9 adopted to be effective November 24, 1997, 22 TexReg 11092; amended to be effective July 28, 2025, 50 TexReg 4972.</p></note></section></subchapter></chapter><chapter identifier="/us/state/tx/tac/t40/p5/c177"><num value="177">CHAPTER 177</num><heading>VETERANS HOUSING ASSISTANCE PROGRAM AND VETERANS HOME IMPROVEMENT PROGRAM</heading><subchapter identifier="/us/state/tx/tac/t40/p5/c177/sc"><num value="">SUBCHAPTER </num><heading></heading><section identifier="/us/state/tx/tac/t40/p5/c177/sc/s177.1"><num value="177.1">§177.1</num><heading>Definitions</heading><content>The following words and terms when used in this section, shall have the following meanings, unless the context clearly indicates otherwise.(1) Administrator--The entity appointed by the board to assist the board in administering the processing of loan applications under these sections.(2) Chairman--The commissioner of the General Land Office who is also chairman of the board. (3) Covenants--The bond covenants undertaken by the board in association with the sale of bonds.(4) FHA--The Federal Housing Administration of the Department of Housing and Urban Development of the United States of America or any successor thereto.(5) FHLMC--Federal Home Loan Mortgage Corporation or any successor thereto.(6) FNMA--Federal National Mortgage Association or any successor thereto.(7) FSLIC--The Federal Savings and Loan Insurance Corporation. (8) Participating lending institution--Any bank, trust company, savings bank, national banking association, savings and loan association, building and loan association, mortgage banker, mortgage company, credit union, life insurance company, or other financial institution that customarily provides services or aids in the financing of mortgages on single-family residential housing, including a holding company for any of the foregoing, which has sought and received approval to participate in the Program.(9) VA--The United States Department of Veterans Affairs or any successor thereto.(10) VA guaranty--A guaranty of a mortgage loan under the VA Home Loan Guaranty Program.</content><note type="source"><p>Source Note: The provisions of this §177.1 adopted to be effective May 4, 1984, 9 TexReg 2263; amended to be effective October 22, 2000, 25 TexReg 10375; amended to be effective July 28, 2025, 50 TexReg 4973.</p></note></section><section identifier="/us/state/tx/tac/t40/p5/c177/sc/s177.2"><num value="177.2">§177.2</num><heading>Sale of Bonds</heading><content>Procedure for issuance and sale of bonds will be set by resolution of the board. The chairman and the executive secretary of the board are authorized to work with the bond counsel and financial advisor selected by the board in ascertaining the elements of security permissible under the law, maturities, option provisions, paying agency provisions, and all other matters pertaining to the bonds which affect the bonds' acceptability in the market, to the end that such elements may be incorporated into the bonds and resolution. The chairman, executive secretary of the board, and bond counsel will prepare a draft of the official notice of sale of bonds for the approval of the attorney general of Texas and subsequently by the board. After the notice of sale is approved, it will be published, either in full or abbreviated form, in the manner prescribed by law. The board has the right to reject any and all bids received.</content><note type="source"><p>Source Note: The provisions of this §177.2 adopted to be effective May 4, 1984, 9 TexReg 2263.</p></note></section><section identifier="/us/state/tx/tac/t40/p5/c177/sc/s177.3"><num value="177.3">§177.3</num><heading>Administration of Fund</heading><content>(a) The proceeds from each bond sale shall be part of the fund and shall first be used for the following purposes:(1) to satisfy the reserve requirements of the particular covenants associated with each sale; and(2) to set up the initial debt repayment associated with each sale.(b) After the requirements of subsection (a) of this section have been satisfied, the board, with the assistance of the administrator, shall monitor the cash flow requirements of the program and shall administer the fund to:(1) meet all bond repayment requirements; (2) make money available as needed by the program to make or acquire home loans as provided by the Texas Natural Resources Code, (Code) Chapter 162, and this chapter; and(3) make money available as needed by the program to make home improvement loans as provided by § 177.8 of this chapter (relating to Qualifying Homes).(c) Any money in the fund not immediately needed for the purposes described in subsections (a) and (b) of this section, nor immediately committed to paying principal of and interest on the bonds, nor the payment of expenses as provided in the Code, Chapter 162, or this chapter, may be invested in bonds or obligations of the United States or in any other way not in conflict with the covenants or the Texas Constitution and laws of the state until needed for these purposes.(d) The board may use money in the fund attributable to bonds issued and sold to pay:(1) expenses incidental and necessary to the sale and delivery of the bonds, including but not limited to the following:(A) fees for legal and financial advice;(B) the expense of publishing notice of sale of an installment of bonds;(C) the expense of printing the bonds;(D) the expense of delivering the bonds, including the costs of travel, lodging, and meals of officers or employees of the board, the state comptroller, the state treasurer, and the attorney general, that are necessary in the opinion of the board to effectuate the delivery of bonds;(E) remuneration to any agent employed by the board to pay the principal and interest on the bonds; and(F) any other expenses deemed by the board to be reasonable and necessary.(2) expenses and fees of the administrator for any additional services requested by the board which are not described in the board's contract with the administrator as part of the administrator's standard services. These additional services must not be in conflict with any existing covenants or any board resolutions affecting the sale of bonds or administration of the fund. All such additional services must be authorized and requested by a resolution of the board.(e) Money in the fund that is not spent for the purposes provided in the Code, Chapter 162, or this chapter, shall remain in the fund until there is sufficient money to retire fully bonds issued and sold by the board.(f) The board may by resolution make provisions for the administration of the fund. In the event of any conflict between these rules and the provisions of a resolution of the board pertaining to the administration of the fund, the provisions of the board's resolution shall control.</content><note type="source"><p>Source Note: The provisions of this § 177.3 adopted to be effective May 4, 1984, 9 TexReg 2263; amended to be effective August 28, 1985, 10 TexReg 3090; amended to be effective July 28, 2025, 50 TexReg 4973.</p></note></section><section identifier="/us/state/tx/tac/t40/p5/c177/sc/s177.4"><num value="177.4">§177.4</num><heading>Appointment of Administrator</heading><content>(a) The board will set qualifications and requirements, terms, and conditions, and all contract specifications to be met by the administrator. No appointment of an administrator shall be effective until a contract has been awarded by sealed bid and duly executed by the board and the administrator. The functions of the administrator may include, but are not limited to, the following:(1) preparing guidelines for participation in the program by participating lending institutions and distributing these guidelines to all interested parties;(2) preparing loan application forms and information brochures for use by potential veteran loan applicants;(3) reviewing applications by lending institutions to participate in the program and recommending approval or disapproval to the board;(4) maintaining a list of all approved participating lending institutions and updating this list by the first day of each quarter of each year and making this list available upon request to any interested party for the actual cost of reproducing and mailing said list;(5) reviewing title and loan papers for each transaction under these rules and recommending approval or disapproval of them to the board;(6) assuring compliance by participating lending institutions with qualification, eligibility, and loan servicing guidelines and reviewing at least annually the performance of each approved participating lending institution and recommending whether the board's approval should be continued or revoked;(7) overseeing fees and charges made by participating lending institutions;(8) acting as clearinghouse for loan paperwork, including processing of loan payments by veterans;(9) overseeing forfeiture, foreclosure, and collection procedures;(10) preparing the provisions and terms of the contracts between the board and participating lending institutions;(11) consulting with the appropriate state and federal authorities to obtain approval of the program by the VA, FHA, FNMA, and FHLMC;(12) providing all data processing services required by the program; and(13) making available at reasonable times and for reasonable periods books, records, and supporting document kept current by the administrator pertaining to the program for purposes of inspecting, monitoring, auditing, or evaluating by the board, its representatives, and representatives of the Texas State Auditor's Office. (b) The contract between the administrator and the board shall contain guidelines and standards for assessing the performance of the administrator. The contract shall also describe the circumstances and conditions under which the board may dismiss the administrator. The administrator's performance may be subject to an annual review by the board's staff.</content><note type="source"><p>Source Note: The provisions of this §177.4 adopted to be effective May 4, 1984, 9 TexReg 2263; amended to be effective July 28, 2025, 50 TexReg 4973.</p></note></section><section identifier="/us/state/tx/tac/t40/p5/c177/sc/s177.5"><num value="177.5">§177.5</num><heading>Loan Eligibility Requirements</heading><content>(a) The board shall be the final authority in defining and interpreting all eligibility requirements, and whether an applicant has satisfied those requirements. The board may by resolution prescribe the procedures and forms to be used by applicants.(b) For purposes of this program a veteran is a person who satisfies the requirements of §175.2(c)(1) of this title (relating to Loan Eligibility Requirements). The unmarried surviving spouse of a veteran shall be eligible to participate in this program if he or she satisfies the requirements of §175.2(c)(2) of this title. (c) A veteran may be able to obtain more than one housing assistance loan under this chapter, provided that all previous program loans have been repaid in full and that only one home may be financed by a veteran at any time through the program. However, for purposes of this chapter, an eligible veteran may obtain both a purchase money loan and a home improvement loan under the program. An eligible veteran may also receive a loan under the Veterans Land Program. (d) If both spouses are individually eligible to participate in the program, nothing herein shall be construed to prohibit them from applying for a loan to jointly purchase the same home. The board may make a loan for the purchase of the same home by two veterans who are spouses, but only in the event that both spouses together satisfy the loan qualification requirements of the participating lending institution. The total amount of this loan shall not exceed the maximum amount allowable for a home mortgage loan through the VA.</content><note type="source"><p>Source Note: The provisions of this §177.5 adopted to be effective May 4, 1984, 9 TexReg 2263; amended to be effective November 10, 1986, 11 TexReg 4487; amended to be effective June 11, 1990, 15 TexReg 2917; amended to be effective December 10, 1993, 18 TexReg 8797; amended to be effective February 3, 1995, 20 TexReg 355; amended to be effective August 24, 1999, 24 TexReg 6517; amended to be effective October 22, 2000, 25 TexReg 10375; amended to be effective April 12, 2001, 26 TexReg 2752; amended to be effective November 23, 2003, 28 TexReg 10254; amended to be effective July 28, 2025, 50 TexReg 4973.</p></note></section><section identifier="/us/state/tx/tac/t40/p5/c177/sc/s177.6"><num value="177.6">§177.6</num><heading>Application Procedures</heading><content>(a) The administrator shall distribute to participating lenders all application materials required for the program by the board. Participating lending institutions may only charge fees that have been approved by the board. The board may establish by resolution any procedures for obtaining the board's approval of fees.(b) The board shall establish by resolution all policies, procedures, and requirements for the submission and review of loan applications, including the certification of eligibility of the veteran.(c) If the veteran has previously participated in the program, the veteran must have satisfactorily paid in full all prior program loans in order to be eligible to participate in the program again. If the veteran has an active Veterans Land Program loan at the time of application, it must be in good standing.(d) The board may establish by resolution all other procedures and policies relating to the submission, review, processing, approval, and funding of program loans. In doing so, the board shall review the prudent lending practices prevalent in the residential mortgage lending industry and shall follow such practices to the maximum extent practical.</content><note type="source"><p>Source Note: The provisions of this §177.6 adopted to be effective May 4, 1984, 9 TexReg 2263; amended to be effective August 24, 1999, 24 TexReg 6517; amended to be effective October 22, 2000, 25 TexReg 10375.</p></note></section><section identifier="/us/state/tx/tac/t40/p5/c177/sc/s177.7"><num value="177.7">§177.7</num><heading>Qualifying Lending Institutions</heading><content>(a) Any entity wishing to apply to be a participating lending institution may obtain application information and forms from the administrator. The applicant shall submit the completed application and application fee to the administrator who shall review it and recommend approval or disapproval of the application to the board. The board shall consider the recommendation of the administrator and shall notify the applying lending institution of its decision. Approval of the application of a lending institution to participate shall not be withheld unreasonably.(b) No application shall be approved unless the applicant: (1) is duly organized, validly existing, and in good standing under the laws governing its creation and existence and is duly authorized and qualified to originate and service residential housing loans in the State of Texas and transact all business contemplated by this chapter and the Texas Natural Resources Code, Chapter 162;(2) is, at the time of the origination of any conventional mortgage loan, an FNMA or FHLMC-approved seller and servicer of conventional mortgages, or an institution, the deposits of which are insured by FDIC or FSLIC, and will continue to be so approved at all times thereafter, so long as the applicant shall continue to serve in the capacity contemplated by the program;(3) is, at the time of origination of any mortgage loan which has FHA insurance, an FHA-approved mortgagee and an FNMA or FHLMC-approved seller and servicer of FHA-insured mortgages, and will continue to be so approved at all times thereafter, so long as the applicant shall continue to serve in the capacity contemplated by the program;(4) is, at the time of origination of any mortgage loan which has a VA guaranty, an eligible lender for mortgages guaranteed by the VA and an FNMA or FHLMC-approved seller and servicer of VA guaranteed mortgages, and will continue to be so approved at all times thereafter, so long as the applicant shall continue to serve in the capacity contemplated by the program;(5) is in compliance with the nondiscrimination provisions of the Civil Rights Act of 1964 (78 Statutes 252) and the regulations pursuant to such Act;(6) has a delinquency and foreclosure experience for the last three years which does not materially exceed the experience for similar institutions as determined by the administrator; and(7) shall satisfy any other qualification requirements which the board may adopt by resolution from time to time.(c) The board shall review the list of approved participating lending institutions maintained by the administrator no later than March 1 of each year and may request the administrator to make further recommendations concerning previously approved participating lending institutions. The board may, as part of its annual review or at any other time, revoke its approval of a participating lending institution but shall not do so unreasonably.(d) Upon approval of a lending institution to participate in the program, the institution and the board shall execute a contract containing terms formulated by the administrator and approved by the board. The contract's terms shall reflect the prudent lending practices prevalent in the lending industry.</content><note type="source"><p>Source Note: The provisions of this §177.7 adopted to be effective May 4, 1984, 9 TexReg 2263; amended to be effective July 28, 2025, 50 TexReg 4973.</p></note></section><section identifier="/us/state/tx/tac/t40/p5/c177/sc/s177.8"><num value="177.8">§177.8</num><heading>Qualifying Homes</heading><content>(a) The home the veteran wishes to purchase must meet all requirements established by the participating lending institution to whom the veteran has made application.(b) In addition to other qualification requirements, the home must be occupied by the veteran within 60 days of closing and must be maintained as the veteran's principal residence for three consecutive years from date of purchase. The administrator and the participating lending institution servicing the veteran's loan will verify that the three-years residency requirement is satisfied and report any violation to the board. In the event of a violation, the board may increase the interest rate on its loan to a higher rate or may accelerate all principal and interest on its loan. The board may, in its discretion, adopt any other remedy it deems appropriate.(c) The board's loan must be a new mortgage; no refinancing shall be permissible under the program. The home does not have to be of new construction.(d) In addition to any requirements or specifications placed on the type and quality of home by the participating lending institution, the home must be on a permanent foundation that is part of the real estate. "HUD-code manufactured homes," as defined by the Texas Occupations Code (Code), §1201.003, are eligible under the program if they meet FNMA or FHLMC guidelines; however, "mobile homes," as defined by that same section of the Code, are not eligible. Any other type of home will be considered on a case-by-base basis by the administrator under guidelines approved by the board.(e) The home in which a veteran actually resides may be eligible for a home improvement loan if the home and the veteran meet the qualification requirements established by the board for a home improvement loan. The board will adopt guidelines setting forth the requirements for obtaining a home improvement loan through the program, whether FHA Title I or other. The guidelines will be provided to all participating lending institutions. The board shall establish the maximum loan amounts for home improvement loans by resolution.</content><note type="source"><p>Source Note: The provisions of this §177.8 adopted to be effective May 4, 1984, 9 TexReg 2263; amended to be effective August 28, 1985, 10 TexReg 3090; amended to be effective November 29, 1991, 16 TexReg 6649; amended to be effective July 28, 2025, 50 TexReg 4973.</p></note></section><section identifier="/us/state/tx/tac/t40/p5/c177/sc/s177.9"><num value="177.9">§177.9</num><heading>Fees, Expenses, and Interest</heading><content>(a) The board must approve all fees and interest rates charged in connection with the program, by any party. These include, but are not limited to:(1) All fees charged by any party to a veteran receiving a loan under this program must be approved by the board, including fees, expenses, and interest rates charged by the participating lending institution on its portion of the loan to the veteran. Fees and expenses approved by the board may be made a part of the veteran's loan installment payments.(2) All fees and expenses charged to a participating lending institution under this program by the administrator.(b) The board finds that it protects the best interests of the program if all fees, expenses, and interest rates are set by resolutions adopted by the board from time-to-time as it deems advisable.(1) Within a reasonable period of time, the board shall either approve or disapprove any proposed changes to any fees, expenses, and interest rates charged by a participating lending institution.(2) All fees, expenses, and interest rates shall be limited to the maximum extent practical to those that would be collected by the participating lending institution in the normal course of its residential mortgage lending business.(3) The administrator shall incorporate in the program and servicing guide (the "guide") for participating lending institutions provisions for the maximum that may be charged. In the alternative, the administrator shall incorporate in the guide the procedures for computing the maximum fees, expenses, and interest rates which participating lending institutions may charge veterans. The contracts between the board and the participating lending institutions shall incorporate the guide.(4) Violation by a participating lending institution of the board's requirements as to maximum fees, expenses, and interest rates may result in revocation of the board's approval of the lending institution as a participant in the program, or such other remedies as may be available to the board.(c) The board may require that the veteran make a down payment to be paid at closing. The veteran shall satisfy the participating lending institution's requirements as to down payment for the particular type of loan being made by the participating lending institution.(d) Principal and interest that becomes delinquent shall be subject to a penalty fixed by the board on its portion of the loan. The participating lending institution may set late payment penalties as permitted by law on its portion of the loan.</content><note type="source"><p>Source Note: The provisions of this §177.9 adopted to be effective August 12, 2001, 26 TexReg 5840; amended to be effective December 21, 2010, 35 TexReg 11391.</p></note></section><section identifier="/us/state/tx/tac/t40/p5/c177/sc/s177.10"><num value="177.10">§177.10</num><heading>Loan Security</heading><content>(a) An approved loan must be secured by a mortgage, deed of trust, or other lien on the home prior to any disbursement of funds to the participating lending institution by the board. All paperwork associated with the note and lien shall be deposited for safekeeping with the administrator.(b) The security for the board's loan will be provided by:(1) a participation first lien mortgage with the board and the participating lending institution joining as mortgagees, each receiving a share of the mortgage payment in proportion to each's loan, or a first or second lien and deed of trust securing the full amount of the board's loan;(2) mortgage insurance providing for repayment of at least 50% of the total outstanding principal balances of all loans, or repayment of at least 50% of all anticipated losses, based upon the administrator's analysis and forecast of potential losses shown by the actual experience of the mortgage lending industry on similar types of loans. The board may contract with a mortgage insurance company for pooled coverage or with individual companies for insurance on each loan, or the board may elect to be self-insured in part or in whole in order to meet the requirements of the Texas Natural Resources Code, §162.011(d); and (3) hazard insurance on the structure naming the board loss payee in at least the amount of the board's loan.(c) When the board has determined that a transaction under this program has been completed and the board's loan is secured as provided in subsections (a) and (b) of this section, the board shall disburse funds to the participating lending institution for the board's portion of the mortgage.(d) The board may establish a master policy for group insurance which will be made available to all purchasers under this program for payment of the outstanding principal balance of the board's portion of the loan upon the death of the borrower.</content><note type="source"><p>Source Note: The provisions of this §177.10 adopted to be effective May 4, 1984, 9 TexReg 2263; amended to be effective December 21, 2010, 35 TexReg 11391; amended to be effective July 28, 2025, 50 TexReg 4973.</p></note></section><section identifier="/us/state/tx/tac/t40/p5/c177/sc/s177.11"><num value="177.11">§177.11</num><heading>Servicing Loans</heading><content>(a) Payments of principal and interest on the board's loan will be made on a monthly basis directly to the participating lending institution agreeing to service the veteran's loan. The board's portion of this loan will be forwarded to the board in accordance with the contract between the board and the participating lending institution. The installment payments collected by the participating lending institution may include installments on taxes and insurance and other fees and expenses approved by the board.(b) In the event that a veteran becomes delinquent and defaults, it shall be the responsibility of the administrator and the participating lending institution servicing the loan to determine if foreclosure on the loan is necessary. If foreclosure is necessary, the participating lending institution shall initiate foreclosure actions under the provisions of the deed of trust.(c) The participating lending institution shall verify that during the course of the loan the hazard insurance and mortgage repayment insurance are current. In the event of default or occurrence of any condition covered by the insurance, the participating lending institution will notify the insurer and file a claim under the provisions of the applicable policies. The board's portion of the proceeds shall be computed as a percentage of the board's principal balance to the total principal balance. The participating lending institution shall forward to the board its portion of the proceeds under the policy.(d) The veteran may prepay his loan in accordance with the loan documents and in compliance with the requirements of the participating lending institution or the board at any time in whole or in part with no penalty. The veteran must contact the participating lending institution to make arrangements for partial prepayment.(e) The administrator shall incorporate into the guidelines for participating lending institutions and the contracts between the board and the participating lending institutions provisions governing servicing of loans, including procedures for determining default and foreclosure.</content><note type="source"><p>Source Note: The provisions of this §177.11 adopted to be effective May 4, 1984, 9 TexReg 2263; amended to be effective December 21, 2010, 35 TexReg 11391.</p></note></section><section identifier="/us/state/tx/tac/t40/p5/c177/sc/s177.12"><num value="177.12">§177.12</num><heading>Assumptions</heading><content>(a) A loan under this program may be assumed after obtaining approval of the board and the participating lending institution in writing and by complying with the following requirements:(1) The original veteran borrower must have occupied the home as a principal residence for at least three years from the date of purchase;(2) All mature interest, principal, and taxes must have been paid;(3) The party wishing to assume the loan must meet the qualification requirements of the participating lending institution; and (4) The assumption agreement must be on forms approved by the administrator and the board and must be executed by the chairman.(b) The board may in its discretion waive the requirement that the original veteran occupy the home as a principal residence for three consecutive years if it deems a waiver to be in the best interests of the program or upon receiving and approving evidence of one of the following circumstances:(1) death of the veteran purchaser;(2) bankruptcy of the veteran purchaser;(3) financial incapacity of the veteran purchaser; or(4) forced sale of the home due to:(A) divorce and property settlement;(B) move required by change in the employment of the veteran or veteran's spouse; or(C) condemnation of the property through no fault of the veteran.(c) The board may prescribe any forms or methods by which the required evidence shall be submitted to the board. If the veteran shall attempt to violate the three-year limitation on assignments, the board may accelerate all principal and interest on the loan. The board, in its discretion, may adopt any other remedy it deems appropriate. The participating lending institution and the administrator shall monitor to the extent practically possible each loan during its first three years to determine if a violation of the three-year limitation on assumptions or residence occurs.(d) The veteran shall not make any other attempt to sell, convey, rent, or lease the property purchased under this program except in the manner prescribed in this chapter and the Texas Natural Resources Code (Code), Chapter 162. Any attempt to sell, assign, transfer, convey, rent, or lease the property purchased under this program without the express written approval of the board shall be deemed a violation of this chapter and Chapter 162 of the Code and will be subject to the provisions of the Code, §162.016(d).</content><note type="source"><p>Source Note: The provisions of this §177.12 adopted to be effective May 4, 1984, 9 TexReg 2263; amended to be effective July 28, 2025, 50 TexReg 4973.</p></note></section><section identifier="/us/state/tx/tac/t40/p5/c177/sc/s177.13"><num value="177.13">§177.13</num><heading>Rights of Board</heading><content>The board may reject any veteran's loan application and shall not be liable for any loss resulting from such rejection.</content><note type="source"><p>Source Note: The provisions of this §177.13 adopted to be effective May 4, 1984, 9 TexReg 2263; amended to be effective July 28, 2025, 50 TexReg 4973.</p></note></section></subchapter></chapter><chapter identifier="/us/state/tx/tac/t40/p5/c178"><num value="178">CHAPTER 178</num><heading>TEXAS STATE VETERANS CEMETERIES</heading><subchapter identifier="/us/state/tx/tac/t40/p5/c178/sc"><num value="">SUBCHAPTER </num><heading></heading><section identifier="/us/state/tx/tac/t40/p5/c178/sc/s178.1"><num value="178.1">§178.1</num><heading>Definitions</heading><content>The following words and terms, when used in this chapter, shall have the following meanings, unless the context clearly indicates otherwise:(1) Eligible Relative--As defined by the USDVA rules governing the Veterans Cemetery Grants Program, 38 C.F.R §39.10, to include a veteran's spouse, surviving spouse, minor children, and unmarried adult children who were physically or mentally disabled and incapable of self-support.(2) TSVC--A veterans cemetery, as defined under the Texas Natural Resources Code, §164.002 that falls under the Veterans Cemetery Grants Program. (3) USDVA--The United States Department of Veterans Affairs or any successor thereto.(4) Veteran--As defined by 38 U.S.C. §101(2) and 38 C.F.R. §39.2, meaning a person who served in the active military, naval, air, or space service and who died while in service or was discharged or released therefrom under conditions other than dishonorable.</content><note type="source"><p>Source Note: The provisions of this §178.1 adopted to be effective May 23, 2004, 29 TexReg 4894; amended to be effective July 28, 2025, 50 TexReg 4974.</p></note></section><section identifier="/us/state/tx/tac/t40/p5/c178/sc/s178.5"><num value="178.5">§178.5</num><heading>Burial Eligibility Criteria</heading><content>For each TSVC, the board will allow for the interment of veterans and eligible relatives as defined by the USDVA laws and regulations. In addition, the board will allow for the interment of Texas military forces members killed on state active duty or during state training and other duty, as defined in Chapter 437 of the Texas Government Code.</content><note type="source"><p>Source Note: The provisions of this §178.5 adopted to be effective May 23, 2004, 29 TexReg 4894; amended to be effective December 5, 2024, 49 TexReg 9767; amended to be effective July 28, 2025, 50 TexReg 4974.</p></note></section><section identifier="/us/state/tx/tac/t40/p5/c178/sc/s178.6"><num value="178.6">§178.6</num><heading>Fees</heading><content>(a) The board must approve all fees, expenses and charges for interment, disinterment, and related services for a TSVC.(b) A TSVC shall apply no charges for disinterment or related interment services for eligible relatives of veterans.(c) Each TSVC shall seek reimbursement from the USDVA of the plot allowance for interment of veterans meeting USDVA eligibility requirements. A TSVC shall apply no additional charges for interment, disinterment, or related services for veterans.</content><note type="source"><p>Source Note: The provisions of this §178.6 adopted to be effective May 23, 2004, 29 TexReg 4894; amended to be effective April 21, 2016, 41 TexReg 2775; amended to be effective July 28, 2025, 50 TexReg 4974.</p></note></section></subchapter></chapter></part><part identifier="/us/state/tx/tac/t40/p12"><num value="12">PART 12</num><heading>TEXAS BOARD OF OCCUPATIONAL THERAPY EXAMINERS</heading><chapter identifier="/us/state/tx/tac/t40/p12/c361"><num value="361">CHAPTER 361</num><heading>STATUTORY AUTHORITY</heading><subchapter identifier="/us/state/tx/tac/t40/p12/c361/sc"><num value="">SUBCHAPTER </num><heading></heading><section identifier="/us/state/tx/tac/t40/p12/c361/sc/s361.1"><num value="361.1">§361.1</num><heading>Statutory Authority</heading><content>These rules are promulgated under the authority of the Occupational Therapy Practice Act, Title 3, Subtitle H, Chapter 454 of the Texas Occupations Code. These rules do not restate all the provisions of the Occupational Therapy Practice Act. The Board makes decisions in the discharge of its statutory authority without regard to any person's race, creed, color, religion, sex, national origin, disability, or age.</content><note type="source"><p>Source Note: The provisions of this §361.1 adopted to be effective October 11, 1994, 19 TexReg 7712; amended to be effective December 1, 2025, 50 TexReg 7578.</p></note></section></subchapter></chapter><chapter identifier="/us/state/tx/tac/t40/p12/c362"><num value="362">CHAPTER 362</num><heading>DEFINITIONS</heading><subchapter identifier="/us/state/tx/tac/t40/p12/c362/sc"><num value="">SUBCHAPTER </num><heading></heading><section identifier="/us/state/tx/tac/t40/p12/c362/sc/s362.1"><num value="362.1">§362.1</num><heading>Definitions</heading><content>The following words, terms, and phrases when used in this part shall have the following meaning, unless the context clearly indicates otherwise.(1) Accredited Educational Program--An educational institution offering a course of study in occupational therapy that has been accredited or approved by the Accreditation Council for Occupational Therapy Education (ACOTE) of the American Occupational Therapy Association.(2) Act--The Occupational Therapy Practice Act, Title 3, Subtitle H, Chapter 454 of the Texas Occupations Code.(3) AOTA--American Occupational Therapy Association.(4) Applicant--A person who applies for a license to the Texas Board of Occupational Therapy Examiners.(5) Board--The Texas Board of Occupational Therapy Examiners (TBOTE).(6) Client--The entity that receives occupational therapy; also may be known as patient. Clients may be individuals (including others involved in the individual's life who may also help or be served indirectly such as a caregiver, teacher, parent, employer, spouse), groups, or populations (e.g., organizations, communities).(7) Complete Application--Application form with photograph, license fee, jurisprudence examination with at least 70% of questions answered correctly, and all other required documents.(8) Complete Renewal--Contains renewal fee, renewal form with continuing education submission form, home/work address(es), jurisprudence examination with at least 70% of questions answered correctly, and all other required documents.(9) Continuing Education Committee--Reviews and makes recommendations to the Board concerning continuing education requirements and special consideration requests.(10) Coordinator of Occupational Therapy Program--The employee of the Executive Council who carries out the functions of the Texas Board of Occupational Therapy Examiners.(11) Endorsement--The process by which the Board issues a license to a person currently licensed in another state or territory of the United States that maintains professional standards considered by the Board to be substantially equivalent to those set forth in the Occupational Therapy Practice Act and who is applying for a Texas license for the first time.(12) Evaluation--The process of planning, obtaining, documenting, and interpreting data necessary for intervention. This process is focused on finding out what the client wants and needs to do and on identifying those factors that act as supports or barriers to performance.(13) Examination--The Examination as provided for in §454.207 of the Occupational Therapy Practice Act (relating to License Examination). The current Examination is the initial certification examination given by the National Board for Certification in Occupational Therapy (NBCOT).(14) Executive Council--The Executive Council of Physical Therapy and Occupational Therapy Examiners.(15) Executive Director--The employee of the Executive Council who functions as its agent. The Executive Council delegates implementation of certain functions to the Executive Director.(16) Intervention--The process of planning and implementing specific strategies based on the plan of care, which includes the client's desired outcome and evaluation data, and evidence to effect change in the client's occupational performance leading to engagement in occupation to support participation.(17) Investigation Committee--Reviews and makes recommendations to the Board concerning complaints and disciplinary actions regarding licensees, applicants, and entities regulated by the Board.(18) Investigator--The employee of the Executive Council who conducts all phases of an investigation into a complaint filed against a licensee, an applicant, or an entity regulated by the Board.(19) Jurisprudence Examination--An examination covering information contained in the Occupational Therapy Practice Act and Texas Board of Occupational Therapy Examiners Rules. This test is an open book, online examination with multiple choice and/or true-false questions. The passing score is at least 70%.(20) License--Document issued by the Texas Board of Occupational Therapy Examiners that authorizes the practice of occupational therapy in Texas.(21) Medical Condition--A condition of acute trauma, infection, disease process, psychiatric disorders, addictive disorders, or post-surgical status. Synonymous with the term health care condition.(22) NBCOT--National Board for Certification in Occupational Therapy.(23) Non-Licensed Personnel--OT Aide or other person not licensed by this board who provides support services to and requires supervision by occupational therapy practitioners.(24) Non-Medical Condition--A condition where the ability to perform occupational roles is impaired by developmental disabilities, learning disabilities, the aging process, sensory impairment, psychosocial dysfunction, or other such conditions that do not require the routine intervention of a physician.(25) Occupation--Activities of everyday life, named, organized, and given value and meaning by individuals and a culture. Occupation is everything people do to occupy themselves, including looking after themselves, enjoying life, and contributing to the social and economic fabric of their communities.(26) Occupational Therapist (OT)--An individual who holds a license to practice or represent self as an Occupational Therapist in Texas. This definition includes an Occupational Therapist who is designated as an Occupational Therapist, Registered (OTR®).(27) Occupational Therapy Assistant (OTA)--An individual who holds a license to practice or represent self as an Occupational Therapy Assistant in Texas and who is required to be under the general supervision of an OT. This definition includes an Occupational Therapy Assistant who is designated as a Certified Occupational Therapy Assistant (COTA®).(28) Occupational Therapy Plan of Care--A written statement of the planned course of occupational therapy intervention for a client. It must include goals, objectives and/or strategies, recommended frequency and duration, and may also include methodologies and/or recommended activities.(29) Occupational Therapy Practice--Includes:(A) Methods or strategies selected to direct the process of interventions such as:(i) Establishment, remediation, or restoration of a skill or ability that has not yet developed or is impaired.(ii) Compensation, modification, or adaptation of activity or environment to enhance performance.(iii) Maintenance and enhancement of capabilities without which performance in everyday life activities would decline.(iv) Health promotion and wellness to enable or enhance performance in everyday life activities.(v) Prevention of barriers to performance, including disability prevention.(B) Evaluation of factors affecting activities of daily living (ADL), instrumental activities of daily living (IADL), education, work, play, leisure, and social participation, including:(i) Client factors, including body functions (such as neuromuscular, sensory, visual, perceptual, cognitive) and body structures (such as cardiovascular, digestive, integumentary, genitourinary systems).(ii) Habits, routines, roles and behavior patterns.(iii) Cultural, physical, environmental, social, and spiritual contexts and activity demands that affect performance.(iv) Performance skills, including motor, process, and communication/interaction skills.(C) Interventions and procedures to promote or enhance safety and performance in activities of daily living (ADL), instrumental activities of daily living (IADL), education, work, play, leisure, and social participation, including:(i) Therapeutic use of occupations, exercises, and activities.(ii) Training in self-care, self-management, home management and community/work reintegration.(iii) Development, remediation, or compensation of physical, cognitive, neuromuscular, sensory functions and behavioral skills.(iv) Therapeutic use of self, including one's personality, insights, perceptions, and judgments, as part of the therapeutic process.(v) Education and training of individuals, including family members, caregivers, and others.(vi) Care coordination, case management and transition services.(vii) Consultative services to groups, programs, organizations, or communities.(viii) Modification of environments (home, work, school, or community) and adaptation of processes, including the application of ergonomic principles.(ix) Assessment, design, fabrication, application, fitting and training in assistive technology, adaptive devices, and orthotic devices, and training in the use of prosthetic devices.(x) Assessment, recommendation, and training in techniques to enhance functional mobility including wheelchair management.(xi) Driver rehabilitation and community mobility.(xii) Management of feeding, eating, and swallowing to enable eating and feeding performance.(xiii) Application of physical agent modalities, and use of a range of specific therapeutic procedures (such as wound care management; techniques to enhance sensory, perceptual, and cognitive processing; manual therapy techniques) to enhance performance skills.(30) Occupational Therapy Practitioners--Occupational Therapists and Occupational Therapy Assistants licensed by this board.(31) Outcome--The focus and targeted end objective of occupational therapy intervention. The overarching outcome of occupational therapy is engagement in occupation to support participation in context(s).(32) Place(s) of Business--Any facility in which a licensee practices.(33) Practice--Providing occupational therapy as a clinician, practitioner, educator, or consultant to clients located in Texas at the time of the provision of occupational therapy services. Only a person holding a license from this board may practice occupational therapy in Texas, and the site of practice is the location in Texas where the client is located at the time of the provision of services.(34) Rules--Refers to the TBOTE Rules.(35) Screening--A process used to determine a potential need for occupational therapy interventions and educational and/or other client needs. Screening information may be compiled using observation, client records, the interview process, self-reporting, and/or other documentation.(36) Telehealth--A mode of service delivery for the provision of occupational therapy services delivered by an occupational therapy practitioner to a client at a different physical location using telecommunications or information technology. Telehealth refers only to the practice of occupational therapy by occupational therapy practitioners who are licensed by this board with clients who are located in Texas at the time of the provision of occupational therapy services. Also may be known as other terms including but not limited to telepractice, telecare, telerehabilitation, and e-health services.</content><note type="source"><p>Source Note: The provisions of this §362.1 adopted to be effective October 11, 1994, 19 TexReg 7712; amended to be effective January 1, 1996, 20 TexReg 10906; amended to be effective May 8, 1996, 21 TexReg 3714; amended to be effective March 5, 1997, 22 TexReg 1897; amended to be effective November 4, 1997, 22 TexReg 10747; amended to be effective October 25, 1998, 23 TexReg 10911; amended to be effective August 21, 2000, 25 TexReg 8062; amended to be effective October 16, 2000, 25 TexReg 10377; amended to be effective February 12, 2001, 26 TexReg 1346; amended to be effective July 22, 2001, 26 TexReg 5440; amended to be effective December 27, 2001, 26 TexReg 10623; amended to be effective July 22, 2002, 27 TexReg 6545; amended to be effective November 15, 2004, 29 TexReg 10581; amended to be effective May 31, 2007, 32 TexReg 2877; amended to be effective December 21, 2008, 33 TexReg 10189; amended to be effective June 18, 2009, 34 TexReg 3982; amended to be effective October 6, 2013, 38 TexReg 6928; amended to be effective July 1, 2016, 41 TexReg 4046; amended to be effective March 1, 2018, 43 TexReg 901; amended to be effective September 1, 2019, 44 TexReg 4325; amended to be effective June 1, 2022, 47 TexReg 3061.</p></note></section></subchapter></chapter><chapter identifier="/us/state/tx/tac/t40/p12/c363"><num value="363">CHAPTER 363</num><heading>CONSUMER/LICENSEE INFORMATION</heading><subchapter identifier="/us/state/tx/tac/t40/p12/c363/sc"><num value="">SUBCHAPTER </num><heading></heading><section identifier="/us/state/tx/tac/t40/p12/c363/sc/s363.1"><num value="363.1">§363.1</num><heading>Consumer/Licensee Information</heading><content>(a) The board prepares and provides without cost a Consumer Information Sign (in English and Spanish). The sign, or a reasonable facsimile of the sign, must be displayed in a location of public access at the place(s) of business of any board licensee.(b) Board meetings are announced and conducted under the provisions of the Texas Open Meetings Act, Texas Government Code, §551 et seq.(c) The board intends that the public have a reasonable opportunity to speak on issues that are under the jurisdiction of the board. The board reserves the authority to limit the length of public commentary.(d) The licensee is responsible for being knowledgeable of Title 3, Subtitle H, Chapter 454 Occupations Code, the Occupational Therapy Practice Act, and of the Texas Board of Occupational Therapy Examiners' rules.</content><note type="source"><p>Source Note: The provisions of this §363.1 adopted to be effective January 9, 1995, 19 TexReg 10360; amended to be effective July 22, 2002, 27 TexReg 6545.</p></note></section><section identifier="/us/state/tx/tac/t40/p12/c363/sc/s363.2"><num value="363.2">§363.2</num><heading>Petition for the Adoption of a Rule</heading><content>(a) In accordance with Texas Government Code, §2001.021, an interested person may petition the Board for the adoption of a rule. In this section, "interested person" has the meaning as defined in Texas Government Code, §2001.021.(b) The petition must be submitted to the Board and must contain the name and contact information of the interested person and affiliation or organization if any; a description of the rule and the reason for it; the section numbers and titles from the Texas Board of Occupational Therapy Examiners Rules of the rule sections affected if applicable; and the proposed rule text with any added language underlined and any deleted language bracketed. The petition must include a statement of the statutory authority under which the rule is to be adopted and a statement regarding the public benefits anticipated as a result of adopting the rule or the anticipated injury or inequity that could result from the failure to adopt the proposed rule. The petition must be dated and signed by the interested person.(c) The Board shall evaluate the merits of the proposal.(d) In accordance with Texas Government Code, §2001.021, the Board shall respond to the petitioner within 60 days of receipt of the petition. The response shall:(1) advise that rulemaking proceedings will be initiated; or(2) deny the petition, stating the reasons for its denial.(e) If the Board initiates rulemaking procedures in response to a petition, the rule text that the Board proposes may differ from the rule text proposed by the petitioner.(f) Initial petitions for the adoption of a rule shall be presented to and decided by the Board in accordance with the provisions of this section. The Board may refuse to consider any subsequent petition from the same interested person for the adoption of the same or a similar rule submitted within twelve months after the date of the Board's rejection of the initial petition.</content><note type="source"><p>Source Note: The provisions of this §363.2 adopted to be effective January 1, 2016, 40 TexReg 8664.</p></note></section><section identifier="/us/state/tx/tac/t40/p12/c363/sc/s363.3"><num value="363.3">§363.3</num><heading>Negotiated Rulemaking</heading><content>It is the policy of the Board to engage in negotiated rulemaking procedures consistent with Texas Government Code, Chapter 2008, when appropriate.</content><note type="source"><p>Source Note: The provisions of this §363.3 adopted to be effective March 1, 2018, 43 TexReg 901.</p></note></section><section identifier="/us/state/tx/tac/t40/p12/c363/sc/s363.4"><num value="363.4">§363.4</num><heading>Alternative Dispute Resolution</heading><content>It is the policy of the Board to use alternative dispute resolution where appropriate consistent with Texas Government Code, Chapter 2009, and any model guidelines issued by the State Office of Administrative Hearings for the use of alternative dispute resolution by state agencies.</content><note type="source"><p>Source Note: The provisions of this §363.4 adopted to be effective March 1, 2018, 43 TexReg 901.</p></note></section></subchapter></chapter><chapter identifier="/us/state/tx/tac/t40/p12/c364"><num value="364">CHAPTER 364</num><heading>REQUIREMENTS FOR LICENSURE</heading><subchapter identifier="/us/state/tx/tac/t40/p12/c364/sc"><num value="">SUBCHAPTER </num><heading></heading><section identifier="/us/state/tx/tac/t40/p12/c364/sc/s364.1"><num value="364.1">§364.1</num><heading>Requirements for Licensure</heading><content>(a) All applicants for initial Texas licensure shall:(1) submit a completed application form as prescribed by the Board and non-refundable application fee as set by the Executive Council;(2) submit in paper or electronic form a current color photograph that meets the requirements for a U.S. passport. A photograph in electronic form must be of a high-quality resolution comparable to that of a passport photograph in paper form;(3) submit a successfully completed Board jurisprudence examination on the Act and Rules;(4) have completed academic and supervised field work requirements of an accredited educational program in occupational therapy as per §454.203 of the Act (relating to Qualifications for Occupational Therapist or Occupational Therapy Assistant License) or if foreign-trained, have met substantially equivalent academic and supervised field work requirements as per §454.205 of the Act (relating to Foreign-Trained Applicants);(5) submit a complete and legible set of fingerprints in the manner prescribed by the Board for the purpose of obtaining criminal history record information from the Department of Public Safety and the Federal Bureau of Investigation; and(6) either meet the requirements in §364.2 of this title (relating to Initial License by Examination) and apply by examination or meet the requirements in §364.4 of this title (relating to Licensure by Endorsement) and apply by endorsement.(b) The applicant must also meet the requirements in §364.2 of this title and apply by examination if the applicant:(1) has not passed the NBCOT certification examination; or(2) has passed the NBCOT certification examination and(A) is not currently licensed as an occupational therapist or occupational therapy assistant in another state or territory of the U.S.; or(B) if not currently licensed in another state or territory of the U.S., is applying from the U.S. military or a non-licensing state or territory of the U.S. and cannot substantiate occupational therapy employment for at least two years immediately preceding application for a Texas license.(c) The applicant must also meet the requirements in §364.4 of this title and apply by endorsement if the applicant has passed the NBCOT certification examination and:(1) is currently licensed as an occupational therapist or occupational therapy assistant in another state or territory of the U.S.; or(2) if not currently licensed in another state or territory of the U.S., is applying from the U.S. military or a non-licensing state or territory of the U.S. and can substantiate occupational therapy employment for at least two years immediately preceding application for a Texas license.(d) Applicants who are military service members, military veterans, and military spouses.(1) The Board shall credit verified military service, training, or education toward the licensing requirements, other than an examination requirement, with respect to an applicant who is a military service member or military veteran. This paragraph does not apply to an applicant who holds a restricted license issued by another territory or state of the U.S. or has an unacceptable criminal history according to Texas Occupations Code Chapter 53 (relating to Consequences of Criminal Conviction), the Act, or the Rules.(2) The Board shall waive the application fees for a military service member, military veteran, or military spouse who is applying for licensure. (3) Alternative licensing and expedited services for military service members, military veterans, or military spouses who hold a current license in another state.(A) A military service member, military veteran, or military spouse is eligible to apply for licensure by endorsement as per §364.4 of this title if the individual holds a current license issued by another state of the U.S. that is similar in scope of practice to the license in this state, is in good standing with that state's licensing authority, and submits a statement attesting to being in good standing on a form prescribed by the Board. For purposes of this subsection, a military service member, military veteran, or military spouse is in good standing with another state's licensing authority if the individual: (i) holds a license that is current, has not been suspended or revoked, and has not been voluntarily surrendered during an investigation for unprofessional conduct;(ii) has not been disciplined by the licensing authority with respect to the license or person's practice of occupational therapy; and (iii) is not currently under investigation by the licensing authority for unprofessional conduct related to the person's license or occupational therapy.(B) Not later than the 10th business day after the date the Board receives an application from the military service member, military veteran, or military spouse, the Board shall promptly:(i) process the application; and(ii) issue the license to an applicant who has met requirements for licensure.(C) The Board shall maintain a record of each complaint made against a military service member, military veteran, or military spouse to whom the agency issues a license under paragraph (3) of this section and publish at least quarterly on its website the information maintained under this subparagraph, including a general description of the disposition of each complaint.(4) In order to request services under this subsection, the military service member, military veteran, or military spouse must, in a manner prescribed by the Board, identify the services requested, notify the Board of the individual's military affiliation, and submit a copy of the Uniformed Services Military ID card or other appropriate official documentation evidencing current or former military affiliation.(5) In this subsection, "military service member," "military veteran," and "military spouse" have the meaning as defined in Chapter 55, Texas Occupations Code, §55.001.(e) An application for license is valid for one year after the date it is received by the Board. (f) An applicant who submits an application containing false information may be denied a license by the Board.(g) Should the Board reject an application for license, the reasons for the rejection will be communicated in writing to the applicant. The applicant may submit additional information and request reconsideration by the Board. If the applicant remains dissatisfied, a hearing may be requested as specified in the Act.(h) Applicants and new licensees shall refer to Chapter 369 of this title for provisions regarding information changes and verification of temporary or regular license issuance and current licensure.(i) The first regular license is valid from the date of issuance until the last day of the applicant's birth month, with a duration of at least two years.</content><note type="source"><p>Source Note: The provisions of this §364.1 adopted to be effective February 12, 2001, 26 TexReg 1347; amended to be effective July 22, 2001, 26 TexReg 5440; amended to be effective July 22, 2002, 27 TexReg 6545; amended to be effective May 31, 2007, 32 TexReg 2879; amended to be effective September 7, 2009, 34 TexReg 6123; amended to be effective December 2, 2013, 38 TexReg 8681; amended to be effective June 1, 2015, 40 TexReg 3197; amended to be effective January 1, 2016, 40 TexReg 8664; amended to be effective January 1, 2019, 43 TexReg 7911; amended to be effective September 1, 2020, 45 TexReg 5660; amended to be effective December 1, 2025, 50 TexReg 7579.</p></note></section><section identifier="/us/state/tx/tac/t40/p12/c364/sc/s364.2"><num value="364.2">§364.2</num><heading>Initial License by Examination</heading><content>(a) An applicant applying for license by examination must:(1) meet all provisions of §364.1 of this title (relating to Requirements for a License); and(2) pass the NBCOT certification examination for occupational therapists or occupational therapy assistants with a score set by NBCOT. Score reports must be sent directly to the Board by NBCOT.(b) The application for license must be received no later than two years following the date of the passing examination. If the application is received after this time, the applicant must take and pass the NBCOT examination for licensure purposes only. The applicant must request Board approval to take this examination. The score report must be sent directly to the Board by NBCOT.(c) An applicant who fails an examination may take additional examinations by sending in the appropriate, non-refundable fee as set by the Executive Council and a completed re-exam form as prescribed by the Board.(d) Applicants with a history of licensure in occupational therapy in a state or territory of the U.S. If the Board cannot verify the applicant's history of licensure in occupational therapy, including disciplinary action, the applicant must submit a verification of license. The verification must be an original verification sent directly to the Board by the licensing board of the state or territory. Disciplinary action must be reported to the Board.(e) Previous Texas licensees are not eligible for Initial License by Examination.</content><note type="source"><p>Source Note: The provisions of this §364.2 adopted to be effective February 12, 2001, 26 TexReg 1347; amended to be effective July 22, 2001, 26 TexReg 5440; amended to be effective January 9, 2012, 37 TexReg 68; amended to be effective June 1, 2015, 40 TexReg 3197; amended to be effective January 1, 2016, 40 TexReg 8664; amended to be effective September 1, 2020, 45 TexReg 5660; amended to be effective December 1, 2025, 50 TexReg 7579.</p></note></section><section identifier="/us/state/tx/tac/t40/p12/c364/sc/s364.3"><num value="364.3">§364.3</num><heading>Temporary License</heading><content>(a) The Board may only issue a temporary license to an applicant who is taking the NBCOT certification examination for the first time.(b) Temporary Licensure is not available to applicants who have received a license in any state or territory of the U.S. as an occupational therapy practitioner or to applicants applying from the U.S. military or a non-licensing state or territory of the U.S. who have had occupational therapy employment for at least two years preceding application for a Texas license, unless it was as an occupational therapy assistant, and they now meet the requirements for a temporary license as an occupational therapist, or it was as an occupational therapist, and they now meet the requirements for a temporary license as an occupational therapy assistant. In this section, "occupational therapy practitioner" means an individual licensed as an occupational therapist or occupational therapy assistant in any state or territory of the U.S.(c) To be issued a temporary license, the applicant must:(1) meet all provisions of §364.1 of this title (relating to Requirements for a License);(2) meet all provisions of §364.2 of this title (relating to License by Examination);(3) submit the Confirmation of Exam Registration and Eligibility to Examine form from NBCOT, which must be sent directly to the Board by NBCOT and which reflects the eligibility window in which the applicant will take the examination;(4) submit a copy of the receipt showing that an NBCOT score report has been ordered for the Board;(5) submit a completed verification of supervision on a form prescribed by the Board; and(6) submit a completed application form for a temporary license as prescribed by the Board and the non-refundable temporary license fee as set by the Executive Council.(d) If the applicant fails the examination, fails to take the examination during the eligibility window as stated on the Confirmation of Exam Registration and Eligibility to Examine form from NBCOT received pursuant to subsection (c)(3) of this section, or fails to have the score reported, the temporary license is void and must be returned to the Board.(e) An additional temporary license will not be issued.(f) A temporary license shall be valid no longer than 180 days.</content><note type="source"><p>Source Note: The provisions of this §364.3 adopted to be effective February 12, 2001, 26 TexReg 1347; amended to be effective July 22, 2001, 26 TexReg 5440; amended to be effective July 22, 2002, 27 TexReg 6545; amended to be effective September 7, 2009, 34 TexReg 6123; amended to be effective January 9, 2012, 37 TexReg 68; amended to be effective June 1, 2015, 40 TexReg 3197; amended to be effective January 1, 2016, 40 TexReg 8664; amended to be effective September 1, 2020, 45 TexReg 5660; amended to be effective December 1, 2025, 50 TexReg 7579.</p></note></section><section identifier="/us/state/tx/tac/t40/p12/c364/sc/s364.4"><num value="364.4">§364.4</num><heading>Licensure by Endorsement</heading><content>(a) The Board may issue a license by endorsement to applicants who have passed the NBCOT certification examination and are either currently licensed in another state or territory of the U.S. that has licensing requirements substantially equivalent to this state or, if not currently licensed in a state or territory of the U.S., are applying from the U.S. military or a non-licensing state or territory of the U.S. and can substantiate occupational therapy employment for at least two years immediately preceding application for a Texas license. Previous Texas licensees are not eligible for Licensure by Endorsement. An applicant seeking licensure by endorsement must:(1) meet all provisions of §364.1 of this title (relating to Requirements for Licensure);(2) arrange to have NBCOT send directly to the Board the applicant's NBCOT certification examination score report (or for applicants examined prior to 1986, a Verification of Certification form); and(3) submit a verification of license if the Board cannot verify the applicant's history of licensure in occupational therapy, including disciplinary action. The verification must be an original verification sent directly to the Board by the licensing board of the state or territory. Disciplinary action must be reported to the Board. If the applicant is not currently licensed in a state or territory of the U.S. and is applying from the U.S. military or a non-licensing state or territory of the U.S., a completed verification of employment form as prescribed by the Board must be submitted substantiating occupational therapy employment for at least two years immediately preceding application for a Texas license.(b) Provisional License: The Board may grant a Provisional License to an applicant who is applying for licensure by endorsement if there is an unwarranted delay in the submission of required documentation outside the applicant's control. All other requirements for licensure by endorsement must be met. The applicant must also submit the Provisional License fee as set by the Executive Council. The Board may not grant a provisional license to applicants with disciplinary action in their license history or to applicants with pending disciplinary action. The Provisional License will have a duration of 180 days.</content><note type="source"><p>Source Note: The provisions of this §364.4 adopted to be effective February 12, 2001, 26 TexReg 1347; amended to be effective July 22, 2001, 26 TexReg 5440; amended to be effective October 20, 2002, 27 TexReg 9626; amended to be effective February 12, 2004, 29 TexReg 1227; amended to be effective June 18, 2009, 34 TexReg 3982; amended to be effective June 1, 2015, 40 TexReg 3197; amended to be effective September 1, 2020, 45 TexReg 5660; amended to be effective December 1, 2025, 50 TexReg 7579.</p></note></section><section identifier="/us/state/tx/tac/t40/p12/c364/sc/s364.5"><num value="364.5">§364.5</num><heading>Recognition of Out-of-State License of Military Service Members and Military Spouses</heading><content>(a) Notwithstanding any other law, a military service member or military spouse may engage in the practice of occupational therapy without obtaining the applicable occupational therapy license if the service member or spouse currently holds a license similar in scope of practice issued by the licensing authority of another state of the U.S. and is in good standing with that licensing authority.(b) Before engaging in the practice of occupational therapy, the military service member or military spouse must: (1) submit a completed application in the manner prescribed by the Board that includes: (A) a copy of the member's military orders showing relocation to this state;(B) if the applicant is a military spouse, a copy of the military spouse's marriage license; (C) a notarized affidavit affirming under penalty of perjury that:(i) the applicant is the person described and identified in the application; (ii) all statements in the application are true, correct, and complete;(iii) the applicant understands the scope of practice for the license in this state and will not perform outside of that scope of practice; and(iv) the applicant is in good standing in each state in which the applicant holds or has held an occupational therapy license. For purposes of this subsection, a person is in good standing with another state's licensing authority if the person: (I) holds a license that is current, has not been suspended or revoked, and has not been voluntarily surrendered during an investigation for unprofessional conduct;(II) has not been disciplined by the licensing authority with respect to the license or person's practice of occupational therapy; and (III) is not currently under investigation by the licensing authority for unprofessional conduct related to the person's license or occupational therapy.(2) receive notification that the Board recognizes the applicant's out-of-state license.(c) Not later than the 10th business day after the date the Board receives an application under subsection (b)(1) of this section, the Board shall promptly notify the applicant that:(1) the Board recognizes the applicant's out-of-state license;(2) the application is incomplete; or(3) the Board is unable to recognize the applicant's out-of-state license because the Board does not issue a license similar in scope of practice to the applicant's license. (d) The military service member or military spouse shall comply with all other laws and regulations applicable to the practice of occupational therapy in this state, including all other laws and regulations in the Occupational Therapy Practice Act and the Texas Board of Occupational Therapy Examiners Rules. The military service member or military spouse may be subject to revocation of the authorization described by subsection (b)(2) of this section for failure to comply with these laws and regulations and the Board may notify any jurisdictions in which the military service member or military spouse is licensed of the revocation of such.(e) A military service member or military spouse may engage in the practice of occupational therapy under the authority of this section only for the period during which the military service member or, with respect to a military spouse, the military service member to whom the spouse is married is stationed at a military installation in this state.(f) In the event of a divorce or similar event that affects a person's status as a military spouse, the former spouse may continue to engage in the practice of occupational therapy under the authority of this section until the third anniversary of the date the spouse submitted the application required by subsection (b)(1) of this section.(g) During the authorization period described by subsection (b)(2) of this section, the military service member or military spouse must:(1) hold a license similar in scope of practice issued by the licensing authority of another state of the U.S. and be in good standing in each state in which the applicant holds or has held an occupational therapy license; (2) update the Board within 30 days of any changes to information submitted pursuant to subsection (b)(1) of this section; and(3) notify the Board of any judgment or settlement in a malpractice claim or any disciplinary action taken against the licensee by a licensing authority of another territory or state of the U.S. within 30 days after the judgment, settlement, or disciplinary action is signed.(h) With respect to each type of license issued by the Board, the Board will publish on its website the states that issue licenses similar in scope to those issued by the Board.(i) The Board shall maintain a record of each complaint made against a military service member, military veteran, or military spouse who holds an out-of-state license the Board recognizes under this section. The Board shall publish at least quarterly on its website the information maintained under this subsection, including a general description of the disposition of each complaint.(j) In this section, "military service member" and "military spouse" have the meaning as defined in Chapter 55, Texas Occupations Code, §55.001.(k) This section establishes requirements and procedures authorized or required by Chapter 55, Texas Occupations Code, and does not modify or alter rights that may be provided under federal law.</content><note type="source"><p>Source Note: The provisions of this §364.5 adopted to be effective December 1, 2019, 44 TexReg 6899; amended to be effective December 1, 2021, 46 TexReg 7805; amended to be effective December 1, 2023, 48 TexReg 6743; amended to be effective December 1, 2025, 50 TexReg 7579.</p></note></section></subchapter></chapter><chapter identifier="/us/state/tx/tac/t40/p12/c367"><num value="367">CHAPTER 367</num><heading>CONTINUING EDUCATION</heading><subchapter identifier="/us/state/tx/tac/t40/p12/c367/sc"><num value="">SUBCHAPTER </num><heading></heading><section identifier="/us/state/tx/tac/t40/p12/c367/sc/s367.1"><num value="367.1">§367.1</num><heading>Continuing Education</heading><content>(a) The Act mandates licensee participation in a continuing education program for license renewal. Continuing education (CE) is defined as activities that meet the requirements of this chapter. The licensee is solely responsible for keeping accurate documentation of all continuing education and for selecting continuing education that meets the requirements in this chapter.(b) Required Continuing Education Hours.(1) Unless otherwise specified in this chapter, 1 hour of continuing education is equal to 1 contact hour.(2) All licensees must complete a minimum of 24 contact hours every two years during the period of time the license is current in order to renew the license. Licensees must provide proof of completion of contact hours at the Board's request.(3) Training on Human Trafficking. As part of the minimum hours of required continuing education for each renewal, licensees must complete a training course on human trafficking that is approved by the Texas Health and Human Services Commission. Documentation of completion of a training course is a certificate of completion or letter of verification indicating credit awarded. Documentation must identify the licensee by name and include the date and title of the activity; the name of the authorized signer; either the signature of the authorized signer or the official seal, letterhead, or logo of the authorized signer if an area designated for a signature is not included; and the number of hours or contact hours awarded for the activity. When the documentation lists a unit of credit other than hours or contact hours, such as continuing education units (CEUs), professional development units (PDUs), or other units or credits, it must be accompanied by documentation from the continuing education provider or a copy of the Texas Health and Human Services Commission's list of approved human trafficking courses noting the equivalence of the units or credits in terms of hours or contact hours.(A) Pre-Approved Credit and Additional Credit. The completion of one training course per renewal period to meet the training requirement is pre-approved for CE credit up to a maximum of 2 contact hours. Additional CE credit may be earned for a training course exceeding 2 hours if the additional hours meet the requirements of this chapter.(B) Repeated Course. A specific training course completed during one renewal period to meet the training requirement may be completed again during the next renewal period to meet the training requirement for that next renewal. Up to a maximum of 2 contact hours from the repeated course are exempt from subsection (c) of this section and may be applied toward license renewal.(4) Licensees who submit their renewal with all required items prior to the month when their license expires may count CE completed during their license's expiration month for their next renewal period.(c) Each continuing education activity may be counted only one time in two renewal cycles.(d) Acceptable Activities. In order to be eligible for continuing education, activities must either be pre-approved activities or meet the requirements for other acceptable activities.(1) Pre-Approved Activities.(A) Course Approved by the Texas Health and Human Services Commission on Human Trafficking. Up to a maximum of two hours of CE credit are pre-approved for a training course on human trafficking as provided under subsection (b)(3)(A) of this section (relating to Pre-Approved Credit and Additional Credit).(B) Activities Approved or Offered by the American Occupational Therapy Association (AOTA) or the Texas Occupational Therapy Association (TOTA).(i) Professional development activities approved or offered by AOTA or TOTA are preapproved for CE credit for license renewal. However, a human trafficking training course approved or offered by AOTA or TOTA may not be used to satisfy the requirements of subsection (b)(3) of this section (relating to Training on Human Trafficking) unless it is also approved by the Texas Health and Human Services Commission, as described under that subsection.(ii) Documentation shall include a certificate of completion, letter of verification, or transcript. Documentation must identify the licensee by name and include the date and title of the activity; the name of the authorized signer; either the signature of the authorized signer or the official seal, letterhead, or logo of the authorized signer if an area designated for a signature is not included; and the number of hours or contact hours awarded for the activity. Documentation for activities approved or offered by AOTA may include AOTA CEUs on the documentation instead of hours or contact hours; for such documentation, a licensee shall multiply the AOTA CEUs by ten in order to determine the equivalence in terms of contact hours. Examples: .1 AOTA CEU equals 1 contact hour and .25 AOTA CEUs equals 2.5 contact hours. When the documentation lists a unit of credit other than hours, contact hours, or AOTA CEUs, such as other continuing education units (CEUs), professional development units (PDUs), or other units or credits, it must be accompanied by documentation from the continuing education provider noting the equivalence of the units or credits in terms of hours or contact hours.(iii) The Board will evaluate the continuation of its approval of AOTA's and TOTA's educational activities at least every five years.(2) Other Acceptable Activities. In order to be eligible for CE, activities that are not pre-approved must meet further requirements in §367.2 of this title (relating to Other Acceptable Activities).</content><note type="source"><p>Source Note: The provisions of this §367.1 adopted to be effective October 11, 1994, 19 TexReg 7714; amended to be effective January 1, 1996, 20 TexReg 10907; amended to be effective February 2, 1999, 24 TexReg 606; amended to be effective February 3, 2000, 25 TexReg 818; amended to be effective August 21, 2000, 25 TexReg 8063; amended to be effective July 22, 2001, 26 TexReg 5441; amended to be effective January 1, 2003, 27 TexReg 12015; amended to be effective October 27, 2003, 28 TexReg 9291; amended to be effective August 29, 2006, 31 TexReg 6801; amended to be effective May 31, 2007, 32 TexReg 2880; amended to be effective February 25, 2008, 33 TexReg 1603;amended to be effective February 14, 2013, 38 TexReg 676; amended to be effective October 1, 2015, 40 TexReg 5802; amended to be effective July 1, 2016, 41 TexReg 4048; amended to be effective June 1, 2017, 42 TexReg 2738; amended to be effective September 1, 2019, 44 TexReg 4325; amended to be effective September 1, 2020, 45 TexReg 5661; amended to be effective March 1, 2022, 47 TexReg 794; amended to be effective June 1, 2024, 49 TexReg 3582.</p></note></section><section identifier="/us/state/tx/tac/t40/p12/c367/sc/s367.2"><num value="367.2">§367.2</num><heading>Other Acceptable Activities</heading><content>(a) Except for the pre-approved activities described under §367.1(d)(1) of this title (relating to Continuing Education), in order to be eligible for continuing education, activities must meet the following requirements.(1) Acceptable Content. Activities must be professional development activities that ensure the health, safety, and welfare of the public and directly concern the maintenance or enhancement of knowledge and proficiencies relevant to occupational therapy practice or the pedagogy, education, ethics, or theory development of occupational therapy.(2) Categories of Activities. Activities must fall under one or more of the categories described under subsection (b) of this section (relating to Categories of Other Acceptable Activities).(3) Unacceptable Activities. Activities may not be unacceptable activities. Unacceptable professional development activities not eligible for continuing education include but are not limited to:(A) Any non-instructional time frames such as breaks, meals, introductions, and pre/post testing.(B) Business meetings.(C) Exhibit hall attendance.(D) Activities that provide information about the work setting's philosophy, policies, or procedures or educate employees about a specific work setting.(E) Activities that concern business development, general professional behaviors/standards, or customer service.(F) Activities that concern the self-promotion of the provider's or licensee's programs, products, or services.(G) Activities that concern general topics such as social work; defensive driving; water safety; team building; Graduate Record Examinations (GRE)®, Graduate Management Admissions Test™ (GMAT), and Medical College Admission Test® (MCAT) preparation; general foreign languages; disposal of hazardous waste; patient privacy/rights or abuse of patients; cardiopulmonary resuscitation (CPR); First Aid; Health Insurance Portability and Accountability Act (HIPAA); and Family Educational Rights and Privacy Act (FERPA).(b) Categories of Other Acceptable Activities.(1) Formal Academic Courses from an Occupational Therapy Program.(A) Completion of course work at or through an accredited college or university. No maximum. 3 contact hours for each credit hour of a course with a grade of A, B, C, or P (Pass). Examples: A 3 credit course counts for 9 contact hours and a 4 credit course counts for 12 contact hours. Documentation shall include a transcript from the accredited college or university. Documentation must include the name of the licensee, accredited college or university, and program and the titles, number of credit hours, and dates of the courses. When semesters are listed on the documentation instead of dates, it must be accompanied by documentation from the accredited college or university showing the dates of the semesters.(B) Development of a course or courses at or through an accredited college or university may be counted for up to a maximum of 10 contact hours. Documentation shall include a letter from the Program Director that attests to the licensee's development of the course and includes the name of the school, academic program, and course and the name and signature of the Program Director, and an attestation by the licensee of the dates and duration of the development activities completed.(2) Courses or Training Programs. CE credit may be earned for in-service educational programs, training programs, institutes, seminars, workshops, facility-based courses, internet-based courses, conference sessions, and home-study courses with specified learning objectives. Hour for hour credit on program content only, no maximum. Documentation shall include a certificate of completion, letter of verification, transcript, or sign-in/attendance sheet. Documentation must identify the licensee by name and include the date and title of the activity; the name of the authorized signer; either the signature of the authorized signer or the official seal, letterhead, or logo of the authorized signer if an area designated for a signature is not included; and the number of hours or contact hours awarded for the activity. When the documentation lists a unit of credit other than hours or contact hours, such as continuing education units (CEUs), professional development units (PDUs), or other units or credits, it must be accompanied by documentation from the continuing education provider noting the equivalence of the units or credits in terms of hours or contact hours.(3) Development of Publications or Software, or Grant/Research Activities. Documentation shall include an attestation by the licensee of the dates and duration of the development or grant/research activities completed. For publications/software, documentation shall also include a copy of the actual publication/software or a letter of verification documenting acceptance for publication or distribution. For grant/research proposals, documentation shall also include the title page and receipt of proposal.(A) Scholarly Works in Peer-Reviewed Journals.(i) Primary or second author, up to a maximum of 15 contact hours.(ii) Other author, consultant, reviewer, or editor, up to a maximum of 5 contact hours.(B) Grant or Research Proposals Accepted for Consideration.(i) Principal investigator or co-principal investigator, up to a maximum of 10 contact hours.(ii) Consultant or reviewer, up to a maximum of 4 contact hours.(C) Books.(i) Primary author or book editor, up to a maximum of 15 contact hours.(ii) Second or other author, up to a maximum of 7 contact hours.(iii) Consultant or reviewer, up to a maximum of 5 contact hours.(D) Book Chapters or Monographs.(i) Primary author, up to a maximum of 7 contact hours.(ii) Second or other author, consultant, reviewer, or editor, up to a maximum of 2 contact hours.(E) Author, Consultant, Reviewer, or Editor of other Practice Related Publications such as Newsletters, Blogs, and Trade Magazines. Up to a maximum of 2 contact hours.(F) Developer of Practice Related or Instructional Software Designed to Advance the Professional Skills of Others (not for proprietary use). Up to a maximum of 15 contact hours.(4) Presentations by Licensee. Documentation shall include verification of presentation and must identify the presenter by name and include the date, title, and number of hours of the presentation; the type of presentation (e.g., 2 hour poster, 3 hour workshop); the name of the authorized signer; and either the signature of the authorized signer or the official seal, letterhead, or logo of the authorized signer if an area designated for a signature is not included. Any presentation may be counted only once.(A) Professional Presentations, e.g. in-services, workshops, institutes. Hour for hour credit. Up to a maximum of 10 contact hours.(B) Community/Service Organization Presentations. Hour for hour credit. Up to a maximum of 10 contact hours.(C) The development of professional presentations and community/service organization presentations may be counted toward the maximum credit available for the presentation type. Documentation shall include an attestation by the licensee of the development activities completed, including the date and duration of each. The development of any presentation may be counted only once.(5) Supervision of Students completing an Accredited Educational Program or Re-Entry Course. Up to a maximum of 10 contact hours may be earned for student supervision per renewal period.(A) Fieldwork Level 1 and 2 Supervision.(i) Supervision of Level 1 Fieldwork Students. Up to a maximum of .025 contact hours may be earned for each hour of supervision provided to a student. Examples: A licensee may earn up to a maximum of 1 contact hour for 40 hours or 2 contact hours for 80 hours of supervision provided to a student.(ii) Supervision of Level 2 Fieldwork Students.(I) Up to a maximum of .75 contact hours may be earned for each week of supervision provided to a student. Examples: A licensee may earn up to a maximum of 6 contact hours for 8 weeks or 9 contact hours for 12 weeks of supervision provided to a student.(II) Licensees may divide credit for a fieldwork rotation with another supervisor based on the supervision provided by each.(iii) Documentation shall include verification provided by the school and must identify the licensee by name and include the name of the student and school; level of fieldwork; dates of fieldwork, in addition to total hours for Level 1 students; the name of the authorized signer; and either the signature of the authorized signer or the official seal, letterhead, or logo of the authorized signer if an area designated for a signature is not included. Documentation for a licensee who divides a fieldwork rotation shall also include an attestation by the licensee of the dates of supervision.(B) Student Project Supervision.(i) Up to a maximum of .025 contact hours may be earned for each hour of supervision provided to a student completing a supervised project for the accredited educational program. Examples: A licensee may earn up to a maximum of 1 contact hour for 40 hours or 2 contact hours for 80 hours of supervision provided to a student.(ii) Documentation shall include the following:(I) verification provided by the school. The documentation must identify the licensee by name and include the name of the student, school, and academic program; dates of the semester for which the project was completed; the name of the authorized signer; and either the signature of the authorized signer or the official seal, letterhead, or logo of the authorized signer if an area designated for a signature is not included; and(II) an attestation signed by the licensee and the student or school attesting to the dates and hours of supervision and the activities completed.(C) Supervision of Students completing Fieldwork for a Re-Entry Course through an Accredited College or University.(i) Up to a maximum of .75 contact hours may be earned for each week of supervision provided to a student. Examples: A licensee may earn up to a maximum of 3 contact hours for 4 weeks or 6 contact hours for 8 weeks of supervision provided to a student.(ii) Licensees may divide credit for a fieldwork rotation with another supervisor based on the supervision provided by each.(iii) Documentation shall include verification provided by the school and must identify the licensee by name and include the name of the student, school, and re-entry program; the dates and total hours of the fieldwork; the name of the authorized signer; and either the signature of the authorized signer or the official seal, letterhead, or logo of the authorized signer if an area designated for a signature is not included. Documentation for a licensee who divides a fieldwork rotation shall also include an attestation by the licensee of the dates of supervision.(6) Mentorship.(A) Participation as a mentor or mentee for the purpose of the development of occupational therapy skills by a mentee under the guidance of a mentor skilled in a particular occupational therapy area. Both the mentor and mentee must hold a regular OT or OTA license in a state or territory of the U.S.(B) Documentation shall include a signed mentorship agreement between a mentor and mentee that outlines specific goals and objectives and designates the plan of activities that are to be met by the mentee; the names of both mentor and mentee and their license numbers and issuing states; an activity log that corresponds to the mentorship agreement and lists dates and hours spent on each objective-based activity; a final evaluation of the outcomes of the mentorship agreement completed by the mentor; and a final evaluation of the outcomes of the mentorship agreement completed by the mentee.(C) Participation as a Mentee. 1 contact hour may be earned for each 3 hours spent on activities as a mentee directly related to the achievement of goals and objectives up to a maximum of 15 contact hours.(D) Participation as Mentor. 1 contact hour may be earned for each 5 hours spent on activities as a mentor up to a maximum of 10 contact hours.(7) Volunteer Activities for Published Outcomes. CE credit may be earned for participation in volunteer activities related to occupational therapy, including service on a committee, board, or commission of a state occupational therapy association, AOTA, or NBCOT, for the purpose of tangible, published outcomes, not for proprietary use, such as official documents, publications, and official reports. Up to a maximum of 10 contact hours. Documentation shall include an attestation by the licensee of the activities, including the date and duration of each, in addition to a copy of the actual publication or official document/report that reflects the licensee's name or verification from the entity attesting to the individual's contribution. A verification must include the name of the authorized signer and either the signature of the authorized signer or the official seal, letterhead, or logo of the authorized signer if an area designated for a signature is not included.(8) NBCOT Navigator® Activities. CE credit may be earned for the completion of NBCOT Navigator activities. For such activities, 1 NBCOT CAU is the equivalent of 1 contact hour. No maximum. Documentation is a certificate of completion or letter of verification. Documentation must identify the licensee by name and include the date and title of the activity; the name of the authorized signer; either the signature of the authorized signer or the official seal, letterhead, or logo of the authorized signer if an area designated for a signature is not included; and the number of hours, contact hours, or CAUs awarded for the activity. When the documentation lists a unit of credit other than hours, contact hours, or CAUs, such as continuing education units (CEUs), professional development units (PDUs), or other units or credits, it must be accompanied by documentation from NBCOT noting the equivalence of the units or credits in terms of hours or contact hours. Self-reflections and self-assessments, reading list and research portal activities, professional development plans, or similar activities are not eligible for CE credit.(9) Independent Studies. Up to a maximum of 10 contact hours may be earned for the completion of independent studies of published materials. Hour for hour credit on the completion of objective-based activities comprised of the listening to or the reading or viewing of materials. Documentation shall include a study plan outlining the specific goals and objectives of the study and an activity log corresponding to such with the dates and hours spent on each objective-based activity; the titles, publication dates, and media types (ex: journal article, book, video) of the materials; a synopsis of the materials and their implications for occupational therapy; and a final evaluation of the outcomes of the study.(10) Any deviation from the continuing education categories will be reviewed on a case by case basis by the Coordinator of Occupational Therapy or by the Continuing Education Committee. A request for special consideration must be submitted in writing a minimum of 60, though no more than 270, days prior to expiration of the license.</content><note type="source"><p>Source Note: The provisions of this §367.2 adopted to be effective July 22, 2001, 26 TexReg 5441; amended to be effective August 29, 2006, 31 TexReg 6801; amended to be effective May 31, 2007, 32 TexReg 2880; amended to be effective June 18, 2009, 34 TexReg 3983; amended to be effective March 21, 2010, 35 TexReg 2313; amended to be effective June 7, 2012, 37 TexReg 4068; amended to be effective February 14, 2013, 38 TexReg 676; amended to be effective December 2, 2013, 38 TexReg 8682; amended to be effective September 28, 2014, 39 TexReg 7782; amended to be effective June 1, 2015, 40 TexReg 3198; amended to be effective July 1, 2016, 41 TexReg 4048; amendedto be effective June 1, 2017, 42 TexReg 2738; amended to be effective March 1, 2018, 43 TexReg 901; amended to be effective September 1, 2019, 44 TexReg 4325; amended to be effective March 1, 2022, 47 TexReg 794; amended to be effective June 1, 2024, 49 TexReg 3582.</p></note></section><section identifier="/us/state/tx/tac/t40/p12/c367/sc/s367.3"><num value="367.3">§367.3</num><heading>Continuing Education Audit</heading><content>(a) The Board shall select for audit a random sample of licensees. The audit will cover a period for which the licensee has already completed the continuing education requirement.(b) Licensees randomly selected for the audit must provide to the Board appropriate documentation within 30 days of notification.(c) The licensee is solely responsible for keeping accurate documentation of all continuing education requirements. Continuing education documentation must be maintained for auditing purposes for four years from the end of the expiration month of the corresponding renewal period or for a late renewal or a restoration, for four years from the end of the month when the late renewal or restoration was completed.(d) Knowingly providing false information or failure to respond during the audit process or the renewal process is grounds for disciplinary action.</content><note type="source"><p>Source Note: The provisions of this §367.3 adopted to be effective July 22, 2001, 26 TexReg 5441; amended to be effective August 29, 2006, 31 TexReg 6801; amended to be effective February 14, 2013, 38 TexReg 676; amended to be effective September 28, 2014, 39 TexReg 7782; amended to be effective October 1, 2015, 40 TexReg 5802; amended to be effective July 1, 2016, 41 TexReg 4048; amended to be effective September 1, 2019, 44 TexReg 4325; amended to be effective March 1, 2022, 47 TexReg 794; amended to be effective June 1, 2024, 49 TexReg 3582.</p></note></section><section identifier="/us/state/tx/tac/t40/p12/c367/sc/s367.4"><num value="367.4">§367.4</num><heading>Process for Selecting a Peer Organization to Evaluate and Approve Continuing Education Courses</heading><content>If the Board chooses to authorize a license holder peer organization in Texas to evaluate and approve continuing education courses:(1) The Board will conduct a request for proposals and bid process to select an organization, and(2) The Board will request bids and proposals at least once every four years.</content><note type="source"><p>Source Note: The provisions of this §367.4 adopted to be effective March 1, 2018, 43 TexReg 901.</p></note></section></subchapter></chapter><chapter identifier="/us/state/tx/tac/t40/p12/c368"><num value="368">CHAPTER 368</num><heading>OPEN RECORDS</heading><subchapter identifier="/us/state/tx/tac/t40/p12/c368/sc"><num value="">SUBCHAPTER </num><heading></heading><section identifier="/us/state/tx/tac/t40/p12/c368/sc/s368.1"><num value="368.1">§368.1</num><heading>Open Records</heading><content>(a) Open Records Requests. Inspection of Public Records under the Texas Public information Act, Texas Government Code Chapter 552, provides that public information is available for public inspection during normal business hours except investigative files and other records of the Board made confidential by law. In addition, the exceptions to disclosure in Texas Government Code Chapter 552 or other state or federal statutes may protect certain information. This rule is promulgated pursuant to Texas Government Code Chapter 552 to establish a records review process that is efficient, safe, and timely to the public and to the agency.(1) Requests must be in writing and reasonably identify the records requested.(2) Records access will be by appointment only.(3) Records access is available only during the regular business hours of the agency.(4) A review of public information may be by physical access or by duplication at the requestor's option.(5) When the safety of any public record is at issue, physical access may be denied and the records will be provided by duplication as previously described.(6) Confidential files will not be made available for inspection or for duplication except under certain circumstances, e.g., court order.(7) All open records request appointments will be referred to the Executive Director or the Executive Director's designee before complying with a request.(8) The open records coordinator for the agency is the Executive Director and the alternate is the Executive Director's designee.(b) Charges for Copies of Public Records. The Board will calculate and collect charges in accordance with Texas Government Code Chapter 552 and rules promulgated by the Attorney General under Texas Government Code §552.262.(c) The Board may waive these charges if there is a public benefit. The Executive Director or the Executive Director's designee is authorized to determine whether a public benefit exists on a case-by-case basis.</content><note type="source"><p>Source Note: The provisions of this §368.1 adopted to be effective October 11, 1994, 19 TexReg 7715; amended to be effective December 1, 2023, 48 TexReg 6745.</p></note></section></subchapter></chapter><chapter identifier="/us/state/tx/tac/t40/p12/c369"><num value="369">CHAPTER 369</num><heading>DISPLAY OF LICENSES</heading><subchapter identifier="/us/state/tx/tac/t40/p12/c369/sc"><num value="">SUBCHAPTER </num><heading></heading><section identifier="/us/state/tx/tac/t40/p12/c369/sc/s369.1"><num value="369.1">§369.1</num><heading>Display of Licenses</heading><content>(a) Licenses must be displayed in accordance with the Act, §454.214.(b) The original license must be prominently displayed in the licensee's principal place of business as designated by the licensee. Reproduction of the original license is only authorized for institutional file purposes and not for public display.(c) A licensee may provide occupational therapy services according to the terms of the license upon online verification of current licensure and license expiration date from the Board's license verification web page. (d) A licensee shall not make any alteration(s) on a license.(e) The Board may issue a copy of a license to replace one lost or destroyed upon receipt of a completed form as prescribed by the Board and the non-refundable fee as set by the Executive Council. The Board may issue a replacement copy of a license to reflect a name change upon receipt of a completed form as prescribed by the Board, the non-refundable fee as set by the Executive Council, and a copy of the legal document (such as a marriage license, court decree, or divorce decree) evidencing the name change.</content><note type="source"><p>Source Note: The provisions of this §369.1 adopted to be effective October 11, 1994, 19 TexReg 7715; amended to be effective July 22, 2002, 27 TexReg 6546; amended to be effective June 10, 2012, 37 TexReg 4068; amended to be effective October 1, 2015, 40 TexReg 5802; amended to be effective December 1, 2016, 41 TexReg 9163; amended to be effective December 1, 2025, 50 TexReg 7580.</p></note></section><section identifier="/us/state/tx/tac/t40/p12/c369/sc/s369.2"><num value="369.2">§369.2</num><heading>Changes of Name or Contact Information</heading><content>(a) A licensee or applicant shall notify the Board in writing of changes in name, phone number, business phone number, residential address, business address, mailing address, and/or email address within 30 days of such change(s). Applicants and temporary licensees, in addition, shall notify the Board in writing of changes of supervisor within 30 days of such change(s). A copy of the legal document (such as a marriage license, court decree, or divorce decree) evidencing a change in name must be submitted by the licensee or applicant with any written notification of a change in name. To request a replacement copy of the license to reflect a name change, refer to §369.1 of this title (relating to Display of Licenses).(b) Failure to provide the changes requested in subsection (a) of this section may cause a licensee to be subject to disciplinary action.</content><note type="source"><p>Source Note: The provisions of this §369.2 adopted to be effective October 11, 1994, 19 TexReg 7715; amended to be effective January 1, 1996, 20 TexReg 10907; amended to be effective October 1, 2015, 40 TexReg 5802; amended to be effective June 1, 2019, 44 TexReg 2464; amended to be effective June 1, 2022, 47 TexReg 3063; amended to be effective December 1, 2023, 48 TexReg 6745.</p></note></section><section identifier="/us/state/tx/tac/t40/p12/c369/sc/s369.3"><num value="369.3">§369.3</num><heading>Use of Titles</heading><content>(a) Licensed occupational therapists shall use the title occupational therapist or the abbreviation OT. Occupational Therapist, Registered is an alternate title for occupational therapist and OTR® is an alternate abbreviation for OT if individuals who are licensed by this board take the responsibility for ensuring that they are qualified to use such by maintaining certification through NBCOT.(b) Licensed occupational therapy assistants shall use the title occupational therapy assistant or the abbreviation OTA. Certified Occupational Therapy Assistant is an alternate title for occupational therapy assistant and COTA® is an alternate abbreviation for OTA if individuals who are licensed by this board take the responsibility for ensuring that they are qualified to use such by maintaining certification through NBCOT.(c) No other titles or abbreviations are conferred for a license from this board.(d) The use of the title doctor is governed by §454.007 of the Act (relating to Use of Title of Doctor).(e) The titles and abbreviations described by subsections (a) and (b) of this section must precede any other titles, abbreviations, academic degrees, or certifications (example: John Doe, OT, CHT or Jane Doe, OTR, PhD) with the following exception: if an occupational therapy practitioner is practicing in a higher education setting or is signing as an author for a publication that requires a recognized publication format, then the titles or abbreviations described by subsections (a) or (b) of this section may follow other titles, abbreviations, academic degrees, or certifications (Ex: John Doe, CHT, OT or Jane Doe, PhD, OTR).(f) Limitations. A person who does not hold a license to practice occupational therapy in Texas may not use any of the following terms in conjunction with the person's business, work, or services:(1) "occupational therapist," "licensed occupational therapist," "occupational therapist, registered";(2) "occupational therapy assistant," "licensed occupational therapy assistant," "certified occupational therapy assistant";(3) "OT," "OTR," "LOT," "OTR/L";(4) "OTA," "COTA," "LOTA,""COTA/L"; or(5) any other words, letters, abbreviations, or insignia indicating or implying that the person is an occupational therapist or an occupational therapy assistant.</content><note type="source"><p>Source Note: The provisions of this §369.3 adopted to be effective October 11, 1994, 19 TexReg 7715; amended to be effective May 8, 1996, 21 TexReg 3715; amended to be effective November 4, 1997, 22 TexReg 10750; amended to be effective September 7, 2009, 34 TexReg 6123; amended to be effective August 19, 2010, 35 TexReg 7082; amended to be effective January 9, 2012, 37 TexReg 68; amended to be effective October 6, 2013, 38 TexReg 6930; amended to be effective June 1, 2022, 47 TexReg 3063.</p></note></section></subchapter></chapter><chapter identifier="/us/state/tx/tac/t40/p12/c370"><num value="370">CHAPTER 370</num><heading>LICENSE RENEWAL</heading><subchapter identifier="/us/state/tx/tac/t40/p12/c370/sc"><num value="">SUBCHAPTER </num><heading></heading><section identifier="/us/state/tx/tac/t40/p12/c370/sc/s370.1"><num value="370.1">§370.1</num><heading>License Renewal</heading><content>(a) Licensee Renewal. Licensees are required to renew their licenses every two years by the end of their birth month. A licensee may not provide occupational therapy services without a current license. Licenses and license expiration dates should be verified on the Board's license verification web page.(1) General Requirements. The renewal application is not complete until the Board receives all required items. The components required for license renewal are:(A) a completed renewal application form as prescribed by the Board verifying completion of the required continuing education as per Chapter 367 of this title (relating to Continuing Education);(B) the renewal fee and any late fees as set by the Executive Council that may be due;(C) a passing score on the jurisprudence examination;(D) the licensee's residential address, any business address, other mailing address, and email address; and(E) a complete and legible set of fingerprints submitted in the manner prescribed by the Board for the purpose of obtaining criminal history record information from the Department of Public Safety and the Federal Bureau of Investigation. The licensee is not required to submit fingerprints under this section if the license holder has previously submitted fingerprints under:(i) Chapter 364 of this title (relating to Requirements for Licensure) for the initial issuance of the license;(ii) Chapter 370 of this title (relating to License Renewal) as part of a prior license renewal; or(iii) Chapter 371 of this title (relating to Inactive and Retired Status) as part of a prior license renewal or change of license status.(2) The licensee is responsible for ensuring that the license is renewed, whether receiving a renewal notice or not.(3) The renewal process is not complete until the Board's license verification web page reflects that the license has been renewed by displaying the new renewal date.(4) Renewal fees and late fees are non-refundable.(5) Licensees electing to change their status or renewing a license on inactive or retired status must meet further requirements as per Chapter 371 of this title (relating to Inactive and Retired Status).(6) Licensees renewing a license expired one year or more must meet further requirements as per §370.3 of this title (relating to Restoration of a Texas License).(b) Restrictions to Renewal. The Board will not renew a license if it receives information from a child support agency that a licensee has failed to pay child support under a support order for six months or more as provided by Texas Family Code §232.0135. If all other renewal requirements have been met, the license will be renewed when the child support agency notifies the Board it may renew the license.</content><note type="source"><p>Source Note: The provisions of this §370.1 adopted to be effective October 11, 1994, 19 TexReg 7716; amended to be effective January 1, 1996, 20 TexReg 10908; amended to be effective May 8, 1996, 21 TexReg 3715; amended to be effective November 4, 1997, 22 TexReg 10751; amended to be effective October 25, 1998, 23 TexReg 10912; amended to be effective February 12, 2001, 26 TexReg 1348; amended to be effective July 22, 2001, 26 TexReg 5442; amended to be effective October 27, 2003, 28 TexReg 9291; amended to be effective December 4, 2005, 30 TexReg 7891; amended to be effective May 31, 2007, 32 TexReg 2880; amended to be effective June 10, 2012, 37 TexReg 4069; amended to be effective December 2, 2013, 38 TexReg 8682; amended to be effective January 1, 2016, 40 TexReg 8665; amended to be effective January 1, 2019, 43 TexReg 7913; amended to be effective December 1, 2019, 44 TexReg 6899; amended to be effective December 1, 2023, 48 TexReg 6745; amended to be effective December 1, 2025, 50 TexReg 7580.</p></note></section><section identifier="/us/state/tx/tac/t40/p12/c370/sc/s370.2"><num value="370.2">§370.2</num><heading>Late Renewal</heading><content>(a) A renewal application is late if all the required renewal materials do not bear a postmark or electronic time-stamp showing a date prior to the expiration of the license.(b) If the license has been expired for less than one year, the person may renew the license by completing all renewal requirements and submitting the renewal fee and the appropriate late fee.(c) Military Service:(1) A licensee will be exempt from late fees and penalty for failure to timely renew a license if the licensee establishes to the satisfaction of the Board that failure to renew the license in a timely manner was because the licensee was serving as a military service member.(2) A licensee who is a military service member is entitled to two years of additional time after the expiration of the license to complete:(A) any continuing education requirements; and(B) any other requirements related to the renewal of the license.(3) In this section, "military service member" has the meaning as defined in Chapter 55, Texas Occupations Code, §55.001.</content><note type="source"><p>Source Note: The provisions of this §370.2 adopted to be effective May 31, 2007, 32 TexReg 2880; amended to be effective June 18, 2009, 34 TexReg 3983; amended to be effective January 1, 2010, 34 TexReg 8968; amended to be effective November 28, 2010, 35 TexReg 10235; amended to be effective January 1, 2016, 40 TexReg 8665; amended to be effective September 1, 2020, 45 TexReg 5661; amended to be effective December 1, 2025, 50 TexReg 7580.</p></note></section><section identifier="/us/state/tx/tac/t40/p12/c370/sc/s370.3"><num value="370.3">§370.3</num><heading>Restoration of a Texas License</heading><content>(a) Restoration of a license expired one year or more to a person with a current license or occupational therapy employment:(1) The Board may restore a license to a person whose Texas license has been expired one year or more if the person:(A) is currently licensed in another state or territory of the U.S. and that license has not been suspended, revoked, cancelled, surrendered or otherwise restricted for any reason; or(B) if not currently licensed in another state or territory of the U.S., is applying from the U.S. military or a non-licensing state or territory of the U.S. and can substantiate occupational therapy employment for at least two years immediately preceding application for a Texas license.(2) The person shall meet the following requirements:(A) submit a completed restoration application form as prescribed by the Board;(B) submit in paper or electronic form a current color photograph that meets the requirements for a U.S. passport. A photograph in electronic form must be of a high-quality resolution comparable to that of a passport photograph in paper form;(C) submit documentation of the completion of training on human trafficking as described in Chapter 367 of this title (relating to Continuing Education);(D) submit a verification of license if the Board cannot verify the applicant's history of licensure in occupational therapy, including disciplinary action. The verification must be an original verification sent directly to the Board by the licensing board of the state or territory. Disciplinary action must be reported to the Board. If the applicant is not currently licensed in a state or territory of the U.S. and is applying from the U.S. military or a non-licensing state or territory of the U.S., a completed verification of employment form as prescribed by the Board must be submitted substantiating occupational therapy employment for at least two years immediately preceding application for a Texas license;(E) pass the jurisprudence examination;(F) pay the restoration fee; and(G) submit a complete and legible set of fingerprints in the manner prescribed by the Board for the purpose of obtaining criminal history record information from the Department of Public Safety and the Federal Bureau of Investigation. The licensee is not required to submit fingerprints under this section if the license holder has previously submitted fingerprints under:(i) Chapter 364 of this title (relating to Requirements for Licensure) for the initial issuance of the license;(ii) Chapter 370 of this title (relating to License Renewal) as part of a prior license renewal; or(iii) Chapter 371 of this title (relating to Inactive and Retired Status) as part of a prior license renewal or change of license status.(b) Restoration of a license expired at least one year but less than two years to a person without a current license or occupational therapy employment:(1) The Board may restore a license expired at least one year but less than two years to a person who was licensed in Texas and:(A) is not currently licensed in another state or territory of the U.S.; or(B) if not currently licensed in another state or territory of the U.S., is applying from the U.S. military or a non-licensing state or territory of the U.S. and cannot substantiate occupational therapy employment for at least two years immediately preceding application for a Texas license.(2) The person shall meet the following requirements:(A) submit a completed restoration application form as prescribed by the Board;(B) submit in paper or electronic form a current color photograph that meets the requirements for a U.S. passport. A photograph in electronic form must be of a high-quality resolution comparable to that of a passport photograph in paper form;(C) submit copies of the completed continuing education showing 36 hours of continuing education as per Chapter 367 of this title (relating to Continuing Education) that includes training on human trafficking as described in that chapter;(D) submit a verification of license if the Board cannot verify the applicant's history of licensure in occupational therapy, including disciplinary action. The verification must be an original verification sent directly to the Board by the licensing board of the state or territory. Disciplinary action must be reported to the Board;(E) pass the jurisprudence examination;(F) pay the restoration fee; and(G) submit a complete and legible set of fingerprints in the manner prescribed by the Board for the purpose of obtaining criminal history record information from the Department of Public Safety and the Federal Bureau of Investigation. The licensee is not required to submit fingerprints under this section if the license holder has previously submitted fingerprints under:(i) Chapter 364 of this title (relating to Requirements for Licensure) for the initial issuance of the license;(ii) Chapter 370 of this title (relating to License Renewal) as part of a prior license renewal; or(iii) Chapter 371 of this title (relating to Inactive and Retired Status) as part of a prior license renewal or change of license status.(c) Restoration of a license expired two years or more to a person without a current license or occupational therapy employment: (1) The Board may restore a license expired two years or more to a person who was licensed in Texas and:(A) is not currently licensed in another state or territory of the U.S.; or(B) if not currently licensed in another state or territory of the U.S., is applying from the U.S. military or a non-licensing state or territory of the U.S. and cannot substantiate occupational therapy employment for at least two years immediately preceding application for a Texas license.(2) The person shall meet the following requirements:(A) submit a completed restoration application form as prescribed by the Board;(B) submit in paper or electronic form a current color photograph that meets the requirements for a U.S. passport. A photograph in electronic form must be of a high-quality resolution comparable to that of a passport photograph in paper form;(C) submit documentation of the completion of training on human trafficking as described in Chapter 367 of this title (relating to Continuing Education);(D) submit a verification of license if the Board cannot verify the applicant's history of licensure in occupational therapy, including disciplinary action. The verification must be an original verification sent directly to the Board by the licensing board of the state or territory. Disciplinary action must be reported to the Board;(E) pass the jurisprudence examination;(F) pay the restoration fee;(G) submit a complete and legible set of fingerprints in the manner prescribed by the Board for the purpose of obtaining criminal history record information from the Department of Public Safety and the Federal Bureau of Investigation. The licensee is not required to submit fingerprints under this section if the license holder has previously submitted fingerprints under:(i) Chapter 364 of this title (relating to Requirements for Licensure) for the initial issuance of the license;(ii) Chapter 370 of this title (relating to License Renewal) as part of a prior license renewal; or(iii) Chapter 371 of this title (relating to Inactive and Retired Status) as part of a prior license renewal or change of license status; and(H) satisfy one of the following no more than two years prior to the submission of the application:(i) complete a re-entry course through an accredited college or university and submit the certificate of completion or transcript to the Board;(ii) obtain an advanced or post-professional occupational therapy degree, with an official transcript sent to the Board; or(iii) take and pass the NBCOT examination for licensure purposes only (after requesting Board approval to take the examination) and have the passing score reported to the Board directly by NBCOT.(d) Military service members, military veterans, and military spouses.(1) Fee waiver. The Board shall waive the restoration fee for a military service member, military veteran, or military spouse.(2) Expedited services. (A) With regard to a military service member, military veteran, or military spouse who within the five years preceding the application date held the license in this state, the Board shall promptly, not later than the 10th business day after the date the individual submits an application for restoration:(i) process the application; and(ii) restore the license to an individual who has met requirements for restoration.(B) The Board shall maintain a record of each complaint made against a military service member, military veteran, or military spouse whose license is restored under paragraph (2) of this subsection and publish at least quarterly on its website the information maintained under this subparagraph, including a general description of the disposition of each complaint.(3) In order to request services under this subsection, the military service member, military veteran, or military spouse must, in a manner prescribed by the Board, identify the services requested, notify the Board of the individual's military affiliation, and submit a copy of the Uniformed Services Military ID card or other appropriate official documentation evidencing current or former military affiliation.(4) In this subsection, "military service member," "military veteran," and "military spouse" have the meaning as defined in Chapter 55, Texas Occupations Code, §55.001.(e) The licensee whose license has been restored shall refer to Chapter 369 of this title for provisions regarding verification of current licensure.(f) The restoration fee as set by the Executive Council is nonrefundable.(g) Restoration requirements must be met within one year of the Board's receipt of the application. Restoration requirements are based on the length of time the license has been expired and whether the individual has a current license or occupational therapy employment as specified in this section at the time of the license's restoration.</content><note type="source"><p>Source Note: The provisions of this §370.3 adopted to be effective November 28, 2010, 35 TexReg 10235; amended to be effective January 9, 2012, 37 TexReg 69; amended to be effective June 1, 2015, 40 TexReg 3198; amended to be effective January 1, 2016, 40 TexReg 8665; amended to be effective July 1, 2016, 41 TexReg 4049; amended to be effective January 1, 2019, 43 TexReg 7913; amended to be effective September 1, 2020, 45 TexReg 5661; amended to be effective December 1, 2025, 50 TexReg 7580.</p></note></section><section identifier="/us/state/tx/tac/t40/p12/c370/sc/s370.4"><num value="370.4">§370.4</num><heading>Administrative Suspension and Refusal to Renew a License</heading><content>The Executive Director, the Executive Director's designee, or the Director of Enforcement may administratively suspend or refuse to renew the license of a person who does not comply with the requirements of the Occupational Therapy Practice Act §454.217 (relating to Criminal History Record Information for License Issuance) and §454.255 (relating to Criminal History Record Information Requirement for License Renewal).</content><note type="source"><p>Source Note: The provisions of this §370.4 adopted to be effective March 1, 2022, 47 TexReg 796.</p></note></section></subchapter></chapter><chapter identifier="/us/state/tx/tac/t40/p12/c371"><num value="371">CHAPTER 371</num><heading>INACTIVE AND RETIRED STATUS</heading><subchapter identifier="/us/state/tx/tac/t40/p12/c371/sc"><num value="">SUBCHAPTER </num><heading></heading><section identifier="/us/state/tx/tac/t40/p12/c371/sc/s371.1"><num value="371.1">§371.1</num><heading>Inactive Status</heading><content>(a) Inactive status indicates the voluntary termination of the right to practice occupational therapy by a licensee in good standing with the Board. The Board may allow an individual who is not actively engaged in the practice of occupational therapy to put an active license on inactive status at the time of renewal. A licensee may remain on inactive status for no more than three consecutive renewal cycles or six consecutive years and may not represent oneself as an occupational therapist or occupational therapy assistant.(b) A licensee on inactive status must renew every two years before the license expiration date.(c) Required components to put a license on inactive status or renew a license on inactive status are:(1) a completed application form as prescribed by the Board documenting completion of the required continuing education as described in Chapter 367 of this title (relating to Continuing Education);(2) the inactive status fee and any late fees that may be due; and(3) a passing score on the jurisprudence examination.(d) Requirements for reinstatement to active status. A licensee on inactive status may request to return to active status at any time. The components required to return to active status are:(1) a completed application form as prescribed by the Board;(2) the active status renewal fee and any late fees that may be due;(3) a passing score on the jurisprudence examination;(4) proof of the required continuing education, if required; and(5) a complete and legible set of fingerprints submitted in the manner prescribed by the Board for the purpose of obtaining criminal history record information from the Department of Public Safety and the Federal Bureau of Investigation. The licensee is not required to submit fingerprints under this section if the license holder has previously submitted fingerprints under:(A) Chapter 364 of this title (relating to Requirements for Licensure) for the initial issuance of the license;(B) Chapter 370 of this title (relating to License Renewal) as part of a prior license renewal; or(C) Chapter 371 of this title (relating to Inactive and Retired Status) as part of a prior license renewal or change of license status.(e) If the inactive status license has been expired one year or more, in order to return to active status, the individual must follow the procedures to restore the license according to §370.3 of this title (relating to Restoration of a Texas License).(f) The inactive status fees and any late fees as set by the Executive Council are nonrefundable.(g) Licensees on inactive status are subject to the audit of continuing education as described in §367.3 of this title (relating to Continuing Education Audit).</content><note type="source"><p>Source Note: The provisions of this §371.1 adopted to be effective October 11, 1994, 19 TexReg 7716; amended to be effective May 8, 1996, 21 TexReg 3716; amended to be effective November 4, 1997, 22 TexReg 10751; amended to be effective October 25, 1998, 23 TexReg 11167; amended to be effective February 3, 2000, 25 TexReg 818; amended to be effective May 20, 2001, 26 TexReg 3494; amended to be effective June 10, 2012, 37 TexReg 4069; amended to be effective July 1, 2016, 41 TexReg 4049; amended to be effective January 1, 2019, 43 TexReg 7915; amended to be effective September 1, 2020, 45 TexReg 5662; amended to be effective December 1, 2025, 50 TexReg 7581.</p></note></section><section identifier="/us/state/tx/tac/t40/p12/c371/sc/s371.2"><num value="371.2">§371.2</num><heading>Retired Status</heading><content>(a) The Retired Status is available for an occupational therapy practitioner whose only practice is the provision of voluntary charity care without monetary compensation.(1) "Voluntary charity care" means occupational therapy services provided as a volunteer with no compensation.(2) "Compensation" means direct or indirect payment of anything of monetary value.(3) The designation used by the retired status licensee is Occupational Therapist Registered, Retired (OTR, Ret) or Occupational Therapist, Retired (OT, Ret), or Certified Occupational Therapy Assistant, Retired (COTA, Ret) or Occupational Therapy Assistant, Retired (OTA, Ret).(b) To be eligible for retired status, a licensee must hold a current license on active or inactive status or an active or inactive status license that has been expired less than one year. The license may only be put on retired status at the time of renewal.(c) A licensee on retired status must renew every two years before the license expiration date.(d) Requirements to put a license on retired status or renew a license on retired status are:(1) a completed application form as prescribed by the Board;(2) a passing score on the jurisprudence examination;(3) completion of 6 hours of continuing education as described in Chapter 367 of this title (relating to Continuing Education) that includes training on human trafficking as described in that chapter; (4) the retired status fee and any late fees that may be due; and(5) a complete and legible set of fingerprints submitted in the manner prescribed by the Board for the purpose of obtaining criminal history record information from the Department of Public Safety and the Federal Bureau of Investigation. The licensee is not required to submit fingerprints under this section if the license holder has previously submitted fingerprints under:(A) Chapter 364 of this title (relating to Requirements for Licensure) for the initial issuance of the license;(B) Chapter 370 of this title (relating to License Renewal) as part of a prior license renewal; or(C) Chapter 371 of this title (relating to Inactive and Retired Status) as part of a prior license renewal or change of license status.(e) Requirements for return to active status. A licensee who has been on retired status less than one year must submit a completed application form as prescribed by the Board, the active status renewal fee and the late fee as described in §370.1 of this title (relating to License Renewal), and 18 additional hours of continuing education as described in Chapter 367 of this title (relating to Continuing Education). A licensee who has been on retired status for one year or more must follow the procedures for §370.3 of this title (relating to Restoration of Texas License).(f) The occupational therapy practitioner may continue to renew the retired status license indefinitely.(g) Licensees on retired status are subject to the audit of continuing education as described in §367.3 of this title (relating to Continuing Education Audit).(h) A retired occupational therapy practitioner is subject to disciplinary action under the Occupational Therapy Practice Act.(i) The retired status fees and any late fees as set by the Executive Council are nonrefundable.</content><note type="source"><p>Source Note: The provisions of this §371.2 adopted to be effective August 29, 2006, 31 TexReg 6801; amended to be effective September 7, 2009, 34 TexReg 6124; amended to be effective June 10, 2012, 37 TexReg 4069; amended to be effective July 1, 2016, 41 TexReg 4049; amended to be effective January 1, 2019, 43 TexReg 7915; amended to be effective September 1, 2020, 45 TexReg 5662; amended to be effective June 1, 2022, 47 TexReg 3064; amended to be effective December 1, 2025, 50 TexReg 7581.</p></note></section></subchapter></chapter><chapter identifier="/us/state/tx/tac/t40/p12/c372"><num value="372">CHAPTER 372</num><heading>PROVISION OF SERVICES</heading><subchapter identifier="/us/state/tx/tac/t40/p12/c372/sc"><num value="">SUBCHAPTER </num><heading></heading><section identifier="/us/state/tx/tac/t40/p12/c372/sc/s372.1"><num value="372.1">§372.1</num><heading>Provision of Services</heading><content>(a) Medical Conditions.(1) Occupational therapists may evaluate the client to determine the need for occupational therapy services without a referral. However, a referral must be requested at any time during the evaluation process when necessary to ensure the safety and welfare of the client.(2) Intervention for a medical condition by an occupational therapy practitioner requires a referral from a licensed referral source.(b) Non-Medical Conditions. The evaluation or intervention for a non-medical condition does not require a referral. However, a referral must be requested at any time during the evaluation or intervention process when necessary to ensure the safety and welfare of the client.(c) Methods of Referral. The referral must be from a licensed referral source in accordance with the Occupational Therapy Practice Act §454.213 (relating to Accepted Practice; Practitioner's Referral) and may be transmitted in the following ways:(1) by a written document, including paper or electronic information/communications technologies;(2) verbally, either in person or by electronic information/communications technologies. If a referral is transmitted verbally, it must be documented by the authorized personnel who receives the referral. In this subsection, "authorized personnel" means staff members authorized by the employer or occupational therapist to receive referrals transmitted verbally; or(3) by an occupational therapy plan of care, developed according to the requirements of this section, that is signed by the licensed referral source.(d) Screening, Consultation, and Monitored Services. A screening, consultation, or monitored services may be performed by an occupational therapy practitioner without a referral.(e) Evaluation.(1) The occupational therapist is responsible for determining whether an evaluation is needed and if a referral is required for an occupational therapy evaluation.(2) Only an occupational therapist may perform an initial evaluation or any re-evaluations.(3) An occupational therapy plan of care must be based on an occupational therapy evaluation.(4) The occupational therapist is responsible for determining whether any aspect of the evaluation may be conducted via telehealth or must be conducted in person.(5) The occupational therapist must have contact with the client during the evaluation. The contact must be synchronous audio and synchronous visual contact that is in person, via telehealth, or via a combination of in-person contact and telehealth. Other telecommunications or information technology may be used to aid in the evaluation but may not be the primary means of contact or communication.(6) The occupational therapist may delegate to an occupational therapy assistant the collection of data for the evaluation. The occupational therapist is responsible for the accuracy of the data collected by the occupational therapy assistant.(f) Plan of Care.(1) Only an occupational therapist may initiate, develop, modify, or complete an occupational therapy plan of care. It is a violation of the Occupational Therapy Practice Act for anyone other than the occupational therapist to dictate, or attempt to dictate, when occupational therapy services should or should not be provided, the nature and frequency of services that are provided, when the client should be discharged, or any other aspect of the provision of occupational therapy as set out in the Occupational Therapy Practice Act and Rules.(2) Modifications to the plan of care must be documented.(3) An occupational therapy plan of care may be integrated into an interdisciplinary plan of care, but the occupational therapy goals or objectives must be easily identifiable in the plan of care.(4) Only occupational therapy practitioners may implement the written plan of care once it is completed by the occupational therapist.(5) Only the occupational therapy practitioner may train non-licensed personnel or family members to carry out specific tasks that support the occupational therapy plan of care.(6) The occupational therapist is responsible for determining whether intervention is needed and if a referral is required for occupational therapy intervention.(7) Except where otherwise restricted by rule, the occupational therapy practitioner is responsible for determining whether any aspect of the intervention session may be conducted via telehealth or must be conducted in person.(8) The occupational therapy practitioner must have contact with the client during the intervention session.(A) The contact must be either:(i) synchronous audio and synchronous visual contact that is in person, via telehealth, or via a combination of in-person contact and telehealth; or(ii) synchronous audio contact, provided that the occupational therapy practitioner makes use of store-and-forward technology in preparation for or during the intervention session. The synchronous audio contact may be in person and/or via telehealth. In this subsection, "store-and-forward technology" means technology that stores and transmits or grants access to a client's clinical information for review by an occupational therapy practitioner at a different physical location than the client.(B) Other telecommunications or information technology may be used to aid in the intervention session but may not be the primary means of contact or communication.(9) Except where otherwise restricted by rule, the supervising occupational therapist may only delegate to an occupational therapy assistant tasks that they both agree are within the competency level of that occupational therapy assistant.(g) Documentation.(1) The client's records include the medical referral, if required; the initial evaluation; the plan of care, including the goals and any updates or change of the goals; the documentation of each intervention session by the OT or OTA providing the service; progress notes and any re-evaluations, if required; any patient related documents; and the discharge or discontinuation of occupational therapy services documentation.(2) The licensee providing occupational therapy services must document for each intervention session. The documentation must accurately reflect the intervention, decline of intervention, and modalities provided.(3) In each intervention note, the occupational therapy assistant must include the name of an occupational therapist who is readily available to answer questions about the client's intervention at the time of the provision of services. The occupational therapist in the intervention note may be different from the occupational therapist who wrote the plan of care. The occupational therapy assistant may not provide services unless this requirement is met.(h) Discharge or Discontinuation of Occupational Therapy Services.(1) Only an occupational therapist has the authority to discharge clients from occupational therapy services. The discharge or discontinuation of occupational therapy services is based on whether the client has achieved predetermined goals, has achieved maximum benefit from occupational therapy services, or when other circumstances warrant discontinuation of occupational therapy services.(2) The occupational therapist must review any information from the occupational therapy assistant(s), determine if goals were met or not, complete and sign the discharge or discontinuation of occupational therapy services documentation, and/or make recommendations for any further needs of the client in another continuum of care.</content><note type="source"><p>Source Note: The provisions of this §372.1 adopted to be effective October 11, 1994, 19 TexReg 7717; amended to be effective August 31, 1995, 20 TexReg 6337; amended to be effective May 8, 1996, 21 TexReg 3716; amended to be effective November 4, 1997, 22 TexReg 10752; amended to be effective October 25, 1998, 23 TexReg 10912; amended to be effective August 21, 2000, 25 TexReg 8063; amended to be effective July 22, 2001, 26 TexReg 5442; amended to be effective July 22, 2002, 27 TexReg 6546; amended to be effective February 27, 2005, 30 TexReg 910; amended to be effective December 4, 2005, 30 TexReg 7892; amended to be effective February 25, 2008, 33 TexReg 1604;amended to be effective September 7, 2009, 34 TexReg 6124; amended to be effective January 9, 2012, 37 TexReg 69; amended to be effective October 6, 2013, 38 TexReg 6931; amended to be effective July 1, 2016, 41 TexReg 4050; amended to be effective March 1, 2017, 42 TexReg 696; amended to be effective March 1, 2018, 43 TexReg 902; amended to be effective June 1, 2019, 44 TexReg 2465; amended to be effective June 1, 2022, 47 TexReg 3064.</p></note></section><section identifier="/us/state/tx/tac/t40/p12/c372/sc/s372.2"><num value="372.2">§372.2</num><heading>General Purpose Occupation-Based Instruction</heading><content>(a) Occupational therapy practitioners may develop or facilitate general purpose, occupation-based groups or classes including but not limited to handwriting groups, parent-child education classes, wellness-focused activities for facility residents, aquatics exercise groups, and cooking for diabetics classes.(b) These services do not require individualized evaluation and plan of care services but practitioners may develop goals or curriculums for the group as a whole. If a participant requires individualized occupational therapy services, these may only be provided in accordance with §372.1 of this title (relating to Provision of Services).(c) When general purpose occupation-based instruction is being provided pursuant to §372.2, the OT must approve the curricular goals/program prior to the OTA's initiating instruction.</content><note type="source"><p>Source Note: The provisions of this §372.2 adopted to be effective July 1, 2016, 41 TexReg 4051; amended to be effective June 1, 2019, 44 TexReg 2465.</p></note></section></subchapter></chapter><chapter identifier="/us/state/tx/tac/t40/p12/c373"><num value="373">CHAPTER 373</num><heading>SUPERVISION</heading><subchapter identifier="/us/state/tx/tac/t40/p12/c373/sc"><num value="">SUBCHAPTER </num><heading></heading><section identifier="/us/state/tx/tac/t40/p12/c373/sc/s373.1"><num value="373.1">§373.1</num><heading>Supervision of Non-Licensed Personnel</heading><content>(a) Occupational Therapists are fully responsible for the planning and delivery of occupational therapy services. They may use non-licensed personnel to extend their services; however, the non-licensed personnel must be under the supervision of an occupational therapy practitioner.(b) Supervision in this section for occupational therapy aides as defined by the Occupational Therapy Practice Act §454.002 (relating to Definitions) is on-site contact whereby the supervising occupational therapy practitioner is able to respond immediately to the needs of the client.(c) Supervision of other non-licensed personnel either on-site or via telehealth requires that the occupational therapy practitioner maintain line of sight of the services provided.(d) When occupational therapy practitioners delegate occupational therapy tasks to non-licensed personnel, the occupational therapy practitioners are responsible for ensuring that this person is adequately trained in the tasks delegated.(e) The occupational therapy practitioners providing the intervention must interact with the client regarding the client's condition, progress, and/or achievement of goals during each intervention session.(f) Delegation of tasks to non-licensed personnel includes but is not limited to:(1) assisting in the construction of adaptive/assistive equipment and splints. The licensee must be attending for any initial applications to the client. When telehealth may be used for the supervision of non-licensed personnel as described in this section, the licensee may attend via telehealth, provided the licensee maintains line of sight of the services provided;(2) carrying out a predetermined segment or task in the client's care for which the client has demonstrated some previous performance ability in executing the task.(g) The Non-Licensed Personnel may not:(1) perform occupational therapy evaluative procedures;(2) initiate, plan, adjust, or modify occupational therapy procedures;(3) act on behalf of the occupational therapist in any matter relating to occupational therapy that requires decision making or professional judgments;(4) write or sign occupational therapy documents in the permanent record. However, non-licensed personnel may record quantitative data for tasks delegated by the supervising occupational therapy practitioner. Any documentation reflecting activities by non-licensed personnel must identify the name and title of that person and the name of the supervising occupational therapy practitioner.</content><note type="source"><p>Source Note: The provisions of this §373.1 adopted to be effective January 9, 1995, 19 TexReg 10361; amended to be effective August 31, 1995, 20 TexReg 6337; amended to be effective May 8, 1996, 21 TexReg 3716; amended to be effective March 5, 1997, 22 TexReg 1898; amended to be effective November 4, 1997, 22 TexReg 10752; amended to be effective October 25, 1998, 23 TexReg 11167; amended to be effective July 22, 2001, 26 TexReg 5443; amended to be effective July 22, 2002, 27 TexReg 6546; amended to be effective December 4, 2005, 30 TexReg 7893; amended to be effective September 7, 2009, 34 TexReg 6124; amended to be effective July 1, 2016, 41 TexReg 4052;amended to be effective June 1, 2022, 47 TexReg 3066.</p></note></section><section identifier="/us/state/tx/tac/t40/p12/c373/sc/s373.2"><num value="373.2">§373.2</num><heading>Supervision of a Temporary Licensee</heading><content>(a) Requirements for all temporary licensees:(1) A temporary licensee works under the supervision of a licensed occupational therapist who holds a regular license and whose name, license number, and employer information are on file on the Board's Supervision of a Temporary Licensee form. For each supervising occupational therapist and/or employer, the temporary licensee must submit the Supervision of a Temporary Licensee form. In this section, a supervising occupational therapist is any occupational therapist whether working full time, part time, or PRN (i.e., working on an as-needed basis), who delegates to the temporary licensee.(2) All documentation completed by an individual holding a temporary license which becomes part of the client's permanent file must be approved and co-signed by one of the supervising occupational therapist(s).(3) Temporary licensees may not supervise anyone.(4) A temporary licensee does not become a regular licensee with those privileges until the regular license can be verified as being current and its expiration date is displayed on the Board's license verification page.(b) Supervision of an occupational therapy assistant with a temporary license includes:(1) On-the-Premises Supervision: When providing occupational therapy services, a temporary licensee must have supervision by an occupational therapist or occupational therapy assistant who is on the premises and holds a regular license.(2) Supervision Log and Supervision Hours:(A) The temporary licensee must complete supervision hours each month, which must be recorded on the Supervision Log. The Supervision Log is kept by the temporary licensee and signed by the occupational therapist(s) when supervision is given. The occupational therapist(s) or employer may request a copy of the Supervision Log.(B) All of the occupational therapists, whether working full time, part time, or PRN, who delegate to the temporary licensee must participate in the supervision hours, whether on a shared or rotational basis.(C) For each employer, the temporary licensee must complete a separate Supervision Log, in addition to all other requirements.(D) For those months when the licensee does not work as a temporary licensee, he or she shall write N/A in the Supervision Log.(E) Supervision Logs are subject to audit by the Board.(F) The temporary licensee is required to complete a minimum of sixteen supervision hours each month for each employer, which must include:(i) a minimum of twelve hours of frequent communication between the supervising occupational therapist(s) and temporary licensee including, but not limited to, communication by electronic/communications technology methods, written report, and conference, including review of progress of clients assigned, plus(ii) a minimum of four hours of interactive supervision a month during which the occupational therapist, who is physically present with the temporary licensee, directly observes the temporary licensee providing services to one or more clients.(c) Supervision of an occupational therapist with a temporary license includes:(1) On-the-Premises Supervision: When providing occupational therapy services, a temporary licensee must have supervision by an occupational therapist who is on the premises and holds a regular license.(2) Supervision Record and Required Supervision Communication and Encounters:(A) The temporary licensee must receive supervision each month, which must be recorded on the Temporary Occupational Therapist Licensee Supervision Record. The Supervision Record is kept by the temporary licensee and signed by the occupational therapist(s) when supervision is given. The occupational therapist(s) or employer may request a copy of the Supervision Record.(B) All of the occupational therapists, whether working full time, part time, or PRN, who delegate to the temporary licensee must participate in the required supervision, whether on a shared or rotational basis.(C) For each employer, the temporary licensee must complete a separate Supervision Record, in addition to all other requirements.(D) For those months when the licensee does not work as a temporary licensee, he or she shall write N/A in the Supervision Record.(E) Supervision Records are subject to audit by the Board.(F) The temporary licensee is required to complete the following supervision requirements for each employer:(i) frequent communication between the supervising occupational therapist(s) and temporary licensee including, but not limited to, communication by electronic/communications technology methods, written report, and conference, including review of progress of clients assigned, plus(ii) interactive encounters twice a month during which the occupational therapist, who is physically present with the temporary licensee, directly observes the temporary licensee providing services to one or more clients.</content><note type="source"><p>Source Note: The provisions of this §373.2 adopted to be effective July 22, 2001, 26 TexReg 5443; amended to be effective July 22, 2002, 27 TexReg 6546; amended to be effective August 29, 2006, 31 TexReg 6802; amended to be effective September 7, 2009, 34 TexReg 6124; amended to be effective August 19, 2010, 35 TexReg 7083; amended to be effective October 1, 2015, 40 TexReg 5803.</p></note></section></subchapter></chapter><chapter identifier="/us/state/tx/tac/t40/p12/c374"><num value="374">CHAPTER 374</num><heading>DISCIPLINARY ACTIONS/DETRIMENTAL PRACTICE/COMPLAINT PROCESS/CODE OF ETHICS/LICENSURE OF PERSONS WITH CRIMINAL CONVICTIONS</heading><subchapter identifier="/us/state/tx/tac/t40/p12/c374/sc"><num value="">SUBCHAPTER </num><heading></heading><section identifier="/us/state/tx/tac/t40/p12/c374/sc/s374.1"><num value="374.1">§374.1</num><heading>Disciplinary Actions</heading><content>(a) The board, in accordance with the Administrative Procedure Act, may deny, revoke, suspend, or refuse to renew or issue a license, or may reprimand or impose probationary conditions, if the licensee or applicant for licensure has been found in violation of the rules or the Act. The board will adhere to procedures for such action as stated in the Act, §§454.301, 454.302, 454.303, and 454.304.(b) The board recognizes four levels of disciplinary action for its licensees.(1) Level I: Order and/or Letter of Reprimand or Other Appropriate Disciplinary Action (including but not limited to community service hours).(2) Level II: Probation--The licensee may continue to practice while on probation. The board orders the probationary status which may include but is not limited to restrictions on practice and continued monitoring by the board during the specified time period.(3) Level III: Suspension--A specified period of time that the licensee may not practice as an occupational therapist or occupational therapy assistant. Upon the successful completion of the suspension period, the license will be reinstated upon the licensee successfully meeting all requirements.(4) Level IV: Revocation--A determination that the licensee may not practice as an occupational therapist or occupational therapy assistant. Upon passage of 180 days, from the date the revocation order becomes final, the former licensee may petition the board for re-issuance of a license. The former licensee may be required to re-take the Examination.(c) The board shall utilize the following schedule of sanctions in all disciplinary matters.Attached Graphic(d) The board shall consider the following factors in conjunction with the schedule of sanctions when determining the appropriate penalty/sanction in disciplinary matters:(1) the seriousness of the violation, including:(A) the nature, circumstances, extent, and gravity of the violation; and(B) the hazard or potential hazard created to the health, 4safety, or economic welfare of the public;(2) the history of previous violations;(3) the amount necessary to deter future violations;(4) efforts to correct the violation;(5) the economic harm to the public interest or public confidence caused by the violation;(6) whether the violation was intentional; and(7) any other matter that justice requires.(e) Licensees who provide occupational therapy services are responsible for understanding and complying with Chapter 454 of the Occupations Code (the Occupational Therapy Practice Act), and the Texas Board of Occupational Therapy Examiners' rules.(f) Final disciplinary actions taken by the board will be routinely published as to the names and offenses of the licensees.(g) A licensee who is ordered by the board to perform certain act(s) will be monitored by the board to ensure that the required act(s) are completed per the order of the board.(h) The board may expunge any record of disciplinary action taken against a license holder before September 1, 2019, for practicing in a facility that failed to meet the registration requirements of §454.215 of the Act (relating to Occupational Therapy Facility Registration), as that section existed on January 1, 2019. The board may not expunge a record under this subsection after September 1, 2021.(i) A licensee or applicant is required to report to the board a felony of which he/she is convicted within 60 days after the conviction occurs.(j) A licensee shall submit to the board a copy of any judgment or settlement in a malpractice claim or any disciplinary action taken against the licensee by a licensing authority of another territory or state of the U.S. within 30 days after the judgment, settlement, or disciplinary action is signed.</content><note type="source"><p>Source Note: The provisions of this §374.1 adopted to be effective October 11, 1994, 19 TexReg 7718; amended to be effective August 31, 1995, 20 TexReg 6338; amended to be effective January 1, 1996, 20 TexReg 10908; amended to be effective May 8, 1996, 21 TexReg 3717; amended to be effective November 4, 1997, 22 TexReg 10754; amended to be effective July 22, 2001, 26 TexReg 5444; amended to be effective August 19, 2010, 35 TexReg 7083; amended to be effective January 1, 2019, 43 TexReg 7917; amended to be effective September 1, 2019, 44 TexReg 4328; amended to be effective December 1, 2020, 45 TexReg 8350; amended to be effective June 1, 2025, 50 TexReg 2981; amended to be effective December 1, 2025, 50 TexReg 7582.</p></note></section><section identifier="/us/state/tx/tac/t40/p12/c374/sc/s374.2"><num value="374.2">§374.2</num><heading>Detrimental Practice</heading><content>§454.301(a)(6) of the Act (relating to Grounds for Denial of License or Discipline of License Holder) states, "practiced occupational therapy in a manner detrimental to the public health and welfare," which is defined, but not limited to, the following:(1) failing to document occupational therapy services or inaccurately recording, falsifying, or altering client records;(2) making or filing a false or misleading report, or failing to file a report when it is required by law or third person or obstructing or attempting to obstruct another person from filing such a report;(3) failing to report or otherwise concealing any conduct by self or another licensee likely to be a violation of the Act or Rules;(4) drug diversion, which refers to when a medication is diverted from the person to whom it was prescribed;(5) not providing the supervision required by the Act or Rules for those individuals to whom occupational therapy services are delegated;(6) practicing occupational therapy without receiving the supervision required by the Act or Rules;(7) impersonating another person holding a license; aiding, abetting, authorizing, condoning, or allowing the practice of occupational therapy or the representation of oneself as an occupational therapy practitioner by a person without a license; or aiding, abetting, authorizing, condoning, or allowing the use of a license by a person other than the holder of the license;(8) practicing occupational therapy or representing oneself in a manner not authorized by the license;(9) failing to cooperate with the agency by not responding to agency correspondence addressed to the individual's designated address(es) or by not furnishing papers or documents requested or not responding to subpoenas issued by the agency within 90 days;(10) failing to complete the requirements of an agreed order;(11) interfering with an investigation or disciplinary proceeding by willful misrepresentation of facts before the agency or Board or by the use of threats, intimidation, or harassment against any clients or witnesses with the potential of preventing them from providing evidence in a disciplinary proceeding or any other legal action;(12) practicing occupational therapy without a valid license, including after the expiration, surrender, or revocation of the license, during the suspension of the license, or after the license is void;(13) failing to conform to the minimal standards of acceptable prevailing practice, including, but not limited to:(A) using occupational therapy techniques or modalities for purposes not consistent with the development of occupational therapy as a profession or science or as a means of promoting the public health and welfare;(B) delegating, performing, or attempting to perform techniques or procedures in which one is untrained by education or experience;(C) delegating occupational therapy functions or responsibilities to an individual lacking the competency to perform such;(D) harassing, abusing, or intimidating a client either physically or verbally;(E) causing or enabling physical or emotional injury to or the impairment of the dignity or safety of the client; and(F) violating the principles or related standards of conduct of §374.4 of this title (relating to Code of Ethics);(14) engaging in sexual contact or an inappropriate relationship with a client, including, but not limited to:(A) engaging in inappropriate behavior with or comments directed toward a client; and(B) becoming financially or personally involved in an inappropriate manner with a client;(15) intentionally or knowingly offering to pay or agreeing to accept any remuneration directly or indirectly, overtly or covertly, in cash or in kind, to or from any person, firm, association of persons, partnership, or corporation for receiving or soliciting clients or patronage, regardless of source of reimbursement, unless said business arrangement or payments practice is acceptable under 42 United States Code §1320a-7b(b) or its regulations;(16) recommending therapeutic devices or modalities sold by a third person for the purpose or with the result of receiving a fee or other consideration from a third person;(17) failing to maintain the confidentiality of all verbal, written, electronic, augmentative, and nonverbal communication, including compliance with Health Insurance Portability and Accountability Act (HIPAA) regulations; and(18) patient abandonment. "Patient abandonment" means failing to provide sufficient prior written notice of resignation of employment or termination of contract, or if self-employed, sufficient prior written notice to existing clients or any licensees under the individual's supervision, resulting in the loss or delay of occupational therapy services. "Sufficient" means at least 14 days.</content><note type="source"><p>Source Note: The provisions of this §374.2 adopted to be effective October 11, 1994, 19 TexReg 7718; amended to be effective May 8, 1996, 21 TexReg 3718; amended to be effective July 22, 2001, 26 TexReg 5444; amended to be effective August 19, 2010, 35 TexReg 7084; amended to be effective June 1, 2015, 40 TexReg 3200; amended to be effective September 1, 2019, 44 TexReg 4328; amended to be effective June 1, 2025, 50 TexReg 2981; amended to be effective December 1, 2025, 50 TexReg 7582.</p></note></section><section identifier="/us/state/tx/tac/t40/p12/c374/sc/s374.3"><num value="374.3">§374.3</num><heading>Complaint Process</heading><content>(a) The Act, Subchapters G and H authorizes the board to investigate complaints.(b) Filing and receipt of complaints.(1) Complaints may be received in writing. Complainants shall be invited to explain their allegations. The staff will provide reasonable assistance to a person who wishes to file a complaint. Anonymous complaints will be accepted, but it is understood that the lack of a witness or the ability to secure additional information from the anonymous complainant may result in the board's inability to secure sufficient evidence to pursue action against the alleged violator.(2) When a complaint is received, the board shall notify the parties to the complaint of the status of the complaint, unless the notice would jeopardize an undercover investigation. The board shall notify the parties to the complaint at least as frequently as quarterly until there is final disposition of the complaint, in accordance with the Act, §454.152.(3) Not later than the tenth calendar day after a complaint is received, the staff shall place a timeline for completion of the investigation in the file and notify all parties to the complaint. Any change in the timeline must be noted in the file and all parties notified of the change not later than seven calendar days after the change was made. For purposes of this rule, completion of an investigation in a disciplinary matter occurs when:(A) staff determines there is insufficient evidence to demonstrate a violation of the Act, board rules, or a board order; or(B) staff determines that there is sufficient evidence to demonstrate a violation of the Act, board rules, or a board order and drafts proposed formal charges.(4) The staff shall provide summary data of complaints extending beyond the complaint timeline to the coordinator and the executive director who will then notify the board at a regularly scheduled meeting.(5) The board shall keep an information file on each complaint submitted to the board. The file will be kept current and include a record of all persons contacted in relation to the complaint, notes about the findings throughout the complaint process, and other relevant information.(6) The Investigation Committee may determine when and if a private investigator is needed for processing of a complaint.(7) Complaints shall be assigned a priority status in the following categories:(A) Those indicating that credible evidence exists showing a violation of the Occupational Therapy Practice Act involving actual deception, fraud, or injury to clients or the public or a high probability of immediate deception, fraud, or injury to clients or the public.(B) Those indicating that credible evidence exists showing a violation of the Occupational Therapy Practice Act involving a high probability of potential deception, fraud, or injury to clients or the public.(C) Those indicating that credible evidence exists showing a violation of the Occupational Therapy Practice Act involving a potential for deception, fraud, or injury to clients or the public.(D) All other complaints.(c) The Executive Director and the Investigation Committee will take appropriate action to investigate the complaint or take other appropriate action.(1) The Investigation Committee will hold meetings, at least quarterly, to review complaints, to determine if there is sufficient evidence to substantiate the allegations, to hold informal conferences, to identify appropriate discipline for violations, and to make recommendations for disciplinary action to the board.(2) The Investigation Committee reviews the evidence that has been submitted and gathered by the investigator and, typically makes one of the following determinations:(A) The scope of the complaint is beyond the authority of the board and possibly may be handled by another entity. The committee may refer the complainant to an appropriate entity.(B) There is insufficient evidence to substantiate that a violation of the Act or rules has occurred, thus closing the investigation.(C) Evidence indicates a possible violation did occur and further investigation is needed.(D) Evidence indicates a violation did occur and disciplinary action is not warranted.(E) Evidence indicates a violation did occur and disciplinary action is warranted.(d) Preliminary notice.(1) Prior to commencing disciplinary proceedings, the staff shall serve the respondent with written notice in accordance with the Texas Government Code, §2001.054(c).(2) Such notice shall contain a statement of the facts or conduct alleged to warrant an adverse action. The notice shall invite the respondent to show compliance with all requirements of the law for retention of the license.(3) The respondent shall have not less than ten calendar days to respond in writing.(e) Agreed orders.(1) An agreed order is a legal document and the formal means by which a respondent accepts the disciplinary action imposed by the board. To be a valid document it must be approved by the board and signed by both the respondent and the chair of the board.(2) An agreed order may be negotiated with any person under the jurisdiction of the board, the terms of which shall be approved by the Investigation Committee.(3) The agreed order will be sent to the respondent. To accept the agreed order, the respondent must sign and return it to the board within ten calendar days after receipt. Inaction by the respondent constitutes rejection. If the respondent rejects the proposed settlement, the matter shall be referred to the Investigation Committee for appropriate action.(4) The agreed order with the signature of the respondent will be presented to the board. The proposed agreed order shall have no effect until such time as the board may, at a scheduled meeting, take action approving the agreed order. The agreed order will include a provision requiring the respondent reimburse the board for all investigative expenses.(5) The respondent shall be notified of the date, time, and place of the board meeting at which the proposed agreed order will be considered. Attendance by the respondent is voluntary.(6) Consideration by the board will include the following:(A) Any board member who participated in the investigation of the complaint or formulation of the proposed agreed order may not vote on the agreed order.(B) The respondent's identity will not be made available to the board until after the board has reviewed and made a decision on the agreed order.(C) Upon an affirmative majority vote, the board shall authorize the agreed order, and the chair of the board will sign it. The board-approved agreed order will be provided to the respondent. A copy of the order will then be placed in the licensee's permanent file.(D) If the board does not approve the agreed order, the matter will be referred to the Investigation Committee or the Executive Director for other appropriate action. The respondent and the complainant shall be so informed.(f) Dismissal of complaints.(1) Complaints may be dismissed for the following reasons:(A) No evidence available.(B) Insufficient evidence.(C) Other reasons which the Investigation Committee believes are justification for dismissal.(2) Upon the decision of the Investigation Committee to dismiss a complaint, the person who filed the complaint is provided a letter explaining why the complaint has been dismissed.(3) On a quarterly basis, the board is provided with a list of the complaints that were dismissed and the reasons for the dismissals.(4) At least annually the board will advise the Executive Council of complaints which have been disposed.(g) Informal conference.(1) At any time after the filing of a complaint, an informal conference may be held prior to the contested case hearing for one or more of the following purposes:(A) Clarifying the issues;(B) Considering proposed admissions or stipulations of fact;(C) Reviewing the procedure to govern the contested case hearing;(D) Exchanging witness lists and agreeing to limit the number of witnesses; and/or(E) Doing any act that may simplify the proceedings, and dispose of matters in controversy, including settlement of issues in dispute and preparation of an agreed order for presentation to the board as provided herein.(2) A respondent may request an informal settlement conference; however, the decision to hold a conference shall be made by the Executive Director or the Investigation Committee.(3) Participation in an informal conference shall not be mandatory for the licensee or applicant, nor is it a prerequisite to a formal hearing.(4) The Executive Director shall decide upon the time, date, and place of the settlement conference and provide written notice to the respondent of the same. Notice shall be provided no less than ten calendar days prior to the date of the conference to the last known address of the respondent. The ten days shall begin on the date of mailing. The respondent may waive the ten-day notice requirement.(A) The notice shall inform the respondent of the following:(i) the nature of the alleged violation;(ii) that the respondent may be represented by legal counsel;(iii) that the respondent may offer the testimony of witnesses and present other evidence as may be appropriate;(iv) that a board member may be present;(v) that a representative of the Office of the Attorney General will be present;(vi) that the respondent's attendance and participation is voluntary;(vii) that the complainant and any client involved in the alleged violations may be present; and(viii) that the settlement conference shall be canceled if the respondent notifies the Executive Director that he or she will not attend.(B) A copy of the board's rules concerning informal disposition shall be enclosed with the notice of the settlement conference.(5) The notice of the settlement conference shall be sent to the complainant's last known address. The complainant shall be informed that he or she may appear and testify or may submit a written statement for consideration at the settlement conference. The complainant shall be notified if the conference is canceled.(6) Participants in the informal conference may include a board member, agency staff, the complainant, the respondent, attorneys representing any of the participants, and any other persons determined by the Investigation Committee or the Executive Director to be necessary for proper conduct of the conference. All other persons may be excluded.(7) The settlement conference shall be informal and shall not follow the procedures established in this chapter for contested cases and formal hearings.(8) The respondent, the respondent's attorney, a board member, and board staff may question witnesses, make relevant statements, present statements of persons not in attendance, and present such other evidence as may be appropriate.(9) An attorney from the Office of the Attorney General shall attend each settlement conference. The board member or Executive Director may call upon the attorney at any time for assistance in the settlement conference.(10) The respondent shall be afforded the opportunity to make statements on his or her own behalf.(11) Access to the board's investigative file may be prohibited or limited in accordance with the Administrative Procedures Act (APA), Chapter 2001, Texas Government Code, and the Open Records Act, Chapter 552, Texas Government Code.(12) No formal recording of the settlement conference shall be made.(13) At the conclusion of the settlement conference, the board member or the Executive Director may make recommendations for informal disposition of the complaint or contested case. The recommendations may include any disciplinary action authorized by the Occupational Therapy Practice Act. The board member or the Executive Director may also conclude that the board lacks jurisdiction, that a violation of the Act or this chapter has not been established, order that the investigation be closed, or refer the matter for further investigation.(h) The board follows the Administrative Procedure Act (APA), Texas Government Code, Chapter 2001, for resolution of complaints as a contested case. A copy of the APA procedures may be obtained from the board.(i) Should the recommendation for an informal disposition not be accepted by the respondent, the complaint shall be referred back to the Investigation Committee for appropriate action. The committee shall determine if the case should be referred to the State Office of Administrative Hearings (SOAH) or dismissed for insufficient evidence or other reasons justifying a dismissal.(j) If the Investigation Committee determines that a violation has occurred and the respondent is not under the jurisdiction of the board, the committee has the option of referring the case to the appropriate authority: district attorney, county attorney, etc.</content><note type="source"><p>Source Note: The provisions of this §374.3 adopted to be effective May 8, 1996, 21 TexReg 3718; amended to be effective July 22, 2001, 26 TexReg 5444; amended to be effective December 1, 2022, 47 TexReg 7747.</p></note></section><section identifier="/us/state/tx/tac/t40/p12/c374/sc/s374.4"><num value="374.4">§374.4</num><heading>Code of Ethics</heading><content>(a) The Texas Board of Occupational Therapy Examiners' Code of Ethics is a public statement of the principles and related standards of conduct used in promoting and maintaining high standards of behavior in occupational therapy within the state of Texas. The Code of Ethics is a set of principles and standards that applies to occupational therapy practitioners. ("Practitioners" in this section are defined as those individuals licensed by this Board or applicants for licensure with this Board.) (b) Principles and Related Standards of Conduct:Attached Graphic</content><note type="source"><p>Source Note: The provisions of this §374.4 adopted to be effective December 2, 2013, 38 TexReg 8683; amended to be effective April 1, 2016, 41 TexReg 1973.</p></note></section><section identifier="/us/state/tx/tac/t40/p12/c374/sc/s374.5"><num value="374.5">§374.5</num><heading>Licensure of Persons with Criminal Convictions</heading><content>(a) The Board may revoke or suspend an existing valid license or disqualify a person from receiving or renewing a license because of a person's conviction of a felony or misdemeanor if the crime directly relates to the practice of occupational therapy. Those crimes that the Board considers to be directly related to the duties and responsibilities of an occupational therapist or an occupational therapy assistant shall include, but are not limited to:(1) any felony that involves an act of fraud, dishonesty, or deceit;(2) any criminal violation of the Occupational Therapy Practice Act or other statutes regulating or pertaining to occupational therapy or the medical profession;(3) any crime involving moral turpitude ("moral turpitude" in this section refers to baseness, vileness, or dishonesty of a high degree);(4) murder;(5) assault;(6) burglary;(7) robbery;(8) theft;(9) rape or sexual abuse;(10) patient/client abuse;(11) injury to a child, elderly individual, or an individual with a disability;(12) child molestation, abuse, endangerment, or neglect;(13) felony conviction for driving while intoxicated, driving under the influence of alcohol or drugs, or driving while ability is impaired;(14) sale, distribution, or illegal possession of narcotics, controlled substances, or dangerous drugs;(15) tampering with a governmental record;(16) offenses that include attempting or conspiring to commit any of the offenses in this subsection.(b) In determining whether a crime not listed previously relates to occupational therapy, the Board will consider:(1) the nature and seriousness of the crime;(2) the relationship of the crime to the purposes for requiring a license to practice occupational therapy;(3) the extent to which a license might offer opportunities to engage in further criminal activity of the same type as that in which the person was previously engaged; and(4) the relationship of the crime to the ability, capacity, or fitness required to perform the duties and to discharge the responsibilities of an occupational therapist or occupational therapy assistant.(c) In review of a complaint alleging that the respondent/applicant has been convicted of a crime that directly relates to the duties and responsibilities of an occupational therapist or occupational therapy assistant, the Board shall consider the following evidence in determining the respondent's/applicant's present fitness to practice occupational therapy:(1) the extent and nature of the person's past criminal activity;(2) the age of the person at the time of commission of the crime;(3) conduct and work activity of the person prior to and after criminal activity;(4) evidence of rehabilitation while incarcerated or following release;(5) notarized letters of recommendation from prosecution, law enforcement, and correctional officers who prosecuted, arrested, or had custodial responsibility for the person; letters from the sheriff or chief of police where the person resides; and other persons having contact with the convicted person; and(6) records of steady employment, provision for dependents, payment of all court costs, supervision fees, fines, and restitution if ordered as a result of the person's conviction.(d) The burden and expense of providing and presenting the foregoing documentation to the Board shall be solely that of the respondent/applicant.</content><note type="source"><p>Source Note: The provisions of this §374.5 adopted to be effective March 1, 2017, 42 TexReg 698.</p></note></section></subchapter></chapter><chapter identifier="/us/state/tx/tac/t40/p12/c375"><num value="375">CHAPTER 375</num><heading>FEES</heading><subchapter identifier="/us/state/tx/tac/t40/p12/c375/sc"><num value="">SUBCHAPTER </num><heading></heading><section identifier="/us/state/tx/tac/t40/p12/c375/sc/s375.1"><num value="375.1">§375.1</num><heading>Fees</heading><content>(a) Fees are prescribed by the Executive Council and may be subject to change by legislative mandate; refer to 22 Texas Administrative Code §651.1 and §651.3. The fees are required to be paid before a license or a renewal is issued. The application fee will be submitted with the application and is non-refundable.(b) The Board will not refund any fee for an application that is denied. Applicants requesting that the Board cease the application process shall forfeit all fees paid. Such requests must be received by the Board in writing.(c) There shall be no refunds issued to individuals who have had their licenses suspended or revoked.</content><note type="source"><p>Source Note: The provisions of this §375.1 adopted to be effective October 11, 1994, 19 TexReg 7719; amended to be effective May 8, 1996, 21 TexReg 3718; amended to be effective August 24, 2008, 33 TexReg 6605; amended to be effective December 1, 2025, 50 TexReg 7583.</p></note></section></subchapter></chapter></part><part identifier="/us/state/tx/tac/t40/p15"><num value="15">PART 15</num><heading>TEXAS VETERANS COMMISSION</heading><chapter identifier="/us/state/tx/tac/t40/p15/c450"><num value="450">CHAPTER 450</num><heading>VETERANS COUNTY SERVICE OFFICERS CERTIFICATE OF TRAINING</heading><subchapter identifier="/us/state/tx/tac/t40/p15/c450/sc"><num value="">SUBCHAPTER </num><heading></heading><section identifier="/us/state/tx/tac/t40/p15/c450/sc/s450.1"><num value="450.1">§450.1</num><heading>Definitions</heading><content>The following words and terms, when used in this chapter, shall have the following meanings, unless the context clearly indicates otherwise.(1) Accreditation--Recognition by the United States Department of Veterans Affairs (VA) of representatives, attorneys, and agents to represent claimants.(2) Certificate of training--Certificate or transcript provided pursuant to Tex. Gov't Code § 434.038 to officers who complete all initial training requirements or who earn a minimum number of credit hours each fiscal year for completing training provided by the commission or completing other commission approved training.(3) Commission--The Texas Veterans Commission.(4) Credit hour--Unit of measuring credit earned for attending classroom or virtual training courses provided by the commission or other commission approved training.(5) Initial training--Introductory training provided to newly appointed officers.(6) Officer--Veterans County Service Officer or assistant veterans county service officer appointed by a county commissioners court.(7) Third party training--Any commission approved training or course of instruction provided by public or private entities.(8) Training event--Training or testing conducted by the commission.</content><note type="source"><p>Source Note: The provisions of this §450.1 adopted to be effective January 1, 1991, 15 TexReg 7374; amended to be effective June 3, 2018, 43 TexReg 3481; amended to be effective February 28, 2019, 44 TexReg 870; amended to be effective August 29, 2019, 44 TexReg 4513; amended to be effective August 31, 2023, 48 TexReg 4672.</p></note></section><section identifier="/us/state/tx/tac/t40/p15/c450/sc/s450.3"><num value="450.3">§450.3</num><heading>General Provisions</heading><content>(a) All newly appointed officers shall be provided a copy of information concerning initial training and maintenance of certification of training when information is received indicating an appointment has been made by a county commissioners court.(b) Completion of initial training shall constitute necessary training to issue a certificate of training for each fiscal year. Officers must complete initial training within one year from the date of appointment or the effective date of this rule.(c) Each officer shall be required to earn 12 credit hours each fiscal year to maintain the certificate of training. Credit hours may be accumulated in one year by completing training provided or approved by the commission. Credit hours may not be accumulated for the same subjects within the same fiscal year.(d) The commission may pay for attendance to one commission conducted training event per fiscal year to obtain the annual training requirement. However, if an officer has met the 12 hours required annually, then the commission shall not pay for the officer to attend subsequent training events.(e) All initial training and continuing training requirements are set and approved by the commission Claims Department Director or designee. Initial training and continuing training requirements shall be resubmitted and reevaluated biennially at a minimum.(f) Credit hours may be awarded for completing third party training if the training and testing is approved by the United States Department of Veterans Affairs (VA).(g) Acceptance of credit hours earned through third party training:(1) If training is provided by a VA Recognized Veterans Service Organization, whose accreditation training has been approved by the VA, the commission shall accept the training credit hours.(2) For all other third party training, the organization shall provide the commission with the following information to allow for the awarding of credit hours to officers:(A) name of organization providing the training;(B) documentation from the VA;(C) course title and description;(D) course outline; and(E) all course materials.(3) Third party training and testing must be evaluated by the commission Claims Department Director or designee in accordance with subsection (f) of this section. The number of credit hours to be awarded for third party training is determined by review of the third party training curriculum by the commission Claim Department Director. Review and awarding of credit hours will be conducted using the curriculum review matrix.(4) To receive credit hours for third party training, the training must be approved by the commission in accordance with paragraph (1) of this subsection prior to the officer's attendance. Officers must submit a request to the commission containing the following information:(A) name of the training provider;(B) title of the course;(C) certificate or verification of completion; and(D) date of completion.(h) After completion of all initial training requirements, a certificate of training shall be issued each October by the commission to each officer who completes the required number of credit hours of training and obtains the minimum required score on the annual certification test.(i) Inquiries concerning the certification process shall be directed to and answered by the commission Claims Department Director. Disputes shall be reviewed and a decision rendered by the commission Claims Department Director or designee. Disputes which remain unresolved shall be referred to the executive director of the commission or the executive director's designee. The decision of the executive director or the executive director's designee shall be final.</content><note type="source"><p>Source Note: The provisions of this §450.3 adopted to be effective January 1, 1991, 15 TexReg 7374; amended to be effective March 7, 2013, 38 TexReg 1374; amended to be effective June 3, 2018, 43 TexReg 3481; amended to be effective February 28, 2019, 44 TexReg 870; amended to be effective August 29, 2019, 44 TexReg 4513; amended to be effective August 31, 2023, 48 TexReg 4672.</p></note></section><section identifier="/us/state/tx/tac/t40/p15/c450/sc/s450.5"><num value="450.5">§450.5</num><heading>Documentation of Attendance</heading><content>(a) After the anniversary date, the commission shall provide a certificate of training the following October to officers who earned a minimum number of credit hours during the preceding year.(b) The commission shall inform each county commissioners court of its officer(s)' compliance with Texas Government Code §434.038.</content><note type="source"><p>Source Note: The provisions of this §450.5 adopted to be effective January 1, 1991, 15 TexReg 7374; amended to be effective June 3, 2018, 43 TexReg 3481; amended to be effective February 28, 2019, 44 TexReg 870; amended to be effective August 29, 2019, 44 TexReg 4513.</p></note></section></subchapter></chapter><chapter identifier="/us/state/tx/tac/t40/p15/c451"><num value="451">CHAPTER 451</num><heading>VETERANS COUNTY SERVICE OFFICERS ACCREDITATION</heading><subchapter identifier="/us/state/tx/tac/t40/p15/c451/sc"><num value="">SUBCHAPTER </num><heading></heading><section identifier="/us/state/tx/tac/t40/p15/c451/sc/s451.1"><num value="451.1">§451.1</num><heading>Definitions</heading><content>The following words and terms, when used in this chapter, shall have the following meanings, unless the context clearly indicates otherwise.(1) Accreditation--Recognition by the United States Department of Veterans Affairs (VA) of representatives, attorneys, and agents to represent claimants.(2) Accredited representative of the Texas Veterans Commission--A representative of the Texas Veterans Commission approved by the secretary for the preparation, presentation, and prosecution of claims under laws administered by the secretary.(3) Certificate of training--Documentation that an officer has met the requirements of §450.3 of this title (relating to General Provisions).(4) Commission--The Texas Veterans Commission which is a "Recognized Veterans Service Organization" by the United States Department of Veterans Affairs.(5) Credit hour--Unit of measuring credit earned for attending a classroom or virtual training courses provided by the commission or other commission approved training.(6) Initial training--Introductory training completed by newly appointed officers as defined in Chapter 450 of this title (relating to Certificate of Training).(7) Officer--Veterans County Service Officer or assistant veterans county service officer appointed by a county commissioners court.(8) Recognized Veterans Service Organization--An organization accredited by the United States Department of Veterans Affairs to represent claimants.(9) Recommendation-- the procedure by which the commission indicates to the secretary that it desires an officer to become an accredited representative of the Texas Veterans Commission and certifies that the officer meets the requirements of 38 C.F.R. § 14.629(a).(10) Representative--Person who has been recommended by a Recognized Veterans Service Organization and accredited by the United States Department of Veterans Affairs.(11) Secretary--The secretary of the United States Department of Veterans Affairs.(12) Training event -- Training or testing conducted by the commission.</content><note type="source"><p>Source Note: The provisions of this §451.1 adopted to be effective June 21, 1994, 19 TexReg 4426; amended to be effective June 3, 2018, 43 TexReg 3481; amended to be effective August 29, 2019, 44 TexReg 4514; amended to be effective August 31, 2023, 48 TexReg 4672.</p></note></section><section identifier="/us/state/tx/tac/t40/p15/c451/sc/s451.3"><num value="451.3">§451.3</num><heading>General Provisions</heading><content>(a) The commission shall provide all officers information concerning accreditation when the commission receives information is received indicating notice that an officer has been appointed by a county commissioners court.(b) Officers must meet the following minimum standards as set forth in 38 Code of Federal Regulations §14.629 for recommendation:(1) is a paid employee of the county working for it not less than 1,000 hours annually;(2) has successfully completed a course of training and an examination which have been approved by the appropriate VA district counsel within the state; and(3) will receive annual training to ensure continued qualification as a representative in the claims' process.(c) To receive recommendation, the officer must hold a current certificate of training from the commission under the provisions of §450.3 of this title (relating to General Provisions), have attained at least 24 credit hours after completion of initial training requirements, and pass a proficiency exam.(d) All officers must submit a formal written application for recommendation to the commission, which shall review the application for eligibility and approval.(e) Credit hours may be earned by attending training sponsored or conducted by organizations other than the commission in accordance with §450.3 of this title.(f) The commission may pay for an officer's attendance to one commission conducted training event per fiscal year to meet the officer's annual training requirement. However, if an officer has met the 12 hours required annually, then the commission shall not pay for the officer to attend subsequent training events.(g) Examinations for the initial recommendation and examinations to maintain recommendation will be administered by the commission at a location and time designated by the commission.(h) Officers must agree to follow procedures promulgated by the commission.(i) When all criteria have been met by the officer, the commission will request accreditation from the United States Department of Veterans Affairs via VA Form 21.(j) To maintain the recommendation of the commission, an officer must successfully pass, at least annually, a proficiency exam and hold a current certificate of training under the provisions of §450.3 of this title.(k) Inquiries concerning accreditation shall be directed to and answered by the commission Claims Department Director. Disputes shall be reviewed and a decision rendered by the commission Claims Department Director or designee. Disputes which remain unresolved shall be referred to the executive director of the commission or the executive director's designee. The decision of the executive director or the executive director's designee shall be final.(l) The executive director of the commission or the executive director's designee will request that the secretary:(1) revoke the accreditation of the officer upon termination of the officer;(2) suspend or revoke the accreditation of an officer for the officer's failure to:(A) maintain commission annual training requirements;(B) maintain the commission annual testing requirements;(C) maintain the VA's annual training requirements; or(D) maintain active use of the VA's database systems; and(3) suspend or revoke the accreditation of the officer for any situation in which the action is deemed appropriate.</content><note type="source"><p>Source Note: The provisions of this §451.3 adopted to be effective June 21, 1994, 19 TexReg 4426; amended to be effective January 1, 2007, 31 TexReg 10815; amended to be effective March 7, 2013, 38 TexReg 1375; amended to be effective June 3, 2018, 43 TexReg 3481; amended to be effective February 28, 2019, 44 TexReg 871; amended to be effective August 29, 2019, 44 TexReg 4514; amended to be effective August 31, 2023, 48 TexReg 4672.</p></note></section></subchapter></chapter><chapter identifier="/us/state/tx/tac/t40/p15/c452"><num value="452">CHAPTER 452</num><heading>ADMINISTRATION GENERAL PROVISIONS</heading><subchapter identifier="/us/state/tx/tac/t40/p15/c452/sc"><num value="">SUBCHAPTER </num><heading></heading><section identifier="/us/state/tx/tac/t40/p15/c452/sc/s452.1"><num value="452.1">§452.1</num><heading>Charges for Copies of Public Records</heading><content>(a) The charge to any person requesting copies of any public record of the Texas Veterans Commission will be calculated according to the charges established by the Office of the Attorney General.(b) Copies of public records shall be furnished without charge or at a reduced charge if the executive director determines that waiver or reduction of the fee is in the public interest because furnishing the information can be considered as primarily benefiting the general public.</content><note type="source"><p>Source Note: The provisions of this §452.1 adopted to be effective August 29, 1994, 19 TexReg 6472; amended to be effective January 1, 2007, 31 TexReg 10816; amended to be effective November 30, 2014, 39 TexReg 9267.</p></note></section><section identifier="/us/state/tx/tac/t40/p15/c452/sc/s452.2"><num value="452.2">§452.2</num><heading>Advisory Committees</heading><content>(a) The commission may establish advisory committees in accordance with Texas Government Code, Chapter 2110. The following shall apply to each advisory committee: (1) Agency role. The executive director may direct one or more staff members of the agency to assist each advisory committee. These positions shall be non-voting. (2) Committee size and appointment of members. Each advisory committee shall be composed of nine members appointed by the commission. Members of each committee serve at the pleasure of the commission and may be removed from a committee by a majority vote of the commission.(3) Committee chair and vice chair.(A) The committee chair will be selected by the commission. The committee chair shall serve a term as determined by the commission. The committee chair determines the agenda for each meeting. (B) The vice chair of each advisory committee is selected by the committee's voting members. Committee vice chair term lengths are one or two-year terms as determined by the committee's voting members and are limited to two years of service as the vice chair during their appointment to the committee. The vice chair shall perform the chair duties when the chair is unavailable or unable to perform. (4) Conditions of membership. (A) Terms of service. The term of office for each member will be determined by the commission in order to achieve staggered terms. In the event that a member cannot complete his or her term, or is removed by the commission, the commission shall appoint a qualified replacement to serve the remainder of the term. (B) Participation. Participation on an advisory committee is voluntary. (C) Compensation. Advisory committee members appointed by the commission shall serve without compensation. (D) Reimbursement. The commission may, if authorized by law and the executive director, reimburse a member of a committee for reasonable and necessary expenses up to four times per calendar year. Current rules and laws governing reimbursement of expenses for state employees shall govern reimbursement of expenses for advisory committee members. (5) Training. Each committee member shall receive initial training to ensure compliance with the Open Meetings Act. Training should also include an overview of the agency's mission and organizational structure, the overall purpose or goals of the committee, as well as other information that will assist members to accomplish committee goals. (6) Responsibilities. Each advisory committee will review issues and provide advice to the commission, as charged by the commission. (7) Meetings. Each advisory committee shall meet as needed by the commission. Advisory committee meetings may be conducted by video conference. Each advisory committee shall be subject to meeting at the call of the committee chair or designee. A quorum shall consist of a majority of the committee membership. The committees shall comply with Open Meetings Act requirements as provided in Texas Government Code, Chapter 551. (8) Reports. The committee chair or designee of each advisory committee shall regularly report to the commission regarding its activities and recommendations, and, when requested by the commission, shall file with the commission a report containing: (A) the minutes of meetings; (B) a memo summarizing the meetings; and (C) a list of the committee's recommendations, if any. (9) Evaluation and duration. Each advisory committee shall remain in existence as long as deemed necessary by the commission based on a regular evaluation of the continuing need for each advisory committee. The executive director or staff may assist with this evaluation at the direction of the commission. (10) Formation of subcommittees. Each advisory committee shall notify the commission of any adopted subcommittees and their purpose in its quarterly report. (b) Fund for Veterans' Assistance Advisory Committee. (1) Purpose. The purpose of the Fund for Veterans' Assistance Advisory Committee is to evaluate grant applications and make recommendations to the commission. (2) Committee member qualifications. (A) Committee members may include representatives from veterans' organizations, non-profit or philanthropic organizations, veterans or family members of veterans, and other individuals with the experience and knowledge to assist the committee with achievement of its purpose. (B) Committee members may not include officers, directors or employees of organization or entities that have an open Fund for Veterans' Assistance grant during the member's tenure or that intend to submit an application for a Fund for Veterans' Assistant grant. (C) Committee members will be required to sign non-disclosure and conflict of interest agreements before reviewing grant applications. Committee members found in violation of the non-disclosure agreement will be prohibited from evaluating grant applications and making recommendations to the commission. Committee members found in violation of any agreement may also be removed from the committee by the commission. (3) Meetings. The Fund for Veterans' Assistance Advisory Committee shall meet as needed to make grant recommendations to the commission.</content><note type="source"><p>Source Note: The provisions of this §452.2 adopted to be effective November 15, 2007, 32 TexReg 8168; amended to be effective December 12, 2011, 36 TexReg 8387; amended to be effective May 24, 2012, 37 TexReg 3737; amended to be effective May 30, 2013, 38 TexReg 3357; amended to be effective November 30, 2014, 39 TexReg 9267; amended to be effective June 3, 2018, 43 TexReg 3482; amended to be effective June 7, 2020, 45 TexReg 3640; amended to be effective June 3, 2021, 46 TexReg 3419; amended to be effective January 1, 2023, 47 TexReg 9037; amended to be effective June 1, 2023, 48 TexReg 2728; amended to be effective March 11, 2025, 50 TexReg 1827.</p></note></section><section identifier="/us/state/tx/tac/t40/p15/c452/sc/s452.3"><num value="452.3">§452.3</num><heading>Negotiated Rulemaking</heading><content>(a) The commission's policy is to encourage the use of negotiated rulemaking for the adoption of commission rules in appropriate situations.(b) The commission's general counsel or designee shall be the commission's negotiated rulemaking coordinator (NRC). The NRC shall perform the following functions, as required:(1) coordinate the implementation of the policy set out in subsection (a) of this section, and in accordance with the Negotiated Rulemaking Act, Chapter 2008, Texas Government Code;(2) serve as a resource for any staff training or education needed to implement negotiated rulemaking procedures; and(3) collect data to evaluate the effectiveness of negotiated rulemaking procedures implemented by the commission.(c) The commission, its rules committee, or the executive director may direct the NRC to begin negotiated rulemaking procedures on a specified subject.</content><note type="source"><p>Source Note: The provisions of this §452.3 adopted to be effective November 15, 2007, 32 TexReg 8168; amended to be effective November 30, 2014, 39 TexReg 9267.</p></note></section><section identifier="/us/state/tx/tac/t40/p15/c452/sc/s452.4"><num value="452.4">§452.4</num><heading>Alternative Dispute Resolution</heading><content>(a) The commission's policy is to encourage the resolution and early settlement of internal and external disputes, through voluntary settlement processes, which may include any procedure or combination of procedures described by Chapter 154, Civil Practice and Remedies Code. Any ADR procedure used to resolve disputes before the commission shall comply with the requirements of Chapter 2009, Texas Government Code, and the Administrative Procedure Act, Chapter 2001, Texas Government Code.(b) The commission's Director of Resource Management or designee shall be the commission's dispute resolution coordinator (DRC). The DRC shall perform the following functions, as required:(1) coordinate the implementation of the policy set out in subsection (a) of this section;(2) serve as a resource for any staff training or education needed to implement the ADR procedures; and(3) collect data to evaluate the effectiveness of ADR procedures implemented by the commission.(c) The commission, a committee of the commission, a respondent in a disciplinary matter pending before the commission, the executive director, or a commission employee engaged in a dispute with the executive director or another employee, may request that the contested matter be submitted to ADR. The request must be in writing, be addressed to the DRC, and state the issues to be determined. The person requesting ADR and the DRC will determine which method of ADR is most appropriate. If the person requesting ADR is the respondent in a disciplinary proceeding, the executive director shall determine if the board will participate in ADR or proceed with the commission's normal disciplinary processes. (d) Any costs associated with retaining an impartial third party mediator, moderator, facilitator, or arbitrator, shall be borne by the party requesting ADR. (e) Agreements of the parties to ADR must be in writing and are enforceable in the same manner as any other written contract. Confidentiality of records and communications related to the subject matter of an ADR proceeding shall be governed by §154.073 of the Civil Practice and Remedies Code. (f) If the ADR process does not result in an agreement, the matter shall be referred to the commission for other appropriate disposition.</content><note type="source"><p>Source Note: The provisions of this §452.4 adopted to be effective November 15, 2007, 32 TexReg 8169; amended to be effective November 30, 2014, 39 TexReg 9267; amended to be effective November 28, 2022, 47 TexReg 7911.</p></note></section><section identifier="/us/state/tx/tac/t40/p15/c452/sc/s452.5"><num value="452.5">§452.5</num><heading>Petition for Adoption of Rules</heading><content>(a) Any interested person or organization may petition the commission requesting the adoption or amendment of a rule.(b) For the purpose of interpreting this section, the term "rule" shall have the same meaning as contained in Texas Government Code, §2001.003.(c) Petitions for adoption of rules must be submitted in writing and directed to the commission's executive director.(d) The petitioner may either hand deliver the petition to the commission's central office at 1700 North Congress Avenue, Suite 800, Austin, Texas 78701, or mail the petition to P.O. Box 12277, Austin, Texas 78711-2277.(e) For purposes of calculating days under this section, the date of submission of a petition under this section shall be the date the petition is hand delivered to the commission, or if the petition was sent by mail or carrier, the date it is date-stamped according to regular agency incoming mail procedures.(f) The petition must include the following minimum requirements:(1) specify or otherwise make clear that the petition is made pursuant to the provisions of the Administrative Procedure Act;(2) clearly state the body or substance of the rule requested for adoption, and, if appropriate, relate the requested rule to an adopted rule or rules of the commission;(3) contain the full name and address of the petitioner; and(4) be signed by the petitioner.(g) The executive director or the executive director's designee, shall:(1) acknowledge receipt of the petition in writing and include in the letter the date the petition was received; and(2) communicate with the petitioner, if necessary, to clarify the requested rule or to clarify other relevant information contained in the petition.(h) Not later than the 60th day after the date of submission of a petition under this section, the executive director shall either:(1) deny the petition in writing, stating the reasons for the denial; or(2) initiate rulemaking procedures and inform the petitioner of the date rule action by the commission is scheduled pursuant to Texas Government Code, Chapter 2001.(i) The executive director shall provide copies of all petitions, whether denied or approved, to the commissioners prior to a scheduled commission meetings for review.</content><note type="source"><p>Source Note: The provisions of this §452.5 adopted to be effective November 15, 2007, 32 TexReg 8169; amended to be effective November 30, 2014, 39 TexReg 9267.</p></note></section><section identifier="/us/state/tx/tac/t40/p15/c452/sc/s452.6"><num value="452.6">§452.6</num><heading>Public Participation</heading><content>(a) The commission shall include "public comment" as a topic on the agenda for each regularly scheduled commission meeting.(b) A person wishing to address the commission about any subject under the commission's jurisdiction shall fill out a Public Comment form prior to the start of the meeting and submit the form to the chair.(c) The chair will recognize those requests to address the commission during the "public comment" portion of a meeting.(d) A person may address the commission regarding any issue related to the jurisdiction of the commission. The chair or executive director may impose a time limit for those wishing to address or make a presentation to the commission. The allotted period for a person addressing the commission may only be extended by commission vote and may not be extended by another person delegating, ceding, passing or otherwise granting allotted comment time in lieu of addressing the commission.(e) The commission may not comment or make a decision about a subject not listed on the agenda except to reply with:(1) a statement of specific factual information in response to the inquiry;(2) a recitation of existing policy in response to the inquiry; or(3) a proposal to place the subject on the agenda for a subsequent commission meeting.(f) At least 20 days prior to a meeting, a person from the general public may submit a written request to the chair or executive director for an item to be placed on the meeting agenda. The executive director shall forward such requests to the chair. The chair shall consider the request but has the discretion to include the requested item on the agenda or to only allow for comment as described in subsections (a) - (e) of this section.</content><note type="source"><p>Source Note: The provisions of this §452.6 adopted to be effective November 15, 2007, 32 TexReg 8169.</p></note></section><section identifier="/us/state/tx/tac/t40/p15/c452/sc/s452.7"><num value="452.7">§452.7</num><heading>Commission Duties</heading><content>(a) The commission is composed of five members appointed by the governor, with advice and consent of the senate. The commission adopts rules for the agency, and employs and directs the executive director. The commissioners retain and exercise all authority and responsibility assigned to them by law that has not been delegated to the executive director.(b) The executive director manages the day-to-day business of the commission, employs staff, and carries out other duties and responsibilities assigned by law or delegated by the commission.(c) A delegation of authority to the executive director must be made by the commission in an open meeting. The commission may review, modify, or ratify a delegation at any open meeting. A change in membership of the commission does not void an existing delegation of authority; it remains in effect until another one is approved by a majority vote of the commission at an open meeting.(d) All decisions of the commission shall be by majority vote of a quorum of commissioners present and voting.</content><note type="source"><p>Source Note: The provisions of this §452.7 adopted to be effective June 5, 2008, 33 TexReg 4344.</p></note></section><section identifier="/us/state/tx/tac/t40/p15/c452/sc/s452.8"><num value="452.8">§452.8</num><heading>Employee Training and Education</heading><content>(a) With the approval of the executive director, the commission may make available to its administrators and employees funds for training that improves the performance of the employee's current or prospective duty assignment in accordance with the State Employees Training Act, Government Code, Chapter 656, Subchapter C.(b) In order to be eligible for Agency supported training, the administrator or employee must demonstrate to the satisfaction of the executive director that the training is related to the duties or prospective duties of the administrator or employee.(c) Eligible training expenses that are approved by the executive director may include, as appropriate, salary, fees, travel and living expenses, and/or training materials for the following:(1) in-service training and education; and/or(2) out-of-agency staff development.(d) The commission may pay all or part of the expenses related to training as determined by the executive director, and may be adjusted at any time for any reason.(e) An employee who completes training to obtain a certification for which the commission has provided all or part of the required fees must agree to remain in the employment of the commission for a period of time as specified in the commission's Employee Policy and Administrative Procedure Manual.(f) The commission may impose such terms and conditions as may be reasonable and appropriate, including but not limited to, specifying the circumstances under which the assistance may be terminated and the employee may be required to repay the amount of assistance.</content><note type="source"><p>Source Note: The provisions of this §452.8 adopted to be effective June 8, 2011, 36 TexReg 3507; amended to be effective November 30, 2014, 39 TexReg 9267; amended to be effective August 26, 2015, 40 TexReg 5351.</p></note></section><section identifier="/us/state/tx/tac/t40/p15/c452/sc/s452.9"><num value="452.9">§452.9</num><heading>Sick Leave Pool.</heading><content>(a) A sick leave pool is established to alleviate hardship caused to an employee and the employee's immediate family if a catastrophic injury or illness forces the employee to exhaust all eligible leave time earned by that employee and to lose compensation time from the state. (b) The Human Resources Director is designated as the pool administrator and shall develop and maintain the necessary policy for the administration of the sick leave pool consistent with Texas Government Code, Chapter 661. (c) All contributions to the sick leave pool are voluntary. Employees who make contributions to the pool may not stipulate who receives their contributions. (d) An employee may only withdraw time from the sick leave pool in the case of a catastrophic illness or injury of the employee or the employee's immediate family member. The employee must have exhausted all eligible paid leave prior to being awarded sick leave from the pool. The pool administrator shall review the request and determine the amount of time an employee may withdraw from the pool.</content><note type="source"><p>Source Note: The provisions of this §452.9 adopted to be effective March 11, 2025, 50 TexReg 1827.</p></note></section><section identifier="/us/state/tx/tac/t40/p15/c452/sc/s452.10"><num value="452.10">§452.10</num><heading>Family Leave Pool.</heading><content>(a) A family leave pool is established to provide eligible employees more flexibility in bonding with and caring for children during a child's first year following birth, adoption, or foster placement, and caring for a seriously ill family member or the employee's own serious illness, including pandemic-related illnesses or complications caused by a pandemic. (b) All employee contributions to the family leave pool are voluntary. There is no limitation on the amount or frequency of contributions. Employees who contribute accrued sick or vacation leave hours to the pool may not designate the contributed hours for use by a specific employee. Employees who contribute leave hours to the pool may not withdraw the contributed hours.(c) An employee may only apply to withdraw time from the family leave pool if the employee has exhausted all eligible personal leave due to: (1) the birth of a child; (2) the placement of a foster child or adoption of a child under 18 years of age; (3) the placement of any person 18 years of age or older requiring guardianship; (4) a serious illness to an immediate family member of the employee, including pandemic-related illness; (5) an extenuating circumstance created by an ongoing pandemic, including providing essential care to a family member; or (6) a previous donation of time to the pool.(d) The Texas Veterans Commission's Human Resources Director is designated as the pool administrator. (e) The pool administrator shall develop and maintain a policy, operating procedures, and forms, as necessary, for the administration of the family leave pool subject to approval by the Executive Director.</content><note type="source"><p>Source Note: The provisions of this §452.10 adopted to be effective March 11, 2025, 50 TexReg 1827.</p></note></section></subchapter></chapter><chapter identifier="/us/state/tx/tac/t40/p15/c453"><num value="453">CHAPTER 453</num><heading>HISTORICALLY UNDERUTILIZED BUSINESS PROGRAM</heading><subchapter identifier="/us/state/tx/tac/t40/p15/c453/sc"><num value="">SUBCHAPTER </num><heading></heading><section identifier="/us/state/tx/tac/t40/p15/c453/sc/s453.1"><num value="453.1">§453.1</num><heading>Historically Underutilized Business Program</heading><content>In accordance with Texas Government Code §2161.003, the commission adopts by reference the rules promulgated by the Comptroller of Public Accounts as set forth in 34 TAC Part 1, Chapter 20, Subchapter B, regarding the Historically Underutilized Business Program. The Comptroller of Public Accounts rules are located at the Office of the Secretary of State's website: www.sos.state.tx.us/tac/index.shtml.</content><note type="source"><p>Source Note: The provisions of this §453.1 adopted to be effective May 28, 2001, 26 TexReg 3829; amended to be effective January 1, 2007, 31 TexReg 10816; amended to be effective November 30, 2014, 39 TexReg 9268.</p></note></section></subchapter></chapter><chapter identifier="/us/state/tx/tac/t40/p15/c456"><num value="456">CHAPTER 456</num><heading>CONTRACT NEGOTIATION AND MEDIATION</heading><subchapter identifier="/us/state/tx/tac/t40/p15/c456/sc"><num value="">SUBCHAPTER </num><heading></heading><section identifier="/us/state/tx/tac/t40/p15/c456/sc/s456.1"><num value="456.1">§456.1</num><heading>Purpose</heading><content>Purpose. This chapter governs the negotiation and mediation of certain breach of contract claims asserted by contractors against the agency under Chapter 2260 of the Texas Government Code.</content><note type="source"><p>Source Note: The provisions of this §456.1 adopted to be effective June 5, 2008, 33 TexReg 4344.</p></note></section><section identifier="/us/state/tx/tac/t40/p15/c456/sc/s456.2"><num value="456.2">§456.2</num><heading>Definitions</heading><content>The following words and terms, when used in this chapter, shall have the following meaning, unless the context clearly indicates otherwise:(1) Agency--The Texas Veterans Commission.(2) Claim--A written demand for damages by the contractor that is based upon the agency's alleged breach of the contract.(3) Contract--A written contract between the agency and a contractor, under the terms of which the contractor agrees to either:(A) provide goods or services, by sale or lease, to or for the agency; or(B) perform a project as defined by Government Code, §2166.001.(4) Contractor--Independent contractor who has entered into a contract directly with the agency. The term does not include:(A) the contractor's subcontractor, officer, employee, agent, or other person who furnishes goods or services to the contractor;(B) an employee of the agency; or(C) a student at an institution of higher education.(5) Counterclaim--A demand by the agency that is based upon the contractor's claim.(6) Day--A calendar day. If an act is required to occur on a Saturday, Sunday, or holiday, then the next working day that is not one of these days is counted as the required day for the purpose of this act.(7) Event--An act or omission, or a series of acts or omissions that give rise to a claim. The following list contains illustrative examples of events, subject to the specific terms of the contract:(A) Examples of events in the context of a contract for goods or services:(i) the failure of the agency to timely pay for the goods or services;(ii) the failure of the agency to pay the balance due and owing on the contract price, including amounts that arose from orders for additional work, after deduction of any amount that is owed to the agency for work that has not been performed under the contract or in substantial compliance with the contract terms;(iii) the suspension, cancellation, or termination of the contract;(iv) final rejection wholly or partly of the goods or services that the contractor has tendered;(v) repudiation of the entire contract prior to or at the outset of performance by the contractor;(vi) withholding liquidated damages from final payment to the contractor.(B) Examples of events in the context of a project:(i) the failure of the agency to timely pay the unpaid balance of the contract price following final acceptance of the project;(ii) the failure of the agency to make timely progress payments as required under the contract;(iii) the failure of the agency to pay the balance that is due and owing on the contract price, including amounts that arose from orders for additional work, after deduction of any amount that is owed the agency for work that has not been performed under the contract or in substantial compliance with the contract terms;(iv) the failure to grant time extensions to which the contractor is entitled under the terms of the contract;(v) the failure to compensate the contractor for occurrences for which the contract provides a remedy;(vi) suspension, cancellation or termination of the contract;(vii) rejection by the agency, wholly or partly, of the "work," as defined under the contract, that the contractor has tendered;(viii) repudiation of the entire contract prior to or at the outset of performance by the contractor;(ix) withholding liquidated damages from final payment to the contractor;(x) refusal, in whole or in part, of a written request that the contractor has made in compliance with the contract to adjust the contract price, the contract time, or the scope of work.(C) The lists in subparagraphs (A) and (B) of this paragraph should not be considered exhaustive, but are merely illustrative in nature and do not expand the limits of Chapter 2260 of the Government Code.(8) Goods--Supplies, materials or equipment.(9) Parties--The contractor that has entered into a contract with the agency, in connection with which a claim of breach of contract has been filed under this chapter.(10) Project--A building construction project as defined under Government Code, §2166.001, that is financed, wholly or partly, by a specific appropriation, bond issue, or federal money, including the construction of:(A) a building, structure, or appurtenant facility or utility, including the acquisition and installation of original equipment and original furnishing; and(B) an addition to, or alteration, modification, rehabilitation, or repair of, an existing building, structure, or appurtenant facility or utility.(11) Services--The furnishing of skilled or unskilled labor, or of consulting or professional work, or a combination thereof, excluding the labor of an employee of the agency.</content><note type="source"><p>Source Note: The provisions of this §456.2 adopted to be effective June 5, 2008, 33 TexReg 4344.</p></note></section><section identifier="/us/state/tx/tac/t40/p15/c456/sc/s456.3"><num value="456.3">§456.3</num><heading>Prerequisites to Suit</heading><content>The procedures that are contained in this chapter are exclusive and required prerequisites to suit under Civil Practice and Remedies Code, Chapter 107, and Government Code, Chapter 2260.</content><note type="source"><p>Source Note: The provisions of this §456.3 adopted to be effective June 5, 2008, 33 TexReg 4344.</p></note></section><section identifier="/us/state/tx/tac/t40/p15/c456/sc/s456.4"><num value="456.4">§456.4</num><heading>Sovereign Immunity</heading><content>This chapter does not waive the agency's sovereign immunity to suit or liability.</content><note type="source"><p>Source Note: The provisions of this §456.4 adopted to be effective June 5, 2008, 33 TexReg 4344.</p></note></section><section identifier="/us/state/tx/tac/t40/p15/c456/sc/s456.5"><num value="456.5">§456.5</num><heading>Notice of Claim of Breach of Contract</heading><content>(a) A contractor who asserts a claim of breach of contract under Government Code, Chapter 2260, must file a notice of the claim as provided under this section.(b) The notice of claim shall:(1) be written and signed by the contractor or the contractor's authorized representative;(2) be delivered by hand, certified mail return receipt requested, or other verifiable delivery service, to the agency officer who is designated in the contract to receive a notice of claim of breach of contract under Government Code, Chapter 2260; if no person is designated in the contract, then the notice shall be delivered to the agency's chief administrative officer; and(3) state in detail:(A) the nature of the alleged breach of contract, including the date of the event that the contractor cites as the basis of the claim and each contractual provision that the contractor alleges has been breached;(B) a description of damages that resulted from the alleged breach, including the amount and method that the contractor has used to calculate those damages; and(C) the legal theory for recovery, including the causal relationship between the alleged breach and the damages that the contractor claims.(c) In addition to the mandatory contents of the notice of claim that are required under subsection (b) of this section, the contractor may submit supporting documentation or other tangible evidence to facilitate the agency's evaluation of the contractor's claim.(d) The notice of claim shall be delivered not later than 180 days after the date of the event that the contractor cites as the basis of the claim.</content><note type="source"><p>Source Note: The provisions of this §456.5 adopted to be effective June 5, 2008, 33 TexReg 4344.</p></note></section><section identifier="/us/state/tx/tac/t40/p15/c456/sc/s456.6"><num value="456.6">§456.6</num><heading>Agency Counterclaim</heading><content>(a) To assert a counterclaim under Government Code, Chapter 2260, the agency shall file a notice of the counterclaim as provided under this section.(b) The notice of counterclaim shall:(1) be written;(2) be delivered by hand, certified mail return receipt requested, or other verifiable delivery service to the contractor or representative of the contractor who signed the notice of claim of breach of contract; and(3) state in detail:(A) the nature of the counterclaim; and(B) a description of the damages or offsets that the agency seeks, including the amount and method that the agency has used to calculate those damages or offsets; and(C) the legal theory for recovery under the counterclaim.(c) In addition to the mandatory contents of the notice of counterclaim that are required under subsection (b) of this section, the agency may submit documentation or other tangible evidence to aid the contractor's evaluation of the agency's counterclaim.(d) The notice of counterclaim shall be delivered to the contractor not later than 90 days after the agency's receipt of the contractor's notice of claim.(e) Nothing herein precludes the agency from initiation of a lawsuit for damages against the contractor.</content><note type="source"><p>Source Note: The provisions of this §456.6 adopted to be effective June 5, 2008, 33 TexReg 4344.</p></note></section><section identifier="/us/state/tx/tac/t40/p15/c456/sc/s456.7"><num value="456.7">§456.7</num><heading>Duty to Negotiate</heading><content>The parties shall negotiate in accordance with the timetable set forth in §456.8 of this title (relating to Negotiation Timetable) to attempt to resolve all claims and counterclaims. No party is obligated to settle with the other party as a result of the negotiation.</content><note type="source"><p>Source Note: The provisions of this §456.7 adopted to be effective June 5, 2008, 33 TexReg 4344.</p></note></section><section identifier="/us/state/tx/tac/t40/p15/c456/sc/s456.8"><num value="456.8">§456.8</num><heading>Negotiation Timetable</heading><content>(a) Following receipt of a contractor's notice of claim, the agency's Director of Resource Management or designee, shall review the contractor's claim and the agency's counterclaim, if any, and initiate negotiations with the contractor to attempt to resolve the claim and counterclaim.(b) Subject to subsection (c) of this section, the parties shall begin negotiations within a reasonable period of time, not to exceed 60 calendar days following the later of:(1) the date of termination of the contract;(2) the completion date in the original contract; or(3) the date the agency receives the contractor's notice of claim.(c) The agency may delay negotiations until after the 180th day from the date of the event giving rise to the claim of breach of contract by delivering written notice to the contractor that the commencement of negotiations will be delayed and notice of when the agency will be ready to begin negotiations.(d) The parties may conduct negotiations according to an agreed schedule as long as they complete the negotiations no later than 270 days after the agency receives the contractor's notice of claim.(e) The parties may agree in writing on or before the 270th day after the agency receives the contractor's notice of claim to extend the time for negotiations. The agreement shall be signed by representatives of the parties with authority to bind each respective party and shall provide for the extension of the statutory negotiation period until a date certain. The parties may enter into a series of written extension agreements that comply with the requirements of this section.(f) The contractor may request a contested case hearing before the State Office of Administrative Hearings on or before the 270th day after the agency receives the contractor's notice of claim, or the expiration of any extension agreed to by the parties.(g) The parties may agree to mediate the dispute at any time before the 270th day after the agency receives the contractor's notice of claim or before the expiration of any extension agreed to by the parties pursuant to subsection (e) of this section.</content><note type="source"><p>Source Note: The provisions of this §456.8 adopted to be effective June 5, 2008, 33 TexReg 4344; amended to be effective September 4, 2024, 49 TexReg 6751.</p></note></section><section identifier="/us/state/tx/tac/t40/p15/c456/sc/s456.9"><num value="456.9">§456.9</num><heading>Conduct of Negotiation</heading><content>(a) The negotiation may be conducted by any method, technique, or procedure authorized under the contract or agreed upon by the parties.(b) To facilitate the meaningful evaluation and negotiation of the claim and any counterclaim, the parties may exchange relevant documents that support their respective claims, defenses, counterclaims or positions.(c) Material submitted pursuant to this section and claimed to be confidential by the contractor shall be handled pursuant to the requirements of the Public Information Act, Government Code, Chapter 552.</content><note type="source"><p>Source Note: The provisions of this §456.9 adopted to be effective June 5, 2008, 33 TexReg 4344.</p></note></section><section identifier="/us/state/tx/tac/t40/p15/c456/sc/s456.10"><num value="456.10">§456.10</num><heading>Settlement Approval Procedures</heading><content>The parties' settlement approval procedures shall be disclosed prior to, or at the beginning of, negotiations. To the extent possible, the parties shall select negotiators who are knowledgeable about the subject matter of the dispute, who are in a position to reach agreement, and who can credibly recommend approval of an agreement.</content><note type="source"><p>Source Note: The provisions of this §456.10 adopted to be effective June 5, 2008, 33 TexReg 4344.</p></note></section><section identifier="/us/state/tx/tac/t40/p15/c456/sc/s456.11"><num value="456.11">§456.11</num><heading>Settlement Agreement</heading><content>(a) A settlement agreement may resolve an entire claim or any designated and severable portion of a claim.(b) To be enforceable, a settlement agreement must be in writing and signed by representatives of the contractor and the agency who have authority to bind each respective party.(c) A partial settlement does not waive a party's rights under the Government Code, Chapter 2260, as to the parts of the claim or counterclaim that are not resolved.</content><note type="source"><p>Source Note: The provisions of this §456.11 adopted to be effective June 5, 2008, 33 TexReg 4344.</p></note></section><section identifier="/us/state/tx/tac/t40/p15/c456/sc/s456.12"><num value="456.12">§456.12</num><heading>Costs of Negotiation</heading><content>Unless the parties agree otherwise, each party shall be responsible for its own costs incurred in connection with a negotiation, including, without limitation, the costs of attorney's fees, consultant's fees, and expert's fees.</content><note type="source"><p>Source Note: The provisions of this §456.12 adopted to be effective June 5, 2008, 33 TexReg 4344.</p></note></section><section identifier="/us/state/tx/tac/t40/p15/c456/sc/s456.13"><num value="456.13">§456.13</num><heading>Request for Contested Case Hearing</heading><content>(a) If a claim for breach of contract is not resolved in its entirety on or before the 270th day after the agency receives the notice of claim, or after the expiration of any extension, the contractor may file a request with the agency for a contested case hearing before State Office of Administrative Hearings (SOAH).(b) A request for a contested case hearing shall state the legal and factual basis for the claim and shall be delivered to the agency's Director of Resource Management or the person designated in the contract to receive notice, within 30 days after the 270th day or the expiration of any agreed extensions.(c) The agency shall forward the contractor's request for a contested case hearing to SOAH within thirty days after receipt of the request.(d) The parties may agree to submit the case to SOAH before the 270th day after the notice of claim is received by the agency if they have achieved a partial resolution of the claim or if an impasse has been reached in the negotiations and proceeding to a contested case hearing would serve the interests of justice.</content><note type="source"><p>Source Note: The provisions of this §456.13 adopted to be effective June 5, 2008, 33 TexReg 4344; amended to be effective September 4, 2024, 49 TexReg 6751.</p></note></section><section identifier="/us/state/tx/tac/t40/p15/c456/sc/s456.14"><num value="456.14">§456.14</num><heading>Mediation of Contract Claims</heading><content>The contractor and the agency may agree to mediate the claim and counterclaim at any time.</content><note type="source"><p>Source Note: The provisions of this §456.14 adopted to be effective June 5, 2008, 33 TexReg 4344.</p></note></section><section identifier="/us/state/tx/tac/t40/p15/c456/sc/s456.15"><num value="456.15">§456.15</num><heading>Conduct of Mediation</heading><content>(a) A mediator may not impose his or her own judgment on the issues for that of the parties. The mediator must be acceptable to both parties.(b) The mediation is subject to the provisions of the Governmental Dispute Resolution Act, Government Code, Chapter 2009.(c) To facilitate a meaningful opportunity for settlement, the parties shall, to the extent possible, select representatives who are knowledgeable about the dispute, who are in a position to reach agreement, or who can credibly recommend approval of an agreement.</content><note type="source"><p>Source Note: The provisions of this §456.15 adopted to be effective June 5, 2008, 33 TexReg 4344.</p></note></section><section identifier="/us/state/tx/tac/t40/p15/c456/sc/s456.16"><num value="456.16">§456.16</num><heading>Costs of Mediation</heading><content>The costs of the mediator shall be divided equally between the parties. Unless the contractor and the agency agree otherwise, each party shall be responsible for its own costs incurred in connection with the mediation, including costs of document reproduction for documents requested by such party, attorney's fees, and consultant or expert fees.</content><note type="source"><p>Source Note: The provisions of this §456.16 adopted to be effective June 5, 2008, 33 TexReg 4344.</p></note></section><section identifier="/us/state/tx/tac/t40/p15/c456/sc/s456.17"><num value="456.17">§456.17</num><heading>Settlement Agreement</heading><content>(a) A settlement agreement reached during, or as a result of mediation, that resolves an entire claim or any designated and severable portion of a claim shall be in writing and signed by representatives of the contractor and the agency who have authority to bind each respective party.(b) If the settlement agreement does not resolve all issues raised by the claim and counterclaim, the agreement shall identify the issues that are not resolved.(c) A partial settlement does not waive a contractor's rights under the Government Code, Chapter 2260, as to the parts of the claim that are not resolved.</content><note type="source"><p>Source Note: The provisions of this §456.17 adopted to be effective June 5, 2008, 33 TexReg 4344.</p></note></section></subchapter></chapter><chapter identifier="/us/state/tx/tac/t40/p15/c457"><num value="457">CHAPTER 457</num><heading>PROTESTS OF AGENCY PURCHASES</heading><subchapter identifier="/us/state/tx/tac/t40/p15/c457/sc"><num value="">SUBCHAPTER </num><heading></heading><section identifier="/us/state/tx/tac/t40/p15/c457/sc/s457.1"><num value="457.1">§457.1</num><heading>Protests</heading><content>(a) The following words and terms, when used in this chapter, shall have the following meaning unless the context clearly indicates otherwise.(1) Agency--The Texas Veterans Commission.(2) Commissioners--Commissioners of the Texas Veterans Commission.(3) Interested parties--All vendors who have submitted bids or proposals for the provision of goods or services pursuant to a contract with the agency.(b) Any actual or prospective bidder, offeror, or contractor who is aggrieved in connection with the solicitation, evaluation, or award of a contract may formally protest to the Chief Financial Officer. Such protests must be in writing and received in the Chief Financial Officer's office within 10 working days after such aggrieved person knows, or should have known, of the occurrence of the action which is protested. Formal protests must conform to the requirements of this subsection and subsection (c) of this section, and shall be resolved in accordance with the procedure set forth in subsections (d) and (e) of this section. Copies of the protest must be mailed or delivered by the protesting party to the agency and other interested parties.(c) In the event of a timely protest or appeal under this section, the agency shall not proceed further with the solicitation or with the award of the contract unless the Executive Director, after consultation with the Chief Financial Officer, makes a written determination that the award of contract without delay is necessary to protect the best interests of the state.(d) A formal protest must be sworn and contain:(1) a specific identification of the statutory or regulatory provision(s) that the protesting party alleges has been violated;(2) a specific description of each action by the agency that the protesting party alleges to be a violation of the statutory or regulatory provision(s) that the protesting party has identified pursuant to paragraph (1) of this subsection;(3) a precise statement of the relevant facts;(4) a statement of any issues of law or fact that the protesting party contends must be resolved;(5) a statement of the argument and authorities that the protesting party offers in support of the protest; and(6) a statement that copies of the protest have been mailed or delivered to the agency and all other identifiable interested parties.(e) The Chief Financial Officer shall have the authority, prior to appeal to the Executive Director of the commission, to settle and resolve the dispute concerning the solicitation or award of a contract. The Chief Financial Officer may solicit written responses to the protest from other interested parties.(f) If the protest is not resolved by mutual agreement, the Chief Financial Officer will issue a written determination on the protest.(1) If the Chief Financial Officer determines that no violation of rules or statutes has occurred, he/she shall so inform the protesting party and other interested parties by letter which sets forth the reasons for the determination.(2) If the Chief Financial Officer determines that a violation of the rules or statutes has occurred in a case where a contract has not been awarded, he/she shall so inform the protesting party and other interested parties by letter which sets forth the reasons for the determination and the appropriate remedial action.(3) If the Chief Financial Officer determines that a violation of the rules or statutes has occurred in a case where a contract has been awarded, he/she shall so inform the protesting party and other interested parties by letter which sets forth the reasons for the determination, which may include ordering the contract void.(g) The Chief Financial Officer's determination on a protest may be appealed by the protesting party to the Executive Director of the agency. An appeal of the Chief Financial Officer's determination must be in writing and must be received in the Executive Director's office no later than 10 working days after the date of the Chief Financial Officer's determination. Copies of the appeal must be mailed or delivered by the protesting party and other interested parties. The appeal must include a certified statement that such copies have been provided. The appeal shall be limited to review of the Chief Financial Officer's determination.(h) The Executive Director may confer with the General Counsel in his/her review of the matter appealed. The Executive Director may, in his/her discretion, refer the matter to the Commissioners for their consideration at a regularly scheduled open meeting or issue a written decision on the protest.(i) When a protest has been appealed to the Executive Director under subsection (f) of this section and has been referred to the Commissioners by the Executive Director under subsection (g) of this section, the following requirements shall apply:(1) Copies of the appeal and responses of interested parties, if any, shall be mailed to the Commissioners.(2) All interested parties who wish to make an oral presentation at the open meeting are requested to notify the Commission's General Counsel at least 48 hours in advance of the open meeting.(3) The Commissioners may consider oral presentations and written documents presented by staff and interested parties. The Chairman shall set the order and amount of time allowed for presentations.(4) The Commissioners' determination of the appeal shall be by duly adopted resolution reflected in the minutes of the open meeting, and shall be final.(j) A protest or appeal that is not filed timely will not be considered, unless good cause for delay is shown or the commission determines that a protest or appeal raises issues significant to procurement practices or procedures.(k) A decision issued either by the Commissioners in open meeting, or in writing by the Executive Director, shall be the final administrative action of the agency.</content><note type="source"><p>Source Note: The provisions of this §457.1 adopted to be effective June 5, 2008, 33 TexReg 4344; amended to be effective June 1, 2023, 48 TexReg 2729.</p></note></section></subchapter></chapter><chapter identifier="/us/state/tx/tac/t40/p15/c460"><num value="460">CHAPTER 460</num><heading>FUND FOR VETERANS' ASSISTANCE PROGRAM</heading><subchapter identifier="/us/state/tx/tac/t40/p15/c460/scA"><num value="A">SUBCHAPTER A</num><heading>GENERAL PROVISIONS REGARDING THE FUND FOR VETERANS' ASSISTANCE PROGRAM</heading><section identifier="/us/state/tx/tac/t40/p15/c460/scA/s460.1"><num value="460.1">§460.1</num><heading>Purpose</heading><content>The Texas Veterans Commission is authorized to use funds appropriated to the Fund for Veterans' Assistance to administer the fund and make reimbursement grants to address the needs of both veterans and their families.</content><note type="source"><p>Source Note: The provisions of this §460.1 adopted to be effective June 8, 2011, 36 TexReg 3508; amended to be effective December 12, 2011, 36 TexReg 8389.</p></note></section><section identifier="/us/state/tx/tac/t40/p15/c460/scA/s460.2"><num value="460.2">§460.2</num><heading>Definitions</heading><content>The following words and terms, when used in this chapter, shall have the following meanings, unless the context clearly indicates otherwise.(1) Advisory Committee--The committee formed under §452.2(c) of this title (relating to Fund for Veterans' Assistance Advisory Committee).(2) Agency--The Texas Veterans Commission.(3) Commission--The members of the Texas Veterans Commission.(4) Disallowed Cost--A questioned cost that the Agency has determined, violates the conditions of the Grant Agreement, or other law, regulation, or other document governing the expenditures of funds.(5) Grantee--An organization that receives a grant award under this chapter.(6) Performance Measures--The benchmarks the Texas Veterans Commission establishes and must be met within the grant period. These approved benchmarks will be included in the Fund for Veterans Assistance Request for Application.(7) Questioned Cost--A cost that has been identified to be:(A) an alleged violation of a provision of the Grant Agreement, law, regulation, or other agreement or document governing the expenditure of funds;(B) a cost that is not supported by adequate documentation; or(C) a cost that is unnecessary or unreasonable.(8) Received by the Agency--Documents may be sent electronically or by U.S. Mail, overnight delivery, hand delivery, or courier service.(9) Reimbursement Grant--The Texas Veterans Commission Fund for Veterans' Assistance awards grants on a cost reimbursement basis. Under the cost reimbursement method of funding, a Grantee is required to finance its operations, beyond any authorized initial costs or payments, with its own working capital with Grant payments made to reimburse the Grantee for actual cash disbursements supported by adequate documentation.(10) Units of Local Government--A county, municipality, special district, school district, junior college district, a local workforce development board created under §2308.253, Texas Government Code, or other legally constituted political subdivision of the state.</content><note type="source"><p>Source Note: The provisions of this §460.2 adopted to be effective June 8, 2011, 36 TexReg 3508; amended to be effective December 12, 2011, 36 TexReg 8389; amended to be effective March 7, 2013, 38 TexReg 1375; amended to be effective December 5, 2023, 48 TexReg 7080.</p></note></section><section identifier="/us/state/tx/tac/t40/p15/c460/scA/s460.3"><num value="460.3">§460.3</num><heading>Applicant Eligibility</heading><content>(a) Any of the following are eligible to apply for grant funds:(1) Units of local government;(2) IRS Code §501(c)(19) Posts or Organizations of Past or Present Members of the Armed Forces;(3) IRS Code §501(c)(3) nonprofit organizations authorized to do business in Texas; or(4) Texas chapters of IRS Code §501(c)(4) veterans service organizations.(b) Any of the following are not eligible to apply for grant funds:(1) Individuals;(2) For-profit entities;(3) Units of federal or state government, state agencies, colleges, and universities;(4) Organizations that have not fulfilled all legal requirements to operate in the state of Texas; and(5) Organizations that do not have current operations in Texas or a Texas-based chapter.(c) Other than counties or municipalities, applicants must provide proof of:(1) professional liability and/or malpractice insurance; and(2) financial stability, pursuant to §460.7 of this title (relating to Determination of Financial Stability).</content><note type="source"><p>Source Note: The provisions of this §460.3 adopted to be effective June 8, 2011, 36 TexReg 3508; amended to be effective June 3, 2021, 46 TexReg 3419; amended to be effective June 6, 2022, 47 TexReg 3274.</p></note></section><section identifier="/us/state/tx/tac/t40/p15/c460/scA/s460.4"><num value="460.4">§460.4</num><heading>Application Requirements</heading><content>A grant application received by the Agency shall meet the following requirements to be considered for funding:(1) Completed according to grant application instructions; and(2) Received by the Agency by the deadline established in the grant application instructions.</content><note type="source"><p>Source Note: The provisions of this §460.4 adopted to be effective June 8, 2011, 36 TexReg 3508.</p></note></section><section identifier="/us/state/tx/tac/t40/p15/c460/scA/s460.5"><num value="460.5">§460.5</num><heading>Performance Measures</heading><content>In order to qualify for reimbursement, Grantees must provide periodic program performance reports on the following:(1) Number of veterans served;(2) Number of dependents served (if applicable);(3) Number of surviving spouses of veterans served (if applicable); and(4) Other performance measures as determined by the Grant Agreement.</content><note type="source"><p>Source Note: The provisions of this §460.5 adopted to be effective June 8, 2011, 36 TexReg 3508; amended to be effective December 12, 2011, 36 TexReg 8389.</p></note></section><section identifier="/us/state/tx/tac/t40/p15/c460/scA/s460.6"><num value="460.6">§460.6</num><heading>Agency Access to Records</heading><content>(a) The Agency, or its authorized representatives, has the right of timely and reasonable access to any books, documents, papers, computer records, or other records of Grantees that are pertinent to the use of any funds administered by the Agency, in order to conduct monitoring, audits, and examinations, and to make excerpts, transcripts, and photocopies of such documents without cost to the Agency.(b) The right of access also includes timely and reasonable access to Grantee personnel for the purpose of interview and discussion related to such documents.(c) The right of access is not limited to any required record retention period but shall last as long as the records are retained.</content><note type="source"><p>Source Note: The provisions of this §460.6 adopted to be effective June 8, 2011, 36 TexReg 3508.</p></note></section><section identifier="/us/state/tx/tac/t40/p15/c460/scA/s460.7"><num value="460.7">§460.7</num><heading>Determination of Financial Stability</heading><content>(a) An applicant must show financial stability in order to be eligible for a grant award. Criteria for the determination of financial stability are specified in the grant application.(b) A grant application submitted with insufficient financial data to make a determination of financial stability, as specified in the grant application instructions, shall not be considered for funding.(c) This section does not apply to counties or municipalities.</content><note type="source"><p>Source Note: The provisions of this §460.7 adopted to be effective June 8, 2011, 36 TexReg 3508.</p></note></section><section identifier="/us/state/tx/tac/t40/p15/c460/scA/s460.8"><num value="460.8">§460.8</num><heading>Grant Objectives</heading><content>It is the objective of the Fund for Veterans' Assistance to provide reimbursement grants to meet the needs of veterans and their families. Such needs include, but are not limited to, the following:(1) limited emergency assistance for veterans and their families;(2) transportation services;(3) family and/or individual counseling for Post-Traumatic Stress Disorder (PTSD) and Traumatic Brain Injury (TBI);(4) employment, training, education, and job placement assistance;(5) housing assistance for homeless veterans;(6) family and child services;(7) Pro bono legal services, excluding criminal defense;(8) professional services networks;(9) veteran mental health treatment;(10) participation in Veteran Treatment Court programs; and(11) home modification projects.</content><note type="source"><p>Source Note: The provisions of this §460.8 adopted to be effective June 8, 2011, 36 TexReg 3508; amended to be effective December 12, 2011, 36 TexReg 8389; amended to be effective June 3, 2021, 46 TexReg 3419.</p></note></section><section identifier="/us/state/tx/tac/t40/p15/c460/scA/s460.9"><num value="460.9">§460.9</num><heading>Administrative Costs</heading><content>(a) Administrative costs shall not exceed the amount specified in the grant application instructions.(b) Administrative costs must be budgeted by line-item in the grant application, unless:(1) the applicant has a cost allocation plan approved by a federal agency; or(2) the applicant's cost allocation plan has an indirect cost rate approved by a federal agency.(c) An applicant that has a current cost allocation plan with an indirect cost approved by a federal agency may budget up to the amount of allowable administrative costs or the approved indirect cost rate, whichever is lower.</content><note type="source"><p>Source Note: The provisions of this §460.9 adopted to be effective June 8, 2011, 36 TexReg 3508; amended to be effective December 12, 2011, 36 TexReg 8389.</p></note></section><section identifier="/us/state/tx/tac/t40/p15/c460/scA/s460.10"><num value="460.10">§460.10</num><heading>Limitations on Grant Funds</heading><content>Grant funds cannot be used for the following:(1) capital expenditures, including capital purchases or capital leases, except for grant funds awarded under the Housing4TexasHeroes program;(2) sub-granting of funds to other organizations or agencies;(3) distribution of cash or a cash equivalent to veterans and/or their families;(4) acquisition or construction of facilities, except for grant funds awarded under the Housing4TexasHeroes program;(5) scholarships for education;(6) payment of child support;(7) any expense that is not necessary to complete the grant project, or not consistent with the Grant Agreement;(8) contributions to any political party, political association, or the campaign of any candidate for public office, party office, or similar political activities;(9) contributions that support or oppose candidates for public or party office, or to support or oppose any ballot propositions;(10) medical costs, including physician fees, prescription medications, over-the-counter medications, medical insurance premiums or copays, emergency/after-hours clinic fees, and prescribed prosthetics;(11) stipends for beneficiaries, volunteers, students, interns, employees, and members of the board of directors;(12) payments for capital assets that are not physically in Texas; and(13) any cost that is not allowable under the Grant Agreement, the Fund for Veterans' Assistance Fiscal Guidelines, State of Texas Uniform Grant Management Standards (UGMS), or 2 C.F.R. 200 - Uniform Administrative Requirements, Costs Principles, and Audit Requirements for Federal Awards.</content><note type="source"><p>Source Note: The provisions of this §460.10 adopted to be effective June 8, 2011, 36 TexReg 3508; amended to be effective December 12, 2011, 36 TexReg 8389; amended to be effective September 1, 2016, 41 TexReg 6508; amended to be effective June 3, 2021, 46 TexReg 3419.</p></note></section><section identifier="/us/state/tx/tac/t40/p15/c460/scA/s460.11"><num value="460.11">§460.11</num><heading>Evaluation of Grant Applications</heading><content>(a) The Fund for Veterans' Assistance Advisory Committee will evaluate grant applications and make recommendations to the Commission.(b) The Commission shall make the final funding decisions.(c) Decisions by the Commission regarding funding are not appealable.</content><note type="source"><p>Source Note: The provisions of this §460.11 adopted to be effective June 8, 2011, 36 TexReg 3508.</p></note></section><section identifier="/us/state/tx/tac/t40/p15/c460/scA/s460.12"><num value="460.12">§460.12</num><heading>Grant Amendments</heading><content>(a) A Grantee may request an amendment to their current Grant Agreement.(b) Grant amendments shall meet all the conditions established by the Commission to be considered by the appropriate approval authority.(c) Decisions made by the appropriate approval authority are final and non-appealable.</content><note type="source"><p>Source Note: The provisions of this §460.12 adopted to be effective December 12, 2011, 36 TexReg 8389.</p></note></section><section identifier="/us/state/tx/tac/t40/p15/c460/scA/s460.16"><num value="460.16">§460.16</num><heading>Housing4TexasHeroes</heading><content>(a) The Housing4TexasHeroes (H4TH) program provides reimbursement grants to organizations to assist Texas veterans and their families in obtaining, maintaining, or improving housing.(b) H4TH grantees shall comply with the rules set forth in this chapter governing the Fund for Veterans' Assistance and the requirements set forth in §434.017 and Chapter 2306, Texas Government Code.</content><note type="source"><p>Source Note: The provisions of this §460.16 adopted to be effective December 12, 2011, 36 TexReg 8389.</p></note></section><section identifier="/us/state/tx/tac/t40/p15/c460/scA/s460.17"><num value="460.17">§460.17</num><heading>Veterans County Service Office Grants</heading><content>(a) Grants made to Veterans County Service Offices under Texas Government Code §434.017(c-3) shall be used to provide direct assistance and services to veterans and their families residing in the county served by that office.(b) Veterans County Service Offices may submit applications under the General Assistance, Housing4TexasHeroes, or Veterans Mental Health grant programs.(c) To be eligible for Veterans County Service Office grant funding, the Veterans County Service Officer (VCSO) must be the Project Manager.(d) Grants to Veterans County Service Offices shall comply with the rules set forth in this chapter governing the Fund for Veterans' Assistance and the requirements set forth in §434.017 and Chapter 2306, Texas Government Code.</content><note type="source"><p>Source Note: The provisions of this §460.17 adopted to be effective February 27, 2018, 43 TexReg 1143.</p></note></section><section identifier="/us/state/tx/tac/t40/p15/c460/scA/s460.18"><num value="460.18">§460.18</num><heading>Service Dog Pilot Program</heading><content>It is the objective of the Service Dog Pilot Program to assist veterans in mitigating the symptoms of military service-related post-traumatic stress disorder, traumatic brain injury, or military sexual trauma through the provision of a service dog. Funds were appropriated for this purpose by the 88th Legislature (General Appropriations Act, Article I, Rider 14, 88th Legislature, Regular Session).(1) Texas Veterans Commission (TVC) will award grants to non-profit corporations under Texas Government Code §434.017 to provide trained service dogs, training, and services to veterans who participate in the pilot program.(2) The commission will include the Service Dog Pilot program grants in the Request for Applications (RFA) for the duration of the pilot program.(3) Non-profit corporations will be selected for grants under the pilot program based on the criteria listed in Texas Government Code §434.029 and the RFA.(4) Non-profit corporations selected for these grants are expected to track and provide data for TVC to evaluate the pilot program and prepare a report as required by Texas Government Code §434.029.</content><note type="source"><p>Source Note: The provisions of this §460.18 adopted to be effective December 5, 2023, 48 TexReg 7080.</p></note></section></subchapter><subchapter identifier="/us/state/tx/tac/t40/p15/c460/scB"><num value="B">SUBCHAPTER B</num><heading>MONITORING ACTIVITIES</heading><section identifier="/us/state/tx/tac/t40/p15/c460/scB/s460.20"><num value="460.20">§460.20</num><heading>Purpose</heading><content>Monitoring activities are intended to ensure:(1) that Grantees meet the expenditure and performance requirements of the Grant Agreement;(2) Fund for Veterans' Assistance resources are used efficiently and effectively;(3) Fund for Veterans' Assistance resources are protected from waste, fraud, and abuse; and(4) reliable and timely information is captured and reported.</content><note type="source"><p>Source Note: The provisions of this §460.20 adopted to be effective June 8, 2011, 36 TexReg 3508.</p></note></section><section identifier="/us/state/tx/tac/t40/p15/c460/scB/s460.21"><num value="460.21">§460.21</num><heading>Monitoring Activities</heading><content>(a) A Grantee shall cooperate with the Agency's program and fiscal monitoring activities, site visits, reviews of documentation and requests for information.(b) Program and fiscal monitoring activities include site visits, desk reviews, and analyses of both financial management and grant administration to help identify potential weaknesses before such weaknesses result in substandard performance or questioned costs.(c) Monitoring activities shall assess a Grantee's compliance with the Grant Agreement, the Fund for Veterans' Assistance Fiscal Guidelines, the State of Texas Uniform Grant Management Standards (UGMS), and 2 C.F.R. 200 - Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards.(d) The Agency may review all relevant records or a sample of records to assess a Grantee.(e) Failure to comply with this subchapter shall result in corrective action pursuant to Subchapter C of this chapter relating to Corrective Action.</content><note type="source"><p>Source Note: The provisions of this §460.21 adopted to be effective June 8, 2011, 36 TexReg 3508; amended to be effective September 1, 2016, 41 TexReg 6508.</p></note></section><section identifier="/us/state/tx/tac/t40/p15/c460/scB/s460.22"><num value="460.22">§460.22</num><heading>Grant Monitoring</heading><content>(a) The Agency shall conduct grant monitoring activities to ensure that the Grantee will effectively implement the Grant Agreement, meet performance measures, and deliver high-quality services.(b) Processes and procedures used to assess a Grantee may include the review and evaluation of one or more of the following:(1) performance benchmarks;(2) reporting accuracy;(3) record keeping and file maintenance;(4) efficacy and quality of the Grantee's service delivery;(5) automated systems and reporting;(6) policies and procedures; and(7) other documents, processes, and systems as determined by the Agency.(c) Processes and procedures used to assess a Grantee shall include a review, evaluation, and determination regarding compliance with the Grant Agreement including, the approved Statement of Work, approved performance measures, and other documents, processes and systems as determined by the Agency.</content><note type="source"><p>Source Note: The provisions of this §460.22 adopted to be effective June 8, 2011, 36 TexReg 3508.</p></note></section><section identifier="/us/state/tx/tac/t40/p15/c460/scB/s460.23"><num value="460.23">§460.23</num><heading>Fiscal Monitoring</heading><content>(a) The Agency shall conduct fiscal monitoring activities to ensure that resources are efficiently and effectively used for authorized purposes and are protected from waste, fraud, and abuse.(b) Processes and procedures used to assess a Grantee may include the review and evaluation of one or more of the following:(1) accounting and reporting systems;(2) budget methodologies;(3) cash management practices;(4) cost allocation plans and processes;(5) cash disbursement compliance and documentation;(6) insurance coverage and risk exposure;(7) oversight and monitoring functions;(8) payroll administration;(9) purchasing and procurement processes and procedures;(10) property accountability and safeguarding;(11) expenditure benchmarks; and(12) other documents, processes and systems as determined by the Agency.(c) Processes and procedures used to assess a Grantee shall include a review, evaluation, and determination regarding compliance with the Grant Agreement, the Fund for Veterans' Assistance Fiscal Guidelines, the State of Texas Uniform Grant Management Standards (UGMS), and 2 C.F.R. 200 - Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards.</content><note type="source"><p>Source Note: The provisions of this §460.23 adopted to be effective June 8, 2011, 36 TexReg 3508; amended to be effective June 3, 2021, 46 TexReg 3419.</p></note></section><section identifier="/us/state/tx/tac/t40/p15/c460/scB/s460.24"><num value="460.24">§460.24</num><heading>Monitoring Reports</heading><content>(a) The Agency shall issue a monitoring report summarizing its findings which will include, if applicable, questioned costs, disallowed costs, observations and recommendations.(b) The Grantee shall provide information, supporting documentation, and a summary of actions the Grantee has taken or plans to take in response to the monitoring report. These materials must be received by the Agency no later than 21 days after the mailing date of the monitoring report.(c) After evaluation of the Grantee's response, the Agency shall issue a final monitoring report. If disallowed costs remain, the final monitoring report will establish a debt against the Grantee for the disallowed amount.(d) If findings are not resolved or debts are not paid, the Grantee may be subject to corrective action pursuant to Subchapter C of this chapter relating to Corrective Action, Subchapter D of this chapter relating to Deobligation of Grant Funds, or legal action.(e) Fund for Veterans' Assistance grant funds shall not be used to reimburse the Agency for disallowed costs.</content><note type="source"><p>Source Note: The provisions of this §460.24 adopted to be effective June 8, 2011, 36 TexReg 3508.</p></note></section></subchapter><subchapter identifier="/us/state/tx/tac/t40/p15/c460/scC"><num value="C">SUBCHAPTER C</num><heading>CORRECTIVE ACTION</heading><section identifier="/us/state/tx/tac/t40/p15/c460/scC/s460.30"><num value="460.30">§460.30</num><heading>Purpose</heading><content>(a) The purpose of corrective action is to ensure compliance with the Grant Agreement as a result of findings cited in the Grantee's monitoring report, or to bring the Grantee into compliance with the Grant Agreement.(b) The Agency may review monitoring reports, financial data, non-financial data, and performance data to evaluate a Grantee and assess the need for corrective action.(c) The Agency may require, at any point during the grant period, that a Grantee cooperate with corrective action, including, but not limited to, entering into a Corrective Action Plan and other performance review and assistance activities.</content><note type="source"><p>Source Note: The provisions of this §460.30 adopted to be effective June 8, 2011, 36 TexReg 3508.</p></note></section><section identifier="/us/state/tx/tac/t40/p15/c460/scC/s460.31"><num value="460.31">§460.31</num><heading>Noncompliance</heading><content>(a) The Agency may assess corrective action for failure to ensure, at any time during the grant period, compliance with the following:(1) contracted performance measures;(2) expenditure benchmarks;(3) performance benchmarks; and/or(4) the Grant Agreement, the Fund for Veterans' Assistance Fiscal Guidelines, the State of Texas Uniform Grant Management Standards (UGMS), and 2 C.F.R. 200 - Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards.(b) The Agency may assess corrective action at any time during the grant period based on noncompliance of any portion of this chapter or the Grant Agreement.</content><note type="source"><p>Source Note: The provisions of this §460.31 adopted to be effective June 8, 2011, 36 TexReg 3508; amended to be effective September 1, 2016, 41 TexReg 6508.</p></note></section><section identifier="/us/state/tx/tac/t40/p15/c460/scC/s460.32"><num value="460.32">§460.32</num><heading>Corrective Action</heading><content>(a) The Agency may assess corrective action on a Grantee based on the following criteria as determined appropriate by the Agency given the circumstances surrounding the occurrence of the acts necessitating corrective action:(1) Severity, nature, duration, and extent;(2) Previous occurrences of acts necessitating corrective action; and(3) Efforts by the Grantee to prevent the occurrence of acts necessitating corrective action, including efforts to:(A) obtain technical assistance, training, or other assistance from the Agency or another entity;(B) resolve monitoring findings; and(C) prevent potential acts necessitating corrective action.(b) The Agency may assess one or more of the following corrective actions:(1) delay, suspension, or denial of contract payments;(2) partial or full deobligation of funds;(3) ineligibility for future grant awards;(4) contract cancellation or termination;(5) participation in technical assistance and quality assurance activities;(6) submission of additional or more detailed financial or performance reports;(7) mandatory participation in training;(8) on-site monitoring visits;(9) an Agency-developed and Grantee-implemented Corrective Action Plan to address the weaknesses identified; and(10) other actions deemed appropriate by the Agency to assist the Grantee in correcting deficiencies.</content><note type="source"><p>Source Note: The provisions of this §460.32 adopted to be effective June 8, 2011, 36 TexReg 3508.</p></note></section><section identifier="/us/state/tx/tac/t40/p15/c460/scC/s460.33"><num value="460.33">§460.33</num><heading>Notification of Corrective Action</heading><content>(a) The Agency will issue a Corrective Action letter to the Grantee when the Grantee is in noncompliance as defined in §460.31 of this title relating to Noncompliance. The Corrective Action letter will be sent by certified mail.(b) In the Corrective Action letter, the Agency shall:(1) provide notification of noncompliance;(2) specify the corrective action as defined in §460.32(b) of this title relating to Corrective Action, required to be taken by the Grantee;(3) set a timeline for the Grantee to implement the Agency-required corrective action; and(4) describe any technical assistance available to the Grantee.</content><note type="source"><p>Source Note: The provisions of this §460.33 adopted to be effective June 8, 2011, 36 TexReg 3508.</p></note></section><section identifier="/us/state/tx/tac/t40/p15/c460/scC/s460.34"><num value="460.34">§460.34</num><heading>Appeal of Corrective Action</heading><content>Appeal of Corrective Action applies to §460.32(b)(1) - (4) of this title relating to Corrective Action, and are governed by Subchapter E of this chapter relating to Appeals.</content><note type="source"><p>Source Note: The provisions of this §460.34 adopted to be effective June 8, 2011, 36 TexReg 3508.</p></note></section></subchapter><subchapter identifier="/us/state/tx/tac/t40/p15/c460/scD"><num value="D">SUBCHAPTER D</num><heading>DEOBLIGATION OF GRANT FUNDS</heading><section identifier="/us/state/tx/tac/t40/p15/c460/scD/s460.40"><num value="460.40">§460.40</num><heading>Purpose</heading><content>The purpose of this subchapter is to describe the acts of noncompliance that will initiate a deobligation of funds from a Grantee, how the Grantee will be notified of the deobligation of funds, and the process through which a Grantee may appeal the deobligation funds.</content><note type="source"><p>Source Note: The provisions of this §460.40 adopted to be effective June 8, 2011, 36 TexReg 3508.</p></note></section><section identifier="/us/state/tx/tac/t40/p15/c460/scD/s460.41"><num value="460.41">§460.41</num><heading>Deobligation of Grant Funds</heading><content>Deobligation of grant funds may result for failure to ensure, at any time during the grant period, compliance with the following:(1) expenditure benchmarks;(2) performance benchmarks;(3) timely resolution of monitoring findings;(4) Corrective Action Plan, unless an appeal under Subchapter E of this chapter is yet to be finalized;(5) periodic reporting requirements as specified in the Grant Agreement; and/or(6) material breach of Grant Agreement.</content><note type="source"><p>Source Note: The provisions of this §460.41 adopted to be effective June 8, 2011, 36 TexReg 3508.</p></note></section><section identifier="/us/state/tx/tac/t40/p15/c460/scD/s460.42"><num value="460.42">§460.42</num><heading>Notification of Deobligation</heading><content>(a) The issuance of a Notification of Deobligation letter shall be sent to the Grantee by certified mail.(b) The Notification of Deobligation letter shall include:(1) notification of noncompliance;(2) the Agency's determination, which may include one or more of the following:(A) partial deobligation of funds;(B) full deobligation of funds;(C) periodic monitoring or site visits; and(D) other mitigating actions that may improve a Grantee's performance and rate of expending funds, consistent with timely and full completion of the Grant Agreement.</content><note type="source"><p>Source Note: The provisions of this §460.42 adopted to be effective June 8, 2011, 36 TexReg 3508.</p></note></section><section identifier="/us/state/tx/tac/t40/p15/c460/scD/s460.43"><num value="460.43">§460.43</num><heading>Appeal of Deobligation of Grant Funds</heading><content>Appeal of a Notice of Deobligation of Grant Funds applies to §460.41 of this title relating to Deobligation of Grant Funds, and are governed by Subchapter E of this chapter relating to Appeals.</content><note type="source"><p>Source Note: The provisions of this §460.43 adopted to be effective June 8, 2011, 36 TexReg 3508.</p></note></section></subchapter><subchapter identifier="/us/state/tx/tac/t40/p15/c460/scE"><num value="E">SUBCHAPTER E</num><heading>APPEALS</heading><section identifier="/us/state/tx/tac/t40/p15/c460/scE/s460.50"><num value="460.50">§460.50</num><heading>Purpose</heading><content>The purpose of this subchapter is to identify appealable actions performed by the Agency and describe the appeal process for Grantees.</content><note type="source"><p>Source Note: The provisions of this §460.50 adopted to be effective June 8, 2011, 36 TexReg 3508.</p></note></section><section identifier="/us/state/tx/tac/t40/p15/c460/scE/s460.51"><num value="460.51">§460.51</num><heading>Appealable Actions</heading><content>(a) A Grantee may appeal the following:(1) Corrective action found in §460.32(b)(1) - (4) of this title relating to Corrective Action; and(2) Deobligation of funds found in §460.41 of this title relating to Deobligation of Grant Funds.(b) No other appeals may be made by a Grantee.</content><note type="source"><p>Source Note: The provisions of this §460.51 adopted to be effective June 8, 2011, 36 TexReg 3508.</p></note></section><section identifier="/us/state/tx/tac/t40/p15/c460/scE/s460.52"><num value="460.52">§460.52</num><heading>Appeal of Corrective Action</heading><content>(a) The Grantee may provide a letter of appeal that must be received by the Agency no later than 14 days after the mailing date of the Corrective Action letter.(b) The letter of appeal shall include:(1) justification of why the corrective action should not be imposed;(2) an explanation of how the Grantee will correct the noncompliance identified in the Corrective Action letter;(3) an explanation of how the Grantee will ensure that any noncompliance identified in the Corrective Action letter will be avoided in the future; and(4) any documents supporting the appeal.(c) The Agency Executive Director, or his designee(s), makes the final decision to approve or deny the appeal.(d) A letter of appeal received after the deadline stated in subsection (a) of this section shall not be considered.(e) The decision of the Executive Director is final.</content><note type="source"><p>Source Note: The provisions of this §460.52 adopted to be effective June 8, 2011, 36 TexReg 3508.</p></note></section><section identifier="/us/state/tx/tac/t40/p15/c460/scE/s460.53"><num value="460.53">§460.53</num><heading>Appeal of Deobligation of Grant Funds</heading><content>(a) The Grantee may provide a letter of appeal that must be received by the Agency no later than 14 days after the mailing date of the Notification of Deobligation letter.(b) The letter of appeal shall include:(1) justification of why the deobligation of grant funds should not be imposed;(2) an explanation of how the Grantee will correct the determinations identified in the Notification of Deobligation letter;(3) an explanation of how the Grantee will ensure that the determinations in the Notice of Deobligation letter will be avoided in the future; and(4) any documents supporting the appeal.(c) The Commission makes the decision to approve or deny the appeal.(d) A letter of appeal received after the deadline stated in subsection (a) of this section shall not be considered.(e) The decision of the Commission is final.</content><note type="source"><p>Source Note: The provisions of this §460.53 adopted to be effective June 8, 2011, 36 TexReg 3508.</p></note></section></subchapter></chapter><chapter identifier="/us/state/tx/tac/t40/p15/c461"><num value="461">CHAPTER 461</num><heading>VETERANS EDUCATION</heading><subchapter identifier="/us/state/tx/tac/t40/p15/c461/scA"><num value="A">SUBCHAPTER A</num><heading>EXEMPTION PROGRAM FOR VETERANS AND THEIR DEPENDENTS (THE HAZLEWOOD ACT)</heading><section identifier="/us/state/tx/tac/t40/p15/c461/scA/s461.10"><num value="461.10">§461.10</num><heading>Authority and Purpose</heading><content>(a) Authority. The authority for this subchapter is provided in Texas Education Code §54.341 relating to an exemption for Texas veterans, their spouses, and dependents; Texas Government Code §434.0079 relating to Duties Regarding Certain Tuition and Fee Exemptions for Veterans and Family Members; and Texas Government Code §434.00791 relating to Electronic System to Monitor Tuition Exemptions for Veterans and Family Members.(b) Purpose. The purpose of this subchapter is to provide procedures and criteria for the administration of an exemption program for Texas veterans and dependents at public institutions of higher education.</content><note type="source"><p>Source Note: The provisions of this §461.10 adopted to be effective June 5, 2014, 39 TexReg 4270.</p></note></section><section identifier="/us/state/tx/tac/t40/p15/c461/scA/s461.20"><num value="461.20">§461.20</num><heading>Definitions</heading><content>The following words and terms, when used in this subchapter, shall have the following meanings, unless the context clearly indicates otherwise:(1) Board--The Texas Higher Education Coordinating Board.(2) Commission--The Texas Veterans Commission.(3) Census date--The date in an academic term or semester for which an institution is required to certify a person's enrollment in the institution to the Board for the purposes of determining formula funding for the institution.(4) Contact Hour--A time unit of instruction as defined in 19 Texas Administrative Code §13.1.(5) Continuing education unit or CEU--A unit of measure of instruction as defined in 19 Texas Administrative Code §9.1.(6) Degree certified hours--Hours for which the student is registered as of the census date of a term or semester.(7) Dependent--An individual who was claimed as a dependent for federal income tax purposes by the individual's parent or court-appointed legal guardian, or as defined in Texas Education Code §54.341(k) and (m) in a particular year and in the previous tax year. A child was a dependent if he or she was claimed as such by a parent or legal guardian during the veteran's year of entry into the service and in the previous tax year.(8) Deposit fees--Fees that an institution may collect under Texas Education Code §54.502.(9) Eligible Person--(A) Veteran as defined in Texas Education Code §54.341(a);(B) Spouse as defined in Texas Education Code §54.341(a-2); or(C) Child or Children as defined by Texas Education Code §54.341(m).(10) Extraordinary costs--Only applicable for public junior colleges, public technical institutes, or public state colleges as defined in Texas Education Code §61.003. The cost of tuition and fees that exceed the average tuition and fee charges at the institution.(11) Federal income tax return--An IRS Transcript of Tax Return for that particular year.(12) Guidelines for Instructional Programs in Workforce Education (GIPWE)--A Board approved publication as defined in 19 Texas Administrative Code §9.1.(13) Hazlewood Act Exemption--The tuition and partial fee exemption authorized under Texas Education Code §54.341.(14) Hazlewood Legacy Act--The tuition and partial fee exemption authorized under Texas Education Code §54.341(k).(15) Initial entry training--Includes Basic Combat Training and Advanced Individual Training, One Station Unit Training, Officer Candidate School, service as a cadet at the United States Military Academy, and service as a cadet candidate at the United States Military Academy Preparatory School (Army); Recruit Training and Skill Training (or 'A' School), Officer Candidate School, service as a midshipman at the United States Naval Academy, and service as a midshipman candidate at the Naval Academy Preparatory School (Navy); Basic Military Training and Technical Training, Officer Training School, service as a cadet at the United States Air Force Academy; and service as a cadet candidate at the United States Air Force Academy Preparatory School (Air Force and Space Force); Recruit Training and Marine Corps Training (or School of Infantry Training), Officer Candidates School (Marine Corps); and Basic Training, Officer Candidate School, and service as a cadet at the United States Coast Guard Academy (Coast Guard), or the equivalent training for that branch of service.(16) Institution--A Texas public institution of higher education as defined in Texas Education Code §61.003(8).(17) Qualifying service--Discharged under honorable conditions after serving on active military duty, excluding initial entry training, for more than 180 days as documented by the Certificate of Release or Discharge from Active Duty (DD FORM 214) issued by the Department of Defense or other qualifying discharge document. Other qualifying discharge documents are:(A) WD AGO 53, Enlisted Record and Report of Separation Honorable Discharge;(B) WD AGO 53-55, Enlisted Record and Report of Separation Honorable Discharge;(C) WD AGO 53-58, Enlisted Record and Report of Separation General Discharge;(D) NAVCG-553, Notice of Separation from U.S. Coast Guard;(E) NAVMC 78-PD, U.S. Marine Corps Report of Separation;(F) NAVPERS-553, Notice of Separation from U.S. Naval Service; or(G) NA Form 13038, Certification of Military Service. This form may only be used upon written verification from the National Archives that a DD Form 214 or equivalent discharge document has been lost or destroyed and may only be used to verify days of qualifying service and character of service.(18) Resident of Texas--A resident of the State of Texas as determined in accordance with 19 Texas Administrative Code Chapter 21, Subchapter B (relating to Determination of Resident Status).(19) Satisfactory academic progress--A grade point average that satisfies the institution's requirement for making satisfactory academic progress toward a degree or certificate in accordance with the institution's policy regarding eligibility for financial aid. This requirement does not apply to spouses or children of veterans who died from a service-related injury or illness, or who were classified as missing in action (MIA) or killed in action (KIA).(20) Semester Credit Hour--A unit of measure of instruction as defined in 19 Texas Administrative Code §13.1.(21) Stacking--Concurrent use of state and federal veteran education benefits by an eligible person.(22) Student services fees--Fees that an institution may, under Texas Education Code, §§54.503, 54.5061, and 54.513, elect to charge to students to cover the cost of student services.</content><note type="source"><p>Source Note: The provisions of this §461.20 adopted to be effective June 5, 2014, 39 TexReg 4270; amended to be effective May 25, 2016, 41 TexReg 3753; amended to be effective December 5, 2024, 49 TexReg 9768.</p></note></section><section identifier="/us/state/tx/tac/t40/p15/c461/scA/s461.30"><num value="461.30">§461.30</num><heading>Hazlewood Act Exemption</heading><content>(a) Subject to the following provisions, an institution shall exempt an eligible person from the payment of tuition, mandatory fees, dues, and other required charges, including fees for correspondence courses and distance education courses, but excluding general deposit and student services fees and any fees or charges for lodging, board, or clothing.(b) An institution is not required to provide the Hazlewood Act Exemption for tuition and fees related to courses for which the institution does not receive state formula funding, unless the governing board of the institution specifically chooses to provide the exemption for such courses.(c) Generally, the Hazlewood Act Exemption provides for both resident or nonresident tuition and fees for those who meet all requirements to receive the benefit.(d) A person's eligibility for the Hazlewood Act Exemption is not impacted by federal veterans' education programs that provide for benefits not specifically designated for the payment of tuition and fees.(e) The Legacy recipient will receive an exemption for the number of degree certified hours reported by the institution for that term or semester. Maximum degree certified hours awarded to the Legacy recipient will be dependent upon the degree or certificate program in which the student is enrolled for that term or semester and shall be consistent with the program length as defined within the school catalog as approved by the regional accreditation commission (Texas Government Code §434.0079(c)(1)).(f) Stacking state and federal veterans education benefits is permitted. Persons eligible for more than one federal veterans education benefit must select which federal program to stack with the Hazlewood Act Exemption. Persons eligible for federal veterans benefits not specifically designated for the payment of tuition and fees, or eligible for federal veterans education benefits at less than the 100% entitlement level, may stack those benefits with the Hazlewood Act Exemption. If the person elects to apply federal benefits that provide for payment of tuition and fees, this federal benefit will be applied prior to the application of Hazlewood. At no time will the total of federal and state benefits exceed 100% of the tuition and fees for the term.(g) An eligible person is not entitled to receive the Hazlewood Act Exemption for more than 150 attempted semester credit hours, except that it may be less as described in subsection (e) of this section.(h) If the Hazlewood Act Exemption is used to pay for only a portion of the hours taken during a given term or semester, an institution shall deduct only the proportion used from the 150 hours of eligibility. When reporting the proportional hours to the Commission, institutions shall round any fraction of an hour up to the nearest whole number.(i) The governing board of a public junior college, public technical institute, or public state college, as those terms are defined by Texas Education Code §61.003, may establish a fee for extraordinary costs associated with a specific course or program and may determine that the exemption does not apply to this fee.(j) In determining whether to admit a person to any certificate program or to any baccalaureate, graduate, postgraduate, or professional degree program, an institution may not consider the fact that the person is eligible for an exemption through this subchapter.(k) An application for the Hazlewood Act Exemption shall be denied if it is determined that the applicant is in default on an educational loan made or guaranteed by the State of Texas.(l) If the institution is unable to determine eligibility of an applicant in accordance with this subchapter, the institution shall consult with the Commission to resolve the matter.</content><note type="source"><p>Source Note: The provisions of this §461.30 adopted to be effective June 5, 2014, 39 TexReg 4270; amended to be effective May 25, 2016, 41 TexReg 3753.</p></note></section><section identifier="/us/state/tx/tac/t40/p15/c461/scA/s461.40"><num value="461.40">§461.40</num><heading>Veteran Eligibility</heading><content>In order to be eligible to receive the Hazlewood Act Exemption, a veteran who claims the benefit for the first time shall demonstrate that he or she currently resides in the state as indicated by the address and signature on the application, unless he or she resides out of state solely due to his or her own (or a spouse's) current military orders, and:(1) at the time he or she entered the service, was a resident of Texas, entered the service in the State of Texas, or declared Texas as his or her home of record in the manner provided by the military or other service;(2) was discharged under honorable conditions after serving on active military duty, excluding initial entry training, for more than 180 days;(3) has attempted fewer than 150 credit hours using the Hazlewood Act Exemption beginning with Fall 1995;(4) if a continuing or transfer student, has met the GPA requirement of the institution's satisfactory academic progress policy in a degree or certificate program as determined by the institution's financial aid policy; except the veteran is not required to enroll in a minimum course load, and meets the other requirements of Texas Education Code §54.2001; and(5) provide to the institution a completed Hazlewood Act Exemption Application and the supporting documentation, as provided in §461.90 of this subchapter (relating to Supporting Documentation for the Hazlewood Act Exemption Application), no later than the last class date of the semester or term to which the exemption applies.</content><note type="source"><p>Source Note: The provisions of this §461.40 adopted to be effective June 5, 2014, 39 TexReg 4270; amended to be effective May 25, 2016, 41 TexReg 3753.</p></note></section><section identifier="/us/state/tx/tac/t40/p15/c461/scA/s461.50"><num value="461.50">§461.50</num><heading>Spouse's Eligibility</heading><content>(a) In order to be eligible to receive the Hazlewood Act Exemption, a veteran's spouse shall demonstrate that he or she:(1) is the spouse of:(A) a member of the U.S. Armed Forces who entered the service in the State of Texas; declared Texas as his or her home of record in the manner provided by the military or other service; or was a resident of Texas when he or she entered the service and who:(i) was killed in action; or(ii) died while in service; or(iii) is missing in action; or(iv) whose death is documented to be directly caused by illness or injury related to service in the armed forces of the United States; or(v) is totally and permanently disabled or meets the eligibility requirements for individual unemployability according to the disability ratings of the Department of Veterans Affairs; or(B) a member of the Texas National Guard or Texas Air National Guard who:(i) was killed since January 1, 1946 while on active duty either in the service of Texas or the United States; or(ii) is totally and permanently disabled or meets the eligibility requirements for individual unemployability according to the disability ratings of the Department of Veterans Affairs.(2) is classified by the institution as a resident of Texas for the term or semester for which the spouse claims the Hazlewood Act Exemption.(b) A spouse of a service-related totally disabled or individually unemployable veteran, if a continuing or transfer student, must meet the GPA requirement of the institution's satisfactory academic progress policy in a degree or certificate program as determined by the institution's financial aid policy; except the spouse is not required to enroll in a minimum course load. The spouse also must meet all other requirements of Texas Education Code §54.2001. These requirements do not apply to the spouse of a veteran who has died from a service-related injury or illness or who was classified as missing in action (MIA), or killed in action (KIA).</content><note type="source"><p>Source Note: The provisions of this §461.50 adopted to be effective June 5, 2014, 39 TexReg 4270; amended to be effective May 25, 2016, 41 TexReg 3753.</p></note></section><section identifier="/us/state/tx/tac/t40/p15/c461/scA/s461.60"><num value="461.60">§461.60</num><heading>Children's Eligibility</heading><content>(a) In order to be eligible to receive the Hazlewood Act Exemption, children shall demonstrate that they:(1) are children of:(A) members of the U.S. Armed Forces who entered the service in the State of Texas; declared Texas as their home of record in the manner provided by the military or other service; or were residents of Texas when they entered the service and who:(i) were killed in action; or(ii) died while in service; or(iii) are missing in action; or(iv) whose deaths are documented to be directly caused by illness or injury related to service in the armed forces of the United States; or(v) are totally and permanently disabled or meet the eligibility requirements for individual unemployability according to the disability ratings of the Department of Veterans Affairs; or(B) members of the Texas National Guard or Texas Air National Guard who:(i) were killed since January 1, 1946 while on active duty either in the service of Texas or the United States; or(ii) are totally and permanently disabled or meet the eligibility requirements for individual unemployability according to the disability ratings of the Department of Veterans Affairs.(2) are classified by their institutions as residents of Texas for the term or semester for which they claim the Hazlewood Act Exemption.(b) Children of service-related totally disabled or individually unemployable veterans, if a continuing or transfer student, must meet the GPA requirement of the institution's satisfactory academic progress policy in a degree or certificate program as determined by the institution's financial aid policy; except the child is not required to enroll in a minimum course load. The child also must meet the other requirements of Texas Education Code §54.2001. These requirements do not apply to a child of a veteran who has died from a service-related injury or illness or who was classified as missing in action (MIA), or killed in action (KIA).</content><note type="source"><p>Source Note: The provisions of this §461.60 adopted to be effective June 5, 2014, 39 TexReg 4270; amended to be effective May 25, 2016, 41 TexReg 3753.</p></note></section><section identifier="/us/state/tx/tac/t40/p15/c461/scA/s461.70"><num value="461.70">§461.70</num><heading>Hazlewood Legacy Act Eligibility</heading><content>(a) An eligible veteran or, if the eligible veteran has died, his or her spouse, or child's conservator, guardian, custodian, or other legally designated caretaker (if the child does not otherwise qualify for an exemption under Texas Education Code §54.341(b)), may elect to waive the eligible veteran's right to all or a portion of unused hours for which he or she is eligible (up to the maximum 150 semester credit hours). By completing the relevant forms as prescribed by the Commission and submitting them to the institution, the veteran, his or her spouse, or child's conservator, guardian, custodian, or other legally designated caretaker may:(1) assign the unused hours to only one of his or her children at a time; and(2) if the child to whom the hours have been assigned fails to use all available credit hours, assign the remaining hours to another of his or her children.(b) For an otherwise eligible veteran to assign his or her unused hours to a child through the Hazlewood Legacy Program (applies to new recipients Fall 2011), he or she must:(1) reside in Texas; or(2) demonstrate that he or she is out of state only because of his or her own (or a spouse's) current military orders and provide the orders and most recent three months' Leave and Earnings Statements (LES) showing Texas to be the person's home. If the orders and LES do not both indicate Texas as the person's home, other documentation must be provided to support the person's claim to domicile in Texas.(c) For an otherwise eligible child to be entitled to the Hazlewood Act Exemption through the Hazlewood Legacy Program in a given term or semester, he or she must:(1) be classified by their institution as a resident of Texas for the term or semester for which the child claims the Hazlewood Act Exemption;(2) if a continuing or transfer student, meet the GPA requirement of the institution's satisfactory academic progress policy in a degree or certificate program as determined by the institution's financial aid policy; except the child is not required to enroll in a minimum course load and also meets all other requirements of Texas Education Code §54.2001; and(3) meet the age requirements set forth in subsection (d) of this section.(d) An eligible child must:(1) be 25 years of age or younger on the first day of the semester or other academic term for which the exemption is claimed; or(2) if the child is over the age of 25 and otherwise eligible for the exemption, the child must provide the institution documentation from a physician or a physician assistant indicating he or she suffered from a severe illness or other debilitating condition which prevented the child from using the exemption in the required timeframe. In this case, the student's eligibility shall be extended for a period of time equal to the time during which he or she experienced the illness or debilitating condition.(e) The Legacy recipient will receive exemption for the number of degree certified hours as referenced in §461.30(e) of this subchapter (relating to Hazlewood Act Exemption).</content><note type="source"><p>Source Note: The provisions of this §461.70 adopted to be effective June 5, 2014, 39 TexReg 4270; amended to be effective May 25, 2016, 41 TexReg 3753.</p></note></section><section identifier="/us/state/tx/tac/t40/p15/c461/scA/s461.80"><num value="461.80">§461.80</num><heading>The Application</heading><content>(a) Commission staff shall produce and distribute a state-wide Hazlewood Act Exemption Application, requiring institutions to obtain the following information from applicants for the exemption:(1) general information about the veteran, spouse, and/or child;(2) point of entry, home of record, or residency information for the time that the veteran entered the service;(3) residency information for the time that the veteran, spouse or child wishes to use the exemption;(4) a certification of the validity of the information provided by the veteran, spouse, or child; and(5) a statement granting permission to the institution to release current term or semester and historic credit hour information to the Commission and granting permission for the Commission to share such data with any institution that the veteran, spouse, or child might attend.(b) For an otherwise eligible veteran, spouse, or child to be entitled to the Hazlewood Act Exemption in a given term or semester, the applicant must have a completed Hazlewood Act Exemption Application and the supporting documentation on file with the institution no later than the last class date of the semester or term to which the exemption applies.(c) All institutions shall require the completed Hazlewood Act Exemption Application with supporting documentation once each academic year in which an exemption is granted.(d) Institutions may, at their discretion, develop an online Hazlewood Act Exemption Application. At a minimum, the secure online application must contain:(1) all the information contained on the current application issued by the Commission;(2) a verification of the veteran and/or student certification of information and consent for use.</content><note type="source"><p>Source Note: The provisions of this §461.80 adopted to be effective June 5, 2014, 39 TexReg 4270; amended to be effective May 25, 2016, 41 TexReg 3753.</p></note></section><section identifier="/us/state/tx/tac/t40/p15/c461/scA/s461.90"><num value="461.90">§461.90</num><heading>Supporting Documentation for the Hazlewood Act Exemption Application</heading><content>(a) Veterans: When applying for the first time for the Hazlewood Act Exemption, a veteran shall provide to the institution the Hazlewood Act Exemption Application, along with the following supporting documentation:(1) a copy of the veteran's Certificate of Release or Discharge from Active Duty (DD FORM 214) or equivalent document. If the veteran's service period ended before the use of DD FORM 214, then the following forms may be substituted for the DD FORM 214:(A) WD AGO 53, Enlisted Record and Report of Separation Honorable Discharge;(B) WD AGO 53-55, Enlisted Record and Report of Separation Honorable Discharge;(C) WD AGO 53-58, Enlisted Record and Report of Separation General Discharge;(D) NAVCG-553, Notice of Separation from U.S. Coast Guard;(E) NAVMC 78-PD, U.S. Marine Corps Report of Separation;(F) NAVPERS-553, Notice of Separation from U.S. Naval Service; or(G) NA Form 13038, Certification of Military Service. This form may only be used upon written verification from the National Archives that a DD Form 214 or equivalent discharge document has been lost or destroyed and may only be used to verify days of qualifying service and character of service.(2) a certificate of eligibility from the VA Regional Processing Office for federal education benefits if the veteran served active duty military service on or after September 11, 2001; and(3) proof that the veteran is not in default on an educational loan made or guaranteed by the State of Texas.(b) Spouse or Child: When applying for the first time for the Hazlewood Act Exemption, a spouse or child shall provide to the institution the Hazlewood Act Exemption Application, along with the following supporting documentation:(1) proof that the veteran's death (DD FORM 1300) or disability (VA rating decision letter) was a result of an injury or illness directly associated with military service;(2) a certificate of eligibility from the VA Regional Processing Office for federal education benefits if the veteran served active duty military service on or after September 11, 2001;(3) if a child, proof that he or she is the child of an eligible veteran (birth certificate, or marriage certificate between the veteran and child's birth or adoptive parent, or adoption certificate, or the veteran's federal income tax return);(4) if a spouse, proof that he or she was the spouse of the veteran at the time the veteran died or is the current spouse of an otherwise eligible member of the military who sustained a disabling injury or is classified as missing in action (MIA) (marriage certificate or federal income tax return);(5) documentation that the veteran, at the time he or she entered the service, was a resident of Texas, entered the service in the State of Texas (DD FORM 214), or declared Texas as his or her home of record in the manner provided by the military or other service (DD FORM 214);(6) for the spouse or child of a disabled veteran or guardsman, a rating decision letter from the Department of Veterans Affairs verifying that the veteran has been rated totally and permanently disabled or meets the eligibility requirements for individual unemployability according to the disability ratings of the Department of Veterans Affairs; and(7) proof that the spouse or child is not in default on an educational loan made or guaranteed by the State of Texas.(c) Hazlewood Legacy Act: When applying for the first time for the Hazlewood Legacy Act transfer, a child shall provide to the institution the Hazlewood Act Exemption Application, along with the following supporting documentation:(1) birth certificate, or marriage certificate between the veteran and child's birth or adoptive parent, or adoption certificate, or most recent federal income tax return;(2) certificate of eligibility from the VA Regional Processing Office for federal education benefits if the veteran served active duty military service on or after September 11, 2001;(3) proof that the child and the qualifying veteran are not in default on an educational loan made or guaranteed by the State of Texas; and(4) a copy of the veteran's Certificate of Release or Discharge from Active Duty (DD FORM 214) or equivalent document. If the veteran's service period ended before the use of DD FORM 214, then the following forms may be substituted for the DD FORM 214:(A) WD AGO 53, Enlisted Record and Report of Separation Honorable Discharge;(B) WD AGO 53-55, Enlisted Record and Report of Separation Honorable Discharge;(C) WD AGO 53-58, Enlisted Record and Report of Separation General Discharge;(D) NAVCG-553, Notice of Separation from U.S. Coast Guard;(E) NAVMC 78-PD, U.S. Marine Corps Report of Separation;(F) NAVPERS-553, Notice of Separation from U.S. Naval Service; or(G) NA Form 13038, Certification of Military Service. This form may only be used upon written verification from the National Archives that a DD Form 214 or equivalent discharge document has been lost or destroyed and may only be used to verify days of qualifying service and character of service.(d) In the event that there is conflicting information received regarding an individual's Hazlewood application with other information held by the institution, the institution must determine how to reconcile that conflicting information and may request additional information for this purpose.</content><note type="source"><p>Source Note: The provisions of this §461.90 adopted to be effective June 5, 2014, 39 TexReg 4270; amended to be effective May 25, 2016, 41 TexReg 3753.</p></note></section><section identifier="/us/state/tx/tac/t40/p15/c461/scA/s461.100"><num value="461.100">§461.100</num><heading>Subsequent Hazlewood Exemption Award</heading><content>(a) For each subsequent academic term in which an eligible person receives the Hazlewood Act Exemption, the institution shall confirm that the eligible person:(1) has not exhausted the 150 credit hours of eligibility through the program since Fall 1995;(2) resides in Texas or qualifies for an exception as provided in §461.40 of this subchapter (relating to Veteran Eligibility), which applies only to veterans, or is still classified as a resident student (applies only to a spouse, child or Legacy recipient);(3) has met the requirements of Texas Education Code §54.2001;(4) is not in default on an educational loan made or guaranteed by the State of Texas; and(5) if the eligible person is a spouse or child, confirms that the documentation required by §§461.90(b)(3), 461.90(b)(4), or 461.90(c)(1) of this subchapter (relating to Supporting Documentation for the Hazlewood Act Exemption Application) is still currently valid.(b) An eligible person may submit the Hazlewood Application for Continued Enrollment once each academic year after initial application to maintain continued eligibility for the exemption.(c) Institutions may, at their discretion, develop an online Hazlewood Application for Continued Enrollment. At a minimum, the secure online application must contain:(1) all the information contained on the current Hazlewood Application for Continued Enrollment issued by the Commission; and(2) a verification of student certification of information and consent for use.</content><note type="source"><p>Source Note: The provisions of this §461.100 adopted to be effective June 5, 2014, 39 TexReg 4270; amended to be effective May 25, 2016, 41 TexReg 3753.</p></note></section><section identifier="/us/state/tx/tac/t40/p15/c461/scA/s461.110"><num value="461.110">§461.110</num><heading>Enrollment Data to the Commission and Institutions</heading><content>The eligible person shall execute a statement, consenting to the release of the number of hours taken in the current academic year and in all previous academic years to the Commission and to any institution that he or she may attend.</content><note type="source"><p>Source Note: The provisions of this §461.110 adopted to be effective June 5, 2014, 39 TexReg 4270.</p></note></section><section identifier="/us/state/tx/tac/t40/p15/c461/scA/s461.120"><num value="461.120">§461.120</num><heading>Reporting</heading><content>(a) All institutions shall report to the Commission, by means specified by the Commission, data related to the eligible persons who receive exemptions under this subchapter. Such data will include:(1) the name of the institution;(2) the name, social security number, and date of birth of each individual receiving benefits for the semester;(3) for each individual receiving benefits, the number of credit hours for which the individual received an exemption for the semester; and(4) any other information required by the Commission.(b) All institutions shall report the required information not later than:(1) January 31st of each year for the fall semester;(2) June 30th of each year for the spring semester; and(3) September 30th of each year for the summer session.(c) Reporting of Courses Measured in CEUs.(1) Courses exempted under this subchapter that are measured in CEUs shall be reported to the Commission after conversion to semester credit hours.(2) Based on the definitions of this subchapter and by the course instruction criteria listed in 19 Texas Administrative Code §4.6(a), the conversion ratio of CEUs to semester credit hours shall be one (1) CEU equaling 0.625 semester credit hours.(3) When reporting the converted hours to the Commission, institutions shall round any fraction of a semester credit hour up to the nearest whole number.(d) An institution may receive an extension to a reporting deadline for up to two weeks upon written request from the institution's Chancellor or President to the Veterans Education Director of the Commission.</content><note type="source"><p>Source Note: The provisions of this §461.120 adopted to be effective June 5, 2014, 39 TexReg 4270; amended to be effective May 25, 2016, 41 TexReg 3753.</p></note></section><section identifier="/us/state/tx/tac/t40/p15/c461/scA/s461.130"><num value="461.130">§461.130</num><heading>Records Retention by Institutions</heading><content>(a) Institutions shall retain processed Hazlewood Act initial and subsequent application materials for:(1) at least three years from the student's last date of attendance; or(2) a time period greater than three years from the student's last date of attendance as the institution may direct.(b) Institutions may retain records through electronic means, subject to applicable state and federal record keeping requirements.</content><note type="source"><p>Source Note: The provisions of this §461.130 adopted to be effective May 25, 2016, 41 TexReg 3753.</p></note></section></subchapter><subchapter identifier="/us/state/tx/tac/t40/p15/c461/scB"><num value="B">SUBCHAPTER B</num><heading>VETERAN EDUCATION EXCELLENCE RECOGNITION AWARD (VEERA) NETWORK</heading><section identifier="/us/state/tx/tac/t40/p15/c461/scB/s461.200"><num value="461.200">§461.200</num><heading>Authority and Purpose</heading><content>(a) Authority. The authority for this subchapter is provided in Texas Government Code §434.252 relating to Veteran Education Excellence Recognition Award (VEERA) Network.(b) Purpose. The purpose of this subchapter is to provide procedures and criteria for the administration of the Veterans Education Excellence Recognition Award (VEERA) Network.</content><note type="source"><p>Source Note: The provisions of this §461.200 adopted to be effective August 29, 2018, 43 TexReg 5542; amended to be effective December 5, 2024, 49 TexReg 9768.</p></note></section><section identifier="/us/state/tx/tac/t40/p15/c461/scB/s461.201"><num value="461.201">§461.201</num><heading>Definitions</heading><content>The following words and terms, when used in this subchapter, shall have the following meanings, unless the context clearly states otherwise:(1) Commission--The Texas Veterans Commission.(2) Institution of Higher Education (IHE)--has the same meaning assigned by Texas Education Code §61.003.</content><note type="source"><p>Source Note: The provisions of this §461.201 adopted to be effective August 29, 2018, 43 TexReg 5542.</p></note></section><section identifier="/us/state/tx/tac/t40/p15/c461/scB/s461.202"><num value="461.202">§461.202</num><heading>Eligibility, Evaluation and Recognition</heading><content>(a) The Veteran Education Excellence Recognition Award (VEERA) Network is established to annually recognize outstanding Institutions of Higher Education (IHEs) for excellence in providing education and related services to veterans and that perform at an extremely high level and greatly contribute to the overall success of student veterans.(b) For the purpose of receiving an award the commission shall evaluate an IHE regarding, as applicable, the existence and quality of the services it provides to student veterans and other eligible family members. To be considered for the VEERA, an institution must:(1) Be an IHE as defined in Texas Education Code §61.003(8).(2) Self-nominate by submitting the required nomination package.(c) The VEERA is a non-competitive award which may be awarded to multiple qualified IHEs. Levels of Recognition:(1) Gold Award for Distinguished Services - recognizes those IHEs that meet all criteria of the Gold, Silver and Bronze levels of recognition, as outlined in the annual nomination packet;(2) Silver Award for Superior Services - recognizes those IHEs that meet all criteria of the Silver and Bronze levels of recognition, as outlined in the annual nomination packet;(3) Bronze Award for Excellent Services - recognizes those IHEs that meet all criteria of the Bronze level of recognition, as outlined in the annual nomination packet.(d) Evaluation criteria include:(1) Centralized place for students who are veterans to meet or find assistance and information;(2) An institution employee who serves as a central point of contact for students who are veterans;(3) A United States Department of Veterans Affairs work-study program;(4) Admission and enrollment policies for veterans;(5) New student orientation and courses for veterans;(6) A student organization for veterans;(7) Academic support services for students who are veterans;(8) Mental health and disability services;(9) A housing policy that applies to veterans;(10) Faculty and staff training on issues affecting students who are veterans;(11) Career services for students who are veterans; and(12) Any other criteria considered necessary or appropriate by the commission.(e) Nomination window opens annually on November 1 and closes on April 1.(f) Nomination packets shall include:(1) the Self-Nomination Form;(2) narrative statement describing impact of service, innovation and creativity, and effectiveness of support and services; and(3) video of IHE's service center and amenities as they relate to each qualifying category. Requests for nomination packets may be submitted to educationawards@tvc.texas.gov.(g) Nominations shall be screened for eligibility by an awards committee composed of three members of the commission staff.(h) Should the awards committee require additional clarifying information, the IHE will be notified and be given 10 business days to submit additional information.(i) The decision of the awards committee shall be final.</content><note type="source"><p>Source Note: The provisions of this §461.202 adopted to be effective August 29, 2018, 43 TexReg 5542.</p></note></section></subchapter></chapter><chapter identifier="/us/state/tx/tac/t40/p15/c462"><num value="462">CHAPTER 462</num><heading>ENERGY INDUSTRY PROGRAM FOR VETERAN PROFESSIONAL DEVELOPMENT</heading><subchapter identifier="/us/state/tx/tac/t40/p15/c462/sc"><num value="">SUBCHAPTER </num><heading></heading><section identifier="/us/state/tx/tac/t40/p15/c462/sc/s462.1"><num value="462.1">§462.1</num><heading>Authority and Purpose</heading><content>(a) Authority. The authority for this subchapter is provided in Texas Government Code §434.027(b) Purpose. The purpose of the Energy Industry Program for Veteran Professional Development is to provide assistance to veterans seeking training to prepare for employment in the energy industry.</content><note type="source"><p>Source Note: The provisions of this §462.1 adopted to be effective March 2, 2022, 47 TexReg 953.</p></note></section><section identifier="/us/state/tx/tac/t40/p15/c462/sc/s462.2"><num value="462.2">§462.2</num><heading>Definitions</heading><content>The following words and terms, when used in this chapter, shall have the following meanings, unless the context clearly indicates otherwise;(1) Veteran--as stated in 38 CFR § 3.1(d).(2) Commission--Texas Veterans Commission.(3) V.E.S.--Veterans Employment Services.(4) A.J.C.--American Job Centers.(5) Workforce Solutions--American Job Centers in Texas.</content><note type="source"><p>Source Note: The provisions of this §462.2 adopted to be effective March 2, 2022, 47 TexReg 953.</p></note></section><section identifier="/us/state/tx/tac/t40/p15/c462/sc/s462.3"><num value="462.3">§462.3</num><heading>Process</heading><content>(a) The Commission assists veterans by providing information on federal and state resources that are available to assist them in obtaining training or employment in the State's energy industry.(b) To receive assistance from the Energy Industry Program for Veteran Professional Development through the Commission, a veteran must:(1) Visit the American Job Center/Workforce Solutions and enroll in the Work in Texas job matching system; and(2) provide documentation as required to staff for determination of assistance available to veterans.</content><note type="source"><p>Source Note: The provisions of this §462.3 adopted to be effective March 2, 2022, 47 TexReg 953.</p></note></section><section identifier="/us/state/tx/tac/t40/p15/c462/sc/s462.4"><num value="462.4">§462.4</num><heading>Outreach Campaign for Energy Industry Program for Veterans Professional Development</heading><content>(a) The Commission, in coordination with the General Land Office (GLO) and Veterans' Land Board (VLB), shall conduct an outreach campaign to encourage veterans to participate in the program by contacting their nearest American Job Center /Workforce Solutions for assistance.(b) The coordination and responsibilities of the outreach campaign shall be added to the existing Memorandum of Understanding between the TVC, GLO and VLB.</content><note type="source"><p>Source Note: The provisions of this §462.4 adopted to be effective March 2, 2022, 47 TexReg 953.</p></note></section></subchapter></chapter><chapter identifier="/us/state/tx/tac/t40/p15/c464"><num value="464">CHAPTER 464</num><heading>CITIZENSHIP ASSISTANCE FOR VETERANS</heading><subchapter identifier="/us/state/tx/tac/t40/p15/c464/sc"><num value="">SUBCHAPTER </num><heading></heading><section identifier="/us/state/tx/tac/t40/p15/c464/sc/s464.1"><num value="464.1">§464.1</num><heading>Authority and Purpose</heading><content>(a) Authority. The authority for this subchapter is provided in Texas Government Code §434.0027, relating to citizenship assistance for veterans.(b) Purpose. The purpose of citizenship assistance for veterans is to educate and direct veterans in becoming United States citizens; and to facilitate veterans' naturalization processes.</content><note type="source"><p>Source Note: The provisions of this §464.1 adopted to be effective March 2, 2022, 47 TexReg 954.</p></note></section><section identifier="/us/state/tx/tac/t40/p15/c464/sc/s464.2"><num value="464.2">§464.2</num><heading>Definitions</heading><content>The following words and terms, when used in this chapter, shall have the following meanings, unless the context clearly indicates otherwise.(1) Veteran--A person who has been a member of the Army, Navy, Air Force, Marines, Space Force or Coast Guard of the United States.(2) Commission--Texas Veterans Commission.(3) USCIS--U.S. Citizenship and Immigration Services.(4) INA--Immigration and Nationality Act.</content><note type="source"><p>Source Note: The provisions of this §464.2 adopted to be effective March 2, 2022, 47 TexReg 954.</p></note></section><section identifier="/us/state/tx/tac/t40/p15/c464/sc/s464.3"><num value="464.3">§464.3</num><heading>Process</heading><content>(a) To receive assistance from the Commission, a veteran must:(1) request assistance from the Commission to obtain information on the citizenship process;(2) provide required documentation to the USCIS to facilitate the citizenship process;(3) follow through with requirements of the USCIS to complete the process for obtaining citizenship or naturalization; and(4) agree to pay for any fees required by the USCIS to complete the process for obtaining citizenship or naturalization.(b) The Commission assists veterans by providing information on federal resources that are available to assist them in the process. The Commission does not provide legal advice and does not file forms on behalf of veterans.</content><note type="source"><p>Source Note: The provisions of this §464.3 adopted to be effective March 2, 2022, 47 TexReg 954.</p></note></section></subchapter></chapter></part><part identifier="/us/state/tx/tac/t40/p17"><num value="17">PART 17</num><heading>STATE PENSION REVIEW BOARD</heading><chapter identifier="/us/state/tx/tac/t40/p17/c601"><num value="601">CHAPTER 601</num><heading>GENERAL PROVISIONS</heading><subchapter identifier="/us/state/tx/tac/t40/p17/c601/sc"><num value="">SUBCHAPTER </num><heading></heading><section identifier="/us/state/tx/tac/t40/p17/c601/sc/s601.1"><num value="601.1">§601.1</num><heading>Purpose</heading><content>The rules and regulations of the State Pension Review Board are set forth for the purpose of interpreting and implementing Texas Government Code, Title 8, Subtitle A, Chapters 801 and 802, and to establish general policies.</content><note type="source"><p>Source Note: The provisions of this §601.1 adopted to be effective August 24, 1992, 17 TexReg 5554; amended to be effective April 15, 2020, 45 TexReg 2425.</p></note></section><section identifier="/us/state/tx/tac/t40/p17/c601/sc/s601.20"><num value="601.20">§601.20</num><heading>Citations</heading><content>The rules and regulations shall be known, and may be cited as, rules of the board.</content><note type="source"><p>Source Note: The provisions of this §601.20 adopted to be effective August 24, 1992, 17 TexReg 5554.</p></note></section><section identifier="/us/state/tx/tac/t40/p17/c601/sc/s601.30"><num value="601.30">§601.30</num><heading>Severability</heading><content>If any provisions of these rules or the application thereof to any person or circumstance is invalid, such invalidity shall not affect other provisions or application of these rules which shall be given effect without the invalid provision or application, and to this end the provisions of these rules are declared to be severable.</content><note type="source"><p>Source Note: The provisions of this §601.30 adopted to be effective August 24, 1992, 17 TexReg 5554.</p></note></section><section identifier="/us/state/tx/tac/t40/p17/c601/sc/s601.40"><num value="601.40">§601.40</num><heading>Definitions</heading><content>The following words and terms, when used in these rules, shall have the following meanings, unless the context clearly indicates otherwise.(1) Board--The State Pension Review Board.(2) Executive director--The executive head of the board employed to perform its administrative duties.(3) Member--A member of the board.</content><note type="source"><p>Source Note: The provisions of this §601.40 adopted to be effective August 24, 1992, 17 TexReg 5554.</p></note></section><section identifier="/us/state/tx/tac/t40/p17/c601/sc/s601.50"><num value="601.50">§601.50</num><heading>Office</heading><content>The board shall maintain an office as its official place of business, which shall be the board's office for its executive director, staff, and records, in Austin.</content><note type="source"><p>Source Note: The provisions of this §601.50 adopted to be effective August 24, 1992, 17 TexReg 5554.</p></note></section><section identifier="/us/state/tx/tac/t40/p17/c601/sc/s601.60"><num value="601.60">§601.60</num><heading>Petition for Adoption of Rules</heading><content>Petitions. Any interested person may submit a written petition to the executive director or the Board requesting the adoption of a rule. Within 60 days of the receipt of the petition, the executive director will either:(1) Send written reasons to the interested party stating the reasons for not submitting the matter to rulemaking proceedings; or(2) Initiate rulemaking procedures as governed by the Texas Government Code Chapter 2001.</content><note type="source"><p>Source Note: The provisions of this §601.60 adopted to be effective January 7, 2008, 33 TexReg 287.</p></note></section><section identifier="/us/state/tx/tac/t40/p17/c601/sc/s601.70"><num value="601.70">§601.70</num><heading>State Employee Sick and Family Leave Pools</heading><content>(a) A sick leave pool is established to help alleviate hardship caused to an employee and the employee's immediate family if a catastrophic injury or illness forces the employee to exhaust all eligible leave time earned by that employee and to lose compensation from the state.(b) A family leave pool is established to help alleviate hardship caused to provide eligible state employees more flexibility in bonding with and caring for children during a child's first year following birth, adoption, or foster placement and for caring for a seriously ill family member or the employee.(c) The executive director or designee shall administer both pools.(d) The executive director or designee will establish operating procedures and forms for the administration of this section for inclusion in the agency's personnel policies and procedures manual.(e) Operation of both pools shall be consistent with Chapter 661, Texas Government Code.</content><note type="source"><p>Source Note: The provisions of this §601.70 adopted to be effective August 15, 2024, 49 TexReg 6028.</p></note></section></subchapter></chapter><chapter identifier="/us/state/tx/tac/t40/p17/c603"><num value="603">CHAPTER 603</num><heading>OFFICERS AND MEETINGS</heading><subchapter identifier="/us/state/tx/tac/t40/p17/c603/sc"><num value="">SUBCHAPTER </num><heading></heading><section identifier="/us/state/tx/tac/t40/p17/c603/sc/s603.1"><num value="603.1">§603.1</num><heading>Person for Service of Process</heading><content>The name and address of the person designated by the board upon whom service of process may be served in judicial procedures against the board is the executive director at the address of the official place of business of the board.</content><note type="source"><p>Source Note: The provisions of this §603.1 adopted to be effective August 24, 1992, 17 TexReg 5554.</p></note></section></subchapter></chapter><chapter identifier="/us/state/tx/tac/t40/p17/c604"><num value="604">CHAPTER 604</num><heading>HISTORICALLY UNDERUTILIZED BUSINESS PROGRAM</heading><subchapter identifier="/us/state/tx/tac/t40/p17/c604/sc"><num value="">SUBCHAPTER </num><heading></heading><section identifier="/us/state/tx/tac/t40/p17/c604/sc/s604.1"><num value="604.1">§604.1</num><heading>Historically Underutilized Businesses</heading><content>In accordance with Texas Government Code §2161.003, the Board adopts by reference the rules of the Comptroller of Public Accounts in 34 TAC Part 1, Chapter 20, Subchapter D, Division 1, regarding historically underutilized businesses. A copy of the Comptroller of Public Accounts rules may be obtained by writing to: Executive Director, State Pension Review Board, P.O. Box 13498, Austin, Texas 78711-3498, or by accessing the website of the Secretary of State, at www.sos.texas.gov/tac/.</content><note type="source"><p>Source Note: The provisions of this §604.1 adopted to be effective July 15, 2001, 26 TexReg 5061; amended to be effective December 30, 2004, 29 TexReg 11988; amended to be effective January 7, 2009, 34 TexReg 65; amended to be effective April 15, 2020, 45 TexReg 2425.</p></note></section></subchapter></chapter><chapter identifier="/us/state/tx/tac/t40/p17/c605"><num value="605">CHAPTER 605</num><heading>STANDARDIZED FORM</heading><subchapter identifier="/us/state/tx/tac/t40/p17/c605/sc"><num value="">SUBCHAPTER </num><heading></heading><section identifier="/us/state/tx/tac/t40/p17/c605/sc/s605.1"><num value="605.1">§605.1</num><heading>Adoption of Standard Forms</heading><content>(a) The Board hereby adopts by reference the standard forms identified under subsection (b) of this section to assist in efficiently determining the actuarial soundness and current financial condition of public retirement systems and to assist in the conduct of the Board's business, pursuant to Section 801.201(c), Texas Government Code.(b) The standard forms hereby adopted by the Board are the following:(1) Pension System Registration--Form Series PRB-100;(2) Membership Report--Form Series PRB-200;(3) Financial Statement Report--Form Series PRB-300;(4) Actuarial Report--Form Series PRB-400;(5) Benefits Report--Form Series PRB-500;(6) Investment Returns and Assumptions Report--Form Series PRB-1000.(c) A public retirement system can obtain the most current version of these forms from the offices of the State Pension Review Board and from its website at http://www.prb.texas.gov.</content><note type="source"><p>Source Note: The provisions of this §605.1 adopted to be effective July 14, 2003, 28 TexReg 5544; amended to be effective May 8, 2007, 32 TexReg 2480; amended to be effective December 8, 2013, 38 TexReg 8916; amended to be effective August 15, 2024, 49 TexReg 6029.</p></note></section><section identifier="/us/state/tx/tac/t40/p17/c605/sc/s605.3"><num value="605.3">§605.3</num><heading>Submission of Forms</heading><content>(a) A public retirement system must complete and submit to the Board the standard forms identified as Form numbers PRB-100, PRB-200, PRB-300, PRB-400, PRB-500, and PRB-1000 in §605.1 of this chapter relating to Adoption of Standard Forms.(b) A public retirement system must submit the forms with the information the system submits to the Board as a result of reviews and studies conducted by the Board regarding the actuarial soundness and current financial condition of the fund the system administers.(c) Defined contribution plans as defined by Texas Government Code, §802.001(1-a) and retirement systems consisting exclusively of volunteers organized under the Texas Local Fire Fighters' Retirement Act as defined by Texas Government Code, §802.002(d), are not required to submit to the Board Form PRB-1000.</content><note type="source"><p>Source Note: The provisions of this §605.3 adopted to be effective July 14, 2003, 28 TexReg 5545; amended to be effective May 8, 2007, 32 TexReg 2480; amended to be effective December 8, 2013, 38 TexReg 8916; amended to be effective April 15, 2020, 45 TexReg 2426; amended to be effective August 15, 2024, 49 TexReg 6029.</p></note></section></subchapter></chapter><chapter identifier="/us/state/tx/tac/t40/p17/c607"><num value="607">CHAPTER 607</num><heading>PUBLIC RETIREMENT SYSTEM MINIMUM EDUCATIONAL TRAINING PROGRAM</heading><subchapter identifier="/us/state/tx/tac/t40/p17/c607/scA"><num value="A">SUBCHAPTER A</num><heading>GENERAL PROVISIONS</heading><section identifier="/us/state/tx/tac/t40/p17/c607/scA/s607.101"><num value="607.101">§607.101</num><heading>Authority</heading><content>This chapter is promulgated under the authority of Texas Government Code, §801.201, relating to rulemaking, and §801.211, relating to a public retirement system educational training program.</content><note type="source"><p>Source Note: The provisions of this §607.101 adopted to be effective October 16, 2024, 49 TexReg 8398.</p></note></section><section identifier="/us/state/tx/tac/t40/p17/c607/scA/s607.103"><num value="607.103">§607.103</num><heading>Purpose</heading><content>(a) The Public Retirement System Educational Training Program, as mandated by §801.211 of the Texas Government Code, is intended to ensure that every trustee and system administrator of a public retirement system in Texas pursues the necessary education relating to public pension matters throughout his or her tenure to successfully discharge their duties.(b) This chapter will establish Minimum Educational Training requirements for Trustees and Administrators to help ensure that these trustees and administrators participate in training activities that maintain and improve their core competencies, and keep them abreast of recent developments in public pension matters and issues impacting their respective duties.(c) This chapter is not intended to dictate that trustees and system administrators pursue only the Minimum Educational Training, but to set a minimum standard for training/education. Trustees and system administrators are encouraged to pursue additional educational opportunities in public pension-related areas.</content><note type="source"><p>Source Note: The provisions of this §607.103 adopted to be effective October 16, 2024, 49 TexReg 8398.</p></note></section><section identifier="/us/state/tx/tac/t40/p17/c607/scA/s607.104"><num value="607.104">§607.104</num><heading>Definitions</heading><content>The following words and terms, for the purposes of this chapter, shall have the following meanings, unless the rule indicates otherwise.(1) "Board" means the State Pension Review Board.(2) "Credit hour" means the actual amount of instruction time for an MET activity expressed in terms of hours. The number of MET credit hours shall be based on sixty (60) minutes of instruction per hour.(3) "First year of service" means:(A) On or before December 31, 2024, the twelve-month period beginning from the date of assuming one's position on the PRS board or date of hire for an administrator.(B) On or after January 1, 2025, the calendar year in which an individual assumes one's position on the PRS board or is hired to serve as administrator if that date occurs before September 1 of that calendar year. For individuals who assume a position on the PRS board or are hired to serve as administrator on or after September 1 of a calendar year, the first year of service refers to the next calendar year.(4) "Minimum Educational Training" shall have the same meaning as assigned by §607.110 of this chapter.(5) "MET" means Minimum Educational Training.(6) "MET activity" means any organized in-person or on-line pension-related educational activity, which may include, but is not limited to, organized seminars, courses, conferences, lectures, panel discussions, audio, teleconference, video, and digital media presentations, question-and-answer periods, and in-house education.(7) "Net actual instruction time" means time spent on instruction, not including any breaks, or other non-educational activities including promotion of particular products or services as prescribed by §607.120(a)(3) of this chapter (relating to Program Standards for All Training Providers).(8) "Public retirement system" shall have the same meaning as assigned by §801.001(2) and §802.001(3) of the Texas Government Code, but shall not include defined contribution plans as defined by Texas Government Code, §802.001(1-a) and retirement systems consisting exclusively of volunteers organized under the Texas Local Fire Fighters' Retirement Act as defined by Texas Government Code, §802.002(d).(9) "PRS" means public retirement system.(10) "PRS board" has the same meaning as "governing body of a public retirement system," as provided in Texas Government Code §802.001(2).(11) "Statutorily authorized designee" means an individual other than the trustee, designated by the trustee as authorized under the governing statute of the PRS or any other statute.(12) "System administrator" means as defined by Texas Government Code §801.001(3) and §802.001(4).(13) "Training provider" means an individual or organization offering training programs to trustees and system administrators. The training provider may or may not have developed the program materials. However, the training provider is responsible for ensuring the program materials present the necessary learning objectives and for maintaining the documentation required by this chapter.(14) "Trustee" means as provided in Texas Government Code §801.001(4).</content><note type="source"><p>Source Note: The provisions of this §607.104 adopted to be effective October 16, 2024, 49 TexReg 8398.</p></note></section><section identifier="/us/state/tx/tac/t40/p17/c607/scA/s607.105"><num value="607.105">§607.105</num><heading>Applicability</heading><content>This chapter is promulgated to establish the MET requirements for the following.(1) Trustees, as defined in Texas Government Code, §801.001(4), in their capacity as members of the governing body of a PRS, as that term is defined in Texas Government Code §802.001(2). However, this chapter does not apply to:(A) members of a PRS' sponsoring entity board that is only responsible for the creation, termination and amendment of the PRS; and(B) members of a committee appointed by a PRS' sponsoring entity board to act in an advisory or oversight capacity only by providing guidance or recommendations.(2) Statutorily authorized designees serving as members of the governing body of a PRS.(3) System administrators, as defined by Texas Government Code, §801.001(3) and §802.001(4).</content><note type="source"><p>Source Note: The provisions of this §607.105 adopted to be effective October 16, 2024, 49 TexReg 8398.</p></note></section><section identifier="/us/state/tx/tac/t40/p17/c607/scA/s607.107"><num value="607.107">§607.107</num><heading>Exemption for Certain System Administrators</heading><content>(a) For the purposes of this section, an "outside entity" is a bank or financial institution.(b) The Board may grant an exemption to a PRS for certain types of system administrators from the MET requirements on a case-by-case basis if:(1) the PRS designates an outside entity as the system administrator, and the PRS board of trustees or its designee completes and forwards to the Board a request for exemption on a form provided by the Board indicating the same; or(2) the PRS does not have a system administrator that meets the statutory definition as contained in the Texas Government Code, §801.001(3) and §802.001(4) and the PRS board or its designee completes and forwards to the Board a request for exemption, on a form provided by the Board, certifying that the PRS does not have a system administrator. The request shall include a statement affirming that one or more trustees of the PRS are responsible for the duties of the system administrator and are already subject to the MET requirements.(c) If the Board granted an exemption to a PRS under subsection (a) of this section and the exemption is no longer applicable, the PRS shall report the same to the Board, and the exemption shall be revoked.</content><note type="source"><p>Source Note: The provisions of this §607.107 adopted to be effective October 16, 2024, 49 TexReg 8398.</p></note></section></subchapter><subchapter identifier="/us/state/tx/tac/t40/p17/c607/scB"><num value="B">SUBCHAPTER B</num><heading>MINIMUM EDUCATIONAL TRAINING REQUIREMENTS FOR TRUSTEES AND SYSTEM ADMINISTRATORS</heading><section identifier="/us/state/tx/tac/t40/p17/c607/scB/s607.110"><num value="607.110">§607.110</num><heading>Minimum Educational Training Requirements</heading><content>(a) First year of service. A new trustee and a new system administrator shall complete at least seven (7) credit hours of training in the core content areas within the first year of service. The seven credit hours shall include training in all of the core content areas. A trustee or system administrator must earn no less than half a credit hour in each content area. No more than two credit hours earned in any one core content area shall be applied toward meeting the 7-hour minimum requirement contained in this subsection. The core content areas are:(1) fiduciary matters;(2) governance;(3) ethics;(4) investments;(5) actuarial matters;(6) benefits administration; and(7) risk management.(b) A new trustee or system administrator may submit to the Board an application for a one-time extension period of three months to complete the first year of service core training requirement, which the Board may approve in exceptional circumstances. The request for extension must be approved by the chair of the PRS' board, or, for an extension request by the PRS board chair, approved by the vice chair of the PRS' board or its administrator. The application must be submitted to the Board on a form prescribed by the Board and must include an explanation of the circumstances necessitating the extension.(c) Subsequent years of service. A trustee and a system administrator shall complete at least two (2) credit hours of continuing education in either the core content areas in subsection (a) of this section, continuing education content areas, or any combination thereof, within each calendar year after the first year of service as a new trustee or new system administrator. The continuing education content areas include:(1) compliance;(2) legal and regulatory matters;(3) pension accounting;(4) custodial issues;(5) plan administration;(6) Texas Open Meetings Act; and(7) Texas Public Information Act.(d) A trustee or administrator may not carry over continuing education credit hours earned in excess of the requirement under subsection (c) of this section to a subsequent calendar year.(e) MET completed up to six months before the trustee's date of assuming position on the PRS board or system administrator's hiring date may be counted for the first-year-of-service requirement in subsection (a) of this section.(f) A trustee serving concurrently on multiple PRS boards and a system administrator employed concurrently by multiple PRSs shall only be required to complete the MET requirements in this section for service with one PRS, so long as the concurrent service or employment is reported to the Board pursuant to §607.140(b)(3) of this chapter.(g) Credit hours for attending MET activities shall be based on net actual instruction time. Credit hours for viewing or listening to audio, video, or digital media shall be based on the running time of the recordings, and credit hours for attending in-person educational programs shall be based on actual instruction time.(h) A trustee or administrator may gain credit for teaching an accredited MET activity. Credit hours shall be based on net actual presentation time, but may not include repeated presentations of the same activity in a single calendar year.(i) The Board hereby adopts by reference the Curriculum Guide for Minimum Educational Training to provide further direction on core and continuing education content areas as contained in subsections (a) and (c) of this section. Trustees and system administrators are encouraged to review the Curriculum Guide for content area guidance.(j) The Board shall make the Curriculum Guide for Minimum Educational Training available to the PRSs. A PRS can obtain the most current version of the Curriculum Guide for Minimum Educational Training from the offices of the State Pension Review Board and from its website at http://www.prb.texas.gov.(k) The 2025 calendar year training cycle for trustees and administrators shall be based on their MET compliance status on December 31, 2024, as detailed below. This subsection expires on December 31, 2025.(1) Trustees and administrators within their first year of service on December 31, 2024 who have completed by that date the training required by subsection (a) of this section shall begin their first continuing education cycle in calendar year 2025.(2) Trustees and administrators within their first year of service on December 31, 2024 who have not completed by that date the training required by subsection (a) of this section shall complete the first year of service training in calendar year 2025.(3) Trustees and administrators who began a continuing education cycle, as required by subsection (c) of this section, in calendar year 2024 may carry over any hours completed in that year to the calendar year 2025 continuing education cycle. If a trustee or administrator completed more than two continuing education hours, those hours will not carry over to calendar year 2026.(4) Trustees and administrators who began a continuing education cycle, as required by subsection (c) of this section, in calendar year 2023 will begin a new continuing education cycle on January 1, 2025. Trustees and administrators who did not complete the training hours required in previous cycles will remain noncompliant and must complete all outstanding required credit hours.</content><note type="source"><p>Source Note: The provisions of this §607.110 adopted to be effective October 16, 2024, 49 TexReg 8398.</p></note></section><section identifier="/us/state/tx/tac/t40/p17/c607/scB/s607.113"><num value="607.113">§607.113</num><heading>Minimum Educational Training Requirements for Reappointed and Re-elected Trustees and Rehired System Administrators</heading><content>(a) The following provisions shall apply to:(1) A trustee who is reappointed or re-elected to a subsequent term of service for the same PRS or who leaves one PRS and is appointed as a trustee to another PRS;(2) A trustee who serves on multiple PRS boards;(3) A trustee who is subsequently hired by a PRS to serve as system administrator;(4) A system administrator who is rehired to a subsequent term of employment by the same PRS or who leaves one PRS and is hired as system administrator by another PRS;(5) A system administrator who is employed by multiple PRSs; and(6) A system administrator who is subsequently appointed or elected to a PRS board.(b) Unless more than five years have passed since the last date of the most recent term of service or employment, a person under subsection (a) of this section shall not be required to repeat the core training requirement already completed under §607.110(a) of this subchapter (relating to Minimum Educational Training Requirements) but shall complete the continuing education requirement in §607.110(c) of this subchapter within each calendar-year period served.(c) If more than five years have passed since the last date of most recent term of service or employment, a person under subsection (a) of this section shall be subject to both the core training requirement within the first year of service as contained in §607.110(a) of this subchapter and the continuing education requirement within each calendar-year period after the first year of service as contained in §607.110(c) of this subchapter.</content><note type="source"><p>Source Note: The provisions of this §607.113 adopted to be effective October 16, 2024, 49 TexReg 8398.</p></note></section></subchapter><subchapter identifier="/us/state/tx/tac/t40/p17/c607/scC"><num value="C">SUBCHAPTER C</num><heading>MINIMUM EDUCATIONAL TRAINING PROGRAM SPONSORS</heading><section identifier="/us/state/tx/tac/t40/p17/c607/scC/s607.120"><num value="607.120">§607.120</num><heading>Program Standards for All Training Providers</heading><content>(a) MET activities offered by training providers must comply with the following standards.(1) An MET activity shall constitute an organized program of learning dealing with matters related to public pensions, including the MET's core or continuing education content areas in §607.110 of this chapter (relating to Minimum Educational Training Requirements). Training providers are required to review the Curriculum Guide as referenced in §607.110 of this chapter for content area guidance.(2) An MET activity shall be conducted in a suitable facility by an individual or group qualified by professional or academic experience.(3) An MET activity shall be educational in nature and shall not include the promotion of particular products or services.(4) An MET activity shall be conducted in person, online via the internet, or by teleconference.(5) An MET activity shall meet all of the other requirements contained in this chapter.(b) An MET activity training provider shall determine, and inform participants, in advance of the course, of the course's learning or content objectives, any necessary prerequisites, the credit hours the course provides for each core and continuing education content area, and the total credit hours the course provides.(c) An MET activity training provider is responsible for ensuring the participants register their attendance during the MET activity. Training providers are responsible for assigning the appropriate number of credit hours for participants, including reduced hours for those participants who arrive late or leave early.(d) An MET activity training provider conducting online or other electronically-delivered courses including via pre-recorded audio or video shall verify participation by participants using one of the following methods:(1) Provide a completion code to the participant upon successful completion of the course. The participant shall provide the completion code to the training provider to demonstrate attendance and completion. Without receiving such code, the training provider shall not issue a certificate of completion to the participant.(2) Require participants to successfully complete a quiz on topics covered in the course.(3) Use software-based student verification or attendance checks to verify participation.(4) Use of another method to verify participation with approval from the Board.(e) Staff meetings and other settings cannot be claimed for fulfilling the MET requirements if they do not meet the provisions of this chapter.</content><note type="source"><p>Source Note: The provisions of this §607.120 adopted to be effective October 16, 2024, 49 TexReg 8398.</p></note></section><section identifier="/us/state/tx/tac/t40/p17/c607/scC/s607.122"><num value="607.122">§607.122</num><heading>MET Credit Hour Computation for Training Providers</heading><content>(a) Credit hours for attending MET activities shall be based on net actual instruction time. Training providers shall calculate the number of credit hours that should be given for an MET activity offered based on the net actual instruction time to be spent, and shall indicate the number on the MET activity materials. Fractional credit hours should be stated as decimals.(b) Credit hours for viewing or listening to audio, video, or digital media shall be based on the running time of the recordings. For digital media activities that do not consist entirely of audio or video recordings, training providers shall reasonably estimate the time needed to complete the course.(c) Credit hours for attending in-person educational programs shall be based on actual instruction time. Training providers shall adjust the credit hours for attendees who arrive late or leave early, as required by §607.120(c) of this chapter.</content><note type="source"><p>Source Note: The provisions of this §607.122 adopted to be effective October 16, 2024, 49 TexReg 8398.</p></note></section><section identifier="/us/state/tx/tac/t40/p17/c607/scC/s607.124"><num value="607.124">§607.124</num><heading>Training Provider Accreditation</heading><content>(a) The Board may allow any training provider of MET to become Board accredited if the training provider, in the opinion of the Board, demonstrates that it will comply with its obligations to the Board and that its programs will conform to the Board's standards as outlined in:(1) §607.120 of this chapter (relating to Program Standards for All Training Providers); and(2) §607.122 of this chapter (relating to MET Credit Hour Computation for Training Providers).(b) The Board will also require that each organization or individual applying to become a Board-accredited MET training provider agree that in the conduct of its business it will:(1) Not commit fraud, deceit or engage in fiscal dishonesty of any kind;(2) Not misrepresent facts or make false or misleading statements;(3) Not make false statements to the Board or to the Board's agents; and(4) Comply with the laws of the United States and the State of Texas.(c) Each organization or individual applying to become a Board accredited MET training provider must submit an application on a form provided by the Board. The Board will consider for approval only applications that are complete. As part of the application process, the Board may require the training provider to submit information regarding its organization, purpose, history of providing educational training activities, course outlines, and such additional information that the Board may deem relevant.(d) The Board shall review each application and notify the training provider of its acceptance or rejection. Approval of accredited training provider status will be based upon information received with the application, and such other information the Board shall deem relevant including, but not limited to, course offering and attendance history, approvals and denials of accreditation by other governmental entities, and complaints concerning past programs or the marketing thereof. An acceptance in any given year shall not bind the Board to accept a training provider in any future year.(e) Upon accreditation a training provider can represent that it is a Board accredited MET training provider. An accredited training provider shall include in promotional materials the following language: "We are accredited by the State Pension Review Board as a Minimum Educational Training (MET) training provider for Texas public retirement systems. This accreditation does not constitute an endorsement by the Board as to the quality of our MET program."(f) An accredited training provider is not required to comply with provisions contained in §607.128 of this chapter (relating to Accreditation of MET Activities from Non-Accredited Training Providers).(g) The Board may accredit a training provider to offer MET activities in the core content areas under §607.110(a) of this chapter (relating to Minimum Educational Training Requirements), the continuing education content areas under §607.110(c)(1) of this chapter, or both.(h) An accredited training provider shall be reviewed for renewal of accredited training provider status after an initial two-year period of accreditation, and again after each subsequent four-year period of accreditation, or at such other times as the Board deems reasonable. To be considered for renewal, an accredited training provider must submit a renewal application on a form provided by the Board. Review for renewal shall be based on the criteria stated in subsection (d) of this section.(i) Complaints concerning accredited training providers and MET activities may be directed to the Board. If the Board determines that a response is necessary from the training provider, the training provider shall be notified in writing and provided a copy of the complaint. The Board shall respond to all complaints within a reasonable time.(j) The Board, in its sole and exclusive discretion, may determine that an accredited training provider is not in compliance with the registration requirements, MET standards, or applicable Board rules. The Board will provide the accredited training provider reasonable notice of such a determination and shall provide the accredited training provider a reasonable opportunity to become compliant. If the Board determines the training provider is not in compliance, the Board may require the training provider to take corrective action and/or may terminate the training provider's accreditation. A training provider that has had its accreditation terminated or that has voluntarily surrendered its accreditation in lieu of corrective action may apply for reinstatement no sooner than six months after the effective date of the termination or surrender.(k) A training provider that requests reinstatement may do so by submitting a completed application as required by subsection (c) of this section. The applicant will be subject to all the requirements of this section.(l) Board decisions under this chapter are final and are not appealable. No portion of this chapter shall be interpreted or construed to create a right to a hearing, or to acknowledge or create any private right or interest.</content><note type="source"><p>Source Note: The provisions of this §607.124 adopted to be effective October 16, 2024, 49 TexReg 8398.</p></note></section><section identifier="/us/state/tx/tac/t40/p17/c607/scC/s607.126"><num value="607.126">§607.126</num><heading>Obligations of Accredited Training Providers</heading><content>(a) In order to support the reports required of PRSs, a training provider accredited under §607.124 of this chapter (relating to Training Provider Accreditation) shall retain the following records for five years following the date the program is completed:(1) an agenda or outline that describes the course content;(2) the name and title of each instructor for each topic;(3) time devoted to each topic;(4) each date and location of the presentation;(5) record of participation that reflects:(A) the credit hours earned by each trustee and system administrator participant; and(B) the number of non-trustee and non-administrator attendees; and(6) evaluations completed by trustee and system administrator participants pursuant to subsection (f) of this section.(b) The accredited training provider, upon request of the Board, shall immediately submit any of the records retained in subsection (a) of this section for review.(c) An accredited training provider shall at any reasonable time allow a member of the Board or Board staff, as part of a review of the training provider, to inspect the training provider's teaching facilities, examine the training provider's records, attend its courses or seminars at no charge, and review its program to determine compliance with the training provider accreditation requirements, MET standards, and all applicable Board rules.(d) An accredited training provider shall not use advertising that is false or misleading, or use any communication that, in the training provider's effort to promote its services, is coercive.(e) An accredited training provider, promptly upon the conclusion of the activity, but not later than 30 calendar days after the conclusion of the activity, shall provide to each trustee or system administrator participant a certificate of completion, reflecting the following information:(1) Name of participant;(2) Activity title;(3) Date and location of the activity;(4) Total accredited MET hours; and(5) Training provider name and contact information.(f) A training provider accredited to offer MET activities in the core content areas under §607.110(a) of this chapter (relating to Minimum Educational Training Requirements) shall promptly provide the information specified in subsection (e) of this section to the Board within 30 days of the conclusion of a core MET activity offered to satisfy the first year of service training requirement.(g) An accredited training provider shall include in each MET activity a process for participants and instructors to evaluate the quality of the activity, including whether:(1) Course objectives were met;(2) Facilities and technology were satisfactory;(3) Each instructor was effective; and(4) Program content was timely and effective.(h) Training providers shall inform instructors of the results of their performance evaluation in subsection (f) of this section, and should systematically review the evaluation process to ensure its effectiveness.</content><note type="source"><p>Source Note: The provisions of this §607.126 adopted to be effective October 16, 2024, 49 TexReg 8398.</p></note></section><section identifier="/us/state/tx/tac/t40/p17/c607/scC/s607.128"><num value="607.128">§607.128</num><heading>Accreditation of MET Activities from Non-Accredited Training Providers</heading><content>(a) MET activities may be accredited, on a case-by-case basis, upon the written application of a training provider or PRS on behalf of its own trustees or system administrator. All applications for accreditation of an MET activity by a non-accredited training provider shall:(1) be submitted at least 30 days in advance of the activity, although the Board, at its discretion, may approve applications filed less than 30 days in advance of the activity, or may approve applications filed after the activity;(2) be submitted on a form provided by the Board;(3) contain all information requested on the form;(4) be accompanied by a sample agenda or course outline that describes the course content, designates the courses sought to be accredited as an MET activity, identifies the instructors, lists the time devoted to each topic, and shows each date and location at which the program will be offered; and(5) include a detailed calculation of the total MET hours for the course and the hours that correspond to each core and continuing education topic the course covers.(b) A separate application is required for each activity unless the activity is being repeated in exactly the same format but on different dates and/or locations. Repeat presentations may be added to an existing application for a 36-month period following the effective date of accreditation.(c) The Board shall review each application and notify the applicant of acceptance or rejection of the activity. An acceptance in any given year shall not bind the Board to accept a training provider or activity in any future year.</content><note type="source"><p>Source Note: The provisions of this §607.128 adopted to be effective October 16, 2024, 49 TexReg 8398.</p></note></section><section identifier="/us/state/tx/tac/t40/p17/c607/scC/s607.130"><num value="607.130">§607.130</num><heading>Accreditation of In-House Training Activities</heading><content>(a) MET activities provided by PRSs or their hired consultants primarily for the education of their trustees and/or system administrators are considered in-house training, and may be accredited for MET credit. Education provided in-house must meet the standards in §607.120 of this chapter (relating to Program Standards for All Training Providers) and §607.122 of this chapter (relating to MET Credit Hour Computation for Training Providers), except that in-house training is not required to comply with the following provisions:(1) Section 607.120(c) of this chapter, regarding the requirement for ensuring participants register their attendance.(2) Section 607.126(a)(5)(B) of this chapter, regarding the requirement to maintain a record of the non-trustee and non-administrator attendees.(3) Section 607.126(e) of this chapter, regarding the requirement to provide participants a certificate of completion.(4) Section 607.126(f) of this chapter, regarding the requirement to provide the Board participant information for accredited core activities satisfying the first year of service training requirement because this training will be reported as specified in §607.140 of this chapter.(b) PRSs that conduct in-house training may apply to become accredited training providers under §607.124 of this chapter (relating to Training Provider Accreditation).(c) PRSs that conduct in-house training may submit individual courses for accreditation under §607.128 of this chapter (relating to Accreditation of MET Activities from Non-Accredited Training Providers).</content><note type="source"><p>Source Note: The provisions of this §607.130 adopted to be effective October 16, 2024, 49 TexReg 8398.</p></note></section></subchapter><subchapter identifier="/us/state/tx/tac/t40/p17/c607/scD"><num value="D">SUBCHAPTER D</num><heading>COMPLIANCE WITH THE MINIMUM TRAINING REQUIREMENTS</heading><section identifier="/us/state/tx/tac/t40/p17/c607/scD/s607.140"><num value="607.140">§607.140</num><heading>PRS Reporting</heading><content>(a) By April 1 of each year, a PRS shall accurately report to the Board on behalf of its trustees and system administrator the MET credit hours completed during the preceding calendar year and any previous unreported training, as required by subchapter B. A PRS shall submit the report on a completed PRB-2000 form provided by the Board.(b) By April 1 of each year, a PRS shall be responsible for providing the following information to the Board. A PRS shall also notify the Board of any changes in such information within 30 days after the date of the changes. A PRS shall submit this information on a completed PRB-150 form provided by the Board.(1) For each trustee: the name, mailing address, phone number, e-mail, position (such as Chair, Vice-Chair, Secretary, etc.), trustee type (such as Active, Retired, Citizen, etc.), term start date, the term length, and the term end date.(2) For a system administrator: the name, title, phone number, e-mail, and date of hire.(3) For each trustee serving concurrently on multiple PRS boards or system administrator employed concurrently by multiple PRSs, the name of the other PRSs.(c) The Board shall report on the noncompliance status of trustees and administrators annually.</content><note type="source"><p>Source Note: The provisions of this §607.140 adopted to be effective October 16, 2024, 49 TexReg 8398.</p></note></section><section identifier="/us/state/tx/tac/t40/p17/c607/scD/s607.142"><num value="607.142">§607.142</num><heading>PRS Records</heading><content>(a) For each trustee and system administrator, a PRS shall retain the following records for five years following the date an MET activity is completed:(1) the training provider's name;(2) the location of the MET activity;(3) date(s) of completion; and(4) the credit hours earned by the trustee or system administrator participant.(b) The PRS, upon request of the Board, shall immediately submit a copy of any of the records retained in subsection (a) of this section for review.</content><note type="source"><p>Source Note: The provisions of this §607.142 adopted to be effective October 16, 2024, 49 TexReg 8398.</p></note></section></subchapter></chapter><chapter identifier="/us/state/tx/tac/t40/p17/c609"><num value="609">CHAPTER 609</num><heading>PUBLIC RETIREMENT SYSTEM INVESTMENT EXPENSE REPORTING</heading><subchapter identifier="/us/state/tx/tac/t40/p17/c609/sc"><num value="">SUBCHAPTER </num><heading></heading><section identifier="/us/state/tx/tac/t40/p17/c609/sc/s609.101"><num value="609.101">§609.101</num><heading>Authority</heading><content>These rules are promulgated under the authority of Texas Government Code, §801.201, relating to rulemaking, and §802.103, relating to an annual financial report and the Board's authority to adopt rules necessary to implement that section.</content><note type="source"><p>Source Note: The provisions of this §609.101 adopted to be effective March 15, 2020, 45 TexReg 1864.</p></note></section><section identifier="/us/state/tx/tac/t40/p17/c609/sc/s609.103"><num value="609.103">§609.103</num><heading>Purpose</heading><content>(a) The governing body of a public retirement system, as mandated by §802.103 of the Texas Government Code, is required to publish an annual financial report showing the financial condition of the system as of the last day of the fiscal year covered in the report.(b) Texas Government Code §802.103(a)(3) requires within the annual financial report, a listing, by asset class, of all direct and indirect commissions and fees paid by the retirement system during the system's previous fiscal year for the sale, purchase or management of system assets.(c) This chapter implements these reporting requirements to help ensure consistency in investment expense reporting by public retirement systems, which will benefit those systems, the Board, policymakers, and the public, through the ability to make enhanced comparisons and allow for the better analysis, policymaking, and understanding of investment expenses paid by public retirement systems.(d) This chapter is not intended to contradict generally accepted auditing standards, governmental accounting standards, or widely recommended best practices for financial reporting by governmental entities. It is also not intended to prevent systems from making additional disclosures beyond those listed in this chapter.</content><note type="source"><p>Source Note: The provisions of this §609.103 adopted to be effective March 15, 2020, 45 TexReg 1864.</p></note></section><section identifier="/us/state/tx/tac/t40/p17/c609/sc/s609.105"><num value="609.105">§609.105</num><heading>Definitions</heading><content>The following words and terms, for the purposes of this chapter, shall have the following meanings, unless the rule indicates otherwise.(1) "Annual financial report" means as defined by §802.103 of the Texas Government Code.(2) "Asset class" means a group of securities that share similar characteristics, perform comparably in the marketplace, and are generally governed by the same laws and regulations.(3) "Board" means the State Pension Review Board.(4) "Direct and indirect fees and commissions" means amounts paid to investment managers for managing assets; commissions paid to brokers for trading securities on a per share basis; profit share as defined by §815.3015(a)(2) of the Texas Government Code; and fees netted from returns.(5) "Fees netted from returns" means an amount that an investment manager collects or retains from earned investment returns rather than from the pension trust fund.(6) "Governing body of a public retirement system" means as provided by Texas Government Code §802.001(2).(7) "Investment expense" means direct and indirect fees and commissions and amounts retained or paid for investment services.(8) "Investment manager" means as defined by §802.204 of the Texas Government Code.(9) "Investment service" means a service provided to a public retirement system for general purposes of administering its investment program such as custodial, investment consulting, investment-related legal services, research, and in-house investment staff.(10) "Public retirement system" means as defined by §801.001(2) and §802.001(3) of the Texas Government Code, but shall not include defined contribution plans as defined by Texas Government Code, §802.001(1-a) or retirement systems consisting exclusively of volunteers organized under the Texas Local Fire Fighters' Retirement Act as defined by Texas Government Code, §802.002(d).</content><note type="source"><p>Source Note: The provisions of this §609.105 adopted to be effective March 15, 2020, 45 TexReg 1864; amended to be effective October 16, 2024, 49 TexReg 8401.</p></note></section><section identifier="/us/state/tx/tac/t40/p17/c609/sc/s609.107"><num value="609.107">§609.107</num><heading>Applicability</heading><content>This chapter applies to every public retirement system.</content><note type="source"><p>Source Note: The provisions of this §609.107 adopted to be effective March 15, 2020, 45 TexReg 1864.</p></note></section><section identifier="/us/state/tx/tac/t40/p17/c609/sc/s609.111"><num value="609.111">§609.111</num><heading>Investment Expense Reporting Structure</heading><content>(a) Public retirement systems shall report direct and indirect fees and commissions:(1) in the fiscal year they are incurred;(2) by asset class;(3) by type of fees and commissions, specifically:(A) amounts paid to investment managers for managing assets;(B) commissions paid directly by the public retirement system to brokers for trading securities on a per share basis;(C) profit share as defined by §815.3015(a)(2) of the Texas Government Code; and(D) fees netted from returns.(4) in a supplemental schedule, which may be unaudited, as part of the system's annual financial report.(b) Investment services provided to the system shall be reported in a supplemental schedule contained in the notes to the financial statements that are part of a public retirement system's annual financial report.(c) A retirement system shall report expenses incurred for investment services by type of service provided, even if multiple investment services are provided by a single firm. Those expenses should not be reported by asset class.(d) The asset classes are:(1) Cash;(2) Public Equity;(3) Fixed Income;(4) Real Assets;(5) Alternative/Other.(e) The Board hereby adopts by reference the 2020 Asset Class Categorization Guide (2020 ACC Guide) to assist in categorizing items by asset class.(f) The Asset Class Categorization Guide is available to all public retirement systems. A public retirement system may obtain the most current version of the Asset Class Categorization Guide from the offices of the State Pension Review Board and from its website at http://www.prb.texas.gov.(g) For an investment product containing investments in more than one asset class, a public retirement system shall report fees according to the corresponding asset class.(h) For a fund of funds, reported fees must include the top-layer management fees charged by the fund-of-fund manager and the fees charged by all subsidiary fund managers, and all profit share, reported as a single amount.(i) A public retirement system must list the types of investment included in the "Alternative/Other" asset class as described in the 2020 ACC Guide.</content><note type="source"><p>Source Note: The provisions of this §609.111 adopted to be effective March 15, 2020, 45 TexReg 1864; amended to be effective October 16, 2024, 49 TexReg 8401.</p></note></section></subchapter></chapter><chapter identifier="/us/state/tx/tac/t40/p17/c610"><num value="610">CHAPTER 610</num><heading>FUNDING SOUNDNESS RESTORATION PLANS</heading><subchapter identifier="/us/state/tx/tac/t40/p17/c610/sc"><num value="">SUBCHAPTER </num><heading></heading><section identifier="/us/state/tx/tac/t40/p17/c610/sc/s610.11"><num value="610.11">§610.11</num><heading>Authority and Purpose</heading><content>These rules implement and are authorized by Texas Government Code §§801.201, 802.2011, 802.2015, and 802.2016.</content><note type="source"><p>Source Note: The provisions of this §610.11 adopted to be effective October 26, 2022, 47 TexReg 7068.</p></note></section><section identifier="/us/state/tx/tac/t40/p17/c610/sc/s610.13"><num value="610.13">§610.13</num><heading>Definitions</heading><content>When used in this chapter, the terms listed below shall have the following meanings:(1) "Board" means State Pension Review Board.(2) "Compliance corridor" means the acceptable range of variation from a system's baseline for the system's funding period or funded ratio, as further described in board rules that concern a system's adherence to a funding soundness restoration plan, and related figures.(3) "Formulated" means finalized and approved by the appropriate decision-making bodies.(4) "Funded ratio" has the meaning assigned by Texas Government Code §802.2011.(5) "Funding period" means the length of time it would take to fully fund the unfunded actuarial accrued liability under the current actuarial assumption based on the greater of the actuarial value of assets or the market value of assets.(6) "Governmental entity" has the meaning assigned by §802.1012, Texas Government Code.(7) "Legacy funding soundness restoration plan" or "L-FSRP" means a funding soundness restoration plan formulated prior to September 1, 2021, accepted by the board, and governed by the law as it existed immediately before that date.(8) "Public retirement system" has a meaning as defined by §801.001(2) and §802.001(3), Texas Government Code but shall not include defined contribution plans as defined by §802.001(1-a), Texas Government Code or retirement systems consisting exclusively of volunteers organized under the Texas Local Fire Fighters' Retirement Act as defined by §802.002(d), Texas Government Code.(9) "Revised funding soundness restoration plan" or "R-FSRP" means a funding soundness restoration plan prepared under §802.2015(e-1) or §802.2016(e-1), Texas Government Code, which includes additional components compared to a funding soundness restoration plan prepared under §802.2015(e) or §802.2016(e), Texas Government Code.(10) "Revised funding soundness restoration plan exemption" or "revision exemption" means the applicable section of either Texas Government Code §§802.2015(d-1) or 802.2016(d-1) under which qualifying systems prepare a funding soundness restoration plan under Texas Government Code §§802.2015(e) or 802.2016(e) rather than a revised funding soundness restoration plan.(11) "Target date" means the 10th anniversary of the date on which the final version of a legacy funding soundness restoration plan was agreed to as required by law as it existed immediately before September 1, 2021.(12) "Valuation date" means the date as of which the actuarial accrued liability and the actuarial value of assets are determined, often the first or last day of the plan year as specified in the valuation.(13) "Voluntary funding soundness restoration plan" or "V-FSRP" means a funding soundness restoration plan formulated submitted, and completed under either Texas Government Code §802.2015 or §802.2016 as it stands after September 1, 2021, without the system or associated governmental entity first becoming subject to the requirement.</content><note type="source"><p>Source Note: The provisions of this §610.13 adopted to be effective October 26, 2022, 47 TexReg 7068.</p></note></section><section identifier="/us/state/tx/tac/t40/p17/c610/sc/s610.14"><num value="610.14">§610.14</num><heading>Applicability</heading><content>This chapter applies to every public retirement system and its associated governmental entity that is subject to Texas Government Code §802.2015 or §802.2016 and to a system or associated governmental entity that choose to submit a voluntary funding soundness restoration plan.</content><note type="source"><p>Source Note: The provisions of this §610.14 adopted to be effective October 26, 2022, 47 TexReg 7068.</p></note></section><section identifier="/us/state/tx/tac/t40/p17/c610/sc/s610.15"><num value="610.15">§610.15</num><heading>Required Disclosure of Inadequate Financing Arrangement to Plan Members</heading><content>(a) A notification to the associated governmental entity under Texas Government Code §802.2015(c) or §802.2016(c) regarding an actuarial valuation that indicates the public retirement system's actual contributions are not sufficient to amortize the unfunded liability within 30 years, means that the financing of the system is inadequate for the purposes of §802.106(d), Texas Government Code.(b) The disclosure to members of an actuarial determination of an inadequate financing arrangement required under Texas Government Code §802.106(d) shall be accompanied by a notice that the system is subject to the funding soundness restoration plan requirement under Texas Government Code §802.2015(c) or §802.2016(c) when a system becomes subject to the requirement.</content><note type="source"><p>Source Note: The provisions of this §610.15 adopted to be effective October 26, 2022, 47 TexReg 7068.</p></note></section><section identifier="/us/state/tx/tac/t40/p17/c610/sc/s610.20"><num value="610.20">§610.20</num><heading>Criteria for Determining Adherence to a Legacy Funding Soundness Restoration Plan</heading><content>(a) A public retirement system is adhering to a legacy funding soundness restoration plan if the system's actuarial valuation shows:(1) the funding period is expected to fall within 40 years by the target date and so long as the system's funding period continues to shorten while the system's funding period is above 40 years and does not increase to a length of time greater than 40 years after falling below 40 years; or(2) an increase in funding period compared to the previous valuation, and the system's actuarial valuation shows that, between the valuation date and the system's target date, the system's funding period or funded ratio remains within the compliance corridor adopted in board rule. If the system's funding period is infinite, only the funded ratio will be evaluated to determine compliance for the purposes of this paragraph.(b) A public retirement system with a legacy funding soundness restoration plan may submit a projection to serve as the baseline for the purpose of this subsection. This projection must show the projected funded ratio and funding period for each year beginning with the current date until the target date. For any years the system's funding period is projected to be above 40 years, the corridor will be based on the baseline. For any years the system's funding period is projected to be below 40 years, the compliance corridor will be based on a minimum of 40 years. If the system does not submit such a projection to the board for this purpose, the board will determine adherence to the legacy funding soundness restoration plan using a baseline in which a system's funding period must decrease by one year every consecutive year as measured on the anniversary of the date on which the final version of the funding soundness restoration plan was agreed to as required by law. (c) The allowable degree of variation from the baseline will begin at five percent for a funded ratio corridor or ten years for a funding period corridor and will decrease over period between the current date and the target date as described by Figure: 40 TAC §610.20(c). A system would be considered compliant if plan experience exceeds a corridor in a favorable way. The board will use each system's baseline to provide a compliance corridor unique to that system based on their funding period and funded ratio, using the corridor sizes specified in these rules.Attached Graphic</content><note type="source"><p>Source Note: The provisions of this §610.20 adopted to be effective October 26, 2022, 47 TexReg 7068.</p></note></section><section identifier="/us/state/tx/tac/t40/p17/c610/sc/s610.21"><num value="610.21">§610.21</num><heading>Completion of a Legacy Funding Soundness Restoration Plan</heading><content>(a) A public retirement system adhering to a legacy funding soundness restoration plan may continue following that plan until the earlier of:(1) the target date; or,(2) the date of an actuarial valuation that indicates the system's funding period is at or below 30 years.(b) actuarial valuations with valuation dates during a time that a system is adhering to a legacy funding soundness restoration plan shall not be counted towards triggering a funding soundness restoration plan under Texas Government Code §802.2015(c) or §802.2016(c) as it stands after September 1, 2021, until after the applicable date described in subsection (a) of this section when the system completes the legacy funding soundness restoration plan.</content><note type="source"><p>Source Note: The provisions of this §610.21 adopted to be effective October 26, 2022, 47 TexReg 7068.</p></note></section><section identifier="/us/state/tx/tac/t40/p17/c610/sc/s610.22"><num value="610.22">§610.22</num><heading>Application of Revised Funding Soundness Restoration Plan Exemption</heading><content>(a) A public retirement system's actuarial valuation must be dated after September 1, 2025, to qualify for the revision exemption under Texas Government Code §802.2015(d-1)(1) or §802.2016(d-1)(1).(b) The revision exemption does not apply to a system adhering to a legacy funding soundness restoration plan before the date prescribed by §610.21 of this chapter (relating to Completion of a Legacy Funding Soundness Restoration Plan).</content><note type="source"><p>Source Note: The provisions of this §610.22 adopted to be effective October 26, 2022, 47 TexReg 7068.</p></note></section><section identifier="/us/state/tx/tac/t40/p17/c610/sc/s610.30"><num value="610.30">§610.30</num><heading>Submission and Completion Criteria for the Funding Soundness Restoration Plan Requirement</heading><content>(a) The board will consider a retirement system to have submitted a funding soundness restoration plan when the board receives:(1) a completed form approved by the board for this purpose;(2) any supplementary or explanatory documents necessary to illustrate how the system's funding period will be within the maximum by the prescribed date, including a revised funding policy; and(3) documentation of the date the plan was adopted by both the governing body of the system and of the governmental entity. Documentation may include the minutes or other record of an open meeting when each adoption occurred.(b) The board will consider a retirement system to have completed the funding soundness restoration plan requirement when the board receives an actuarial valuation or separate analysis under Texas Government Code §§802.2015(e-2) or 802.2016(e-2) and the staff actuary or board actuary determines the actuarial valuation or separate analysis complies with actuarial standards of practice. An actuarial valuation and separate analysis are equivalent for the purposes of Texas Government Code §§802.2015(e-2) or 802.2016(e-2) and either may be submitted in lieu of the other during the respective submission periods, provided it includes the components required by the applicable subsection.(c) For a system submitting a revised funding soundness restoration plan with specific changes required by statute, "automatic risk-sharing mechanisms" means changes to plan provisions, including adjustments to benefit levels or contribution amounts, upon meeting or exceeding certain criteria established beforehand without needing additional approval at the time of the change. The plan shall specify how the changes to the contribution amounts are split between the employer and members. At least one of the automatic risk-sharing mechanisms included in the plan must be an adjustable benefit or contribution mechanism.(d) A system or associated governmental entity shall submit to the board the materials related to a funding soundness restoration plan that adequately fulfill the analysis and documentation requirements in statute and rules to be considered compliant. If the board determines the materials are inadequate, the board will notify the system of the determination with an explanation of the reason and may request additional information. The system shall submit additional materials consistent with the board's instructions. The board would consider a system noncompliant if the board does not receive the system's funding soundness restoration plan; if the system fails to comply with an approved funding soundness restoration plan, revised funding soundness restoration plan, or other type of funding soundness restoration plan; or if the system fails to submit to the board the funding soundness restoration plan materials that adequately satisfy the requirements in statute and board rules within the appropriate time periods for those materials.</content><note type="source"><p>Source Note: The provisions of this §610.30 adopted to be effective October 26, 2022, 47 TexReg 7068.</p></note></section><section identifier="/us/state/tx/tac/t40/p17/c610/sc/s610.31"><num value="610.31">§610.31</num><heading>Compliance with Progress Updates</heading><content>(a) A system adhering to a legacy funding soundness restoration plan shall continue providing progress updates every two years rather than submitting progress updates in accordance with this section.(b) The first draft of a plan submitted as a part of a progress update under Texas Government Code §§802.2015(f) or 802.2016(f) must, at minimum, include a projected timeline for enactment of the plan, and identify the action that various entities must take to approve or enact the plan, such as votes that may be necessary in accordance with the system's governing statute. Each subsequent progress update should include a draft plan that contains updated information and that demonstrates movement toward a complete and finalized plan.(c) A description of changes submitted as part of a progress update to fulfill the requirements of Texas Government Code §§802.2015(f) or 802.2016(f) must include the projected actuarial impact of each change under consideration on the retirement system's funding period and funded ratio.(d) A system must submit updates consistent with subsections (b) and (c) of this section to the board starting September 1, 2023, and every six months thereafter until the system submits a funding soundness restoration plan to the board and the board determines it is compliant if the system:(1) received an actuarial valuation dated prior to September 1, 2021, that triggered a funding soundness restoration plan requirement; and(2) does not have a board-approved legacy funding soundness restoration plan.(e) A system or associated governmental entity that receives an actuarial valuation dated after September 1, 2021, that triggers a funding soundness restoration plan, including a revised funding soundness restoration plan, must submit updates to the board beginning not later than the first anniversary of the valuation date of the actuarial valuation that required formulation of the plan and every subsequent six-month period until the plan is submitted as described in Texas Government Code §§802.2015(f) or 802.2016(f).(f) A system or associated governmental entity preparing a voluntary funding soundness restoration plan is not required to submit progress updates to the board.</content><note type="source"><p>Source Note: The provisions of this §610.31 adopted to be effective October 26, 2022, 47 TexReg 7068.</p></note></section><section identifier="/us/state/tx/tac/t40/p17/c610/sc/s610.32"><num value="610.32">§610.32</num><heading>Revised Funding Soundness Restoration Plan Exemption</heading><content>(a) A public retirement system is adhering to a funding soundness restoration plan formulated between September 1, 2021, and September 1, 2025, if, during the period between the date the funding soundness restoration plan is adopted by the system and governmental entity and the 10th anniversary of the applicable date for the funding soundness restoration plan to be formulated and the system to be within the maximum funding period prescribed by Texas Government Code §§802.2015(e)(2) or 802.2016(e)(2), the system's actuarial valuation shows the system's funding period or funded ratio remain within the applicable compliance corridors established in this section. If the system's funding period is infinite, only the funded ratio will be evaluated to determine compliance for the purposes of this subsection.(b) The baseline for a system's funding period compliance corridor will be 30 years, and the baseline for the funded ratio corridor will be the actuarial projection of the system's expected future actuarial value of assets and liabilities submitted as part of an actuarial valuation or separate analysis in accordance with either Texas Government Code §§802.2015(e-2)(1) or 802.2016(e-2)(1).(c) The allowable degree of variation from the baseline will begin at five percent for a funded ratio corridor or ten years for a funding period corridor and will decrease over the 10-year period as described by Figure: 40 TAC §610.32(c). A system would be considered compliant if plan experience exceeds the corridor in a favorable way. The board will use each system's baseline to provide a compliance corridor unique to that system based on their amortization period and funded ratio, using the corridor sizes specified in these rules.Attached Graphic(d) A system may submit a voluntary funding soundness restoration plan without first becoming subject to the requirement, for the purposes of qualifying for the revision exemption, provided the V-FSRP is consistent with all applicable submission requirements in statute and rules.</content><note type="source"><p>Source Note: The provisions of this §610.32 adopted to be effective October 26, 2022, 47 TexReg 7068.</p></note></section></subchapter></chapter></part><part identifier="/us/state/tx/tac/t40/p19"><num value="19">PART 19</num><heading>DEPARTMENT OF FAMILY AND PROTECTIVE SERVICES</heading><chapter identifier="/us/state/tx/tac/t40/p19/c700"><num value="700">CHAPTER 700</num><heading>CHILD PROTECTIVE SERVICES</heading><subchapter identifier="/us/state/tx/tac/t40/p19/c700/scA"><num value="A">SUBCHAPTER A</num><heading>ADMINISTRATION</heading><section identifier="/us/state/tx/tac/t40/p19/c700/scA/s700.105"><num value="700.105">§700.105</num><heading>Criminal Record Checks for Authorized External Volunteer Organizations</heading><content>(a) To obtain criminal history records on volunteers or volunteer applicants, the agencies authorized by law to obtain these through the Department of Family and Protective Services (DFPS) must give DFPS identifying information about the applicant on a form designated by DFPS for that purpose.(b) The volunteer agency must ensure that the person on whom the information is being requested has consented in writing to DFPS disclosing the information to the volunteer agency.(c) DFPS discloses the criminal history information received from the Texas Department of Public Safety directly to the volunteer agency that requests it, although DFPS must not give the volunteer agency a copy of the information or allow the volunteer agency to make a photocopy of the information.(d) DFPS retains the criminal records check information obtained on behalf of the volunteer agency only as long as is needed to ensure that the volunteer agency has received the information and then DFPS deletes or destroys the information.(e) DFPS may charge an organization that requests criminal record history information a fee in the amount necessary to cover the costs of obtaining the information on the organization's behalf.</content><note type="source"><p>Source Note: The provisions of this §700.105 adopted to be effective August 1, 1996, 21 TexReg 3213; amended to be effective June 1, 2007, 32 TexReg 2669.</p></note></section><section identifier="/us/state/tx/tac/t40/p19/c700/scA/s700.108"><num value="700.108">§700.108</num><heading>Waiver Provision for Implementation of Community-Based Care</heading><content>(a) As used in this section, the term "Community-Based Care" has the meaning set forth in §264.152, Texas Family Code, and related law in Subchapter B-1 of Chapter 264, Texas Family Code. The term may include the provision of placement and supportive services, as well as direct case management performed by the Single Source Continuum Contractor performing services in a catchment area.(b) Notwithstanding any other provision in this chapter, to the extent necessary for the implementation of Community-Based Care, Department of Family and Protective Services (DFPS) may waive a provision in any section in this chapter as provided under subsection (c) of this section.(c) The waiver of any rule provision contained in this chapter must be approved by the Commissioner of the Department of Family and Protective Services, or that person's designee, after consultation with agency legal counsel to ensure that the waiver does not conflict with other state or federal law.(d) Nothing in this section shall be construed to authorize DFPS to waive a provision of any section in this chapter if such waiver violates other state or federal law.</content><note type="source"><p>Source Note: The provisions of this §700.108 adopted to be effective May 6, 2012, 37 TexReg 3184; amended to be effective August 1, 2017, 42 TexReg 4307.</p></note></section><section identifier="/us/state/tx/tac/t40/p19/c700/scA/s700.110"><num value="700.110">§700.110</num><heading>Waiver Provision for DFPS Pilot Programs</heading><content>(a) As used in this section, the term "DFPS Pilot Program" means a small-scale, time-limited, trial program that DFPS will use to help determine the feasibility of implementing a project on a large scale. The term may include:(1) a pilot program to implement integrated care coordination for certain high-needs children in the conservatorship of the Department of Family and Protective Services (DFPS). Integrated Care Coordination (ICC) means the coordination of the activities of all entities and individuals responsible for an individual's medical, social and behavioral health case management, ensuring all components of medical, social and behavioral health case management are utilized effectively, without duplication, to achieve quality outcomes for the child. Integrated Care Coordination services are designed for the specific purpose of maintaining the child or youth in, or transitioning the child or youth to, a family-based or community-based setting and include placement responsibility under a no eject, no reject contract. Integrated Care Coordination services include responsibility for all child welfare related tasks and activities under federal and state law;(2) a pilot program to contract for the case management of family-based safety services in one or more administrative regions of the state; and(3) any other pilot program determined to be appropriate or feasible by the Commissioner of DFPS.(b) Notwithstanding any other provision in this chapter, to the extent necessary for the implementation of a DFPS Pilot Program, DFPS may waive a provision in any section in this chapter as provided under subsection (c) of this section.(c) The waiver of any rule provision contained in this chapter must be approved by the Commissioner of DFPS, or that person's designee, after consultation with agency legal counsel to ensure that the waiver does not conflict with other state or federal law.(d) Nothing in this section shall be construed to authorize DFPS to waive a provision of any section in this chapter if such waiver violates other state or federal law.</content><note type="source"><p>Source Note: The provisions of this §700.110 adopted to be effective August 1, 2017, 42 TexReg 4307.</p></note></section><section identifier="/us/state/tx/tac/t40/p19/c700/scA/s700.115"><num value="700.115">§700.115</num><heading>Waiver Provision for Implementation of Texas Child-Centered Care</heading><content>(a) As used in this section, the term "Texas Child-Centered Care" (T3C) is defined as:(1) Service Packages, that children, youth, and young adults will be matched to through a uniform assessment tool, as described in Subchapter E. Each Service Package has a corresponding rate methodology; and(2) Add-on support services as described in §700.510, §700.511, and §700.512, for foster family homes.(b) For purposes of T3C, a Child Placing Agency (CPA), General Residential Operation (GRO) or foster family home has to meet qualifications, as defined by Department of Family and Protective Services (DFPS), to become credentialed to offer a specific Service Package or Add-On Service as described by §700.510, §700.511, and §700.512. DFPS will make the determination if a CPA or GRO is credentialed to offer services under T3C, while a credentialed CPA agency will make the determination if the individual foster family home meets the necessary requirements.(c) Upon full implementation, as specified in the T3C Blue Print, T3C will replace the use of the Service Level System, described in Subchapter W. Effective January 1, 2025, the DFPS will pay for foster care and adoption assistance through either the service level or the T3C system.(d) Notwithstanding any other provision in Chapter 700, to the extent necessary for the implementation of T3C, the DFPS may waive a provision in any section in this chapter as provided under subsection (e) of this section.(e) The waiver of any rule provision contained in this chapter must be approved by the Commissioner of the DFPS, or that person's designee, after consultation with agency legal counsel to ensure that the waiver does not conflict with state or federal law.(f) Nothing in this section shall be construed to authorize the Department of Family and Protective Services to waive a provision of any section in this chapter if such waiver violates state or federal law.</content><note type="source"><p>Source Note: The provisions of this §700.115 adopted to be effective December 22, 2024, 49 TexReg 10389.</p></note></section></subchapter><subchapter identifier="/us/state/tx/tac/t40/p19/c700/scB"><num value="B">SUBCHAPTER B</num><heading>CONFIDENTIALITY AND RELEASE OF RECORDS</heading><section identifier="/us/state/tx/tac/t40/p19/c700/scB/s700.201"><num value="700.201">§700.201</num><heading>Purpose</heading><content>The purpose of this subchapter is to clarify to whom and under what circumstances the Texas Department of Protective and Regulatory Services (TDPRS) may disclose information made confidential under §261.201 of the Texas Family Code. These rules apply to those investigations carried out under §261.301(a) of the Texas Family Code. The rules in this subchapter do not apply to the release of information relating to an investigation of abuse or neglect alleged to have occurred in a facility as described in §261.301(b) of the Texas Family Code, nor to the release of information from TDPRS's Central Registry, as described under §261.002 of the Texas Family Code. Additional policy safeguards may be developed by TDPRS as needed to ensure the proper implementation of these rules in specific cases.</content><note type="source"><p>Source Note: The provisions of this §700.201 adopted to be effective April 1, 1997, 22 TexReg 2877.</p></note></section><section identifier="/us/state/tx/tac/t40/p19/c700/scB/s700.202"><num value="700.202">§700.202</num><heading>Definitions</heading><content>The words and terms used in this subchapter shall have the following meanings, unless the context clearly indicates otherwise:(1) Case records--All records described in §261.201(a) of the Texas Family Code which were collected, developed, or used in a child abuse or neglect investigation, or in providing services as a result of an investigation, and which are under the custody and control of the Texas Department of Protective and Regulatory Services (TDPRS). The term case records, as used in this subchapter, shall include investigation records, as well as all records in the custody and control of TDPRS which relate to the placement of a child in foster care or in other substitute care, or which relate to the provision of other services to a child or the child's family.(2) Code--The Texas Family Code.(3) Investigation records--That portion of the records described in §261.201(a) of the Texas Family Code which were collected, developed, or used in a child abuse or neglect investigation and which are under the custody and control of TDPRS. The term investigation records, as used in this subchapter, shall not include those records under the custody and control of TDPRS which relate solely to the placement of a child in substitute care or to the provision of services to a child or the child's family.(4) Report--A report of alleged or suspected child abuse or neglect, as described in Subchapter B, Chapter 261 of the Texas Family Code.(5) Reporter--An individual who, on his own initiative, makes an unsolicited report to TDPRS or to a duly constituted law enforcement agency, alleging the abuse or neglect of a child. If more than one individual makes an unsolicited report alleging abuse or neglect of the same child, all such individuals shall have the designation of reporter.</content><note type="source"><p>Source Note: The provisions of this §700.202 adopted to be effective April 1, 1997, 22 TexReg 2877.</p></note></section><section identifier="/us/state/tx/tac/t40/p19/c700/scB/s700.203"><num value="700.203">§700.203</num><heading>Access to Confidential Information Maintained by the Texas Department of Family and Protective Services (DFPS)</heading><content>(a) DFPS may release case record information made confidential under §261.201(a) of the Texas Family Code to any person or entity authorized to receive confidential abuse or neglect information under state or federal law, including the following listed persons or entities:(1) DFPS staff, including authorized volunteers, as necessary to perform their assigned duties;(2) a properly constituted authority, and its multi-disciplinary team members, legally authorized to handle or assist in the investigation, prosecution, or resolution of cases of suspected child abuse or neglect or to provide services to the child or the child's family, including children's advocacy centers, child fatality review teams, citizen review teams, Disability Rights Texas, county child welfare boards, and any authority mandated under another state's law to investigate allegations of child abuse or neglect;(3) local, state, or federal law enforcement officials for the purpose of investigating allegations of:(A) child abuse or neglect, including any crime that contains an element that would meet the definition of child abuse or neglect;(B) false or malicious reporting of alleged child abuse or neglect; or(C) failure to report child abuse or neglect;(4) a physician who has before him a child who the physician reasonably suspects may be the victim of child abuse or neglect and the physician requires this information to provide a diagnosis, prognosis, or treatment for the child;(5) a local, state, or federal government official, to the extent permitted under federal law or when deemed necessary for the protection and care of a child;(6) a grand jury;(7) an attorney ad litem, guardian ad litem, or court appointed special advocate of an alleged victim of child abuse and neglect;(8) a court of competent jurisdiction in a criminal or civil case arising out of an investigation of child abuse and neglect;(9) an attorney of DFPS, the attorney general of the state, or a county attorney or district attorney, when such attorney represents the state in a proceeding arising out of an investigation of child abuse or neglect or in a proceeding to collect child support for a child in the temporary or permanent managing conservatorship of DFPS;(10) a member of the state legislature, to the extent permitted under federal law, when necessary to carry out that member's official duties;(11) the person authorized by the court or designated to give medical consent or make educational decisions on the child's behalf; and(12) any other person or entity responsible for the protection, diagnosis, care, treatment, supervision or education of a child when, in the discretion of DFPS, such information is necessary to properly meet that child's needs.(b) In accordance with §261.201(g) of the Family Code, and upon a properly submitted request, DFPS shall provide access to confidential case records to the parent or other legal guardian of a child who was the alleged or actual victim of child abuse and neglect, provided that the records are redacted as described in §700.204 of this title (relating to Redaction of Records Prior to Release). For purposes of this subsection, a parent or other legal guardian means any parent, adoptive parent, possessory conservator, temporary or permanent managing conservator, legal guardian, or other legal representative of the child, provided that the requestor's parental or other legal relationship to the child has not been terminated at the time the request for information is made. DFPS may release confidential case records, or information contained therein, to a minor child who is the subject of those records if DFPS deems the release to be in the best interest of the minor child.(c) Upon a properly submitted request, DFPS shall provide access to confidential investigation records to an individual who was alleged or designated by DFPS to be a perpetrator in that investigation, whether or not that individual is a parent of the alleged victim, provided that the records are redacted as described in §700.204 of this title (relating to Redaction of Records Prior to Release). A release under this subsection is limited to that portion of DFPS's records which were developed during the course of an investigation into child abuse or neglect and shall not include records related to the provision of services to a child or the child's family as a result of the investigation.(d) In accordance with §261.201(d) of the Family Code, and upon a properly submitted request, DFPS shall provide access to confidential case records to the adoptive or prospective adoptive parents of a child who was, or to an adult who was as a child, the subject of those records, provided that the records are redacted in accordance with §700.204 of this title and provided that the identity of the child's biological parents is protected. When releasing information under this subsection, DFPS need not redact the record to protect the identity of a biological parent whose identity is already known to the requestor.(e) An individual not otherwise entitled to have access to confidential records under this section, but who participated in, cooperated with, or otherwise contributed to an investigation of child abuse or neglect, may have access to only that portion of the case records obtained directly from or pertaining directly to that individual.(f) Notwithstanding any other provision in this subchapter, DFPS shall not disclose any record or information which, if released to the requestor, would interfere with an ongoing criminal investigation or prosecution.(g) The same restrictions on disclosure of confidential records released by DFPS apply to re-disclosure by the individual or entity that obtains the documents from DFPS.</content><note type="source"><p>Source Note: The provisions of this §700.203 adopted to be effective April 1, 1997, 22 TexReg 2877; amended to be effective March 1, 2008, 33 TexReg 1357; amended to be effective September 1, 2014, 39 TexReg 6226.</p></note></section><section identifier="/us/state/tx/tac/t40/p19/c700/scB/s700.204"><num value="700.204">§700.204</num><heading>Redaction of Records Prior to Release</heading><content>(a) Except as provided by this section or otherwise permitted by law, prior to the release of confidential investigation or case records, the Department of Family and Protective Services (DFPS) shall redact the records to remove the name, address, and any other information in the record which tends to reveal the identity of any individual as a reporter. In the event that an individual who was a reporter also provided a witness statement or other evidence during the course of the investigation, that individual's identity as a witness, as well as the information provided by that individual in the role of witness, will be released, provided that any information that would identify that individual as the reporter is redacted from the record prior to its release.(b) DFPS shall withhold the release of any records obtained from another source, if the release of that record to the requestor is prohibited under state or federal law. Information which may be withheld under this section includes, but is not limited to, the following:(1) "individually identifiable health information," as defined by §1171 of the Social Security Act, to the extent that DFPS is prohibited from releasing such information to the requester by Chapter 181 of the Health and Safety Code, and related regulations adopted pursuant to Chapter 181;(2) HIV information unless release to the requestor is authorized under Chapter 81 of the Health and Safety Code;(3) criminal history or arrest records obtained from a law enforcement entity unless their release to the requestor is authorized under state or federal law;(4) adult or juvenile probation records, as well as juvenile arrest records, unless their release to the requestor is authorized under state or federal law; and(5) the results of a polygraph exam, unless their release to the requestor is authorized under §1703.306 of the Occupations Code, or other state or federal law.(c) Notwithstanding any other provision in this chapter, DFPS may withhold any information in its records if:(1) in the judgment of DFPS, the release of that information would endanger the life or safety of any individual, in which event DFPS shall keep a record of any information so withheld and shall document the specific factual basis for its belief that the release of the information would be likely to endanger the life or safety of an individual; or(2) DFPS has been notified by a law enforcement official that release of the information to the requestor would interfere with an ongoing criminal investigation, in which event DFPS shall document in its records the name of the law enforcement official who notified DFPS that release of the information would interfere with an ongoing criminal investigation.(d) Information withheld from a requestor under this section, as well as the documented basis for withholding information under subsection (c) of this section, may be released only upon a court order pursuant to the provisions in §261.201(b) of the Family Code.(e) DFPS may release reporter information, including the identity of a reporter, to the following:(1) a court having family law jurisdiction as necessary to resolve an issue relating to the custody of, access to, or possession of a child;(2) a person or entity with the statutory duty to investigate or prosecute a report of child abuse or neglect, failure to report child abuse or neglect, or false reporting of child abuse or neglect;(3) a person or entity that provides legal representation to DFPS; or(4) a social study evaluator, guardian ad litem, or court-appointed volunteer advocate appointed by the court under Chapter 107 of the Family Code to make recommendations to the court concerning the best interest of a child.</content><note type="source"><p>Source Note: The provisions of this §700.204 adopted to be effective April 1, 1997, 22 TexReg 2877; amended to be effective September 1, 2014, 39 TexReg 6226.</p></note></section><section identifier="/us/state/tx/tac/t40/p19/c700/scB/s700.205"><num value="700.205">§700.205</num><heading>Procedures for Requesting Access to Confidential Information</heading><content>(a) A request for access to records made confidential under §261.201(a) of the Code shall be submitted on a standard form developed by the Texas Department of Protective and Regulatory Services (TDPRS) for this purpose. TDPRS's standard form will be designed to obtain sufficient information from the requestor to determine which TDPRS records are being requested, as well as to establish the requestor's identity and relationship to the records being sought. TDPRS's standard form will provide additional instructions regarding the proper filing of the request and any fees which must be paid in order to obtain copies of the requested records. TDPRS may waive the use of its standard form, or may request additional information not included on the form, if TDPRS deems it appropriate under the circumstances surrounding a particular request.(b) Upon receipt of a proper request for copies of records, and a determination that the requestor is entitled to have access to those records, TDPRS will provide copies of the requested records, subject to the exception in §700.206 of this title (relating to Videotapes, Audiotapes, and Photographs).(c) Records will not be released under §700.203(b) - (e) of this title (relating to Access to Confidential Information Maintained by the Texas Department of Protective and Regulatory Services (TDPRS)) until the investigation of an allegation of child abuse or neglect is complete. Requests for records will be filled on a priority basis, as provided by §702.223 of this title (relating to How does the department prioritize fulfilling requests for copies of confidential client records that require redaction prior to their release?).(d) Notwithstanding any other provision in this subchapter, if TDPRS has been sued by any party and TDPRS determines that the release of the requested records might interfere with its defense of that litigation, TDPRS may require that a requestor seek access to records under the appropriate rules of civil procedure rather than these rules.(e) Individuals not otherwise authorized to obtain records under this subchapter or through the rules of civil or criminal procedure must obtain a court order using the procedures outlined in §261.201(b) of the Code.</content><note type="source"><p>Source Note: The provisions of this §700.205 adopted to be effective April 1, 1997, 22 TexReg 2877; amended to be effective December 1, 2012, 37 TexReg 9122.</p></note></section><section identifier="/us/state/tx/tac/t40/p19/c700/scB/s700.206"><num value="700.206">§700.206</num><heading>Videotapes, Audiotapes, and Photographs</heading><content>(a) Individuals who are authorized under §700.203 of this title (relating to Access to Confidential Information Maintained by the Texas Department of Protective and Regulatory Services (TDPRS)) to have access to investigation records or case records may view and or listen to any videotapes, audiotapes, or photographs which are a part of those records. Access to this category of records will be permitted only in controlled areas, designated by TDPRS, at a time mutually convenient to the requestor and TDPRS. When viewing or listening to these records, the requestor may not be accompanied by any individual who would not otherwise be entitled to have access to these records, unless the participation of this individual is deemed by TDPRS to be appropriate under the circumstances surrounding the request.(b) Copies of videotapes, audiotapes, and photographs may be provided to the individuals or entities identified in §700.203(a) of this title (relating to Access to Confidential Information Maintained by the Texas Department of Protective and Regulatory Services (TDPRS)), only if, in the judgment of TDPRS, the provision of a copy is essential to the investigation, prosecution, or resolution of a case. Copies of videotapes, audiotapes, and photographs will not be provided to any other individual unless so ordered by a court pursuant to §261.201(b) of the Code.</content><note type="source"><p>Source Note: The provisions of this §700.206 adopted to be effective April 1, 1997, 22 TexReg 2877.</p></note></section><section identifier="/us/state/tx/tac/t40/p19/c700/scB/s700.207"><num value="700.207">§700.207</num><heading>Charges for Copies of Records</heading><content>Records provided under authority of §700.203(a) and (d) of this title (relating to Confidential Information Maintained by the Texas Department of Protective and Regulatory Services (TDPRS)), will be provided at no charge to the requestor. All other requestors will be charged a fee, using the same fee structure as that used by TDPRS when assessing charges under Chapter 552, Texas Government Code. When calculating charges under this rule, TDPRS shall include a charge for all staff time expended in the redaction of records, regardless of whether the records are redacted by a TDPRS attorney. TDPRS may waive charges when it determines that such a waiver is necessary to protect the due process rights of the requestor.</content><note type="source"><p>Source Note: The provisions of this §700.207 adopted to be effective April 1, 1997, 22 TexReg 2877.</p></note></section><section identifier="/us/state/tx/tac/t40/p19/c700/scB/s700.209"><num value="700.209">§700.209</num><heading>Release of Child Fatality Records</heading><content>Notwithstanding any other provision in this subchapter, records related to a child fatality that is the subject of an investigation by Child Protective Services may be released to the general public as provided under Subchapter D, Release of Records Related to a Child Fatality, in Chapter 702 of this title (relating to General Administration).</content><note type="source"><p>Source Note: The provisions of this §700.209 adopted to be effective March 25, 2010, 35 TexReg 2315.</p></note></section><section identifier="/us/state/tx/tac/t40/p19/c700/scB/s700.211"><num value="700.211">§700.211</num><heading>Internet Application for Court-Appointed Volunteer Advocates</heading><content>(a) The Department of Family and Protective Services (DFPS) shall develop an Internet application that allows a court-appointed volunteer advocate representing a child in DFPS' managing conservatorship to:(1) access the child's case file, as further specified in subsection (b) of this section and Memorandum of Understanding (MOU) entered into pursuant thereto; and(2) add the volunteer advocate's findings and reports to the child's case file.(b) DFPS shall enter into a MOU with the statewide organization representing court-appointed volunteer advocates in order to set forth the portions of a child's case file to which an appointed volunteer advocate shall have access. The MOU shall at a minimum:(1) grant access to the following as it relates to the current conservatorship case of the child for whom the advocate has been appointed:(A) demographic, locating, and contact information for principal and collateral participants;(B) information regarding the child's current placement and any prior placements during the same conservatorship episode;(C) information regarding the child's authorized service level or if placed under the Texas Child-Centered Care (T3C) System the child's Service Package, including supporting documentation in the current Common Application for Placement of Children in Residential Care;(D) the case plan as that term is defined in §700.1319 of this title (relating to What is a case plan?), including the child service plan and any family service plan then in effect;(E) information related to the child's permanency plan, including documentation related to permanency planning meetings held on the child's behalf;(F) the temporary visitation schedule or visitation plan in effect for the case;(G) list of all legal actions and statuses in the case;(H) educational status information;(I) information regarding the child's medical care, including the identity of the child's medical consenter, a listing of the child's medical and mental health assessments, and the child's medical and developmental history page; and(J) a listing of the external documents associated with the case.(2) provide that the types of information to which a volunteer advocate may gain access through the Internet application will be expanded upon the mutual agreement of the parties as technological enhancements are made to the Internet application and to DFPS' Information Management Protecting Adults and Children of Texas (IMPACT) case management system;(3) set forth minimum security protocols CASA organizations and their volunteers must adhere to in order to minimize the unauthorized redisclosure of the information contained in the Internet application;(4) detail the consequences for breaches of security or the unauthorized redisclosure of information accessed through the Internet application; and(5) clarify the responsibilities of each party to the MOU, including any responsibilities for volunteer advocates in registering for the application and conditions of continued access to the system.(c) Information available to court-appointed volunteer advocates through the Internet application remains confidential, and nothing in this rule shall be construed as a waiver of the confidentiality of the information transmitted by the application.(d) For purposes of this rule, the term "volunteer advocate" includes any staff of the volunteer advocate organization with authority to access the records of a child in DFPS' managing conservatorship.</content><note type="source"><p>Source Note: The provisions of this §700.211 adopted to be effective September 1, 2014, 39 TexReg 6227; amended to be effective December 22, 2024, 49 TexReg 10389.</p></note></section></subchapter><subchapter identifier="/us/state/tx/tac/t40/p19/c700/scC"><num value="C">SUBCHAPTER C</num><heading>ELIGIBILITY FOR CHILD PROTECTIVE SERVICES</heading><section identifier="/us/state/tx/tac/t40/p19/c700/scC/s700.308"><num value="700.308">§700.308</num><heading>Right to Refuse Services and Consequences of Refusal</heading><content>(a) A parent's absence or refusal to accept services offered by the Texas Department of Family and Protective Services (DFPS) does not change DFPS's legal responsibility to protect children. Parents must not be coerced or defrauded into accepting services but must be notified of the steps DFPS may take to protect the children if the parents refuse services.(b) Parents have the right to refuse services offered by DFPS unless a court has ordered the services.(c) If parents refuse to allow DFPS to investigate, DFPS may request the county or district attorney to petition the court for an order that requires the parents to allow the investigation. If the allegation of abuse or neglect or other information available to DFPS indicates immediate danger to the child, DFPS may also seek a court order to remove the child from the home.</content><note type="source"><p>Source Note: The provisions of this §700.308 adopted to be effective October 31, 1984, 9 TexReg 5431; transferred effective September 1, 1992, as published in the Texas Register September 11, 1992, 17 TexReg 6279; amended to be effective September 1, 2007, 32 TexReg 5386.</p></note></section><section identifier="/us/state/tx/tac/t40/p19/c700/scC/s700.309"><num value="700.309">§700.309</num><heading>Administrative Reviews of Client Complaints</heading><content>Child protective services clients have the right to an administrative review of any complaint about the Texas Department of Family and Protective Services' child protective services. When clients make a complaint, staff inform the clients that they may request an administrative review. An administrative review is conducted by staff at a higher level than the worker within a reasonable time after the client requests the review.</content><note type="source"><p>Source Note: The provisions of this §700.309 adopted to be effective October 31, 1984, 9 TexReg 5431; transferred effective September 1, 1992, as published in the Texas Register September 11, 1992, 17 TexReg 6279; amended to be effective September 1, 2007, 32 TexReg 5386.</p></note></section><section identifier="/us/state/tx/tac/t40/p19/c700/scC/s700.310"><num value="700.310">§700.310</num><heading>Fair Hearings</heading><content>(a) Child protective services clients have the right to a fair hearing if services they request are denied, reduced, or terminated or if the Texas Department of Family and Protective Services (DFPS) does not act on their request for services with reasonable promptness.(b) When DFPS staff informs a client that requested services have been denied, reduced, or terminated or will not be provided with reasonable promptness, staff must also inform the client:(1) that the client may request a fair hearing to question DFPS action;(2) the procedures for requesting a fair hearing; and(3) that the client may be represented at the hearing by others, including legal counsel.(c) If requested, DFPS staff assists the client in completing the form for requesting a fair hearing.</content><note type="source"><p>Source Note: The provisions of this §700.310 adopted to be effective October 31, 1984, 9 TexReg 5431; amended to be effective June 15, 1987, 12 TexReg 1780; transferred effective September 1, 1992, as published in the Texas Register September 11, 1992, 17 TexReg 6279; amended to be effective September 1, 2007, 32 TexReg 5386.</p></note></section><section identifier="/us/state/tx/tac/t40/p19/c700/scC/s700.311"><num value="700.311">§700.311</num><heading>Eligible Individuals</heading><content>(a) Children and their families are eligible for services to prevent abuse and neglect and to avoid having to remove children from their homes, services to remove children in danger of harm, and services to reunify families when both of the following two conditions are satisfied.(1) Child Protective Services (CPS) determines that there is a reasonable likelihood that a child will be abused or neglected in the foreseeable future. CPS bases this determination on the statutory definitions of child abuse and neglect in the Texas Family Code, §261.001.(2) The case meets the criteria for providing services in at least one of the following sections and subchapters:(A) §700.515 of this title (relating to Providing Immediate Protection);(B) Subchapter G of this chapter (relating to Services for Families);(C) Subchapter K of this chapter (relating to Court-Related Services); and(D) Subchapter M of this chapter (relating to Substitute-Care Placement Services.(b) CPS staff must redetermine each client's eligibility for services at least every six months through the case planning process.</content><note type="source"><p>Source Note: The provisions of this §700.311 adopted to be effective October 31, 1984, 9 TexReg 5431; amended to be effective June 15, 1987, 12 TexReg 1780; amended to be effective April 15, 1990, 15 TexReg 1841; amended to be effective June 1, 1991, 16 TexReg 2474; amended to be effective September 1, 1992, 17 TexReg 5364; transferred effective September 1, 1992, as published in the Texas Register September 11, 1992, 17 TexReg 6279; amended to be effective September 1, 2007, 32 TexReg 5386.</p></note></section><section identifier="/us/state/tx/tac/t40/p19/c700/scC/s700.312"><num value="700.312">§700.312</num><heading>Eligibility for Community Services Purchased for Child Protective Services Clients</heading><content>Children and their families are eligible for purchased protective services if the following criteria are met:(1) the child or the child's family is receiving services delivered by child protective services staff;(2) the service plan for the child or the family indicates that purchased services are appropriate to remedy the problems contributing to the abuse or neglect;(3) the child or the child's family meets the eligibility criteria for the specific purchased service;(4) for placement services, the child meets the criteria for placement as stipulated in Title 5 of the Texas Family Code.</content><note type="source"><p>Source Note: The provisions of this §700.312 adopted to be effective October 31, 1984, 9 TexReg 5431; transferred effective September 1, 1992, as published in the Texas Register September 11, 1992, 17 TexReg 6279.</p></note></section><section identifier="/us/state/tx/tac/t40/p19/c700/scC/s700.313"><num value="700.313">§700.313</num><heading>Limitations on Purchased Services</heading><content>Provision of purchased services is based on available funding for purchased services and available community resources.</content><note type="source"><p>Source Note: The provisions of this §700.313 adopted to be effective October 31, 1984, 9 TexReg 5431; transferred effective September 1, 1992, as published in the Texas Register September 11, 1992, 17 TexReg 6279.</p></note></section><section identifier="/us/state/tx/tac/t40/p19/c700/scC/s700.314"><num value="700.314">§700.314</num><heading>Authorization and Reauthorization of Services</heading><content>To receive purchased child protective services, a client must be authorized for the service by the Texas Department of Family and Protective Services.</content><note type="source"><p>Source Note: The provisions of this §700.314 adopted to be effective October 31, 1984, 9 TexReg 5431; transferred effective September 1, 1992, as published in the Texas Register September 11, 1992, 17 TexReg 6279; amended to be effective September 1, 2007, 32 TexReg 5386.</p></note></section><section identifier="/us/state/tx/tac/t40/p19/c700/scC/s700.315"><num value="700.315">§700.315</num><heading>Foster Care Assistance</heading><content>(a) There are three types of foster care assistance provided to eligible children:(1) Title IV-E foster care assistance;(2) State-paid foster care assistance; and(3) Medical Assistance Only (MAO).(b) The Title IV-E foster care assistance program provides foster care maintenance payments and Medicaid coverage to children who meet the requirements contained in §700.316 of this title (relating to General Eligibility Requirements for Foster Care Assistance) and who meet all eligibility requirements for payment of Title IV-E foster care maintenance payments under Title IV-E of the Social Security Act.(c) The state-paid foster care assistance program provides foster care maintenance payments and Medicaid coverage to children who meet the requirements contained in §700.316 of this title but are not eligible for Title IV-E foster care assistance.(d) MAO provides Medicaid benefits to children who meet the requirements contained in §700.316(b) of this title but are not otherwise eligible for Title IV-E or state-paid foster care assistance.(e) Other financial resources to which a child is entitled must be used before any type of foster care assistance is used to pay for the cost of a child's foster care, as provided in §700.330 of this title (relating to Billing and Payment for Foster Care Assistance).</content><note type="source"><p>Source Note: The provisions of this §700.315 adopted to be effective October 31, 1984, 9 TexReg 5431; amended to be effective October 1, 1986, 12 TexReg 1030; amended to be effective May 1, 1989, 14 TexReg 1536; transferred effective September 1, 1992, as published in the Texas Register September 11, 1992, 17 TexReg 6279; amended to be effective January 1, 1998, 22 TexReg 12547; amended to be effective September 1, 2007, 32 TexReg 5386; amended to be effective February 12, 2012, 37 TexReg 711.</p></note></section><section identifier="/us/state/tx/tac/t40/p19/c700/scC/s700.316"><num value="700.316">§700.316</num><heading>General Eligibility Requirements for Foster Care Assistance</heading><content>(a) A child or young adult must meet all of the following criteria to be eligible for Title IV-E or state-paid foster care assistance.(1) Responsibility for placement and care. Except as provided in subsection (c) of this section, the Texas Department of Family and Protective Services (DFPS) must have responsibility for the child's placement and care. This requirement is met if:(A) The child is placed in DFPS's managing conservatorship by written court order issued under Title 5, Texas Family Code;(B) DFPS takes possession of the child under Texas Family Code Chapter 262;(C) The child lives with his minor parent, and the minor parent is in DFPS's managing conservatorship. The child and the minor parent must reside together in the same foster family home or residential child-care operation;(D) The young adult was in DFPS's conservatorship on the day before turning 18, has signed a voluntary Extended Foster Care Agreement, and meets all of the eligibility requirements in §700.346 of this title (relating to Extended Foster Care); or(E) The child lives with a parent who is receiving extended foster care assistance, except that in some instances the parent may be required to apply for Medicaid on the child's behalf under §700.346 of this title.(2) Age. The child must be under 18 years old, unless he or she qualifies for extended foster care assistance under §700.346 of this title.(3) Placement. The child must be receiving care in a placement that:(A) Meets the definition of "foster family home" or "child-care institution" as those terms are defined by 42 U.S.C. §672(c); and(B) Is approved by DFPS. If the child is in foster family care and the foster family moves out of state with the agreement of DFPS, the child's eligibility for foster care assistance will be reviewed every 90 days for continued DFPS approval and to determine continued eligibility.(b) In order to qualify for Medical Assistance Only (MAO), a child must meet the following requirements:(1) DFPS must have responsibility for the child's placement and care, as defined in subsection (a)(1) of this section. The child may be in a licensed or unlicensed placement, as long as he or she remains in DFPS's managing conservatorship and is not eligible for Medicaid through another program.(2) The child must be under the age of 18 years.(c) A young adult who was previously under the placement and care responsibility of DFPS on the day before turning 18 and who is under guardianship of the Department of Aging and Disability Services (DADS) on or after turning 18 is eligible for continued foster care maintenance payments as provided under §700.346 of this title except that:(1) Once the guardian has been appointed, DFPS will file a notice of termination of the family court's jurisdiction, and the guardian is not required to agree to an extension of the family court's jurisdiction, under Texas Family Code Chapter 263, Subchapter G, as the probate court has continual oversight of the young adult's case;(2) Case management, including monthly caseworker visits, are handled by the DADS guardian; and(3) The young adult does not sign a Voluntary Extended Foster Care Agreement; rather, the guardian agrees to the appropriateness of the extended foster care placement on the young adult's behalf and complies with any corresponding documentation requirements DFPS may establish.(d) Notwithstanding any other provision in this section, a child is not eligible for foster care assistance, including any costs associated with the provision of medical care, if:(1) DFPS was named conservator of the child (or the minor parent of a child described in subsection (a)(1)(C) of this section) in a legal proceeding in which DFPS did not seek to be awarded managing conservatorship of the child;(2) The child is placed in a detention center or facility awaiting a detention hearing; or(3) The child is placed by a court having juvenile justice or criminal jurisdiction in a public institution as defined at 42 CFR §435.1009, or a residential child-care facility as defined in Human Resources Code, §42.002, as the result of a juvenile justice or criminal proceeding, adjudication, or conviction.(e) For the purposes of this subchapter, references to the term "child" also refer to a young adult who is receiving extended foster care assistance as provided in §700.346 of this title, unless the context clearly indicates otherwise.</content><note type="source"><p>Source Note: The provisions of this §700.316 adopted to be effective September 1, 2006, 31 TexReg 6239; amended to be effective September 1, 2007, 32 TexReg 5386; amended to be effective March 1, 2010, 35 TexReg 873; amended to be effective February 12, 2012, 37 TexReg 711.</p></note></section><section identifier="/us/state/tx/tac/t40/p19/c700/scC/s700.320"><num value="700.320">§700.320</num><heading>Eligibility in Medical Facilities before Placement</heading><content>(a) A child in a medical facility is eligible for medical assistance only (MAO) if:(1) The child meets the general eligibility requirements specified in §700.316(b) of this title (relating to General Eligibility Requirements for Foster Care Assistance); and(2) DFPS plans to place the child outside the home in a residential child-care facility or relative placement as soon as the child leaves the medical facility. DFPS must proceed with the planned placement unless there is a change in the court order or some other event occurs that clearly precludes making the placement.(b) The child's eligibility for foster care assistance commences on the date DFPS takes possession of the child pursuant to Chapter 262, Texas Family Code.</content><note type="source"><p>Source Note: The provisions of this §700.320 adopted to be effective October 31, 1984, 9 TexReg 5431; amended to be effective November 30, 1991, 16 TexReg 6213; amended to be effective February 1, 1992, 17 TexReg 327; transferred effective September 1, 1992, as published in the Texas Register September 11, 1992, 17 TexReg 6279; amended to be effective September 1, 2007, 32 TexReg 5386; amended to be effective March 1, 2010, 35 TexReg 873; amended to be effective February 12, 2012, 37 TexReg 711.</p></note></section><section identifier="/us/state/tx/tac/t40/p19/c700/scC/s700.323"><num value="700.323">§700.323</num><heading>Continuation of Foster Care Payments During Absences from Care</heading><content>(a) Under certain circumstances, the Texas Department of Family and Protective Services (DFPS) will continue to make foster care payments to a provider on behalf of a child who is no longer in that provider's care, in order to reserve space for the child's anticipated return to that provider at a date in the near future. The maximum duration of continued payments to the provider during a child's absence is subject to the limitations set forth in this section.(b) Payments to a provider for foster care during a child's absence will only be made if each of the following conditions are met:(1) DFPS plans to return the child to the provider at the end of the absence;(2) The provider agrees to reserve space for the child's return for as long as payments are made in the child's absence; and(3) DFPS is not making foster care payments on behalf of this same child to any other provider during the child's absence.(c) If a child is temporarily absent from an emergency shelter or other provider contracted to provide emergency care, DFPS may continue to pay the provider for not more than five additional days during the child's absence.(d) If a child is temporarily absent from non-emergency foster care, DFPS may continue to pay the foster care provider, if the payment is approved as follows:(1) The appropriate Child Protective Services (CPS) regional supervisor and program director must approve payment for an absence of not more than 14 days;(2) The regional program administrator must approve payment for an absence between 15 and 30 days;(3) The CPS regional director and the CPS Director of Placement must approve payment for an absence between 31 and 90 days; and(4) In unusual circumstances, payments may continue for an absence of longer than 90 days with prior written approval by the CPS assistant commissioner or designee.(e) A foster care provider with whom a child was placed prior to beginning a trial independence period, as defined in Texas Family Code, §263.601, is not entitled to a continuation of foster care payments during the trial independence period.</content><note type="source"><p>Source Note: The provisions of this §700.323 adopted to be effective June 1, 2000, 25 TexReg 3292; amended to be effective September 1, 2007, 32 TexReg 5386; amended to be effective February 12, 2012, 37 TexReg 711.</p></note></section><section identifier="/us/state/tx/tac/t40/p19/c700/scC/s700.328"><num value="700.328">§700.328</num><heading>Foster Care Maintenance Payments</heading><content>(a) Other than in a catchment area in which the Department of Family and Protective Services (DFPS) contracts with a Single Source Continuum Contractor, all providers of 24-hour residential child care, including foster family homes verified by DFPS, general residential operations, residential treatment centers, independent foster family homes, independent foster group homes, Supervised Independent Living (SIL) providers, child-placing agencies, and any other entity that meets the definition of "child-care institution" under 42 U.S.C. §672 must complete a contract or agreement with DFPS in order to receive foster care maintenance payments.(b) DFPS's foster care rates are approved by the Health and Human Services Commission in accordance with 1 TAC §355.7103 (relating to Rate-Setting Methodology for 24-Hour Residential Child-Care Reimbursements) and 1 TAC §355.7105 (relating to Reimbursement Methodology for Supervised Independent Living). Except as otherwise provided in those rules, the foster care payment rate is tied to the child's service level or under the Texas Child-Centered Care (T3C) System, the child's Service Package.(c) Any entity that receives foster care maintenance payments in accordance with subsection (a) of this section must accept DFPS's Common Application for Placement of Children in Residential Child Care as the uniform assessment form and application for admission.(d) General residential operations, residential treatment centers, independent foster family homes, independent foster group homes, SIL providers, Single Source Continuum Contractors, and child-placing agencies that receive payment from DFPS either directly or indirectly must submit cost reports in compliance with 1 TAC §355.7101 (relating to Cost Determination Process) and as specified in the entity's contract or agreement with DFPS. Failure to complete and submit a cost report is grounds for placing a hold on payments to the provider or for terminating the contract or agreement.</content><note type="source"><p>Source Note: The provisions of this §700.328 adopted to be effective October 31, 1984, 9 TexReg 5431; amended to be effective June 15, 1988, 13 TexReg 2219; transferred effective September 1, 1992, as published in the Texas Register September 11, 1992, 17 TexReg 6279; amended to be effective January 1, 1994, 18 TexReg 8975; amended to be effective March 1, 2004, 29 TexReg 1416; amended to be effective September 1, 2007, 32 TexReg 5386; amended to be effective February 12, 2012, 37 TexReg 711; amended to be effective December 22, 2024, 49 TexReg 10389.</p></note></section><section identifier="/us/state/tx/tac/t40/p19/c700/scC/s700.329"><num value="700.329">§700.329</num><heading>Effective Dates of Foster Care Maintenance Payments</heading><content>(a) The effective date for beginning foster care maintenance payments is the date the child meets all eligibility requirements for foster care assistance.(b) The Department of Family and Protective Services (DFPS) pays for the calendar day on which a child is placed, but not for the calendar day on which the child is discharged.(c) DFPS does not pay two different facilities for foster care assistance for the same child on the same date.</content><note type="source"><p>Source Note: The provisions of this §700.329 adopted to be effective October 31, 1984, 9 TexReg 5431; transferred effective September 1, 1992, as published in the Texas Register September 11, 1992, 17 TexReg 6279; amended to be effective September 1, 2007, 32 TexReg 5386; amended to be effective February 12, 2012, 37 TexReg 711.</p></note></section><section identifier="/us/state/tx/tac/t40/p19/c700/scC/s700.330"><num value="700.330">§700.330</num><heading>Billing and Payment for Foster Care Assistance</heading><content>(a) The Department of Family and Protective Services (DFPS) will offset the costs of foster care assistance by utilizing any resources available to the child in excess of applicable resource limits and any sources of a child's income that are designated for the child's maintenance and support. Such sources of income include but are not limited to: Supplemental Security Income (SSI); Retirement, Survivors, and Disability Insurance (RSDI); Veterans Administration (VA) benefits; any other dependent or survivor's income; funds resulting from the child's Indian heritage; or other income from private sources designated for the child's support and maintenance. However, income earned by the foster child as a result of the child's employment while under the placement and care responsibility of DFPS cannot be used to pay for the child's care.(b) DFPS foster care billing staff use the IMPACT System to pay foster care assistance.(c) If a county pays for foster care for the care of a child who is ineligible for state-provided foster care assistance or if a child's funds are used, the rate must be the same rate as DFPS pays.</content><note type="source"><p>Source Note: The provisions of this §700.330 adopted to be effective October 31, 1984, 9 TexReg 5431; transferred effective September 1, 1992, as published in the Texas Register September 11, 1992, 17 TexReg 6279; amended to be effective January 1, 1998, 22 TexReg 12547; amended to be effective March 1, 2004, 29 TexReg 1416; amended to be effective September 1, 2007, 32 TexReg 5386; amended to be effective February 12, 2012, 37 TexReg 711.</p></note></section><section identifier="/us/state/tx/tac/t40/p19/c700/scC/s700.331"><num value="700.331">§700.331</num><heading>Effect of SSI Eligibility on Foster Care Payments</heading><content>(a) A child who receives Supplemental Security Income (SSI) benefits is eligible for state-paid foster care assistance, subject to offset as described in subsection (c) of this section and §700.330 of this title (relating to Billing and Payment for Foster Care Assistance).(b) A foster care provider is eligible to receive state foster care payments for a child who is receiving SSI benefits only to the extent the cost of foster care exceeds the amount of the SSI benefits. Under no circumstances may a foster care provider receive a full foster care payment and the full SSI monthly benefit or any amount in excess of the applicable foster care reimbursement, as the foster care reimbursement is reduced dollar-for-dollar by SSI benefit amount.(c) A child is not entitled to receive both SSI benefits and Title IV-E foster care assistance. However, the Department of Family and Protective Services may make a decision to suspend SSI benefits for children who are Title IV-E eligible, in order to maximize federal funding.</content><note type="source"><p>Source Note: The provisions of this §700.331 adopted to be February 12, 2012, 37 TexReg 711.</p></note></section><section identifier="/us/state/tx/tac/t40/p19/c700/scC/s700.332"><num value="700.332">§700.332</num><heading>Eligibility for Foster Care Day Care Services</heading><content>(a) In this subchapter, the following terms have the following meanings:(1) "Day care" means the assessment, care, training, education, custody, treatment, or supervision of a foster child by a person other than the child's foster parent for less than 24 hours a day, but at least two hours a day, three or more days a week.(2) "Emergency placement that is in the child's best interest" means that despite the exercise of reasonable diligence, compliance with the Department's verification process regarding the availability of community day care resources would interfere with a placement that is in the child's best interest.(3) "School-aged child" means a child who has reached the age of 6 by September 1 of the current year or who enrolls in school and reaches the age of 6 during the school year.(b) To the extent funds are available and in accordance with any priority system established under subsection (e) of this section, DFPS may provide day care for authorized purposes to a foster parent if:(1) the child is 13 years or younger and either:(A) placed in a foster family home or foster group home where each foster parent in the home works outside the home 40 hours per week or more; or(B) the child of a parent who is a minor in foster care if the child:(i) is not in the conservatorship of DFPS;(ii) resides with the child's minor parent in a foster home where all caregivers are employed full-time;(iii) receives primary care from the minor parent outside of school hours;(iv) needs day care to allow the minor parent to remain in school and complete the minor parent's educational goals; and(v) has a minor parent who is unable to access child care through a Texas Workforce Commission work or training program or through a school-based operation.(2) the foster parent is a resident of Texas;(3) the child's service level is basic or if placed in a T3C Basic Foster Family Home Service Package under the Texas Child-Centered (T3C) System;(4) the child is in DFPS' managing conservatorship and not in an adoptive placement; and(5) there is no other available type of day care provided by the community, and the foster parent verifies in writing that the foster parent has attempted to find appropriate day care services for the child through community services, including:(A) Head Start programs;(B) Prekindergarten classes;(C) Early education programs offered in public schools; and(D) Any other available and appropriate resources in the foster parent's community.(c) Day care for foster parents is authorized for the purpose of providing daily supervision:(1) during the foster parents' work hours; or(2) while the foster parents are attending judicial reviews, case conferences, or foster parent training.(d) Day care for foster parents is not authorized for the following:(1) full-time day care during school holidays;(2) teacher in-service days;(3) inclement-weather days;(4) short breaks between semesters in a year-round school program;(5) part-time care; or(6) after-school care for school-aged children.(e) To monitor the spending of funds, a priority system among foster parents will also be established in policy. The priority system will be based upon need, but at a minimum will require:(1) a determination by DFPS that the provision of day care is critical to maintaining the placement of the child with the foster parent; and(2) at least one child placed by DFPS:(A) is under six years of age; or(B) has a developmental delay (including physical, emotional, and cognitive or language) or physical disability.(f) Notwithstanding any other provision of this section, if DFPS determines that requiring the written verification of a foster parent's attempts to find appropriate community day care services would prevent an emergency placement in the child's best interest, DFPS may waive the submission of the written verification of the foster parent's attempts. DFPS is authorized to require the submission of the written verification at any point following the initial authorization of day care services.(g) The Associate Commissioner for Child Protective Services, the Associate Commissioner for Child Protective Investigations, or the Associate Commissioners' designees, may grant a good cause waiver of any of the requirements in subsection (b) or (d) of this section, if that person determines that:(1) the placement cannot be sustained or is unlikely to be sustained if the foster parent cannot receive day care;(2) there is no reasonable alternative to the provision of day care, such as a change in working hours; and(3) day care services are only authorized in increments that are commensurate with the hours and days the foster parent and caregivers must be outside the home for employment.(h) For a child who becomes ineligible during the term of a prior authorization, DFPS may in its discretion permit day care to continue through the end of the previously authorized period.(i) DFPS pays for day care only in licensed child care centers and registered child care homes that are contracted through the local child care management service agency, unless care is self-arranged and DFPS gives prior approval to pay day care in the arrangement.</content><note type="source"><p>Source Note: The provisions of this §700.332 adopted to be effective March 1, 2014, 39 TexReg 1174; amended to be effective January 19, 2017, 42 TexReg 84; amended to be effective February 2, 2021, 46 TexReg 839; amended to be effective December 22, 2024, 49 TexReg 10389.</p></note></section><section identifier="/us/state/tx/tac/t40/p19/c700/scC/s700.334"><num value="700.334">§700.334</num><heading>Eligibility for Special Needs Foster Child Day Care Services</heading><content>(a) To the extent funds are available, DFPS may provide special needs foster child day care services for authorized purposes to a foster parent if the child:(1) meets all eligibility requirements in §700.332 of this title (relating to Eligibility for Foster Care Day Care Services);(2) is placed in a foster family or foster group home;(3) has a billing service level of Basic or receives an approved waiver of the required basic service level through the regional day care coordinator or is placed in the T3C Basic Foster Family Home Service Package, under the Texas Child-Centered Care (T3C) System;(4) is age 5 or younger;(5) has been diagnosed by a professional as having a developmental delay, which is documented in the case record, in at least one of the following areas: physical, social, emotional, cognitive or language development; and(6) has a service plan that specifies:(A) the need for therapeutic or habilitative child day care; and(B) how therapeutic child day care will meet specific needs related to the child's developmental delays that cannot be met by the foster parents.(b) DFPS pays for special needs foster child day care only in licensed child-care centers and registered child-care homes that are contracted through the local child care management service agency, provide services beyond basic supervision, and are certified to provide care for children with special needs.</content><note type="source"><p>Source Note: The provisions of this §700.334 adopted to be effective January 19, 2017, 42 TexReg 874; amended to be effective December 22, 2024, 49 TexReg 10389.</p></note></section><section identifier="/us/state/tx/tac/t40/p19/c700/scC/s700.345"><num value="700.345">§700.345</num><heading>Eligibility for Foster Care Recipients Placed Out of State or Placed in Texas from Other States</heading><content>(a) When a Title IV-E foster care assistance recipient is placed out of state, the Texas Department of Family and Protective Services (DFPS) continues to make foster care maintenance payments; but the receiving state becomes responsible for the Medicaid benefits. DFPS furnishes the receiving state with Title IV-E eligibility information for payment of Medicaid benefits.(b) When a state-paid or medical-assistance-only foster care recipient is placed out of state, DFPS continues to provide both Medicaid benefits and foster care maintenance payments, as applicable.(c) When a Title IV-E foster care assistance recipient is placed in Texas from another state, the sending state continues to make Title IV-E foster care maintenance payments, but DFPS provides the Medicaid coverage. The sending state furnishes DFPS with Title IV-E eligibility information for payment of Medicaid benefits.</content><note type="source"><p>Source Note: The provisions of this §700.345 adopted to be effective May 1, 1989, 14 TexReg 1536; transferred effective September 1, 1992, as published in the Texas Register September 11, 1992, 17 TexReg 6279; amended to be effective September 1, 2007, 32 TexReg 5386.</p></note></section><section identifier="/us/state/tx/tac/t40/p19/c700/scC/s700.346"><num value="700.346">§700.346</num><heading>Extended Foster Care</heading><content>(a) Subject to the availability of a placement approved by the Department of Family and Protective Services (DFPS), a young adult may receive foster care assistance if all of the following eligibility requirements are met:(1) The young adult meets the requirements of §700.316 of this title (relating to General Eligibility Requirements for Foster Care Assistance);(2) The young adult turned 18 years of age while in the temporary or permanent managing conservatorship of DFPS;(3) The young adult signs and continues to abide by the terms of a Voluntary Extended Foster Care Agreement, including monthly caseworker visits and participation in all required extended foster care review hearings under Subchapter G of Chapter 263, Texas Family Code;(4) The young adult provides sufficient documentation on a periodic basis as required by the terms of the young adult's Voluntary Extended Foster Care Agreement to demonstrate that within 30 days of turning 18, the young adult is engaged in an eligible activity. For the purposes of this section, an "eligible activity" includes:(A) Regularly attending high school or a program leading toward a high school diploma or high school equivalence certificate;(B) Regularly attending an institution of higher education or a post-secondary vocational or technical program;(C) Actively participating in a program or activity that promotes, or removes barriers to, employment;(D) Being employed for at least 80 hours per month; or(E) Being incapable of performing any of the activities listed in subparagraphs (A) - (D) of this paragraph due to a documented medical condition, as further described in subsection (b) of this section; and(5) A young adult who is eligible for SSI, RSDI, or another monthly benefit designated for the young adult's maintenance and support agrees to allow DFPS to use any benefits received to offset the young adult's cost of care pursuant to a voluntary extended foster care financial agreement.(b) There is a presumption that a young adult is capable of the activities listed in subsection (a)(4)(A) - (D) of this section. The presumption can be rebutted if sufficient documentation is provided to verify the medical condition and that the medical condition renders the young adult incapable of those activities. Such documentation of a medical condition might include a determination of disability from SSA, a determination of mental retardation, or a statement from a medical doctor that verifies the activities of daily living that the young adult is rendered incapable of performing as a result of the medical condition.(c) Eligibility for extended foster care assistance ends on the earlier of the date a young adult ceases to meet the eligibility requirements of this section or the end of the month of the young adult's 21st birthday, except that a young adult who is otherwise eligible may continue to receive benefits until the young adult's 22nd birthday if the young adult is regularly attending high school or a program leading toward a high school diploma or high school equivalence certificate.(d) A young adult who qualifies for extended foster care under this section may transition between eligible activities for a period not to exceed 30 days. A transition period in excess of 30 days, including a failure to provide sufficient documentation of participation in an eligible activity, will be considered a cessation of eligibility and will result in the termination of extended foster care assistance.(e) A young adult may return to extended foster care at any time prior to the month before the young adult's 21st birthday, provided all the requirements in subsections (a) - (c) of this section are met.</content><note type="source"><p>Source Note: The provisions of this §700.346 adopted to be effective February 12, 2012, 37 TexReg 711.</p></note></section><section identifier="/us/state/tx/tac/t40/p19/c700/scC/s700.347"><num value="700.347">§700.347</num><heading>Supervised Independent Living Placements</heading><content>(a) In order for a young adult to be placed in a Supervised Independent Living (SIL) Placement the following must occur:(1) The young adult must be determined eligible for the extended foster care program as provided in §700.346 of this title (relating to Extended Foster Care);(2) The young adult must be approved by the Department of Family and Protective Services (DFPS) for the SIL placement; and(3) There must be an SIL placement approved by DFPS available.(b) During the SIL placement the young adult must continue to meet the eligibility requirements of the extended foster care program as set forth in §700.346 of this title.(c) If at any time the SIL placement is not meeting the needs of the young adult, the young adult is not functioning well or not following the rules of the placement, or the placement is otherwise inappropriate, DFPS has the option to place the young adult in another SIL placement or another foster care placement.</content><note type="source"><p>Source Note: The provisions of this §700.347 adopted to be effective February 12, 2012, 37 TexReg 711.</p></note></section><section identifier="/us/state/tx/tac/t40/p19/c700/scC/s700.348"><num value="700.348">§700.348</num><heading>Enhanced Case Management Services in a Supervised Independent Living Setting</heading><content>(a) Enhanced Case Management (ECM) services can be provided to eligible young adults who participate in the Supervised Independent Living (SIL) Program when these young adults require additional support or services to be able to adjust and maintain independence while residing in the SIL placement. ECM services can include, but are not limited to:(1) assisting the young adult in scheduling, obtaining, and maintaining available medical, educational, employment, or other services through community-based, governmental agencies, or other organizations;(2) assisting the young adult in arranging transportation to necessary appointments;(3) developing and monitoring a medication management plan that assists the young adult in understanding, scheduling, and managing their medication; and(4) assisting the young adult in improving their daily life-skills such as cooking, money management, cleaning, and shopping.(b) In order to receive ECM services the young adult must:(1) be referred, assessed, and approved for the SIL program as determined by DFPS, or the Single Source Continuum Contractor (SSCC);(2) be placed in one of the following SIL settings:(A) apartment;(B) non-college dorm;(C) shared housing; or(D) host home;(3) not require 24-hour supervision while in the supervised independent living program;(4) have basic skills in self-care and the ability to follow a daily routine; and(5) have one or more of the following characteristics:(A) frequent, but non-violent, antisocial acts;(B) frequent or unpredictable physical aggression;(C) depressive behaviors including being markedly withdrawn and self-isolating;(D) major self-injurious actions, including attempting suicide in the last 12 months;(E) current abuse of alcohol, drugs, or other consciousness-altering substances, that results in severe impairment due to the substance abuse and there is a primary diagnosis of substance abuse or dependency; or(F) an intellectual or developmental disability.</content><note type="source"><p>Source Note: The provisions of this §700.348 adopted to be effective December 9, 2020, 45 TexReg 8780.</p></note></section></subchapter><subchapter identifier="/us/state/tx/tac/t40/p19/c700/scE"><num value="E">SUBCHAPTER E</num><heading>TEXAS CHILD-CENTERED CARE SYSTEM SERVICE PACKAGES</heading><section identifier="/us/state/tx/tac/t40/p19/c700/scE/s700.501"><num value="700.501">§700.501</num><heading>What is T3C Basic Foster Family Home Support Service Package?</heading><content>(a) A trauma-informed foster family home that provides a child's basic living needs, including food, clothing, shelter, education, vocation, transportation, recreation, and extracurricular needs, which may vary based on age and developmental level.(b) This Service Package is designed to offer community-based care for children, youth, and young adults based on their individual strengths and needs, and in accordance with their customized Service Plan and permanency goal.(c) Child Placing Agencies and Foster Family Home Caregivers must be Credentialed to provide T3C Basic Foster Family Home Support Services in accordance with the guidelines and requirements as defined by the Department of Family and Protective Services pursuant to Chapter 40 of the Texas Human Resources Code.</content><note type="source"><p>Source Note: The provisions of this §700.501 adopted to be effective December 22, 2024, 49 TexReg 10389.</p></note></section><section identifier="/us/state/tx/tac/t40/p19/c700/scE/s700.502"><num value="700.502">§700.502</num><heading>What is the Substance Use Support Services Package?</heading><content>(a) A trauma-informed foster family home that in addition to providing a child's basic living needs, has enhanced training and skill in coordinating services and providing care for children, youth, and young adults that may present with a DSM diagnosis of substance-related disorder or with challenges with recurring substance use, and who require routine clinical intervention to support and manage day-to-day activities.(b) This Service Package is designed to offer community-based care and treatment/recovery services for children, youth, and young adults based on their individual strengths and needs, and in accordance with their customized Service Plan and permanency goals.(c) Child Placing Agencies and Foster Family Home Caregivers must be Credentialed to provide Substance Use Support Services in accordance with the guidelines and requirements as defined by the Department of Family and Protective Services pursuant to Chapter 40 of the Texas Human Resources Code.</content><note type="source"><p>Source Note: The provisions of this §700.502 adopted to be effective December 22, 2024, 49 TexReg 10389.</p></note></section><section identifier="/us/state/tx/tac/t40/p19/c700/scE/s700.503"><num value="700.503">§700.503</num><heading>What is the Short-Term Assessment Support Services Package?</heading><content>(a) A trauma-informed foster home that in addition to providing a child's basic living needs, provides short-term coordination of comprehensive assessments and evaluations for children, youth, and young adults who are in need of further assessment(s) and evaluation (s) to identify an appropriate Service Package and subsequent placement, who may present as:(1) New to care, or transitioning from an unpaid placement, and where more information is needed to understand the child's custom service need(s); or(2) Returning to foster care after an unauthorized absence or unauthorized placement; or(3) Transitioning based on a recent, un-planned, disruption in placement..(b) This Service Package is designed to offer community-based care, assessment, and treatment services for children, youth and young adults based on their individual strengths and needs, and in accordance with their customized Service Plan and permanency goal. This Service Package is not eligible for Add-On Services and is time-limited.(c) Child Placing Agency and Foster Family Home Caregivers must be Credentialed to provide the Short-Term Assessment Support Services in accordance with the guidelines and requirements as defined by the Department of Family and Protective Services pursuant to Chapter 40 of the Texas Human Resources Code.</content><note type="source"><p>Source Note: The provisions of this §700.503 adopted to be effective December 22, 2024, 49 TexReg 10389.</p></note></section><section identifier="/us/state/tx/tac/t40/p19/c700/scE/s700.504"><num value="700.504">§700.504</num><heading>What is the Mental & Behavioral Health Support Services Package?</heading><content>(a) A trauma-informed foster home that in addition to providing a child's basic living needs, has enhanced training and skill in providing and coordinating services to children, youth, and young adults that may present with a DSM diagnosis for emotional, conduct, or behavioral disorder(s), and for whom routine clinical intervention (therapy, education, and/or medication) is needed to support and manage day-to-day activities.(b) This Service Package is designed to offer community-based care and treatment/recovery services for children, youth, and young adults based on their individual strengths and needs, and in accordance with their customized Service Plan and permanency goal.(c) Child Placing Agencies and Foster Family Home Caregivers must be Credentialed to provide Mental & Behavioral Health Support Services in accordance with the guidelines and requirements as defined by the Department of Family and Protective Services pursuant to Chapter 40 of the Texas Human Resources Code.</content><note type="source"><p>Source Note: The provisions of this §700.504 adopted to be effective December 22, 2024, 49 TexReg 10389.</p></note></section><section identifier="/us/state/tx/tac/t40/p19/c700/scE/s700.505"><num value="700.505">§700.505</num><heading>What is the Sexual Aggression/Sex Offender Support Services Package?</heading><content>(a) A trauma-informed foster home that in addition to providing a child's basic living needs, has enhanced training and skill in providing and coordinating services to treat and support children, youth, and young adults who require routine clinical intervention and skilled caregiver support to manage day-to-day activities, who may present with one or more of the following:(1) Ongoing, socially, and developmentally inappropriate displays of sexualized behavior; or(2) Sexually aggressive behavior; or(3) DSM diagnosis of a sexual behavior disorder; or(4) Adjudication as a sexual offender.(b) This Service Package is designed to offer community-based care and treatment/recovery services for children, youth, and young adults based on their individual strengths and needs, and in accordance with their customized Service Plan and permanency goal.(c) Child Placing Agencies and Foster Family Home Caregivers must be Credentialed to provide Sexual Aggression/Sex Offender Support Services in accordance with the guidelines and requirements as defined by the Department of Family and Protective Services pursuant to Chapter 40 of the Texas Human Resources Code.</content><note type="source"><p>Source Note: The provisions of this §700.505 adopted to be effective December 22, 2024, 49 TexReg 10389.</p></note></section><section identifier="/us/state/tx/tac/t40/p19/c700/scE/s700.506"><num value="700.506">§700.506</num><heading>What is the Complex Medical Needs or Medically Fragile Support Services Package?</heading><content>(a) A trauma-informed foster home that in addition to providing a child's basic living needs, has enhanced training and skill in providing and coordinating services to care for and support children, youth, and young adults who may present with a medical diagnosis that requires constant monitoring, access to skilled nursing and other care up to 24 hours a day/7 days a week (based on eligibility), or who may present with a complex medical need such as uncontrolled diabetes, and for whom the individual's well-being depends on the support, direction, or service of others.(b) This Service Package is designed to offer community-based care, medical, and other therapy/rehabilitation services to support recovery (if applicable), well-being, and improve the quality of life for children, youth, and young adults, based on their individual strengths and needs, and in accordance with their customized Service Plan and permanency goal.(c) Child Placing Agencies and Foster Family Home Caregivers must be Credentialed to provide Complex Medical Needs or Medically Fragile Support Services in accordance with the guidelines and requirements as defined by the Department of Family and Protective Services pursuant to Chapter 40 of the Texas Human Resources Code.</content><note type="source"><p>Source Note: The provisions of this §700.506 adopted to be effective December 22, 2024, 49 TexReg 10389.</p></note></section><section identifier="/us/state/tx/tac/t40/p19/c700/scE/s700.507"><num value="700.507">§700.507</num><heading>What is Human Trafficking Victim/Survivor Support Service Package?</heading><content>(a) A trauma-informed foster home that in addition to providing a child's basic living needs, has enhanced training and skill in providing and coordinating services to support children, youth, and young adults who present as suspected-unconfirmed or confirmed victims/survivors of sex and/or labor trafficking and who require routine clinical intervention to support and manage day-to-day activities.(b) This Service Package is designed to offer community-based care and treatment/recovery services for children, youth, and young adults based on their individual strengths and needs, and in accordance with their customized Service Plan and permanency goal.(c) Child Placing Agencies and Foster Family Home Caregivers must be Credentialed to provide Human Trafficking Victim/Survivor Support Service in accordance with the guidelines and requirements as defined by the Department of Family and Protective Services pursuant to Chapter 40 of the Texas Human Resources Code.</content><note type="source"><p>Source Note: The provisions of this §700.507 adopted to be effective December 22, 2024, 49 TexReg 10389.</p></note></section><section identifier="/us/state/tx/tac/t40/p19/c700/scE/s700.508"><num value="700.508">§700.508</num><heading>What is Intellectual or Developmental Disability (IDD)/Autism Spectrum Disorder Support Service Package?</heading><content>(a) A trauma-informed foster home that in addition to providing a child's basic living needs, has enhanced training and skill in providing and coordinating services to care for and support children, youth, and young adults who may present with or who are pending a DSM diagnosis for Intellectual or Developmental Disability and/or Autism Spectrum Disorder, and who require routine clinical intervention and structure to support and manage day-to-day activities.(b) This Service Package is designed to offer community-based care, therapy, and other rehabilitation services that promote development, independence, and improve life skills for children, youth, and young adults based on their individual strengths and needs, and in accordance with their customized Service Plan and permanency goal.(c) Child Placing Agencies and Foster Family Home Caregivers must be Credentialed to provide Intellectual or Developmental Disability (IDD)/Autism Spectrum Disorder Support Services in accordance with the guidelines and requirements as defined by the Department of Family and Protective Services pursuant to Chapter 40 of the Texas Human Resources Code.</content><note type="source"><p>Source Note: The provisions of this §700.508 adopted to be effective December 22, 2024, 49 TexReg 10389.</p></note></section><section identifier="/us/state/tx/tac/t40/p19/c700/scE/s700.509"><num value="700.509">§700.509</num><heading>What is T3C Treatment Foster Family Care Support Service Package?</heading><content>(a) A trauma-informed, highly-structured foster home that in addition to providing a child's basic living needs, has highly-trained Foster Family Home Caregivers with skill in providing time-limited, strength-based therapeutic services to children, youth, and young adults who may present with a DSM diagnosis for an emotional, conduct, or behavioral disorder and for whom structured and frequent clinical intervention and complex case management is needed to support and manage day-to-day activities.(b) In addition to the DSM diagnosis for an emotional disorder, the child may demonstrate two or more of the following:(1) Major self-injurious actions, including a suicide attempt within the last 12 months;(2) Difficulties that present a significant risk of harm to others, including frequent or unpredictable physical aggression; or(3) An additional DSM diagnosis of substance-related and/or addictive disorder with severe impairment.(c) The T3C Treatment Foster Family Care Support Services Package require the highest level of clinical intervention offered in a family setting to perform day-to-day activities.(d) This Service Package is designed to offer community-based care and treatment/recovery services for children, youth, and young adults based on their individual strengths and needs, and in accordance with their customized Service Plan and permanency goal.(e) Child Placing Agencies and Foster Family Home Caregivers must be Credentialed to provide T3C Treatment Foster Family Care Support Service in accordance with the guidelines and requirements as defined by the Department of Family and Protective Services pursuant to Chapter 40 of the Texas Human Resources Code.</content><note type="source"><p>Source Note: The provisions of this §700.509 adopted to be effective December 22, 2024, 49 TexReg 10389.</p></note></section><section identifier="/us/state/tx/tac/t40/p19/c700/scE/s700.510"><num value="700.510">§700.510</num><heading>What is the Transition Support Services for Youth and Young Adults Add-On?</heading><content>In addition to the youth or young adult's primary Service Package, this is a trauma-informed foster home with enhanced training and skill in caring for, coordinating services, assisting in completion of forms/referrals, and supporting experiential learning opportunities for youth and young adults ages 14-22 years old. The Transitional Support Services for Youth & Young Adults Add-On Service is intended to support the youth and young adult's transition to independence and adulthood.</content><note type="source"><p>Source Note: The provisions of this §700.510 adopted to be effective December 22, 2024, 49 TexReg 10389.</p></note></section><section identifier="/us/state/tx/tac/t40/p19/c700/scE/s700.511"><num value="700.511">§700.511</num><heading>What is the Kinship Caregiver Support Services Add-On?</heading><content>In addition to the child, youth, or young adult's primary Service Package, the Child Placing Agency provides enhanced support services to the Kinship Foster Family Home Caregivers. These support services should be customized to the needs of the Kinship Caregivers and the child, youth, or young adult living in the Kinship Foster Family Home. Funding to support this Add-On Service is intended to reimburse the Child Placing Agency for costs incurred to support the Kinship Caregivers through the foster home verification process.</content><note type="source"><p>Source Note: The provisions of this §700.511 adopted to be effective December 22, 2024, 49 TexReg 10389.</p></note></section><section identifier="/us/state/tx/tac/t40/p19/c700/scE/s700.512"><num value="700.512">§700.512</num><heading>What is the Pregnant & Parenting Youth or Young Adult Support Services Add-On?</heading><content>In addition to the youth or young adult's primary Service Package being offered through the Child Placing Agency, this Add-On Service is offered in a trauma-informed foster home that has enhanced training and skill in caring for, mentoring/coaching, and offering support services for youth who are pregnant or actively parenting their biological child(ren). Pregnant & Parenting Youth or Young Adult Support Services may be offered to the mother or the father, so long as the youth or young adult receiving the Add-On Service has their biological child placed with them and are residing in a Credentialed foster home.</content><note type="source"><p>Source Note: The provisions of this §700.512 adopted to be effective December 22, 2024, 49 TexReg 10389.</p></note></section><section identifier="/us/state/tx/tac/t40/p19/c700/scE/s700.513"><num value="700.513">§700.513</num><heading>General Residential Operations - Tier T3C Treatment/Transition Service Packages</heading><content>Information contained in the rules in this Division 2, GENERAL RESIDENITIAL OPERATION TIER I AND TIER II SUPPORT SERVICE PACKAGES, outline the parameters/requirements associated with the Tier I Service Packages. The incorporation of these parameters and or requirements are consistent with or may exceed the state's Minimum Licensing Standards for a General Residential Operation and are not intended to change the existing character of the childcare operation. Providers may elect to become Credentialed to provide more than one T3C Service Package in a General Residential Operation Tier I or a Tier II setting.</content><note type="source"><p>Source Note: The provisions of this §700.513 adopted to be effective December 22, 2024, 49 TexReg 10389.</p></note></section><section identifier="/us/state/tx/tac/t40/p19/c700/scE/s700.514"><num value="700.514">§700.514</num><heading>What is Tier I: T3C Basic Child Care Operation Package?</heading><content>(a) A trauma-informed facility or cottage home that provides a child's basic living needs, including food, shelter, education, vocation, transportation, recreation, and extracurricular activities which may vary based on age and developmental level.(b) This Service Package is designed to offer temporary facility-based, or cottage-home care for children, youth, and young adults based on their individual strengths and needs, and in accordance with their customized Service Plan and permanency goal.(c) The Operation must be Credentialed to provide Tier I: T3C Basic Child Care Operation Services in accordance with the guidelines and requirements as defined by the Department of Family and Protective Services pursuant to Chapter 40 of the Texas Human Resources Code.</content><note type="source"><p>Source Note: The provisions of this §700.514 adopted to be effective December 22, 2024, 49 TexReg 10389.</p></note></section><section identifier="/us/state/tx/tac/t40/p19/c700/scE/s700.515"><num value="700.515">§700.515</num><heading>What is Tier I: Services to Support Community Transition for Youth & Young Adults who are Pregnant or Parenting Package?</heading><content>(a) A trauma-informed facility, that in addition to providing for a youth, young adult, and their child's (if applicable) basic living needs, has enhanced training and expertise in caring for, mentoring/coaching, and providing/coordinating time-limited services to support the needs of youth and young adults who are pregnant or actively parenting their own biological child(ren). This Service Package may be offered to the mother and/or the father.(b) This Service Package is designed to offer temporary, facility-based care, complex care coordination and case management, and therapeutic/skill-building services for youth and young adults based on their individual strengths and needs, and in accordance with their customized Service Plan and permanency goal.(c) The Operation must be Credentialed to provide Tier I: Services to Support Community Transition for Youth & Young Adults who are Pregnant or Parenting in accordance with the guidelines and requirements as defined by the Department of Family and Protective Services pursuant to Chapter 40 of the Texas Human Resources Code.</content><note type="source"><p>Source Note: The provisions of this §700.515 adopted to be effective December 22, 2024, 49 TexReg 10389.</p></note></section><section identifier="/us/state/tx/tac/t40/p19/c700/scE/s700.516"><num value="700.516">§700.516</num><heading>What is Tier I: Sexual Aggression/Sex Offender Treatment Services to Support Community Transition Package?</heading><content>(a) A trauma-informed facility, that in addition to providing a child's basic living needs, has a formal treatment program that specializes in providing and coordinating time-limited services to support the custom needs of children, youth, and young adults who requires structured and frequent on-site, clinical intervention by professionals with experience in serving this population, complex case management, and skilled and well-trained Caregivers to manage day-to-day activities, who present with one or more of the following:(1) Ongoing, socially, and developmentally inappropriate displays of sexualized behavior; or(2) Sexually aggressive behavior; or(3) DSM diagnosis of a sexual behavior disorder; or(4) Adjudication as a sex offender.(b) In addition to the criteria listed above, children, youth, and young adults requiring Tier I: Sexual Aggression/Sex Offender Treatment Services to Support Community Transition Service Package, often present with a DSM diagnosis for an emotional disorder, and two or more of the following (which, if applicable, the General Residential Operation must be equipped to treat based on the custom needs of the child, youth, or young adult):(1) Major self-injurious actions, including a suicide attempt within the last 12 months;(2) Difficulties that present a significant risk of harm to others, including frequent or unpredictable physical aggression; or(3) An additional DSM diagnosis of substance-related and/or addictive disorder with severe impairment.(c) This Service Package is designed to offer temporary, facility-based care, complex care coordination and case management, and therapeutic/skill-building services for youth and young adults based on their individual strengths and needs, and in accordance with their customized Service Plan and permanency goal.(d) The Operation must be Credentialed to provide Tier I: Sexual Aggression/Sex Offender Treatment Services in accordance with the guidelines and requirements as defined by the Department of Family and Protective Services pursuant to Chapter 40 of the Texas Human Resources Code.</content><note type="source"><p>Source Note: The provisions of this §700.516 adopted to be effective December 22, 2024, 49 TexReg 10389.</p></note></section><section identifier="/us/state/tx/tac/t40/p19/c700/scE/s700.517"><num value="700.517">§700.517</num><heading>What is Tier I: Substance Use Treatment Services to Support Community Transition Package?</heading><content>(a) A trauma-informed facility, that in addition to providing a child's basic living needs, has a formal treatment program that specializes in providing and coordinating time-limited services to support the custom needs of children, youth, and young adults who may present with or who are pending a DSM diagnosis for a substance related and/or addictive disorder causing severe impairment, and who require structured and frequent, on-site, clinical intervention, and complex care coordination and case management to support and manage day-to-day activities.(b) This Service Package is designed to offer temporary, facility-based care, complex care coordination and case management, and therapeutic/skill-building services for youth and young adults based on their individual strengths and needs, and in accordance with their customized Service Plan and permanency goal.(c) The Operation must be Credentialed to provide Tier I: Substance Use Treatment Services in accordance with the guidelines and requirements as defined by the Department of Family and Protective Services pursuant to Chapter 40 of the Texas Human Resources Code.</content><note type="source"><p>Source Note: The provisions of this §700.517 adopted to be effective December 22, 2024, 49 TexReg 10389.</p></note></section><section identifier="/us/state/tx/tac/t40/p19/c700/scE/s700.518"><num value="700.518">§700.518</num><heading>What is Tier I: Emergency Emotional Support & Assessment Center Package?</heading><content>(a) A trauma-informed facility, that in addition to providing a child's basic living needs, has a formal emotional support and assessment program that specializes in providing time-limited services to support the custom needs of children, youth, and young adults who are in need of further assessment(s) and evaluation(s) to identify an appropriate Service Package and subsequent placement, who present as:(1) New to care, or transitioning from an unpaid placement, with suspected but unconfirmed, or confirmed behavioral health need(s); or(2) Transitioning after a stay in a psychiatric hospital; or(3) Returning to foster care after an unauthorized absence, or unauthorized placement, with a suspected but unconfirmed, or confirmed behavioral health need(s); or(4) Transitioning based on a recent, un-planned disruption in placement, where a suspected but unconfirmed, or confirmed behavioral health need(s) was a factor contributing to the disruption.(b) This Service Package is designed to offer temporary, facility-based care, complex care coordination and case management, and therapeutic/skill-building services for youth and young adults based on their individual strengths and needs, and in accordance with their customized Service Plan and permanency goal.(c) The Operation must be Credentialed to provide Tier I: Emergency Emotional Support & Assessment Center Services in accordance with the guidelines and requirements as defined by the Department of Family and Protective Services pursuant to Chapter 40 of the Texas Human Resources Code.</content><note type="source"><p>Source Note: The provisions of this §700.518 adopted to be effective December 22, 2024, 49 TexReg 10389.</p></note></section><section identifier="/us/state/tx/tac/t40/p19/c700/scE/s700.519"><num value="700.519">§700.519</num><heading>What is Tier I: Complex Medical Needs Treatment to Support Community Transition Package?</heading><content>(a) A trauma-informed facility, that in addition to providing a child's basic living needs, has a formal treatment/therapeutic program that specializes in providing a holistic, comprehensive array of medical and therapeutic supports, services, and enhanced care coordination, complex case management, and on-site access to care.(b) This time-limited service is designed for children, youth, and young adults that present with complex medical conditions, which may include uncontrolled diabetes with a documented history of non-compliance with medication management, or who may present with a medical diagnosis and who may not be able to live without mechanical supports or the services of others because of life threatening conditions, including:(1) The inability to maintain an open airway without assistance;(2) The inability to be fed except through a feeding tube, gastric tube, or a parenteral route;(3) The use of sterile techniques or specialized procedures to promote healing, prevent infection, prevent cross-infection or contamination, or prevent tissue breakdown; or(4) Multiple physical disabilities including sensory impairments.(c) This Service Package is designed to offer temporary, facility-based care, medical, and other therapy/rehabilitation services to support recovery (if applicable) and well-being and improve the quality of life for youth and young adults based on their individual strengths and needs, and in accordance with their customized Service Plan and permanency goal.(d) The Operation must be Credentialed to provide Tier I: Complex Medical Needs Treatment Services in accordance with the guidelines and requirements as defined by the Department of Family and Protective Services pursuant to Chapter 40 of the Texas Human Resources Code.</content><note type="source"><p>Source Note: The provisions of this §700.519 adopted to be effective December 22, 2024, 49 TexReg 10389.</p></note></section><section identifier="/us/state/tx/tac/t40/p19/c700/scE/s700.520"><num value="700.520">§700.520</num><heading>What is Tier I: Mental & Behavioral Health Treatment Services to Support Community Transition Package?</heading><content>(a) A trauma-informed facility, that in addition to providing a child's basic living needs, has a formal treatment program that specializes in providing and coordinating time-limited services to support the custom needs of children, youth, and young adults who may present with or who are pending a DSM diagnosis for an emotional, conduct, or behavioral disorder, and require structured and frequent, on-site, clinical intervention require structured and frequent, on-site therapy and clinical intervention, and complex care coordination and case management services to support and manage day-to-day activities.(b) In addition to the DSM diagnosis, the child may demonstrate two or more of the following:(1) Major self-injurious actions, including a suicide attempt within the last 12 months;(2) Difficulties that present a significant risk of harm to others, including frequent or unpredictable physical aggression; or(3) An additional DSM diagnosis of substance-related and/or addictive disorder with severe impairment.(c) This Service Package is designed to offer temporary, facility-based care and treatment/recovery services for children, youth, and young adults based on their individual strengths and needs, and in accordance with their customized Service Plan and permanency goal.(d) The Operation must be Credentialed to provide Tier I: Mental & Behavioral Health Treatment Services in accordance with the guidelines and requirements as defined by the Department of Family and Protective Services pursuant to Chapter 40 of the Texas Human Resources Code.</content><note type="source"><p>Source Note: The provisions of this §700.520 adopted to be effective December 22, 2024, 49 TexReg 10389.</p></note></section><section identifier="/us/state/tx/tac/t40/p19/c700/scE/s700.521"><num value="700.521">§700.521</num><heading>What is Tier I: Intellectual or Developmental Disability (IDD)/Autism Spectrum Disorder Treatment Services to Support Community Transition Package?</heading><content>(a) Trauma-informed facility, that in addition to providing a child's basic living needs, has a formal treatment/therapeutic program that specializes in providing and coordinating time-limited services to support the custom needs of children, youth, and young adults who may present with or who are pending a DSM diagnosis of Intellectual or Developmental Disability (IDD) and/or Autism Spectrum Disorder, and who require structured and frequent, on-site therapy and clinical intervention, and complex care coordination and case management services to support and manage day-to-day activities.(b) In addition, for children with a DSM diagnosis for Intellectual or Developmental Disability, and/or a DSM diagnosis for Autism Spectrum Disorder, the child's behavior may be characterized by prominent, severe deficits and pervasive impairment in one or more of the following areas:(1) Conceptual, social, and practical adaptive skills to include daily living and self-care;(2) Communication, cognition, or expressions of affect;(3) Self-care activities or participation in social activities;(4) Responding appropriately to an emergency; or(5) Multiple physical disabilities, including sensory impairments.(c) This Service Package is designed to offer temporary, facility-based care, therapy, and other services that promote development, independence, and improved life skills for children, youth, and young adults based on their individual strengths and needs, and in accordance with their customized Service Plan and permanency goal.(d) The Operation must be Credentialed to provide Tier I: Intellectual or Developmental Disability (IDD)/Autism Spectrum Disorder Treatment Services in accordance with the guidelines and requirements as defined by the Texas Department of Family and Protective Services pursuant to Chapter 40 of the Texas Human Resources Code.</content><note type="source"><p>Source Note: The provisions of this §700.521 adopted to be effective December 22, 2024, 49 TexReg 10389.</p></note></section><section identifier="/us/state/tx/tac/t40/p19/c700/scE/s700.522"><num value="700.522">§700.522</num><heading>What is Tier I: Human Trafficking Victim/Survivor Treatment Services to Support Community Transition Package?</heading><content>(a) A trauma-informed facility, that in addition to providing a child's basic living needs, has a formal treatment program that specializes in providing and coordinating time-limited services to support the custom needs of children, youth, and young adults who have been determined to be a victim/survivor of sex and/or labor trafficking, and require structured and frequent, on-site, clinical intervention require structured and frequent, on-site therapy and clinical intervention, and complex care coordination and case management services to support and manage day-to-day activities.(b) Children, youth, and young adults qualifying for this service may be determined to be a victim/survivor of trafficking based on one or more of the following criteria:(1) As a result of a criminal prosecution or who is currently alleged to be a victim/survivor of trafficking in a pending criminal investigation or prosecution.(2) Identified by the parent or agency that placed the child, youth, or young adult in the operation as a victim/survivor of trafficking; or(3) Determined by the operation to be a victim/survivor of trafficking based on reasonably reliable criteria, including one or more of the following:(A) The child's own disclosure as a victim/survivor of trafficking;(B) The assessment of a counselor or other professional; or(C) Evidence that the child was recruited, harbored, transported, provided to another person, or obtained for the purpose of forced labor or commercial sexual activity.(c) This Service Package is designed to offer temporary, facility-based care and treatment/recovery services for children, youth, and young adults based on their individual strengths and needs, and in accordance with their customized Service Plan and permanency goal.(d) The Operation must be Credentialed to provide Tier I: Human Trafficking Victim/Survivor Treatment Services in accordance with the guidelines and requirements as defined by the Department of Family and Protective Services pursuant to Chapter 40 of the Texas Human Resources Code.</content><note type="source"><p>Source Note: The provisions of this §700.522 adopted to be effective December 22, 2024, 49 TexReg 10389.</p></note></section><section identifier="/us/state/tx/tac/t40/p19/c700/scE/s700.523"><num value="700.523">§700.523</num><heading>What is Tier II: Sexual Aggression/Sex Offender Services to Support Stabilization Package?</heading><content>(a) A highly structured, trauma-informed facility that, in addition to providing a child's basic living needs, has an intensive treatment program that specializes in providing and coordinating time-limited services to support the emotional stability, well-being, and therapeutic needs of children, youth, and young adults, for whom other forms of specialized treatment have been tried and rendered unsuccessful, and/or treatment in a less-restrictive setting such as in a Foster Family Home or General Residential Operation- Tier I facility is not safe and appropriate based on individualized need(s) and absent the Tier II intervention, the child, youth, or young adult's well-being, or that of others they interact with, may be at risk and who are experiencing challenges with a lack of impulse control, and may present with one or more of the following:(1) Ongoing, socially, and developmentally inappropriate displays of sexualized behavior; or(2) Sexually aggressive behavior; or(3) DSM diagnosis of a sexual behavior disorder; or(4) Adjudication as a sex offender.(b) In addition to the criteria listed above, children, youth, and young adults requiring Tier II: Sexual Aggression/Sexual Offender Services to Support Stabilization Service Package may present with a DSM-5 diagnosis for an emotional, conduct, or behavioral disorder, and two or more of the following (which, if applicable, the General Residential Operation offering this Service Package must be equipped to treat based on the custom needs of the child, youth, or young adult):(1) Major self-injurious actions, including a suicide attempt within the last 12 months;(2) Difficulties that present a significant risk of harm to others, including frequent or unpredictable physical aggression; or(3) An additional DSM- diagnosis of substance-related and/or addictive disorder with severe impairment.(c) This Service Package is designed to offer temporary, facility-based care, for children, youth, and young adults based on their individual strengths and needs, with the overall goal of achieving emotional and behavioral stability to the level that successful transition to a less restrictive placement offering treatment and recovery services can be achieved.(d) The Operation must be Credentialed to provide Tier II: Sexual Aggression/Sex Offender Services in accordance with the guidelines and requirements as defined by the Department of Family and Protective Services pursuant to Chapter 40 of the Texas Human Resources Code.</content><note type="source"><p>Source Note: The provisions of this §700.523 adopted to be effective December 22, 2024, 49 TexReg 10389.</p></note></section><section identifier="/us/state/tx/tac/t40/p19/c700/scE/s700.524"><num value="700.524">§700.524</num><heading>What is Tier II: Substance Use Services to Support stabilization Package?</heading><content>(a) A highly structured, trauma-informed facility that, in addition to providing a child's basic living needs, including food, clothing, shelter, education, vocation, transportation, recreation, and extracurricular needs, has an intensive treatment program that specializes in providing and coordinating time-limited services to support the emotional stability, well-being, and therapeutic needs of children, youth, and young adults, for whom other forms of specialized substance use and addictive disorder treatment have been tried and rendered unsuccessful, and/or treatment in a less-restrictive setting such as a Foster Family Home or General Residential Operation- Tier I facility is not safe and appropriate based on individualized needs and absent the Tier II intervention, the child, youth, or young adult's well-being, or that of others they interact with, may be at risk and who are experiencing challenges with a lack of impulse control, and have or are pending a DSM diagnosis for a substance related and/or addictive disorder with severe impairment.(b) In addition to the DSM diagnoses for a substance related and/or addictive disorder with severe impairment, the child, youth, or young adult may demonstrate one of the following:(1) Major self-injurious actions, including a suicide attempt within the last 12 months; or(2) Difficulties that present a significant risk of harm to others, including frequent or unpredictable physical aggression.(c) This Service Package is designed to offer temporary, facility-based care, for children, youth, and young adults based on their individual strengths and needs, with the overall goal of achieving emotional and behavioral stability to the level that successful transition to a less restrictive placement offering treatment and recovery services can be achieved.(d) The Operation must be Credentialed to provide Tier II: Substance Use Services in accordance with the guidelines and requirements as defined by the Department of Family and Protective Services pursuant to Chapter 40 of the Texas Human Resources Code.</content><note type="source"><p>Source Note: The provisions of this §700.524 adopted to be effective December 22, 2024, 49 TexReg 10389.</p></note></section><section identifier="/us/state/tx/tac/t40/p19/c700/scE/s700.525"><num value="700.525">§700.525</num><heading>What is Tier II: Aggression/Defiance Disorder Services to Support Stabilization Package?</heading><content>(a) A highly structured, trauma-informed facility that, in addition to providing a child's basic living needs, has an intensive treatment program that specializes in providing and coordinating time-limited services to support the emotional stability, well-being, and therapeutic needs of children, youth, and young adults, for whom other forms of specialized treatment have been tried and rendered unsuccessful, and/or treatment in a less-restrictive setting such as in a Foster Family Home or General Residential Operation- Tier I facility is not safe and appropriate based on individualized needs and absent the Tier II intervention, the child, youth, or young adult's well-being, or that of others they interact with, may be at risk, and who are experiencing challenges with a lack of impulse control, and may present with or are pending a DSM diagnosis of Oppositional Defiant Disorder or other Conduct Disorder, and may present with two or more of the following:(1) Severe and chronic challenges in school, with peers, and/or in other social settings; or(2) Severe and chronic challenges with authority and following rules (beyond what would be considered age-appropriate behavior); or(3) Recurring delinquent behaviors which may have resulted in juvenile justice or law enforcement involvement; or(4) Major self-injurious actions, including a suicide attempt within the last 12 months; or(5) Difficulties that present a significant risk of harm to others, including frequent or unpredictable violence or physical aggression; or(6) An additional DSM diagnosis of substance-related and/or addictive disorder with severe impairment.(b) This Service Package is designed to offer temporary, facility-based care, for children, youth, and young adults based on their individual strengths and needs, with the overall goal of achieving emotional and behavioral stability to the level that successful transition to a less restrictive placement offering treatment and recovery services can be achieved.(c) The Operation must be Credentialed to provide Tier II: Aggression/Defiance Disorder Services in accordance with the guidelines and requirements as defined by the Texas Department of Family and Protective Services pursuant to Chapter 40 of the Texas Human Resources Code.</content><note type="source"><p>Source Note: The provisions of this §700.525 adopted to be effective December 22, 2024, 49 TexReg 10389.</p></note></section><section identifier="/us/state/tx/tac/t40/p19/c700/scE/s700.526"><num value="700.526">§700.526</num><heading>What is Tier II: Complex Mental Health Services to Support Stabilization Package?</heading><content>(a) A highly structured, trauma-informed facility that, in addition to providing a child's basic living needs, has an intensive treatment program that specializes in providing and coordinating time-limited services to support the emotional stability, well-being, and therapeutic needs of children, youth, and young adults, for whom other forms of specialized treatment have been tried and rendered unsuccessful, and/or treatment in a less-restrictive setting such as a Foster Family Home or General Residential Operation- Tier I facility is not safe and appropriate based on individualized needs and absent the Tier II intervention, the child, youth, or young adult's well-being, or that of others they interact with, may be at risk, and who are experiencing challenges with a lack of impulse control, and present with or are pending multiple, co-occurring DSM diagnoses for emotional, behavioral, neurological, and/or developmental disorder(s).(b) In addition to the co-occurring DSM diagnoses, the child, youth, or young adult may demonstrate two or more of the following:(1) Major self-injurious actions, including a suicide attempt within the last 12 months; or(2) Difficulties that present a significant risk of harm to others, including frequent or unpredictable physical aggression; or(3) An additional DSM diagnosis of substance-related and/or addictive disorder with severe impairment; and(4) If one of the co-occurring DSM diagnoses is for Intellectual or Developmental Disability or Autism Spectrum Disorder, the child's behavior is characterized by prominent, severe deficits and pervasive impairment in one or more of the following areas (of development if diagnosis is Autism Spectrum Disorder):(A) Conceptual, social, and practical adaptive skills to include daily living and self-care;(B) Communication, cognition, or expressions of affect;(C) Self-care activities or participation in social activities;(D) Responding appropriately to an emergency; or(E) Multiple physical disabilities, including sensory impairments.(c) This Service Package is designed to offer temporary, facility-based care, for children, youth, and young adults based on their individual strengths and needs, with the overall goal of achieving emotional and behavioral stability to the level that successful transition to a less restrictive placement offering treatment and recovery services can be achieved.(d) The Operation must be Credentialed to provide Tier II: Complex Mental Health Services in accordance with the guidelines and requirements as defined by the Department of Family and Protective Services pursuant to Chapter 40 of the Texas Human Resources Code.</content><note type="source"><p>Source Note: The provisions of this §700.526 adopted to be effective December 22, 2024, 49 TexReg 10389.</p></note></section><section identifier="/us/state/tx/tac/t40/p19/c700/scE/s700.527"><num value="700.527">§700.527</num><heading>What is Tier II: Complex Medical Services to Support Stabilization Package?</heading><content>(a) A highly structured, trauma-informed facility that, in addition to providing a child's basic living needs, has an intensive treatment program that specializes in providing a holistic and comprehensive array of medical and behavioral health services and therapeutic supports for children, youth, and young adults that may present with a complex medical diagnosis that is defined as either one or more diagnoses that affect multiple organ systems, or one long-term health condition that results in functional limitations, high health care needs or utilization, and often the need for medical technology, and that may have a dual DSM diagnosis for an emotional, behavioral, neurological, and/or developmental disorder(s), that may include one or more of the following:(1) Major self-injurious actions, including a suicide attempt within the last 12 months; or(2) Difficulties that present a significant risk of harm to others, including frequent or unpredictable physical aggression; and(3) If the one of the DSM diagnoses is for Intellectual or Developmental Disability or Autism Spectrum Disorder, the child's behavior is characterized by prominent, severe deficits and pervasive impairment in one or more of the following areas (of development if diagnosis is Autism Spectrum Disorder):(A) Conceptual, social, and practical adaptive skills to include daily living and self-care;(B) Communication, cognition, or expressions of affect;(C) Self-care activities or participation in social activities;(D) Responding appropriately to an emergency; or(E) Multiple physical disabilities, including sensory impairments.(b) In addition to the DSM diagnosis, children, youth, and young adults requiring the Tier II: Complex Medical Services to Support Stabilization may present with a medical diagnosis that requires the use of mechanical supports or services of others because of life threatening conditions, including:(1) The inability to maintain an open airway without assistance;(2) The inability to be fed except through a feeding tube, gastric tube, or a parenteral route;(3) The use of sterile techniques or specialized procedures to promote healing, prevent infection, prevent cross-infection or contamination, or prevent tissue breakdown; or(4) Multiple disabilities including sensory impairments.(c) To qualify for Tier II: Complex Medical Services to Support Stabilization, the child must have a medical diagnosis as determined by a Physician, and have a qualifying DSM diagnosis, and present with needs that cannot be met in a less-restrictive setting such as a Foster Family Home or General Residential Operation- Tier I facility because it is not safe and appropriate based on individualized needs.(d) This Service Package is designed to offer temporary, facility-based care, for children, youth, and young adults based on their individual strengths and needs, with the overall goal of achieving medical, emotional, and behavioral stability to the level that successful transition to a less restrictive placement offering treatment and recovery services can be achieved.(e) The Operation must be Credentialed to provide Tier II: Complex Medical Services in accordance with the guidelines and requirements as defined by the Department of Family and Protective Services pursuant to Chapter 40 of the Texas Human Resources Code.</content><note type="source"><p>Source Note: The provisions of this §700.527 adopted to be effective December 22, 2024, 49 TexReg 10389.</p></note></section><section identifier="/us/state/tx/tac/t40/p19/c700/scE/s700.528"><num value="700.528">§700.528</num><heading>What is Tier II: Human Trafficking Victim/Survivor Services to Support Stabilization Package?</heading><content>(a) A highly structured, trauma-informed facility that, in addition to providing a child's basic living needs, has an intensive treatment program that specializes in providing and coordinating time-limited services to support the emotional stability, well-being, and therapeutic needs of children, youth, and young adults who are experiencing challenges with a lack of impulse control, and has been determined to be a victim/survivor of sex and/or labor trafficking, and has or is pending a DSM diagnosis for an emotional, behavioral, neurological, and/or developmental disorder.(b) Children, youth, and young adults qualifying for this service may be determined to be a victim/survivor of trafficking based on one or more of the following criteria:(1) As a result of a criminal prosecution or who is currently alleged to be a victim/survivor of trafficking in a pending criminal investigation or prosecution;(2) Identified by the parent or agency that placed the child, youth, or young adult in the operation as a victim/survivor of trafficking; or(3) Determined by the operation to be a victim/survivor of trafficking based on reasonably reliable criteria, including one or more of the following:(A) The child's own disclosure as a victim/survivor of trafficking;(B) The assessment of a counselor or other professional; or(C) Evidence that the child was recruited, harbored, transported, provided to another person, or obtained for the purpose of forced labor or commercial sexual activity.(c) In addition to the determination of status as a victim/survivor of trafficking, and having a qualifying DSM diagnosis, the child, youth, or young adult, for whom other forms of specialized treatment have been tried and rendered unsuccessful, and/or treatment in a less-restrictive setting such as a Foster Family Home or General Residential Operation- Tier I facility is not safe and appropriate based on individualized needs and absent the Tier II intervention, the child, youth, or young adult's well-being, or that of others they interact with, may be at risk, and may demonstrate two or more of the following:(1) Severe and chronic challenges in school, with peers, and/or in other social settings; or(2) Severe and chronic challenges with authority and following rules (beyond what would be considered age-appropriate behavior); or(3) Recurring delinquent behaviors which may have resulted in juvenile justice or law enforcement involvement; or(4) Major self-injurious actions, including a suicide attempt within the last 12 months; or(5) Difficulties that present a significant risk of harm to others, including frequent or unpredictable violence or physical aggression; or(6) Substance-related issues or a pending diagnosis for an addictive disorder; or(7) If DSM diagnosis is for an Intellectual or Developmental Disability or Autism Spectrum Disorder, the child's behavior is characterized by prominent, severe deficits and pervasive impairment in one or more of the following areas (of development if diagnosis is Autism Spectrum Disorder):(A) Conceptual, social, and practical adaptive skills to include daily living and self-care;(B) Communication, cognition, or expressions of affect;(C) Self-care activities or participation in social activities;(D) Responding appropriately to an emergency; or(E) Multiple physical disabilities, including sensory impairments.(d) This Service Package is designed to offer temporary, facility-based care, for children, youth, and young adults based on their individual strengths and needs, with the overall goal of achieving emotional and behavioral stability to the level that successful transition to a less restrictive placement offering treatment and recovery services can be achieved.(e) The Operation must be Credentialed to provide Tier II: Human Trafficking Victim/Survivor Services in accordance with the guidelines and requirements as defined by the Department of Family and Protective Services pursuant to Chapter 40 of the Texas Human Resources Code.</content><note type="source"><p>Source Note: The provisions of this §700.528 adopted to be effective December 22, 2024, 49 TexReg 10389.</p></note></section></subchapter><subchapter identifier="/us/state/tx/tac/t40/p19/c700/scG"><num value="G">SUBCHAPTER G</num><heading>SERVICES FOR FAMILIES</heading><section identifier="/us/state/tx/tac/t40/p19/c700/scG/s700.701"><num value="700.701">§700.701</num><heading>Services to Families</heading><content>(a) Definition. The Department of Family and Protective Services' (DFPS) Child Protective Services (CPS) Division provides family reunification services for families. These services are provided to families and children to:(1) protect the children from abuse and neglect;(2) help the family reduce the risk of abuse and neglect; and(3) make it possible for the children to return home and live there safely after DFPS has removed them and placed them in substitute care as specified in Subchapters K and M of this chapter (relating to Court-Related Services and Substitute-Care Placement Services).(b) When a child has returned home, CPS can provide or arrange for services to:(1) protect the child in the parent's home;(2) reduce the risk of abuse and neglect; and(3) enable the family to function effectively without CPS assistance in the future.</content><note type="source"><p>Source Note: The provisions of this §700.701 adopted to be effective January 15, 1994, 18 TexReg 9200; amended to be effective May 1, 1998, 23 TexReg 3030; amended to be effective March 1, 2007, 32 TexReg 551; amended to be effective September 15, 2021, 46 TexReg 5901.</p></note></section><section identifier="/us/state/tx/tac/t40/p19/c700/scG/s700.703"><num value="700.703">§700.703</num><heading>Family Reunification Services</heading><content>The Department of Family and Protective Services' (DFPS's) Child Protective Services (CPS) Division provides reunification services to families whose children are returning home at the end of their stay in substitute care. It does not include the services that CPS provides to families over the general course of a child's stay in substitute care, even though those services are usually directed towards family reunification. The purpose of the services is to provide support to the family and the child during the child's transition from living in substitute care to living at home.(1) Objectives. The objectives of reunification services are to:(A) ensure a smooth transition by helping the family and child prepare for and adjust to the child's return;(B) help the parents build on family strengths and resources in order to manage the risk of abuse or neglect; and(C) enable the family to ensure the child's safety without CPS assistance after the case is closed.(2) Criteria. All of the criteria specified in subparagraphs (A) - (D) of this paragraph must be satisfied before CPS provides reunification services:(A) at least one child was removed from the home;(B) parents must have a reasonably stable living arrangement;(C) parents are working to complete goals listed on the family service plan; and(D) a target date has been set for the child's transition home or the transition is in process.</content><note type="source"><p>Source Note: The provisions of this §700.703 adopted to be effective May 1, 1998, 23 TexReg 3030; amended to be effective March 1, 2007, 32 TexReg 551; amended to be effective September 15, 2021, 46 TexReg 5901.</p></note></section><section identifier="/us/state/tx/tac/t40/p19/c700/scG/s700.704"><num value="700.704">§700.704</num><heading>Family Service Plan for Family Reunification Services Cases</heading><content>(a) Initial time frame. Within 45 days after the case is opened for family reunification services, as defined in §700.703 of this title (relating to Family Reunification Services), the Department of Family and Protective Services' (DFPS's) Child Protective Services (CPS) Division must establish a detailed written plan of service for the family.(b) Purposes. The purposes of the family service plan for families receiving family reunification services are to:(1) establish a structured, time-limited process for providing services; and(2) ensure that services progress as quickly as possible towards enabling the family to:(A) reduce the risk of abuse or neglect; and(B) function effectively without CPS assistance.(c) Required content. The family service plan must:(1) include the reasons CPS is involved with the family;(2) include an assessment, developed with the family, of family problems and strengths and resources that can be utilized to help the family reduce the risk of child abuse and neglect;(3) identify the goals or changes needed to reduce the level of risk;(4) specify the tasks the family must complete during the effective period of the plan in order to make the needed changes;(5) describe the services CPS must provide to help the family complete those tasks;(6) indicate how CPS will evaluate the family's progress in completing each task and individual goal;(7) indicate the period of time and frequency of the tasks and services; and(8) meet federal and state laws.(d) Parents' participation. The worker must attempt to work with the parents to develop the family service plan. After completing the plan, the worker must ask the parents to sign it, and give them a copy of it. If either parent will not sign the plan, the worker must document on the plan the reasons why a parent will not sign and must give the parent a copy of the plan.(e) Plan review. After completing the initial service plan, the worker must review the plan with the family and update it when significant changes occur within the family. At a minimum, the worker must review and update the plan every six months.</content><note type="source"><p>Source Note: The provisions of this §700.704 adopted to be effective March 1, 2007, 32 TexReg 551; amended to be effective September 15, 2021, 46 TexReg 5901.</p></note></section><section identifier="/us/state/tx/tac/t40/p19/c700/scG/s700.706"><num value="700.706">§700.706</num><heading>Case Closure of Family Reunification Services Cases</heading><content>(a) Case closure. If the court has dismissed the Department of Family and Protective Services as conservator, Child Protective Services (CPS) Division will close the legal case. However, CPS may continue to provide services to the family on a voluntary basis or by initiating court ordered services if the family has not been able to reduce the risk to the child so that the child is safe from abuse and neglect.(b) Transfer from family reunification to substitute care. When possible, CPS staff, together with the family, make the decision to remove the child from the home. CPS staff, together with the family, explore every reasonable alternative for keeping the child safe from abuse and neglect in the home to eliminate the need to remove. When the family is still unable to protect a child from abuse or neglect in the immediate future, CPS staff initiate a removal of the child from the home. This may or may not require new legal intervention depending on the legal status at the time. Substitute care services are then provided to the child and family.</content><note type="source"><p>Source Note: The provisions of this §700.706 adopted to be effective March 1, 2007, 32 TexReg 551; amended to be effective September 15, 2021, 46 TexReg 5901.</p></note></section><section identifier="/us/state/tx/tac/t40/p19/c700/scG/s700.710"><num value="700.710">§700.710</num><heading>Services to Families</heading><content>Family-based safety services are protective services provided to a family whose children are not in the conservatorship of the Department of Family and Protective Services (DFPS). DFPS's Child Protective Services (CPS) Division provides family-based safety services to families and children that need CPS assistance to:(1) protect the children from abuse and neglect;(2) help the family reduce the risk of future abuse or neglect; and(3) prevent the removal of the children from their home.</content><note type="source"><p>Source Note: The provisions of this §700.710 adopted to be effective September 15, 2021, 46 TexReg 5901.</p></note></section><section identifier="/us/state/tx/tac/t40/p19/c700/scG/s700.712"><num value="700.712">§700.712</num><heading>Provision of Family-Based Safety Services</heading><content>(a) CPS provides family-based safety services when:(1) a child in the family is at risk of abuse or neglect;(2) the child cannot remain safely in the home without a Safety Plan, or the family cannot reduce the risk of abuse or neglect and/or ensure immediate child safety without CPS assistance; and(3) CPS can provide or arrange for services to:(A) keep the child safe in the home;(B) reduce the risk of abuse or neglect; and(C) enable the family to function effectively without CPS assistance in the future.(b) CPS also provides family-based safety services when a family whose children are not in the conservatorship of the Department needs ongoing CPS assistance and a judge orders a family to participate in the services.(c) Services may be provided directly or through contracts and may include referrals to community resources.</content><note type="source"><p>Source Note: The provisions of this §700.712 adopted to be effective September 15, 2021, 46 TexReg 5901.</p></note></section><section identifier="/us/state/tx/tac/t40/p19/c700/scG/s700.714"><num value="700.714">§700.714</num><heading>Contacts for Family-Based Safety Services</heading><content>(a) After the family-based safety services case is opened, the caseworker will make an initial face-to-face contact with:(1) each child who will be receiving family-based safety services; and(2) each parent who will be receiving family-based safety services.(b) Each month, or more frequently if appropriate, while a family-based safety services case is open, the caseworker must make on-going face-to-face contact with each child and parent in the household of concern who is included on the most recent family service plan as described in §700.704 of this subchapter (relating to Family Service Plan for Family Reunification Services Cases), and with any PCSP caregiver. Whenever possible, the face-to-face contact with the child will be in the home and in private as appropriate for the child's age and development.</content><note type="source"><p>Source Note: The provisions of this §700.714 adopted to be effective September 15, 2021, 46 TexReg 5901.</p></note></section><section identifier="/us/state/tx/tac/t40/p19/c700/scG/s700.716"><num value="700.716">§700.716</num><heading>Family Service Plan for Family-Based Safety Services Cases</heading><content>(a) After initial contacts are made, as defined in §700.714, (relating to Contacts for Family-Based Safety Services), the Department of Family and Protective Services' (DFPS's) Child Protective Services (CPS) Division must establish a detailed written service plan and initiate any needed services for the family.(b) The purposes of the family service plan for families receiving family-based safety services are to:(1) establish a structured, time-limited process for providing services; and(2) ensure that services progress as quickly as possible towards enabling the family to:(A) reduce the risk of abuse or neglect; and(B) function effectively without CPS assistance.(c) The family service plan must:(1) include a statement of CPS concerns;(2) include family needs and strengths and resources that can be utilized to help the family reduce the risk of abuse and neglect;(3) identify the goals or changes needed to reduce the level of risk;(4) specify the required actions the family must complete during the effective period of the plan in order to make the needed changes;(5) describe the services CPS will provide to help the family complete those actions;(6) indicate how CPS will evaluate the family's progress in completing each required action and goal;(7) indicate the period of time and frequency of the required actions and services; and(8) meet federal and state laws, including the Americans with Disabilities Act.(d) The caseworker must attempt to work with the parents to develop the family service plan. After completing the plan, the caseworker must ask the parents to sign it, and must give them a copy of it. If either parent will not sign the plan, the caseworker must document on the plan the reasons why a parent will not sign and must give the parent a copy of the plan. The caseworker must ensure that each individual signing the plan understands and agrees to their responsibilities, the potential consequences of non-compliance, and the actions or circumstances needed to complete the plan and close the case with no further involvement by CPS.(e) Every month while a family-based safety services case is open, the caseworker must:(1) make reasonable efforts to contact any provider who is providing services as part of the family service plan and obtain information about the family's progress;(2) gather any other information or documentation from collaterals related to child safety or the family service plan;(3) evaluate all information gathered and document:(A) whether family-based safety services are still needed to ensure child safety; and(B) whether any changes are needed to the family service plan, an existing Safety Plan, or an existing parental child safety placement. The caseworker must document reasons for any changes.</content><note type="source"><p>Source Note: The provisions of this §700.716 adopted to be effective September 15, 2021, 46 TexReg 5901.</p></note></section><section identifier="/us/state/tx/tac/t40/p19/c700/scG/s700.718"><num value="700.718">§700.718</num><heading>Lack or Refusal of Family Participation</heading><content>(a) If a parent fails to participate in services for two consecutive months and the Department of Family and Protective Services (DFPS) determines that there are danger indicators impacting child safety, DFPS may seek legal action, such as a court order for removal.(b) If a family is unwilling to participate in a safety plan to address dangers to the child, DFPS will determine if it is necessary to seek removal of the child from the home.</content><note type="source"><p>Source Note: The provisions of this §700.718 adopted to be effective September 15, 2021, 46 TexReg 5901.</p></note></section><section identifier="/us/state/tx/tac/t40/p19/c700/scG/s700.720"><num value="700.720">§700.720</num><heading>Case Closure of Family-Based Safety Services Cases</heading><content>(a) The Department of Family and Protective Services' (DFPS's) Child Protective Services (CPS) Division closes family-based safety services cases when:(1) CPS determines after the family was referred that the family does not meet the criteria for family-based safety services.(2) CPS services are no longer needed because the family:(A) has reduced the risk to the child so that the child is safe from abuse and neglect and the family appears capable of managing the remaining risk without outside assistance; or(B) appears capable of reducing the risk to the child with assistance from sources other than CPS, and the family is willing and able to rely on that assistance.(3) The family has moved out of state or cannot be found after reasonable efforts to locate the family.(4) There is not enough evidence of a threat to the child's immediate safety for legal intervention and either:(A) the family refuses to accept further services; or(B) CPS has already offered or provided all available services that:(i) are appropriate to the family's needs; or(ii) the family has requested and is eligible to receive.(5) The child will be residing outside of the home of the parent under a legal agreement or an informal agreement with a relative or other caregiver.(6) At least one child is removed from the home and the court grants DFPS temporary managing conservatorship of the child.(7) The only child or parent receiving services dies.(b) Before submitting the case to the supervisory for case closure, the caseworker must:(1) have a closing staffing with the supervisor; and(2) complete a closing summary that explains the rationale for the closure decision.(c) After closing the case, the caseworker must send a case closure letter to parents and legal guardians who have been receiving family-based safety services. Case closure letters are not required if the child has been removed from the home, the family cannot be located, or the only child died.</content><note type="source"><p>Source Note: The provisions of this §700.720 adopted to be effective September 15, 2021, 46 TexReg 5901.</p></note></section><section identifier="/us/state/tx/tac/t40/p19/c700/scG/s700.722"><num value="700.722">§700.722</num><heading>Case Closure Due to Removal</heading><content>(a) When family-based safety services are provided and the family is still unable to protect a child from abuse or neglect in the immediate future, CPS staff may initiate an emergency or court-ordered removal of the child from the home. Substitute care services are then provided to the child and family.(b) Prior to closing a family-based safety services case due to removal of the child as described in §700.720(a)(6), (relating to Case Closure of Family-Based Safety Services Cases), CPS staff will explore reasonable alternatives for keeping the child safe from abuse and neglect in the home. The child is removed only when there is no other reasonable way to protect the child from abuse or neglect in the immediate future.(c) Whenever possible, CPS staff, together with the family, make the decision to remove the child from the home.</content><note type="source"><p>Source Note: The provisions of this §700.722 adopted to be effective September 15, 2021, 46 TexReg 5901.</p></note></section></subchapter><subchapter identifier="/us/state/tx/tac/t40/p19/c700/scH"><num value="H">SUBCHAPTER H</num><heading>ADOPTION ASSISTANCE PROGRAM</heading><section identifier="/us/state/tx/tac/t40/p19/c700/scH/s700.801"><num value="700.801">§700.801</num><heading>What do certain pronouns, words, and terms in this subchapter mean?</heading><content>(a) The pronouns used in this subchapter have the following meanings:(1) The pronouns "I," "my," "you" and "your" refer to the adoptive parent(s).(2) The pronouns "we," "us," "our" and "DFPS" refer to the Texas Department of Family and Protective Services (DFPS) or any of its divisions or employees, including Child Protective Services (CPS).(b) The words and terms used in this subchapter have the following meanings, unless otherwise specified or the context clearly indicates otherwise:(1) Adoptive parent(s)--The person(s) who commit(s) to adopting a child who is placed for the purpose of adoption by DFPS, an LCPA, or another authorized entity that has managing conservatorship of the child.(2) Adoptive placement--The period of time beginning when DFPS, the LCPA, or another authorized entity places the child with adoptive parents and ending at consummation of the adoption. The child must not be placed for the purpose of adoption until the child is legally free for adoption following termination of parental rights or death of the child's parents. The child must be placed by DFPS, the LCPA, or another authorized entity that has the managing conservatorship of the child. The child must be placed for adoption in accordance with licensing minimum standards established in the state where the LCPA is licensed or certified, including requirements for an approved home study and Title IV-E requirements regarding criminal background checks.(3) Adoptive Placement Agreement--A written agreement between DFPS or a LCPA and the prospective adoptive parent(s) that documents when a child in DFPS conservatorship is placed for the purpose of adoption and defines the duties of the parties from that date until the adoption is consummated.(4) AFDC eligible--A child qualified for aid under the Texas State IV-A Plan (as in effect on July 16, 1996), with the exception that the child's maximum resource limit is $10,000. Requirements include that the child must live with a parent or specified relative and be deprived of parental support. Parental deprivation exists if one of the child's parents is dead, absent from the home, or has a mental or physical incapacity that prevents the parent from supporting or caring for the child, or principal wage earner parent is unemployed.(5) Adoption Assistance Agreement--The written contract for adoption assistance that is legally binding because both parties have signed it agreeing to all terms and conditions.(6) Applicable child--A child who meets the requirements described in §700.825 of this title (relating to Who is considered an applicable child?).(7) Authorized entity--Any entity, such as another public agency or Tribe, with whom DFPS has a Title IV-E agreement, which permits the authorized entity to receive federal funding participation under Title IV-E of the federal Social Security Act.(8) Child with special needs--A child who meets the definition described in §700.804 of this title (relating to Who is a child with special needs?).(9) Complete application--All the forms and documents that must be filled out and received by DFPS to process a request for adoption assistance and to determine a child's eligibility.(10) Deferred agreement--The legally binding, written contract to provide adoption assistance in the future if the need develops. A deferred agreement is used when the child is eligible for adoption assistance and you are able to meet the child's current needs, but you may be unable to meet the child's needs in the future if circumstances change.(11) Elementary or secondary student--A child who is:(A) enrolled or in the process of enrolling in an institution which provides elementary or secondary education in accordance with Texas law or the law of the state in which the child resides;(B) instructed in elementary or secondary education at home in accordance with Texas law or the law of the state in which the child resides;(C) in an independent study elementary or secondary education program, administered by a school or school district, in accordance with Texas law or the law of the state in which the child resides; or(D) incapable of attending school on a full-time basis due to the medical condition of the child, which incapability is supported by regularly updated information.(12) Extended adoption assistance benefits--Adoption assistance benefits available for certain children who qualify under §700.851 of this title (relating to How can my child qualify for extended adoption assistance benefits?), which are payable after a child's 18th birthday through the last day of the month in which the child attains the age of 21.(13) Licensed child-placing agency (LCPA)--An entity other than DFPS that is licensed or certified by the State of Texas or another state to place children for adoption.(14) Nonrecurring expenses--A type of adoption assistance benefits that are one-time expenses directly related to the completion of the adoption process. Also see §700.850 of this title (relating to How do I get reimbursement of nonrecurring expenses?).(15) Public child welfare agency--The entity charged by a state's government with responsibility for child welfare activities in the state, including responsibility for investigating reports of abuse or neglect of a child, or administration of the state's programs under Title IV-B or IV-E of the Social Security Act. The term also includes an Indian Tribe or Tribal Organization directly administering a Title IV-E program.(16) Title IV-E--The federal program for adoption assistance established under Title IV-E of the Social Security Act, 42 U.S.C. §673.</content><note type="source"><p>Source Note: The provisions of this §700.801 adopted to be effective September 1, 2007, 32 TexReg 5388; amended to be effective January 1, 2009, 33 TexReg 9270; amended to be effective March 1, 2010, 35 TexReg 875.</p></note></section><section identifier="/us/state/tx/tac/t40/p19/c700/scH/s700.802"><num value="700.802">§700.802</num><heading>What is adoption assistance?</heading><content>(a) Adoption assistance is a program designed to facilitate the adoption of children with special needs.(b) The three types of adoption assistance benefits that may be provided under the program are:(1) Medicaid health coverage for the child;(2) monthly payments to assist in meeting the child's needs; and(3) reimbursement of nonrecurring expenses.(c) If you adopt a child with special needs from DFPS conservatorship and meet the other eligibility criteria set forth in this division, you will be eligible to receive all three types of adoption assistance benefits on behalf of your child.(d) If you adopt a child with special needs who is not in the conservatorship of DFPS on the day immediately preceding the date of adoption, and you reside in Texas, you may be entitled to receive one or more of the three types of adoption assistance benefits, depending upon whether some or all of the eligibility criteria for receipt of Title IV-E adoption assistance benefits are satisfied, as described in Division 2 of this subchapter (relating to Title IV-E Eligibility Requirements) and as long as the criteria specified in subsection (b) of §700.803 of this title (relating to What are the eligibility criteria for receipt of adoption assistance for children adopted from the conservatorship of DFPS?) are satisfied.(e) If you adopt a child with special needs who is not in the conservatorship of DFPS on the day immediately preceding the day of adoption and you do not reside in Texas, DFPS is not responsible for providing adoption assistance. You must contact the public child welfare agency in the state where you reside to apply for adoption assistance benefits and obtain additional information on the eligibility requirements that must be satisfied to obtain adoption assistance in that state.</content><note type="source"><p>Source Note: The provisions of this §700.802 adopted to be effective July 12, 2001, 26 TexReg 5061; amended to be effective September 1, 2007, 32 TexReg 5388; amended to be effective March 1, 2010, 35 TexReg 875; amended to be effective January 19, 2017, 42 TexReg 84.</p></note></section><section identifier="/us/state/tx/tac/t40/p19/c700/scH/s700.803"><num value="700.803">§700.803</num><heading>What are the eligibility criteria for receipt of adoption assistance for children adopted from the conservatorship of DFPS?</heading><content>(a) To be eligible to receive adoption assistance on behalf of a child who is in DFPS conservatorship on the day immediately prior to date of adoption, the child you adopt must be a child with special needs, as specified in §700.804 of this title (relating to Who is a child with special needs?) and you must meet all of the additional eligibility criteria set forth in this section.(b) You must have an approved adoptive home screening by DFPS or an LCPA in Texas or other state where the LCPA is licensed or certified. If you are verified or otherwise approved to adopt a child by DFPS or an LCPA in Texas, approval of the home screening must comply with Chapter 749, Subchapter S of this title (relating to Adoption Services: Adoptive Parents), including those requirements related to background checks and prohibited criminal and abuse or neglect history incorporated by reference from Chapter 745, Subchapter F of this title (relating to Background Checks). Additional requirements may apply depending upon the state in which you are verified or otherwise approved by an LCPA to adopt a child.(c) You must sign an adoption assistance agreement before the adoption is final, which means you must sign the agreement before the adoption is legally consummated. Exceptions can be made to this requirement only in certain circumstances, as described in §700.881 of this title (relating to Can my child still get benefits if I did not sign an adoption assistance agreement before the adoption?).(d) Notwithstanding any other provision of this subchapter, an applicable child who meets the definition of special needs in §700.804 of this title is not eligible for adoption assistance if the child was not a U.S. citizen or resident prior to the adoption and the child was adopted outside the United States or brought into the United States for the purpose of adoption.</content><note type="source"><p>Source Note: The provisions of this §700.803 adopted to be effective July 12, 2001, 26 TexReg 5061; amended to be effective September 1, 2007, 32 TexReg 5388; amended to be effective March 1, 2010, 35 TexReg 875.</p></note></section><section identifier="/us/state/tx/tac/t40/p19/c700/scH/s700.804"><num value="700.804">§700.804</num><heading>Who is a child with special needs?</heading><content>A child with special needs is one who meets all of the criteria in this section:(1) At the time the adoptive placement agreement is signed, the child is less than 18 years old and meets at least one of the following conditions:(A) Except as provided in §700.863 of this title (relating to Does a child remain eligible for benefits in a subsequent adoption?) and §700.883 of this title (relating to Can I still get adoption assistance benefits if I assume legal responsibility of a child in DFPS conservatorship before the adoption is finalized?), the child was in the managing conservatorship of DFPS or an authorized entity from the time of adoptive placement until the consummation of the adoption, and:(i) the child is at least six years old;(ii) the child is at least two years old and a member of a racial or ethnic group that exits foster care at a slower pace than other racial or ethnic groups;(iii) the child is being adopted with a sibling or to join a sibling who has been adopted by the parents or for whom the parents already have permanent managing conservatorship or an equivalent arrangement in another state; or(iv) the child has a verifiable physical, mental, or emotional disabling condition, as established by an appropriately qualified professional through a diagnosis that addresses:(I) what the condition is; and(II) that the condition is disabling; or(B) The child has been determined by the Social Security Administration to meet all the medical or disability requirements with respect to eligibility for Supplemental Security Income (SSI) benefits;(2) The state has determined that the child cannot or should not be returned to the home of his parents; and(3) A reasonable, but unsuccessful, effort was made to find an adoptive placement without providing adoption assistance, unless doing so was not in the child's best interests. Proof of such reasonable efforts may include:(A) documentation that the child was registered on an adoption registry exchange for more than 60 days;(B) documentation of any ongoing effort, whether through child welfare entities, government or private organizations, to locate an adoptive family; or(C) the fact that one or more adoptive placements did not result in an adoption.</content><note type="source"><p>Source Note: The provisions of this §700.804 adopted to be effective July 12, 2001, 26 TexReg 5061; amended to be effective September 1, 2007, 32 TexReg 5388; amended to be effective March 1, 2010, 35 TexReg 875; amended to be effective January 19, 2017, 42 TexReg 84.</p></note></section><section identifier="/us/state/tx/tac/t40/p19/c700/scH/s700.806"><num value="700.806">§700.806</num><heading>What is enhanced adoption assistance?</heading><content>(a) Enhanced adoption assistance is a monthly adoption assistance payment amount that may exceed the maximum monthly payment ceiling specified in §700.844(d) of this title (relating to How are monthly payment amounts determined?) that is available only with respect to a child who meets the criteria specified in §700.807 of this title (relating to Who is eligible to receive enhanced adoption assistance?).(b) The maximum monthly payment amount that can be paid under an adoption assistance agreement on behalf of a child who qualifies for enhanced adoption assistance is based on the foster care rate in effect on the date the adoption assistance agreement is signed and is:(1) the minimum amount required to be paid to a foster parent for a child assigned the same service level as the child who is the subject of the adoption assistance agreement (whether an authorized current service level or one in effect prior to placement as described in §700.807(2) of this title); and(2) does not include any amount that a child-placing agency is entitled to retain under the foster care rates.</content><note type="source"><p>Source Note: The provisions of this §700.806 adopted to be effective January 1, 2009, 33 TexReg 9270.</p></note></section><section identifier="/us/state/tx/tac/t40/p19/c700/scH/s700.807"><num value="700.807">§700.807</num><heading>Who is eligible to receive enhanced adoption assistance?</heading><content>Enhanced adoption assistance is available to an adoptive or prospective adoptive parent who enters into an initial adoption assistance agreement on or after January 1, 2009, for a child with special needs as described in §700.804 of this title (relating to Who is a child with special needs?), who is in an approved adoptive placement, provided the child also meets each of the following criteria immediately prior to the signing of the adoptive placement agreement:(1) The child is in the managing conservatorship of DFPS and all parental rights to the child have been terminated for at least 24 months;(2) The child has an authorized service level of "specialized" or "intense" as defined in Subchapter W of this chapter (relating to Level-of-Care Service System), or, the child had such an authorized service level immediately prior to being placed in a facility or home operated or regulated by another state agency, such as an intermediate care facility for persons with mental retardation and/or related conditions (ICF/MR); a nursing facility, or a community-based waiver services (HCS) residential program;(3) The child is living in:(A) a foster care home or other residential child-care operation that is regulated by the DFPS Child Care Licensing Division and is approved under Licensing minimum standards to provide treatment services as defined in §749.61 of this title (relating to What types of services does Licensing regulate?); or(B) a facility or home operated or regulated by another state agency in this state or in another state that provides comparable treatment services; and(4) The child has not been adopted despite our having made extensive and ongoing local and national adoption recruitment efforts. These efforts must include considering and following-up with families who initially appear able to meet the child's needs and express an interest in adopting the child, and either pursuing or ruling out adoption by these families; and(5) The selected prospective adoptive parent is only willing to adopt the child if enhanced adoption assistance is available.</content><note type="source"><p>Source Note: The provisions of this §700.807 adopted to be effective January 1, 2009, 33 TexReg 9270; amended to be effective March 1, 2010, 35 TexReg 875; amended to be effective March 1, 2011, 36 TexReg 589.</p></note></section><section identifier="/us/state/tx/tac/t40/p19/c700/scH/s700.820"><num value="700.820">§700.820</num><heading>What are the Title IV-E eligibility requirements for reimbursement of nonrecurring expenses?</heading><content>To be eligible for reimbursement of nonrecurring expenses, your child must be a child with special needs and you must sign an adoption assistance agreement with us before the child's adoption is finalized. In addition, benefits are only available to those who meet:(1) the federal law requirements of U.S. citizenship or other immigration status described in §700.824 of this title (relating to What if the child is not a U.S. citizen?); and(2) Title IV-E requirements regarding criminal background checks.</content><note type="source"><p>Source Note: The provisions of this §700.820 adopted to be effective July 12, 2001, 26 TexReg 5061; amended to be effective March 1, 2004, 29 TexReg 1422; amended to be effective September 1, 2007, 32 TexReg 5388; amended to be effective March 1, 2010, 35 TexReg 875.</p></note></section><section identifier="/us/state/tx/tac/t40/p19/c700/scH/s700.821"><num value="700.821">§700.821</num><heading>What are the additional Title IV-E eligibility requirements for Medicaid and monthly assistance payments?</heading><content>(a) In addition to the requirements in §700.820 of this title (relating to What are the Title IV-E eligibility requirements for reimbursement of nonrecurring expenses?), to be eligible for Medicaid and monthly assistance benefits, the child with special needs you adopt must be in an adoptive placement, you must sign an adoption assistance agreement before the adoption is final and the child must meet the requirements in either subsection (b) or (c) of this section, depending upon whether the child is an applicable child, as that term is defined in §700.825 of this title (relating to Who is considered an applicable child?).(b) A child who is not an applicable child must meet one of the following conditions:(1) The child is eligible for Supplemental Security Income (SSI) benefits, as determined by the Social Security Administration (SSA) prior to the finalization of the adoption;(2) We or another public welfare agency has determined that the child met or would have met the eligibility criteria for Title IV-E foster care based on AFDC eligibility, as further described in §700.822 of this title (relating to How do we determine whether the child was AFDC eligible?) and §700.823 of this title (relating to What is necessary for a court order to be considered a removal?);(3) We already determined that the child was eligible for Title IV-E adoption assistance in a prior adoption; or(4) Just before the adoptive placement and immediately prior to termination of the minor parent's parental rights, the child was living with a minor parent in foster care, and eligible to receive Title IV-E foster care payments under 42 U.S.C. §675(4)(B).(c) A child who is an applicable child must meet one of the following conditions:(1) At the time the adoptive placement is made, the child is in the managing conservatorship of a public child welfare agency, an LCPA, or an authorized entity pursuant to an involuntary removal as provided in §700.823 of this title (relating to What is necessary for a court order to be considered a removal?);(2) The child has been determined by the SSA to meet all the medical or disability requirements with respect to eligibility for SSI benefits;(3) We already determined that the child was eligible for Title IV-E adoption assistance in a prior adoption; or(4) Just before the adoptive placement and immediately prior to termination of the minor parent's parental rights, the child was living with a minor parent who was in foster care as a result of a court-ordered removal as described in §700.823 of this title.</content><note type="source"><p>Source Note: The provisions of this §700.821 adopted to be effective July 12, 2001, 26 TexReg 5061; amended to be effective March 1, 2004, 29 TexReg 1422; amended to be effective September 1, 2007, 32 TexReg 5388; amended to be effective March 1, 2010, 35 TexReg 875; amended to be effective January 19, 2017, 42 TexReg 84.</p></note></section><section identifier="/us/state/tx/tac/t40/p19/c700/scH/s700.822"><num value="700.822">§700.822</num><heading>How do we determine whether the child was AFDC eligible?</heading><content>To determine whether the child was AFDC eligible, we must consider the detailed circumstances of the home of the parent or relative from which the court ordered the child to be removed. If the child was no longer living in the home when the court ordered removal:(1) the child must have been living there at some point during the six months before the court removal proceedings began; and(2) we must determine that the child would have been eligible for AFDC assistance had the child still been living in that home during the month the court proceedings began.</content><note type="source"><p>Source Note: The provisions of this §700.822 adopted to be effective July 12, 2001, 26 TexReg 5061; amended to be effective September 1, 2007, 32 TexReg 5388.</p></note></section><section identifier="/us/state/tx/tac/t40/p19/c700/scH/s700.823"><num value="700.823">§700.823</num><heading>What is necessary for a court order to be considered a removal?</heading><content>(a) The first order issued by the court in response to the petition to remove the child from the home must contain a judicial finding to the effect that it is contrary to the child's welfare, or not in the child's best interest, to remain in the home.(b) If the child leaves the home under a voluntary arrangement, the petition to remove the child from that home must be filed before six months have passed and the first court order issued in response must contain the required judicial finding stated in subsection (a) of this section.(c) If a court order only acknowledges and approves the voluntary relinquishment of a child, it is not a judicial removal and does not meet the requirements for Title IV-E adoption assistance eligibility.</content><note type="source"><p>Source Note: The provisions of this §700.823 adopted to be effective July 12, 2001, 26 TexReg 5061; amended to be effective May 1, 2002, 27 TexReg 2837; amended to be effective September 1, 2007, 32 TexReg 5388.</p></note></section><section identifier="/us/state/tx/tac/t40/p19/c700/scH/s700.824"><num value="700.824">§700.824</num><heading>What if the child is not a U.S. citizen?</heading><content>(a) If the child is not a U.S. citizen, then the child or the prospective adoptive parent must meet one of the following conditions before the adoption assistance agreement is signed in order to be eligible for Title IV-E assistance:(1) the child is a qualified alien who entered the U.S. prior to August 22, 1996, or has been a qualified alien for at least five years;(2) the child is a refugee or asylee, as defined in 8 U.S.C. §1613(b);(3) the child meets the criteria of 8 U.S.C. §1613(b) or is a trafficking victim or a derivative beneficiary of such a victim; or(4) if the child is a qualified alien but does not meet the requirements listed in paragraphs (1) - (3) of this subsection, the adoptive parent is a U.S. citizen or qualified alien.(b) For purposes of Title IV-E eligibility, the term "qualified alien" is defined in 8 U.S.C. §1641(b).(c) The child's citizenship or immigration status must be verified in accordance with federal law. If you are relying on the exception in subsection (a)(4) of this section, your citizenship or immigration status must also be verified in accordance with federal law.</content><note type="source"><p>Source Note: The provisions of this §700.824 adopted to be effective July 12, 2001, 26 TexReg 5061; amended to be effective March 1, 2010, 35 TexReg 875.</p></note></section><section identifier="/us/state/tx/tac/t40/p19/c700/scH/s700.825"><num value="700.825">§700.825</num><heading>Who is considered an applicable child?</heading><content>(a) Subject to exceptions in subsections (b) and (c) of this section, an "applicable child" is a child for whom an adoption assistance agreement is entered into during the federal fiscal year listed in the figure in this subsection and who will have attained the age listed in the same figure in this subsection prior to the end of that federal fiscal year, as follows:Attached Graphic(b) The child meets the "duration in care" exception because the child:(1) has been in the conservatorship of DFPS for at least 60 consecutive months;(2) is considered a child with special needs under §700.804 of this title (relating to Who is a child with special needs?); and(c) The child meets the "member of a sibling group" exception because the child:(1) is the sibling of a child who meets the definition of "applicable child" in subsection (a) of this section or the duration in care exception in subsection (b) of this section; and(2) is to be placed in the same adoptive placement as an applicable child who is their sibling.</content><note type="source"><p>Source Note: The provisions of this §700.825 adopted to be effective March 1, 2010, 35 TexReg 875; amended to be effective January 19, 2017, 42 TexReg 84.</p></note></section><section identifier="/us/state/tx/tac/t40/p19/c700/scH/s700.840"><num value="700.840">§700.840</num><heading>What is the application process for adoption assistance?</heading><content>(a) You must file a complete application with the adoption assistance staff in the DFPS office in your area. Some of the information you are asked to provide is unrelated to determining your child's eligibility, but it may be used to discuss and negotiate the amount of monthly payments, as described in §700.844 of this title (relating to How are monthly payment amounts determined?).(b) If we place the child for adoption, we inform you of the adoption assistance program and provide you with the application. We can help you fill out many of the required forms because we have access to the necessary information in our files.(c) If an LCPA or authorized entity places the child, the LCPA or authorized entity must inform you of the adoption assistance program. You may need the LCPA or authorized entity to help you with the application and eligibility documentation. The LCPA or authorized entity can provide information directly to us on your behalf.</content><note type="source"><p>Source Note: The provisions of this §700.840 adopted to be effective July 12, 2001, 26 TexReg 5061; amended to be effective May 1, 2002, 27 TexReg 2837; amended to be effective September 1, 2007, 32 TexReg 5388.</p></note></section><section identifier="/us/state/tx/tac/t40/p19/c700/scH/s700.841"><num value="700.841">§700.841</num><heading>When do I find out if my child is eligible?</heading><content>We send you written notification of our decision within 30 days after we receive your complete application. If you do not receive the notification or you believe your application is not being processed promptly, you should contact the supervisor of the adoption assistance staff in the DFPS office where you filed the application.</content><note type="source"><p>Source Note: The provisions of this §700.841 adopted to be effective July 12, 2001, 26 TexReg 5061; amended to be effective September 1, 2007, 32 TexReg 5388.</p></note></section><section identifier="/us/state/tx/tac/t40/p19/c700/scH/s700.842"><num value="700.842">§700.842</num><heading>What happens if my child is determined eligible?</heading><content>(a) If we determine that the child is eligible for adoption assistance, we send you a proposed adoption assistance agreement that identifies the specific benefits for which your child is eligible. We must receive your signed adoption assistance agreement before you finalize the adoption. Benefits are not available until there is a legally binding agreement.(b) If the child is eligible for benefits other than the reimbursement of nonrecurring expenses, we send you an adoption assistance agreement that may specify a monthly payment amount. If you are not offered the maximum monthly payment amount, as described in §700.844 of this title (relating to How are monthly payment amounts determined?), you can discuss and negotiate the amount with us before you sign and return the proposed adoption assistance agreement.(c) If you and your child do not have any current need for adoption assistance, but reasonably expect to have a need in the future, you can sign a deferred agreement, as described in §700.801(10) of this title (relating to What do certain pronouns, words, and terms in this subchapter mean?).(d) If the child is eligible for reimbursement of nonrecurring expenses, you cannot receive that benefit until after the adoption is finalized, as described in §700.850 of this title (relating to How do I get reimbursement of nonrecurring expenses?).</content><note type="source"><p>Source Note: The provisions of this §700.842 adopted to be effective July 12, 2001, 26 TexReg 5061; amended to be effective May 1, 2002, 27 TexReg 2838; amended to be effective March 1, 2010, 35 TexReg 875.</p></note></section><section identifier="/us/state/tx/tac/t40/p19/c700/scH/s700.843"><num value="700.843">§700.843</num><heading>What happens if my child is determined ineligible?</heading><content>If we determine that the child is not eligible for adoption assistance, we send you written notification explaining the reasons for our decision and informing you of your right to appeal.</content><note type="source"><p>Source Note: The provisions of this §700.843 adopted to be effective July 12, 2001, 26 TexReg 5061.</p></note></section><section identifier="/us/state/tx/tac/t40/p19/c700/scH/s700.844"><num value="700.844">§700.844</num><heading>How are monthly payment amounts determined?</heading><content>(a) The following factors are considered and discussed in negotiating and determining benefits:(1) We evaluate your child's present need for services in relation to your family's income, expenses, circumstances, and plans for the future.(2) Benefits are intended only to assist in meeting your child's needs and your parental responsibilities.(3) Any and all sources of income and support that are specifically designated for the child (such as Retirement, Survivors, Disability Insurance (RSDI) or Veterans Administration (VA) benefits) must be applied toward meeting the child's needs.(4) We do not consider costs associated with your choice to meet the child's needs through private sources when those needs can be met through other publicly funded sources.(5) If the child needs special services not covered by your private insurance or Texas Medicaid, we must determine the actual cost of services available to meet those needs. If actual costs are not available, we determine a reasonable estimate of projected costs.(b) There is a limit to the amount of a monthly payment that you can negotiate. You are informed of the maximum monthly payment amount that you can negotiate at the time of your application for adoption assistance.(c) Whenever you are offered, or are receiving, the maximum monthly payment amount, you cannot request:(1) an increase in your adoption assistance payment amount; or(2) an appeal regarding the payment amount.(d) The maximum monthly payment amount depends upon the child's authorized service level (or level of care) at the beginning of the adoptive placement. The payment ceiling for Basic care is $400 per month; the payment ceiling for Moderate, Specialized, and Intense care is $545 per month.(e) Under the Texas Child-Centered Care (T3C) System, the maximum monthly payment depends on the child's recommended service package at the beginning of the adoptive placement. The payment ceiling for a child who is placed in the T3C Basic Foster Family Support Services is $400 per month; the payment ceiling for a child placed in any other Service Package is $545 per month.</content><note type="source"><p>Source Note: The provisions of this §700.844 adopted to be effective May 1, 2002, 27 TexReg 2838; amended to be effective September 1, 2007, 32 TexReg 5388; amended to be effective December 22, 2024, 49 TexReg 10389.</p></note></section><section identifier="/us/state/tx/tac/t40/p19/c700/scH/s700.845"><num value="700.845">§700.845</num><heading>Can my child get adoption assistance monthly payments in addition to Supplemental Security Income (SSI) benefits?</heading><content>Only the Social Security Administration (SSA) can determine whether your child is eligible for SSI benefits. The SSA considers your family's financial resources in determining whether your child remains eligible for SSI benefits after adoption. If your child does remain eligible, the SSI benefits would be reduced by any amount you receive in adoption assistance monthly payments. If you choose to receive SSI benefits and do not sign an adoption assistance agreement with us before the adoption is final, you will not be eligible for adoption assistance if the SSI benefits stop after the adoption is final.</content><note type="source"><p>Source Note: The provisions of this §700.845 adopted to be effective July 12, 2001, 26 TexReg 5061; amended to be effective September 1, 2007, 32 TexReg 5388; amended to be effective March 1, 2010, 35 TexReg 875.</p></note></section><section identifier="/us/state/tx/tac/t40/p19/c700/scH/s700.846"><num value="700.846">§700.846</num><heading>How is the effective date of the adoption assistance agreement determined?</heading><content>(a) Benefits are not available for any period of time before the effective date of the adoption assistance agreement. The effective date of the agreement cannot be before the month in which we receive your completed application. DFPS may, for good cause, grant retroactive benefits for a period not to exceed 12 months prior to receipt of the completed application if you can demonstrate that:(1) DFPS made an error in determining that the child was not eligible for benefits; or(2) DFPS caused a delay in the activation of benefits.(b) The effective date of the adoption assistance agreement is always the first day of the month. A child cannot receive Medicaid and monetary payments from both the foster care and adoption assistance programs in the same month. If we are making foster care maintenance payments for the child, adoption assistance benefits begin the month after the foster care payments stop.(c) Medicaid and monthly benefits may begin prior to the consummation of the adoption.</content><note type="source"><p>Source Note: The provisions of this §700.846 adopted to be effective July 12, 2001, 26 TexReg 5061; amended to be effective September 1, 2007, 32 TexReg 5388; amended to be effective March 1, 2010, 35 TexReg 875.</p></note></section><section identifier="/us/state/tx/tac/t40/p19/c700/scH/s700.847"><num value="700.847">§700.847</num><heading>When does the adoption assistance agreement end?</heading><content>The adoption assistance agreement you sign is effective through the month in which your child turns 18 years old, unless terminated earlier in accordance with §700.848 of this title (relating to When can the adoption assistance agreement and benefits be terminated before it expires?) or your child remains eligible for benefits pursuant to §700.851 of this title (relating to How can my child qualify for extended adoption assistance benefits?).</content><note type="source"><p>Source Note: The provisions of this §700.847 adopted to be effective July 12, 2001, 26 TexReg 5061; amended to be effective March 1, 2010, 35 TexReg 875.</p></note></section><section identifier="/us/state/tx/tac/t40/p19/c700/scH/s700.848"><num value="700.848">§700.848</num><heading>When can the adoption assistance agreement and benefits be terminated before it expires?</heading><content>(a) The agreement and benefits can be terminated when any of the following occurs:(1) the adoptive placement ends before the adoption is consummated;(2) we discover the child was mistakenly determined eligible for benefits;(3) the child is under the age of 18 years and you are no longer legally responsible for the child's support, such as when your parental rights are terminated;(4) we determine that you are no longer providing any support to the child;(5) the child dies; or(6) you request termination of benefits.(b) If the child is over the age of 18 years and receiving benefits pursuant to §700.851 of this title (relating to How can my child qualify for extended adoption assistance benefits?), the adoption assistance agreement and benefits may be terminated if the child no longer meets the conditions in §700.851(b) of this title.(c) If you receive any monthly payments for a period of time when they could have been terminated, we may require you to repay the total amount or recover the overpayment by deducting amounts from future payments under a repayment plan.</content><note type="source"><p>Source Note: The provisions of this §700.848 adopted to be effective July 12, 2001, 26 TexReg 5061; amended to be effective March 1, 2010, 35 TexReg 875.</p></note></section><section identifier="/us/state/tx/tac/t40/p19/c700/scH/s700.850"><num value="700.850">§700.850</num><heading>How do I get reimbursement of nonrecurring expenses?</heading><content>(a) We must receive your signed adoption assistance agreement before you finalize the adoption. After you finalize the adoption, you can get reimbursement from us for your nonrecurring expenses. These expenses are defined as reasonable and necessary adoption fees, court costs, attorney fees, and "other expenses" that are directly related to the legal adoption of your child.(b) Other expenses include the costs of adoption incurred by you or by someone else who you must reimburse. Examples of these expenses, when necessary to complete the adoption process, include the adoption home study, health and psychological examinations, supervision of the adoptive placement, transportation and reasonable costs of lodging and food for you or your child.(c) We must receive your claim for reimbursement no later than 18 months after the adoption is finalized. A claim for reimbursement received later than 18 months after the adoption is finalized may be referred to the Texas Comptroller of Public Accounts for processing as a miscellaneous claim. If your right to reimbursement is authorized by a DFPS hearing order after the adoption is final, we must receive your claim as soon as possible.(d) You must submit your receipts or other proof of payment, such as cancelled checks, and a certified copy of the Decree of Adoption. You are reimbursed only for expenses actually incurred that are not reimbursable by a third party. For adoption assistance agreements signed prior to August 1, 2012, the maximum amount that you can receive as reimbursement for nonrecurring expenses is $1500 per child. For adoption assistance agreements signed on or after August 1, 2012, the maximum amount that you can receive as reimbursement for nonrecurring expenses is $1200 per child.</content><note type="source"><p>Source Note: The provisions of this §700.850 adopted to be effective July 12, 2001, 26 TexReg 5061; amended to be effective September 1, 2007, 32 TexReg 5388; amended to be effective March 1, 2010, 35 TexReg 875; amended to be effective June 1, 2012, 37 TexReg 3738; amended to be effective January 19, 2017, 42 TexReg 84.</p></note></section><section identifier="/us/state/tx/tac/t40/p19/c700/scH/s700.851"><num value="700.851">§700.851</num><heading>How can my child qualify for extended adoption assistance benefits?</heading><content>(a) In order to qualify for extended adoption assistance benefits:(1) The child must be adoptively placed in your home after the child's 16th birthday and prior to the child's 18th birthday; and(2) You must provide sufficient documentation on a periodic basis as required by the adoption assistance agreement to demonstrate that your child is:(A) regularly attending high school or enrolled in a program leading toward a high school diploma or high school equivalence certificate;(B) regularly attending an institution of higher education or a postsecondary vocational or technical program;(C) actively participating in a program or activity that promotes, or removes barriers to, employment;(D) employed for at least 80 hours per month; or(E) incapable of performing any of the activities listed in subparagraphs (A) - (D) of this paragraph due to a documented medical condition, as further described in subsection (b) of this section.(b) There is a presumption that a child is capable of the activities listed in subsection (a)(2)(A) - (D) of this section. The presumption can be rebutted only if sufficient documentation is provided to verify the medical condition and that the medical condition renders your child incapable of those activities. Such documentation of a medical condition might include a determination of disability from SSA, a determination of mental retardation, or a statement from a medical doctor. In addition, documentation must also verify the activities of daily living your child is rendered incapable of performing as a result of that medical condition.(c) Notwithstanding any other provision of this subchapter, no individual will be eligible for extended adoption assistance prior to October 1, 2010.</content><note type="source"><p>Source Note: The provisions of this §700.851 adopted to be effective March 1, 2010, 35 TexReg 875; amended to be effective January 19, 2017, 42 TexReg 84.</p></note></section><section identifier="/us/state/tx/tac/t40/p19/c700/scH/s700.860"><num value="700.860">§700.860</num><heading>What if my child's or family's circumstances change?</heading><content>(a) You must promptly inform us of the following changes in circumstances regarding your adopted child or your family:(1) any name or address changes;(2) a change in marital status;(3) a change in where the child is living;(4) a change in the child's legal status; and(5) any change(s) that may affect continuing eligibility for benefits, as described in §700.848 of this title (relating to When can the adoption assistance agreement and benefits be terminated before it expires?).(b) If you are not already receiving the maximum monthly payment, you may request an increase when there is a change of circumstances affecting your adopted child's current needs or your family's ability to meet those needs. You must submit a written request for an increase to the local DFPS office that processed your application and specify the change(s) in your child's or family's circumstances. Any request for an increase in monthly payment amount is subject to the requirements and limitations described in §700.844 of this title (relating to How are monthly payment amounts determined?).(c) DFPS may periodically require documentation from you that is sufficient to demonstrate that the child who is the subject of the adoption assistance agreement and who has attained the minimum age for compulsory school attendance in Texas or the child's state of residence is a full-time elementary or secondary student as that term is defined in §700.801(11) of this title (relating to What do certain pronouns, words, and terms in this subchapter mean?). DFPS may require such documentation to include proof sufficient to demonstrate that your child is rendered incapable of being a full-time elementary or secondary student because of a medical condition.</content><note type="source"><p>Source Note: The provisions of this §700.860 adopted to be effective July 12, 2001, 26 TexReg 5061; amended to be effective May 1, 2002, 27 TexReg 2838; amended to be effective September 1, 2007, 32 TexReg 5388; amended to be effective March 1, 2010, 35 TexReg 875.</p></note></section><section identifier="/us/state/tx/tac/t40/p19/c700/scH/s700.861"><num value="700.861">§700.861</num><heading>Will my child receive benefits if I move to, or live in, another state?</heading><content>(a) If you have an adoption assistance agreement with another state that provides Medicaid coverage for your child, we will provide Texas Medicaid after you move here. Only medical assistance benefits covered by the Texas Medicaid program are provided. The state that entered into the adoption assistance agreement with you remains responsible to provide any monetary payments or other services specified in that agreement.(b) If you have an adoption assistance agreement with us and you move to another state, we provide Texas Medicaid coverage only if the state where you live does not agree to cover your child under its state Medicaid program. We remain responsible for any monthly payments specified in your adoption assistance agreement no matter where you live, which is why you must keep us informed of your current address.</content><note type="source"><p>Source Note: The provisions of this §700.861 adopted to be effective July 12, 2001, 26 TexReg 5061; amended to be effective March 1, 2010, 35 TexReg 875.</p></note></section><section identifier="/us/state/tx/tac/t40/p19/c700/scH/s700.862"><num value="700.862">§700.862</num><heading>Why must I recertify my child's eligibility?</heading><content>We require the recertification of your child's eligibility to ensure that you and your child remain eligible for benefits as provided by the agreement. We may periodically send you a recertification form to fill out, sign and return to us within 60 days. Failure to promptly provide us with the required recertification information may result in an overpayment of benefits, which we may require you to repay or which we may deduct from any future benefits to which you are entitled, at our option.</content><note type="source"><p>Source Note: The provisions of this §700.862 adopted to be effective July 12, 2001, 26 TexReg 5061; amended to be effective March 1, 2010, 35 TexReg 875.</p></note></section><section identifier="/us/state/tx/tac/t40/p19/c700/scH/s700.863"><num value="700.863">§700.863</num><heading>Does a child remain eligible for benefits in a subsequent adoption?</heading><content>(a) Yes; if you live in Texas and plan to adopt a child that had been receiving adoption assistance under a signed adoption assistance agreement, that child can remain eligible for adoption assistance benefits even if the child is not in the conservatorship of DFPS from the time of adoptive placement until the consummation of the adoption, if the following conditions are met:(1) the child was receiving adoption assistance from us or as a result of having been determined eligible under Title IV-E by another state's child welfare agency;(2) we determine that the child is a child with special needs, as described in §700.804 of this title (relating to Who is a child with special needs?); and(3) a new adoption assistance agreement is signed with us before you finalize the adoption.(b) A child is not eligible in a subsequent adoption if the child's eligibility to receive adoption assistance benefits from another state was not based upon Title IV-E.</content><note type="source"><p>Source Note: The provisions of this §700.863 adopted to be effective March 1, 2004, 29 TexReg 1422; amended to be effective March 1, 2010, 35 TexReg 875; amended to be effective January 19, 2017, 42 TexReg 84.</p></note></section><section identifier="/us/state/tx/tac/t40/p19/c700/scH/s700.880"><num value="700.880">§700.880</num><heading>What are my rights to appeal a DFPS decision regarding adoption assistance benefits?</heading><content>(a) You have the right to request a hearing whenever adoption assistance benefits are denied, delayed, suspended, reduced, or terminated or when the processing of your application is unreasonably delayed. A hearing is also available as provided in § 700.883 of this title (relating to Can I still get adoption assistance benefits if I assume legal responsibility of a child in DFPS conservatorship before the adoption is finalized?). The hearing, as described in §730.1102 of this title (relating to Definitions), provides you the opportunity to appeal a decision made in a local DFPS office to a higher authority within DFPS.(b) We must receive your written request for a hearing no later than 90 days after our action that you are appealing. At the hearing, you can represent yourself or have another person, including an attorney, represent you.(c) There is no right to appeal our decision to provide you all the benefits available, including the maximum monthly payment allowed, as described in §700.844 of this title (relating to How are monthly payment amounts determined?).(d) You have the right to appeal a denial of enhanced adoption assistance only if the child qualifies as a child with special needs, the child meets all eligibility criteria in §700.807(1) - (3) of this title (relating to Who is eligible to receive enhanced adoption assistance?), and DFPS has confirmed in writing that you are the appropriate prospective adoptive placement for the child.(e) You may not appeal a denial of extended adoption assistance if your child reaches the age of 18 prior to October 1, 2010.</content><note type="source"><p>Source Note: The provisions of this §700.880 adopted to be effective July 12, 2001, 26 TexReg 5061; amended to be effective May 1, 2002, 27 TexReg 2838; amended to be effective September 1, 2007, 32 TexReg 5388; amended to be effective January 1, 2009, 33 TexReg 9270; amended to be effective March 1, 2010, 35 TexReg 875; amended to be effective January 19, 2017, 42 TexReg 84.</p></note></section><section identifier="/us/state/tx/tac/t40/p19/c700/scH/s700.881"><num value="700.881">§700.881</num><heading>Can my child still get benefits if I did not sign an adoption assistance agreement before the adoption?</heading><content>(a) Yes, but only after you request a hearing and show that there is good reason to excuse your failure to have a signed adoption assistance agreement. Some good reasons that provide for a hearing are:(1) We placed your child for adoption but did not inform you of the adoption assistance program before the adoption was final.(2) We or the LCPA, whichever placed the child, knew facts relevant to the child's eligibility for adoption assistance but did not disclose them to you before the adoption.(3) The child's physical, mental, or emotional disabling condition could not be diagnosed before the adoption, but was later diagnosed by an appropriately qualified professional as having existed prior to the consummation of the adoption.(4) We made an error in determining that your child was not eligible before the adoption was final.(5) We denied you assistance because of a means test.(b) In the hearing, you have the burden to prove both:(1) your reason for not having a signed adoption assistance agreement before the adoption; and(2) that your child meets all eligibility requirements.(c) If we agree that your child is eligible and your failure to have a signed adoption assistance agreement should be excused, we can sign an agreed order with you and avoid having a hearing. The hearing officer must approve the agreed order, and you must sign an adoption assistance agreement consistent with its provisions, before you can receive benefits.</content><note type="source"><p>Source Note: The provisions of this §700.881 adopted to be effective July 12, 2001, 26 TexReg 5061; amended to be effective September 1, 2007, 32 TexReg 5388; amended to be effective March 1, 2010, 35 TexReg 875; amended to be effective January 19, 2017, 42 TexReg 84.</p></note></section><section identifier="/us/state/tx/tac/t40/p19/c700/scH/s700.883"><num value="700.883">§700.883</num><heading>Can I still get adoption assistance benefits if I assume legal responsibility of a child in DFPS conservatorship before the adoption is finalized?</heading><content>Generally not. However, in limited circumstances you may qualify for adoption assistance benefits at DFPS's discretion, if you request a fair hearing and the hearing officer finds that the following criteria have been met:(1) You were awarded permanent managing conservatorship of the child;(2) The child was in the managing conservatorship of DFPS on the day immediately prior to the court awarding you permanent managing conservatorship of the child;(3) You have an approved adoptive home study or approved adoption evaluation recommending adoption of the child by you;(4) There is no information regarding your history, including information obtained from a state child abuse and neglect registry check or criminal background check that would make you ineligible to adopt a child who was in the conservatorship of DFPS;(5) There are no other factors that would make you ineligible to adopt a child who was in DFPS conservatorship;(6) The child otherwise would have met the criteria for special needs as described in §700.804 of this title (relating to Who is a child with special needs?) on the day that you assumed legal responsibility of the child from the conservatorship of DFPS; and(7) The intended permanent plan for the child was adoption, and DFPS would have placed the child in your home for adoption if you had not assumed legal responsibility prior to consummation.</content><note type="source"><p>Source Note: The provisions of this §700.883 adopted to be effective January 19, 2017, 42 TexReg 84.</p></note></section><section identifier="/us/state/tx/tac/t40/p19/c700/scH/s700.890"><num value="700.890">§700.890</num><heading>What is the Health Coverage Benefit (HCB) stipend?</heading><content>The Health Coverage Benefit (HCB) is a monthly stipend of $150 designed to assist families with limited financial resources who do not qualify for medical assistance under Human Resources Code, Chapter 32, to obtain health coverage for children adopted from DFPS.</content><note type="source"><p>Source Note: The provisions of this §700.890 adopted to be effective March 1, 2008, 33 TexReg 1358.</p></note></section><section identifier="/us/state/tx/tac/t40/p19/c700/scH/s700.891"><num value="700.891">§700.891</num><heading>Who is eligible for the HCB stipend?</heading><content>To qualify for the health coverage benefit, an adopted child must:(1) Have been in the conservatorship of DFPS at the time of adoptive placement;(2) Be the subject of a final order of adoption entered on or after September 1, 2007;(3) Be under 18 years of age;(4) Not be eligible for medical assistance under Chapter 32 of the Human Resources Code; and(5) Be a member of an adoptive family with a household income less than 300% of the federal poverty level.</content><note type="source"><p>Source Note: The provisions of this §700.891 adopted to be effective March 1, 2008, 33 TexReg 1358.</p></note></section><section identifier="/us/state/tx/tac/t40/p19/c700/scH/s700.892"><num value="700.892">§700.892</num><heading>What documents must an adoptive parent submit to DFPS to establish initial eligibility for the HCB stipend?</heading><content>(a) An adoptive parent must submit:(1) A final adoption order;(2) Proof of income, such as a W-2 form, verification of earnings statement from an employer, or other reliable source;(3) Proof of denial of medical assistance benefits under Chapter 32 of the Human Resources Code; and(4) Proof that the:(A) Child in question currently has health coverage benefits paid for by the adoptive parent, and the amount of the monthly premium; or(B) Adoptive parent has obtained a quote for health coverage benefits that will be obtained for the child in question following receipt of the stipend; and(b) A parent who provides a quote for health care coverage as provided under subsection (a)(4)(B) must provide proof that the parent obtained health care coverage for the child in question within 30 days of the date on which the first HCB stipend payment is issued.</content><note type="source"><p>Source Note: The provisions of this §700.892 adopted to be effective March 1, 2008, 33 TexReg 1358.</p></note></section><section identifier="/us/state/tx/tac/t40/p19/c700/scH/s700.893"><num value="700.893">§700.893</num><heading>When is the HCB stipend paid?</heading><content>(a) The HCB stipend is payable for the first month following receipt of all necessary documents to prove eligibility under §700.892 of this title (relating to What documents must an adoptive parent submit to DFPS to establish initial eligibility for the HCB stipend?). Retroactive benefits are not available for the initial eligibility determination.(b) Continuing eligibility for the monthly HCB stipend must be recertified every 12 months after the initial HCB stipend payment is issued. In order to recertify the child, the parent must provide by the annual recertification date:(1) Proof of current income as required in subsection (a)(2) of §700.892 of this title; and(2) Proof that the adoptive parent maintained health care coverage for the child, as required in subsection (a)(4)(A) of §700.892 of this title.(c) Notwithstanding any provision of this section, if DFPS determines that changes in the parent's circumstances may have rendered the family ineligible for the HCB stipend, including the termination of a child's health care coverage, DFPS may require proof of continued eligibility prior to the recertification required in subsection (b) of this section. The adoptive parent must submit the proof required within 30 days of DFPS's request.(d) Failure to submit documentation for initial eligibility as required by §700.892 of this title, or for continuing eligibility as required by this section, will result in termination of payments.(e) Benefits that have been terminated may be restored upon receipt of the required documentation. Restored benefits may be retroactive for a maximum of 60 days.(f) Any sums paid to a parent for which the parent was ineligible must be repaid to DFPS.</content><note type="source"><p>Source Note: The provisions of this §700.893 adopted to be effective March 1, 2008, 33 TexReg 1358.</p></note></section><section identifier="/us/state/tx/tac/t40/p19/c700/scH/s700.894"><num value="700.894">§700.894</num><heading>Can a child who receives the HCB stipend qualify for the tuition exemption available under the Education Code, §54.211?</heading><content>No. The HCB stipend is not "adoption assistance" and eligibility for this benefit does not confer eligibility for the tuition exemption available under Education Code, §54.211.</content><note type="source"><p>Source Note: The provisions of this §700.894 adopted to be effective March 1, 2008, 33 TexReg 1358.</p></note></section></subchapter><subchapter identifier="/us/state/tx/tac/t40/p19/c700/scI"><num value="I">SUBCHAPTER I</num><heading>PURCHASED PROTECTIVE SERVICES TO PREVENT REMOVAL OR TO REUNIFY FAMILIES</heading><section identifier="/us/state/tx/tac/t40/p19/c700/scI/s700.901"><num value="700.901">§700.901</num><heading>Services Purchased</heading><content>To prevent removal of children and to reunite families, the Texas Department of Protective and Regulatory Services may provide the following services:(1) protective homemaker services;(2) protective day care;(3) community-based treatment services.</content><note type="source"><p>Source Note: The provisions of this §700.901 adopted to be effective October 31, 1984, 9 TexReg 5431; transferred effective September 1, 1992, as published in the Texas Register September 11, 1992, 17 TexReg 6279.</p></note></section><section identifier="/us/state/tx/tac/t40/p19/c700/scI/s700.902"><num value="700.902">§700.902</num><heading>Protective Homemaker Services</heading><content>Protective homemaker services are supervision and care given to children and families in their homes by trained and supervised homemakers. These services may be provided during a crisis or as part of an ongoing plan. Homemaker services may be provided for any length of time during a day.</content><note type="source"><p>Source Note: The provisions of this §700.902 adopted to be effective October 31, 1984, 9 TexReg 5431; transferred effective September 1, 1992, as published in the Texas Register September 11, 1992, 17 TexReg 6279.</p></note></section><section identifier="/us/state/tx/tac/t40/p19/c700/scI/s700.903"><num value="700.903">§700.903</num><heading>Protective Day Care</heading><content>Protective day care is out-of-home care in licensed facilities, under contract with the Texas Department of Protective and Regulatory Services, and is provided to children for less than 24 hours at a time. Protective day care is provided to prevent or remedy child abuse or neglect by ensuring adequate care and supervision of children.</content><note type="source"><p>Source Note: The provisions of this §700.903 adopted to be effective October 31, 1984, 9 TexReg 5431; transferred effective September 1, 1992, as published in the Texas Register September 11, 1992, 17 TexReg 6279.</p></note></section><section identifier="/us/state/tx/tac/t40/p19/c700/scI/s700.904"><num value="700.904">§700.904</num><heading>Community-Based Treatment Services</heading><content>Community-based treatment services include assessment and evaluation; treatment planning; treatment; individual, group, and family therapy; and parenting training for eligible children, parents, or caretakers.</content><note type="source"><p>Source Note: The provisions of this §700.904 adopted to be effective October 31, 1984, 9 TexReg 5431; transferred effective September 1, 1992, as published in the Texas Register September 11, 1992, 17 TexReg 6279.</p></note></section><section identifier="/us/state/tx/tac/t40/p19/c700/scI/s700.905"><num value="700.905">§700.905</num><heading>Reimbursement of Noncontracted Service Providers</heading><content>(a) A parent who is required to complete a Family Service Plan may obtain services from a qualified or licensed noncontracted service provider, and this provider may be reimbursed by DFPS in an amount equal to the average cost for the specific service from DFPS contractors providing the service in the region where the parent resides. Only services where the parent is the direct client of the service provider are eligible for reimbursement. In addition, the rules relating to the reimbursement of noncontracted service providers are intended to further supplement and clarify Texas Family Code §263.1021. This rule is operable to the extent that DFPS has existing resources to implement Texas Family Code §263.1021.(b) Definitions:(1) Case Plan: a Case Plan, as defined by 42 U.S.C. 675, is a written document which meets the requirements 42 U.S.C. 675a. Texas has divided the federal requirement of a Case Plan into two separate plans, the Family Service Plan as defined in Texas Family Code §263.101 and the Child's Plan of Service as defined in Texas Family Code §264.128. For the purpose of this Rule, a Child's Plan (also referred to as a Child's Plan of Service) is not a Family Service Plan.(2) Family Service Plan (also referred to as a "Family Plan of Service," "Family Plan" or "Individual Family Service Plan") is a written plan in which DFPS and a child's parents identify the actions, specific skills, knowledge, steps, and/or responsibilities that are necessary for the parents to achieve the Family Service Plan's goal during this Plan's service period and the assistance to be provided to the parents by the DFPS or other agency toward meeting that goal.(3) Single Source Continuum Contract/Contractor (SSCC) is an entity, as described in Texas Family Code §264.154, with whom DFPS enters into a contract for the provision of the full continuum of substitute care, case management, and reunification services in a Designated Community Area.(4) Licensed Provider is an individual who is required by the State of Texas to be licensed to provide the professional service that the parent is receiving and DFPS is reimbursing.(5) Qualified Provider is an individual who has completed certification or other training programs and has two (2) years of verified full-time experience in the professional service in which they are providing to the parent and DFPS is reimbursing.(6) Noncontracted Service Provider is one who is not under a current contract with DFPS or SSCC for the service that they are seeking reimbursement for. They also cannot be an employee of DFPS or SSCC.(c) SSCCs must adopt similar requirements relating to the manner in which noncontracted service providers are reimbursed that do not conflict with this Section.(d) Only the noncontracted service provider may seek reimbursement from DFPS for services and must not have already been paid by the parent or a third party.(e) To be reimbursed, services may be provided in-person or through an electronic communication platform.(f) DFPS cannot use state funds to reimburse a noncontracted service provider for Medicaid services to a parent who is a Medicaid beneficiary, as described in Texas Human Resources Code Chapter 32. If the parent has Texas Medicaid, the noncontracted service provider must bill Medicaid and not seek reimbursement through DFPS.(g) All the following requirements/conditions must be met in order for a noncontracted service provider to be reimbursed:(1) Must be qualified or licensed provider and comply with the DFPS's guidelines and requirements for reimbursement pursuant to Texas Family Code §263.1021.(2) If a license is required, the service provider must maintain licensure and the license must remain in good standing while providing services that they are seeking reimbursement for.(3) Services obtained from a service provider selected must be designed to achieve the stated goals of the Family Plan of Service for a child in DFPS conservatorship and the noncontracted service provider must certify whether the parent has satisfactorily completed the required service that is being sought for reimbursement.(4) DFPS cannot reimburse for services that occur after DFPS is dismissed from the case, or the parental rights have been terminated (earlier of two). If a Family Service Plan is reinstated, then the service provider would have to seek reimbursement though a new claim under the reinstated Family Service Plan.(5) The noncontracted service provider must be able to receive reimbursement from state or federal funds and not be debarred from receiving these funds.(6) The noncontracted service provider cannot have had a prior DFPS contract to provide the specific service that they are seeking reimbursement for which DFPS terminated for cause.(7) The noncontracted service provider cannot be related by consanguinity or affinity to the parent receiving services.</content><note type="source"><p>Source Note: The provisions of this §700.905 adopted to be effective February 18, 2024, 49 TexReg 879.</p></note></section></subchapter><subchapter identifier="/us/state/tx/tac/t40/p19/c700/scJ"><num value="J">SUBCHAPTER J</num><heading>ASSISTANCE PROGRAMS FOR RELATIVES AND OTHER CAREGIVERS</heading><section identifier="/us/state/tx/tac/t40/p19/c700/scJ/s700.1001"><num value="700.1001">§700.1001</num><heading>What is the Relative and Other Designated Caregiver Program?</heading><content>The Relative and Other Designated Caregiver Program is an array of services designed to promote continuity and stability for children in the conservatorship of DFPS. The program is effective March 1, 2006, and includes support services and limited financial assistance for eligible caregivers who assume caretaking responsibility for children in DFPS conservatorship. Subject to availability of funds and eligibility requirements, caregiver assistance may include case management services, training, referrals to appropriate services and assistance programs, family counseling, child-care services, limited cash assistance, and other support services. Funding for this program is limited to the state and federal funds allocated to DFPS for this program.</content><note type="source"><p>Source Note: The provisions of this §700.1001 adopted to be effective December 1, 2005, 30 TexReg 7486.</p></note></section><section identifier="/us/state/tx/tac/t40/p19/c700/scJ/s700.1002"><num value="700.1002">§700.1002</num><heading>How does the Relative and Other Designated Caregiver Program differ from the Permanency Care Assistance Program?</heading><content>(a) The Permanency Care Assistance Program is a program that provides monthly cash assistance benefits, Medicaid health coverage, and a one-time reimbursement of nonrecurring expenses on behalf of a child to a caregiver who becomes a licensed or verified foster care provider, becomes the managing conservator of a child in DFPS conservatorship, and meets other eligibility criteria as described in Division 2 of this subchapter (relating to Permanency Care Assistance Program).(b) A relative or other designated caregiver is not eligible to receive benefits under the Relative and Designated Caregiver Program on behalf of any child for whom the caregiver is also receiving either foster care reimbursement or permanency care assistance.(c) For more information on who is eligible to receive permanency care assistance, refer to Division 2 of this subchapter.</content><note type="source"><p>Source Note: The provisions of this §700.1002 adopted to be effective March 1, 2010, 35 TexReg 878.</p></note></section><section identifier="/us/state/tx/tac/t40/p19/c700/scJ/s700.1003"><num value="700.1003">§700.1003</num><heading>What are the eligibility requirements for caregiver assistance?</heading><content>(a) The children to be placed must be in the managing conservatorship of DFPS.(b) The caregiver must:(1) be related to the children or have a longstanding and significant relationship with the children or the family of the children;(2) be formally approved by DFPS as a caregiver;(3) sign and abide by a written caregiver assistance agreement, which includes a commitment to:(A) be available as a continuing placement for the children for at least six months;(B) participate in specialized kinship training as recommended and provided by DFPS;(C) comply with DFPS requirements limiting or facilitating contact between the parents and the children;(D) apply for other forms of assistance, including financial and medical, for which the children may be eligible; and(E) comply with any other child specific requirements or limitations; and(4) not be a licensed or verified foster home or group foster home.(c) Caregivers with a family income greater than 300% of poverty, as determined by federal poverty guidelines, are not eligible for cash assistance under §700.1005 of this title (relating to What types of cash assistance are available to eligible caregivers?).(d) If a caregiver enters into a caregiver assistance agreement under this subchapter with the intent to defraud or deceive DFPS, the caregiver may be subject to civil or criminal penalties as provided in §264.7551, Texas Family Code.</content><note type="source"><p>Source Note: The provisions of this §700.1003 adopted to be effective December 1, 2005, 30 TexReg 7486; amended to be effective September 1, 2017, 42 TexReg 4309; amended to be effective August 24, 2020, 45 TexReg 5933.</p></note></section><section identifier="/us/state/tx/tac/t40/p19/c700/scJ/s700.1005"><num value="700.1005">§700.1005</num><heading>What types of cash assistance are available to eligible caregivers?</heading><content>(a) Subject to the availability of funds and based upon the family's need, eligible caregivers may receive two types of cash assistance:(1) a monthly payment, per child in the managing conservatorship of DFPS that has been placed in the caregiver's home, that may not exceed 50% of the DFPS daily Basic Foster Care Rate paid to a foster home in accordance with §355.7103 of Title 1 (relating to Rate-Setting Methodology for 24-Hour Residential Child-Care Reimbursements); and(2) an annual reimbursement of not more than $500 per child for DFPS approved child-related expenses if the caregiver has obtained permanent managing conservatorship of the child.(b) For more information on these types of cash assistance, refer to §700.1007 of this title (relating to How do caregivers receive the monthly cash payment?) and §700.1009 of this title (relating to How do caregivers receive the annual reimbursement?) of this subchapter.(c) DFPS may further clarify in policy specific conditions or criteria caregivers must meet to receive this cash assistance or any other services or benefits in connection with this program, including what costs incurred for essential child care items may be defrayed and what expenditures are appropriate for reimbursement.</content><note type="source"><p>Source Note: The provisions of this §700.1005 adopted to be effective December 1, 2005, 30 TexReg 7486; amended to be effective March 1, 2014, 39 TexReg 1179; amended to be effective September 1, 2017, 42 TexReg 4309.</p></note></section><section identifier="/us/state/tx/tac/t40/p19/c700/scJ/s700.1007"><num value="700.1007">§700.1007</num><heading>How do caregivers receive the monthly cash payment?</heading><content>(a) Caregivers meeting the eligibility requirements specified in §700.1003 of this title (relating to What are the eligibility requirements for caregiver assistance?) are eligible only if:(1) the household income of the caregiver does not exceed 300% of poverty, as determined by federal poverty guidelines;(2) the caregiver continues to comply with the signed caregiver assistance agreement; and(3) the children were placed in the caregiver's home by DFPS.(b) The monthly cash payment must be distributed to a caregiver on behalf of a child in the managing conservatorship of DFPS in the same manner as to a foster parent receiving foster care reimbursement.(c) The monthly cash payment may not exceed 50% of the DFPS daily Basic Foster Care Rate paid to a foster home in accordance with §355.7103 of Title 1 (relating to Rate-Setting Methodology for 24-Hour Residential Child-Care Reimbursements). The amount of the monthly cash payment will be published on the DFPS website, and is paid per child in the managing conservatorship of DFPS who is placed in the home of the eligible caregiver.(d) The monthly cash payment is provided to the caregiver for 12 months, except that DFPS may extend the monthly cash payment for an additional 6 months if DFPS determines good cause exists for the extension. "Good cause" refers to circumstances in which it is in the child's best interest to remain in the home of a caregiver who is receiving monthly cash payments and is generally comprised of actions and steps necessary in order to achieve positive permanency for the child. Good cause may include:(1) the identification, release, or location of a previously absent parent of the child;(2) awaiting the expiration of the timeline for an appeal of an order in a suit affecting the parent-child relationship;(3) the provision of additional time for the caregiver to complete the approval process for adoption of the child;(4) awaiting the approval of a child's placement from another state pursuant the Interstate Compact on the Placement of Children, as provided in Subchapter B, Chapter 162, Texas Family Code;(5) a delayed determination of the child's Indian Child status, or awaiting the approval of the Indian Child's Tribe, pursuant the Indian Child Welfare Act, 25 U.S.C. §1901, et seq.; and(6) any other circumstance surrounding the child or the caregiver that DFPS deems to necessitate the extension.(e) Any one-time integration payment received by a caregiver who qualified for the payment between June 1, 2017, and September 1, 2017, under rules in existence at that time, must be offset against monthly cash payments for which the caregiver qualifies on or after September 1, 2017.</content><note type="source"><p>Source Note: The provisions of this §700.1007 adopted to be effective December 1, 2005, 30 TexReg 7486; amended to be effective September 1, 2017, 42 TexReg 4309.</p></note></section><section identifier="/us/state/tx/tac/t40/p19/c700/scJ/s700.1009"><num value="700.1009">§700.1009</num><heading>How do caregivers receive the annual reimbursement?</heading><content>(a) Caregivers meeting the eligibility requirements specified in §700.1003 of this title (relating to What are the eligibility requirements for caregiver assistance?) are eligible only if:(1) the household income of the caregiver does not exceed 300% of poverty, as determined by federal poverty guidelines;(2) the caregiver is awarded permanent managing conservatorship after September 1, 2017, for children that were previously in the conservatorship of DFPS; and(3) the caregiver continues to comply with the signed caregiver assistance agreement.(b) The annual reimbursement may not exceed $500 per child for DFPS approved child-related expenses.(c) The annual reimbursement applies only to expenses incurred while the child is in the caregiver's care.(d) The caregiver may receive the annual reimbursement until the earlier of:(1) three years following the award of permanent managing conservatorship of the child, or(2) the child's 18th birthday.</content><note type="source"><p>Source Note: The provisions of this §700.1009 adopted to be effective December 1, 2005, 30 TexReg 7486; amended to be effective September 1, 2017, 42 TexReg 4309.</p></note></section><section identifier="/us/state/tx/tac/t40/p19/c700/scJ/s700.1013"><num value="700.1013">§700.1013</num><heading>Who is eligible for child-care services?</heading><content>(a) In this section, the following terms have the following meanings:(1) "Child care services" has the same meaning as "day care."(2) "Day care" means the assessment, care, training, education, custody, treatment, or supervision of a child in DFPS conservatorship by a person other than the child's caregiver for less than 24 hours a day, but at least two hours a day, three or more days a week.(3) Emergency placement that is in the child's best interest" means that despite the exercise of reasonable diligence, compliance with the Department's verification process regarding the availability of community day care resources would interfere with a placement that is in the child's best interest.(b) To the extent funds are available, and in accordance with any priority system established under subsection (e) of this section, DFPS may provide child care services to a caregiver who meets the requirements in §700.1003 of this title (relating to What are the eligibility requirements for caregiver assistance?) if:(1) all appropriate caregivers work outside the home 40 hours per week or more;(2) the caregiver is a resident of Texas;(3) the child is in DFPS' managing conservatorship;(4) the child is 13 years old or younger, or is younger than 18 years old if the child has a developmental delay or a physical disability;(5) the child is not receiving adoption assistance; and(6) the caregiver verifies in writing that the caregiver has attempted to find appropriate day care services for the child through community services, including:(A) Head Start programs;(B) Prekindergarten classes;(C) Early education programs offered in public schools; and(D) Any other available and appropriate resources in the caregiver's community.(c) Day care for caregivers is authorized for the purpose of providing daily supervision:(1) during the caregivers' work hours; or(2) while the caregivers are attending judicial reviews, case conferences, or kinship caregiver training.(d) To the extent funds are available, day care may also be authorized for the following:(1) full-time day care during spring break and summer vacation for children who attend school full-time; and(2) after-school day care.(e) To monitor the spending of funds, a priority system among caregivers will also be established in policy. The priority system will be based upon need, but at a minimum will require:(1) a determination by DFPS that the provision of day care is critical to maintaining the placement of the child with the caregiver; and(2) at least one child placed by DFPS is:(A) under six years of age or over six years of age but in day care during a scheduled break in the public school system; or(B) at least one child placed by DFPS has a developmental delay (including physical, emotional, and cognitive or language) or physical disability.(f) Notwithstanding any other provision of this section, if DFPS determines that requiring the written verification of a caregiver's attempts to find appropriate community day care services would prevent an emergency placement in the child's best interest, DFPS may waive the submission of the written verification of the caregiver's attempts. DFPS is authorized to require the submission of the written verification at any point following the initial authorization of day care services.(g) The Associate Commissioner for Child Protective Services, the Associate Commissioner for Child Protective Investigations, or the Associate Commissioners' designees, may grant a good cause waiver of any of the requirements in subsection (b) of this section if that person determines that:(1) the placement cannot be sustained or is unlikely to be sustained if the caregivers cannot receive day care;(2) there is no reasonable alternative to the provision of day care, such as a change in working hours; and(3) day care services are only authorized in increments that are commensurate with the hours and days the relative caregiver must be outside the home for employment.(h) DFPS pays for day care only in licensed child care centers and registered child care homes that are contracted through the local child care management service agency, unless care is self-arranged and DFPS gives prior approval to pay day care in the arrangement.</content><note type="source"><p>Source Note: The provisions of this §700.1013 adopted to be effective December 1, 2005, 30 TexReg 7486; amended to be effective March 1, 2014, 39 TexReg 1174; amended to be effective January 19, 2017, 42 TexReg 84; amended to be effective February 2, 2021, 46 TexReg 839.</p></note></section><section identifier="/us/state/tx/tac/t40/p19/c700/scJ/s700.1015"><num value="700.1015">§700.1015</num><heading>What rates will DFPS use to pay for child-care services?</heading><content>The rates of child-care assistance will be determined by the established local rates set by Child Care Management Services.</content><note type="source"><p>Source Note: The provisions of this §700.1015 adopted to be effective December 1, 2005, 30 TexReg 7486.</p></note></section><section identifier="/us/state/tx/tac/t40/p19/c700/scJ/s700.1017"><num value="700.1017">§700.1017</num><heading>Who is eligible for support services?</heading><content>To qualify for available support services, a caregiver must meet the eligibility requirements in §700.1003 of this title (relating to What are the eligibility requirements for caregiver assistance?) and be a resident of Texas.</content><note type="source"><p>Source Note: The provisions of this §700.1017 adopted to be effective December 1, 2005, 30 TexReg 7486.</p></note></section><section identifier="/us/state/tx/tac/t40/p19/c700/scJ/s700.1025"><num value="700.1025">§700.1025</num><heading>What is the Permanency Care Assistance Program?</heading><content>(a) The permanency care assistance program provides the following benefits to certain individuals who assume permanent managing conservatorship of a child who was previously in the temporary or permanent managing conservatorship of DFPS, provided that all of the eligibility criteria in this division are satisfied:(1) monthly cash assistance benefits through the last day of the month of the child's 18th birthday;(2) Medicaid coverage on behalf of the child; and(3) a one-time reimbursement of nonrecurring expenses relating to the legal process of becoming the permanent managing conservator of the child, not to exceed $1,200 per child.(b) Extended permanency care assistance is also available for eligible individuals on behalf of certain children over the age of 18 years, as provided under §700.1053 of this title (relating to Who is eligible for extended permanency care assistance?).(c) The permanency care assistance program is effective September 1, 2010, and applies only to persons who enter into a permanency care agreement on or after the effective date of the program.</content><note type="source"><p>Source Note: The provisions of this §700.1025 adopted to be effective March 1, 2010, 35 TexReg 878; amended to be effective January 19, 2017, 42 TexReg 84.</p></note></section><section identifier="/us/state/tx/tac/t40/p19/c700/scJ/s700.1027"><num value="700.1027">§700.1027</num><heading>What definitions apply to this division?</heading><content>The following terms have the following meanings in this division:(1) Deferred permanency care assistance agreement--A type of permanency care assistance agreement that may be entered into when a kinship caregiver meets the eligibility criteria for receipt of permanency care assistance, but does not need any assistance at the time the agreement is signed; a deferred permanency care assistance agreement allows a person to preserve eligibility to receive permanency care assistance in the future, should the need for such assistance arise.(2) Elementary or secondary student--A child who is:(A) enrolled or in the process of enrolling in an institution which provides elementary or secondary education in accordance with Texas law or the law of the state in which the child resides;(B) instructed in elementary or secondary education at home in accordance with Texas law or the law of the state in which the child resides;(C) in an independent study elementary or secondary education program, administered by a school or school district, in accordance with Texas law or the law of the state in which the child resides; or(D) incapable of attending school on a full-time basis due to the medical condition of the child, which incapability is supported by regularly updated information.(3) Extended permanency care assistance--Permanency care assistance benefits that are payable on behalf of an eligible youth after the youth's 18th birthday through the last day of the month in which the youth turns 21, as provided under §700.1053 of this title (relating to Who is eligible for extended permanency care assistance?).(4) Permanency care assistance agreement--A negotiated, written and legally binding agreement that is signed by DFPS and a prospective permanent kinship conservator setting forth the specific terms and conditions of the agreement, including the types and amounts of permanency care assistance benefits that will be provided under the agreement.(5) Permanent kinship conservator--A relative or other individual with a prior longstanding and significant relationship to a child who was in the temporary or permanent managing conservatorship of DFPS immediately prior to permanent managing conservatorship being granted to that person. The term does not include a parent of the child or other person from whom the child was legally removed by DFPS.(6) Prospective permanent kinship conservator--A relative or other individual with a prior longstanding and significant relationship to a child who was in the temporary or permanent managing conservatorship of DFPS who has demonstrated a strong commitment to caring permanently for the child and who applies for or has entered into a permanency care assistance agreement with DFPS, but has not yet been granted permanent managing conservatorship of the child.(7) Successor guardian--A person who:(A) was named as a successor to the permanent kinship conservator in the permanency care assistance agreement or in an amendment to that agreement;(B) is granted legal custody of the child upon the death or incapacitation of the permanent kinship conservator;(C) meets all DFPS standards regarding background checks;(D) signs a new permanency care assistance agreement with DFPS; and(E) receives permanency care assistance for the child.</content><note type="source"><p>Source Note: The provisions of this §700.1027 adopted to be effective March 1, 2010, 35 TexReg 878; amended to be effective January 19, 2017, 42 TexReg 84.</p></note></section><section identifier="/us/state/tx/tac/t40/p19/c700/scJ/s700.1029"><num value="700.1029">§700.1029</num><heading>What are the eligibility criteria for receipt of permanency care assistance?</heading><content>(a) To receive permanency care assistance for a child, a person must:(1) become the permanent kinship conservator of a child who meets all of the eligibility criteria in subsection (b) or (c) of this section; and(2) enter into a permanency care assistance agreement with DFPS on behalf of the child prior to becoming the child's permanent kinship conservator.(b) A child is eligible to be the subject of a permanency care assistance agreement if all of the following eligibility criteria apply to that child:(1) the child's prospective permanent kinship conservator:(A) is related to the child by consanguinity or affinity; or(B) has had a longstanding and significant relationship to the child prior to DFPS placing the child in the home of that person;(2) the child's prospective permanent kinship conservator must have been eligible for the receipt of foster care reimbursements on behalf of the child who is the subject of the permanency care assistance agreement for at least six consecutive months prior to the effective date of the permanency care assistance agreement;(3) the child has demonstrated a strong attachment to the prospective permanent kinship conservator and that person has a strong commitment to caring permanently for the child;(4) at the time the permanency care assistance agreement is signed, DFPS has determined that neither adoption nor reunification are appropriate permanency options; and(5) if the child will be at least 14 years of age at the time the permanency care assistance agreement is signed, DFPS has consulted with the child about the prospective permanent kinship conservator's commitment to assume permanent managing conservatorship of the child.(c) If a prospective permanent kinship conservator or permanent kinship conservator has entered into a permanency care assistance agreement on behalf of one child for whom all the eligibility criteria in subsection (b) of this section are satisfied, that same individual will be eligible to receive permanency care assistance on behalf of a sibling of the child if all of the following criteria apply to the sibling child:(1) the sibling must have been placed in the home of the same individual by DFPS; and(2) DFPS has temporary or permanent managing conservatorship of the sibling child at the time the permanency care assistance agreement is signed with respect to the sibling child.(d) Notwithstanding any other provision in this subchapter, a person will not be eligible for permanency care assistance on behalf of any child if the court issues an order:(1) naming either of the child's parents joint managing conservator of the child;(2) naming the person and DFPS joint managing conservators of the child; or(3) awarding possessory conservatorship to any parent of the child under circumstances DFPS determines have the effect of reunifying the child with that parent.</content><note type="source"><p>Source Note: The provisions of this §700.1029 adopted to be effective March 1, 2010, 35 TexReg 878; amended to be effective December 1, 2010, 35 TexReg 9744; amended to be effective January 19, 2017, 42 TexReg 84.</p></note></section><section identifier="/us/state/tx/tac/t40/p19/c700/scJ/s700.1031"><num value="700.1031">§700.1031</num><heading>How does a person become eligible for receipt of foster care reimbursement on behalf of a child for at least six consecutive months?</heading><content>(a) Any person who is licensed or verified to provide 24-hour residential care for a child, as provided under Chapter 42, Human Resources Code, and related Child Care Licensing rules, is eligible to receive foster care reimbursement for a child who is in the temporary or permanent managing conservatorship of DFPS and who is placed with that person under a foster care agreement.(b) The simplest way for relatives or other individuals to become eligible to receive foster care reimbursement on behalf of that child is to become a verified foster parent through Child Protective Services or a private child-placing agency and to enter into a Placement Authorization agreement with DFPS to provide 24-hour residential care for the child.(c) In order for a person to be eligible for foster care reimbursements for a six-consecutive month period as required under §700.1029(b)(2) of this title (relating to What are the eligibility criteria for receipt of permanency care assistance?), each of the following conditions must be satisfied throughout the same consecutive six-month period:(1) the child is living with the person;(2) the person must be licensed or verified to care for the child;(3) the person has entered into a Foster Care Placement Authorization agreement for the care of the child and the agreement remains in effect; and(4) the child remains in the sole managing conservatorship of DFPS.(d) A person who has been awarded sole or joint managing conservatorship of a child in a temporary or final order is not entitled to foster care reimbursements for that child.</content><note type="source"><p>Source Note: The provisions of this §700.1031 adopted to be effective March 1, 2010, 35 TexReg 878; amended to be effective December 1, 2010, 35 TexReg 9744; amended to be effective January 19, 2017, 42 TexReg 84.</p></note></section><section identifier="/us/state/tx/tac/t40/p19/c700/scJ/s700.1033"><num value="700.1033">§700.1033</num><heading>How does a person become a verified or licensed foster parent?</heading><content>(a) To become a verified foster parent, a person must apply for verification with Child Protective Services or a private child-placing agency and be able to meet the minimum standards adopted by Child Care Licensing that relate to verified foster parents under Chapter 749 of this title (relating to Child-Placing Agencies), including standards relating to fingerprint-based background checks and an approved home study.(b) A relative or other person with whom a child is placed by DFPS may obtain additional information on the eligibility criteria and process for becoming a verified or licensed foster parent from the child's caseworker or the link to Child Care Licensing information on the DFPS public website at: http://www.dfps.state.tx.us.</content><note type="source"><p>Source Note: The provisions of this §700.1033 adopted to be effective March 1, 2010, 35 TexReg 878.</p></note></section><section identifier="/us/state/tx/tac/t40/p19/c700/scJ/s700.1035"><num value="700.1035">§700.1035</num><heading>Do the same standards apply to relatives of a child who apply to become a foster parent as any other person who applies to become a foster parent?</heading><content>Title IV-E of the federal Social Security Act requires that a state's child-care licensing agency apply the same standards to relatives who choose to become a foster parent as it applies to non-relatives, with the exception that the child-care licensing agency may, on a case-by-case basis, waive a non-safety related standard with respect to a relative child in care.</content><note type="source"><p>Source Note: The provisions of this §700.1035 adopted to be effective March 1, 2010, 35 TexReg 878.</p></note></section><section identifier="/us/state/tx/tac/t40/p19/c700/scJ/s700.1037"><num value="700.1037">§700.1037</num><heading>What is the process for entering into a permanency care assistance agreement?</heading><content>(a) At least 30 days prior to the date on which a prospective permanent kinship conservator anticipates being granted permanent managing conservatorship of the child by the court, the prospective permanent kinship conservator must complete an application for permanency care assistance, which can be obtained from the child's caseworker. In addition to documenting the eligibility criteria for the receipt of permanency care assistance, as specified in this subchapter, the application may request additional information that will be used to negotiate the amount of monthly payments for which the person may be eligible.(b) After receiving a completed application, and prior to the date on which permanent managing conservatorship is awarded to the prospective permanent kinship conservator, DFPS will notify the applicant of whether or not benefits are approved and, if so, negotiate the terms of the permanency care assistance agreement with the prospective permanent kinship conservator.(c) Notwithstanding subsection (a) of this section, if through no fault of the prospective permanent kinship conservator there is insufficient time to submit the application at least 30 days prior to the date of an anticipated award of permanent managing conservatorship by the court, the application should be submitted as soon as possible and DFPS will expedite its handling of the application.(d) The prospective permanent kinship conservator must sign a permanency care assistance agreement prior to becoming the child's permanent kinship conservator. Exceptions can be made to this requirement only in certain circumstances, as described in §700.1059 of this title (relating to Can a child still get benefits if a permanency care assistance agreement was not signed before the permanent kinship conservator was granted permanent managing conservatorship of the child?).</content><note type="source"><p>Source Note: The provisions of this §700.1037 adopted to be effective March 1, 2010, 35 TexReg 878; amended to be effective January 19, 2017, 42 TexReg 84.</p></note></section><section identifier="/us/state/tx/tac/t40/p19/c700/scJ/s700.1039"><num value="700.1039">§700.1039</num><heading>What is the amount of monthly payments that a permanent kinship conservator may receive under a permanency care assistance agreement?</heading><content>(a) The amount of monthly payments that will be paid to a permanent kinship conservator will be negotiated between DFPS and the prospective permanent kinship conservator prior to the signing of the permanency care assistance agreement, based on the criteria specified in subsection (b) of this section, subject to the maximum monthly payment amounts specified in subsection (c) of this section. These amounts may be periodically re-negotiated as circumstances change.(b) The following factors are considered when negotiating the amount of monthly permanency care assistance payments to be made:(1) the child's present need for services will be assessed in relation to the permanent kinship conservator's income, expenses, circumstances, and plans for the future;(2) benefits are intended only to assist the permanent kinship conservator in meeting the child's needs and the permanent kinship conservator's responsibilities for meeting those needs;(3) any and all sources of income and support that are specifically designated for the child (such as Retirement, Survivors, Disability Insurance (RSDI) or Veterans Administration (VA) benefits) must be applied toward meeting the child's needs;(4) whether a publicly funded source may be used to meet the child's needs, even if the permanent kinship conservator does not choose to take advantage of the publicly funded source; and(5) a determination of the actual or estimated costs of meeting the child's medical needs that cannot be met through private insurance or Texas Medicaid.(c) The maximum monthly payment amount depends upon the child's authorized service level (ASL) at the time the permanency care assistance agreement is negotiated. The payment ceiling for a child whose ASL is Basic Care is $400 per month; the payment ceiling for a child whose ASL is Moderate, Specialized or Intense is $545 per month.(d) Under the Texas Child-Centered Care (T3C) System, the maximum monthly payment depends on the child's recommended service package, at the time the permanency care assistance agreement is negotiated. The payment ceiling for a child who is placed in the T3C Basic Foster Family Support Services is $400 per month; the payment ceiling for a child placed in any other Service Package is $545 per month.</content><note type="source"><p>Source Note: The provisions of this §700.1039 adopted to be effective March 1, 2010, 35 TexReg 878; amended to be effective January 19, 2017, 42 TexReg 84; amended to be effective December 22, 2024, 49 TexReg 10389.</p></note></section><section identifier="/us/state/tx/tac/t40/p19/c700/scJ/s700.1041"><num value="700.1041">§700.1041</num><heading>What is the effective date of a permanency care assistance agreement and when will benefits begin?</heading><content>(a) Although the permanency care assistance agreement must be signed prior to the prospective permanent kinship conservator being awarded permanent managing conservatorship of the child, except as provided in §700.1059 of this title (relating to Can a child still get benefits if a permanency care assistance agreement was not signed before the permanent kinship conservator was granted permanent managing conservatorship of the child?), the agreement does not become effective until the date that permanent managing conservatorship is granted to the permanent kinship conservator by the court.(b) Permanency care assistance benefits are available beginning in the first month following the date upon which the agreement becomes effective.(c) Under no circumstances may a permanent kinship conservator receive both foster care reimbursement and monthly permanency care assistance payments for the same time period on behalf of the same child.</content><note type="source"><p>Source Note: The provisions of this §700.1041 adopted to be effective March 1, 2010, 35 TexReg 878; amended to be effective January 19, 2017, 42 TexReg 84.</p></note></section><section identifier="/us/state/tx/tac/t40/p19/c700/scJ/s700.1043"><num value="700.1043">§700.1043</num><heading>How and when is a permanent kinship conservator reimbursed for the costs of the nonrecurring expenses associated with obtaining permanent managing conservatorship of the child and how are these expenses calculated?</heading><content>(a) A permanent kinship conservator who has entered into a permanency care assistance agreement will not be reimbursed for nonrecurring expenses associated with obtaining permanent managing conservatorship of the child who is the subject of the agreement until after that person becomes the child's permanent managing conservator.(b) To obtain reimbursement, the permanent kinship conservator must submit receipts or other proof of payment, such as cancelled checks, to DFPS.(c) The nonrecurring expenses for which a person may be reimbursed include only those expenses incurred directly by the permanent kinship conservator, or for which the permanent kinship conservator was required to reimburse a third party, that were reasonable and necessary to complete the legal process of becoming the child's permanent kinship conservator. Such expenses may include the costs of obtaining a home study, legal fees, court costs, health and psychological examinations, and transportation and reasonable costs of lodging and food for the permanent kinship conservator or the child.(d) The permanent kinship conservator must submit a claim for reimbursement and receipts or other proof of payment no more than 18 months after obtaining permanent managing conservatorship of the child.(e) The maximum amount that a permanent kinship conservator may be reimbursed for nonrecurring expenses is $1,200 per child covered by a permanency care assistance agreement.</content><note type="source"><p>Source Note: The provisions of this §700.1043 adopted to be effective March 1, 2010, 35 TexReg 878; amended to be effective June 1, 2012, 37 TexReg 3738; amended to be effective January 19, 2017, 42 TexReg 84.</p></note></section><section identifier="/us/state/tx/tac/t40/p19/c700/scJ/s700.1045"><num value="700.1045">§700.1045</num><heading>If no assistance is needed at the time a person becomes the permanent kinship conservator, can that person still enter into a permanency care assistance agreement?</heading><content>Yes. If a prospective permanent kinship conservator meets the eligibility criteria for permanency care assistance, but does not need any monetary assistance or Medicaid to meet the child's needs at the time the court awards permanent managing conservatorship of the child, that person may enter into a deferred permanency care assistance agreement to preserve eligibility to receive permanency care assistance benefits for the child in the future, should the need arise.</content><note type="source"><p>Source Note: The provisions of this §700.1045 adopted to be effective March 1, 2010, 35 TexReg 878; amended to be effective January 19, 2017, 42 TexReg 84.</p></note></section><section identifier="/us/state/tx/tac/t40/p19/c700/scJ/s700.1047"><num value="700.1047">§700.1047</num><heading>How long does the permanency care assistance agreement remain in effect?</heading><content>(a) Unless there is a change in circumstances that affects a person's continuing eligibility for benefits, as provided in subsection (b) of this section, a permanency care assistance agreement remains in effect at least through the end of the month in which the child turns 18 years, and possibly longer if the child and family are eligible for extended permanency care assistance after age 18, as specified in §700.1053 of this title (relating to Who is eligible for extended permanency care assistance?).(b) A permanency care assistance agreement may be terminated before a child turns 18 years when any of the following occurs:(1) the prospective permanent kinship conservator is not granted managing conservatorship of the child;(2) DFPS determines that the permanent kinship conservator was mistakenly determined to be eligible for permanency care assistance;(3) the permanent kinship conservator is no longer legally responsible for the child's care due to a change in legal status prior to the child reaching the age of 18 years;(4) the permanent kinship conservator is no longer providing any care or other support to the child;(5) the child dies; or(6) the permanent kinship conservator requests that the agreement be terminated.(c) If the child who is the subject of the permanency care assistance agreement is over the age of 18 years, and the child's family is receiving benefits under §700.1053 of this title, the agreement and benefits may be terminated if the child no longer meets the eligibility conditions in §700.1053(b) of this title.(d) If a person receives monthly payments for a period of time for which the permanency care assistance agreement could have been terminated, DFPS may require that person to repay the total amount of benefits for which the person was not eligible or may deduct the amount of any overpayment from any future benefits under a repayment plan.(e) In the event the permanent kinship conservator dies or becomes incapacitated and a successor guardian assumes legal custody of the child, the permanency care assistance agreement is terminated and the successor guardian must enter into a new agreement with DFPS in order to receive permanency care assistance on behalf of the child, as specified in §700.1061 of this title (relating to Does a child remain eligible for permanency care assistance benefits in the event that the permanent kinship conservator dies or becomes incapacitated?).</content><note type="source"><p>Source Note: The provisions of this §700.1047 adopted to be effective March 1, 2010, 35 TexReg 878; amended to be effective January 19, 2017, 42 TexReg 84.</p></note></section><section identifier="/us/state/tx/tac/t40/p19/c700/scJ/s700.1049"><num value="700.1049">§700.1049</num><heading>What happens if a family's circumstances change after the permanency care assistance agreement is signed?</heading><content>(a) Each permanent kinship conservator who enters into a permanency care assistance agreement is responsible for notifying DFPS when any of the following changes in circumstances occur with respect to the permanent kinship conservator or the child who is the subject of the agreement:(1) there is a change in name or address;(2) there is a change in marital status;(3) the child is no longer living with the permanent kinship conservator;(4) there is a change in the child's legal status;(5) the permanent kinship conservator has identified a potential successor guardian; or(6) there is any change in circumstances that would warrant termination of the permanency care assistance agreement, as described in §700.1047 of this title (relating to How long does the permanency care assistance agreement remain in effect?).(b) If the permanent kinship conservator is not already receiving the maximum monthly assistance payment allowable for the child, the conservator may submit a written request to increase the monthly assistance payments, specifying the change in circumstances that may justify an increase in the payment amount. Any request for an increase in the monthly payment amount is subject to the same requirements and limitations described in §700.1039 of this title (relating to What is the amount of monthly payments that a permanent kinship conservator may receive under a permanency care assistance agreement?).(c) DFPS may periodically require a permanent kinship conservator to recertify continued eligibility for the receipt of benefits as provided under the permanency care assistance agreement and these rules. A request for recertification must be completed and returned to DFPS within 60 days of receipt. Failure to promptly provide the recertification information may result in an overpayment, which DFPS may require the permanent kinship conservator to repay or which DFPS may deduct from any future benefits under a repayment plan.(d) DFPS may periodically require documentation from the permanent kinship conservator that is sufficient to demonstrate that the child who is the subject of the permanency care assistance agreement and who has attained the minimum age for compulsory school attendance in Texas or the child's state of residence is a full-time elementary or secondary student as that term is defined in §700.1027 of this title (relating to What definitions apply to this division?). DFPS may require such documentation to include proof sufficient to demonstrate that the child is rendered incapable of being a full-time elementary or secondary student because of a medical condition.</content><note type="source"><p>Source Note: The provisions of this §700.1049 adopted to be effective March 1, 2010, 35 TexReg 878; amended to be effective January 19, 2017, 42 TexReg 84.</p></note></section><section identifier="/us/state/tx/tac/t40/p19/c700/scJ/s700.1051"><num value="700.1051">§700.1051</num><heading>Is a permanent kinship conservator still eligible to receive permanency care assistance from Texas if the conservator moves outside the state?</heading><content>Yes. DFPS will continue to provide the monthly assistance payments specified in the permanency care assistance agreement no matter where the permanent kinship conservator resides, provided the permanent kinship conservator notifies DFPS of any change of address. DFPS provides Texas Medicaid coverage only if the state to which the permanent kinship conservator custodian moves does not agree to cover the child who is the subject of the permanency care assistance agreement under its state Medicaid program.</content><note type="source"><p>Source Note: The provisions of this §700.1051 adopted to be effective March 1, 2010, 35 TexReg 878; amended to be effective January 19, 2017, 42 TexReg 84.</p></note></section><section identifier="/us/state/tx/tac/t40/p19/c700/scJ/s700.1053"><num value="700.1053">§700.1053</num><heading>Who is eligible for extended permanency care assistance?</heading><content>(a) Youth are eligible to continue receiving permanency care assistance from the youth's 18th birthday through the last day of the month in which the youth turns 21 if the following criteria are met:(1) The permanent kinship conservator is granted permanent managing conservatorship of the youth after the child's 16th birthday and before the child's 18th birthday; and(2) The permanent kinship conservator provides sufficient documentation on a periodic basis as required by the permanency care assistance agreement to demonstrate that the youth is:(A) regularly attending high school or enrolled in a program leading toward a high school diploma or high school equivalence certificate;(B) regularly attending an institution of higher education or a post-secondary vocational or technical program;(C) actively participating in a program or activity that promotes, or removes barriers to, employment;(D) employed for at least 80 hours per month; or(E) incapable of performing any of the activities listed in subparagraphs (A) - (D) of this paragraph due to a documented medical condition, as further described in subsection (b) of this section.(b) There is a presumption that a youth is capable of the activities listed in subsection (a)(2)(A) - (D) of this section. The presumption can be rebutted only if sufficient documentation is provided to verify the medical condition and that the medical condition renders the youth incapable of those activities. Such documentation of a medical condition might include a determination of disability from the Social Security Administration, a determination of mental retardation, or a statement from a medical doctor. In addition, documentation must also verify the activities of daily living that the youth is rendered incapable of performing as a result of that medical condition.(c) Notwithstanding any other provision in this subchapter, no individual will be eligible for extended permanency care assistance prior to October 1, 2010.</content><note type="source"><p>Source Note: The provisions of this §700.1053 adopted to be effective March 1, 2010, 35 TexReg 878; amended to be effective January 19, 2017, 42 TexReg 84.</p></note></section><section identifier="/us/state/tx/tac/t40/p19/c700/scJ/s700.1055"><num value="700.1055">§700.1055</num><heading>If a person caring for a child in DFPS conservatorship does not qualify for permanency care assistance under this division, are there any other benefits to which that person may be entitled?</heading><content>A relative or other caregiver for a child in DFPS conservatorship who does not qualify for permanency care assistance may be eligible for benefits under Division 1 of this subchapter (relating to Relative or Other Designated Caregiver Program).</content><note type="source"><p>Source Note: The provisions of this §700.1055 adopted to be effective March 1, 2010, 35 TexReg 878.</p></note></section><section identifier="/us/state/tx/tac/t40/p19/c700/scJ/s700.1057"><num value="700.1057">§700.1057</num><heading>What rights does a person have if permanency care assistance benefits are denied?</heading><content>(a) A person has a right to request a fair hearing whenever permanency care assistance benefits are denied, delayed, suspended, reduced, or terminated. The hearing, as described in §730.1102 of this title (relating to Definitions), provides the opportunity to have a decision or action made by a DFPS employee reviewed by a higher authority within DFPS.(b) A request for fair hearing must be submitted to DFPS in writing, within 90 days of the decision or action being appealed.(c) Additional information regarding the fair hearing process is contained in DFPS rules in Subchapter L, Fair Hearings, of Chapter 730 of this title (relating to Legal Services).(d) Notwithstanding any other provision in this title, a person will not be granted a fair hearing to appeal the denial of permanency care assistance if any of the following conditions apply:(1) the person denied benefits was not a licensed or verified foster parent at the time the person applied for or was denied permanency care assistance;(2) the child for whom the application was made did not live with the person for at least 6 consecutive months while in the conservatorship of DFPS;(3) the person denied benefits became the managing conservator of the child prior to September 1, 2010; or(4) the child for whom extended permanency care assistance benefits were denied turned 18 years of age before October 1, 2010.</content><note type="source"><p>Source Note: The provisions of this §700.1057 adopted to be effective March 1, 2010, 35 TexReg 878.</p></note></section><section identifier="/us/state/tx/tac/t40/p19/c700/scJ/s700.1059"><num value="700.1059">§700.1059</num><heading>Can a child still get benefits if a permanency care assistance agreement was not signed before the permanent kinship conservator was granted permanent managing conservatorship of the child?</heading><content>(a) Yes, but only after the permanent kinship conservator requests a fair hearing and shows that there is good reason to excuse the failure to have signed a permanency care assistance agreement. Some good reasons that allow for a fair hearing are:(1) DFPS did not inform the permanent kinship conservator of the permanency care assistance program before the court granted him or her permanent managing conservatorship of the child;(2) The court awarded the permanent kinship conservator permanent managing conservatorship of the child without prior notice;(3) DFPS knew facts relevant to the child's eligibility for permanency care assistance but did not disclose them to the permanent kinship conservator before the court awarded him or her permanent managing conservatorship of the child; or(4) DFPS made an error in determining that the child was not eligible before the court granted permanent managing conservatorship of the child to the permanent kinship conservator.(b) In the hearing, the permanent kinship conservator has the burden to prove both:(1) the reason for not having signed a permanency care assistance agreement before being awarded permanent managing conservatorship of the child; and(2) that the child meets all eligibility requirements.(c) If DFPS agrees that the child is eligible and the failure to have signed a permanency care assistance agreement should be excused, DFPS and the permanent kinship conservator can sign an agreed order and avoid having a fair hearing. The hearing officer must approve the agreed order, and the permanent kinship conservator must sign a permanency care assistance agreement consistent with its provisions, before he or she can receive benefits.</content><note type="source"><p>Source Note: The provisions of this §700.1059 adopted to be effective January 19, 2017, 42 TexReg 84.</p></note></section><section identifier="/us/state/tx/tac/t40/p19/c700/scJ/s700.1061"><num value="700.1061">§700.1061</num><heading>Does a child remain eligible for permanency care assistance payments in the event that the permanent kinship conservator dies or becomes incapacitated?</heading><content>(a) Yes. Permanency care assistance payments may continue to a successor guardian if the successor guardian meets the definition in §700.1027(7) of this title (relating to What definitions apply to this division?).(b) The successor guardian cannot begin receiving permanency care assistance payments from DFPS until the individual has signed a permanency care assistance agreement and has assumed permanent managing conservatorship of the child.(c) If the successor guardian signs the permanency care assistance agreement after being granted legal custody of the child by the court, DFPS may, for good cause, grant retroactive benefits back to the date permanent managing conservatorship was granted, for a period not to exceed 12 months, if the successor guardian can demonstrate that:(1) DFPS caused a delay in the activation of benefits; or(2) The successor guardian's failure to sign a permanency care assistanceagreement prior to being granted permanent managing conservatorship of the child was because the successor guardian was not aware that the child remained eligible for continuation of benefits in a subsequent conservatorship.(d) The terms and conditions of the permanency care assistance agreement originally signed by the previous permanent kinship conservator will also apply to the successor guardian. This means that the successor guardian:(1) is entitled to a one-time reimbursement of nonrecurring expenses not to exceed $1,200 per child;(2) is entitled to receive the child's benefits for the same duration determined in the original agreement signed by the previous permanent kinship conservator;(3) may exercise his or her right to a fair hearing if benefits are denied, delayed, suspended, or reduced; and(4) must abide by the same conditions for continuation of permanency care assistance payments, including, but not limited to, annual notification, certification, and documentation requirements.</content><note type="source"><p>Source Note: The provisions of this §700.1061 adopted to be effective January 19, 2017, 42 TexReg 84.</p></note></section></subchapter><subchapter identifier="/us/state/tx/tac/t40/p19/c700/scK"><num value="K">SUBCHAPTER K</num><heading>COURT-RELATED SERVICES</heading><section identifier="/us/state/tx/tac/t40/p19/c700/scK/s700.1101"><num value="700.1101">§700.1101</num><heading>Eligibility and Priorities</heading><content>(a) The Texas Department of Protective and Regulatory Services provides court-related services only to children and parents who are eligible for services under the criteria specified in §700.311 of this title (relating to Eligible Individuals).(b) Court-related investigative services are provided according to the priorities and time frames specified in §700.505 of this title (relating to Priorities for Investigation and Assessment).</content><note type="source"><p>Source Note: The provisions of this §700.1101 adopted to be effective May 15, 1992, 17 TexReg 2783; transferred effective September 1, 1992, as published in the Texas Register September 11, 1992, 17 TexReg 6279.</p></note></section><section identifier="/us/state/tx/tac/t40/p19/c700/scK/s700.1102"><num value="700.1102">§700.1102</num><heading>Informing and Notifying Parents and Children</heading><content>To protect the legal rights of parents and children, the Texas Department of Protective and Regulatory Services (PRS) must take the following actions when providing court-related services.(1) PRS must inform the parents and children of every planned court action. Whenever possible, PRS must notify the parents and children of a planned court action before the action takes place, unless PRS suspects that the parents may try to move to avoid the court action. If PRS suspects that the parents may try to move to avoid a court action, PRS may take one of the following actions before informing the parents of the planned court action:(A) PRS may request a temporary restraining order to prohibit the parents from removing the child from the state before PRS completes an investigation of child abuse or neglect; or(B) PRS may take possession of the child under the authority of a statute or a court order.(2) PRS must inform the parents of their right to be represented by an attorney at every court hearing.(3) PRS must inform the parents of their right to attend every court hearing.(4) When PRS takes possession of a child without a court order or pursuant to an emergency order, PRS must give the parents or legal guardian written notice of the removal.</content><note type="source"><p>Source Note: The provisions of this §700.1102 adopted to be effective May 15, 1992, 17 TexReg 2783; transferred effective September 1, 1992, as published in the Texas Register September 11, 1992, 17 TexReg 6279.</p></note></section><section identifier="/us/state/tx/tac/t40/p19/c700/scK/s700.1103"><num value="700.1103">§700.1103</num><heading>Provision of In-home Services When an Emergency Hearing Cannot Be Held Within Legally Required Time Limits</heading><content>When the Texas Department of Protective and Regulatory Services has removed a child from a home without a court order pursuant to Texas Family Code (TFC), §262.104, and must return the child to the home because an emergency hearing cannot be held within the time limits required in TFC, §262.106(c), Protective Services for Families and Children must provide whatever services it can in the home to protect the child from further harm.</content><note type="source"><p>Source Note: The provisions of this §700.1103 adopted to be effective May 15, 1992, 17 TexReg 2783; transferred effective September 1, 1992, as published in the Texas Register September 11, 1992, 17 TexReg 6279; amended to be effective August 1, 1996, 21 TexReg 3213.</p></note></section><section identifier="/us/state/tx/tac/t40/p19/c700/scK/s700.1104"><num value="700.1104">§700.1104</num><heading>Affidavit of Relinquishment of Parental Rights</heading><content>(a) The Texas Department of Protective and Regulatory Services (PRS) accepts conservatorship through an affidavit of relinquishment of parental rights only when the parents:(1) want to give up parental rights permanently;(2) designate PRS as the managing conservator; and(3) consent to PRS placing the child for adoption.(b) Before PRS accepts conservatorship through an affidavit of relinquishment, the worker must inform the parents that, after accepting the affidavit, PRS will no longer work with them to return the child to the home.(c) Upon accepting an affidavit of relinquishment, PRS must inform the parents of the rights they retain under the Texas Family Code, Chapters 151, 161, and 153, pending the court's designation of PRS as the child's managing conservator. Until the court acts, PRS must allow the parents to exercise these rights if they ask to do so.</content><note type="source"><p>Source Note: The provisions of this §700.1104 adopted to be effective May 15, 1992, 17 TexReg 2783; transferred effective September 1, 1992, as published in the Texas Register September 11, 1992, 17 TexReg 6279.</p></note></section><section identifier="/us/state/tx/tac/t40/p19/c700/scK/s700.1105"><num value="700.1105">§700.1105</num><heading>Diligent Search for Missing Parents</heading><content>(a) When the whereabouts of one or more parents of a child in the Texas Department of Protective and Regulatory Services' managing conservatorship is unknown, Child Protective Services must make a diligent search for:(1) each missing parent.(2) a parent, a grandparent, or any adult sibling or child of each missing parent.(b) In cases filed after September 1, 1997, where a child has one or more alleged biological fathers whose identity is unknown or whose identity is known but whose whereabouts is unknown, a request to search the Paternity Registry (a division of the Texas Department of Health's Bureau of Vital Statistics) must be completed, in addition to a diligent search for each alleged biological father.</content><note type="source"><p>Source Note: The provisions of this §700.1105 adopted to be effective May 15, 1992, 17 TexReg 2783; transferred effective September 1, 1992, as published in the Texas Register September 11, 1992, 17 TexReg 6279; amended to be effective January 1, 1998, 22 TexReg 12547.</p></note></section><section identifier="/us/state/tx/tac/t40/p19/c700/scK/s700.1106"><num value="700.1106">§700.1106</num><heading>Obtaining Court Approval</heading><content>(a) If a child is in the Texas Department of Protective and Regulatory Services' managing conservatorship, the child's worker must obtain written approval from the court or the court's designee for:(1) placing the child out of state; or(2) returning the child to the family.(b) If the court gives oral approval but declines to give written approval for either of the actions specified in subsection (a) of this section, the worker must advise the court in writing of his understanding that the court has given approval.</content><note type="source"><p>Source Note: The provisions of this §700.1106 adopted to be effective May 15, 1992, 17 TexReg 2783; transferred effective September 1, 1992, as published in the Texas Register September 11, 1992, 17 TexReg 6279.</p></note></section><section identifier="/us/state/tx/tac/t40/p19/c700/scK/s700.1107"><num value="700.1107">§700.1107</num><heading>Notifying the Court</heading><content>Unless the court indicates that it does not want to be notified, the Texas Department of Protective and Regulatory Services (PRS) must notify the court or the court's designee of the following actions and events involving a child in PRS's managing conservatorship:(1) circumstances that may be harmful to the child, including, but not limited to:(A) serious or life-endangering illness, or death;(B) consideration of the withdrawal of life-support systems or the withholding of medically indicated treatment;(C) abuse or neglect of the child in a foster home, an adoptive home, a relative's home, or the child's own home;(D) loss of contact with the child because the child has run away or been kidnapped by a parent or relative; and(E) the child's having placed himself in an independent living arrangement;(2) the child's leaving the court's geographic jurisdiction; and(3) PRS's placement of the child in foster or substitute care after having returned the child to the parents (notification of which is required in the Texas Family Code, §263.004).</content><note type="source"><p>Source Note: The provisions of this §700.1107 adopted to be effective May 15, 1992, 17 TexReg 2783; transferred effective September 1, 1992, as published in the Texas Register September 11, 1992, 17 TexReg 6279.</p></note></section><section identifier="/us/state/tx/tac/t40/p19/c700/scK/s700.1108"><num value="700.1108">§700.1108</num><heading>Request for Child Support Orders</heading><content>(a) Unless parental rights are terminated, the Texas Department of Protective and Regulatory Services (PRS) must ask the county or district attorney to include a request for child support and health insurance in every petition for managing conservatorship and substitute-care placement, including court-ordered placements. If the child's parents are deceased, the court may order the parents' estate to provide for the child's care.(b) The worker must inform the parents about PRS's request for child support and health insurance.(c) If the caretaker is already receiving court-ordered support for the child, PRS must ask the court to make the child support payable to the Texas attorney general's child support division when PRS is appointed managing conservator.</content><note type="source"><p>Source Note: The provisions of this §700.1108 adopted to be effective May 15, 1992, 17 TexReg 2783; transferred effective September 1, 1992, as published in the Texas Register September 11, 1992, 17 TexReg 6279.</p></note></section><section identifier="/us/state/tx/tac/t40/p19/c700/scK/s700.1109"><num value="700.1109">§700.1109</num><heading>Enforcement of Child Support Orders</heading><content>(a) PRS requests enforcement of court-ordered child support through the Texas Office of the Attorney General (OAG) Child Support Division.(b) After determining eligibility, PRS must refer all Title IV-E (Type Program 08), State-Paid (Type Program 10), and Medical Assistance Only (MAO) (Type Program 09) eligible children to the OAG's Child Support Division when child support is court-ordered.(c) The legal parents of a child in foster care must be included in a referral for enforcement of child support orders. Each legal parent is included even if one or both are missing or living in another state. If a parent has more than one child in foster care, the parent must be included in each child's referral.(d) As the child's managing conservator, PRS may ask the OAG's Child Support Division to defer collection of child support for up to six months when deferment is in the best interest of the child.</content><note type="source"><p>Source Note: The provisions of this §700.1109 adopted to be effective May 15, 1992, 17 TexReg 2783; transferred effective September 1, 1992, as published in the Texas Register September 11, 1992, 17 TexReg 6279; amended to be effective November 1, 2002, 27 TexReg 9392.</p></note></section><section identifier="/us/state/tx/tac/t40/p19/c700/scK/s700.1110"><num value="700.1110">§700.1110</num><heading>Collection and Use of Child Support Payments</heading><content>(a) The Texas Department of Protective and Regulatory Services (PRS) must use the child support collected for a child in substitute care for the care and maintenance of the child.(b) If the amount of child support collected for a child, by itself or in combination with the child's other income, equals or exceeds the amount of the child's foster-care assistance payments, PRS staff must redetermine the child's eligibility for foster care assistance.(c) If the amount collected exceeds the monthly amount of the foster-care maintenance payment, but not the monthly child support obligation, the attorney general's office pays the excess to PRS. As the child's managing conservator, PRS must either:(1) set the excess aside for the child's future needs; or(2) make it available to meet the child's day-to-day needs. If PRS is not the child's managing conservator, PRS sends the excess to the managing conservator. The managing conservator must use the excess to meet the child's needs as specified in this subsection.(d) If the amount collected exceeds both the foster-care maintenance payment and the monthly child support obligation, PRS retains the excess as reimbursement for past unreimbursed Title IV-E foster-care maintenance payments or Title IV-A aid to families with dependent children assistance payments.(e) When foster-care maintenance payments end, the assignment of support rights also ends except for the amount of any unpaid support that accrued under the assignment. The attorney general's child support unit may try to collect unpaid support and send it to PRS as reimbursement for past unreimbursed foster-care maintenance payments.</content><note type="source"><p>Source Note: The provisions of this §700.1110 adopted to be effective May 15, 1992, 17 TexReg 2783; transferred effective September 1, 1992, as published in the Texas Register September 11, 1992, 17 TexReg 6279.</p></note></section><section identifier="/us/state/tx/tac/t40/p19/c700/scK/s700.1111"><num value="700.1111">§700.1111</num><heading>Protective Court Orders</heading><content>(a) The Texas Department of Protective and Regulatory Services (TDPRS) may apply for a protective order for the protection of a member of a family or household. Before filing an application for a protective order, the worker must consult with the:(1) supervisor;(2) designated legal counsel; and(3) nonabusive parent.(b) All parties must be involved in the decision to file an application for a protective order.(c) The worker must provide written notice to the nonabusive parent of TDPRS's decision to apply for a protective order.</content><note type="source"><p>Source Note: The provisions of this §700.1111 adopted to be effective August 1, 1996, 21 TexReg 3213.</p></note></section></subchapter><subchapter identifier="/us/state/tx/tac/t40/p19/c700/scL"><num value="L">SUBCHAPTER L</num><heading>PERMANENCY PLANNING</heading><section identifier="/us/state/tx/tac/t40/p19/c700/scL/s700.1201"><num value="700.1201">§700.1201</num><heading>What is the permanency planning process?</heading><content>The permanency planning process is a required, ongoing process that DFPS follows when providing services to children and families. The process involves directing DFPS services toward the achievement of:(1) a safe living situation for the child;(2) a permanent living situation for the child;(3) a committed family for the child;(4) an enduring and nurturing family relationship that can meet the child's needs;(5) a sense of security for the child;(6) a legal status for the child that protects the rights of the child; and(7) in the case of a child whose permanency goal is another planned, permanent living arrangement, a connection to a caring adult who will be supportive into adulthood during and after the transition to independent living.</content><note type="source"><p>Source Note: The provisions of this §700.1201 adopted to be effective January 1, 2004, 28 TexReg 11344; amended to be effective March 1, 2011, 36 TexReg 590.</p></note></section><section identifier="/us/state/tx/tac/t40/p19/c700/scL/s700.1202"><num value="700.1202">§700.1202</num><heading>What is a permanency plan?</heading><content>There must be a permanency plan for all children receiving family-based safety services from DFPS and for all children for whom DFPS has responsibility for placement and care, which consists of:(1) the primary permanency planning goal for the child and, in the case of a child for whom DFPS has been appointed temporary or permanent managing conservator, one or more alternate permanency planning goals;(2) the specific steps to be taken to achieve the goal or goals, with responsibilities and time frames established for taking those steps; and(3) a discussion of the efforts made to achieve the goal or goals.</content><note type="source"><p>Source Note: The provisions of this §700.1202 adopted to be effective January 1, 2004, 28 TexReg 11344; amended to be effective March 1, 2011, 36 TexReg 590.</p></note></section><section identifier="/us/state/tx/tac/t40/p19/c700/scL/s700.1204"><num value="700.1204">§700.1204</num><heading>How is the permanency planning goal chosen?</heading><content>(a) A permanency planning goal must serve the child's best interests and long term needs, including the need for an enduring and nurturing family relationship with safety, stability, and continuity of care.(b) A permanency planning goal may be excluded after DFPS determines it is:(1) unnecessary to consider, by court order;(2) unreasonable or unachievable, after pursuing reasonable efforts; or(3) not appropriate to meet the child's needs and best interests.</content><note type="source"><p>Source Note: The provisions of this §700.1204 adopted to be effective January 1, 2004, 28 TexReg 11344; amended to be effective March 1, 2011, 36 TexReg 590.</p></note></section><section identifier="/us/state/tx/tac/t40/p19/c700/scL/s700.1205"><num value="700.1205">§700.1205</num><heading>How is the permanency plan established and reviewed?</heading><content>(a) The permanency plan must initially be established in the development of the child's or family's service plan. The plan is reviewed at several different points in a case as part of DFPS's regular review of the child's or family's service plan, and in the court hearings regarding permanency and placement review.(b) If the permanency plan is reviewed and determined to be inappropriate based on changing circumstances, the permanency plan must be changed and the child's or family's service plan must be updated to reflect the new permanency plan.</content><note type="source"><p>Source Note: The provisions of this §700.1205 adopted to be effective January 1, 2004, 28 TexReg 11344; amended to be effective March 1, 2011, 36 TexReg 590.</p></note></section><section identifier="/us/state/tx/tac/t40/p19/c700/scL/s700.1206"><num value="700.1206">§700.1206</num><heading>Where is the permanency plan documented?</heading><content>(a) For children receiving family-based safety services, the permanency plan is documented in the family's service plan.(b) For children in the placement and care of DFPS, the permanency plan is documented in the child's and, as appropriate, the family's service plan.(c) For children in the temporary managing conservatorship of DFPS, the permanency plan is also documented in the permanency progress report that is submitted to the court as required in the Texas Family Code, Chapter 263, Subchapter D.(d) For children in the permanent managing conservatorship of DFPS, the permanency plan is also documented in the placement review report that is submitted to the court as required in the Texas Family Code, Chapter 263, Subchapter F.</content><note type="source"><p>Source Note: The provisions of this §700.1206 adopted to be effective January 1, 2004, 28 TexReg 11344; amended to be effective March 1, 2011, 36 TexReg 590.</p></note></section><section identifier="/us/state/tx/tac/t40/p19/c700/scL/s700.1208"><num value="700.1208">§700.1208</num><heading>What is the specific goal as to percentage of children in care over 24 months?</heading><content>To comply with Title IV of the Social Security Act, §471(a)(14) and federal rules 45 Code of Federal Regulations §1356.21(n), the Department of Family and Protective Services (DFPS) seeks to limit the number of children under DFPS's responsibility who remain in substitute care for a period longer than 24 months to no more than 35% of the children in care.</content><note type="source"><p>Source Note: The provisions of this §700.1208 adopted to be effective July 1, 2005, 30 TexReg 3597.</p></note></section><section identifier="/us/state/tx/tac/t40/p19/c700/scL/s700.1210"><num value="700.1210">§700.1210</num><heading>What is a permanency planning meeting?</heading><content>(a) A permanency planning meeting is a multi-disciplinary meeting that involves and takes into account the input of the persons and entities involved in a child's case, including those listed in §263.0021(b), Texas Family Code.(b) The purpose of a permanency planning meeting is to:(1) identify a child's permanency goal;(2) identify any barriers to achieving the child's permanency goal; and(3) develop strategies and determine actions to achieve the child's permanency goal.(c) Except as otherwise provided in federal and state law, a child's permanency goal should involve the child's timely exit from the managing conservatorship of DFPS to the home of an individual or family who assumes permanent legal, cultural, familial, and other responsibility for the child.(d) A permanency planning meeting is conducted in accordance with §263.009, Texas Family Code.</content><note type="source"><p>Source Note: The provisions of this §700.1210 adopted to be effective March 1, 2016, 41 TexReg 1122.</p></note></section><section identifier="/us/state/tx/tac/t40/p19/c700/scL/s700.1212"><num value="700.1212">§700.1212</num><heading>When should a permanency planning meeting be held?</heading><content>Permanency planning meetings should be held, to the greatest extent possible, whenever it is appropriate to achieving the goal of a child's safe and timely exit from DFPS' managing conservatorship in accordance with §700.1201 of this title (relating to What is the permanency planning process?), including:(1) To develop the initial family plan of service and initial visitation plan;(2) Prior to scheduled permanency hearings;(3) Following a significant update to the child's permanency goal; and(4) As soon as possible after rendition of a final order naming DFPS the permanent managing conservator of a youth over the age of 16 whose permanency goal is another planned permanent living arrangement and as frequently as possible thereafter if it is determined that progress is not being made toward achieving permanency for the youth.</content><note type="source"><p>Source Note: The provisions of this §700.1212 adopted to be effective March 1, 2016, 41 TexReg 1122.</p></note></section></subchapter><subchapter identifier="/us/state/tx/tac/t40/p19/c700/scM"><num value="M">SUBCHAPTER M</num><heading>SUBSTITUTE-CARE SERVICES</heading><section identifier="/us/state/tx/tac/t40/p19/c700/scM/s700.1301"><num value="700.1301">§700.1301</num><heading>What are substitute care services?</heading><content>Substitute care services are the case management services, residential care services, treatment services, and other supportive services provided to ensure the safety, well being, and permanency of a child in the conservatorship of DFPS or a young adult in extended foster care. Substitute care services include the services provided to parents, caregivers, or prospective adoptive parents to achieve the permanency plan in effect for a child.</content><note type="source"><p>Source Note: The provisions of this §700.1301 adopted to be effective August 1, 2012, 37 TexReg 5632.</p></note></section><section identifier="/us/state/tx/tac/t40/p19/c700/scM/s700.1303"><num value="700.1303">§700.1303</num><heading>How are some of the key terms used in this subchapter defined?</heading><content>As used in this subchapter, the following words have the following meanings, unless the context clearly indicates otherwise:(1) The term "child" means:(A) a person under the age of 18 years in the managing conservatorship of DFPS; and(B) a young adult who was in the conservatorship of DFPS on the child's 18th birthday and who receives extended foster care services pursuant to a voluntary agreement conferring placement and care responsibility for the young adult on DFPS;(2) The terms "child care services," "treatment services," "emergency care services," and "additional programmatic services" have the same meanings as provided in Child Care Licensing minimum standards at §748.61 of this title (relating to What types of services does Licensing regulate?);(3) The term "DFPS" means Department of Family and Protective Services; and(4) The terms "foster home," "foster group home," and "general residential operation" have the same meanings as provided in §42.002, Human Resources Code.</content><note type="source"><p>Source Note: The provisions of this §700.1303 adopted to be effective August 1, 2012, 37 TexReg 5632.</p></note></section><section identifier="/us/state/tx/tac/t40/p19/c700/scM/s700.1305"><num value="700.1305">§700.1305</num><heading>What principles guide DFPS in the provision of substitute care services?</heading><content>DFPS provides substitute care services that meet the requirements of Titles IV-B and IV-E of the Social Security Act, the Child Abuse Prevention and Treatment Act, and the Texas Family Code, including requirements that:(1) a child is placed in a safe setting that is the least restrictive (most family-like) and most appropriate setting available, in close proximity to the parent's home when the child's permanency goal is reunification, consistent with the best interest and special needs of the child;(2) a child is returned to the family from which the child was removed whenever safe and appropriate; and(3) when it has been determined that a child cannot be safely reunified with the family from which the child was removed, the child is placed in a safe and permanent placement as soon as possible, consistent with the best interest of the child.</content><note type="source"><p>Source Note: The provisions of this §700.1305 adopted to be effective August 1, 2012, 37 TexReg 5632.</p></note></section><section identifier="/us/state/tx/tac/t40/p19/c700/scM/s700.1307"><num value="700.1307">§700.1307</num><heading>In what kinds of settings may a child in DFPS conservatorship be placed?</heading><content>DFPS may place a child in any of the following settings:(1) the home of a relative of the child or other person with whom the child has a long standing and significant relationship, regardless of whether the relative or other person is a licensed or verified child-care provider;(2) any "residential child-care facility" as that term is defined in Chapter 42, Human Resources Code, including a foster home, foster group home, prospective adoptive home, or general residential operation; or a comparable facility licensed or approved by another state or by an Indian Tribal licensing authority;(3) a facility, group home or foster/companion home operated, licensed, certified, or verified by another state agency, including the following:(A) the Texas Department of Aging and Disability Services;(B) the Texas Juvenile Justice Department;(C) the Texas Department of State Health Services;(D) the Texas Department of Assistive and Rehabilitative Services;(E) the Texas School for the Deaf; or(F) the Texas School for the Blind and Visually Impaired;(4) an independent living arrangement, such as an apartment, that is approved by DFPS for a child who is at least 16 years of age and is a planned aspect of the child's participation in preparation for adult living (PAL) services;(5) the home from which the child was removed as ordered by the court or as part of a plan for the reunification of the child;(6) an approved "supervised independent living" (SIL) setting that contracts with DFPS for the provision of SIL services to young adults 18 and older in extended foster care; and(7) another living arrangement as ordered by the court.</content><note type="source"><p>Source Note: The provisions of this §700.1307 adopted to be effective August 1, 2012, 37 TexReg 5632.</p></note></section><section identifier="/us/state/tx/tac/t40/p19/c700/scM/s700.1309"><num value="700.1309">§700.1309</num><heading>What factors does DFPS consider when selecting the most appropriate living arrangement for a child?</heading><content>As mandated by §475 of Title IV-E of the Social Security Act, DFPS must place a child in the least restrictive (most family-like) and most appropriate setting available, and in close proximity to the parents' home when the child's permanency goal is reunification, consistent with the best interest and special needs of the child. When determining whether a placement is consistent with the best interest and special needs of a child, DFPS considers the following factors:(1) First and foremost, a child's placement must be safe;(2) Placement with a relative or other person with whom the child has a long-standing and significant relationship is generally preferred over placement with a non-related caregiver, provided the relative or other person can provide a safe and appropriate home;(3) Siblings removed from their home should be placed together unless such placement would be contrary to the safety or well-being of any of the siblings;(4) Consideration must be given to the appropriateness of the child's current educational setting and the proximity of the placement to the school in which the child is enrolled at the time of placement;(5) The placement must be able to meet the physical and emotional needs of the child, including any special needs that the child may have, taking into consideration any available support services that might assist the placement in meeting the child's needs; and(6) Consideration must be given to the child's desires and needs for a loving and permanent home.</content><note type="source"><p>Source Note: The provisions of this §700.1309 adopted to be effective August 1, 2012, 37 TexReg 5632.</p></note></section><section identifier="/us/state/tx/tac/t40/p19/c700/scM/s700.1311"><num value="700.1311">§700.1311</num><heading>What special considerations apply when selecting a placement other than a relative or other person with whom the child has a long-standing and significant relationship?</heading><content>(a) If a child cannot be placed with a relative or other person with whom the child has a long-standing and significant relationship, DFPS will seek to place the child in a foster or adoptive home that can meet the child's needs. If DFPS is unable to locate a foster or adoptive home that can provide safe and appropriate care to the child, DFPS may place the child in any of the settings described in §700.1307 of this title (relating to In what kinds of settings may a child in DFPS conservatorship be placed?), when:(1) the child needs treatment services or additional programmatic services, other than child care services, that are not available or cannot be provided to the child in a foster home;(2) the child is placed with a sibling or parent who needs the services described in paragraph (1) of this subsection, and placement of the child with the sibling or parent in a general residential operation is deemed to be in the child's best interest;(3) the child is placed temporarily in a general residential operation because of the proximity of the placement to the child's home or school of origin, and such placement is deemed to be in the child's best interest;(4) there is no foster home immediately available for the child to be placed; or(5) the placement is ordered by a court of competent jurisdiction.(b) A child receiving emergency care services from a general residential operation may not remain in such operation beyond the maximum lengths of stay set forth in the following chart unless the child's caseworker obtains supervisory approval to extend the placement and documents the reasons for extending the placement in the child's case record:Attached Graphic(c) Notwithstanding any other provision in this section, unless ordered by a court to do so, DFPS does not place a child in:(1) a general residential operation that the Child Care Licensing Department of the Texas Health and Human Services Commission has placed on probation unless the placement is approved by the Associate Commissioner or Deputy Associate Commissioner for Child Protective Services, the Deputy Commissioner for DFPS, or the Commissioner for DFPS; or(2) a foster home whose verification has been placed on inactive status by the child-placing agency that verifies the home.(d) For youth who are placed in a residential treatment center the caseworker, as appropriate, includes in the Child's Plan of Service, transition plan goals that assist in preventing the youth from aging out of foster care from a residential treatment center. The goals must be:(1) consistent with the youth's best interest and special needs; (2) in the transition plan in the Child's Plan of Service by the youth's 17th birthday, or at the time the youth is placed in the residential treatment center when the youth's placement occurs after the youth's 17th birthday; and(3) discussed and evaluated with the youth each month.</content><note type="source"><p>Source Note: The provisions of this §700.1311 adopted to be effective August 1, 2012, 37 TexReg 5632; amended to be effective November 4, 2020, 45 TexReg 7718; amended to be effective August 10, 2022, 47 TexReg 4688.</p></note></section><section identifier="/us/state/tx/tac/t40/p19/c700/scM/s700.1313"><num value="700.1313">§700.1313</num><heading>What special considerations apply when selecting a placement for a child with intellectual disabilities and related conditions?</heading><content>(a) DFPS seeks to place children with intellectual disabilities and related conditions with a family whenever possible, with support services provided as needed to assist the child in functioning as independently as possible within the community. When DFPS is not able to find a suitable placement with a family that can meet the child's needs, DFPS may place the child with one of the following:(1) a group home or general residential operation regulated by DFPS that provides treatment services and any other specialized services that are necessary to meet the child's needs;(2) a Home and Community Based Services (HCS) foster or companion home;(3) an HCS group home; or(4) an intermediate care facility for persons with intellectual disabilities or related conditions (ICF-ID), which may include an ICF-ID operated by a local mental retardation authority, a private ICF-ID, or a state supported living center.(b) Unless ordered by a court, a child under the age of 18 years may not be placed in an HCS four-bed group home or an ICF-ID unless the placement has been approved by the Assistant Commissioner for Child Protective Services or that person's designee.(c) Regardless of where a child with intellectual disabilities or related conditions is placed, DFPS must immediately seek to place the child on all Medicaid Waiver lists for which the child is eligible.(d) When a child is placed in a group home, general residential operation or ICF-ID, DFPS must review the child's placement at least every six months and continue to seek a placement for the child in a less restrictive, more family-like setting.</content><note type="source"><p>Source Note: The provisions of this §700.1313 adopted to be effective August 1, 2012, 37 TexReg 5632.</p></note></section><section identifier="/us/state/tx/tac/t40/p19/c700/scM/s700.1315"><num value="700.1315">§700.1315</num><heading>What special considerations apply when placing a child in a nursing home?</heading><content>(a) DFPS seeks to place children with serious and complex medical needs in a family setting or other setting that is less restrictive than a nursing home when DFPS determines that the child's needs can be met in such less restrictive setting.(b) DFPS may place a child in a nursing home only when:(1) the child's health needs cannot be met in a foster home, even with intensive support services;(2) the child requires 24-hour nursing supervision and frequent medical intervention to sustain life;(3) the child's physician recommends nursing home placement as the most appropriate setting to meet the child's medical needs; and(4) all of the Department of Aging and Disability Services requirements for placing a child in a nursing home are met.(c) Unless ordered by a court, a child under the age of 18 years may not be placed in a nursing home unless the placement has been approved by the Assistant Commissioner for Child Protective Services or that person's designee.(d) When a child is placed in a nursing home, DFPS must review the child's placement at least every six months and continue to seek a placement for the child in a less restrictive, more family-like setting.</content><note type="source"><p>Source Note: The provisions of this §700.1315 adopted to be effective August 1, 2012, 37 TexReg 5632.</p></note></section><section identifier="/us/state/tx/tac/t40/p19/c700/scM/s700.1317"><num value="700.1317">§700.1317</num><heading>How are parents notified of their child's current placement?</heading><content>(a) Except as provided in this subsection, DFPS must keep the parents of a child in substitute care apprised of the current placement of their child, including any changes in placement, unless:(1) the parent's parental rights to the child have been terminated;(2) the parent cannot be located despite reasonable efforts; or(3) DFPS has been named the child's permanent managing conservator in a suit in which parental rights were not terminated and the parent is no longer involved in the life of the child.(b) DFPS is not required to provide a parent with any information regarding a child's placement that DFPS determines will pose a risk to the health or safety of the child, the child's caregiver, or any other person.</content><note type="source"><p>Source Note: The provisions of this §700.1317 adopted to be effective August 1, 2012, 37 TexReg 5632.</p></note></section><section identifier="/us/state/tx/tac/t40/p19/c700/scM/s700.1319"><num value="700.1319">§700.1319</num><heading>What is a case plan?</heading><content>DFPS must develop a case plan for every child in DFPS conservatorship no later than 45 days from the date DFPS was appointed temporary managing conservator of the child. The case plan is comprised of a "child service plan" and, when applicable, a "family service plan." The case plan must conform to all relevant requirements in Titles IV-B and IV-E of the Social Security Act, and Chapter 263 of the Texas Family Code.</content><note type="source"><p>Source Note: The provisions of this §700.1319 adopted to be effective August 1, 2012, 37 TexReg 5632.</p></note></section><section identifier="/us/state/tx/tac/t40/p19/c700/scM/s700.1321"><num value="700.1321">§700.1321</num><heading>What are the requirements for a child service plan?</heading><content>(a) Except as otherwise provided in this section, DFPS develops a child service plan for every child in DFPS conservatorship and each young adult in extended foster care. At a minimum, the child service plan must address all case plan requirements in §475 of Title IV-E of the Social Security Act that are not addressed in the family service plan. If the child resides in a residential child-care facility regulated by DFPS, the child service plan may incorporate the service plan required to be developed for the child under Child Care Licensing minimum standards in Chapter 748 of this title (relating to General Residential Operations), or Chapter 749 of this title (relating to Child-Placing Agencies), as applicable.(b) DFPS involves each of the following in the development of the child service plan, and in all reviews and updates of the plan:(1) the child's caseworker in the DFPS conservatorship unit and the DFPS worker supervising the child's placement, if different than the child's conservatorship caseworker;(2) the child, unless the child is too young to participate or cannot participate in any meaningful way because of a physical or mental illness or disability;(3) each parent of the child, unless such parent:(A) cannot be located, despite due diligence;(B) has had parental rights to the child terminated; or(C) refuses to participate;(4) the child's substitute caregiver (e.g., a relative, the child's foster parent, or a representative of the general residential operation where the child is placed);(5) each person appointed by the court to serve as the child's attorney ad litem, guardian ad litem, or court-appointed special advocate (CASA);(6) a prospective adoptive family with whom the child has been placed for adoption; and(7) when appropriate, other family members, professionals, and volunteers who are or will be providing services or supports to the child or the child's family.(c) DFPS provides a copy of the relevant portions of the child service plan to:(1) each person described in subsection (b)(2) - (6) of this section, regardless of whether such person participated in the development of the plan; and(2) each person described in subsection (b)(7) of this section who participated in the development of the plan.(d) When a child in DFPS conservatorship is placed in the home of a parent from whom the child was removed, DFPS is not required to develop a child service plan, but must ensure that all case plan requirements in §475 of Title IV-E of the Social Security Act are addressed in the family service plan.</content><note type="source"><p>Source Note: The provisions of this §700.1321 adopted to be effective August 1, 2012, 37 TexReg 5632.</p></note></section><section identifier="/us/state/tx/tac/t40/p19/c700/scM/s700.1323"><num value="700.1323">§700.1323</num><heading>Under what circumstances does DFPS develop a family service plan and what are the requirements for the plan?</heading><content>(a) DFPS must develop an initial family service plan unless the court has waived the requirement for a service plan as provided under the following provisions of the Texas Family Code:(1) §262.2015, based on a finding that the parent has subjected the child to aggravated circumstances; or(2) §263.1015, based on a finding that the child was abandoned without identification and the child's identity cannot be determined.(b) The family service plan must meet all the service plan requirements under Chapter 263, Texas Family Code, including requirements for parental participation in the development of the plan and any subsequent reviews and updates of the plan.(c) If DFPS locates a parent whose identity or location was previously unknown despite due diligence, DFPS must develop an initial family service plan with such parent within 45 days of learning the parent's whereabouts.(d) DFPS is no longer required to develop a family service plan for any parent whose rights to a child in substitute care have been terminated.(e) Following a final order awarding permanent managing conservatorship to DFPS without termination of parental rights, DFPS may continue to develop a family service plan that is consistent with the child's permanency goals and any orders of the court, but is not required to develop a service plan for a parent who is no longer involved in the life of the child.</content><note type="source"><p>Source Note: The provisions of this §700.1323 adopted to be effective August 1, 2012, 37 TexReg 5632.</p></note></section><section identifier="/us/state/tx/tac/t40/p19/c700/scM/s700.1325"><num value="700.1325">§700.1325</num><heading>How frequently is a case plan reviewed and updated?</heading><content>DFPS reviews and updates a case plan when the child has been in care for five months, nine months, and at least every six months thereafter, and more often as necessary to comply with Child Care Licensing minimum standards or the residential child-care contract relating to service planning, or to address a change in placement, change in permanency goal, or other significant change in circumstances. The case plan review includes a review of the:(1) child service plan; and(2) family service plan unless DFPS is no longer developing a family service plan as provided under §700.1323 of this title (relating to Under what circumstances does DFPS develop a family service plan and what are the requirements for the plan?).</content><note type="source"><p>Source Note: The provisions of this §700.1325 adopted to be effective August 1, 2012, 37 TexReg 5632.</p></note></section><section identifier="/us/state/tx/tac/t40/p19/c700/scM/s700.1327"><num value="700.1327">§700.1327</num><heading>What are DFPS's responsibilities to siblings who are not placed together following a removal from the home?</heading><content>DFPS must provide for frequent visitation or other ongoing interaction between siblings, unless:(1) the court has ordered otherwise; or(2) DFPS has determined and documented in the child service plan that frequent visitation or other ongoing interaction would be contrary to the safety or well-being of any of the siblings and the court has not ordered that visitation or contact between the siblings occur.</content><note type="source"><p>Source Note: The provisions of this §700.1327 adopted to be effective August 1, 2012, 37 TexReg 5632.</p></note></section><section identifier="/us/state/tx/tac/t40/p19/c700/scM/s700.1329"><num value="700.1329">§700.1329</num><heading>What are DFPS's responsibilities for ensuring appropriate medical care for children in DFPS conservatorship?</heading><content>(a) DFPS has a duty to ensure that every child in DFPS conservatorship receives appropriate medical care, including appropriate physical, dental, behavioral, vision, and allied health care such as physical therapy, occupational therapy, speech therapy, dietetic and other health-related services. Each child's medical care must include:(1) emergency medical care whenever needed;(2) timely examinations and treatments of non-emergency injuries and illness; and(3) regular preventive care appropriate to the child's age and condition, including immunizations and tuberculin (TB) tests.(b) Consent for medical care provided to children in DFPS conservatorship must be provided in accordance with Chapter 266, Texas Family Code, and relevant court orders or agreements between DFPS and the person designated to provide consent.</content><note type="source"><p>Source Note: The provisions of this §700.1329 adopted to be effective August 1, 2012, 37 TexReg 5632.</p></note></section><section identifier="/us/state/tx/tac/t40/p19/c700/scM/s700.1331"><num value="700.1331">§700.1331</num><heading>What are DFPS's responsibilities relating to discipline of a child in DFPS conservatorship?</heading><content>(a) As the managing conservator of the child, DFPS has the right and duty under the Texas Family Code to maintain reasonable discipline of the child. When determining appropriate methods of discipline for a child in DFPS conservatorship, DFPS must adhere to the following principles:(1) Children must be treated with dignity and respect at all times;(2) The primary purpose of discipline must be to encourage safe and appropriate behavior, not to punish the child;(3) Discipline must suit the particular child's needs and circumstances and must take into account the child's age, developmental level, specific misbehavior, previous reaction to discipline, and history, including any history of physical or emotional abuse; and(4) No child in DFPS's managing conservatorship may be deprived of basic necessities or subjected to cruel, harsh, unusual, or unnecessary punishment.(b) DFPS has the right and the duty to ensure that any caregiver with whom a child is placed is informed of any special considerations that should be observed when disciplining the child, provided that DFPS may not require that a caregiver violate any Child Care Licensing minimum standards or other law related to discipline.</content><note type="source"><p>Source Note: The provisions of this §700.1331 adopted to be effective August 1, 2012, 37 TexReg 5632.</p></note></section><section identifier="/us/state/tx/tac/t40/p19/c700/scM/s700.1333"><num value="700.1333">§700.1333</num><heading>What are DFPS's responsibilities for a child in its conservatorship who is missing or abducted from a placement?</heading><content>(a) When a child in DFPS's conservatorship runs away, is abducted, or is otherwise missing from the child's authorized placement, DFPS must follow all procedures outlined in §264.123, Texas Family Code, to locate the child and cooperate with law enforcement if the child has been the victim of any suspected crime while missing from the child's authorized placement.(b) When an older youth in DFPS conservatorship refuses to remain in a foster care placement, but the older youth's whereabouts are known, the child's caseworker must:(1) maintain as much face-to-face contact with the youth as possible;(2) attempt to convince the youth to return to foster care;(3) make all reasonable efforts to locate an authorized placement that can meet the child's needs; and(4) take any other steps as appropriate to ensure the child's safety and well-being.(c) Notwithstanding any other provisions of this chapter, DFPS does not pay the costs of an unauthorized independent-living arrangement, which consists of a child or youth living in a residential situation without the permission of DFPS or the court.</content><note type="source"><p>Source Note: The provisions of this §700.1333 adopted to be effective August 1, 2012, 37 TexReg 5632.</p></note></section><section identifier="/us/state/tx/tac/t40/p19/c700/scM/s700.1334"><num value="700.1334">§700.1334</num><heading>What strategies does DFPS implement to reduce the number of incidents in which a child in its conservatorship runs away?</heading><content>(a) DFPS has established policy and protocols that guide caseworkers in providing support and information to kinship and other non-contracted caregivers of children in DFPS conservatorship to prevent and reduce the occurrence of runaway incidents. The protocols:(1) address child safety while promoting normalcy;(2) include guidelines for identifying children who might be at risk of running away from their placement;(3) require caregivers to use the reasonable and prudent parent standard when making decisions regarding the child; and(4) are trauma-informed.(b) DFPS contracts with residential child care providers include a provision that requires the providers to maintain policy and protocols to prevent and reduce the occurrence of runaway incidents by children in DFPS conservatorship that are placed in their operations and/or foster homes. The contracts require that the protocols:(1) address child safety while promoting normalcy;(2) include guidelines for identifying children who might be at risk of running away from their placement;(3) require caregivers to use the reasonable and prudent parent standard when making decisions regarding the child; and(4) be trauma-informed.(c) In this section, the following terms have the following meaning:(1) "Normalcy" has the same definition as specified in §748.701 of title 26 (relating to What is "normalcy"?) and §749.2601 of title 26 (relating to What is "normalcy"?). For purposes of this DFPS section, "age-appropriate normalcy activity" means an activity or experience as defined in Texas Family Code §264.001(1).(2) "Reasonable and prudent parent standard" has the same definition as specified in §748.705 of title 26 (relating to What is the "reasonable and prudent parent standard"?) and §749.2605 of title 26 (relating to What is the "reasonable and prudent parent standard"?).(3) "Runaway" incident is defined as a type of unauthorized absence where a child who has left the child's placement on the child's own accord and without permission from the caregiver, does not appear to have the intent to return and is unable to be located. An unauthorized absence in which the child has temporarily left the placement without permission from the caregiver but intends to return, is not considered a runaway incident for purposes of this DFPS section. For the definition of an unauthorized absence, see §748.301(3) of title 26 (relating to What do certain terms mean in this subchapter?) and §749.501(3) of title 26 (relating to What do certain terms mean in this subchapter?) for the definition of an unauthorized absence.(4) "Trauma-informed" has the same definition as specified in §748.43(70) of title 26 (relating to What do certain words and terms mean in this chapter?) and §749.43(72) of title 26 (relating to What do certain words and terms mean in this chapter?).</content><note type="source"><p>Source Note: The provisions of this §700.1334 adopted to be effective December 21, 2020, 45 TexReg 9242.</p></note></section><section identifier="/us/state/tx/tac/t40/p19/c700/scM/s700.1335"><num value="700.1335">§700.1335</num><heading>What is the Treatment Foster Family Care Program?</heading><content>(a) Treatment Foster Family Care is a program designed to provide innovative, multi-disciplinary treatment services to a child or youth in a highly-structured family home environment.(b) Caregivers who participate in the Treatment Foster Family Care Program have specialized training in providing services to children with mental health and/or socio-behavioral needs that cannot be met in traditional foster care settings, including:(1) 24-hour supervision to ensure the child's safety and sense of security, which includes frequent one-to-one monitoring with the ability to provide immediate on site response;(2) individualized, strengths-based therapeutic services and case management;(3) time-limited services which include wrap-around services designed to transition children to a permanent and stable placement; and(4) other training specified in the contract.(c) A Treatment Foster Family Care home includes:(1) one or two foster parents who are highly-trained to meet the specific needs of this child population. Single parents can participate as long as quality care can be assured;(2) a limitation of no more than two foster children at one time; and(3) other characteristics and limitations specified in the contract.(d) Child placing agencies providing Treatment Foster Family Care Services must:(1) have a 24 hour on-call crisis person available to provide in-home crisis intervention and placement stabilization services, available to the child and family;(2) a formal respite system, both routine and available upon request, when determined appropriate;(3) a standardized case load to support this population of children; and(4) other requirements specified in the contract.</content><note type="source"><p>Source Note: The provisions of this §700.1335 adopted to be effective September 1, 2017, 42 TexReg 4307; amended to be effective August 10, 2022, 47 TexReg 4688.</p></note></section><section identifier="/us/state/tx/tac/t40/p19/c700/scM/s700.1337"><num value="700.1337">§700.1337</num><heading>What is the Temporary Emergency Placement (TEP) Program?</heading><content>(a) The Temporary Emergency Placement Program is designed to provide highly-structured quality residential care and services when DFPS encounters high needs children for whom the Department is working to identify a safe and suitable longer-term placement to meet their unique needs.(b) Caregivers who participate in the Temporary Emergency Treatment Program have specialized training in providing services to children with mental health, socio-behavioral needs and medical needs, including 24-hour supervision to ensure the child's safety and sense of security, which includes frequent one-to-one monitoring with the ability to provide immediate on site response and any other training requirement specified in contract.(c) Contractors providing services through the Temporary Emergency Placement Program must:(1) have experience providing residential-child care services to high needs children;(2) reserve placement slots for the exclusive use of properly referred children determined eligible for the TEP program by DFPS;(3) be prepared to admit children who might require TEP services at any time, 24 hours a day, 365 days a year;(4) accept all properly referred children up to a predetermined number of placements as outlined in the contract with DFPS; and(5) comply with all required terms and conditions set forth in the contract with DFPS.</content><note type="source"><p>Source Note: The provisions of this §700.1337 adopted to be effective September 1, 2017, 42 TexReg 4307.</p></note></section><section identifier="/us/state/tx/tac/t40/p19/c700/scM/s700.1351"><num value="700.1351">§700.1351</num><heading>Which laws govern the provision of notice of significant events for a child in the DFPS' managing conservatorship?</heading><content>(a) Except as otherwise provided and clarified in these rules, requirements for the provision of notice of significant events for a child in DFPS' conservatorship are governed by the Texas Family Code, including but not limited to §§264.018, 264.107 and 264.123. Any terms not explicitly defined herein have the meaning given to them by the Texas Family Code or other law, or shall be construed according to their plain and ordinary meaning.(b) DFPS must follow any applicable legal restrictions on its ability to share information, such as 42 C.F.R. Subpart 2 or §700.204(c) of this title (relating to Redaction of Records Prior to Release).</content><note type="source"><p>Source Note: The provisions of this §700.1351 adopted to be effective June 1, 2016, 41 TexReg 3753.</p></note></section><section identifier="/us/state/tx/tac/t40/p19/c700/scM/s700.1353"><num value="700.1353">§700.1353</num><heading>What are the purpose and scope of this division?</heading><content>(a) The purpose of this division is to clarify and further interpret §264.018 of the Texas Family Code, in accordance with §264.018(l).(b) The scope of this division is limited to clarification and interpretation of §264.018, Texas Family Code. Other requirements that pertain to notice, including but not limited to §264.107(g) and §264.123 continue to be governed by those provisions, and DFPS must continue to comply with all requirements associated with those statutes and other applicable law.</content><note type="source"><p>Source Note: The provisions of this §700.1353 adopted to be effective June 1, 2016, 41 TexReg 3753.</p></note></section><section identifier="/us/state/tx/tac/t40/p19/c700/scM/s700.1355"><num value="700.1355">§700.1355</num><heading>What is a "significant event" requiring notice pursuant to this division?</heading><content>(a) A "significant event" for which notice is required under this division includes:(1) a placement change, including failure by DFPS to locate an appropriate placement for at least one night;(2) a significant change in medical condition, including mental or behavioral health conditions;(3) an initial prescription of a psychotropic medication or a change in dosage of a psychotropic medication, which includes titration or discontinuation of the medication;(4) significant events in school, including:(A) a major change in school performance, including any failing grade in a reporting period that jeopardizes the student's advancement to the next grade level;(B) a serious disciplinary event; and(C) any event for which the school district is required by §25.007, Texas Education Code, to provide notice to DFPS; and(5) additional important events, including:(A) a decision by the person authorized to provide medical consent on behalf of the child pursuant to §266.004, Texas Family Code, not to follow a medical recommendation, including recommendations related to medication;(B) an investigation by Residential Child-Care Licensing or Child Protective Services of alleged abuse or neglect, regardless of whether the subject child is alleged to have been the victim or perpetrator of abuse or neglect;(C) the use of emergency behavior intervention, including personal restraints, emergency medication, seclusion, mechanical restraints, or chemical restraints, if DFPS receives notice about such use from the individual or entity who used the emergency behavior intervention; and(D) the involvement of the child with law enforcement or juvenile justice, regardless of whether the child is involved as a victim or alleged offender.(b) For the purposes of this section "emergency behavior intervention" and related terms such as "personal restraint", "emergency medication", "seclusion", "mechanical restraint", and "chemical restraint" if they are utilized in a general residential operation or child-placing agency have the meaning given to them by Chapter 748 of this title (relating to Minimum Standards for General Residential Operations) and Chapter 749 of this title (relating to Minimum Standards for Child-Placing Agencies), including §748.2401 and §749.2001 of this title (relating to What do certain words mean in this subchapter?). In facilities other than GROs and CPAs, emergency behavior intervention and related terms are defined by the relevant standards and laws in effect for the facility or operation in which the intervention is used.(c) Nothing in this section shall be construed to create or enlarge applicable legal requirements for the individuals and entities listed in §700.1357 of this title (relating to Who must receive notice of significant events under this division?) to provide notice of a significant event to DFPS. Such requirements are governed by other applicable law, including but not limited to Chapter 748 of this title and Chapter 749 of this title as those standards are promulgated by the Child-Care Licensing Division pursuant to Chapter 42, Texas Human Resources Code and apply to general residential operations and child-placing agencies.(d) Nothing in this section shall be construed to permit the use of personal restraints, emergency medication, seclusion, mechanical restraints, chemical restraints, or any similar behavioral intervention if not already permitted by law.</content><note type="source"><p>Source Note: The provisions of this §700.1355 adopted to be effective June 1, 2016, 41 TexReg 3753.</p></note></section><section identifier="/us/state/tx/tac/t40/p19/c700/scM/s700.1357"><num value="700.1357">§700.1357</num><heading>Who must receive notice of significant events under this division?</heading><content>The following individuals and entities must receive notice of significant events under this division:(1) the child's parent;(2) an attorney ad litem appointed for the child under Texas Family Code Chapter 107;(3) a guardian ad litem appointed for the child under Texas Family Code Chapter 107;(4) a volunteer advocate appointed for the child under Texas Family Code Chapter 107;(5) the parent's attorney, if applicable;(6) the licensed administrator of the child-placing agency responsible for placing the child or the licensed administrator's designee;(7) a foster parent, prospective adoptive parent, relative of the child providing care to the child, or director of the group home or general residential operation where the child is residing; and(8) any other person determined by a court to have an interest in the child's welfare.</content><note type="source"><p>Source Note: The provisions of this §700.1357 adopted to be effective June 1, 2016, 41 TexReg 3753.</p></note></section><section identifier="/us/state/tx/tac/t40/p19/c700/scM/s700.1359"><num value="700.1359">§700.1359</num><heading>When must notice of a significant event be provided?</heading><content>(a) Except as provided by subsections (b) and (c) of this section, notice of a significant event must be provided to the parties enumerated in §700.1357 of this title (relating to Who must receive notice of significant events under this division?) as soon as possible, but not later than the 10th day DFPS becomes aware of the event.(b) Notwithstanding subsection (a) of this section, DFPS shall make a reasonable effort to notify a child's parent within 24 hours of a significant change in the child's medical condition, the enrollment or participation of the child in a drug research program under §266.0041, Texas Family Code, and an initial prescription of psychotropic medication.(c) Notwithstanding subsection (a) of this section, except in a situation that constitutes an emergency for which DFPS receives less than 48 hours of notice, DFPS shall provide notice as soon as possible, but at a minimum at least 48 hours prior to changing a child's residential child-care facility to the parties enumerated in §700.1357 of this title.(d) Nothing in subsection (c) shall be construed to relieve DFPS of its obligation to comply with requirements for consulting with or providing discharge notices to specified parties in accordance with §264.107 and §264.120, Texas Family Code, and any associated guidance, protocols or regulations that currently exist or may subsequently be developed.</content><note type="source"><p>Source Note: The provisions of this §700.1359 adopted to be effective June 1, 2016, 41 TexReg 3753.</p></note></section></subchapter><subchapter identifier="/us/state/tx/tac/t40/p19/c700/scN"><num value="N">SUBCHAPTER N</num><heading>POLICIES REGARDING CHILDREN IN DFPS'S CONSERVATORSHIP AND HIV TESTING AND CARE</heading><section identifier="/us/state/tx/tac/t40/p19/c700/scN/s700.1401"><num value="700.1401">§700.1401</num><heading>When must a child in DFPS conservatorship be tested for HIV infection?</heading><content>(a) A child in the conservatorship of DFPS should be tested for HIV infection in accordance with the Texas Health Steps Medical Checkup Periodicity Schedule, Comprehensive Health Screening, or at any other time the child's health-care provider determines the test is medically indicated.(b) DFPS must request that the health-care provider test the child for HIV infection if the child has a history of sexual abuse or other risk factor, or if the child requests to be tested.</content><note type="source"><p>Source Note: The provisions of this §700.1401 adopted to be effective March 1, 2015, 40 TexReg 833.</p></note></section><section identifier="/us/state/tx/tac/t40/p19/c700/scN/s700.1402"><num value="700.1402">§700.1402</num><heading>What happens if a child in DFPS conservatorship tests positive for HIV infection?</heading><content>Children in the conservatorship of DFPS who have HIV infection receive counseling, treatment, and medical management through the Texas STAR Health Medicaid managed care program. DFPS will ensure that age-appropriate post-test counseling and information is provided for children with HIV infection and their caregivers in accordance with the Texas Health and Safety Code, §81.109.</content><note type="source"><p>Source Note: The provisions of this §700.1402 adopted to be effective March 1, 2015, 40 TexReg 833.</p></note></section><section identifier="/us/state/tx/tac/t40/p19/c700/scN/s700.1403"><num value="700.1403">§700.1403</num><heading>Who must DFPS notify regarding a child's HIV infection?</heading><content>If a child in DFPS conservatorship has tested positive for HIV infection, DFPS must notify the following parties of the child's condition:(1) the child's legal parents (if parental rights have not been terminated and their whereabouts are known);(2) prospective and current foster parents, 24-hour child-care providers, prospective adoptive parents, or relatives with whom the child has been placed or with whom DFPS plans to place the child; and(3) a person authorized to provide medical consent on the child's behalf;</content><note type="source"><p>Source Note: The provisions of this §700.1403 adopted to be effective March 1, 2015, 40 TexReg 833.</p></note></section><section identifier="/us/state/tx/tac/t40/p19/c700/scN/s700.1404"><num value="700.1404">§700.1404</num><heading>Who may DFPS notify regarding a child's HIV status or test result?</heading><content>(a) If a child in DFPS conservatorship has tested positive for HIV infection, DFPS may notify the following parties of the child's condition:(1) a physician, nurse, or other professional who has a legitimate need to know the information in order to provide for the child's health and welfare;(2) a court having jurisdiction of a proceeding involving the child or a proceeding involving a person suspected of abusing the child, if requested;(3) pursuant to law or court order, any person with a legal right to obtain the information; and(4) the child.(b) If a child in DFPS conservatorship has tested negative for HIV infection, the parties listed in subsection (a) of this section and §700.1403 of this title (relating to Who must DFPS notify regarding a child's HIV infection?) may be notified if the party requests the information or if DFPS determines the information is needed to provide for the child's health or welfare.</content><note type="source"><p>Source Note: The provisions of this §700.1404 adopted to be effective March 1, 2015, 40 TexReg 833.</p></note></section><section identifier="/us/state/tx/tac/t40/p19/c700/scN/s700.1405"><num value="700.1405">§700.1405</num><heading>May anyone else be told about the child's HIV status?</heading><content>Information regarding a child's HIV status is confidential and should not be shared with any other individual or entity with the exception of release to the agencies, individuals or types of individuals listed in §700.1403 of this title (relating to Who must DFPS notify regarding a child's HIV infection?) and §700.1404 of this title (relating to Who may DFPS notify regarding a child's HIV status or test result?), or under other applicable law or rule.</content><note type="source"><p>Source Note: The provisions of this §700.1405 adopted to be effective March 1, 2015, 40 TexReg 833.</p></note></section></subchapter><subchapter identifier="/us/state/tx/tac/t40/p19/c700/scO"><num value="O">SUBCHAPTER O</num><heading>FOSTER AND ADOPTIVE HOME DEVELOPMENT</heading><section identifier="/us/state/tx/tac/t40/p19/c700/scO/s700.1501"><num value="700.1501">§700.1501</num><heading>Decision on Foster Home Applications</heading><content>(a) To be accepted as a foster home, the home must meet the department's minimum standards, and the Texas Department of Family and Protective Services (DFPS) must have determined, through the foster-home screening, that the parents can provide adequate care for foster children in the department's managing conservatorship and that they will follow the department's policies for discipline of these children as specified in §700.1502(2)(K) of this title (relating to Foster and Adoptive Home Inquiry and Screening).(b) Relative homes verified to provide foster care services to related children must meet the same requirements as non-relative foster homes. The Residential Child-Care Licensing Division of DFPS will consider requests for waivers and variances to minimum standards for relative foster homes on a case-by-case basis in accordance with applicable statutes, rules, and policies on waiver and variance requests for foster homes.</content><note type="source"><p>Source Note: The provisions of this §700.1501 adopted to be effective October 31, 1984, 9 TexReg 5431; amended to be effective August 15, 1990, 15 TexReg 4031; transferred effective September 1, 1992, as published in the Texas Register September 11, 1992, 17 TexReg 6279; amended to be effective June 15, 1997, 22 TexReg 4641; amended to be effective January 1, 1998, 22 TexReg 12547; amended to be effective March 1, 2001, 26 TexReg 1351; amended to be effective March 1, 2012, 37 TexReg 714.</p></note></section><section identifier="/us/state/tx/tac/t40/p19/c700/scO/s700.1502"><num value="700.1502">§700.1502</num><heading>Foster and Adoptive Home Inquiry and Screening</heading><content>The Texas Department of Family and Protective Services' (DFPS') policies for responding to inquiries and screening and approval of foster and adoptive homes are as follows:(1) Responding to inquiries. DFPS receives inquiries as a result of recruitment efforts by staff, volunteers, foster and adoptive parents, foster and adoptive parent associations, and other organizations that work with DFPS. When inquiries are received, staff should provide a written response within 10 working days to provide families information about the process of becoming a foster or adoptive parent with DFPS.(2) Screening. When screening prospective foster and adoptive parents, DFPS considers both the Minimum Standards promulgated by Residential Child Care Licensing (RCCL) and the following factors:(A) Age. Applicants to foster or adopt must be at least 21 years of age. Age is evaluated in relation to the applicant's maturity.(B) Marriage.(i) Regarding foster parents, DFPS follows the Minimum Standards promulgated by RCCL that govern married applicants. In order for one spouse to be a foster parent, both spouses must be verified to provide foster care.(ii) Regarding adoptive parents:(I) If an applicant is married but not separated and wishes to submit an application, the applicant's spouse must join in the application and the license or declaration of marriage must be recorded.(II) Except as provided in subclause (III) of this clause, if an applicant is separated but not divorced, he or she may submit an application, but is required to finalize the divorce before the home can be approved.(III) If an applicant seeking to adopt does not have a finalized divorce, the Assistant Commissioner of Child Protective Services, or designee, may grant a waiver if it is in the best interest of the child to do so. Relevant factors in assessing whether to grant a waiver include, but are not limited to, any family relationship between the applicant and the child, any other significant prior relationship between the applicant and the child, and the applicant's ability to meet the child's particular needs as evidenced in an adoptive home screening.(C) Length of marriage. DFPS has a preference that couples should be married at least two years before adopting. However, DFPS does accept adoption applications from couples who have not been married for at least two years. In this situation, an individual conducting the home study must assess the stability of the couple's relationship and their reason for wanting to adopt a child, this will include looking at any current or prior family or other significant relationships between the applicant and the child. This information will be used by the individual conducting the home study in determining whether the home study will be initially approved. Once the home study is initially approved, it must also be approved by a Child Placement Management Staff.(D) Single Parents. Single parents are evaluated in terms of their ability to nurture and provide for a child without assistance of a spouse. Placement with a single parent is considered the best plan for some children.(E) Disabilities. Disabilities are evaluated in relation to the applicants' adjustment to the disability and the limits, if any, that the disability imposes on the applicants' ability to care for a child.(F) Residence. Adoptive home screenings are started only if the applicant(s) will live in the community long enough for DFPS to complete a screening and make a placement. Exceptions are made in unusual situations involving a child with special needs if another licensed child placing agency in the new community agrees to complete the adoption services.(G) Adoption by foster families. Foster families are evaluated using the same criteria applied to any other adoptive applicants. The home screening must be updated to meet the minimum standards for adoptive homes. The evaluation focuses on the family's demonstrated skill and ability to parent the children DFPS has placed in the family's care and determines the attachment the family and the child have to each other.(H) Finances. Although there are no specific income requirements, the applicants must have enough income, and be able to manage it well enough, to meet the child's basic material needs. Income is also evaluated in terms of past and present management.(I) Health. The applicants' physical, mental, and emotional health must be sufficient to assume parenting responsibilities. Physical, mental, and emotional conditions are considered to protect the child against another loss of parenting through death, incapacity, or repetition of abuse or neglect.(J) Religion. There are no specific religion requirements. Applicants are evaluated based on:(i) Their willingness to respect and encourage a child's religious affiliation.(ii) Their willingness to provide a child opportunity for religious, spiritual, and ethical development.(iii) The health protection they plan to give a child if their religious beliefs prohibit certain medical treatment.(K) Discipline. Physical discipline may not be used on a child in any DFPS foster or adoptive home prior to consummation. DFPS evaluates applicants based on their willingness and ability to:(i) recognize and respect differences in children, especially children who have been abused or neglected;(ii) employ methods of discipline that suit the particular needs and circumstances of each child; and(iii) employ methods of discipline that conform to the policies specified in the Minimum Standards promulgated by Residential Child Care Licensing.(L) Criminal history. Criminal history background checks must be completed on all prospective foster and adoptive parents and the members of their households who are 14 years old or older and not under the legal conservatorship of DFPS. Criminal history background checks are conducted in accordance with the criminal history rules promulgated by the Child Care Licensing Division of DFPS.(M) Adoptive home screenings - fertility. Fertility assessments may be needed if DFPS believes the couple needs to know more about their fertility before they adopt a child. The couple's fertility is important only in relation to resolution of their feelings about their infertility and their ability to accept and parent a child not born to them.(N) Citizenship and immigration. Only U.S. citizens, permanent residents, or other qualified aliens (as defined in 8 U.S.C. §1641(b)) can be approved as foster or adoptive parents. If an applicant who seeks to adopt a child does not have the required immigration status, the Assistant Commissioner of Child Protective Services or a designee, may grant a waiver if it is in the best interest of the child to do so. Relevant factors in assessing whether to grant a waiver include any family relationship or other significant prior relationship between the child and the applicant, and the applicant's ability to meet the child's particular needs.</content><note type="source"><p>Source Note: The provisions of this §700.1502 adopted to be effective October 31, 1984, 9 TexReg 5431; amended to be effective February 28, 1986, 11 TexReg 857; amended to be effective September 23, 1986, 11 TexReg 3900; amended to be effective August 15, 1990, 15 TexReg 4031; transferred effective September 1, 1992, as published in the Texas Register September 11, 1992, 17 TexReg 6279; amended to be effective January 1, 1994, 18 TexReg 8975; amended to be effective September 1, 1994, 19 TexReg 5967; amended to be effective August 1, 1996, 21 TexReg 3213; amended to be effective June 15, 1997, 22TexReg 4641; amended to be effective January 1, 1998, 22 TexReg 12547; amended to be effective May 1, 2000, 25 TexReg 3295; amended to be effective March 1, 2001, 26 TexReg 1351; amended to be effective March 1, 2013, 38 TexReg 988.</p></note></section><section identifier="/us/state/tx/tac/t40/p19/c700/scO/s700.1504"><num value="700.1504">§700.1504</num><heading>Approval of Foster and/or Adoptive Home Study</heading><content>The Texas Department of Protective and Regulatory Services (TDPRS) evaluates applicants based on the applicants' ability to care for specific children needing placement. TDPRS approves home studies based on an evaluation of the applicants' total situation; their flexibility in all areas of life; their sensitivity and understanding of children's needs, and their ability to meet the developmental, maintenance, and protection needs of children in TDPRS's managing conservatorship. The written assessment or home study of the family must be completed within four months beginning on the date all information and documentation is returned by the family or on the date of the last pre-service training session. If these two dates are different, staff may use the later date to determine the time frame for completion of the home study. Staff must submit the home study to the supervisor for approval. Supervisors must approve or disapprove the home study within 30 days. Staff must inform the family that they need to return all information and necessary documents within two weeks after pre-service training has ended or their case will be closed. Staff need to inform the family that they may re-open their application to become adoptive parents at a later time, if their case was closed for failure to return all necessary documents. Families who reapply within one year of completing pre-service may need to complete an overview training. This decision must be made by the supervisor. Reasons for this decision must be documented in the family's record. Families who reapply after one year of pre-service will need to attend pre-service training again.</content><note type="source"><p>Source Note: The provisions of this §700.1504 adopted to be effective October 31, 1984, 9 TexReg 5431; transferred effective September 1, 1992, as published in the Texas Register September 11, 1992, 17 TexReg 6279; amended to be effective January 1, 1998, 22 TexReg 12547.</p></note></section><section identifier="/us/state/tx/tac/t40/p19/c700/scO/s700.1505"><num value="700.1505">§700.1505</num><heading>Administrative Review</heading><content>(a) Adoptive recruits and applicants are entitled to an administrative review of the decision not to approve their adoptive home for placement of a child.(b) Foster parents and foster parent recruits and applicants have a right to an administrative review of the decision to not approve their application to be foster parents or to close the foster home.</content><note type="source"><p>Source Note: The provisions of this §700.1505 adopted to be effective October 31, 1984, 9 TexReg 5431; transferred effective September 1, 1992, as published in the Texas Register September 11, 1992, 17 TexReg 6279; amended to be effective June 15, 1997, 22 TexReg 4641; amended to be effective January 1, 1998, 22 TexReg 12547.</p></note></section><section identifier="/us/state/tx/tac/t40/p19/c700/scO/s700.1506"><num value="700.1506">§700.1506</num><heading>Monitoring of Foster Parent Performance</heading><content>The Texas Department of Protective and Regulatory Services (TDPRS) shall monitor the performance of a foster parent who has been verified by TDPRS. The method for performance monitoring must include objective criteria by which the foster parent can be assessed and references to the criteria will be in the agreement between TDPRS and the foster parent.</content><note type="source"><p>Source Note: The provisions of this §700.1506 adopted to be effective January 1, 1998, 22 TexReg 12547.</p></note></section></subchapter><subchapter identifier="/us/state/tx/tac/t40/p19/c700/scP"><num value="P">SUBCHAPTER P</num><heading>SERVICES AND BENEFITS FOR TRANSITION PLANNING TO A SUCCESSFUL ADULTHOOD</heading><section identifier="/us/state/tx/tac/t40/p19/c700/scP/s700.1601"><num value="700.1601">§700.1601</num><heading>What is the Preparation for Adult Living (PAL) Program?</heading><content>The Preparation for Adult Living (PAL) Program provides services and benefits to help prepare young people to live independently when they leave foster care. PAL Program funds can be used to provide any of the services and benefits authorized by the federal Chafee Foster Care Independence Program, the requirements of which must be met. Funding for the PAL Program is limited to the state, local, and federal funds allocated to PRS for this program.</content><note type="source"><p>Source Note: The provisions of this §700.1601 adopted to be effective April 16, 2001, 26 TexReg 2753.</p></note></section><section identifier="/us/state/tx/tac/t40/p19/c700/scP/s700.1602"><num value="700.1602">§700.1602</num><heading>Whom is the PAL Program designed to serve?</heading><content>(a) The PAL Program is designed to serve the following young people:(1) those who are at least 16 years old and likely to remain in foster care until at least age 18; and(2) those who are younger than 21 years old and who left foster care when they were at least age 18.(b) With funding availability, appropriate services may also be extended to individuals as young as 14 years old who are likely to remain in foster care until at least age 18.</content><note type="source"><p>Source Note: The provisions of this §700.1602 adopted to be effective April 16, 2001, 26 TexReg 2753.</p></note></section><section identifier="/us/state/tx/tac/t40/p19/c700/scP/s700.1603"><num value="700.1603">§700.1603</num><heading>What types of services and benefits are available to PAL Program participants?</heading><content>(a) The program provides an individual assessment of the participant's general readiness to live independently as an adult.(b) The program provides training to help young people prepare for independent living once they leave foster care and addresses topics such as the following:(1) personal and interpersonal skills;(2) employment and job skills;(3) money management;(4) housing and transportation;(5) personal health; and(6) planning for the future.(c) The program may provide monetary assistance and related services to eligible young people for transitional expenses and independent living needs. The types and amounts of assistance must be established in policy and are subject to the availability of funds. Monetary assistance may include:(1) a transitional living allowance;(2) a household supplies stipend; and(3) assistance with room and board for young people who have left foster care because of age.</content><note type="source"><p>Source Note: The provisions of this §700.1603 adopted to be effective April 16, 2001, 26 TexReg 2753.</p></note></section><section identifier="/us/state/tx/tac/t40/p19/c700/scP/s700.1604"><num value="700.1604">§700.1604</num><heading>Are there specific requirements for young people to meet before receiving PAL Program benefits?</heading><content>(a) The PAL Program may establish in policy specific conditions or criteria that young people must meet to receive program benefits, provided such requirements are designed to help achieve the purposes and objectives of the program. Specific conditions or criteria may include, but are not limited to, requirements that the young person:(1) attend training (if able);(2) be employed or actively seeking employment (if able), or attending school or vocational or technical training;(3) meet need-based criteria for monetary assistance;(4) obtain a determination by DFPS, if the youth is to live with a designated perpetrator of abuse or neglect, that despite the person's prior history he or she does not pose a threat to the health and safety of the youth; and(5) not be incarcerated.(b) Any young persons whom the PAL Program is designed to serve, as described in §700.1602 of this title (relating to Whom is the PAL Program designed to serve?), must be informed of any requirements that they must meet to receive benefits.(c) No benefits are available to any young persons after their 21st birthday.</content><note type="source"><p>Source Note: The provisions of this §700.1604 adopted to be effective April 16, 2001, 26 TexReg 2753; amended to be effective March 1, 2010, 35 TexReg 873.</p></note></section><section identifier="/us/state/tx/tac/t40/p19/c700/scP/s700.1611"><num value="700.1611">§700.1611</num><heading>What is the Education and Training Voucher (ETV) Program?</heading><content>The Education and Training Voucher (ETV) Program provides financial assistance to eligible former and current foster care youth in order to support their pursuit of postsecondary education or vocational training. Funding for the ETV Program is provided by the federal grant to the state, pursuant to the amended Chaffee Foster Care Independence Act, 42 U.S.C. 677(i), with required state match. The existence of the ETV Program is subject to this funding.</content><note type="source"><p>Source Note: The provisions of this §700.1611 adopted to be effective December 1, 2005, 30 TexReg 7487.</p></note></section><section identifier="/us/state/tx/tac/t40/p19/c700/scP/s700.1613"><num value="700.1613">§700.1613</num><heading>Who can be eligible for the ETV Program?</heading><content>(a) Students in one of the following categories can be eligible to participate in the ETV Program, as long as they are under the age of 23:(1) at least 16 years of age and in DFPS's conservatorship;(2) in DFPS Extended Foster Care;(3) left DFPS foster care at age 18 or older, or were legally emancipated by a court while in DFPS foster care;(4) adopted from DFPS foster care after turning age 16;(5) exited to the Permanency Care Assistance Program from DFPS foster care after turning age 16; or(6) any other population group legally required under federal law.(b) A student may remain eligible up to age 23, as long as the student is making satisfactory progress toward completion of postsecondary education or vocational training. In no event may a student receive ETV funds for more than 5 years, regardless of if the years are consecutive or not.</content><note type="source"><p>Source Note: The provisions of this §700.1613 adopted to be effective December 1, 2005, 30 TexReg 7487; amended to be effective September 1, 2010, 35 TexReg 6834; amended to be effective February 11, 2021, 46 TexReg 937.</p></note></section><section identifier="/us/state/tx/tac/t40/p19/c700/scP/s700.1615"><num value="700.1615">§700.1615</num><heading>What must an eligible student do to qualify for participation in the ETV Program?</heading><content>(a) To qualify for financial assistance under the ETV Program, an eligible student must:(1) meet one of the requirements in §700.1613(a) of this title (relating to Who can be eligible for the ETV Program?);(2) be taking a course which the student will receive college academic credit while in high-school or a program leading to a high-school diploma or equivalent, have a high school diploma or equivalent, or be exempt from compulsory school attendance pursuant to Texas Education Code, §25.086(a)(6)(A);(3) be enrolled in an applicable institution of higher education as defined by 20 U.S.C. §1002;(4) For students 18 and older, have a financial account that accepts direct deposits. For students under age 18, exceptions to this requirement may be made by DFPS on a case-by-case basis; and(5) complete and file an application and required documentation with the DFPS ETV contractor.(b) If denied eligibility, DFPS notifies the applicant in writing of the reason(s) for the denial, and of the right to appeal the denial, as defined in §700.1625 of this title (relating to Can a student appeal a denial of eligibility, or a suspension, or termination of benefits?).</content><note type="source"><p>Source Note: The provisions of this §700.1615 adopted to be effective December 1, 2005, 30 TexReg 7487; amended to be effective September 1, 2007, 32 TexReg 5391; amended to be effective February 11, 2021, 46 TexReg 937.</p></note></section><section identifier="/us/state/tx/tac/t40/p19/c700/scP/s700.1617"><num value="700.1617">§700.1617</num><heading>How much financial assistance may an eligible student receive under the ETV Program and what types of expenses are included in the cost of attendance for which ETV funds can be used?</heading><content>(a) The total annual amount of financial assistance that an eligible student may receive from the ETV Program is determined by the following criteria: (1) The amount of financial assistance is limited to the lesser of $5,000 or the total cost of attendance, as allowable under §472 of the federal Higher Education Act of 1965 (20 U.S.C. §1087ll ). (2) The amount of educational assistance to a student under the ETV Program and any other federal or federally supported program must not exceed the total cost of attendance, as defined in §472 of the federal Higher Education Act of 1965 (20 U.S.C. §1087ll ). (3) Financial assistance provided under the ETV Program cannot duplicate benefits provided under any other federal or federally supported program. (4) If a student is eligible for the state exemption from payment of tuition and fees, under Texas Education Code §54.366, §54.367, or any other tuition waiver exemption and is attending an institution where that exemption applies, the student may not receive financial assistance under the ETV Program for the cost of tuition and fees. (b) ETV funds can only be used to pay for the category of expenses as allowable under §472 of the federal Higher Education Act of 1965 (20 U.S.C. §1087ll ) and applicable federal guidance, if the student will incur such costs.</content><note type="source"><p>Source Note: The provisions of this §700.1617 adopted to be effective December 1, 2005, 30 TexReg 7487; amended to be effective February 11, 2021, 46 TexReg 937.</p></note></section><section identifier="/us/state/tx/tac/t40/p19/c700/scP/s700.1619"><num value="700.1619">§700.1619</num><heading>After a student is initially determined eligible for the ETV Program, are there other requirements the student must meet?</heading><content>(a) Yes; to remain eligible for the ETV Program, the student must:(1) maintain satisfactory progress toward completion of postsecondary education or vocational training, as defined by the institution the student is attending; and(2) submit documentation to establish that minimum enrollment requirements are met and that satisfactory progress, referred to in paragraph (1) of this subsection, is being made.(b) A student's failure to meet the requirements of subsection (a) of this section may result in suspension of continued benefits under the ETV Program. DFPS sends the student written notice of the reason(s) for suspension of ETV benefits, and the student's right to appeal, as defined in §700.1625 of this title (relating to Can a student appeal a denial of eligibility, or a suspension, or termination of benefits?).</content><note type="source"><p>Source Note: The provisions of this §700.1619 adopted to be effective February 11, 2021, 46 TexReg 937.</p></note></section><section identifier="/us/state/tx/tac/t40/p19/c700/scP/s700.1621"><num value="700.1621">§700.1621</num><heading>When does a student lose the right to continue receiving benefits under the ETV Program?</heading><content>A student's benefits under the ETV Program may be terminated when DFPS discovers that any of the following events has occurred: (1) the student falsified information in the application for benefits, or in providing required documentation to maintain eligibility for the ETV Program; (2) the student has used ETV funds for expenses that are not included in §472 of the federal Higher Education Act of 1965 (20 U.S.C. §1087ll ), or falsified documentation in accounting for expenditures; (3) the student is no longer attending the program for which financial assistance has been provided; (4) the student commits an act of theft, fraud, or forgery involving ETV funds; or (5) the student reaches the age of ineligibility, as defined in §700.1613 of this title (relating to Who can be eligible for the ETV Program?).</content><note type="source"><p>Source Note: The provisions of this §700.1621 adopted to be effective February 11, 2021, 46 TexReg 937.</p></note></section><section identifier="/us/state/tx/tac/t40/p19/c700/scP/s700.1625"><num value="700.1625">§700.1625</num><heading>Can a student appeal a denial of eligibility, or a suspension, or termination of benefits?</heading><content>(a) Yes, but the student must file a timely written request to appeal the decision in a fair hearing, as defined in §700.310 of this title (relating to Fair Hearings).(b) DFPS sends a student written notice when denied the right to participate in the ETV Program, or when benefits are to be suspended or terminated after the student has been determined eligible. The written notice must state the specific reason(s) for denial, suspension, or termination and must inform the student of the right to make a written request, within 90 days of receipt of the notice, to appeal the decision in a fair hearing.</content><note type="source"><p>Source Note: The provisions of this §700.1625 adopted to be effective December 1, 2005, 30 TexReg 7487.</p></note></section><section identifier="/us/state/tx/tac/t40/p19/c700/scP/s700.1630"><num value="700.1630">§700.1630</num><heading>When can youth returning to a parent receive the Texas Tuition and Fee Waiver?</heading><content>(a) The following populations are eligible for the Texas Tuition and Fee Waiver, regardless of whether parental rights are terminated or not:(1) Youth age 14 or older who are in DFPS's permanent managing conservatorship on or after the effective date of this rule, and who subsequently exit conservatorship to the legal responsibility of a parent.(2) Youth age 16 or older who are in DFPS's temporary managing conservatorship on or after the effective date of this rule, and who subsequently exit conservatorship to the legal responsibility of a parent.(b) If after exiting the foster care system the youth returns to DFPS conservatorship, the youth's eligibility will be based on their current foster care circumstances.(c) The student must enroll in an institution of higher education as defined by Texas Education Code §61.003 not later than the student's 25th birthday to receive the Texas Tuition and Fee Waiver.(d) The student must meet any other applicable statutory requirement concerning the Texas Tuition and Fee Waiver for students exempted by Texas Education Code §54.366.(e) This rule is applicable beginning with tuition and fees charged at a Texas public institution of higher education as defined by the Texas Education Code §61.003 for the 2016 fall semester.(f) The term parent means a biological parent or an adoptive parent.</content><note type="source"><p>Source Note: The provisions of this §700.1630 adopted to be effective June 1, 2016, 41 TexReg 3527.</p></note></section></subchapter><subchapter identifier="/us/state/tx/tac/t40/p19/c700/scQ"><num value="Q">SUBCHAPTER Q</num><heading>PURCHASED PROTECTIVE SERVICES</heading><section identifier="/us/state/tx/tac/t40/p19/c700/scQ/s700.1701"><num value="700.1701">§700.1701</num><heading>What are the posting requirements for residential child-care facilities who care for children in the conservatorship of the Department of Family and Protective Services related to the Ombudsman For Children and Youth in Foster Care?</heading><content>(a) Residential child-care facilities who care for children in the conservatorship of the Department of Family and Protective Services must prominently display a sign produced by DFPS or the Ombudsman For Children and Youth in Foster Care related to the existence and contact information for the Ombudsman For Children and Youth in Foster Care.(b) The residential child care facilities must implement procedures to allow children and youth to make complaints in private or in a space that is separate from facility staff, volunteers, or the foster family.</content><note type="source"><p>Source Note: The provisions of this §700.1701 adopted to be effective September 1, 2016, 41 TexReg 6077.</p></note></section><section identifier="/us/state/tx/tac/t40/p19/c700/scQ/s700.1726"><num value="700.1726">§700.1726</num><heading>What are post-permanency services?</heading><content>Post-permanency services are purchased client services provided to an adoptive family or a family that was granted permanent managing conservatorship of a child to help the child and the family:(1) adjust to the adoption or permanent managing conservatorship;(2) cope with any history of abuse in the child's background;(3) cope with mental health issues the child may have; and(4) avoid permanent or long-term removal of children from the family.</content><note type="source"><p>Source Note: The provisions of this §700.1726 adopted to be effective December 1, 1994, 19 TexReg 8692; amended to be effective July 1, 2015, 40 TexReg 4220; amended to be effective January 19, 2017, 42 TexReg 84.</p></note></section><section identifier="/us/state/tx/tac/t40/p19/c700/scQ/s700.1727"><num value="700.1727">§700.1727</num><heading>What types of post-permanency services are available?</heading><content>The following post-permanency services may be authorized subject to funding and any additional eligibility criteria specified in this division (relating to Post-Permanency Services):(1) support groups;(2) parent/caregiver training;(3) post-permanency counseling;(4) therapeutic or specialized camps;(5) intermittent alternate care (respite);(6) crisis intervention;(7) residential treatment services; and(8) other services approved by the Department of Family and Protective Services.</content><note type="source"><p>Source Note: The provisions of this §700.1727 adopted to be effective January 19, 2017, 42 TexReg 84.</p></note></section><section identifier="/us/state/tx/tac/t40/p19/c700/scQ/s700.1728"><num value="700.1728">§700.1728</num><heading>Who is eligible for post-permanency services?</heading><content>(a) The Department of Family and Protective Services' (DFPS's) provision of purchased post-permanency services is subject to the availability of funds appropriated for that purpose. When funds are available, and subject to any additional eligibility requirements for specific types of post-permanency services as provided in (DFPS's) rules, DFPS provides purchased post-permanency services to the child and the child's family if each of the following four conditions is satisfied:(1) either:(A) the department or a licensed Texas child-placing agency served as the child's managing conservator, placed the child for adoption, and the placement resulted in a court-order consummating the adoption. If a licensed Texas child-placing agency served as the child's managing conservator and placed the child for adoption, the department must be providing Title IV-E adoption assistance to the child; or(B) the department or a licensed Texas child-placing agency served as the child's managing conservator and a kinship caregiver was granted permanent managing conservatorship of the child with or without permanency care assistance;(2) if the child was adopted, the adoption is still intact or if the child is in apermanent managing conservatorship the child is still with that caregiver;(3) the adoptive parent or permanent managing conservator, asapplicable, has requested post-permanency services; and(4) the child is under 18. If determined necessary by DFPS, services may continue for up to 90 days past the child's 18th birthday in order to ensure an orderly termination of services.(b) Notwithstanding subsection (a)(4) of this section, if services begin during a child's 17th year, they may continue for as long as six months after the child's 18th birthday.</content><note type="source"><p>Source Note: The provisions of this §700.1728 adopted to be effective July 1, 2015, 40 TexReg 4220; amended to be effective January 19, 2017, 42 TexReg 84.</p></note></section><section identifier="/us/state/tx/tac/t40/p19/c700/scQ/s700.1731"><num value="700.1731">§700.1731</num><heading>Who is eligible for post-permanency counseling?</heading><content>(a) Post-permanency counseling includes:(1) Diagnostic and assessment services;(2) Individual, group, and family counseling; and(3) Day treatment.(b) Post-permanency counseling is provided as follows:(1) Post-permanency counseling services are ordinarily restricted to a child who was in the conservatorship of the Department of Family and Protective Services and was adopted or exited into a permanent managing conservatorship and the child's adoptive parents or permanent managing conservator, as applicable, if they meet the requirements for client eligibility specified in §700.1728 of this title (relating to Who is eligible for post-permanency services?).(2) Siblings under 18, however, may also receive post-permanency counseling services if:(A) they are living in the household; and(B) their need for counseling stems from the child's placement in the family.(3) Diagnostic and assessment services are restricted to the adopted child or child placed in a permanent managing conservatorship. For the child to receive diagnostic and assessment services, the child's case record must include written documentation that the child is not eligible to receive diagnostic testing under state or federal programs that provide such testing through the child's school.(c) The services listed in subsection (a) of this section are provided for the following length of time:(1) up to 12 hours per a 12 month period for diagnostic and assessment services.(2) up to 12 hours per family member for any combination of counseling services received per a 6 month period.(3) up to 2 weeks of daily intensive treatment for the child over a 6 month period.(d) Notwithstanding subsection (b) of this section, a caregiver may submit a written request justifying the need to exceed the maximum length of services to the Child Protective Services (CPS) Regional Liaison and the CPS Contract Manager at least 10 calendar days prior to the need for the service.</content><note type="source"><p>Source Note: The provisions of this §700.1731 adopted to be effective December 1, 1994, 19 TexReg 8692; amended to be effective July 1, 2015, 40 TexReg 4220; amended to be effective January 19, 2017, 42 TexReg 84.</p></note></section><section identifier="/us/state/tx/tac/t40/p19/c700/scQ/s700.1733"><num value="700.1733">§700.1733</num><heading>Who is eligible for residential treatment services?</heading><content>(a) Client eligibility. Only adopted children are eligible for residential treatment services through the post-permanency services program. To qualify, an adopted child:(1) must be expected to return home and function in the adoptive family within 12 months;(2) must not be eligible for treatment in a state hospital or state school; and(3) must have an initial service level determination of Specialized or Intense or if under the Texas Child-Centered Care (T3C) System, must be placed and receiving a T3C Service Package other than the T3C Basic Family Foster Family Home Service Package.(b) Family treatment and progress towards reunification.(1) The child's adoptive family must participate in family treatment over the course of the child's stay in residential treatment.(2) Every three-month review of the child's service plan must address the progress made towards reunifying the child with the adoptive family.(3) The contractor must begin planning for a child's discharge from residential treatment services, and must carry out the discharge within 60 days, if either of the following conditions arises:(A) the adoptive parents do not:(i) maintain regular contact with the child;(ii) participate in treatment; or(iii) intend to let the child return home; or(B) the child's functioning does not improve.(c) Minimum service level or T3C Service Package.(1) If the service level of an adopted child in residential treatment services is reduced below the Specialized Service Level or the child no longer meets the criteria for the Service Package under which they were originally placed, the contractor must immediately begin planning to:(A) support the child's return to the adoptive home;(B) refer the child and family to another facility that can meet the child's needs; or(C) help the family find other ways to pay for the contractor's continuing care.(2) The child's eligibility for DFPS-paid residential treatment services ends 60 days after the effective date of the reduced service level.</content><note type="source"><p>Source Note: The provisions of this §700.1733 adopted to be effective December 1, 1994, 19 TexReg 8692; amended to be effective October 20, 1997, 22 TexReg 10152; amended to be effective March 1, 2004, 29 TexReg 1416; amended to be effective July 1, 2015, 40 TexReg 4220; amended to be effective January 19, 2017, 42 TexReg 84; amended to be effective December 22, 2024, 49 TexReg 10389.</p></note></section><section identifier="/us/state/tx/tac/t40/p19/c700/scQ/s700.1735"><num value="700.1735">§700.1735</num><heading>For How Long May Postadoption Residential Treatment Services Be Provided?</heading><content>(a) Eligibility for postadoption residential treatment services is subject to the availability of funding and limited to a maximum period of 12 months.(b) The Assistant Commissioner of Child Protective Services or the Assistant Commissioner's designee may extend a child's eligibility only if funds are available and:(1) an extension will permit the child to complete the academic year without disruption within the next 90 days;(2) an appropriate alternative placement will be available for the child within the next 90 days, but is not available now; or(3) the child is expected to return home and function in the adoptive family within the next 90 days.(c) The Assistant Commissioner of CPS or the Assistant Commissioner's designee may extend a child's eligibility for up to 12 additional months, when all of the following conditions are met:(1) the child is being treated in a specialized residential treatment facility whose standard course of treatment for the condition being treated is longer than 12 months and no more than 24 months;(2) there is clear evidence in the most recent comprehensive psychological/psychiatric report that the child is in need of and requires treatment for a severe condition (such as reactive attachment disorder requiring a specialized treatment modality). Note: The psychological/psychiatric report(s) cited must be no older than 90 days;(3) current treatment notes and reports clearly indicate the child is making significant progress despite the need for extensive treatment services;(4) the treatment facility, the child's family, and the post adoption services provider expect the child to be able to return home at the end of the prescribed treatment, which is no more than 24 months after the initial placement;(5) the child's family is actively participating in the child's treatment, is participating in family therapy, and is in compliance with the terms outlined in the residential treatment placement agreement and the plan of service;(6) out-patient treatment is not available, and long term, out-of-home treatment is in the child's best interest; and(7) adequate post adoption funds are available for the child's continued treatment.</content><note type="source"><p>Source Note: The provisions of this §700.1735 adopted to be effective July 1, 2015, 40 TexReg 4220.</p></note></section><section identifier="/us/state/tx/tac/t40/p19/c700/scQ/s700.1751"><num value="700.1751">§700.1751</num><heading>What is the Cost Determination Process?</heading><content>Non-Texas Department of Family and Protective Services (DFPS) foster family homes, general residential operations, residential treatment centers, foster group homes, and child placing agencies that contract with DFPS to provide 24-hour residential child-care services must submit financial and statistical information according to the requirements specified in this subsection. Providers of 24-hour residential child care services must report this information on cost-reporting forms approved by the Texas Health and Human Services Commission (HHSC), or electronically in HHSC-prescribed format where these systems are operational. The cost report must cover all of the provider's activities while delivering contracted services during the fiscal year specified by the cost report unless HHSC, at its sole discretion, requires a provider to submit a cost report covering selected activities or covering another time period. The word "rate," when used in this subchapter, shall refer to the prospective daily unit rate paid either directly or indirectly to a provider with whom DFPS has a contract or an agreement. This subchapter does not apply to DFPS cost reimbursed contracts.(1) Who must file a cost report. Every 24-hour residential child-care provider that directly or indirectly receives payment from DFPS for services to children whom DFPS has placed with the provider must submit a cost report. The provider must submit a separate cost report for each separately licensed facility that the provider operates. If two or more facilities share a license, but function as separate and distinct facilities, each of them must submit a cost report that covers its own revenues, expenses, and statistics. A child-placing agency that holds multiple licenses that operate as one legal entity must submit one cost report for the entire legal entity.(2) Cost report due date. Unless HHSC specifies otherwise, providers must submit cost reports to HHSC Rate Analysis no later then 90 days following the end of the provider entity's fiscal year or 90 days from the transmittal date of the cost-reporting forms, whichever due date is later.(3) Extension of due date. When circumstances that a provider cannot reasonably be expected to control prevent the provider from submitting a cost report by the due date as specified in paragraph (2) of this section, HHSC may extend the due date. The provider must request the extension in writing before the due date, and HHSC must respond to the request within 15 workdays after receiving it.(4) Cost-report supplements. To obtain additional financial and statistical information that does not appear in a provider's regular cost report, HHSC has the authority to require the provider to submit a cost-report supplement. The provider must submit the supplement by the due date specified by HHSC.(5) Vendor hold. If a provider fails to file a cost report or cost-report supplement by the due date or according to the other requirements specified in this subchapter, HHSC has the authority to institute a vendor hold and withhold payments from the provider until the provider submits an acceptable cost report. A provider's failure to submit a cost report after HHSC has placed the provider on vendor hold may result in nonrenewal or cancellation of the provider's contract with DFPS. When a provider is on vendor hold, HHSC does not extend the due date for receipt of the provider's cost report.(6) Accounting requirements. Except for governmental institutions operated on the cash method of accounting, providers must ensure that the financial and statistical information submitted in their cost reports is based on the accrual method of accounting. Each provider's treatment of financial and statistical data must reflect the application of generally accepted accounting principles (GAAP) approved by the American Institute of Certified Public Accountants (AICPA). For purposes of cost reporting, however, the requirements of this subchapter take precedence over the AICPA's GAAP and any other authority's accounting requirements, including Internal Revenue Service requirements.(7) Methods of allocation. HHSC adjusts allocated costs if the department considers the allocation method to be unreasonable.(A) Direct costing must be used whenever possible, which means that allowable costs incurred for the benefit of, or directly attributable to, a specific business component must be directly charged to that particular business component. If direct costing is not possible, a provider must use reasonable methods of allocation and must be consistent in the use of allocation methods across program areas and business entities to ensure that allowable costs are equitably allocated across business activities or business entities receiving the benefits of those allocated costs. Costs reported for the provider must be representative of the actual circumstances of the provider's operations, whether directly charged or allocated. An indirect allocation method approved by some other department, program, or governmental entity is not automatically approved by HHSC. HHSC reviews each allocation method on a case-by-case basis in order to ensure that the reported costs fairly and accurately represent the operations of the provider. Any change in allocation methods from one year to the next must be fully disclosed by the provider on its cost report and must be accompanied by a written explanation of the reasons for such change.(B) When practical and the amounts are material, costs must be allocated on a functional basis. Some examples are listed as follows.(i) Costs of a central payroll operation could be allocated to all business components based on the number of checks issued.(ii) Costs of a central purchasing function could be allocated based on the dollar amount of purchases made or requisitions handled.(iii) Costs of utilities or rent could be allocated based upon square footage.(iv) Payroll costs for an employee working across business components could be allocated based upon that employees' timesheets and/or a documented time study.(v) Transportation equipment costs could be allocated based upon mileage logs.(C) General management and administrative costs that cannot be allocated on a functional basis should be allocated reasonably and consistently across all business components receiving the benefits of those allowable general management and administrative costs. If all the business components have equivalent units of equivalent service, such general management and administrative costs could be allocated based upon each business component's units of service. One recommended method for allocating such costs would be based upon the ratio of each business component's variable costs related to the total variable costs of all the provider's business components. Because only cost data are analyzed in the calculation of reimbursement rates, allocation methods based upon revenue streams are inappropriate and generally unallowable.(D) Cost allocation methods must be clearly and completely documented in the provider's workpapers, with details as to how specific allocations are made.(8) Certification. A completed cost report must contain a signed, notarized, original certification page.(9) Review of cost reports. HHSC conducts a desk review or field audit of each cost report to ensure that the financial and statistical information presented in the report conforms to all applicable requirements, including the requirements of this subchapter. The desk review verifies that the cost report:(A) displays financial and statistical information in the format required by HHSC;(B) reports expenses in conformity with the allowable and unallowable cost requirements detailed in paragraph (17) of this section;(C) follows GAAP except as specified in paragraphs (6) and (20) of this section; and(D) is completed in accordance with the program's cost report instructions.(10) Requests for additional information. If a cost report fails to conform to applicable requirements as specified in paragraph (9) of this section, HHSC returns the report to the provider for correction. HHSC also has the authority to require providers to supply additional information to substantiate the information provided in the cost report.(11) On-site audits. HHSC performs a sufficient number of on-site audits each year to ensure the fiscal integrity of the 24-hour child-care services program. HHSC determines the frequency and nature of on-site audits, and the number of audits performed each year may vary. To maximize the number of audited cost reports available for use in projecting costs, HHSC arranges as many on-site audits as possible.(12) Notification of exclusions and adjustments. HHSC gives providers written notification of exclusions and adjustments of reported expenses made during desk reviews and on-site audits of cost reports.(13) Reviews of exclusions and adjustments. When a provider disputes a HHSC exclusion or adjustment of a reported expense, the provider may request an informal review of HHSC'S disallowance. Informal reviews are governed by requirements specified in §355.110 of this title (relating to Informal Reviews and Formal Appeals).(14) Access to records. Each provider and each provider's designated agents must give HHSC access to any and all records necessary to verify information submitted to HHSC on cost reports, including records that pertain to related-party transactions or other business activities engaged in by the provider. If a provider does not allow HHSC to inspect pertinent records within 30 days after HHSC sends the provider written notice, HHSC places the provider on vendor hold and withholds payments until the provider gives HHSC access to the records. HHSC or its designee has the authority to cancel the provider's contract if the provider continues to deny access.(15) Maintaining records. Providers must ensure that all records pertinent to services rendered under their contracts with DFPS are accurate and sufficiently detailed to support the financial and statistical information contained in their cost reports. Providers must retain these records for at least three years and 90 days after the end of the contract period.(16) Failure to maintain adequate records. If HHSC discovers that a provider has failed to maintain adequate records as specified in paragraph (15) of this section, HHSC notifies the provider of the deficiencies in the provider's recordkeeping and gives the provider 90 days to correct them. HHSC or its designee has the authority to cancel the provider's contract if the provider fails to correct the deficiencies within 90 days after the date of HHSC's notification.(17) All cost reports must be completed in accordance with the federal regulations and guidelines listed in order of precedence in subparagraphs (A) and (B) of this paragraph, as applicable:(A) The Code of Federal Regulations (CFR):(i) 45 CFR, Part 74; and(ii) 48 CFR, Part 31.(B) The Office of Management and Budget Circulars:(i) A-87 (for state and local governmental entities);(ii) A-122 (for nonprofit and for-profit corporate entities); and(iii) A-110 (for all residential child care contractors).(18) For cost reporting purposes, costs incurred under less-than-arms-length (related-party) transactions are allowable only up to the cost to the related party as per OMB Circulars A-87 and A-122 and §355.102(i) of this title (relating to Related Party Transactions).(19) Limits on related-party administration salary costs. To ensure that the results of HHSC's cost analyses accurately reflect the costs that an economic and efficient provider must incur, HHSC sets upper limits for certain wages at the 90th percentile in the array of costs per unit of service or total annualized cost, as appropriate for a specific cost categories, as reported by all contracted facilities, unless otherwise specified. The specific cost categories that are subject to the 90th percentile cap are:(A) Related-party facility administrator/director salary, wages, and benefits with the cap based on an array of nonrelated-party administrator/director salaries, wages, and benefits;(B) Related-party assistant administrator/director salary, wages, and benefits with the cap based on an array of nonrelated-party assistant administrator/director salaries, wages, and benefits;(C) Related-party facility owner, partner, or stockholder salaries, wages, and benefits (when the owner, partner, or stockholder is not the facility administrator/director or assistant administrator/director), with the cap based on an array of nonrelated-party administrator/director salaries, wages, and benefits.(20) Cost report training. It is the responsibility of the provider to ensure that each preparer signing the Cost Report Methodology Certification has completed the required state-sponsored cost report training. Preparers may be employees of the provider or persons who have been contracted by the provider for the purpose of cost report preparation. Preparers must complete cost report training for each program for which a cost report is submitted. Preparers must complete cost report training every other year for the odd-year cost report in order to receive a certificate to complete both that odd-year cost report and the following even-year cost report. If a new preparer wishes to complete an even-year cost report and has not completed the previous odd-year cost report training, to receive a certificate to complete the even-year cost report, the preparer must complete an even-year cost report training. A copy of the most recent cost report training certificate for each preparer of the cost report must be submitted with each cost report. Contracted preparer's fees to complete state-sponsored cost report training are allowable.(A) New preparers. Preparers who have not previously completed the required state-sponsored cost report training and received a completion certificate must attend state-sponsored classroom-based cost report training for each contracted program for which a cost report is to be submitted.(B) If a provider fails to file a completed cost report signed by preparers who have completed the required cost report training, HHSC has the authority to institute a vendor hold and withhold payments from the provider until the provider submits an acceptable cost report. A provider's failure to submit a cost report after HHSC has placed the provider on vendor hold may result in nonrenewal or cancellation of the provider's contract with DFPS.</content><note type="source"><p>Source Note: The provisions of this §700.1751 adopted to be effective July 31, 1991, 16 TexReg 3944; transferred effective September 1, 1992, as published in the Texas Register September 11, 1992, 17 TexReg 6279; amended to be effective January 1, 1994, 18 TexReg 8975; transferred effective September 1, 2004, as published in the Texas Register September 17, 2004, 29 TexReg 9014; amended to be effective January 1, 2008, 32 TexReg 9938; amended to be effective August 31, 2010, 35 TexReg 7726; transferred effective November 15, 2017, as published in theTexas Register November 3, 2017, 42 TexReg 6201.</p></note></section><section identifier="/us/state/tx/tac/t40/p19/c700/scQ/s700.1753"><num value="700.1753">§700.1753</num><heading>What is the Rate-Setting Methodology for 24-Hour Residential Child-Care Reimbursements?</heading><content>(a) The following is the authority and process for determining payment rates:(1) For payment rates established prior to September 1, 2005, the Department of Family and Protective Services (DFPS; formerly the Department of Protective and Regulatory Services) reviewed payment rates for providers of 24-hour residential child care services every other year in an open meeting, after considering financial and statistical information, DFPS rate recommendations developed according to the provisions of this subchapter, legislative direction, staff recommendations, agency service demands, public testimony, and the availability of appropriated revenue. Before the open meeting in which rates were presented for adoption, DFPS sent rate packets containing the proposed rates and average inflation factor amounts to provider association groups. DFPS also sent rate packets to any other interested party, by written request. Providers who wished to comment on the proposed rates could attend the open meeting and give public testimony. Notice of the open meeting was published on the Secretary of State's web site at http://www.sos.state.tx.us/open. DFPS notified all foster care providers of the adopted rates by letter. (2) For payment rates established September 1, 2005 and thereafter, the Department of Family and Protective Services (DFPS) approves rates that are statewide and uniform. The Health and Human Services Commission (HHSC) calculates the rates for DFPS and takes into consideration staff recommendations based on the application of formulas and procedures described in this chapter when calculating the rates. However, DFPS may adjust staff recommendations when DFPS deems such adjustments are warranted by particular circumstances likely to affect achievement of program objectives, including economic conditions and budgetary considerations. Reimbursement amounts will be determined coincident with the state's biennium. Providers of 24-hour residential child care services will have the opportunity to discuss rate changes in regularly scheduled DFPS public meetings.(b) For payment rates in effect for state fiscal year (SFY) 2002 and 2003, DFPS develops rate recommendations for Board consideration for foster homes serving Levels of Care 1 through 4 children as follows: (1) For all Level of Care 1 rates, DFPS analyzes the most recent statistical data available on expenditures for a child published by the United States Department of Agriculture (USDA) from middle income, dual parent households for the "Urban South." USDA data includes costs for age groupings from 0 to 17 years of age. An age differential is included with one rate for children ages 0-11 years, and another rate for children 12 years and older. Foster homes providing services to Level of Care 1 children receive the rate that corresponds to the age of the child in care. (A) DFPS excludes health care costs, as specified in the USDA data, from its calculations since Medicaid covers these costs. USDA specified child-care and education costs are also excluded since these services are available in other DFPS day-care programs. (B) DFPS includes the following cost categories for both age groups as specified in the USDA data: housing, food, transportation, clothing, and miscellaneous. (C) The total cost per day is projected using the Implicit Price Deflator-Personal Consumption Expenditures (IPD-PCE) Index from the period covered in the USDA statistics to September 1 of the second year of the biennium, which is the middle of the biennium that the rate period covers. Information on inflation factors is specified in subsection (h) of this section. (2) For Levels of Care 2 through 4 rates, DFPS analyzes the information submitted in audited foster home cost surveys and related documentation in the following ways: (A) A statistically valid sample of specialized (therapeutic, habilitative, and primary medical) foster homes complete a cost survey covering one month of service if they meet the following criteria: (i) the foster home currently has a DFPS foster child(ren) residing in the home; and (ii) the number of children in the home, including the children of the foster parents, is 12 or fewer. (B) For rates covering the fiscal year 2002-2003 biennium, child-placing agency homes are the only foster homes that complete a cost survey because the children they serve are currently assigned levels of care verified by an independent contractor. By September 1, 2001, children served in DFPS specialized foster homes will also be assigned levels of care verified by an independent contractor. All future sample populations completing a one-month foster home cost survey will include both child-placing agency and DFPS specialized foster homes. As referenced in subsection (j) of this section, during the 2004-2005 biennium, when the rate methodology is fully implemented, DFPS specialized foster homes and child-placing agency foster homes will be required to receive at a minimum the same foster home rate as derived by this subsection. (C) Cost categories included in the one-month foster home cost survey include: (i) shared costs, which are costs incurred by the entire family unit living in the home, such as mortgage or rent expense and utilities; (ii) direct foster care costs, which are costs incurred for DFPS foster children only, such as clothing and personal care items. These costs are tracked and reported for the month according to the level of care of the child; and (iii) administrative costs that directly provide for DFPS foster children, such as child-care books, and dues and fees for associations primarily devoted to child care. (D) A cost per day is calculated for each cost category and these costs are combined for a total cost per day for each level of care served. (E) A separate sample population is established for each type of specialized foster home (therapeutic, habilitative, and primary medical). Each level of care maintenance rate is established by the sample population's central tendency, which is defined as the mean, or average, of the population after applying two standard deviations above and below the mean of the total population. (F) The rates calculated for each type of specialized foster home are averaged to derive one foster care maintenance rate for each of the Levels of Care 2 through 4. (G) The total cost per day is projected using the IPD-PCE Index from the period covered in the cost report to September 1 of the second year of the biennium, which is the middle of the biennium that the rate period covers. Information on inflation factors is specified in subsection (h) of this section. (c) For payment rates in effect for state fiscal year (SFY) 2002 and 2003, DFPS develops rate recommendations for Board consideration for child-placing agencies serving Levels of Care 1 through 4 children as follows: (1) The rate-setting model defined in subsection (g) of this section is applied to child-placing agencies' cost reports to calculate a daily rate. (2) At a minimum, child-placing agencies are required to pass through the applicable foster home rate derived from subsection (b) of this section to their foster homes. The remaining portion of the rate is provided for costs associated with case management, treatment coordination, administration, and overhead. (3) For rate-setting purposes, the following facility types are included as child-placing agencies and will receive the child-placing agency rate: (A) child-placing agency; (B) independent foster family/group home; (C) independent therapeutic foster family/group home; (D) independent habilitative foster family/group home; and (E) independent primary medical needs foster family/group home. (d) For payment rates in effect for state fiscal year (SFY) 2002 and 2003, DFPS develops rate recommendations for Board consideration for residential care facilities serving Levels of Care 1 through 6 as follows: (1) For Levels of Care 1 and 2, DFPS applies the same rate paid to child-placing agencies as recommended in subsection (c) of this section. (2) For Levels of Care 3 through 6, the rate-setting model defined in subsection (g) of this section is applied to residential care facilities' cost reports to calculate a daily rate. (3) For rate-setting purposes, the following facility types are included as residential care facilities and will receive the residential care facility rate: (A) residential treatment center; (B) therapeutic camp; (C) intermediate care facility for individuals with an intellectual disability or related conditions; (D) basic care facility; (E) halfway house; and (F) maternity home. (e) For payment rates in effect for state fiscal year (SFY) 2002 and 2003, DFPS develops rate recommendations for Board consideration for emergency shelters as follows: (1) DFPS analyzes emergency shelter cost report information included within the rate-setting population defined in subsection (f) of this section. Emergency shelter costs are not allocated across levels of care since, for rate-setting purposes, all children in emergency shelters are considered to be at the same level of care. (2) For each cost report in the rate-setting population, the total costs are divided by the total number of days of care to calculate a daily rate. (3) The total cost per day is projected using the IPD-PCE Index from the period covered in the cost report to September 1 of the second year of the biennium, which is the middle of the biennium that the rate period covers. Information on inflation factors is specified in subsection (h) of this section. (4) The emergency shelter rate is established by the population's central point or central tendency. The measure of central tendency is defined as the mean, or average, of the population after applying two standard deviations above and below the mean of the total population. (f) For payment rates in effect for state fiscal year (SFY) 2002 and 2003, level of care rates for contracted providers including child-placing agencies, residential care facilities, and emergency shelters are dependent upon provider cost report information. The following criteria applies to this cost report information: (1) DFPS excludes the expenses specified in §700.1805 and §700.1806 of this title (relating to Unallowable Costs and Costs Not Included in Recommended Payment Rates). Exclusions and adjustments are made during audit desk reviews and on-site audits. (2) DFPS includes therapy costs in its recommended payment rates for emergency shelters and for Levels of Care 3 through 6, and these costs will be considered as allowable costs for inclusion on the provider's annual cost report, only if one of the following conditions applies. The provider must access Medicaid for therapy for children in their care unless: (A) the child is not eligible for Medicaid or is transitioning from Medicaid Managed Care to fee-for-service Medicaid; (B) the necessary therapy is not a service allowable under Medicaid; (C) service limits have been exhausted and the provider has been denied an extension; (D) there are no Medicaid providers available within 45 miles that meet the needs identified in the service plan to provide the therapy; or (E) it is essential and in the child's best interest for a non-Medicaid provider to provide therapy to the child and arrange for a smooth coordination of services for a transition period not to exceed 90 days or 14 sessions, whichever is less. Any exception beyond the 90 days or 14 sessions must be approved by DFPS before provision of services. (3) DFPS may exclude from the database any cost report that is not completed according to the published methodology and the specific instructions for completion of the cost report. Reasons for exclusion of a cost report from the database include, but are not limited to: (A) receiving the cost report too late to be included in the database; (B) low occupancy; (C) auditor recommended exclusions; (D) days of service errors; (E) providers that do not participate in the level of care system; (F) providers with no public placements; (G) not reporting costs for a full year; (H) using cost estimates instead of actual costs; (I) not using the accrual method of accounting for reporting information on the cost report; (J) not reconciling between the cost report and the provider's general ledger; and (K) not maintaining records that support the data reported on the cost report. (4) DFPS requires all contracted providers to submit a cost report unless they meet one or more of the conditions in §355.105(b)(4)(D) of this chapter (relating to General Reporting and Documentation Requirements, Methods, and Procedures). (g) For payment rates in effect for state fiscal year (SFY) 2002 and 2003, a rate-setting model is applied to child-placing agencies' and residential care facilities' cost report information included within the rate-setting population defined in subsection (f) of this section. Three allocation methodologies are used in the rate-setting model to allocate allowable costs among the levels of care of children that are served. The methodologies are explained below and are applied as follows: (1) The first methodology is a staffing model, validated by a statistically valid foster care time study, driven by the number of direct care and treatment coordination staff assigned to a child-placing agency or residential care facility to care for the children at different levels of care. The staffing model produces a staffing complement that is applied to direct care costs to allocate the costs among the levels of care. (A) Staff positions reported on the direct care labor area of the cost report are grouped into the following categories to more clearly define the staffing complement required at each level of care: (i) case management; (ii) treatment coordination; (iii) direct care; (iv) direct care administration; and (v) medical. (B) A categorized staffing complement for each Level of Care 1 through 6 is derived as follows: (i) A 14-day foster care time study is applied to a representative sample of residential care facilities and child-placing agencies that completed a cost report. (ii) Contracted staff, or employees, within the sampled facilities complete a foster care time study daily activity log that assigns half-hour units of each employee's time to the individual child(ren) with whom the employee is engaged during the time period. By correlating the distribution of the employee's time with the level of care assigned to each child, the employee's time is distributed across the Levels of Care 1 through 6. (iii) The foster care time study daily activity log also captures the type of activity performed. The total amount of time spent in each of these activities is a component in determining the number of staff needed in each of the categories included in the staffing complement. The activities performed include: (I) care and supervision; (II) treatment planning and coordination; (III) medical treatment and dental care; and (IV) other (administrative, managerial, training functions, or personal time). (iv) An analysis of the cumulative frequency distribution of these time units by level of care of all children served in the sample population, by category of staff performing the activity, and by type of activity, establishes appropriate staffing complements for each level of care in child-placing agencies and in residential care facilities. These time units by level of care are reported as values that represent the equivalent of a full-time employee. The results are reported in the following chart for incorporation into the rate-setting model:Attached Graphic(v) The foster care time study should be conducted every other biennium, or as needed, if service levels substantially change. (C) Staff position salaries and contracted fees are reported as direct care labor costs on the cost reports. Each staff position is categorized according to the staffing complement outlined for the time study. The salaries and contracted fees for these positions are grouped into the staffing complement categories and are averaged for child-placing agencies and residential care facilities included in the rate-setting population. This results in an average salary for each staffing complement category (case management, treatment coordination, direct care, direct care administration, and medical). (D) The staffing complement values, as outlined in the chart at paragraph (1)(B)(iv) of this subsection, are multiplied by the appropriate average salary for each staffing complement category. The products for all of the staffing complement categories are summed for a total for each level of care for both child-placing agencies and residential care facilities. The total by level of care is multiplied by the number of days of service in each level of care, and this product is used as the primary allocation statistic for assigning each provider's direct care costs to the various levels of care. (E) Direct care costs include the following areas from the cost reports: (i) direct care labor; (ii) total payroll taxes/workers compensation; and (iii) direct care non-labor for supervision/recreation, direct services, and other direct care (not CPAs). (2) The second methodology allocates the following costs by dividing the total costs by the total number of days of care for an even distribution by day regardless of level of care. This amount is multiplied by the number of days served in each level: (A) direct care non-labor for dietary/kitchen; (B) building and equipment; (C) transportation; (D) tax expense; and (E) net educational and vocational service costs. (3) The third methodology allocates the following administrative costs among the levels of care by totaling the results of the previous two allocation methods, determining a percent of total among the levels of care, and applying those percentages: (A) administrative wages/benefits; (B) administration (non-salary); (C) central office overhead; and (D) foster family development. (4) The allocation methods described in paragraphs (1) - (3) of this subsection are applied to each child-placing agency and residential care facility in the rate-setting population, and separate rates are calculated for each level of care served. Rate information is included in the population to set the level of care rate if the following criteria are met: (A) Providers must have at least 30% of their service days within Levels of Care 3 through 6 for residential settings. For example, for the provider's cost report data to be included for calculating the Level of Care 3 rate, a provider must provide Level of Care 3 services for at least 30% of their service days. (B) For Levels of Care 5 and 6, a contracted provider could provide up to 60% of "private days" services to be included in the rate-setting population. They must provide at least 40% state-placed services. (5) Considering the criteria in paragraph (4) of this subsection, the rate-setting population is fully defined for each level of care. Based on this universe, each level of care rate will be established by the group's central point or central tendency. The measure of central tendency is defined as the mean, or average, of the population after applying two standard deviations above and below the mean of the total population. (6) The total cost per day for each child-placing agency and residential care facility is projected using the IPD-PCE Index from the period covered in the cost report to September 1 of the second year of the biennium, which is the middle of the biennium that the rate period covers. Information on inflation factors is specified in subsection (h) of this section. (h) For payment rates in effect for state fiscal year (SFY) 2002 and 2003, DFPS uses the Implicit Price Deflator - Personal Consumption Expenditures (IPD-PCE) Index, which is a general cost inflation index, to calculate projected allowable expenses. The IPD-PCE Index is a nationally recognized measure of inflation published by the Bureau of Economic Analysis of the United States Department of Commerce. DFPS uses the lowest feasible IPD-PCE Index forecast consistent with the forecasts of nationally recognized sources available to DFPS when the rates are prepared. Upon written request, DFPS will provide inflation factor amounts used to determine rates. (i) All reimbursement rates will be equitably adjusted to the level of appropriations authorized by the Legislature. (j) There will be a transition period for the fiscal year 2002-2003 biennium. During this period current rates will not be reduced, and any increased funding will be applied to those levels of care that are less adequately reimbursed according to the methodology. Since increased funding was appropriated at a different percentage for each year of the 2002-2003 biennium, the rates will be set separately for each year instead of setting a biennial rate, and inflation factors will be applied to the middle of each year of the biennium. (k) For the SFY 2004 through 2005, DFPS determines payment rates using the rates determined for SFY 2002 and 2003 from subsections (a) - (h) of this section, with adjustments for the transition from a six level of care system to a four service level system of payment rates. (l) For the state fiscal year 2006 through 2007 biennium, the 2005 payment rates in effect on August 31, 2005 will be adjusted by equal percentages based on a prorata distribution of additional appropriated funds. (m) For the state fiscal year 2008 through 2009 biennium, rates are paid for each level of service identified by the DFPS. For foster homes, the payments effective September 1, 2007 through August 31, 2009 for each level of service will be equal to the minimum rate paid to foster homes for that level of service in effect August 31, 2007 plus 4.3 percent. For Child Placing Agencies (CPAs), the rates effective September 1, 2007, through August 31, 2009 for each level of service will be equal to the rate paid to CPAs for that level of service in effect August 31, 2007, plus 4.3 percent. Additional appropriated funds remaining after the rate increase for foster homes and CPAs shall be distributed proportionally across general residential operations and residential treatment centers based on each of these provider type's ratio of costs as reported on the most recently audited cost report to existing payment rates. (n) HHSC may adjust payment rates, if determined appropriate, when federal or state laws, rules, standards, regulations, policies, or guidelines are changed or adopted. These adjustments may result in increases or decreases in payment rates. Providers must be informed of the specific law, rule, standard, regulation, policy or guideline change and be given the opportunity to comment on any rate adjustment resulting from the change prior to the actual payment rate adjustment. (o) To implement Chapter 1022 of the Acts of the 75th Texas Legislature, §103, the executive director may develop and implement one or more pilot competitive procurement processes to purchase substitute care services, including foster family care services and specialized substitute care services. The pilot programs must be designed to produce a substitute care system that is outcome-based and that uses outcome measures. Rates for the pilot(s) will be the result of the competitive procurement process, but must be found to be reasonable by the executive director. Rates are subject to adjustment as allowed in subsections (a) and (m) of this section. (p) Payment rates for psychiatric step-down services are determined on a pro forma basis in accordance with §355.105(h) of this chapter. Payment rates for psychiatric step-down services effective September 1, 2017, will be equal to the rates in effect on August 31, 2015. (q) Definitions. (1) Child-placing agency (CPA)--Child-placing agencies as defined in 40 Texas Administrative Code (TAC) §745.21. (2) Community-based Care--Community-based Care as defined in 40 TAC §700.108. (3) CPA retainage--The portion of the rate that includes the CPA's costs for administering the service, including, but not limited to recruiting and training foster families, matching children with foster families, monitoring foster families and foster homes, and the associated overhead costs. (4) Emergency Care Services--Emergency care services as defined in 40 TAC §748.61. (5) Foster home--Foster home as defined in 40 TAC §749.43 and §750.43. (6) General Residential Operation (GRO)--General residential operations as defined in 40 TAC §748.43. (7) Intensive Psychiatric Transition Program (IPTP)-- Intensive Psychiatric Transition Program as defined in 40 TAC §700.2381. (8) Levels of service--Levels of service as described in 40 TAC Chapter 700, Subchapter W. (9) Residential Treatment Center (RTC)--Residential treatment center as defined in 40 TAC §748.43. (10) Temporary Emergency Placement (TEP)--Temporary Emergency Placement as defined in 40 TAC §700.1337. (11) Treatment Foster Care (TFF)--Treatment Foster Care as defined in 40 TAC §700.1335. (r) Rates effective September 1, 2015. Rates are paid for each level of service identified by DFPS. (1) For CPAs, the rate consists of a foster home payment described in paragraph (2) of this subsection and a CPA retainage. Effective September 1, 2015, the CPA retainage for each level of service will be equal CPA retainage for that level of service in effect August 31, 2015: (A) plus 9.39 percent for the basic level of service; (B) plus 1.14 percent for the moderate level of service; (C) plus 0.42 percent for the specialized level of service; and (D) plus 0.01 percent for the intense level of service. (2) For foster homes, the minimum daily rate to be paid to a foster home effective September 1, 2015, for each level of service will be equal to the rate for that level of service in effect August 31, 2015. (3) For GROs and RTCs, the rates effective September 1, 2015, will be equal to the rates paid to GROs and RTCs in effect August 31, 2015: (A) plus 9.58 percent for the specialized level of service; (B) plus 0.3 percent for the intense level of service; and (C) unchanged for other levels of service. (4) For emergency care services the rates effective September 1, 2015, will be equal to the rates in effect August 31, 2015, plus 6.0 percent. (s) Rates effective September 1, 2017. Rates are paid for each level of service identified by DFPS. (1) For CPAs, the rate consists of a foster home payment described in paragraph (2) of this subsection and a CPA retainage. Effective September 1, 2017, the combined CPA retainage and foster home payment for each level of service will be: (A) $48.47 for the basic level of service; (B) $85.46 for the moderate level of service; (C) $109.08 for the specialized level of service; and (D) $186.42 for the intense level of service. (2) For foster homes, the minimum daily rate to be paid to a foster home effective September 1, 2017, for each level of service will be: (A) $27.07 for the basic level of service; (B) $47.37 for the moderate level of service; (C) $57.86 for the specialized level of service; and (D) $92.43 for the intense level of service. (3) For GROs and RTCs, the rates effective September 1, 2017, will be: (A) $45.19 for the basic level of service; (B) $103.03 for the moderate level of service; (C) $197.69 for the specialized level of service; (D) $277.37 for the intense level of service; and (E) $400.72 for the intense plus level of service. (4) For emergency care services, the rate effective September 1, 2017, will be $129.53. (5) For treatment foster care, the rate effective September 1, 2017, will be $277.37. (t) Community-based Care. (1) Initial payment rates for a defined rate period for Single Source Continuum Contractors under Community-based Care are determined on a pro forma basis in accordance with §355.105(h) of this chapter using the official forecast of case mix for paid foster care for each specific catchment area for the rate period available at the time the payment rates are calculated. (2) HHSC will recalculate payments rates whenever a new official forecast of case mix for paid foster care is available. (3) HHSC will compare the payment rates calculated using actual paid foster care case mix data for each catchment area to the payment rates in place for the rate period to determine the percentage difference between the two sets of payment rates. (4) If the payment rates calculated using actual paid foster care case mix data for a catchment area are at least 1% greater than the initial payment rates for the rate period, HHSC will increase the catchment area payment rates. (5) If the payment rates calculated using actual paid foster care case mix for a catchment area are at least 1% less than the initial payment rates for the rate period, HHSC will reduce the catchment area payment rates; (6) Calculations and rate adjustments, if any, will be performed separately for each catchment area. (u) Treatment Foster Family, Integrated Care Coordination Placement, Integrated Care Coordination Case Management, and Temporary Emergency Placement. (1) The payment rates for these services are developed based on rates determined for other programs that provide similar services. If payment rates are not available from other programs that provide similar services, payment rates are determined using a pro forma approach in accordance with §355.105(h) of this chapter. The information in §355.101 of this chapter (relating to Introduction) and §355.105(g) of this chapter also applies. (2) Reporting of cost. To gather adequate financial and statistical information upon which to base reimbursement, HHSC may require a contracted provider to submit a cost report for one or more of these services. (v) Rates effective September 1, 2019. Rates are paid for each level of service identified by DFPS. (1) For CPAs, the rate consists of a foster home payment described in paragraph (2) of this subsection and a CPA retainage. The combined CPA retainage and foster home payment for each level of service will be: (A) $49.54 for the basic level of service; (B) $87.36 for the moderate level of service; (C) $110.10 for the specialized level of service; and (D) $186.42 for the intense level of service. (2) For foster homes, the minimum daily rate to be paid to a foster home each level of service will be: (A) $27.07 for the basic level of service; (B) $47.37 for the moderate level of service; (C) $57.86 for the specialized level of service; and (D) $92.43 for the intense level of service. (3) For GROs and RTCs, the rates will be: (A) $45.19 for the basic level of service; (B) $108.18 for the moderate level of service; (C) $197.69 for the specialized level of service; (D) $277.37 for the intense level of service; and (E) $400.72 for the intense plus level of service. (4) For emergency care services, the rate will be $137.30. (5) For treatment foster care, the rate consists of a foster home payment and a CPA retainage. The combined CPA retainage and foster home payment will be $277.37.(6) For Intensive Psychiatric Transition Program (IPTP), the rate will be $374.33. (7) For Temporary Emergency Placement (TEP), the rate will be $400.72.</content><note type="source"><p>Source Note: The provisions of this §700.1753 adopted to be effective September 13, 2001, 26 TexReg 6962; transferred effective September 1, 2004, as published in the Texas Register September 17, 2004, 29 TexReg 9014; amended to be effective November 27, 2005, 30 TexReg 7723; amended to be effective September 1, 2007, 32 TexReg 5342; amended to be effective September 1, 2009, 34 TexReg 5659; amended to be effective August 31, 2010, 35 TexReg 7726; amended to be effective September 1, 2011, 36 TexReg 5334;amended to be effective September 1, 2013, 38 TexReg 5436; amended to be effective September 1, 2015, 40 TexReg 5302; amended to be effective June 11, 2017, 42 TexReg 3001; amended to be effective August 30, 2017, 42 TexReg 4275; transferred effective November 15, 2017, as published in the Texas Register November 3, 2017, 42 TexReg 6201; amended to be effective December 9, 2020, 45 TexReg 8780.</p></note></section><section identifier="/us/state/tx/tac/t40/p19/c700/scQ/s700.1755"><num value="700.1755">§700.1755</num><heading>What is the Reimbursement Methodology for Supervised Independent Living?</heading><content>(a) Payment rate determination. Payment rates for the Supervised Independent Living Program, and if applicable to the young adult an additional rate for Enhanced Case Management services under §700.348 of this title (relating to Enhanced Case Management Services in a Supervised Independent Living Setting), are developed based on rates determined for other programs that provide similar services. If payment rates are not available from other programs that provide similar services, payment rates are determined using a modeled pro forma approach in accordance with §355.105(h) of Title 1 (relating to General Reporting and Documentation Requirements, Methods, and Procedures). A pro forma analysis makes assumptions about the types of staff and service requirements and estimates the basic types and costs of salaries, products, and services necessary to deliver services that meet federal and state requirements.(b) Providers of 24-hour residential child care services will have the opportunity to discuss rate changes in regularly scheduled DFPS public meetings.</content><note type="source"><p>Source Note: The provisions of this §700.1755 adopted to be effective December 1, 2011, 36 TexReg 7859; transferred effective November 15, 2017, as published in the Texas Register November 3, 2017, 42 TexReg 6201; amended to be effective December 9, 2020, 45 TexReg 8780.</p></note></section></subchapter><subchapter identifier="/us/state/tx/tac/t40/p19/c700/scR"><num value="R">SUBCHAPTER R</num><heading>STRENGTHENING FAMILIES THROUGH ENHANCED IN-HOME SUPPORT PROGRAM</heading><section identifier="/us/state/tx/tac/t40/p19/c700/scR/s700.1801"><num value="700.1801">§700.1801</num><heading>What is the Strengthening Families Through Enhanced In-Home Support Program?</heading><content>(a) The Strengthening Families Through Enhanced In-Home Support Program is designed to mitigate child neglect, which is exacerbated by poverty, by providing support and benefits to affected families.(b) In accordance with this subchapter, the Department of Family and Protective Services (DFPS) may assist families receiving Family Based Safety Services or Family Reunification Services.(c) Any benefits provided under the program are subject to state and federal law and limitations imposed by DFPS in accordance with this chapter or by policy.</content><note type="source"><p>Source Note: The provisions of this §700.1801 adopted to be effective March 1, 2008, 33 TexReg 1360.</p></note></section><section identifier="/us/state/tx/tac/t40/p19/c700/scR/s700.1802"><num value="700.1802">§700.1802</num><heading>What benefits are available?</heading><content>(a) Subject to the availability of funds, the Department of Family and Protective Services (DFPS) may provide eligible families with:(1) Family Enhancement benefits, which consist of goods and services;(2) Family Empowerment benefits, which consist of monetary assistance, goods, and services; and(3) Traditional Services, which consist of a variety of purchased child protective services.(b) Maximum limits for benefits under this program set forth in §700.1803 of this title (relating to What type of Family Enhancement goods and services may be provided?) and §700.1804 of this title (relating to What monetary assistance, goods, and services may be provided to support Family Empowerment?) apply to each eligible family, regardless of the number of DFPS interventions.</content><note type="source"><p>Source Note: The provisions of this §700.1802 adopted to be effective March 1, 2008, 33 TexReg 1360; amended to be effective May 1, 2010, 35 TexReg 3291.</p></note></section><section identifier="/us/state/tx/tac/t40/p19/c700/scR/s700.1803"><num value="700.1803">§700.1803</num><heading>What type of Family Enhancement goods and services may be provided?</heading><content>(a) The Department of Family and Protective Services (DFPS) may provide a maximum of $600 of Family Enhancement goods and services to an eligible family.(b) Goods or services provided as Family Enhancement must not be used to support a family's basic daily needs.</content><note type="source"><p>Source Note: The provisions of this §700.1803 adopted to be effective March 1, 2008, 33 TexReg 1360; amended to be effective May 1, 2010, 35 TexReg 3291.</p></note></section><section identifier="/us/state/tx/tac/t40/p19/c700/scR/s700.1804"><num value="700.1804">§700.1804</num><heading>What monetary assistance, goods, and services may be provided to support Family Empowerment?</heading><content>(a) The Department of Family and Protective Services (DFPS) may provide a maximum of $3,000 in Family Empowerment benefits to an eligible family, which may include goods, services, and monetary assistance in the sum of $250 or less.(b) Monetary assistance, goods, and services provided as Family Empowerment are for a family's basic needs and must be:(1) authorized and provided within the first four months of the case and may not be extended;(2) designed to deal with a specific crisis or episode of need; and(3) for non-recurrent, short-term benefits, but not for ongoing needs.</content><note type="source"><p>Source Note: The provisions of this §700.1804 adopted to be effective March 1, 2008, 33 TexReg 1360; amended to be effective May 1, 2010, 35 TexReg 3291.</p></note></section><section identifier="/us/state/tx/tac/t40/p19/c700/scR/s700.1805"><num value="700.1805">§700.1805</num><heading>What type of Traditional Services may the Department of Family and Protective Services (DFPS) provide under the Strengthening Families Through Enhanced In-Home Support Program?</heading><content>DFPS may provide a variety of Traditional Services, including counseling, therapy, assessments, and other services ordinarily purchased by DFPS for clients of Child Protective Services.</content><note type="source"><p>Source Note: The provisions of this §700.1805 adopted to be effective May 1, 2010, 35 TexReg 3291.</p></note></section><section identifier="/us/state/tx/tac/t40/p19/c700/scR/s700.1806"><num value="700.1806">§700.1806</num><heading>Who decides what benefits best meets the family's needs?</heading><content>At a meeting convened by DFPS, the family decides how the monetary assistance is to be used or what goods and services best meet the family's needs, subject to federal guidelines and DFPS approval.</content><note type="source"><p>Source Note: The provisions of this §700.1806 adopted to be effective May 1, 2010, 35 TexReg 3291.</p></note></section><section identifier="/us/state/tx/tac/t40/p19/c700/scR/s700.1807"><num value="700.1807">§700.1807</num><heading>What are the eligibility requirements?</heading><content>(a) Benefits under the Strengthening Families Through Enhanced In-Home Support Program are subject to Department of Family and Protective Services (DFPS) approval and must be used:(1) to promote family stability;(2) to accomplish one or more of the objectives that are identified in the family's Plan of Service;(3) to prevent removal of the child from the home or speed reunification of the child with the family; and(4) for one or more of the following purposes:(A) protect the safety of the child;(B) meet the child's needs;(C) relieve family stress; or(D) enhance family strengths and functioning.(b) To be eligible to receive benefits under the program, a family must:(1) be recommended by DFPS staff to receive Family Based Safety Services or Family Reunification Services and the family must agree to the services;(2) have the child living in the home or have a family service plan that recommends the child be returned to the home within 180 days;(3) have a household income at or below 200% of the federal poverty guidelines;(4) be the subject of a DFPS investigation in which it is determined that neglect is a primary problem for the family;(5) be a parent by blood, marriage, or adoption or a managing conservator of the child who is the victim of or at risk of neglect;(6) have an identified problem in the home environment or family that contributed to neglect and can be remedied or mitigated by benefits available under this program; and(7) have a member that meets applicable citizenship and immigration status requirements.(c) DFPS may specify in policy procedures for the provision of benefits under this program.</content><note type="source"><p>Source Note: The provisions of this §700.1807 adopted to be effective May 1, 2010, 35 TexReg 3291.</p></note></section></subchapter><subchapter identifier="/us/state/tx/tac/t40/p19/c700/scS"><num value="S">SUBCHAPTER S</num><heading>INTERSTATE PLACEMENT OF CHILDREN</heading><section identifier="/us/state/tx/tac/t40/p19/c700/scS/s700.1901"><num value="700.1901">§700.1901</num><heading>All Interstate Placements</heading><content>(a) Texas Department of Protective and Regulatory Services (TDPRS) involvement. As specified in the Texas Family Code, Chapter 162, the state of Texas has enacted the Interstate Compact on the Placement of Children (ICPC) as law. Under that law, every placement of a child inside or outside Texas that is subject to the ICPC must be coordinated through TDPRS.(b) State laws and agency policies. TDPRS applies the same state laws and agency policies that govern placements within the state of Texas to interstate placements under the ICPC.(c) Interstate-placement regulations. Within the limits of state law, agency policy, and the best interest of the child, TDPRS also applies the regulations of the Association of Administrators of the ICPC (AAICPC) to interstate placements made under the ICPC. If necessary, however, in a particular child's placement, TDPRS may waive any AAICPC regulation that appears to conflict with state law, agency policy, or the best interest of the child, unless the court of jurisdiction prohibits such a waiver.(d) The Texas Interstate Placement Section. As specified in Chapter 45 of the Human Resources Code, the executive director of TDPRS is the compact administrator for Texas under the ICPC. To carry out the functions of the compact administrator, the executive director of TDPRS designates a deputy compact administrator and appoints appropriate support staff. The deputy administrator and support staff constitute the Texas Interstate Placement Section (TIPS) of the Office of Protective Services for Families and Children (PSFC). TIPS is the interstate compact office for Texas.(e) Requesting placements outside Texas. Every person and organization that requests approval to place a child from Texas in another state, district, or territory of the United States under the ICPC must submit an application to TIPS. The application must include all documents specified by TIPS and be prepared according to instructions issued by TIPS.(f) Requesting placements inside Texas.(1) Every person and organization that requests approval to place a child in Texas from another state, district, or territory of the United States under the ICPC must submit an application to TIPS through the compact administrator of the state, district, or territory from which the child is being placed, unless that state, district, or territory has not enacted the ICPC.(2) If the state, district, or territory from which a child is being placed has not enacted the ICPC, the person or organization requesting approval must either:(A) submit an application to TIPS through the authority responsible for coordinating such placements in the state, district, or territory from which the child is being placed, if there is such an authority; or(B) in the absence of such an authority, submit an application directly to TIPS.(3) The application specified in paragraphs (1) and (2) of this subsection must include all documents specified by TIPS and be prepared according to instructions issued by TIPS or by the compact administrator of the state from which the child is being placed.(g) Placement supervision. Whenever a child is placed in Texas or from Texas under the ICPC, the agency supervising the placement must submit a supervisory report on the placement at least once every three months until the court terminates the authority of the agency or individual placing the child, unless TIPS authorizes a reduced frequency. If the child's case is not closed within a year, however, the agency supervising the placement may, at its own discretion, reduce the frequency of supervisory reports to once every six months.</content><note type="source"><p>Source Note: The provisions of this §700.1901 adopted to be effective June 1, 1995, 20 TexReg 3098.</p></note></section><section identifier="/us/state/tx/tac/t40/p19/c700/scS/s700.1902"><num value="700.1902">§700.1902</num><heading>Interstate Placements Made or Supported by the Office of Protective Services for Families and Children (PSFC)</heading><content>(a) Applicable requirements. In addition to applying the requirements of the Interstate Compact on the Placement of Children (ICPC), PSFC also applies the state laws and agency policies that ordinarily govern the removal and placement of a child within the state of Texas whenever PSFC:(1) places an abused or neglected child outside Texas; or(2) supports the placement of an abused or neglected child inside Texas under the ICPC.(b) Types of placements outside Texas. PSFC places children outside Texas with the following types of caregivers:(1) parents;(2) relatives;(3) foster families;(4) adoptive families; and(5) residential treatment centers.(c) Placing children in residential treatment centers outside Texas.(1) Criteria. PSFC does not place children in residential treatment centers outside Texas unless:(A) an out-of-state facility is better equipped to meet a child's special needs than any facility available in Texas; or(B) there are no comparable facilities in Texas located close enough to the child's family to permit frequent visits or support family reunification, when:(i) the child's treatment plan calls for frequent visits;(ii) the child's permanency-planning goal is family reunification; or(iii) both.(2) Director's approval. Before PSFC requests permission to place a child in a residential treatment center under the ICPC, the director of PSFC must approve the placement.</content><note type="source"><p>Source Note: The provisions of this §700.1902 adopted to be effective June 1, 1995, 20 TexReg 3098.</p></note></section></subchapter><subchapter identifier="/us/state/tx/tac/t40/p19/c700/scW"><num value="W">SUBCHAPTER W</num><heading>SERVICE LEVEL SYSTEM</heading><section identifier="/us/state/tx/tac/t40/p19/c700/scW/s700.2301"><num value="700.2301">§700.2301</num><heading>What is the description of the Basic Service Level?</heading><content>The Basic Service Level consists of a supportive setting, preferably in a family that is designed to maintain or improve the child's functioning including:(1) routine guidance and supervision to ensure the child's safety and sense of security;(2) affection, reassurance, and involvement in activities appropriate to the child's age and development to promote the child's well-being;(3) contact, in a manner that is deemed in the best interest of the child, with siblings, family members and other persons significant to the child to maintain a sense of identity and culture; and(4) provision of services to help the child keep, learn or improve skills and functioning for daily living, as well as therapeutic and medical intervention and guidance from professionals or para-professionals, on an as needed basis, to help the child maintain functioning appropriate to the child's age and development.</content><note type="source"><p>Source Note: The provisions of this §700.2301 adopted to be effective March 1, 2004, 29 TexReg 1416; amended to be effective October 15, 2015, 40 TexReg 7105.</p></note></section><section identifier="/us/state/tx/tac/t40/p19/c700/scW/s700.2303"><num value="700.2303">§700.2303</num><heading>What are the characteristics of a child that needs the Basic Service Level?</heading><content>A child needing basic services is capable of responding to limit setting or other interventions. The children needing basic services may include:(1) a child whose characteristics include one or more of the following:(A) transient difficulties and occasional misbehavior;(B) acting out in response to stress, but episodes of acting out are brief; and(C) behavior that is minimally disturbing to others, but the behavior is considered typical for the child's age and can be corrected.(2) a child with intellectual or developmental disabilities whose characteristics include minor to moderate difficulties with conceptual, social, and practical adaptive skills.</content><note type="source"><p>Source Note: The provisions of this §700.2303 adopted to be effective March 1, 2004, 29 TexReg 1416; amended to be effective October 15, 2015, 40 TexReg 7105.</p></note></section><section identifier="/us/state/tx/tac/t40/p19/c700/scW/s700.2321"><num value="700.2321">§700.2321</num><heading>What is the description of the Moderate Service Level?</heading><content>(a) The Moderate Service Level consists of a structured supportive setting, preferably in a family, in which most activities are designed to improve the child's functioning including:(1) more than routine guidance and supervision to ensure the child's safety and sense of security;(2) affection, reassurance, and involvement in structured activities appropriate to the child's age and development to promote the child's well-being;(3) contact, in a manner that is deemed in the best interest of the child, with siblings, family members and other persons significant to the child to maintain a sense of identity and culture; and(4) provision of services to help the child keep, learn or improve skills and functioning for daily living, as well as therapeutic and medical intervention and guidance from professionals or para-professionals to help the child attain or maintain functioning appropriate to the child's age and development.(b) In addition to the description in subsection (a) of this section, a child with primary medical needs, or a child who requires services to help the child keep, learn or improve skills and functioning for daily living may require intermittent interventions from a skilled caregiver who has demonstrated competence.</content><note type="source"><p>Source Note: The provisions of this §700.2321 adopted to be effective March 1, 2004, 29 TexReg 1416; amended to be effective October 15, 2015, 40 TexReg 7105.</p></note></section><section identifier="/us/state/tx/tac/t40/p19/c700/scW/s700.2323"><num value="700.2323">§700.2323</num><heading>What are the characteristics of a child that needs the Moderate Service Level?</heading><content>A child needing moderate services has problems in one or more areas of functioning. The children needing moderate services may include:(1) a child whose characteristics include one or more of the following:(A) frequent non-violent, anti-social acts;(B) occasional physical aggression;(C) minor self-injurious actions; and(D) difficulties that present a moderate risk of harm to self or others.(2) a child who abuses alcohol, drugs, or other conscious-altering substances whose characteristics include one or more of the following:(A) substance abuse to the extent or frequency that the child is at-risk of substantial problems; and(B) a historical diagnosis of substance abuse or dependency with a need for regular community support through groups or similar interventions.(3) a child with intellectual or developmental disabilities whose characteristics include:(A) moderate to substantial difficulties with conceptual, social, and practical adaptive skills to include daily living and self-care; and(B) moderate impairment in communication, cognition, or expressions of affect.(4) a child with primary medical needs, or a child who requires services to help the child keep, learn or improve skills and functioning for daily living whose characteristics include one or more of the following:(A) occasional exacerbations or intermittent interventions in relation to the diagnosed medical condition;(B) limited daily living and self-care skills;(C) ambulatory with assistance; and(D) daily access to on-call, skilled caregivers with demonstrated competency.</content><note type="source"><p>Source Note: The provisions of this §700.2323 adopted to be effective March 1, 2004, 29 TexReg 1416; amended to be effective October 15, 2015, 40 TexReg 7105.</p></note></section><section identifier="/us/state/tx/tac/t40/p19/c700/scW/s700.2341"><num value="700.2341">§700.2341</num><heading>What is the description of the Specialized Service Level?</heading><content>(a) The Specialized Service Level consists of a treatment setting, preferably in a family in which caregivers have specialized training to provide services to help the child keep, learn or improve skills and functioning for daily living, as well as therapeutic and medical support and interventions including:(1) 24-hour supervision to ensure the child's safety and sense of security, which includes close monitoring and increased limit setting;(2) affection, reassurance, and involvement in therapeutic activities appropriate to the child's age and development to promote the child's well-being;(3) contact, in a manner that is deemed in the best interest of the child, with siblings, family members and other persons significant to the child to maintain a sense of identity and culture; and(4) provision of services to help the child keep, learn or improve skills and functioning for daily living, as well as therapeutic and medical intervention and guidance that is regularly scheduled and professionally designed and supervised to help the child attain functioning appropriate to the child's age and development.(b) In addition to the description in subsection (a) of this section, a child with primary medical needs or who requires services to help the child keep, learn or improve skills and functioning for daily living may require regular interventions from a caregiver who has demonstrated competence.</content><note type="source"><p>Source Note: The provisions of this §700.2341 adopted to be effective March 1, 2004, 29 TexReg 1416; amended to be effective October 15, 2015, 40 TexReg 7105.</p></note></section><section identifier="/us/state/tx/tac/t40/p19/c700/scW/s700.2343"><num value="700.2343">§700.2343</num><heading>What are the characteristics of a child that needs the Specialized Service Level?</heading><content>A child needing specialized services has severe problems in one or more areas of functioning. The children needing specialized services may include:(1) a child whose characteristics include one or more of the following:(A) unpredictable non-violent, anti-social acts;(B) frequent or unpredictable physical aggression;(C) being markedly withdrawn and isolated;(D) major self-injurious actions to include recent suicide attempts; and(E) difficulties that present a significant risk of harm to self or others.(2) a child who abuses alcohol, drugs, or other conscious-altering substances whose characteristics include one or more of the following:(A) severe impairment because of the substance abuse; and(B) a primary diagnosis of substance abuse or dependency.(3) a child with intellectual or developmental disabilities whose characteristics include one or more of the following:(A) severely impaired conceptual, social, and practical adaptive skills to include daily living and self-care;(B) severe impairment in communication, cognition, or expressions of affect;(C) lack of motivation or the inability to complete self-care activities or participate in social activities;(D) inability to respond appropriately to an emergency; and(E) multiple physical disabilities including sensory impairments.(4) a child with primary medical needs or who requires services to help the child keep, learn or improve skills and functioning for daily living whose characteristics include one or more of the following:(A) regular or frequent exacerbations or interventions in relation to the diagnosed medical condition;(B) severely limited daily living and self-care skills;(C) non-ambulatory or confined to a bed; and(D) constant access to on-site, medically skilled caregivers with demonstrated competencies in the interventions needed by children in their care.</content><note type="source"><p>Source Note: The provisions of this §700.2343 adopted to be effective March 1, 2004, 29 TexReg 1416; amended to be effective October 15, 2015, 40 TexReg 7105.</p></note></section><section identifier="/us/state/tx/tac/t40/p19/c700/scW/s700.2361"><num value="700.2361">§700.2361</num><heading>What is the description of the Intense Service Level?</heading><content>(a) The Intense Service Level consists of a high degree of structure, preferably in a family, to limit the child's access to environments as necessary to protect the child. The caregivers have specialized training to provide services to help the child keep, learn or improve skills and functioning for daily living as well as intense therapeutic supports and interventions with limited outside access, including:(1) 24-hour supervision to ensure the child's safety and sense of security, which includes frequent one-to-one monitoring with the ability to provide immediate on site response;(2) affection, reassurance, and involvement in therapeutic activities appropriate to the child's age and development to promote the child's well-being;(3) contact, in a manner that is deemed in the best interest of the child, with siblings, family members and other persons significant to the child, to maintain a sense of identity and culture;(4) provision of services to help the child keep, learn or improve skills and functioning for daily living, as well as therapeutic and medical intervention and guidance that is frequently scheduled and professionally designed and supervised to help the child attain functioning more appropriate to the child's age and development; and(5) consistent and frequent attention, direction, and assistance to help the child attain stabilization and connect appropriately with the child's environment.(b) In addition to the description in subsection (a) of this section, a child with intellectual or developmental disabilities needs professionally directed, designed, and monitored interventions to enhance mobility, communication, sensory, motor, and cognitive development, and self-help skills.(c) In addition to the description in subsection (a) of this section, a child with primary medical needs or who requires services to help the child keep, learn or improve skills and functioning for daily living or requires frequent and consistent interventions. The child may be dependent on people or technology for accommodation and require interventions designed, monitored, or approved by an appropriately constituted interdisciplinary team.</content><note type="source"><p>Source Note: The provisions of this §700.2361 adopted to be effective March 1, 2004, 29 TexReg 1416; amended to be effective October 15, 2015, 40 TexReg 7105.</p></note></section><section identifier="/us/state/tx/tac/t40/p19/c700/scW/s700.2363"><num value="700.2363">§700.2363</num><heading>What are the characteristics of a child that needs the Intense Service Level?</heading><content>A child needing intense services has severe problems in one or more areas of functioning that present an imminent and critical danger of harm to self or others. The children needing intense services may include:(1) a child whose characteristics include one or more of the following:(A) extreme physical aggression that causes harm;(B) recurring major self-injurious actions to include serious suicide attempts;(C) other difficulties that present a critical risk of harm to self or others; and(D) severely impaired reality testing, communication skills, cognitive, affect, or personal hygiene.(2) a child who abuses alcohol, drugs, or other conscious-altering substances whose characteristics include a primary diagnosis of substance dependency in addition to being extremely aggressive or self-destructive to the point of causing harm.(3) a child with intellectual or developmental disabilities whose characteristics include one or more of the following:(A) impairments so severe in conceptual, social, and practical adaptive skills that the child's ability to actively participate in the program is limited and requires constant one-to-one supervision for the safety of self or others; and(B) a consistent inability to cooperate in self-care while requiring, constant one-to-one supervision for the safety of self or others.(4) a child with primary medical needs or who requires services to help the child keep, learn or improve skills and functioning for daily living that present an imminent and critical medical risk whose characteristics include one or more of the following:(A) frequent acute exacerbations and chronic, intensive interventions in relation to the diagnosed medical condition;(B) inability to perform daily living or self-care skills; and(C) medical supervision, 24-hour on-site, to sustain life support.</content><note type="source"><p>Source Note: The provisions of this §700.2363 adopted to be effective March 1, 2004, 29 TexReg 1416; amended to be effective October 15, 2015, 40 TexReg 7105.</p></note></section><section identifier="/us/state/tx/tac/t40/p19/c700/scW/s700.2365"><num value="700.2365">§700.2365</num><heading>What is the description of the Intense Plus Service Level?</heading><content>The Intense Plus Service Level consists of the highest degree of structure, and meets all of the requirements in §700.2361 of this title (relating to What is the description of the Intense Service Level?), in addition to the requirements of this section. Services and treatment at the Intense Plus Level must be provided in a therapeutic residential setting by caregivers with specialized training as further outlined in contract for the provision of services to a child at the Intense Plus Service Level. In addition to any such contractual requirements, a provider serving a child at the Intense Plus Service Level must:(1) offer single child and sibling group placement;(2) deliver an appropriate number of medical and therapeutic services that are research-supported, reimbursable by Medicaid or other funding sources, and readily available in the community, including but not limited to daily therapy sessions, individual and group therapy, and specialized therapies such as Eye Movement Desensitization and Reprocessing Therapy, Applied Behavior Analysis (certified); and Treatment for Anorexia/Bulimia/Eating Disorders, and others as appropriate;(3) provide continued care for a child following psychiatric or medical hospitalization; and(4) offer "step down" from the Intense Plus Service Level, which includes long-term discharge and aftercare planning.</content><note type="source"><p>Source Note: The provisions of this §700.2365 adopted to be effective September 1, 2017, 42 TexReg 4307.</p></note></section><section identifier="/us/state/tx/tac/t40/p19/c700/scW/s700.2367"><num value="700.2367">§700.2367</num><heading>What are the characteristics of a child that needs the Intense Plus Service Level?</heading><content>(a) The Intense Plus Service Level is designed to address chronically serious to severe emotional and/or behavioral management problems that interfere with the child's ability to function in a family, school, or community setting outside of a therapeutic environment. Children at the Intense Plus Service Level do not generally function socially in an appropriate manner, and the child's emotional functioning is largely incongruent with chronological age. At this level, children frequently have serious to severe outbursts that make it difficult for them to participate in routines or accept responsibility for behavior.(b) Children at the Intense Plus Service Level display:(1) all of the characteristics of the Intense Service Level as described in §700.2363 of this title (relating to What are the characteristics of a child that needs the Intense Service Level?); and(2) a history of poor or inconsistent response to treatment as well as attempted multiple, unsuccessful interventions that have resulted in no remission of symptoms; or(3) characteristics and history that make successful treatment at a lower service level unsuccessful, such as:(A) extreme and recurring episodes of physical aggression that causes harm;(B) extreme and recurring episodes of sexually aggressive behavior;(C) chronic runaway behaviors, including any exposure to or risk of human trafficking;(D) certain medical conditions such as diabetes requiring injections or dialysis; and(E) other characteristics specified by the contract.</content><note type="source"><p>Source Note: The provisions of this §700.2367 adopted to be effective September 1, 2017, 42 TexReg 4307.</p></note></section><section identifier="/us/state/tx/tac/t40/p19/c700/scW/s700.2381"><num value="700.2381">§700.2381</num><heading>What is the Intensive Psychiatric Transition program?</heading><content>The Intensive Psychiatric Transition program offers a short-term mental health treatment and placement option for children in DFPS conservatorship with acute, intensive psychiatric needs at the time of release from a psychiatric hospitalization or as an alternative to a psychiatric hospitalization. The purpose is to provide enriched services and supports to stabilize children and youth and promote successful transitions to less restrictive placements.</content><note type="source"><p>Source Note: The provisions of this §700.2381 adopted to be effective September 1, 2007, 32 TexReg 5391.</p></note></section><section identifier="/us/state/tx/tac/t40/p19/c700/scW/s700.2383"><num value="700.2383">§700.2383</num><heading>Who is eligible for the Intensive Psychiatric Transition program?</heading><content>To be eligible for this program, a child must:(1) be in DFPS conservatorship;(2) have had at least one psychiatric hospitalization in the preceding 12 months;(3) either be ready for discharge from a psychiatric hospital or at imminent risk of a subsequent psychiatric hospitalization; and(4) have been determined by the Associate Commissioner of CPS or the Associate Commissioner's designee to be in crisis and in need of acute stabilization.</content><note type="source"><p>Source Note: The provisions of this §700.2383 adopted to be effective September 1, 2007, 32 TexReg 5391; amended to be effective September 1, 2009, 34 TexReg 5750; amended to be effective May 15, 2019, 44 TexReg 2362.</p></note></section><section identifier="/us/state/tx/tac/t40/p19/c700/scW/s700.2385"><num value="700.2385">§700.2385</num><heading>How long may a child be placed in the Intensive Psychiatric Transition program?</heading><content>All placements in this program are limited to 60 days, unless the Associate Commissioner of CPS or the Associate Commissioner's designee grants a one-time, child-specific waiver for an additional 60 days.</content><note type="source"><p>Source Note: The provisions of this §700.2385 adopted to be effective September 1, 2007, 32 TexReg 5391; amended to be effective May 15, 2019, 44 TexReg 2362.</p></note></section></subchapter><subchapter identifier="/us/state/tx/tac/t40/p19/c700/scZ"><num value="Z">SUBCHAPTER Z</num><heading>TITLE IV-A EMERGENCY ASSISTANCE PROGRAM</heading><section identifier="/us/state/tx/tac/t40/p19/c700/scZ/s700.2701"><num value="700.2701">§700.2701</num><heading>Overview</heading><content>The Title IV-A Emergency Assistance Program is operated in compliance with applicable federal statutes and regulations and the approved Title IV-A State Plan.</content><note type="source"><p>Source Note: The provisions of this §700.2701 adopted to be effective March 1, 1994, 19 TexReg 810; transferred effective September 1, 2004, as published in the Texas Register September 17, 2004, 29 TexReg 9013; amended to be effective December 1, 2013, 38 TexReg 8249.</p></note></section><section identifier="/us/state/tx/tac/t40/p19/c700/scZ/s700.2703"><num value="700.2703">§700.2703</num><heading>Eligibility</heading><content>(a) The Department of Family and Protective Services (DFPS) or its authorized designee determines eligibility of a child and/or his family for Title IV-A Emergency Services if all of the following criteria are met:(1) An emergency exists, as defined in subsection (b) of this section.(2) The family applies for care and services available in emergency situations, or DFPS or its authorized designee applies on behalf of a child whose parents are unavailable or unwilling to apply.(3) The child has lived with a relative at some time within the six-month period prior to application.(4) The emergency arose for a reason other than an adult family member's refusal to accept employment without good cause.(5) The applicant, child, or family declares annual income of less than $63,000.(b) An emergency exists when DFPS:(1) determines that a child is at risk; or(2) has removed a child from the child's home and placed the child in its care; or(3) determines that a child formerly in its care is at risk of being returned to that care.</content><note type="source"><p>Source Note: The provisions of this §700.2703 adopted to be effective March 1, 1994, 19 TexReg 810; amended to be effective March 1, 1996, 21 TexReg 1431; transferred effective September 1, 2004, as published in the Texas Register September 17, 2004, 29 TexReg 9013; amended to be effective December 1, 2013, 38 TexReg 8249.</p></note></section><section identifier="/us/state/tx/tac/t40/p19/c700/scZ/s700.2705"><num value="700.2705">§700.2705</num><heading>Service Provision</heading><content>The Department of Family and Protective Services (DFPS) provides services to an eligible child and/or his family under the Title IV-A Emergency Assistance Program as determined necessary and appropriate and as authorized by DFPS.</content><note type="source"><p>Source Note: The provisions of this §700.2705 adopted to be effective March 1, 1994, 19 TexReg 810; amended to be effective March 1, 1996, 21 TexReg 1431; transferred effective September 1, 2004, as published in the Texas Register September 17, 2004, 29 TexReg 9013; amended to be effective December 1, 2013, 38 TexReg 8249.</p></note></section></subchapter></chapter><chapter identifier="/us/state/tx/tac/t40/p19/c702"><num value="702">CHAPTER 702</num><heading>GENERAL ADMINISTRATION</heading><subchapter identifier="/us/state/tx/tac/t40/p19/c702/scA"><num value="A">SUBCHAPTER A</num><heading>INTRODUCTION</heading><section identifier="/us/state/tx/tac/t40/p19/c702/scA/s702.1"><num value="702.1">§702.1</num><heading>What is the purpose of this chapter?</heading><content>The purpose of this chapter is to provide rules that guide the general administration of the Texas Department of Protective and Regulatory Services or that pertain to more than one program area with the department.</content><note type="source"><p>Source Note: The provisions of this §702.1 adopted to be effective March 1, 2001, 26 TexReg 1351.</p></note></section><section identifier="/us/state/tx/tac/t40/p19/c702/scA/s702.5"><num value="702.5">§702.5</num><heading>How are the terms in this chapter defined?</heading><content>The words and terms in this chapter have the following meanings, unless the context clearly indicates otherwise:(1) Advisory committee--Any group, such as a committee, commission, task force, workgroup, or other entity with multiple members that has as its primary function advising the Department of Family and Protective Services (DFPS).(2) APS--Adult Protective Services, a division of (DFPS) responsible for providing protective services for elderly and disabled persons.(3) CCL--Child-Care Licensing, a division of DFPS responsible for the regulation of child-care facilities, as provided in Chapter 42 of the Human Resources Code.(4) Commissioner--The Commissioner of DFPS.(5) CPS--Child Protective Services, a division of DFPS responsible for providing protective services to children and for providing family support and family preservation services.(6) DFPS or the Department--The Texas Department of Family and Protective Services.(7) Executive Commissioner--The Executive Commissioner of the Texas Health and Human Services Commission or his or her designee.(8) PEI--Prevention and Early Intervention, a division of (DFPS) responsible for implementing and managing programs intended to provide early intervention or prevent at-risk behaviors that lead to child abuse, delinquency, running away, truancy, and dropping out of school.(9) Quorum--A majority of an advisory committee's active membership.(10) Single Source Continuum Contractor--Entity with which DFPS contracts for the full continuum of care in a Foster Care Redesign catchment area.</content><note type="source"><p>Source Note: The provisions of this §702.5 adopted to be effective March 1, 2001, 26 TexReg 1351; amended to be effective July 1, 2016, 41 TexReg 4053.</p></note></section></subchapter><subchapter identifier="/us/state/tx/tac/t40/p19/c702/scB"><num value="B">SUBCHAPTER B</num><heading>AGENCY RECORDS AND INFORMATION</heading><section identifier="/us/state/tx/tac/t40/p19/c702/scB/s702.201"><num value="702.201">§702.201</num><heading>What types of records are maintained by the Department of Family and Protective Services?</heading><content>(a) The Department of Family and Protective Services (DFPS) maintains records relating to our general administrative functions, including personnel records, financial records, policy and procedure manuals, and agency performance measurements. These records, referred to as "Administrative Records," are generally available to the public and may be requested under the Texas Public Information Act in Chapter 552, Texas Government Code.(b) DFPS also maintains confidential records on clients DFPS is or was involved with, including records developed in an abuse and neglect investigation and/or in providing services as the result of an investigation, in order to meet state and federal accountability requirements, as applicable. These records, referred to as "Case Records," are generally not available to the public, although they may be available to individuals, government agencies, and others, as provided by state and federal laws and DFPS rules. Rules concerning confidential case records specific to each DFPS program can be found in Chapters 700, 705, and 707 of this part.(c) A complete listing of the types of records maintained by DFPS may be found in the DFPS Records Retention Schedule. The Schedule can be found on DFPS's public website.</content><note type="source"><p>Source Note: The provisions of this §702.201 adopted to be effective March 1, 2001, 26 TexReg 1351; amended to be effective September 8, 2021, 46 TexReg 5593.</p></note></section><section identifier="/us/state/tx/tac/t40/p19/c702/scB/s702.203"><num value="702.203">§702.203</num><heading>How does the Department of Family and Protective Services maintain confidential case records?</heading><content>(a) The Department of Family and Protective Services (DFPS) maintains paper and electronic case records. Electronic case records are primarily maintained in DFPS's electronic case management system of records, called Information Management Protecting Adults and Children in Texas (IMPACT). Electronic records are also maintained in other systems as needed.(b) As part of our case records, we may also maintain recordings made at child advocacy centers during the course of investigations if we are the owner of the recordings pursuant to Texas Family Code, §264.408(d) or when the child advocacy center provides us a copy of the recordings for our case records.(c) Physical files may be stored in the DFPS regional office handling the case while the case is active or open. When physical records are inactive or closed, they are transferred to DFPS's Records Management Group (RMG). DFPS's Records Management Officer determines the most appropriate way to retain them until their retention period is met. Physical records may be retained in their original format and stored at state facilities or with a third-party vendor or they may be converted to digital images for electronic filing.</content><note type="source"><p>Source Note: The provisions of this §702.203 adopted to be effective September 8, 2021, 46 TexReg 5593.</p></note></section><section identifier="/us/state/tx/tac/t40/p19/c702/scB/s702.205"><num value="702.205">§702.205</num><heading>How long does the Department of Family and Protective Services retain confidential case records?</heading><content>(a) Physical case records and case records and information in DFPS's electronic case management system entitled Information Management Protecting Adults and Children in Texas (IMPACT) and other electronic systems are generally retained and destroyed in accordance with the Department of Family and Protective Services' (DFPS) Records Retention Schedule. The Schedule can be found on DFPS's public website. The retention period of a record is calculated from the time the case is closed. When the retention period has expired, DFPS permanently removes the case information from any electronic storage, including IMPACT, and destroys any paper case record in a manner that protects confidentiality.(b) Notwithstanding subsection (a) of this section, the retention period for a DFPS record may be extended for the following reasons:(1) Pursuant to Texas Government Code §441.187, if a litigation, claim, negotiation, audit, open records request, administrative review, or other action involving the record is initiated before the retention period for the record expires, DFPS may not destroy the record until the completion of the action and resolution of all issues that arise from the action, even if the retention period for the record expires during that period. If an action or activity involving the record is initiated, the retention period for that record is extended for the amount of time that the action or activity is in process.(2) If DFPS opens a new case on a party to an older closed case that has not been destroyed pursuant to DFPS's retention schedule, DFPS may merge or relate the cases. Merged cases may be reclassified and extended to coincide with the retention period of the case with the latest retention period. For purposes of this section, merge means combining two or more separate cases into one case.(c) If the retention period for a case record is extended as provided in subsection (b) of this section, DFPS may use the information in the case record as necessary to make case related decisions, assess risk of abuse or neglect, or for any other purpose for as long as DFPS retains the case record.</content><note type="source"><p>Source Note: The provisions of this §702.205 adopted to be effective September 8, 2021; 46 TexReg 5593.</p></note></section><section identifier="/us/state/tx/tac/t40/p19/c702/scB/s702.207"><num value="702.207">§702.207</num><heading>How can you request confidential case records?</heading><content>If you are entitled to confidential case records, you can request the records in the following ways:(1) For the quickest response, submit your request for client records electronically through the Department of Family and Protective Services' (DFPS) website.(2) You also may submit a written request by mail. Written requests must be made on a DFPS Information Request Form and mailed to the DFPS Records Management Group at Y-937, P.O. Box 149030, Austin, TX, 78714-9030 with a copy of your photo identification. The forms can be found on the DFPS website.</content><note type="source"><p>Source Note: The provisions of this §702.207 adopted to be effective September 8, 2021, 46 TexReg 5593.</p></note></section><section identifier="/us/state/tx/tac/t40/p19/c702/scB/s702.209"><num value="702.209">§702.209</num><heading>How does the Department of Family and Protective Services prioritize fulfilling requests for copies of confidential client records that require redaction prior to their release?</heading><content>(a) The Department of Family and Protective Services (DFPS) fulfills requests for client records in the following priority order, from highest to lowest priority ranking:(1) Records provided in response to a subpoena or court order that has been properly served on DFPS;(2) Records provided in response to discovery in a lawsuit to which DFPS is a party;(3) Records provided to a prospective adoptive family before an adoption may be consummated;(4) Records provided to a party or the administrative law judge in an Employee Misconduct Registry administrative hearing;(5) Records provided to a party or the administrative law judge in a hearing conducted by the State Office of Administrative Hearings;(6) Records provided to a duly authorized person documenting the results of a school investigation as required by §261.406, Texas Family Code;(7) Records provided to a party in an administrative review of investigative findings that is conducted by DFPS;(8) Records provided to an adult who was previously in the conservatorship of DFPS if the request is for a copy of such adult's own "case record" as defined by §264.0145, Texas Family Code; and(9) Records provided to all other requestors entitled to receive the requested records, which are fulfilled in the order they are received.(b) Notwithstanding subsection (a) of this section, DFPS reserves the right to expedite any request for records when we determine that a delay in fulfilling the request may:(1) jeopardize the health or safety of any person;(2) cause any person to suffer undue hardship; or(3) result in DFPS's failure to meet a mandatory deadline for production of the requested records as imposed by a court or administrative tribunal.(c) Additional information on who is entitled to receive confidential client records is provided in the following chapters in Title 40, Texas Administrative Code:(1) Chapter 700 of this title (relating to Child Protective Services);(2) Chapter 705 of this title (relating to Adult Protective Services); and(3) Chapter 707 of this title (relating to Child Protective Investigations).</content><note type="source"><p>Source Note: The provisions of this §702.209 adopted to be effective September 8, 2021, 46 TexReg 5593.</p></note></section><section identifier="/us/state/tx/tac/t40/p19/c702/scB/s702.213"><num value="702.213">§702.213</num><heading>How can a member of the public obtain information or copies of administrative records that are not on the Department of Family and Protective Services web site?</heading><content>Requests for copies of administrative records as defined in §702.201(a) in this subchapter (relating to What types of records are maintained by the Department of Family and Protective Services?) must be submitted following the instructions on the DFPS public website, Open Records Policy. A written request may also be hand delivered to the DFPS headquarters office or mailed to the mailing address found on the DFPS public website.</content><note type="source"><p>Source Note: The provisions of this §702.213 adopted to be effective March 1, 2001, 26 TexReg 1351; amended to be effective September 8, 2021, 46 TexReg 5593.</p></note></section><section identifier="/us/state/tx/tac/t40/p19/c702/scB/s702.221"><num value="702.221">§702.221</num><heading>Is there a charge for copies of the Department of Family and Protective Services records?</heading><content>Yes. The Department of Family and Protective Services (DFPS) charges a fee to cover the costs of providing copies of its records. Fees are calculated according to rules adopted by the Office of the Attorney General. We may, at our discretion, waive charges if we determine that waiver is in the public interest or if we determine that the cost of collecting a fee exceeds the cost of providing the records.</content><note type="source"><p>Source Note: The provisions of this §702.221 adopted to be effective March 1, 2001, 26 TexReg 1351; amended to be effective September 8, 2021, 46 TexReg 5593.</p></note></section><section identifier="/us/state/tx/tac/t40/p19/c702/scB/s702.223"><num value="702.223">§702.223</num><heading>Which DFPS employee or Single Source Continuum Contractor (SSCC) employee can have access to the identity of an individual reporting child abuse or neglect?</heading><content>(a) A DFPS employee and a Single Source Continuum Contractor (SSCC) employee, is only allowed access to the identity of the person making a report of alleged or suspected child abuse or neglect under the following circumstances:(1) the employee is directly involved with an investigation, case, or other process involving the child who is the subject of the report or the child's parent or the person who has legal custody of the child;(2) the employee supervises, directly or indirectly an employee described in subsection (a)(1) of this section; or(3) the employee has a legitimate professional interest in an investigation, case, or other process involving the child who is the subject of the report or the child's parent or other person who has legal custody of the child that requires access to the reporter's identity.(b) For this section "other process" includes but is not limited to quality assurance, locating a missing child, new and ongoing training of DFPS or SSCC staff, and necessary technical support to maintain or update the case management system.(c) A reporter's identity is confidential and may only be disclosed if waived in writing by the individual making the report, as provided by Texas Family Code §261.201, or to a law enforcement officer for the purposes of conducting a criminal investigation of the report.</content><note type="source"><p>Source Note: The provisions of this §702.223 adopted to be effective May 22, 2024, 49 TexReg 3586.</p></note></section></subchapter><subchapter identifier="/us/state/tx/tac/t40/p19/c702/scC"><num value="C">SUBCHAPTER C</num><heading>CHILD ABUSE AND NEGLECT CENTRAL REGISTRY</heading><section identifier="/us/state/tx/tac/t40/p19/c702/scC/s702.251"><num value="702.251">§702.251</num><heading>What is the Central Registry?</heading><content>(a) The Child Abuse and Neglect Central Registry is a registry maintained by the Department of Family and Protective Services (DFPS), as required by Texas Family Code, §261.002, of substantiated cases of child abuse or neglect. The Central Registry is maintained as a subset of information in the DFPS electronic case management system entitled Information Management Protecting Adults and Children in Texas (IMPACT).(b) The Central Registry contains only the names of persons designated or sustained as perpetrators of child abuse or neglect by:(1) the Child Protective Investigations division of DFPS, including Investigations, Special Investigations, and Child Care Investigations; and(2) the Provider Investigation Program of the Health and Human Services Commission's Regulatory Services Department.(c) The Central Registry also contains the names of persons who are alleged to be the perpetrator of child abuse or neglect in an ongoing investigation being conducted by DFPS. If at the conclusion of the investigation DFPS does not designate the person as a perpetrator of the abuse or neglect, DFPS will remove the person's name from the Central Registry.</content><note type="source"><p>Source Note: The provisions of this §702.251 adopted to be effective December 1, 2012, 37 TexReg 9123; amended to be effective September 8, 2021, 46 TexReg 5593.</p></note></section><section identifier="/us/state/tx/tac/t40/p19/c702/scC/s702.255"><num value="702.255">§702.255</num><heading>How long is investigation information relating to a substantiated child abuse or neglect case retained in the Central Registry?</heading><content>Investigations that result in a "reason to believe" or "confirmed" finding are maintained in the Central Registry in accordance with the official Records Retention Schedule of the agency that conducted the investigation. When the case containing the investigation record is no longer retained, the central registry information is also deleted.</content><note type="source"><p>Source Note: The provisions of this §702.255 adopted to be effective December 1, 2012, 37 TexReg 9123; amended to be effective September 8, 2021, 46 TexReg 5593.</p></note></section><section identifier="/us/state/tx/tac/t40/p19/c702/scC/s702.257"><num value="702.257">§702.257</num><heading>Is the information in the Central Registry available to the general public?</heading><content>No. The information stored in the Central Registry is confidential and may be released by the Department of Family and Protective Services (DFPS) only as provided by federal and state law, including DFPS rules.</content><note type="source"><p>Source Note: The provisions of this §702.257 adopted to be effective December 1, 2012, 37 TexReg 9123; amended to be effective September 8, 2021, 46 TexReg 5593.</p></note></section></subchapter><subchapter identifier="/us/state/tx/tac/t40/p19/c702/scD"><num value="D">SUBCHAPTER D</num><heading>RELEASE OF RECORDS RELATING TO A CHILD FATALITY</heading><section identifier="/us/state/tx/tac/t40/p19/c702/scD/s702.301"><num value="702.301">§702.301</num><heading>What definitions apply to this subchapter?</heading><content>As used in this subchapter, the following words have the following meanings:(1) Agency foster home--A residential child-care facility as that term is defined in Chapter 42, Human Resources Code, that is verified by a licensed or certified child-placing agency to provide care for no more than six children for 24 hours per day in the home of the verified foster parent(s).(2) Agency foster group home--A residential child-care facility as that term is defined in Chapter 42, Human Resources Code, that is verified by a licensed or certified child-placing agency to provide care for no more than 12 children for 24 hours per day in the home of the verified foster parent(s).(3) Department--Department of Family and Protective Services.(4) General residential operation--A residential child-care facility as that term is defined in Chapter 42, Human Resources Code, that is licensed by the department to provide care for more than 12 children for 24 hours a day, including facilities known as children's homes, halfway houses, residential treatment centers, emergency shelters, and therapeutic camps.(5) Independent foster home--A residential child-care facility as that term is defined in Chapter 42, Human Resources Code, that is licensed by the department to provide care for no more than six children for 24 hours per day in the home of the foster parent(s).(6) Independent foster group home--A residential child-care facility as that term is defined in Chapter 42, Human Resources Code, that is licensed by the department to provide care for no more than 12 children for 24 hours per day in the home of the foster parent(s).(7) Individual who works under the auspices--A person described in §745.8553 of this title (relating to Who works "under the auspices of an operation"?).</content><note type="source"><p>Source Note: The provisions of this §702.301 adopted to be effective March 25, 2010, 35 TexReg 2315.</p></note></section><section identifier="/us/state/tx/tac/t40/p19/c702/scD/s702.303"><num value="702.303">§702.303</num><heading>Is the department authorized to release any information to the general public in the event of a child fatality that may be the result of abuse or neglect?</heading><content>In accordance with state and federal law permitting the release of certain information and findings relating to a child fatality that is investigated in connection with alleged abuse or neglect of a child by the child's caregiver or a member of the child's household, the department may release certain information in the event of a child fatality, as provided under this subchapter.</content><note type="source"><p>Source Note: The provisions of this §702.303 adopted to be effective March 25, 2010, 35 TexReg 2315.</p></note></section><section identifier="/us/state/tx/tac/t40/p19/c702/scD/s702.305"><num value="702.305">§702.305</num><heading>What types of abuse or neglect investigations are covered by this subchapter?</heading><content>This subchapter applies only to:(1) an investigation of abuse or neglect relating to a child fatality, other than a school investigation, that is conducted by the department's Child Protective Services division; and(2) an investigation of abuse or neglect relating to a child fatality that is conducted by the department's Child Care Licensing division in which the child-care provider that is investigated for possible abuse or neglect is one of the following types of residential care providers regulated under Chapter 42, Human Resources Code:(A) an agency foster home or agency foster group home;(B) an independent foster home or independent foster group home; or(C) a general residential operation.</content><note type="source"><p>Source Note: The provisions of this §702.305 adopted to be effective March 25, 2010, 35 TexReg 2315.</p></note></section><section identifier="/us/state/tx/tac/t40/p19/c702/scD/s702.307"><num value="702.307">§702.307</num><heading>What information may the department release to the general public for the investigations covered by this subchapter?</heading><content>(a) The department may release information regarding a child fatality only in response to a request for information relating to the child fatality.(b) The department will release the following information no later than five days following the death of the child or the receipt of the request for information regarding the death of the child, whichever occurs later:(1) the age and gender of the deceased child;(2) the date of the child's death;(3) whether the deceased child was in the conservatorship of the department at the time of the child's death; and(4) whether, at the time of death, the child was living with:(A) the child's parent, managing conservator, a legal guardian, or other person entitled to possession of the child; or(B) an agency foster home, agency foster group home, independent foster home, independent foster group home, or general residential operation.(c) Following the completion of the abuse or neglect investigation of a child fatality in which the department confirms one or more allegations of abuse or neglect relating to the child fatality, the department may release information in addition to that covered by subsection (b) of this section, as provided under §702.309 of this title (relating to What types of information may the department release following completion of an abuse or neglect investigation conducted by Child Protective Services that involves a child fatality?) and §702.311 of this title (relating to What types of information may the department release following completion of an abuse or neglect investigation conducted by Child Care Licensing that involves a child fatality?).</content><note type="source"><p>Source Note: The provisions of this §702.307 adopted to be effective March 25, 2010, 35 TexReg 2315.</p></note></section><section identifier="/us/state/tx/tac/t40/p19/c702/scD/s702.309"><num value="702.309">§702.309</num><heading>What types of information may the department release following completion of an abuse or neglect investigation conducted by Child Protective Services that involves a child fatality?</heading><content>(a) Upon completion of a child fatality investigation by Child Protective Services in which one or more allegations of abuse or neglect are confirmed, the department may release a summary report of all investigations in which the deceased child was an alleged victim or a child living in the same home as another alleged victim.(b) The summary released under subsection (a) of this section shall include:(1) the date on which each investigation began, a brief description of the nature of the alleged abuse or neglect investigated, and the disposition of those investigations;(2) a brief description of the services, if any, which were provided by the department to the child or the child's family as a result of the investigation, including whether or not the deceased child or another child in the home was removed from the home as a result of the investigation; and(3) if the department identified any risk factors relating to the deceased child at the completion of any investigation, a listing of the risk factors identified by the department and the actions, if any, that were taken to mitigate those risks.</content><note type="source"><p>Source Note: The provisions of this §702.309 adopted to be effective March 25, 2010, 35 TexReg 2315.</p></note></section><section identifier="/us/state/tx/tac/t40/p19/c702/scD/s702.311"><num value="702.311">§702.311</num><heading>What types of information may the department release following completion of an abuse or neglect investigation conducted by Child Care Licensing that involves a child fatality?</heading><content>(a) Upon completion of a child fatality investigation by Child Care Licensing in which one or more allegations of abuse or neglect are confirmed against an individual who works under the auspices of an agency foster home or agency foster group home, the department may release a summary report containing the following information:(1) the name of the child-placing agency that most recently verified the home and the date of verification;(2) if previously verified by the same or another child-placing agency:(A) the name of each prior child-placing agency that verified the home;(B) the dates on which any prior verification began and ended; and(C) the reason for any prior closure of the home if the information is documented in the department's records;(3) for each allegation of abuse or neglect investigated against an individual in the same home in the five-year period ending with the child fatality:(A) the date on which the investigation was initiated;(B) the type of alleged abuse or neglect;(C) the disposition of the investigation;(D) whether an appeal of the disposition is pending; and(E) whether the deceased child was an alleged victim of any of the prior allegations of abuse or neglect;(4) any violations of minimum standards at the same home in the five-year period ending with the child fatality;(5) a description of the types of training required to be completed by the foster parent, employees, or other persons providing care or supervision of a child in the same home and a summary explanation of any training standards violated in the five-year period ending with the child fatality to the extent documented in the department's records; and(6) a summary of any remedial actions taken by Child Care Licensing against the home or the child-placing agency that verified the home in the five-year period ending with the child fatality.(b) Upon completion of a child fatality investigation by Child Care Licensing in which one or more allegations of abuse or neglect are confirmed against an individual who works under the auspices of an independent foster home, independent foster group home, or general residential operation, the department may release a summary report containing the following information:(1) the date on which the home or operation was licensed;(2) for each allegation of abuse or neglect investigated against an individual in the same home or operation in the five-year period ending with the child fatality:(A) the date on which the investigation was initiated;(B) the type of alleged abuse or neglect;(C) the disposition of the investigation;(D) whether an appeal of the disposition is pending; and(E) whether the deceased child was an alleged victim of any of the prior allegations of abuse or neglect;(3) any violations of minimum standards at the home or operation in the five-year period ending with the child fatality;(4) a description of the types of training required to be completed by a foster parent, employee, director or other person providing care or supervision of a child in the home or operation and a summary explanation of any training standards violated in the five-year period ending with the child fatality to the extent documented in the department's records; and(5) a summary of any remedial actions taken by Child Care Licensing against the home or operation in the five-year period ending with the child fatality.(c) Notwithstanding any other provision in this subchapter, if a child was living with a licensed or verified child-care provider at the time of death, but the injuries that led to the child's death occurred prior to placement with that provider and Child Protective Services confirmed a finding of abuse or neglect in connection with the child fatality, the department may provide information under §702.309 of this title (relating to What types of information may the department release following completion of an abuse or neglect investigation conducted by Child Protective Services that involves a child fatality?).</content><note type="source"><p>Source Note: The provisions of this §702.311 adopted to be effective March 25, 2010, 35 TexReg 2315.</p></note></section><section identifier="/us/state/tx/tac/t40/p19/c702/scD/s702.313"><num value="702.313">§702.313</num><heading>What kinds of information must be redacted from any records released to the general public under this subchapter?</heading><content>(a) Prior to releasing any information to the general public in connection with a child fatality, the department shall redact from those records:(1) the names of any individual other than the deceased child or the alleged perpetrator; and(2) any other information, the release of which would:(A) identify a reporter of abuse or neglect;(B) interfere with an ongoing criminal investigation or prosecution;(C) endanger the life or safety of any individual; or(D) violate other state or federal law.(b) Notwithstanding any other provision in this subchapter, the department shall not release the name of an alleged perpetrator unless that individual has exhausted all appeal rights and the finding of abuse or neglect has been sustained. The department may describe the role of the alleged perpetrator with respect to the deceased child, including whether the alleged perpetrator was a parent, relative, foster parent or other caregiver of the child.</content><note type="source"><p>Source Note: The provisions of this §702.313 adopted to be effective March 25, 2010, 35 TexReg 2315.</p></note></section><section identifier="/us/state/tx/tac/t40/p19/c702/scD/s702.315"><num value="702.315">§702.315</num><heading>How soon following the completion of an investigation involving a child fatality in which abuse or neglect has been confirmed will the department provide the information required by this subchapter?</heading><content>(a) When possible, the department will provide the records that are required to be provided under this subchapter within 10 days of the date the investigation is completed or the records are requested, whichever occurs later. If the department is unable to meet the 10-day deadline, the department will provide the records as soon as possible thereafter and will advise the requestor of the date on which the department anticipates having all the records available to release.(b) Nothing in this subchapter will prevent the department from providing information prior to the completion of an investigation to the extent the information is available and its release is authorized under state or federal law or these rules.</content><note type="source"><p>Source Note: The provisions of this §702.315 adopted to be effective March 25, 2010, 35 TexReg 2315.</p></note></section><section identifier="/us/state/tx/tac/t40/p19/c702/scD/s702.317"><num value="702.317">§702.317</num><heading>Does the department have other rules providing for the release of information relating to a child abuse or neglect investigation or child-care licensing regulatory activities that are not covered by this subchapter?</heading><content>Yes. For more information on what the department may release to specific persons, categories of persons, or to the general public:(1) for investigations conducted by the Child Protective Services division, refer to Subchapter B, Confidentiality and Release of Records, in Chapter 700 of this title (relating to Child Protective Services); and(2) for Child Care Licensing regulatory activities, including investigations of abuse or neglect conducted by the Child Care Licensing division, refer to Division 3, Confidentiality, in Subchapter K, Inspections and Investigations, of Chapter 745 of this title (relating to Licensing).</content><note type="source"><p>Source Note: The provisions of this §702.317 adopted to be effective March 25, 2010, 35 TexReg 2315.</p></note></section></subchapter><subchapter identifier="/us/state/tx/tac/t40/p19/c702/scE"><num value="E">SUBCHAPTER E</num><heading>MEMORANDUM OF UNDERSTANDING WITH OTHER STATE AGENCIES</heading><section identifier="/us/state/tx/tac/t40/p19/c702/scE/s702.401"><num value="702.401">§702.401</num><heading>Assisted Living Facilities</heading><content>(a) Basis. The Texas Department of Human Services, hereinafter referred to as DHS, the Texas Office of the Attorney General, hereinafter referred to as OAG, and the Texas Department of Protective and Regulatory Services, hereinafter referred to as TDPRS are required under the provisions of Health and Safety Code §§247.046 and 247.062 to enter into a memorandum of understanding (MOU) regarding their respective responsibilities, procedures, enforcement needs, and plans for correcting violations or deficiencies in assisted living facilities. This MOU implements those requirements.(b) DHS responsibilities.(1) DHS accepts applications and issues licenses in accordance with the requirements of Chapter 247, and DHS rules and standards adopted to implement the law.(2) If DHS finds a licensed assisted living facility operating in violation of minimum standards or licensing requirements and the violation creates an immediate threat to the health and safety of a resident in the facility, DHS may suspend the license or order the immediate closing of all or part of the facility. DHS shall retain primary responsibility for assisting families in finding new placements for individuals displaced when facilities licensed by or subject to licensure by DHS are closed. DHS will inquire whether a resident is receiving services from a mental health authority (MHA) and will contact the MHA accordingly to ensure continuation of service and placement assistance.(3) DHS shall investigate each allegation of abuse, exploitation, or neglect of a resident of a assisted living facility in accordance with Chapter 247 of the Health and Safety Code, Chapter 48 of the Human Resources Code, and DHS rules. If the investigation reveals abuse, exploitation, or neglect, DHS shall implement enforcement measures, including closing the facility, revoking the facility's license, relocating residents, and making referrals to law enforcement agencies (including the OAG) as appropriate.(4) DHS may refer a facility to the OAG or a local prosecuting attorney for the purpose of petitioning a district court for a temporary restraining order to restrain a continuing violation of standards or licensing requirements for assisted living facilities. If DHS finds that the violation creates an immediate threat to the health and safety of the assisted living facility residents, the referral is made to the OAG along with all affidavits necessary to prosecute the case. If the violation does not create an immediate threat to the health and safety of assisted living facility residents, the referral is to a local prosecuting attorney. DHS, through the OAG or a local prosecuting attorney, may petition a district court for a restraining order to inspect a facility that is operating without a license when admission to the facility cannot be obtained. In these inspection situations, DHS shall first contact the local prosecuting attorney for assistance.(5) DHS shall cooperate with the OAG and/or the local prosecuting attorney in the preparation and prosecution of injunctive actions against assisted living facilities against which DHS has requested legal proceedings.(6) DHS may refer persons who do not possess a license, or assisted living facilities that violate the Personal Care Facility Licensing Act (Chapter 247 of the Health and Safety Code) or a rule adopted under that act, whose violation threatens the health and safety of a resident of a assisted living facility, to the OAG for the purpose of petitioning a district court for civil penalties under §247.045 of the Health and Safety Code. DHS will refer civil penalty cases to the local district attorney, county attorney, or city attorney if the OAG does not take action within 30 days of the referral. DHS shall cooperate with the OAG and the local prosecuting attorneys in the preparation for and prosecution of civil penalty actions.(c) TDPRS responsibilities. TDPRS will assist DHS, upon request, in finding suitable placement for incapacitated individuals who have no family willing to assist and who must be relocated due to the closing of an assisted living facility licensed or subject to licensure by DHS.(d) OAG responsibilities.(1) The OAG will work in close cooperation with DHS throughout any legal proceeding requested by DHS under Chapter 247 of the Health and Safety Code.(2) The OAG will keep DHS informed of the status of all cases referred to the OAG under Chapter 247 of the Health and Safety Code upon the request of DHS.(3) The OAG will represent DHS to the full extent of the law in Chapter 247 actions.(4) When the OAG chooses not to prosecute a Chapter 247 case referred by DHS, it will immediately inform DHS so that alternative action can be taken.(e) Complaint investigations and opportunities for corrective action.(1) When a complaint is received about a licensed or a unlicensed assisted living facility, DHS will do a complaint investigation of the facility. If the owner of an unlicensed facility denies DHS investigators access to a facility, DHS may, through the OAG or a local prosecutor's office, petition a district court for a temporary restraining order to inspect the facility.(2) If the investigation indicates that there is a violation of minimum standards and the violation creates an immediate threat to the health and safety of a facility resident, DHS will suspend the license and order closing of the facility for a ten-day period.(3) If the investigation indicates that there is a violation of minimum standards or licensing requirements and the violation is a threat to resident health and safety, DHS immediately makes a referral to the Attorney General's office to enjoin the facility's operation, enjoin the facility from violating standards or licensing requirements, and/or for assessment of civil monetary penalties.(4) If the OAG does not take action on a civil penalty referral within 30 days of the referral, DHS will refer the case to the local prosecuting attorney.(5) If the investigation indicates a violation of minimum standards or licensing requirements but the violation is not a threat to resident health and safety, DHS may notify the owner that he is in violation and make a referral to the local prosecuting attorney or the OAG only after the facility owner is given an opportunity to take appropriate action to come into compliance within a reasonable time.(6) If the local prosecuting attorney refuses to prosecute a case, DHS may seek the assistance of the OAG.(7) DHS may deny, suspend, or revoke the license of a licensed facility for violating the Personal Care Facility Licensing Act or rules adopted under that act.(8) If further investigation or monitoring of a facility that has previously indicated that it will come into compliance, indicates that violations have continued, DHS may immediately seek injunctive or other appropriate relief in coordination and cooperation with the OAG or the local prosecuting attorney.</content><note type="source"><p>Source Note: The provisions of this §702.401 adopted to be effective March 1, 2001, 26 TexReg 1352.</p></note></section><section identifier="/us/state/tx/tac/t40/p19/c702/scE/s702.405"><num value="702.405">§702.405</num><heading>Coordinated Services for Children and Youths</heading><content>(a) Overview. (1) Pursuant to the Texas Human Resources Code, §41.0011, this memorandum of understanding has been developed by the Texas Department of Protective and Regulatory Services (TDPRS), Texas Commission for the Blind (TCB), Texas Department of Health (TDH), Texas Department of Human Services (TDHS), Texas Department of Mental Health and Mental Retardation (TXMHMR), Texas Education Agency (TEA), Texas Interagency Council on Early Childhood Intervention (ECI), Texas Juvenile Probation Commission (TJPC), Texas Rehabilitation Commission (TRC), and Texas Youth Commission (TYC), hereinafter referred to as "the agencies," in consultation with advocacy and consumer groups. (2) The memorandum, as adopted by rule by each agency, provides for the implementation of a system of community resource coordination groups, hereinafter referred to as coordination groups, to coordinate services for children and youths who need services from more than one agency, hereinafter referred to as "children and youths with multi-agency needs" or, more briefly, as "children and youths." (3) All coordination groups established pursuant to this memorandum must conform to the Model of Community Resource Coordination Groups (CRCG model) approved by the Commission on Children, Youth, and Family Services on April 27, 1990. This model is adopted by reference and may be obtained from: (A) TDPRS, 701 West 51st St., Austin, Texas 78751; (B) TCB, 4800 North Lamar Boulevard, Austin, Texas 78756; (C) TDH, 1100 West 49th Street, Austin, Texas 78756 (D) TDHS, 701 West 51st St., Austin, Texas 78751; (E) TXMHMR, 909 West 45th St., Austin, Texas 78756; (F) TEA, 1701 North Congress, Austin, Texas 78701; (G) ECI, 1100 West 49th St., Austin, Texas 78756; (H) TJPC, 2015 South I.H. 35, Austin, Texas 78741; (I) TRC, 4900 North Lamar Blvd., Austin, Texas 78751; or (J) TYC, 4900 North Lamar Blvd., Austin, Texas 78751. (4) As specified in subsection (c)(5) of this section, this memorandum also requires the agencies, the coordination groups, and the Texas Health and Human Services Commission, hereinafter referred to as "the commission," to work together to ensure that the commission's strategic plan for delivering health and human services in Texas includes appropriate plans for delivering coordinated services to children and youths. (b) Role of the family. Although the primary purpose of this memorandum is to establish a system for interagency coordination of services to children and youths, the agencies: (1) recognize the importance of the family in the life of each child and youth whom the agencies serve; and (2) are committed to providing services pursuant to this memorandum in the most normal and least restrictive environments possible. (c) Each agency's financial and statutory responsibilities. (1) Each agency's financial and statutory responsibilities for children and youth are described in Health and Human Services in Texas: A Reference Guide, published by the commission. (2) Each agency agrees to provide coordination groups with relevant additional information about its financial and statutory responsibilities when such information is necessary for the groups to meet their responsibilities. The additional information may include, but is not limited to, descriptions of subcategories of funding for different types of service such as investigation, risk prevention, family preservation, emergency shelter, diagnosis and evaluation, residential care, follow-up services after a stay in residential care, and information and referral assistance. (3) Whenever necessary in particular cases, coordination groups are responsible for further clarifying the agencies' financial and service responsibilities. (4) The agencies agree to seek the resources needed to comply with this memorandum. (5) To the extent that operating under this memorandum helps the agencies to identify structural problems, gaps, and inefficiencies in the state's systems for delivering health and human services to children and youths with multi-agency needs, the agencies agree to give the commission information about the problems, gaps, and inefficiencies so identified. The agencies also agree to ask the coordination groups to provide such information. The commission, in turn, will appropriately incorporate information provided by the agencies and the coordination groups into the commission's strategic plan. (d) Children and youths with multi-agency needs. For the purpose of this memorandum, a "child or youth with multi-agency needs" is a person who: (1) is less than 22 years old; (2) meets an agency's statutory age-limitations for eligibility; (3) is now receiving services or has received them in the past; and (4) needs services that require interagency coordination. (e) Interagency cost-sharing. (1) The agencies agree to share the cost of providing needed services when: (A) a coordination group confirms that a referring agency cannot provide all of the services needed; and (B) the needed services are within the financial capabilities and statutory responsibilities of one or more of the other agencies. (2) Cost-sharing includes, but is not limited to: (A) provision of services by more than one agency; and (B) provision of services by: (i) one or more agencies; and (ii) one or more third parties under purchase-of-service contracts with one or more agencies. (f) Eliminating duplication of services. Within the limits of existing legal authority, each coordination group must make reasonable efforts to eliminate duplication of services relating to the assessment and diagnosis, treatment, residential placement and care, and case management of children and youths with multi-agency needs. Each agency agrees to notify the governor's office about federal laws and regulations that cause duplication of services. Each agency also agrees to notify its board about rules that cause duplication of services, and to pursue amendments to state laws, rules, and policies when necessary to eliminate such duplication. (g) Interagency dispute resolution. (1) Each agency must designate a negotiator who is not a member of any coordination group to resolve disputes. The negotiator must have: (A) decision-making authority over the agency's representative on the coordination group; and (B) the ability to interpret policy and commit funds. (2) When two or more members of a coordination group disagree about their respective agencies' service responsibilities, the coordination group must send the designated negotiators for those agencies written notification that a dispute exists. Within 45 days after receiving the written notification, the negotiators must confer together to resolve the dispute. (3) When an interagency dispute cannot be resolved in the manner described in paragraph (2) of this subsection, the aggrieved party may refer the dispute to the Health and Human Services commissioner. (h) Composition of coordination groups. Each coordination group must include one appointed representative from each participating state agency, and as many as five local representatives from the private sector. The private-sector representatives must be selected by their peers from private-sector agencies serving youths in the geographical area the coordination group serves. The private-sector representatives have the same status as state-agency representatives. The organizations they represent are considered member agencies of the coordination group, and they are encouraged to present cases from the private sector. (i) Case identification and referral. Each coordination group must implement the procedures for identifying and referring cases specified in the CRCG model. Any member of a coordination group may refer the case of any eligible child or youth to the coordination group if the referring member's agency cannot otherwise provide or arrange all the services the child or youth needs. (j) Convening coordination group meetings. Any member of a coordination group may convene a coordination group meeting pursuant to subsection (i) of this section. Each coordination group must establish procedures for scheduling meetings. (k) Permissible nonattendance. A member agency's representative may be excused from attending a coordination group meeting if the coordination group determines that the member agency's service responsibilities do not apply to the child or youth whose services will be discussed at the meeting. (l) Sharing confidential information. The members of each coordination group must treat all information about children and youths discussed at the group's meetings as confidential. Each member agency must ensure that the coordination group complies with the agency's legal requirements concerning disclosure of confidential records and information. When necessary, compliance may include case-by-case documentation of all parties reviewing a child's or youth's records. (m) Implementing this memorandum. The state CRCG advisory committee, which includes private sector representatives and one representative from each participating state agency, must develop and recommend to the commissioners and executive directors of the agencies a comprehensive plan to implement this memorandum. (n) Adoption by rule and revision by unanimous consent. Pursuant to §41.0011 of the Human Resources Code, each agency must adopt this memorandum by rule. The memorandum may be expanded, modified, or amended at any time by the unanimous written consent of the agencies.</content><note type="source"><p>Source Note: The provisions of this §702.405 adopted to be effective March 1, 2001, 26 TexReg 1352.</p></note></section><section identifier="/us/state/tx/tac/t40/p19/c702/scE/s702.409"><num value="702.409">§702.409</num><heading>Memorandum of Understanding Regarding Service Delivery to Dysfunctional Families</heading><content>(a) The Texas Department of Protective and Regulatory Services, the Texas Youth Commission, and the Texas Juvenile Probation Commission, hereinafter referred to as "the agencies," agree to this memorandum of understanding (MOU) in compliance with Texas Human Resources Code §53.001.(b) By July 15 of every odd-numbered year, or within 30 days after the Governor of Texas signs a general appropriations act, whichever is later, each of the agencies will determine which portion, if any, of its funding to designate for serving its clients through the joint contract(s) specified in subsection (c) of this section. None of the agencies is obligated to enter into the joint contracts specified in subsection (c) of this section unless all of the agencies elect to do so.(c) Beginning on September 1, 1990, and by September 1 every year thereafter in which the agencies decide to enter into the joint contracts specified in this subsection, the agencies will award one or more joint contracts for nonresidential community services to help dysfunctional families in each agency's client population. At a minimum, each contract must include the following services:(1) training in parenting skills;(2) training in coping skills for youth, including communication, problem-solving, decision-making, and conflict-management skills;(3) support groups for children of substance-abusing and dysfunctional families, and support groups for the children's parents; and(4) individual counseling for a limited number of clients referred from the support groups specified in paragraph (3) of this subsection during family crises.(d) All joint contracts awarded under the provisions of this section must be publicized and awarded in conformity with all applicable requirements of Chapter 69 of this title (relating to Contracted Services).(e) The agencies will ensure that contracted services are available to clients by September 1 of every fiscal year in which the agencies enter into the joint contracts specified in subsection (c) of this section.(f) The agencies initially adopted this section on September 11, 1990. The agencies will amend it whenever they agree to revisions.(g) The agencies will meet at least once each year to review and consider revising this section before the beginning of the next fiscal year.</content><note type="source"><p>Source Note: The provisions of this §702.409 adopted to be effective March 1, 2001, 26 TexReg 1352.</p></note></section><section identifier="/us/state/tx/tac/t40/p19/c702/scE/s702.417"><num value="702.417">§702.417</num><heading>Memorandum of Understanding (MOU) Concerning Interagency Coordination of Special Education Services to Students with Disabilities in Residential Facilities</heading><content>The Texas Department of Protective and Regulatory Services adopts by reference 19 TAC §89.1115, which contains the Memorandum of Understanding Concerning Interagency Coordination of Special Education Services to Students with Disabilities in Residential Facilities, as authorized by the Texas Education Code, 29.012. The MOU addresses respective roles and responsibilities of participating agencies in the sharing of information about, and coordination of services to, students with disabilities receiving special education services that live in residential facilities.</content><note type="source"><p>Source Note: The provisions of this §702.417 adopted to be effective February 13, 2003, 28 TexReg 1229.</p></note></section><section identifier="/us/state/tx/tac/t40/p19/c702/scE/s702.421"><num value="702.421">§702.421</num><heading>Relocation Pilot Program</heading><content>The Texas Department of Protective and Regulatory Services (PRS), the Texas Department of Human Services (DHS) and the Texas Department of Mental Health and Mental Retardation (MHMR) are required to enter into a Memorandum of Understanding (MOU) regarding the implementation of a pilot program for community-based alternatives for persons with disabilities, as provided under Human Resources Code (HRC), §22.037 and §22.038. PRS adopts by reference the DHS rule at 40 TAC §72.104 (relating to Relocation Pilot Program), which contains the terms of the MOU for the pilot program. The MOU provides for interagency coordination and addresses the responsibilities of each agency in implementing the components of the pilot program.</content><note type="source"><p>Source Note: The provisions of this §702.421 adopted to be effective June 12, 2003, 28 TexReg 4436.</p></note></section><section identifier="/us/state/tx/tac/t40/p19/c702/scE/s702.425"><num value="702.425">§702.425</num><heading>Memorandum of Understanding concerning Interagency Cooperation for Continuity of Youth Care between the Department of Family and Protective Services (DFPS) and the Texas Youth Commission (TYC)</heading><content>(a) Parties. The state agencies DFPS and TYC are the parties in this memorandum of understanding (MOU).(b) Purpose. DFPS and TYC are required to jointly adopt rules to ensure that youth in the conservatorship of DFPS and who are committed to TYC or who are supervised or on parole with TYC receive the appropriate services.(c) Responsibilities of DFPS.(1) Information to be Provided at the Time of Commitment. Unless previously provided and to the extent available, DFPS will provide the following records to TYC upon commitment of a youth who is in DFPS conservatorship at the time of commitment:(A) medical history information in DFPS records that are relevant to the youth's medical care, including, to the extent available, the medical records of the youth's last physical, last dental check-up, last vision and hearing screening, medication currently prescribed, current immunization records, and any other records needed to ensure the youth receives appropriate medical treatment;(B) records documenting any current mental health treatment and counseling needs;(C) records documenting any current treatment needs for drug and alcohol abuse or sex offender treatment;(D) name and contact information of the medical consenter and alternative medical consenter for the youth; to be updated within 24 hours of any change in medical consenter or alternative medical consenter;(E) the youth's current CPS service plan, placement summary from the youth's last caretaker, if any, and the name and contact information of the youth's attorney ad litem, guardian ad litem, or CASA, if any; and(F) the youth's current academic achievement records, education portfolio, and current education plan.(2) Coordination of Services for Youth under TYC Commitment or Supervised Release/Parole. DFPS will ensure that the youth's CPS caseworker or other appropriate CPS personnel will do the following in order to facilitate coordinated planning and appropriate service of any youth committed to TYC or under TYC supervised release or parole:(A) provide TYC with the name and contact information for the youth's CPS caseworker, including timely notice of any changes in such information;(B) provide TYC with at least 20 days advance notice of the date, time and location of any scheduled permanency hearing or placement review hearing conducted under Chapter 263, Family Code;(C) notify TYC regarding any special issues that may arise relating to the youth's physical or mental health or relating to the youth's need for counseling or treatment, including drug or alcohol abuse treatment or sex offender treatment;(D) contact the youth's TYC caseworker at least once each month and more often if necessary to confer regarding the youth's general welfare and any special issues relating to the youth;(E) coordinate with TYC in the development of the youth's DFPS plan of service and any plans of service or case plans developed by TYC for the youth;(F) visit the youth in person at least once per month;(G) notify TYC within 5 calendar days of any change in placement made by DFPS or ordered by the family law court for youth no longer committed to TYC, but who is still on parole or supervision with TYC;(H) attend any non-routine medical appointments for the youth and participate in writing or by telephone regarding routine medical appointments when DFPS is the youth's medical consenter;(I) attend any TYC hearings involving the youth to the extent practicable;(J) notify TYC of any special educational issues or meetings, including a scheduled Admission, Review or Dismissal meeting or §504 of the Rehabilitation Act meeting for a youth who is released under TYC supervision or parole;(K) participate and coordinate with TYC in any transition planning at the time of the youth's discharge from detention, TYC commitment, or supervised release or parole;(L) coordinate with TYC in the development of the youth's transitional living plan, including Preparation for Adult Living (PAL) program services while in TYC, as well as inform transition-age youth of other benefits they may be entitled to as they exit CPS care, including but not limited to the transitional living allowance, aftercare room and board assistance, Education and Training Voucher Program, and tuition and fee waiver; and(M) notify TYC of the youth's adoption or any transfer of managing conservatorship from the department to another individual.(3) Security Provision. All DFPS employees who visit any TYC facility will comply with that facility's security regulations.(d) Responsibilities of TYC.(1) Obligation to Provide General Information to DFPS Regarding Youth Committed to TYC. For youth committed to TYC, TYC will ensure that the youth's TYC caseworker or other TYC personnel, as appropriate, will provide the youth's CPS caseworker with the following information, to be updated on a timely basis as information changes:(A) information regarding the youth's current medical care needs;(B) clinical information relating to any trauma the youth has experienced in a TYC placement;(C) information regarding the youth's mental health and counseling needs or treatment, including sex offender treatment or drug or alcohol treatment;(D) a copy of the youth's individual case plan;(E) name and contact information for the youth's educational surrogate parent;(F) a copy of the youth's academic achievement records;(G) a copy of the youth's re-entry and re-integration plan; and(H) upon release of the youth, a copy of all of the youth's medical records for inclusion in the youth's medical passport maintained by DFPS.(2) Notice of Medical Appointments for Youth Committed to TYC. TYC or TYC's medical contractor will provide advance notice of all routine and non-routine medical appointments to the youth's medical consenter and will contact the medical consenter immediately to obtain consent for any non-routine medical care requiring consent for treatment.(3) Notice of Significant Events for Youth Committed to TYC or under TYC supervised release or parole. TYC will provide timely notice to the youth's CPS caseworker, and any current attorney ad litem, guardian ad litem or CASA of the following events relating to any youth committed to TYC or under TYC supervised release or parole:(A) any meetings to develop or revise the youth's TYC individual case plan;(B) any grievance or disciplinary hearings;(C) any education meetings, including a scheduled Admission, Review, or Dismissal meeting or §504 of the Rehabilitation Act meeting for a youth receiving special education services;(D) a report of alleged abuse or neglect of the youth; and(E) a significant medical condition of the youth, as defined by §266.005, Family Code.(4) Coordination of Services for Youth Committed to TYC or under TYC supervised release or parole. TYC will ensure that the youth's TYC caseworker or other appropriate TYC personnel will do the following in order to facilitate coordinated planning and appropriate services of any youth committed to TYC or under TYC supervised release or parole:(A) provide DFPS with the name and contact information for the youth's TYC caseworker, including timely notice of any changes to the youth's TYC caseworker or contact information;(B) contact the youth's CPS caseworker at least once each month and more often if necessary to confer regarding the youth's progress and any special issues relating to the youth;(C) coordinate with the youth's CPS caseworker in the development of any DFPS plan of service for the youth and case plans developed by TYC for the youth;(D) no later than 15 days prior to any scheduled permanency hearing or placement review hearing conducted under Chapter 263, Family Code, provide the youth's CPS caseworker with a written case report regarding the youth's progress in any rehabilitation programs administered by or on behalf of TYC;(E) make arrangements for the youth's attendance in person, by telephone, or by videoconference in any permanency hearing or placement review hearing conducted under Chapter 263, Family Code, unless the youth's attendance has been excused by the court;(F) attend any permanency hearing or placement review hearing conducted under Chapter 263, Family Code regarding the youth, to the extent practicable;(G) notify the youth's CPS caseworker within 24 hours of any change in placement for youth committed to TYC;(H) permit the youth's CPS caseworker to communicate with the youth, including in person visits at least once each month and more often if necessary;(I) provide advance notice to the youth's CPS caseworker of any TYC court hearings involving the youth to the extent practicable; and(J) coordinate with the youth's CPS caseworker in any community re-integration planning at the time of the youth's discharge from commitment, detention, or supervised release or parole.(e) Relief of obligations. If either party is prohibited by state or federal law from providing any information under this rule or from taking any other action of this rule, the parties will be relieved of such obligation. If any provision under this rule is declared void as a matter of law, the parties will continue to abide by the remaining provisions.(f) Confidentiality. To the extent required by state and federal law, each party agrees to keep the information obtained from the other party confidential. Both parties agree to comply with relevant confidentiality and security policies of the other agency. Sharing of any confidential information between the parties pursuant to this rule does not serve to waive or affect the confidential nature of the information for purposes of state or federal law.(g) Conflicts. To the extent this rule conflicts with any agreements between TYC and DFPS, this rule shall take precedence unless and until it is amended.</content><note type="source"><p>Source Note: The provisions of this §702.425 adopted to be effective March 1, 2010, 35 TexReg 1291.</p></note></section></subchapter><subchapter identifier="/us/state/tx/tac/t40/p19/c702/scF"><num value="F">SUBCHAPTER F</num><heading>ADVISORY COMMITTEES</heading><section identifier="/us/state/tx/tac/t40/p19/c702/scF/s702.501"><num value="702.501">§702.501</num><heading>Authority and General Provisions</heading><content>(a) Authority to establish advisory committees. The Executive Commissioner has the authority to appoint advisory committees and to adopt rules regarding the purpose, structure, and use of advisory committees under Texas Human Resources Code §40.030.(b) Applicability of Texas Government Code, Chapter 2110. An advisory committee established under this subchapter is subject to Texas Government Code Chapter 2110.(c) Applicability of Texas Government Code Chapter 551. Unless otherwise expressly provided, an advisory committee established under this subchapter is subject to the Open Meetings Act, Texas Government Code Chapter 551, as if it were a governmental body.</content><note type="source"><p>Source Note: The provisions of this §702.501 adopted to be effective July 1, 2016, 41 TexReg 4053.</p></note></section><section identifier="/us/state/tx/tac/t40/p19/c702/scF/s702.503"><num value="702.503">§702.503</num><heading>Presiding Officer Requirements</heading><content>Unless otherwise expressly provided, an advisory committee selects a presiding officer from among its members.</content><note type="source"><p>Source Note: The provisions of this §702.503 adopted to be effective July 1, 2016, 41 TexReg 4053.</p></note></section><section identifier="/us/state/tx/tac/t40/p19/c702/scF/s702.505"><num value="702.505">§702.505</num><heading>Conflicts of Interest</heading><content>A committee member who has, or potentially has, any direct financial interest in the outcome of a proposed recommendation that is to be voted on by the committee must:(1) disclose the interest prior to the vote on the proposed recommendation;(2) recuse himself from any leadership role (presiding officer, chair, or co-chair) on the committee during the vote; and(3) refrain from voting on the recommendation.</content><note type="source"><p>Source Note: The provisions of this §702.505 adopted to be effective July 1, 2016, 41 TexReg 4053.</p></note></section><section identifier="/us/state/tx/tac/t40/p19/c702/scF/s702.507"><num value="702.507">§702.507</num><heading>Committee on Advancing Residential Practices</heading><content>(a) Establishment. The Committee on Advancing Residential Practices (CARP) is established.(b) Purpose. The purpose of CARP is to advise DFPS regarding the impact of Department policy on contracted foster care providers.(c) Tasks. CARP performs the following tasks:(1) makes recommendations to the Department through regularly scheduled meetings and Department staff assigned to the committee; and(2) performs other tasks consistent with CARP's purpose that are requested by the Commissioner.(d) Reporting requirements and Department action.(1) CARP reports the committee's recommendations to the Department at least annually.(2) CARP's recommendations may inform Department policy or practice.(3) CARP's recommendations are advisory and do not obligate the Department to take action.(e) Membership.(1) CARP consists of no more than 24 members.(2) Members are appointed by the Commissioner.(3) Membership requirements.(A) Members must have demonstrated a commitment to the children, youth, and families of Texas and have knowledge of and experience with the Texas foster care system.(B) Members must be current employees of contracted foster care providers or members of trade associations.(C) Members must attend and participate in meetings.(D) In choosing CARP members, the Commissioner considers how the diverse service provider types, service provider sizes, and geographic communities in Texas are represented on the committee.(4) Except as may be necessary to stagger terms, a member serves for a two-year term and may be appointed for additional terms at the Commissioner's discretion.(f) Presiding officer. The presiding officer serves a two-year term.(g) Meetings. CARP will meet at least quarterly.(h) Decision-making. The committee will make decisions by consensus.(i) Bylaws. CARP will adopt bylaws to govern committee practices, including selection of the presiding officer, attendance requirements, workgroups and subcommittees, and conflicts of interest.(j) Abolition. CARP is abolished, and this section expires, August 31, 2026.</content><note type="source"><p>Source Note: The provisions of this §702.507 adopted to be effective July 1, 2016, 41 TexReg 4053.</p></note></section><section identifier="/us/state/tx/tac/t40/p19/c702/scF/s702.509"><num value="702.509">§702.509</num><heading>Public Private Partnership</heading><content>(a) Establishment. The Public Private Partnership (PPP) is established.(b) Purpose. The purpose of the PPP is to explore, study, and recommend innovative and creative practices that affect the Texas Foster Care system. The PPP provides recommendations to the Department regarding Foster Care Redesign and its implementation.(c) Tasks. The PPP performs the following tasks:(1) makes recommendations to the Department through regularly scheduled meetings and Department staff assigned to the committee; and(2) performs other tasks consistent with the committee's purpose that are requested by the Commissioner.(d) Reporting requirements and Department action.(1) The PPP reports recommendations to the Department at least annually.(2) PPP recommendations may inform Department policy or practice.(3) PPP recommendations are advisory and do not obligate the Department to take action.(e) Membership.(1) The PPP consists of no more than 24 members.(2) Members are appointed by the Commissioner.(3) Membership requirements.(A) Members must have demonstrated a commitment to the children, youth, and families of Texas and have knowledge and experience with the Texas foster care system.(B) Members must be willing to devote the time necessary to attend and participate in meetings.(C) In choosing PPP members, the Commissioner considers how the diverse ethnic, gender, and geographic communities in Texas are represented on the committee, including diverse sizes and types of providers.(4) Membership includes:(A) providers and provider associations in good standing with the Department;(B) youth who were formerly in foster care;(C) members of the judiciary;(D) child welfare advocacy groups;(E) parents; and(F) other child welfare stakeholders, as determined by the Commissioner.(5) Except as may be necessary to stagger terms, a committee member serves for a two-year term and may be appointed for additional terms at the discretion of the Commissioner.(6) Members who represent a particular group are automatically removed from the committee when they are no longer members of the group in subsection (e)(1)(C) of this section whom they were appointed to represent, and may be replaced by another member of that same group by Commissioner appointment.(7) Members who fail to attend three consecutive meetings without an excused absence by the presiding officer as reflected in the minutes are removed from the committee without further action, and the Commissioner appoints a replacement.(f) Presiding officers. The presiding officer may not currently be an employee of or be actively seeking a contract as a Single Source Continuum Contractor (SSCC).(g) Meetings. The PPP meets at least quarterly or as called by the presiding officer.(h) Decision-making. The committee makes recommendations by consensus, with dissenting opinions noted.(i) Bylaws. The committee will adopt bylaws to further govern committee practices, such as attendance requirements, meeting notices, workgroups and subcommittees, and conflicts of interest.(j) Abolition. The PPP is abolished, and this section expires, August 31, 2026.</content><note type="source"><p>Source Note: The provisions of this §702.509 adopted to be effective July 1, 2016, 41 TexReg 4053.</p></note></section><section identifier="/us/state/tx/tac/t40/p19/c702/scF/s702.511"><num value="702.511">§702.511</num><heading>Advisory Committee on Promoting Adoption of Minority Children</heading><content>(a) Establishment. The Advisory Committee on Promoting Adoption of Minority Children (ACPAMC) is established.(b) Purpose. The ACPAMC works locally and at the state level to raise awareness of the needs of minority children in all stages of service.(c) Tasks. The ACPAMC performs the following tasks:(1) makes recommendation to the Department through regularly scheduled meetings and Department staff assigned to the committee; and(2) performs other tasks consistent with the committee's purpose that are requested by the Commissioner.(d) Reporting requirements and department action.(1) The ACPAMC reports to the Department at least annually the committee's recommendations for Department programs and projects that will promote the adoption of and provision of services to minority children.(2) The committee's recommendations may inform Department policy or practice.(e) Membership.(1) The ACPAMC consists of no more than 24 members.(A) Members are appointed by the Commissioner.(B) Membership requirements:(i) Members must have knowledge of and experience in community education, cultural relations, family support, counseling, and parenting skills and education.(ii) Membership may include ordained members of the clergy.(2) Except as may be necessary to stagger terms, a committee member serves for a two-year term and may be appointed for additional terms at the discretion of the Commissioner.(f) Meetings. The Committee will meet at least quarterly.(g) Decision-making. The committee will make decisions by consensus.(h) Bylaws. The ACPAMC will adopt bylaws to govern committee practices including selection of the presiding officer, voting procedures, attendance requirements, reimbursement procedures, workgroups and subcommittees, and conflicts of interest.(i) Presiding officer. The presiding officer serves for a two-year term.(j) Abolition. The ACPAMC is abolished, and this section expires, August 31, 2026.</content><note type="source"><p>Source Note: The provisions of this §702.511 adopted to be effective July 1, 2016, 41 TexReg 4053.</p></note></section><section identifier="/us/state/tx/tac/t40/p19/c702/scF/s702.513"><num value="702.513">§702.513</num><heading>Parent Collaboration Group</heading><content>(a) Establishment. The Parent Collaboration Group ("PCG") is established.(b) Purpose. The purpose of the PCG is to provide a forum for individuals who have had involvement with the child welfare system as parents to discuss their experiences and make recommendations to the Department for improving the system.(c) Tasks. The PCG performs the following tasks:(1) Makes recommendations to the Department through regularly scheduled meetings and Department staff assigned to the committee; and(2) Performs other tasks consistent with its purpose and bylaws.(d) Reporting requirements and Department action.(1) The Department will gather information on the PCG activities to compile an annual report.(2) The annual report may guide Department policy or practice.(e) Membership.(1) The PCG consists of no more than 22 members.(2) Members are appointed by the Regional Directors.(3) Membership requirements:(A) All members must have previously been involved in the child welfare system as parents.(B) In general, the member's Child Protective Services case must have been closed for one year; the Regional Director may make exceptions to this rule if the parent is otherwise qualified.(C) Two members per Department region will serve on the PCG if possible.(4) Except as may be necessary to stagger terms, a PCG member serves for a two-year term and may be appointed for additional terms, not to exceed three terms.(f) Meetings. The PCG will meet a minimum of three times per year.(g) Decision-making. The committee will make decisions by consensus.(h) Abolition. The PCG is abolished, and this section expires, August 31, 2026.(i) The PCG is not a "governmental body" for purposes of the Open Meetings Act, Texas Government Code Chapter 551.</content><note type="source"><p>Source Note: The provisions of this §702.513 adopted to be effective July 1, 2016, 41 TexReg 4053.</p></note></section><section identifier="/us/state/tx/tac/t40/p19/c702/scF/s702.515"><num value="702.515">§702.515</num><heading>Youth Leadership Council</heading><content>(a) Establishment. The Youth Leadership Council is established.(b) Purpose. The Youth Leadership Council provides a forum for youth who are currently or were formerly in foster care to discuss their experiences with the Texas foster care system and make recommendations to the Department for improving the system.(c) Tasks. The Youth Leadership Council performs the following tasks:(1) Makes recommendations to the Department through scheduled meetings based on the availability of the current or former foster youth; and(2) Performs other tasks consistent with its purpose.(d) Reporting requirements and Department action.(1) The Department will gather information on the Youth Leadership Council's activities to compile an annual report.(2) The annual report may guide Department policy and practice.(e) Membership.(1) The Youth Leadership Council consists of no more than 24 members.(2) Members for the Youth Leadership Council are recommended by regional youth leadership councils, Regional Youth Specialists, Preparation for Adult Living staff, or other individuals familiar with the current or former foster youth.(3) Membership requirements:(A) Two members will be appointed per region if possible.(B) Members must be youth who are currently or were formerly in foster care and who are under the age of 21 when appointed.(f) Meetings. The Youth Leadership Council will meet a minimum of two times per year.(g) Decision-making. The Youth Leadership Council will make decisions by consensus.(h) Abolition. The Youth Leadership Council is abolished, and this section expires, on August 31, 2026.(i) The Youth Leadership Council is not a "governmental body" for purposes of the Open Meetings Act, Texas Government Code Chapter 551.</content><note type="source"><p>Source Note: The provisions of this §702.515 adopted to be effective July 1, 2016, 41 TexReg 4053.</p></note></section></subchapter><subchapter identifier="/us/state/tx/tac/t40/p19/c702/scG"><num value="G">SUBCHAPTER G</num><heading>TRAINING AND EDUCATION</heading><section identifier="/us/state/tx/tac/t40/p19/c702/scG/s702.601"><num value="702.601">§702.601</num><heading>What is the purpose of this subchapter?</heading><content>This subchapter contains DFPS policies on employee eligibility to participate in training and education programs, and on employee obligations upon receipt of training and education.</content><note type="source"><p>Source Note: The provisions of this §702.601 adopted to be effective March 1, 2001, 26 TexReg 1352; amended to be effective December 1, 2006, 31 TexReg 9037.</p></note></section><section identifier="/us/state/tx/tac/t40/p19/c702/scG/s702.605"><num value="702.605">§702.605</num><heading>What is DFPS's policy on training?</heading><content>DFPS encourages the professional development of all staff through training and education programs. Subject to the availability of funds, DFPS is authorized to fund costs for training and education in accordance with the State Employees Training Act, Texas Government Code, §§656.041 - 656.049.</content><note type="source"><p>Source Note: The provisions of this §702.605 adopted to be effective March 1, 2001, 26 TexReg 1352; amended to be effective December 1, 2006, 31 TexReg 9037.</p></note></section><section identifier="/us/state/tx/tac/t40/p19/c702/scG/s702.609"><num value="702.609">§702.609</num><heading>Can the training or education be on any topic?</heading><content>No. Training or education must be related to the employee's current duties or prospective duties.</content><note type="source"><p>Source Note: The provisions of this §702.609 adopted to be effective March 1, 2001, 26 TexReg 1352.</p></note></section><section identifier="/us/state/tx/tac/t40/p19/c702/scG/s702.613"><num value="702.613">§702.613</num><heading>Can an employee be required to attend training or education?</heading><content>Yes, if the training or education is related to the employee's duties or prospective duties.</content><note type="source"><p>Source Note: The provisions of this §702.613 adopted to be effective March 1, 2001, 26 TexReg 1352.</p></note></section><section identifier="/us/state/tx/tac/t40/p19/c702/scG/s702.617"><num value="702.617">§702.617</num><heading>When does DFPS provide educational or technical training?</heading><content>(a) DFPS may provide training for an employee if the executive director or his designee determines that the training will:(1) enhance the employee's ability to perform his current job duties, or enable the employee to perform prospective job duties; or(2) benefit both DFPS and the employee by:(A) providing the employee with opportunities to meet professional development requirements;(B) providing greater employee career planning choices; or(C) introducing new, more efficient technologies to DFPS.(b) DFPS may pay for the salary, tuition and other fees, travel and living expenses, training stipend, expense of training materials, and other expenses of an instructor, student, or other participant in a training or education program.(c) Approval to participate in a training or education program is subject to the availability of funds within the DFPS budget, and supervisory approval.</content><note type="source"><p>Source Note: The provisions of this §702.617 adopted to be effective March 1, 2001, 26 TexReg 1352; amended to be effective December 1, 2006, 31 TexReg 9037.</p></note></section><section identifier="/us/state/tx/tac/t40/p19/c702/scG/s702.618"><num value="702.618">§702.618</num><heading>Does DFPS provide an incentive program for employees who provide adult protective services to obtain professional credentials related to adult protective services?</heading><content>Yes. Subject to the availability of funds, DFPS provides incentives in the form of training time and reimbursement for some educational expenses for employees who are enrolled in undergraduate or graduate programs leading to a professional credential related to adult protective services.</content><note type="source"><p>Source Note: The provisions of this §702.618 adopted to be effective December 1, 2006, 31 TexReg 9037.</p></note></section><section identifier="/us/state/tx/tac/t40/p19/c702/scG/s702.621"><num value="702.621">§702.621</num><heading>What is the employee's obligation to DFPS after completing education or training?</heading><content>(a) An employee who completes education or training for which DFPS provided all or part of the required fees may be required to:(1) remain employed with DFPS for a specified period; and(2) consult, instruct, or assist in disseminating the information acquired from training and education to other employees.(b) If an employee receives training or education paid for by DFPS that is covered by the Texas Government Code, Chapter 656, Subchapter D, and the employee does not perform his regular duties for three or more months in order to obtain the training, the employee must:(1) work for DFPS following the training for at least one month for each month of the training period; or(2) pay DFPS for all the costs associated with the training that were paid by DFPS during the training period, including any of the employee's salary that was paid and not accounted for as paid vacation or compensatory leave; and(3) sign a written acknowledgment and acceptance of the requirements specified in paragraphs (1) and (2) of this subsection.(c) If an employee does not provide the services required in subsection (b)(1) of this section, provides those services for less than the required time, or fails to make payments required in subsection (b)(2) of this section, the employee is liable for the costs described in subsection (b)(2) of this section, and for expenses incurred by DFPS in obtaining payment, including reasonable attorney fees.</content><note type="source"><p>Source Note: The provisions of this §702.621 adopted to be effective March 1, 2001, 26 TexReg 1352; amended to be effective December 1, 2006, 31 TexReg 9037.</p></note></section></subchapter><subchapter identifier="/us/state/tx/tac/t40/p19/c702/scH"><num value="H">SUBCHAPTER H</num><heading>TRAUMA AND TRAUMA-INFORMED CARE</heading><section identifier="/us/state/tx/tac/t40/p19/c702/scH/s702.701"><num value="702.701">§702.701</num><heading>What is Trauma and Trauma-Informed Care?</heading><content>(a) Trauma results from an event, series of events, or set of circumstances experienced by an individual as physically or emotionally harmful or life-threatening with lasting adverse effects on the individual's functioning or the individual's mental, physical, social, emotional, or spiritual well-being.(b) An individual, program, organization, or system that is trauma-informed fully integrates knowledge about trauma into policies, procedures, and practices by:(1) Realizing the widespread impact of trauma, understanding potential paths for recovery, and acknowledging the compounding impact of structural inequities related to culture, history, race, gender, identity, locale, and language;(2) Recognizing the signs and symptoms of trauma in clients, families, staff, and others involved with the system;(3) Maximizing physical and psychological safety and responding to the impact of structural inequities on individuals and communities;(4) Building healthy, trusting relationships that create mutuality among children, families, caregivers, and professionals at an individual and organizational level; and(5) Striving to avoid re-traumatization.</content><note type="source"><p>Source Note: The provisions of this §702.701 adopted to be effective February 3, 2021, 46 TexReg 841.</p></note></section></subchapter><subchapter identifier="/us/state/tx/tac/t40/p19/c702/scI"><num value="I">SUBCHAPTER I</num><heading>OFFICE OF CONSUMER AFFAIRS SERVICES</heading><section identifier="/us/state/tx/tac/t40/p19/c702/scI/s702.801"><num value="702.801">§702.801</num><heading>What is the Office of Consumer Affairs?</heading><content>(a) The Office of Consumer Affairs of the Texas Department of Family and Protective Services (DFPS) is a neutral party that reviews complaints regarding case-specific activities of the DFPS program areas to determine if DFPS's policies and procedures were followed. The complaint process is described in Division 2 of this subchapter (relating to Office of Consumer Affairs Complaint Process).(b) The Office of Consumer Affairs also conducts reviews of case-specific findings that designate an individual as a perpetrator of abuse or neglect. The review process is described in Division 3 of this subchapter (relating to Office of Consumer Affairs Review of Perpetrator Designation).</content><note type="source"><p>Source Note: The provisions of this §702.801 adopted to be effective June 27, 2002, 27 TexReg 5248; amended to be effective September 1, 2016, 41 TexReg 6078.</p></note></section><section identifier="/us/state/tx/tac/t40/p19/c702/scI/s702.811"><num value="702.811">§702.811</num><heading>How can a member of the public find out about the complaint process?</heading><content>The Texas Department of Family and Protective Services (DFPS) publicizes the availability of the complaint process and the mailing address and telephone number to which complaints should be sent through:(1) signs displayed in DFPS offices;(2) DFPS brochures;(3) the DFPS public web site at http://www.dfps.state.tx.us; and(4) other methods determined by DFPS.</content><note type="source"><p>Source Note: The provisions of this §702.811 adopted to be effective June 27, 2002, 27 TexReg 5248; amended to be effective September 1, 2016, 41 TexReg 6078.</p></note></section><section identifier="/us/state/tx/tac/t40/p19/c702/scI/s702.813"><num value="702.813">§702.813</num><heading>Who may file complaints?</heading><content>The Office of Consumer Affairs complaint process is available to:(1) consumers, service recipients, and persons or entities regulated by the Department of Family and Protective Services (DFPS) who have a concern or complaint regarding a specific case;(2) individuals from the public who have a concern or complaint regarding a specific case, including but not limited to extended family, friends of the family, or foster parents;(3) other state agencies when the complaint is regarding a specific case;(4) government officials, including judges and state and federal legislative and executive offices;(5) DFPS employees, if the complaint alleges a violation of DFPS policy in a case-specific situation; and(6) former foster children or youth, including youth that are 18 years of age or older and are in extended foster care. A child or youth who is currently in the conservatorship of DFPS, may still file a complaint through the process described in §702.815 of this title (relating to May current foster children and youth file complaints?).</content><note type="source"><p>Source Note: The provisions of this §702.813 adopted to be effective June 27, 2002, 27 TexReg 5248; amended to be effective September 1, 2016, 41 TexReg 6078.</p></note></section><section identifier="/us/state/tx/tac/t40/p19/c702/scI/s702.815"><num value="702.815">§702.815</num><heading>May current foster children and youth file complaints?</heading><content>(a) Yes. If a child or youth who is under 18 years of age and currently in the conservatorship of the Department of Family and Protective Services (DFPS) seeks to file a complaint, the child or youth should be directed to the Health and Human Services Commission's Ombudsman For Children and Youth in Foster Care. To file the complaint, the current foster child or youth may contact the Ombudsman for Children and Youth in Foster Care through the following methods:(1) Toll-free phone: 1-844-286-0769;(2) Toll-free fax: 1-888-780-8099;(3) Mail: Texas Health and Human Services Commission, Foster Care Ombudsman, MC H-700, P. O. Box 13247, Austin, Texas 78711-3247; or(4) Email: fco@hhsc.state.tx.us(b) A current foster child or youth may file a complaint regarding any issues that are within the authority of DFPS or another health and human services agency. This includes individual complaints that allege violations of agency procedures or policies or other violations.(c) A current foster child or youth may also contact the Ombudsman For Children and Youth in Foster Care to seek assistance in reporting allegations of abuse or neglect to DFPS.</content><note type="source"><p>Source Note: The provisions of this §702.815 adopted to be effective September 1, 2016, 41 TexReg 6078.</p></note></section><section identifier="/us/state/tx/tac/t40/p19/c702/scI/s702.817"><num value="702.817">§702.817</num><heading>How will the Department of Family and Protective Services (DFPS) assist the Health and Human Services Commission's Ombudsman For Children and Youth in Foster Care office in reviewing and investigating complaints filed by current foster children or youth?</heading><content>(a) DFPS will collaborate with the Ombudsman For Children and Youth in Foster Care to develop and implement an annual outreach plan to promote awareness of the office among children and youth in the conservatorship of DFPS.(b) DFPS will provide the Ombudsman For Children and Youth in Foster Care with access to DFPS records relating to the complaint, cooperate with the office in responding to questions that the Ombudsman may have regarding the complaint, and provide information requested by the office in order to assist in resolving complaints.(c) DFPS will cooperate with the Ombudsman for Children and Youth in Foster Care to create consequences, based on the circumstances of the complaint and the severity of the retaliation, for any person who is found to have retaliated against a child or youth in the conservatorship of DFPS because of a complaint made to the Ombudsman.</content><note type="source"><p>Source Note: The provisions of this §702.817 adopted to be effective September 1, 2016, 41 TexReg 6078.</p></note></section><section identifier="/us/state/tx/tac/t40/p19/c702/scI/s702.819"><num value="702.819">§702.819</num><heading>When does the Office of Consumer Affairs not accept complaints for review?</heading><content>The complaint process is not available:(1) to individuals who have been designated as perpetrators of abuse or neglect. Those individuals must use procedures specified in Division 3 of this subchapter (relating to Office of Consumer Affairs Review of Perpetrator Designation), unless the complaint relates to issues other than the case disposition;(2) for complaints the Office of Consumer Affairs has reviewed multiple times and has made all reasonable efforts within agency policy and procedures to resolve;(3) for complaints related to civil rights issues;(4) for complaints regarding or from Department of Family and Protective Services staff relating to personnel issues; or(5) if the Office of Consumer Affairs discovers that the subject of a complaint is an issue in ongoing or forthcoming litigation against DFPS, except for ongoing Child Protective Services conservatorship cases, or is the subject of a law enforcement investigation or criminal prosecution, and the Office of Consumer Affairs determines that the review would interfere with the litigation, investigation, or prosecution.</content><note type="source"><p>Source Note: The provisions of this §702.819 adopted to be effective September 1, 2016, 41 TexReg 6078.</p></note></section><section identifier="/us/state/tx/tac/t40/p19/c702/scI/s702.821"><num value="702.821">§702.821</num><heading>How does a complainant file a complaint?</heading><content>A complainant may contact the Office of Consumer Affairs for direct case-specific complaints concerning the Department of Family and Protective Services (DFPS) using one of the following methods:(1) sending a correspondence via mail to the Office of Consumer Affairs, Texas Department of Family and Protective Services, Mail Code Y-946, P.O. Box 149030, Austin, Texas 78714-9030;(2) calling the toll-free number: 1-800-720-7777;(3) sending a facsimile to the Office of Consumer Affairs at (512) 339-5892;(4) using the DFPS public web site at http://www.dfps.state.tx.us; or(5) sending an email to oca@dfps.state.tx.us.</content><note type="source"><p>Source Note: The provisions of this §702.821 adopted to be effective September 1, 2016, 41 TexReg 6078.</p></note></section><section identifier="/us/state/tx/tac/t40/p19/c702/scI/s702.823"><num value="702.823">§702.823</num><heading>Must a complainant go through another agency complaint process before contacting the Office of Consumer Affairs?</heading><content>No. Although the Department of Family and Protective Services encourages complaint resolution at the local level, a complainant may file a complaint with the Office of Consumer Affairs at any time, without going through another agency process for complaint resolution.</content><note type="source"><p>Source Note: The provisions of this §702.823 adopted to be effective September 1, 2016, 41 TexReg 6078.</p></note></section><section identifier="/us/state/tx/tac/t40/p19/c702/scI/s702.825"><num value="702.825">§702.825</num><heading>How does a complainant know if the Office of Consumer Affairs received the complaint?</heading><content>(a) The Office of Consumer Affairs acknowledges receipt of each complaint, informs the complainant whether the complaint meets the criteria for an Office of Consumer Affairs complaint, and provides the complainant information by mail or telephone regarding the procedures for investigating and resolving a complaint.(b) A complaint may be accepted initially and later refused if subsequent investigation or developments determine that the complaint is no longer appropriate for the Office of Consumer Affairs.</content><note type="source"><p>Source Note: The provisions of this §702.825 adopted to be effective September 1, 2016, 41 TexReg 6078.</p></note></section><section identifier="/us/state/tx/tac/t40/p19/c702/scI/s702.827"><num value="702.827">§702.827</num><heading>How does the complaint process work?</heading><content>(a) The Office of Consumer Affairs reviews complaints to determine whether applicable rule, statute, or the policies and procedures of the Department of Family and Protective Services (DFPS) were followed.(b) The Office of Consumer Affairs provides status information at least quarterly to the complainant, if there is a pending complaint, unless the information would jeopardize an undercover investigation.(c) The Office of Consumer Affairs notifies the complainant of the findings made by the Office of Consumer Affairs, within the limits of confidentiality required by the Texas Open Records Act and state and federal law.(d) If the Office of Consumer Affairs determines that applicable rule, statute, or DFPS's policies and procedures were not followed, the Office of Consumer Affairs notifies appropriate agency staff so appropriate corrective measures can be taken.(e) The Office of Consumer Affairs keeps a file for each complaint. The electronic file and paper copies of the records will be purged every two years after the complaint is closed.</content><note type="source"><p>Source Note: The provisions of this §702.827 adopted to be effective September 1, 2016, 41 TexReg 6078.</p></note></section><section identifier="/us/state/tx/tac/t40/p19/c702/scI/s702.829"><num value="702.829">§702.829</num><heading>What are the reporting requirements of the Office of Consumer Affairs?</heading><content>The Office of Consumer Affairs prepares and delivers a report annually to the Commissioner for the Department of Family and Protective Services (DFPS) and State Office Program Administrators regarding the number, type, and resolution of complaints made against DFPS. The Office of Consumer Affairs also provides a monthly report to the Health and Human Services Commission's Office of the Ombudsman that is included in the written report to the Health and Human Services Commission's executive director.</content><note type="source"><p>Source Note: The provisions of this §702.829 adopted to be effective September 1, 2016, 41 TexReg 6078.</p></note></section><section identifier="/us/state/tx/tac/t40/p19/c702/scI/s702.841"><num value="702.841">§702.841</num><heading>Who can request an Office of Consumer Affairs Review of perpetrator designation?</heading><content>(a) Anyone who has been determined to be a perpetrator of abuse or neglect as a result of an investigation conducted by the Child Protective Services (CPS) Program of the Department of Family and Protective Services (DFPS) can request an Office of Consumer Affairs Review. The individual must use the Administrative Review of Investigative Findings (ARIF) process offered by the Child Protective Services Program before the individual is eligible for the Office of Consumer Affairs Review.(b) An Office of Consumer Affairs Review is not available in the following situations:(1) if DFPS determines that a court of competent jurisdiction has issued an order that is legally consistent with the DFPS finding on the allegation of abuse or neglect for which the Review was requested;(2) if the complaint is to challenge any other orders or findings made by the court in which the suit affecting the parent-child relationship has been filed, including removal orders;(3) if there is pending litigation against DFPS related to the designation; or(4) if the requester does not qualify for an Office of Consumer Affairs Review even if the requester qualified for the ARIF.</content><note type="source"><p>Source Note: The provisions of this §702.841 adopted to be effective June 27, 2002, 27 TexReg 5248; amended to be effective September 1, 2016, 41 TexReg 6078.</p></note></section><section identifier="/us/state/tx/tac/t40/p19/c702/scI/s702.843"><num value="702.843">§702.843</num><heading>Are there timeframes for requesting the Office of Consumer Affairs Review?</heading><content>(a) Yes. Except for good cause determined by the Office of Consumer Affairs director, an individual must request an Office of Consumer Affairs Review in writing within 45 calendar days after the date the Administrative Review of Investigative Findings (ARIF) notification letter was sent.(b) An individual may request the Office of Consumer Affairs Review using one of the following methods:(1) mailing the request to the Office of Consumer Affairs, Texas Department of Family and Protective Services, Mail Code Y-946, P.O. Box 149030, Austin, Texas 78714-9030;(2) sending a facsimile to the Office of Consumer Affairs at (512) 339-5892;(3) using the Department of Family and Protective Services public web site at http://www.dfps.state.tx.us; or(4) sending an email to oca@dfps.state.tx.us.</content><note type="source"><p>Source Note: The provisions of this §702.843 adopted to be effective June 27, 2002, 27 TexReg 5248; amended to be effective September 1, 2016, 41 TexReg 6078.</p></note></section><section identifier="/us/state/tx/tac/t40/p19/c702/scI/s702.845"><num value="702.845">§702.845</num><heading>How does a requester know if the Office of Consumer Affairs received the request?</heading><content>The Office of Consumer Affairs acknowledges receipt of the request in writing.</content><note type="source"><p>Source Note: The provisions of this §702.845 adopted to be effective June 27, 2002, 27 TexReg 5248; amended to be effective September 1, 2016, 41 TexReg 6078.</p></note></section><section identifier="/us/state/tx/tac/t40/p19/c702/scI/s702.847"><num value="702.847">§702.847</num><heading>How does the Office of Consumer Affairs Review work?</heading><content>The Office of Consumer Affairs reviews:(1) the program case record;(2) the Administrative Review of Investigation Findings documents; and(3) additional information that was available during the original investigation and either was considered or should have been considered by staff performing the investigation. Only in extraordinary circumstances, at the discretion of the Office of Consumer Affairs director, will new information be considered in the Office of Consumer Affairs Review.</content><note type="source"><p>Source Note: The provisions of this §702.847 adopted to be effective June 27, 2002, 27 TexReg 5248; amended to be effective September 1, 2016, 41 TexReg 6078.</p></note></section><section identifier="/us/state/tx/tac/t40/p19/c702/scI/s702.849"><num value="702.849">§702.849</num><heading>What happens when the Office of Consumer Affairs completes the Review?</heading><content>After completing the Review, the Office of Consumer Affairs prepares written findings and recommendations.(1) If the Office of Consumer Affairs findings sustain the Administrative Review of Investigation Findings (ARIF), the Office of Consumer Affairs director or designee notifies the requester of the final disposition of the case.(2) If the Office of Consumer Affairs does not concur with the ARIF, the ARIF documents and Office of Consumer Affairs Review materials are forwarded to the program assistant commissioner or designee for consideration.(A) If concurrence is reached, the Office of Consumer Affairs forwards a notification letter to the requester advising the requester of the findings.(B) If the Office of Consumer Affairs and the CPS assistant commissioner or designee do not agree, the case is forwarded to Department of Family and Protective Services' general counsel, who reviews the case and makes the final decision as the DFPS commissioner's designee. The Office of Consumer Affairs then notifies the requester of the final case disposition.</content><note type="source"><p>Source Note: The provisions of this §702.849 adopted to be effective June 27, 2002, 27 TexReg 5248; amended to be effective September 1, 2016, 41 TexReg 6078.</p></note></section></subchapter><subchapter identifier="/us/state/tx/tac/t40/p19/c702/scK"><num value="K">SUBCHAPTER K</num><heading>CIVIL RIGHTS</heading><section identifier="/us/state/tx/tac/t40/p19/c702/scK/s702.1001"><num value="702.1001">§702.1001</num><heading>How does PRS ensure nondiscrimination in employment practices?</heading><content>PRS maintains a central office responsible for ensuring compliance with federal and state laws pertaining to nondiscrimination in employment practices and in the provision of services to the public. PRS maintains policy and procedure to ensure said compliance in formats accessible to both employees and the general public.</content><note type="source"><p>Source Note: The provisions of this §702.1001 adopted to be effective July 1, 2002, 27 TexReg 5250.</p></note></section></subchapter><subchapter identifier="/us/state/tx/tac/t40/p19/c702/scM"><num value="M">SUBCHAPTER M</num><heading>VEHICLE FLEET MANAGEMENT</heading><section identifier="/us/state/tx/tac/t40/p19/c702/scM/s702.1201"><num value="702.1201">§702.1201</num><heading>What is the purpose of this subchapter?</heading><content>The rules in this subchapter govern the agency's assignment and use of agency-owned vehicles.</content><note type="source"><p>Source Note: The provisions of this §702.1201 adopted to be effective October 17, 2002, 27 TexReg 9392.</p></note></section><section identifier="/us/state/tx/tac/t40/p19/c702/scM/s702.1203"><num value="702.1203">§702.1203</num><heading>What policies and procedures govern the assignment and use of agency-owned vehicles?</heading><content>(a) The PRS Business Services division is responsible for the development and implementation of agency policies and procedures, which must be consistent with the State Vehicle Fleet Management Plan adopted by the Office of Vehicle Fleet Management of the Building and Procurement Commission, as well as all other applicable state and federal laws.(b) It is the policy of PRS that each agency vehicle will be assigned to the agency motor pool and be available for checkout, except as otherwise provided in this section.(c) An agency-owned vehicle may be assigned to an individual employee on a regular or everyday basis only if the agency makes a written finding that the assignment is critical to the needs and mission of the agency.</content><note type="source"><p>Source Note: The provisions of this §702.1203 adopted to be effective October 17, 2002, 27 TexReg 9392.</p></note></section></subchapter></chapter><chapter identifier="/us/state/tx/tac/t40/p19/c704"><num value="704">CHAPTER 704</num><heading>PREVENTION AND EARLY INTERVENTION SERVICES</heading><subchapter identifier="/us/state/tx/tac/t40/p19/c704/scA"><num value="A">SUBCHAPTER A</num><heading>PURPOSE AND DEFINITIONS</heading><section identifier="/us/state/tx/tac/t40/p19/c704/scA/s704.1"><num value="704.1">§704.1</num><heading>What is the purpose of this chapter?</heading><content>The purpose of this chapter is to provide information regarding the Prevention and Early Intervention Services Division of the Department of Family and Protective Services (DFPS).</content><note type="source"><p>Source Note: The provisions of this §704.1 adopted to be effective May 1, 2003, 28 TexReg 3071; amended to be effective December 1, 2006, 31 TexReg 9038.</p></note></section><section identifier="/us/state/tx/tac/t40/p19/c704/scA/s704.3"><num value="704.3">§704.3</num><heading>How are the key terms in this chapter defined?</heading><content>The following words and terms, when used in this chapter, have the following meanings, unless the context clearly indicates otherwise:(1) At-risk children and families--A uniquely identified population of children, youth, and families in whom factors have been identified that are associated with the condition to be prevented.(2) DFPS--Department of Family and Protective Services.(3) Indicated prevention--Targets individual children, youth, or families who manifest a specific risk factor or behavior, and are thereby judged likely candidates for the condition that is to be prevented. Methods may be group-oriented, family-oriented, or individual-oriented, with a focus on assessing and amplifying strengths and supports at the family and individual level primarily.(4) Prevention and early intervention services--Programs intended to proactively create conditions and/or personal attributes that promote the well-being of people, in order to prevent child abuse and neglect, juvenile delinquency, academic failure, and youth homelessness.(5) PEI--The Prevention and Early Intervention Services Division within the Department of Family and Protective Services (DFPS).(6) Selective prevention--Targets specific subgroups whose risk is significantly higher than the general population's due to environmental, demographic, socio-economic, or situational factors; but who are not yet exhibiting the specific behaviors or individual factors identified as risk factors for the condition that is to be prevented. Methods are group-oriented, involving the targeted group of individuals and families, with a focus on assessing and amplifying strengths and supports at the community and family level.(7) Treatment--Differs from prevention in that it targets individuals and their families who already exhibit the condition to be prevented. Methods may be group-oriented, family-oriented, or individual-oriented, with a focus on remedying problems resulting from the condition and amplifying strengths to avoid recurrence.(8) Universal prevention--Targets the general population and risks common to all children, youth, and families. Methods impact the general population, with a focus on assessing and amplifying strengths and supports at the community level.</content><note type="source"><p>Source Note: The provisions of this §704.3 adopted to be effective May 1, 2003, 28 TexReg 3071; amended to be effective December 1, 2006, 31 TexReg 9038.</p></note></section></subchapter><subchapter identifier="/us/state/tx/tac/t40/p19/c704/scC"><num value="C">SUBCHAPTER C</num><heading>PREVENTION AND INTERVENTION PRIMARY RESPONSIBILITIES</heading><section identifier="/us/state/tx/tac/t40/p19/c704/scC/s704.201"><num value="704.201">§704.201</num><heading>What is the Prevention and Early Intervention (PEI) Division and what are its primary responsibilities?</heading><content>The PEI Division is responsible for planning, developing, and administering a comprehensive system of universal, selective, and indicated prevention and early intervention or treatment services, as described in the Texas Family Code, Chapter 265.</content><note type="source"><p>Source Note: The provisions of this §704.201 adopted to be effective May 1, 2003, 28 TexReg 3071.</p></note></section><section identifier="/us/state/tx/tac/t40/p19/c704/scC/s704.203"><num value="704.203">§704.203</num><heading>How does PEI carry out its primary responsibilities?</heading><content>PEI works with communities, nonprofit organizations, local governments, state agencies, and others to assess needs, plan for appropriate services, select service providers, provide funding, manage, and assess the outcomes of programs that provide prevention and intervention services.</content><note type="source"><p>Source Note: The provisions of this §704.203 adopted to be effective May 1, 2003, 28 TexReg 3071.</p></note></section><section identifier="/us/state/tx/tac/t40/p19/c704/scC/s704.205"><num value="704.205">§704.205</num><heading>How does PEI select entities to receive funds for prevention and early intervention programs?</heading><content>Funds are appropriated to DFPS by the legislature and subsequently allocated to PEI per the Legislative Appropriation Request (LAR) strategies. The plan for distribution of funds is outlined in the LAR strategies. A procurement process is used to select providers and allocate funds through contracts. Outcomes are reported to the Legislative Budget Board (LBB) for specific programs as indicated in legislation.</content><note type="source"><p>Source Note: The provisions of this §704.205 adopted to be effective May 1, 2003, 28 TexReg 3071; amended to be effective December 1, 2006, 31 TexReg 9038.</p></note></section><section identifier="/us/state/tx/tac/t40/p19/c704/scC/s704.207"><num value="704.207">§704.207</num><heading>How can a member of the public obtain more information on specific PEI initiatives or funding opportunities?</heading><content>PEI procurements are posted on the Electronic State Business Daily (http://esbd.tbpc.state.tx.us), where the entire procurement package may be downloaded, including the Request for Proposals (RFP), budget pages, certification forms, and any clarifications. Hard copies of RFPs may also be requested from DFPS after they are released. Information on PEI programs and initiatives may be accessed on the agency's website at: http://www.dfps.state.tx.us/Prevention_and_Early_Intervention.</content><note type="source"><p>Source Note: The provisions of this §704.207 adopted to be effective May 1, 2003, 28 TexReg 3071; amended to be effective December 1, 2006, 31 TexReg 9038.</p></note></section><section identifier="/us/state/tx/tac/t40/p19/c704/scC/s704.209"><num value="704.209">§704.209</num><heading>How does PEI generally administer grants?</heading><content>Grants awarded by PEI are generally administered as contracts subject to Chapter 732 of this title (relating to Contracted Services).</content><note type="source"><p>Source Note: The provisions of this §704.209 adopted to be effective December 1, 2006, 31 TexReg 9038.</p></note></section></subchapter><subchapter identifier="/us/state/tx/tac/t40/p19/c704/scG"><num value="G">SUBCHAPTER G</num><heading>INFANT MORTALITY PREVENTION AND EDUCATION PROGRAM</heading><section identifier="/us/state/tx/tac/t40/p19/c704/scG/s704.601"><num value="704.601">§704.601</num><heading>What is the Infant Mortality Prevention Education Program?</heading><content>The Infant Mortality Prevention Education Program is a statewide education program designed to prevent infant mortality, as described in the Human Resources Code, §40.0523</content><note type="source"><p>Source Note: The provisions of this §704.601 adopted to be effective May 1, 2003, 28 TexReg 3071.</p></note></section><section identifier="/us/state/tx/tac/t40/p19/c704/scG/s704.603"><num value="704.603">§704.603</num><heading>What is PEI's role in implementation of the Infant Mortality Education Program?</heading><content>PEI will enter into a contract with a qualified provider to deliver services consistent with the requirements described in the Human Resources Code, §40.0523.</content><note type="source"><p>Source Note: The provisions of this §704.603 adopted to be effective May 1, 2003, 28 TexReg 3071.</p></note></section></subchapter><subchapter identifier="/us/state/tx/tac/t40/p19/c704/scH"><num value="H">SUBCHAPTER H</num><heading>COMMUNITY-BASED FAMILY SERVICES GRANT PROGRAM</heading><section identifier="/us/state/tx/tac/t40/p19/c704/scH/s704.701"><num value="704.701">§704.701</num><heading>What is the Community-Based Family Services Grant Program?</heading><content>The Community-Based Family Services Grant Program is a prevention and early intervention program administered by PEI to provide funding to community organizations, including faith-based or county organizations, to respond to:(1) low-priority, less serious cases of abuse and neglect; and(2) cases in which an allegation of abuse or neglect of a child was unsubstantiated, but involved a family that has been previously investigated for abuse or neglect of a child.</content><note type="source"><p>Source Note: The provisions of this §704.701 adopted to be effective December 1, 2006, 31 TexReg 9038.</p></note></section><section identifier="/us/state/tx/tac/t40/p19/c704/scH/s704.703"><num value="704.703">§704.703</num><heading>What is PEI's role in the implementation and administration of the Community-Based Family Services Grant Program?</heading><content>PEI is authorized to enter into a contract or interagency agreement with one or more qualified community organizations to deliver services in accordance with the requirements of the Texas Family Code, §264.204.</content><note type="source"><p>Source Note: The provisions of this §704.703 adopted to be effective December 1, 2006, 31 TexReg 9038.</p></note></section></subchapter><subchapter identifier="/us/state/tx/tac/t40/p19/c704/scI"><num value="I">SUBCHAPTER I</num><heading>CHILDREN'S TRUST FUND</heading><section identifier="/us/state/tx/tac/t40/p19/c704/scI/s704.801"><num value="704.801">§704.801</num><heading>How is the state plan for expending Children's Trust Fund (CTF) funds developed?</heading><content>The state plan for CTF is part of overall PEI planning in developing a continuum of prevention services statewide.</content><note type="source"><p>Source Note: The provisions of this §704.801 adopted to be effective May 1, 2003, 28 TexReg 3071.</p></note></section><section identifier="/us/state/tx/tac/t40/p19/c704/scI/s704.803"><num value="704.803">§704.803</num><heading>How does PEI establish funding priorities for the CTF program?</heading><content>CTF funding priorities are determined through community needs assessments.</content><note type="source"><p>Source Note: The provisions of this §704.803 adopted to be effective May 1, 2003, 28 TexReg 3071.</p></note></section></subchapter></chapter><chapter identifier="/us/state/tx/tac/t40/p19/c705"><num value="705">CHAPTER 705</num><heading>ADULT PROTECTIVE SERVICES</heading><subchapter identifier="/us/state/tx/tac/t40/p19/c705/scA"><num value="A">SUBCHAPTER A</num><heading>DEFINITIONS</heading><section identifier="/us/state/tx/tac/t40/p19/c705/scA/s705.101"><num value="705.101">§705.101</num><heading>How are the terms in this chapter defined?</heading><content>The following words and terms, when used in this chapter, have the following meanings, unless the context clearly indicates otherwise: (1) Administrative law judge--An attorney who serves as a hearings examiner in a due process hearing, including a release hearing.(2) Adult--A person aged 18 or older, or an emancipated minor. (3) Adult with a disability--A person aged 18 or older, or an emancipated minor, with a physical, mental, or developmental disability that substantially impairs the person's ability to adequately provide for his or her own care or protection. (4) Allegation--An assertion that a client is in a state of or at risk of harm due to abuse, neglect, or financial exploitation. (5) Alleged perpetrator--A person who is reported to be responsible for the abuse, neglect, or financial exploitation of a client.(6) APS-Adult Protective Services, a division of DFPS. (7) Capacity to consent to protective services--Having the mental and physical ability to understand the services offered and to accept or reject those services knowing the consequences of the decision. (8) Caretaker--(A) A guardian, representative payee, or other person who by act, words, or course of conduct has acted so as to cause a reasonable person to conclude that the person has accepted the responsibility for protection, food, shelter, or care for a client.(B) A person, including a family member, privately hired and receiving monetary compensation to provide personal care services, as defined in Texas Health and Safety Code, §142.001(22-a), to a client.(9) Client--An adult with a disability or an adult aged 65 or older who has been reported to APS to be in a state of or at risk of harm due to abuse, neglect, or financial exploitation(10) Commissioner--The commissioner of DFPS or the commissioner's designee. (11) Designated perpetrator--An alleged perpetrator who has been determined by an APS validated finding to have abused, neglected, or financially exploited a client. (12) DFPS --Department of Family and Protective Services. (13) Emancipated minor--A person under 18 years of age who has the power and capacity of an adult. This includes a minor who has had the disabilities of minority removed by a court of law or a minor who, with or without parental consent, has been married. Marriage includes common-law marriage. (14) Emotional harm--A highly unpleasant mental reaction with observable signs of distress, such as anguish, grief, fright, humiliation, or fury. (15) Goods--Tangible objects such as food, clothing, shelter and other items necessary to meet one's basic needs. (16) Intimidation--Behavior by actions or words creating fear of physical harm, death, or abandonment. (17) Ongoing relationship--A personal relationship that includes: (A) frequent and regular interaction; (B) a reasonable assumption that the interaction will continue; and (C) an establishment of trust, beyond a commercial or contractual agreement. (18) Physical harm--Physical pain, injury, illness, or any impairment of physical condition. (19) Protective services--The services furnished by DFPS or by another protective services agency to an APS client with a validated finding of abuse, neglect, or financial exploitation, or to that person's relative or caretaker if DFPS determines the services are necessary to prevent the client from being in or returning to a state of abuse, neglect, or financial exploitation. These services may include social casework, case management, and arranging for psychiatric and health evaluation, home care, day care, social services, health care, respite services, and other services consistent with Texas Human Resources Code, §48.002. The term does not include the investigation of an allegation of abuse, neglect, or financial exploitation. (20) Purchased client services (PCS)--A type of protective services provided in accordance with Texas Human Resources Code, §48.002(a)(5), including, but not limited to, emergency shelter, medical, and psychiatric assessments, in-home care, residential care, heavy housecleaning, minor home repairs, money management, transportation, emergency food, medication, and other supplies. (21) Release hearing--A formal due process hearing conducted by an administrative law judge. A release hearing provides a designated perpetrator with an opportunity to appeal DFPS's decision to release information about him or her to persons or entities outside DFPS, except for information released as required or allowed by state or federal law or in accordance with this chapter. (22) Report--An allegation of abuse, neglect, or financial exploitation, as described in Texas Human Resources Code, §48.002, which is made under Texas Human Resources Code, §48.051(a). (23) Reporter--A person who makes a report to DFPS about a situation of alleged abuse, neglect, or financial exploitation of a client.(24) Serious harm--In danger of sustaining significant physical harm or death; or danger of imminent impoverishment or deprivation of basic needs. (25) Services--Activities provided by others, including, but not limited to, cooking, cleaning, money management, medical care, or mental health care. (26) Substantially impairs--When a disability grossly and chronically diminishes an adult's physical or mental ability to live independently or provide self-care as determined through observation, diagnosis, evaluation, or assessment. (27) Sustained perpetrator--A designated perpetrator whose validated finding of abuse, neglect, or financial exploitation of a client has been sustained by an administrative law judge in a due process hearing, including a release hearing, or if the designated perpetrator has waived the right to a hearing. (28) Unreasonable confinement--An act that results in a forced isolation from the people one would normally associate with, including friends, family, neighbors, and professionals; an inappropriate restriction of movement; or the use of any inappropriate restraint.</content><note type="source"><p>Source Note: The provisions of this §705.101 adopted to be effective February 1, 2021, 46 TexReg 317; amended to be effective November 17, 2025, 50 TexReg 7431.</p></note></section><section identifier="/us/state/tx/tac/t40/p19/c705/scA/s705.103"><num value="705.103">§705.103</num><heading>How is abuse defined?</heading><content>In this chapter, when the alleged perpetrator is a caretaker, family member, or other person who has an ongoing relationship with the client, abuse is defined as:(1) the negligent or willful infliction of injury, unreasonable confinement, intimidation, or cruel punishment with resulting physical or emotional harm or pain to the client; or (2) sexual abuse of the client, including any involuntary or nonconsensual sexual conduct that would constitute an offense under Texas Penal Code, Section 21.08, (indecent exposure) or Texas Penal Code, Chapter 22, Assaultive Offenses.</content><note type="source"><p>Source Note: The provisions of this §705.103 adopted to be effective February 1, 2021, 46 TexReg 317; amended to be effective November 17, 2025, 50 TexReg 7431.</p></note></section><section identifier="/us/state/tx/tac/t40/p19/c705/scA/s705.105"><num value="705.105">§705.105</num><heading>How is neglect defined?</heading><content>In this chapter, neglect is defined as the failure to provide for oneself the goods or services, including medical services, which are necessary to avoid physical or emotional harm or pain or the failure of a caretaker to provide such goods or services.</content><note type="source"><p>Source Note: The provisions of this §705.105 adopted to be effective February 1, 2021, 46 TexReg 317.</p></note></section><section identifier="/us/state/tx/tac/t40/p19/c705/scA/s705.107"><num value="705.107">§705.107</num><heading>How is financial exploitation defined?</heading><content>In this chapter, when an alleged perpetrator is a caretaker, family member, or other person who has an ongoing relationship with the client, financial exploitation is defined as the illegal or improper act or process of the alleged perpetrator using, or attempting to use, the resources of the client, including the client's Social Security number or other identifying information, for monetary or personal benefit, profit, or gain without the informed consent of the client.</content><note type="source"><p>Source Note: The provisions of this §705.107 adopted to be effective February 1, 2021, 46 TexReg 317; amended to be effective November 17, 2025, 50 TexReg 7431.</p></note></section></subchapter><subchapter identifier="/us/state/tx/tac/t40/p19/c705/scC"><num value="C">SUBCHAPTER C</num><heading>APS PROGRAM OVERVIEW</heading><section identifier="/us/state/tx/tac/t40/p19/c705/scC/s705.301"><num value="705.301">§705.301</num><heading>What is DFPS's policy on training APS staff?</heading><content>(a) DFPS provides the professional development of all APS staff through training and education programs in compliance with Texas Human Resources Code, §40.035, and Chapter 702, Subchapter G of this title (relating to Training and Education).(b) APS training incorporates actual case examples that are realistic and indicative of staff's current or prospective duties.</content><note type="source"><p>Source Note: The provisions of this §705.301 adopted to be effective February 1, 2021, 46 TexReg 317.</p></note></section><section identifier="/us/state/tx/tac/t40/p19/c705/scC/s705.303"><num value="705.303">§705.303</num><heading>How does DFPS educate the public about APS?</heading><content>(a) DFPS conducts a statewide public awareness campaign to educate the public regarding abuse, neglect, and financial exploitation of clients and to reduce the incidences of maltreatment involving adults with disabilities and adults aged 65 or older.(b) Based on available funding, DFPS utilizes a selection of:(1) public service announcements;(2) program brochures and literature;(3) a prevention website; and(4) speaking engagements, by enlisting the assistance of community organizations.</content><note type="source"><p>Source Note: The provisions of this §705.303 adopted to be effective February 1, 2021, 46 TexReg 317; amended to be effective November 17, 2025, 50 TexReg 7431.</p></note></section></subchapter><subchapter identifier="/us/state/tx/tac/t40/p19/c705/scE"><num value="E">SUBCHAPTER E</num><heading>ALLEGATION PRIORITIES</heading><section identifier="/us/state/tx/tac/t40/p19/c705/scE/s705.501"><num value="705.501">§705.501</num><heading>How are allegations prioritized?</heading><content>(a) APS assigns the following priorities to reported allegations: (1) Priority I--Allegation that the client is in a state of serious harm or is in danger of death from abuse or neglect. (2) Priority II--Allegation that the client is abused, neglected, or financially exploited and, as a result, is at risk of serious harm. (3) Priority III--Allegation that the client is in a state of abuse or neglect when the severity and immediacy of the allegation do not meet the definitions in paragraphs (1) or (2) of this subsection. (4) Priority IV--Allegation that the client is financially exploited when there is no serious harm. (b) APS establishes the timeframe for conducting the initial face-to-face contact with the client based on the priority assigned to the allegation(s).</content><note type="source"><p>Source Note: The provisions of this §705.501 adopted to be effective February 1, 2021, 46 TexReg 317; amended to be effective November 17, 2025, 50 TexReg 7431.</p></note></section></subchapter><subchapter identifier="/us/state/tx/tac/t40/p19/c705/scG"><num value="G">SUBCHAPTER G</num><heading>ELIGIBILITY</heading><section identifier="/us/state/tx/tac/t40/p19/c705/scG/s705.702"><num value="705.702">§705.702</num><heading>Who is eligible for purchased client services?</heading><content>(a) Purchased client services (PCS) are services provided in accordance with Human Resources Code §48.002(a)(5), including, but not limited to, emergency shelter, medical and psychiatric assessments, in-home care, residential care, heavy housecleaning, minor home repairs, money management, transportation, emergency food, medication, and other supplies. (b) APS shall provide PCS, including contracted services, to adults who are elderly or have a disability that have been determined by APS to be in need of protective services in accordance with Human Resources Code §48.002(a)(5) and §48.205. APS must develop a service plan for the client indicating that PCS are necessary to remedy abuse, neglect, or financial exploitation. (c) Other state and local resources must be used before purchased client services are expended in accordance with Human Resources Code §48.205.(d) DFPS service plans that include the use of PCS are subject to the availability of service providers, availability of funds and use of other available resources.</content><note type="source"><p>Source Note: The provisions of this §705.702 adopted to be effective November 17, 2025, 50 TexReg 7431.</p></note></section></subchapter><subchapter identifier="/us/state/tx/tac/t40/p19/c705/scI"><num value="I">SUBCHAPTER I</num><heading>FAMILY VIOLENCE</heading><section identifier="/us/state/tx/tac/t40/p19/c705/scI/s705.901"><num value="705.901">§705.901</num><heading>What actions does APS perform when clients are also victims of family violence?</heading><content>(a) When APS staff validates an allegation that a client is a victim of family violence as specified in Texas Family Code, §71.004, APS staff:(1) documents that the client is a victim of family violence; and (2) provides the client with written information in the client's preferred language, as available, concerning community services. (b) Statistical compilations of the documented findings are included in DFPS's annual report.</content><note type="source"><p>Source Note: The provisions of this §705.901 adopted to be effective February 1, 2021, 46 TexReg 317; amended to be effective November 17, 2025, 50 TexReg 7431.</p></note></section><section identifier="/us/state/tx/tac/t40/p19/c705/scI/s705.903"><num value="705.903">§705.903</num><heading>Can DFPS apply for protective orders?</heading><content>When APS staff validates an allegation that a client is a victim of family violence as specified in Texas Family Code, §71.004, DFPS may apply for a protective order to protect the victim. Before DFPS files the protective order, APS staff contacts the victim and a non-abusive adult member of the household, if available: (1) to notify them of DFPS's intent to file a protective order; and (2) to request assistance in developing a safety plan for the protection of the victim and any non-abusive household members.</content><note type="source"><p>Source Note: The provisions of this §705.903 adopted to be effective February 1, 2021, 46 TexReg 317; amended to be effective November 17, 2025, 50 TexReg 7431.</p></note></section></subchapter><subchapter identifier="/us/state/tx/tac/t40/p19/c705/scK"><num value="K">SUBCHAPTER K</num><heading>INVESTIGATIONS</heading><section identifier="/us/state/tx/tac/t40/p19/c705/scK/s705.1101"><num value="705.1101">§705.1101</num><heading>What assessments does APS use?</heading><content>(a) APS uses a series of three assessments. (1) Safety assessment. When APS investigates, APS uses a safety assessment to determine if the client is in imminent risk of abuse, neglect, or financial exploitation, or is in a state of abuse, neglect, or financial exploitation and needs protective services. A safety assessment helps APS determine current danger factors and if immediate intervention is necessary to mitigate them. (2) Risk of recidivism assessment: If APS validates abuse, neglect, or financial exploitation, APS uses a risk of recidivism assessment to help determine whether the client is at low, moderate, or high risk of being a client within the next 12 months. (3) Strengths and needs assessment: If APS validates abuse, neglect, or financial exploitation and provides protective services, APS uses a strengths and needs assessment to help develop a service plan appropriate to the client's needs. (b) Each assessment is comprehensive, and at a minimum, assesses: (1) environmental conditions; (2) financial condition; (3) physical, medical, and mental health conditions; (4) social interaction and support; and (5) need for legal intervention.</content><note type="source"><p>Source Note: The provisions of this §705.1101 adopted to be effective February 1, 2021, 46 TexReg 317; amended to be effective November 17, 2025, 50 TexReg 7431.</p></note></section><section identifier="/us/state/tx/tac/t40/p19/c705/scK/s705.1103"><num value="705.1103">§705.1103</num><heading>When must an APS caseworker consult with a supervisor regarding a case?</heading><content>An APS caseworker must consult with a supervisor regarding a case when:(1) abuse, neglect, or financial exploitation is validated;(2) the client has a current threat to his or her life or physical safety; and(3) the client refuses to accept services or withdraws a previous acceptance of services.</content><note type="source"><p>Source Note: The provisions of this §705.1103 adopted to be effective February 1, 2021, 46 TexReg 317.</p></note></section></subchapter><subchapter identifier="/us/state/tx/tac/t40/p19/c705/scM"><num value="M">SUBCHAPTER M</num><heading>RELEASE HEARINGS</heading><section identifier="/us/state/tx/tac/t40/p19/c705/scM/s705.1301"><num value="705.1301">§705.1301</num><heading>How are terms in this subchapter defined?</heading><content>The following words and terms, when used in this subchapter, shall have the following meanings, unless the context clearly indicates otherwise:(1) Emergency--Abuse, neglect, or financial exploitation which, without immediate intervention, would result in a child or an adult with a disability or aged 65 or older being in a state of or at risk of serious harm.(2) Release--The release of data outside of DFPS without the designated perpetrator's consent, except for data released as allowed by law or in accordance with this chapter.</content><note type="source"><p>Source Note: The provisions of this §705.1301 adopted to be effective February 1, 2021, 46 TexReg 317.</p></note></section><section identifier="/us/state/tx/tac/t40/p19/c705/scM/s705.1303"><num value="705.1303">§705.1303</num><heading>Does the designated perpetrator have the right to appeal?</heading><content>When APS staff validates an allegation of abuse, neglect, or financial exploitation against a designated perpetrator and an entity or employer (such as a contracting agency or senior center) allows such designated perpetrator to have access to adults with disabilities, adults aged 65 or older, or children, then the APS caseworker may notify the entity of the findings by complying with this subchapter. If the findings are to be released to any entity or employer, the designated perpetrator must be given prior written notification, except in emergencies, and an opportunity to request an Administrative Review of Investigative Findings and a hearing before the State Office of Administrative Hearings.</content><note type="source"><p>Source Note: The provisions of this §705.1303 adopted to be effective February 1, 2021, 46 TexReg 317; amended to be effective November 17, 2025, 50 TexReg 7431.</p></note></section><section identifier="/us/state/tx/tac/t40/p19/c705/scM/s705.1305"><num value="705.1305">§705.1305</num><heading>How is the designated perpetrator notified of the intent to release?</heading><content>(a) The caseworker must give written notification to each designated perpetrator if:(1) allegations of abuse, neglect, or financial exploitation are validated;(2) the findings are to be released outside of DFPS to an entity or employer which allows the designated perpetrator access to adults with disabilities, adults aged 65 or older, or children; and(3) the designated perpetrator, as a result of the release, may be denied a right or privilege, such as employment.(b) Written notification must include:(1) the findings to be released;(2) the entity or employer to which the findings will be released;(3) the designated perpetrator's right to request a copy of the investigation documentation, from which the reporter's name has been removed;(4) a warning that the request for a copy of the investigation documentation may be denied if release of the investigation documentation would jeopardize an ongoing criminal investigation, or if the attorney representing DFPS in a lawsuit has determined that the information should be withheld;(5) DFPS's decision that an emergency exists and that the findings have already been released, if applicable;(6) the designated perpetrator's right to an administrative review and a release hearing to appeal the findings, and a warning that the findings will be released without the designated perpetrator's consent if the designated perpetrator does not request an appeal and the findings have not already been released in an emergency;(7) the requirement that the designated perpetrator must request the appeal in writing and that the request must be postmarked within 20 days after the official notice is mailed by DFPS; and(8) a statement that the designated perpetrator is responsible for keeping DFPS timely informed of the designated perpetrator's current address and to immediately notify DFPS of any change of address or contact information throughout the investigation and any period of time during which an appeal is pending.</content><note type="source"><p>Source Note: The provisions of this §705.1305 adopted to be effective February 1, 2021, 46 TexReg 317.</p></note></section><section identifier="/us/state/tx/tac/t40/p19/c705/scM/s705.1307"><num value="705.1307">§705.1307</num><heading>What is the designated perpetrator's role during an administrative review?</heading><content>(a) The designated perpetrator may:(1) appear in person at the administrative review and may be accompanied by a representative;(2) submit written material that is relevant to the case; or(3) have a certified interpreter provided by DFPS if the designated perpetrator does not speak English or is deaf, or may provide his own interpreter.(b) The designated perpetrator is responsible for:(1) any costs incurred for the review, except for interpreter services provided by DFPS; and(2) keeping DFPS timely informed of his current address at all times during the review period.</content><note type="source"><p>Source Note: The provisions of this §705.1307 adopted to be effective February 1, 2021, 46 TexReg 317.</p></note></section><section identifier="/us/state/tx/tac/t40/p19/c705/scM/s705.1309"><num value="705.1309">§705.1309</num><heading>Are administrative reviews open to the general public?</heading><content>Administrative reviews are closed to the general public consistent with the required statutory confidentiality of DFPS records. Only the designated perpetrator and the designated perpetrator's representative may be present.</content><note type="source"><p>Source Note: The provisions of this §705.1309 adopted to be effective February 1, 2021, 46 TexReg 317.</p></note></section><section identifier="/us/state/tx/tac/t40/p19/c705/scM/s705.1311"><num value="705.1311">§705.1311</num><heading>Who is notified of the confidential decision?</heading><content>If the final outcome of the appeal or any subsequent litigation alters or reverses the APS findings, everyone notified of the original findings must be notified of the final decision. Notification may be in the same form as the original notification. The decision is confidential and may be disclosed only as allowed by law or this chapter.</content><note type="source"><p>Source Note: The provisions of this §705.1311 adopted to be effective February 1, 2021, 46 TexReg 317.</p></note></section></subchapter><subchapter identifier="/us/state/tx/tac/t40/p19/c705/scS"><num value="S">SUBCHAPTER S</num><heading>CONFIDENTIALITY AND RELEASE OF RECORDS</heading><section identifier="/us/state/tx/tac/t40/p19/c705/scS/s705.1901"><num value="705.1901">§705.1901</num><heading>What is the purpose of this subchapter?</heading><content>The purpose of this subchapter is to explain to whom and under what circumstances DFPS may disclose APS case records made confidential under Texas Human Resources Code, §48.101 and §48.102, and Texas Family Code, §261.201.</content><note type="source"><p>Source Note: The provisions of this §705.1901 adopted to be effective February 1, 2021, 46 TexReg 317.</p></note></section><section identifier="/us/state/tx/tac/t40/p19/c705/scS/s705.1903"><num value="705.1903">§705.1903</num><heading>To which investigations does this subchapter apply?</heading><content>This subchapter applies to investigations conducted by APS under Texas Human Resources Code, Chapter 48, and Texas Family Code, §261.404.</content><note type="source"><p>Source Note: The provisions of this §705.1903 adopted to be effective February 1, 2021, 46 TexReg 317.</p></note></section><section identifier="/us/state/tx/tac/t40/p19/c705/scS/s705.1905"><num value="705.1905">§705.1905</num><heading>What definitions apply to this subchapter?</heading><content>The following words and terms have the following meanings unless the context clearly indicates otherwise:(1) Case records--All records described in Texas Human Resources Code, §48.101 or §48.102, which were collected, developed, or used in an abuse, neglect, or financial exploitation investigation, or in providing services as a result of an investigation, and which are under the custody and control of DFPS.(2) Investigation records--That portion of the records described in Texas Human Resources Code, §48.101 or §48.102, which were collected, developed, or used in an abuse, neglect, or financial exploitation investigation and which are under the custody and control of DFPS.</content><note type="source"><p>Source Note: The provisions of this §705.1905 adopted to be effective February 1, 2021, 46 TexReg 317.</p></note></section><section identifier="/us/state/tx/tac/t40/p19/c705/scS/s705.1907"><num value="705.1907">§705.1907</num><heading>Who has the right to obtain all or part of confidential case records maintained by DFPS?</heading><content>(a) Upon request and to the extent required by state or federal law, DFPS makes the case records or portions of case records for a living APS client available after appropriate redactions to the following persons:(1) the APS client;(2) the court appointed guardian of an APS client;(3) an attorney, attorney ad litem, or other court appointed legal representative of an APS client;(4) the APS client's Disability Rights Texas representative;(5) an alleged or designated perpetrator of abuse, neglect, or financial exploitation of an APS client. The perpetrator is only entitled to those portions of the investigation records that relate to the alleged or designated perpetrator; and(6) a person, including a reporter, interviewed as a part of an investigation of abuse, neglect, or financial exploitation. The person is only entitled to that portion of the investigation record that relates to that person's interview.(b) Upon request and to the extent required by state or federal law, DFPS makes the case records or portions of case records for a deceased APS client available after appropriate redactions to the following persons:(1) the legally appointed representative of the deceased APS client's estate;(2) the parents of a deceased APS client with a disability, if parental rights were not terminated and no estate exists requiring the appointment of a legal representative for the deceased APS client, and either:(A) the case records requested relate to events precipitating the death of the APS client; or(B) DFPS determines that the case records should be made available in the interest of justice;(3) a person who was guardian at the time of death of the APS client;(4) the APS client's Disability Rights Texas representative;(5) an alleged or designated perpetrator of abuse, neglect, or financial exploitation of an APS client. The perpetrator is only entitled to those portions of the investigation records that relate to the alleged or designated perpetrator; and(6) a person, including a reporter, interviewed as a part of an investigation of abuse, neglect, or financial exploitation. The person is only entitled to that portion of the investigation record that relates to that person's interview.</content><note type="source"><p>Source Note: The provisions of this §705.1907 adopted to be effective February 1, 2021, 46 TexReg 317.</p></note></section><section identifier="/us/state/tx/tac/t40/p19/c705/scS/s705.1909"><num value="705.1909">§705.1909</num><heading>Are there others who may have access to APS records?</heading><content>DFPS must make case records available after any required redactions to the following persons:(1) local, state, or federal law enforcement officials for the purpose of investigating crimes related to:(A) allegations of abuse, neglect, or financial exploitation of an APS client;(B) allegations of false or malicious reporting of alleged abuse, neglect, or financial exploitation of an APS client; or(C) failure to report alleged abuse, neglect, or financial exploitation of an APS client;(2) local, state, or federal government officials or agencies when:(A) specifically required by law; or(B) DFPS determines case records should be made available in the interest of justice;(3) a court of criminal or civil jurisdiction with a legal matter pending before it, either:(A) arising out of an investigation of abuse, neglect, or financial exploitation of an APS client; or(B) concerning an APS client;(4) persons or agencies when DFPS determines it is necessary to:(A) access services for an APS client;(B) provide services to an APS client;(C) properly meet the needs of an APS client; or(D) protect an APS client; or(5) as otherwise provided by law.</content><note type="source"><p>Source Note: The provisions of this §705.1909 adopted to be effective February 1, 2021, 46 TexReg 317.</p></note></section><section identifier="/us/state/tx/tac/t40/p19/c705/scS/s705.1911"><num value="705.1911">§705.1911</num><heading>When may case records be released under this subchapter?</heading><content>(a) Records may not be released until:(1) the investigation is complete;(2) a proper request has been received, if required; and(3) the records have been properly redacted.(b) Portions of investigation records may be released before completion of an investigation:(1) to law enforcement for investigation of a crime as provided by Texas Human Resources Code, §48.1522; or(2) as necessary for DFPS to seek emergency protective services or emergency legal action for the protection of an APS client.(c) Requests for records will be filled on a priority basis, as provided by §702.223 of this title (relating to How does the department prioritize fulfilling requests for copies of confidential client records that require redaction prior to their release?).</content><note type="source"><p>Source Note: The provisions of this §705.1911 adopted to be effective February 1, 2021, 46 TexReg 317.</p></note></section><section identifier="/us/state/tx/tac/t40/p19/c705/scS/s705.1913"><num value="705.1913">§705.1913</num><heading>When may DFPS withhold records to which the requester is otherwise entitled?</heading><content>(a) Notwithstanding any other provision in this subchapter, DFPS must not disclose any record or information which, if released to the requester, would:(1) interfere with an ongoing criminal investigation or prosecution; or(2) in the judgment of DFPS, the release of that information would endanger the life or safety of any person. DFPS will keep a record of any information not released and must document why the information would be likely to endanger the life or safety of a person. Information withheld from a requester under this subsection, as well as the reason for withholding information under this subsection, must be released only upon a court order pursuant to the provisions in Texas Human Resources Code, §48.101(c).(b) Notwithstanding any other provision in this subchapter, if any party has sued DFPS and DFPS determines that the release of the requested records might interfere with its defense of that litigation, DFPS may require that a requester seek access to records under the appropriate rules of civil procedure rather than this subchapter.</content><note type="source"><p>Source Note: The provisions of this §705.1913 adopted to be effective February 1, 2021, 46 TexReg 317.</p></note></section><section identifier="/us/state/tx/tac/t40/p19/c705/scS/s705.1915"><num value="705.1915">§705.1915</num><heading>What other way may records be accessed?</heading><content>Persons not otherwise authorized to obtain records under this subchapter or through the rules of civil or criminal procedure must obtain a court order using the procedures outlined in Texas Human Resources Code, §48.101.</content><note type="source"><p>Source Note: The provisions of this §705.1915 adopted to be effective February 1, 2021, 46 TexReg 317.</p></note></section><section identifier="/us/state/tx/tac/t40/p19/c705/scS/s705.1917"><num value="705.1917">§705.1917</num><heading>Are records redacted before release?</heading><content>(a) Information is redacted based on the eligibility or entitlement of the requester and whether the requester is entitled to the information by law.(b) With the exception of release to law enforcement and prosecutors as specified in paragraphs §705.1909(1) and (2) of this chapter (relating to Are there others who may have access to APS records?), DFPS must redact case records to remove the name, address, and any other information in the record which reveals the identity of any person as a "reporter." If a person who was a reporter also provided a witness statement or other evidence during the course of the investigation that person's identity as a witness, as well as the information provided by that person in the role of a witness, will be released, provided that any information that might identify that person as the reporter is redacted.(c) DFPS must withhold the release of any records obtained from another source, if the release of that record to this requester is specifically prohibited under state or federal law. Information which may be withheld under this section includes, but is not limited to, the following:(1) all medical records subject to Texas Occupations Code, Chapter 159, unless their release to the requester is authorized by that chapter or other law;(2) non-physician medical records unless their release to the requester is specifically authorized by law;(3) criminal history or arrest records obtained from law enforcement unless their release to the requester is specifically authorized under state and federal law; and(4) adult or juvenile probation records unless their release to the requester is specifically authorized under state and federal law.</content><note type="source"><p>Source Note: The provisions of this §705.1917 adopted to be effective February 1, 2021, 46 TexReg 317.</p></note></section><section identifier="/us/state/tx/tac/t40/p19/c705/scS/s705.1919"><num value="705.1919">§705.1919</num><heading>What are the procedures for requesting access to confidential information?</heading><content>(a) A request for access to case records must be submitted on DFPS's Request for Records form. DFPS may waive the use of this form or may request additional information not included on the form, if appropriate under the circumstances surrounding a particular request.(b) DFPS's Request for Records form provides additional instructions regarding the proper filing of the request and any fees that must be paid to obtain copies of the requested records. The methodology for calculating fees is the same as that used by DFPS when responding to any other request for records for which there is a charge.(c) Upon receipt of a proper request for copies of records, proof of the requester's identity, and a determination that the requester is entitled to have access to those records, DFPS redacts the case records as required, assesses necessary fees, and upon payment, provides copies of the requested records, subject to the exceptions described in this subchapter.</content><note type="source"><p>Source Note: The provisions of this §705.1919 adopted to be effective February 1, 2021, 46 TexReg 317.</p></note></section><section identifier="/us/state/tx/tac/t40/p19/c705/scS/s705.1921"><num value="705.1921">§705.1921</num><heading>Who has access to videotapes, audiotapes, and photographs?</heading><content>(a) Persons authorized under this subchapter or other law to have access to investigation records or case records may view and or listen to any videotapes, audiotapes, or photographs which are a part of the case record. Access to this category of records is permitted in controlled areas, designated by DFPS, at a time mutually convenient to the requester and DFPS. When viewing or listening to these records, the requester may not be accompanied by any person who would not otherwise be entitled to have access to these records, unless DFPS determines the participation of this person is appropriate under the circumstances surrounding the request.(b) Copies of videotapes, audiotapes, and photographs may be provided to the persons or entities by DFPS if provision of a copy is essential to the investigation, prosecution, or resolution of a case. Copies of videotapes, audiotapes, and photographs will not be provided to any other person unless so ordered by a court pursuant to Texas Human Resources Code, §48.101(c).</content><note type="source"><p>Source Note: The provisions of this §705.1921 adopted to be effective February 1, 2021, 46 TexReg 317.</p></note></section><section identifier="/us/state/tx/tac/t40/p19/c705/scS/s705.1923"><num value="705.1923">§705.1923</num><heading>Who receives copies of reports of investigations in schools?</heading><content>(a) DFPS sends a written report of an investigation of alleged abuse, neglect, or financial exploitation of an adult with a disability at school, as appropriate, to the State Board for Educator Certification, the local school board or the school's governing body, and the school principal or director, unless the principal or director is the alleged perpetrator. DFPS edits the report to protect the identity of the reporter.(b) DFPS sends a copy of the report required by subsection (a) of this section to the alleged perpetrator upon request.</content><note type="source"><p>Source Note: The provisions of this §705.1923 adopted to be effective February 1, 2021, 46 TexReg 317.</p></note></section><section identifier="/us/state/tx/tac/t40/p19/c705/scS/s705.1925"><num value="705.1925">§705.1925</num><heading>Do records lose their confidential status when released under Texas Human Resources Code, Chapter 48, or this subchapter?</heading><content>No. The person or entity that obtains confidential case records is responsible by law for proper use of and maintaining the confidentiality of the records. Improper release of records is punishable as a criminal offense under Texas Human Resources Code, §40.005.</content><note type="source"><p>Source Note: The provisions of this §705.1925 adopted to be effective February 1, 2021, 46 TexReg 317.</p></note></section></subchapter></chapter><chapter identifier="/us/state/tx/tac/t40/p19/c707"><num value="707">CHAPTER 707</num><heading>CHILD PROTECTIVE INVESTIGATIONS</heading><subchapter identifier="/us/state/tx/tac/t40/p19/c707/scA"><num value="A">SUBCHAPTER A</num><heading>INVESTIGATIONS</heading><section identifier="/us/state/tx/tac/t40/p19/c707/scA/s707.447"><num value="707.447">§707.447</num><heading>What do the following pronouns mean when used in this division?</heading><content>The following words have the following meanings when used in this division:(1) I, my, you, and your--A person being investigated by the Investigations program for allegations of child abuse or neglect unless otherwise stated or the context clearly indicates otherwise.(2) We, us, and our--The Investigations program of the Child Protective Investigations division of the Texas Department of Family and Protective Services unless otherwise stated or the context clearly indicates otherwise.</content><note type="source"><p>Source Note: The provisions of this §707.447 adopted to be effective July 15, 2020, 45 TexReg 4780.</p></note></section><section identifier="/us/state/tx/tac/t40/p19/c707/scA/s707.449"><num value="707.449">§707.449</num><heading>What is the purpose of this division?</heading><content>The purpose of this division is to describe procedures for the report, investigation, and review of reports alleging abuse and neglect of a child by a person responsible for the child's care, custody, or welfare. In addition, the rules relating to the definitions of abuse and neglect are intended to further supplement and clarify the statutory definitions of abuse and neglect in Texas Family Code §261.001.</content><note type="source"><p>Source Note: The provisions of this §707.449 adopted to be effective July 15, 2020, 45 TexReg 4780.</p></note></section><section identifier="/us/state/tx/tac/t40/p19/c707/scA/s707.451"><num value="707.451">§707.451</num><heading>What terms and definitions are used in reports, investigations, and assessments of abuse and neglect?</heading><content>(a) The following terms have the following meanings when used in this subchapter:(1) An absent parent or non-custodial parent--a parent who, at the time of the occurrence of the conduct which is the basis for the investigation, does not have actual possession or control of the child and is not primarily responsible for the child's care because of any of the following:(A) Divorce;(B) Separation;(C) Incarceration; or(D) Any other reason that results in the parent not having actual possession or control and primary responsibility of the child.(2) Accident--an unforeseen, unexpected, or unplanned act or event that occurs unintentionally and causes or threatens physical injury despite exercising the care and diligence that a reasonable and prudent person would exercise under similar circumstances to avoid the risk of injury.(3) Blatant disregard--the real and significant harm or threat of harm to the child as a result of the person's act(s) or omission(s):(A) Would have been obvious to a reasonable person in the same situation; and(B) The reasonable person would have known to take precautionary measures to protect the child from the impending harm.(4) Child--person under 18 years of age who is not and has not been married or who has not had the disabilities of minority removed for general purposes.(5) Child safety--the absence of danger or the presence of protective actions demonstrated over time by a parent or caregiver that mitigates dangers to the child.(6) Danger--behaviors or conditions that place a child in imminent danger of serious harm.(7) Day--calendar day unless otherwise specified.(8) Guardian--anyone named as "guardian of the person of a child" by a probate court order.(9) Household--(A) A unit composed of persons living together in the same dwelling, whether or not they are related to each other, when the dwelling consists of:(i) The child's family's household, including the households of both parents when the parents reside separately;(ii) A household in which the parent has arranged for or authorized placement of the child; or(iii) A household in which the child is legally placed by a parent or a court.(B) During the receipt and investigation of reports of child abuse and neglect, we treat an unrelated person who resides elsewhere or whose place of residence cannot be determined as a member of the household if the person is at least 10 years old and either:(i) Has regular free access to the household; or(ii) When in the household dwelling takes care of or assumes responsibility for children in the household.(10) Immediate danger to child's physical health or safety--the person's act(s) or omission(s) placed the child in a situation that has resulted in or would have resulted in physical or mental harm to the child.(11) Investigations--a program of the Child Protective Investigations division of the Texas Department of Family and Protective Services that investigates allegations of child abuse and neglect by a person responsible for the child's care, custody, or welfare as defined in Texas Family Code §261.001(5)(A)-(C).(12) Managing or possessory conservator--a person legally responsible for a child as the result of a court order.(13) Parent--the mother, a man presumed to be the biological father or who has been adjudicated to be the biological father by a court of competent jurisdiction, or an adoptive mother or father. The term does not include a parent as to whom the parent-child relationship has been terminated.(14) Preponderance of evidence--evidence which is of greater weight or more convincing than the evidence which is offered in opposition to it; that is, evidence which as a whole shows that the fact sought to be proved is more probable than not.(15) Protective actions--specific actions that have been taken by an individual or family to directly address the danger of abuse and neglect and are demonstrated over time.(16) Reasonable effort to prevent--actions that a person responsible for a child's care, custody, or welfare would have taken to protect a child from abuse the person knew or reasonably should have known was occurring. It is not required for that person to have directly perpetrated the abuse.(17) Reporter--an individual who makes a report to the Texas Department of Family and Protective Services or a duly constituted law enforcement agency alleging the abuse or neglect of a child. If more than one individual makes a report alleging abuse or neglect of the same child, all such individuals shall have the designation of a reporter.(18) Risk factors--elements of individual and family functioning that may place a child at risk of abuse or neglect.(19) Risk of child abuse or neglect--a reasonable likelihood that in the foreseeable future there will be an occurrence of child abuse or neglect as defined in Texas Family Code (TFC) §261.001. The presence of risk does not constitute abuse or neglect as defined in TFC §261.001 but qualifies children and families to receive protective services as specified in §700.311(a)(1), subchapter C, chapter 700, of this title (relating to Eligible Individuals).(20) Strengths--resources and conditions of an individual or the family that increase the likelihood or ability to protect a child from abuse or neglect but do not fully address the danger to the child.(21) Substantial harm--real and significant physical injury or damage to a child.(22) Substantial risk--a real and significant possibility or likelihood.(b) Terms not defined in this subchapter have the meaning given in the Texas Family Code, including definitions in Chapter 101 and §261.001, Texas Family Code, and other relevant law, or their ordinary meaning if not defined in law.</content><note type="source"><p>Source Note: The provisions of this §707.451 adopted to be effective July 15, 2020, 45 TexReg 4780; amended to be effective September 22, 2022, 47 TexReg 6250.</p></note></section><section identifier="/us/state/tx/tac/t40/p19/c707/scA/s707.453"><num value="707.453">§707.453</num><heading>What is emotional abuse?</heading><content>(a) Emotional abuse is a subset of the statutory definitions of abuse that appear in Texas Family Code §261.001(1) and includes the following acts or omissions by a person:(1) Mental or emotional injury to a child that results in an observable and material impairment in the child's growth, development, or psychological functioning;(2) Causing or permitting the child to be in a situation in which the child sustains a mental or emotional injury that results in an observable and material impairment in the child's growth, development, or psychological functioning; or(3) The current use by a person of a controlled substance as defined by Chapter 481, Health and Safety Code, in a manner or to the extent that the use results in mental or emotional injury to a child.(b) In this section, the following terms have the following meanings:(1) "Mental or emotional injury" means:(A) That a child of any age experiences significant or serious negative effects on intellectual or psychological development or functioning. Although the child does not have to experience physical injury or be diagnosed by a medical or mental health professional in order for us to determine that the child suffers from a mental or emotional injury, when assessing the child, we will consult with professional collaterals outside of the Texas Department of Family and Protective Services that have witnessed and validated that the child is exhibiting behaviors indicative of observable and material impairment as specified in paragraph (2) of this subsection. When the mental or emotional injury involves exposure to domestic violence, we will consult with professional collaterals that have documented expertise or training in the dynamics of domestic violence, whenever possible.(B) For purposes of paragraph (3) of subsection (a), "mental or emotional injury" resulting from a person's current use of a controlled substance includes a child of any age experiencing interference with normal psychological development, functioning, or emotional or mental stability, as evidenced by an observable and substantial change in behavior, emotional response, or cognition, related to the person's current use of a controlled substance.(2) "Observable and material impairment" means discernible and substantial damage or deterioration to a child's emotional, social, and cognitive development. It may include but is not limited to depression; anxiety; panic attacks; suicide attempts; compulsive and obsessive behaviors; acting out or exhibiting chronic or acute aggressive behavior directed toward self or others; withdrawal from normal routine and relationships; memory lapse; decreased concentration; difficulty or inability to make decisions; or a substantial and observable change in behavior, emotional response, or cognition.</content><note type="source"><p>Source Note: The provisions of this §707.453 adopted to be effective July 15, 2020, 45 TexReg 4780.</p></note></section><section identifier="/us/state/tx/tac/t40/p19/c707/scA/s707.455"><num value="707.455">§707.455</num><heading>What is physical abuse?</heading><content>(a) Physical abuse is a subset of the statutory definitions of abuse that appear in Texas Family Code §261.001(1) and includes the following acts or omissions by a person:(1) Physical injury that results in substantial harm to the child, or the genuine threat of substantial harm from physical injury to the child, including an injury that is at variance with the history or explanation given and excluding an accident or reasonable discipline by a parent, guardian, or managing or possessory conservator that does not expose the child to a substantial risk of harm;(2) Failure to make a reasonable effort to prevent an action by another person that results in physical injury that results in substantial harm to the child;(3) The current use by a person of a controlled substance as defined by Chapter 481, Health and Safety Code, in a manner or to the extent that the use results in physical injury to a child; or(4) Causing, expressly permitting, or encouraging a child to use a controlled substance as defined by Chapter 481, Health and Safety Code.(b) In this section, the following terms have the following meanings:(1) "Genuine threat of substantial harm from physical injury" means declaring or exhibiting the intent or determination to inflict real and significant physical injury or damage to a child. The declaration or exhibition does not require actual physical contact or injury. It includes but is not limited to the following acts or attempt to commit the following acts: strangling as defined in §22.01(b)(2)(B), Texas Penal Code; suffocating; shaking; hitting a child on the head; hitting, kicking, or punching a child's body parts or organs; throwing a child; throwing an object at a child; stabbing; shooting; or otherwise committing a violent act against a child.(2) "Physical injury that results in substantial harm to the child" means real and significant physical injury or damage to a child that includes but is not limited to:(A) Any of the following, if caused by an action of the alleged perpetrator directed toward the alleged victim: substantial or frequent skin bruising; substantial cuts, welts, lacerations, or pinch marks; skull or other bone fractures; damage to cartilage; brain damage; subdural hematoma; soft tissue swelling; impairment of or injury to any bodily organ or function; any other internal injury otherwise not specified; permanent or temporary disfigurement; burns; scalds; wounds, including puncture wounds; bite marks; causing or permitting a child to consume or inhale a poisonous or noxious substance that has the capacity to interfere with normal physiological functions; exposing a child to dangerous chemicals; starvation; concussions; dislocations; sprains; subjecting a child to Munchausen syndrome by proxy or a fictitious illness by proxy if the incident is confirmed by medical personnel; death; or any other cruel act that causes pain or suffering to the child.(B) Any of the following conditions that occur in an infant under the age of one because of the mother's prenatal use of alcohol or a controlled substance that was not lawfully prescribed by a medical practitioner, was lawfully prescribed as a result of the mother seeking out multiple health care providers as a means of exceeding ordinary dosages, or was not being used in accordance with a lawfully issued prescription, if the mother knew or reasonably should have known she was pregnant:(i) A physician's written diagnosis of physical manifestations of Fetal Alcohol Syndrome or Fetal Alcohol Effect, which includes Alcohol-Related Birth Defects and Alcohol Related Neurodevelopmental Disorder;(ii) A physician's written opinion that the newborn was harmed from in utero exposure to alcohol or a controlled substance; or(iii) A physician's diagnosis of Neonatal Abstinence Syndrome.(C) Any of the following physical injuries to a child of any age caused by a person's use of a controlled substance other than prenatal use: illness; interference with normal physiological functions or motor coordination; or any other physical harm related to the person's current use, manufacture, or possession of the controlled substance.(3) "Reasonable discipline" means discipline that is reasonable in manner and moderate in degree; does not constitute cruelty, reckless behavior, or grossly negligent behavior; and is administered for purposes of restraining or correcting the child. It shall not include an act that is likely to cause or causes injury more serious than transient pain or minor temporary marks. The age, size, and condition of the child; the location of the injury; and the frequency or recurrence of injuries shall be considered when determining whether the discipline is reasonable and moderate.</content><note type="source"><p>Source Note: The provisions of this §707.455 adopted to be effective July 15, 2020, 45 TexReg 4780.</p></note></section><section identifier="/us/state/tx/tac/t40/p19/c707/scA/s707.457"><num value="707.457">§707.457</num><heading>What is sexual abuse?</heading><content>(a) Sexual abuse is a subset of the statutory definitions of abuse that appear in Texas Family Code §261.001(1) and includes the following acts or omissions by a person:(1) Sexual conduct harmful to a child's mental, emotional, or physical welfare, including:(A) Conduct that constitutes the offense of continuous sexual abuse of young child or disabled individual under §21.02, Penal Code;(B) Indecency with a child under §21.11, Penal Code;(C) Sexual assault under §22.011, Penal Code; or(D) Aggravated sexual assault under §22.021, Penal Code;(2) Failure to make a reasonable effort to prevent sexual conduct harmful to a child;(3) Compelling or encouraging the child to engage in sexual conduct as defined by §43.01, Penal Code, including compelling or encouraging the child in a manner that constitutes an offense of:(A) Trafficking of persons under §20A.02(a)(7) or (8), Penal Code;(B) Solicitation of prostitution under §43.021, Penal Code; or(C) Compelling prostitution under §43.05(a)(2), Penal Code;(4) Causing, permitting, encouraging, engaging in, or allowing the photographing, filming, or depicting of the child if the person knew or should have known that the resulting photograph, film, or depiction of the child is obscene as defined by §43.21, Penal Code, or pornographic; or(5) Causing, permitting, encouraging, engaging in, or allowing a sexual performance by a child as defined by §43.25, Penal Code.(b) In this section, the following terms have the following meanings:(1) "Causing, permitting, encouraging, engaging in, or allowing the photographing...." is a condition of the statutory definition of sexual abuse. It is met even if the child participates voluntarily.(2) "Compelling or encouraging the child to engage in sexual conduct...." is a condition of the statutory definition of sexual abuse. It is met whether the child actually engages in sexual conduct or simply faces a substantial risk of doing so.(3) "Pornographic" or "pornography" means material that visually depicts a child younger than 18 years of age at the time the image of the child was made who is engaging in sexual conduct in accordance with Texas Penal Code §43.26.(4) "Sexual conduct harmful to a child's mental, emotional or physical welfare" includes but is not limited to rape; incest; sodomy; inappropriate touching of the child's anus, breast, or genitals, including touching under or on top of the child's clothing; deliberately exposing one's anus, breast, or any part of the genitals to a child; touching the child in a sexual manner or directing sexual behavior towards the child; showing pornography to a child; encouraging a child to watch or hear sexual acts; compelling, encouraging, or permitting a child to engage in prostitution; watching a child undress, shower, or use the bathroom with the intent to arouse or gratify one's sexual desire; voyeurism; sexually oriented acts, which may or may not include sexual contact or touching with intent to arouse or gratify the sexual desire of any person; and any sexually oriented act or practice that would cause a reasonable child under the same circumstance to feel uncomfortable or intimidated or that results in harm or substantial risk of harm to a child's growth, development, or psychological functioning.(c) For purposes of subsection (a)(1)(A) of this section, we will investigate conduct that constitutes continuous sexual abuse of a child as long the child is under 18 years of age and regardless of any disabilities the child may have.</content><note type="source"><p>Source Note: The provisions of this §707.457 adopted to be effective July 15, 2020, 45 TexReg 4780; amended to be effective September 22, 2022, 47 TexReg 6250.</p></note></section><section identifier="/us/state/tx/tac/t40/p19/c707/scA/s707.459"><num value="707.459">§707.459</num><heading>What is labor trafficking?</heading><content>(a) Labor trafficking is a subset of the statutory definitions of abuse that appear in Texas Family Code §261.001(1) and includes the following acts or omissions by a person:(1) Knowingly causing, permitting, encouraging, engaging in, or allowing a child to be trafficked in a manner punishable as an offense under §20A.02(a)(5) or (6), Penal Code; or(2) The failure to make a reasonable effort to prevent a child from being trafficked in a manner punishable as an offense under §20A.02(a)(5) or (6), Penal Code.(b) In this section, the following terms have the following meanings:(1) "Labor trafficking" means enticing, recruiting, harboring, transporting, enslaving, or providing to others or obtaining for oneself a child for labor or services through force, fraud, coercion, or exploitation. It involves giving or receiving monetary or nonmonetary remuneration, including the child's services, and a pervasive loss of freedom for the child.(A) When determining whether a child is a victim of labor trafficking, we evaluate the totality of circumstances, including but not limited to evidence that the child is being controlled by threats of deportation or physical or other types of harm to the child or the child's family; evidence of withholding or destroying of the child's legal documents; causing the child or child's family to become indebted to the trafficker; restricting the child's movement, communication, or ability to live a normal life; the detrimental nature of the work to the health, safety, or well-being of the child; or using physical, verbal or sexual intimidation or other types of manipulation to cause the child to feel helpless or in fear of the trafficker.(B) Labor trafficking does not include normal contribution to family and community life in light of prevailing community standards, such as performing chores inside and outside of the house, being required to work in the family business without pay, working in agriculture or farming as part of the family's business or means of earning a living, or other forms of labor or services specified under Texas Labor Code §51.003.(2) "Knowingly causing, permitting, encouraging, engaging in, or allowing..." is a condition of the statutory definition of labor trafficking. It is met whether the child actually engages in forced labor or services or simply faces a substantial risk of doing so.</content><note type="source"><p>Source Note: The provisions of this §707.459 adopted to be effective July 15, 2020, 45 TexReg 4780.</p></note></section><section identifier="/us/state/tx/tac/t40/p19/c707/scA/s707.461"><num value="707.461">§707.461</num><heading>What is sex trafficking?</heading><content>(a) Sex trafficking is a subset of the statutory definitions of abuse that appear in Texas Family Code §261.001(1) and includes the following acts or omissions by a person:(1) Knowingly causing, permitting, encouraging, engaging in, or allowing a child to be trafficked in a manner punishable as an offense under §20A.02(a)(7) or (8), Penal Code; or(2) The failure to make a reasonable effort to prevent a child from being trafficked in a manner punishable as an offense under §20A.02(a)(7) or (8), Penal Code.(b) In this section "sex trafficking" means enticing, luring, recruiting, harboring, transporting, enslaving, selling, or holding captive a child for sexual conduct specified in §20A.02(a)(7), Penal Code. It involves giving or receiving monetary or nonmonetary remuneration, including the child's sexual services, and a pervasive loss of freedom for the child.(c) Sex trafficking does not require force, fraud, or coercion and occurs even if it appears that the child is in agreement with the conduct or the child does not consider herself or himself to be a victim of sex trafficking.(d) When determining whether a child is a victim of sex trafficking, we evaluate the totality of circumstances, including but not limited to evidence that the child is being controlled by threats of deportation or physical or other types of harm to the child or the child's family; evidence of withholding or destroying of the child's legal documents; causing the child or child's family to become indebted to the trafficker; restricting the child's movement, communication, or ability to live a normal life; or using physical, verbal, or other types of intimidation or manipulation to cause the child to feel helpless or in fear of the trafficker.</content><note type="source"><p>Source Note: The provisions of this §707.461 adopted to be effective July 15, 2020, 45 TexReg 4780.</p></note></section><section identifier="/us/state/tx/tac/t40/p19/c707/scA/s707.463"><num value="707.463">§707.463</num><heading>What is forced marriage?</heading><content>Forced marriage is a subset of the statutory definitions of abuse that appear in Texas Family Code §261.001(1) and includes the following act or omission by a person: forcing or coercing a child to enter into a marriage.</content><note type="source"><p>Source Note: The provisions of this §707.463 adopted to be effective July 15, 2020, 45 TexReg 4780.</p></note></section><section identifier="/us/state/tx/tac/t40/p19/c707/scA/s707.465"><num value="707.465">§707.465</num><heading>What is abandonment?</heading><content>Neglect is defined in Texas Family Code (TFC) §261.001(4) as an act or failure to act by a person responsible for a child's care, custody, or welfare evidencing the person's blatant disregard for the consequences of the act or failure to act that results in harm to the child or that creates an immediate danger to the child's physical health or safety. Abandonment is a subset of the statutory definition of neglect and involves leaving a child in a situation where the child would be exposed to an immediate danger of physical or mental harm, without arranging for necessary care for the child, and the demonstration of an intent not to return by a parent, guardian, or managing or possessory conservator of the child.</content><note type="source"><p>Source Note: The provisions of this §707.465 adopted to be effective July 15, 2020, 45 TexReg 4780; amended to be effective September 22, 2022, 47 TexReg 6250.</p></note></section><section identifier="/us/state/tx/tac/t40/p19/c707/scA/s707.467"><num value="707.467">§707.467</num><heading>What is neglectful supervision?</heading><content>(a) Neglect is defined in Texas Family Code (TFC) §261.001(4) as an act or failure to act by a person responsible for a child's care, custody, or welfare evidencing the person's blatant disregard for the consequences of the act or failure to act that results in harm to the child or that creates an immediate danger to the child's physical health or safety. Neglectful supervision is a subset of the statutory definition of neglect and involves the following acts or omissions by a person:(1) Placing a child in or failing to remove a child from a situation that a reasonable person would realize requires judgment or actions beyond the child's level of maturity, physical condition, or mental abilities and that results in bodily injury or an immediate of harm to the child;(2) Placing a child in or failing to remove the child from a situation in which the child would be exposed to an immediate danger of sexual conduct harmful to the child; or(3) Placing a child in or failing to remove the child from a situation in which the child would be exposed to acts or omissions that constitute abuse under TFC §261.001(1)(E), (F), (G), (H), or (K) committed against another child.(b) Neglectful supervision as defined in paragraph (1) of subsection (a) excludes the following:(1) An accident.(2) Pursuant to TFC §261.001(4)(B), allowing the child to engage in independent activities that are appropriate and typical for the child's level of maturity, physical condition, developmental abilities or culture.(c) For purposes of evaluating an allegation of "neglectful supervision", we will consider the following factors when assessing immediate danger:(1) The child's age;(2) Any arrangements the parents made to ensure the child's safety;(3) The child's physical condition, psychological functioning, and level of maturity;(4) Any intellectual, physical, or medical disability the child has;(5) Any previous history or patterns of abuse or neglect;(6) The frequency and duration of similar incidents; and(7) The overall safety of the child's environment.(d) In the case of prenatal use of alcohol or a controlled substance that was not lawfully prescribed by a medical practitioner, was lawfully prescribed as a result of the mother seeking out multiple health care providers as a means of exceeding ordinary dosages, or was not being used in accordance with a lawfully issued prescription, the mother is responsible for neglectful supervision under paragraph (1) of subsection (a) if:(1) The mother knew or reasonably should have known she was pregnant; and(2) It appears that the mother's use endangered the physical and emotional well-being of the infant. It is not necessary that the infant actually suffers from an injury.(A) For the limited purpose of this subsection, "endangered" means that the mother's prenatal use exposed the infant to loss or injury or jeopardized the infant's emotional or physical health.(B) "Endangered" includes but is not limited to a consideration of the following factors: evidence the mother extensively used alcohol or regularly or extensively used a controlled substance over the course of the pregnancy or in close proximity to the child's expected birth date, evidence that the mother has an alcohol or drug addiction, or evidence that the infant was in immediate danger of harm from the mother's use of alcohol or a controlled substance.</content><note type="source"><p>Source Note: The provisions of this §707.467 adopted to be effective July 15, 2020, 45 TexReg 4780; amended to be effective September 22, 2022, 47 TexReg 6250.</p></note></section><section identifier="/us/state/tx/tac/t40/p19/c707/scA/s707.469"><num value="707.469">§707.469</num><heading>What is medical neglect?</heading><content>(a) Neglect is defined in Texas Family Code (TFC) §261.001(4) as an act or failure to act by a person responsible for a child's care, custody, or welfare evidencing the person's blatant disregard for the consequences of the act or failure to act that results in harm to the child or that creates an immediate danger to the child's physical health or safety. Medical neglect is a subset of the statutory definition of neglect and involves the following acts or omissions by a person: failing to seek, obtain, or follow through with medical care for a child, with the failure resulting in or presenting an immediate danger of death, disfigurement, or bodily injury or with the failure resulting in an observable and material impairment to the growth, development, or functioning of the child.(b) In this section, the following terms have the following meanings:(1) For purposes of this section, "observable and material impairment" means discernible and substantial damage or deterioration to the child's health or physical condition, including severe pain or injury, caused by failure to seek medical attention for obvious signs of serious illness, failure to follow the advice of a medical professional, or failure to administer necessary medical care required for a child's specific health condition.(2) When determining if medical neglect has occurred, we will consider the person's pattern of failing or refusing to follow through with medical care, the severity of the condition, any pain the child is experiencing from lack of medical care, the possible impact of non-treatment, and the length of time the condition has persisted. (3) Medical neglect does not include the following:(A) Pursuant to TFC §261.111, the mere refusal to administer or consent to the administration of psychotropic medication or consent to any other psychiatric or psychological treatment if the failure does not result in substantial risk of death, disfigurement, or bodily injury or an observable and material impairment to the child's growth, development, or functioning;(B) Pursuant to TFC §261.001(4)(B), a decision to obtain an opinion from more than one medical provider relating to the child's medical care, transfer the child's medical care to a new provider, or transfer the child to another health care facility; or(C) A parent or guardian's refusal to provide a child with specific medical treatment because of a legitimately held religious belief. However, we may still request a court order to provide medical services if the child's health requires it and will investigate allegations of lack of medical care because of religious beliefs if the child's condition appears to involve medical neglect.</content><note type="source"><p>Source Note: The provisions of this §707.469 adopted to be effective July 15, 2020, 45 TexReg 4780; amended to be effective September 22, 2022, 47 TexReg 6250.</p></note></section><section identifier="/us/state/tx/tac/t40/p19/c707/scA/s707.471"><num value="707.471">§707.471</num><heading>What is physical neglect?</heading><content>(a) Neglect is defined in Texas Family Code (TFC) §261.001(4) as an act or failure to act by a person responsible for a child's care, custody, or welfare evidencing the person's blatant disregard for the consequences of the act or failure to act that results in harm to the child or that creates an immediate danger to the child's physical health or safety. Physical neglect is a subset of the statutory definition of neglect and involves the following acts or omissions by a person: the failure to provide a child with food, clothing, or shelter necessary to sustain the life or health of the child, excluding failure caused primarily by financial inability unless relief services had been offered and refused.(b) In this section, the following terms have the following meanings:(1) "...necessary to sustain the life or health of the child ...." is a condition of the statutory definition of physical neglect and is met if the failure to provide food, clothing, or shelter results in an observable and material impairment to the child's growth, development, or functioning, or in an immediate danger of an observable and material impairment. For purposes of this paragraph, "observable and material impairment" means discernible and substantial damage or deterioration to the child's health or physical condition. It may include but is not limited to malnourishment; sudden or extreme weight loss; serious skin conditions or skin breakdown; serious illness or other serious medical conditions; or any other serious physical harm to the child as a direct result of the physical neglect.(2) "Relief services" means both public and private services, including but not limited to services provided through the government, community agencies, volunteer organizations, relatives, friends, neighbors, etc., that are intended to improve the overall well-being and physical condition of the family. The services must be affordable, reasonable, readily available, and appropriate to meet the needs of the family. It is not necessary that the relief services be provided by us.(c) Evidence of physical neglect may include but is not limited to the following if they endanger the life or health of the child: unsound or decaying walls, ceiling, floors, or stairways; ineffective or faulty heating, cooling, or ventilation systems; inadequate, faulty, or broken plumbing including contaminated water; broken windows, mirrors or other glass; dangerous sleeping arrangements; the existence of dangerous bacteria or germs; nonexistent or ineffective waste disposal; dangerous food storage; fecal contamination or excessive animal feces throughout the house; untreated infestations such as fleas, roaches, or rodents; significant and uncontrolled mildew and mold; dirt buildup that is likely to cause bacteria and viruses in the dwelling; and hazardous junk material or appliances left unsecured and within easy access to the child.</content><note type="source"><p>Source Note: The provisions of this §707.471 adopted to be effective July 15, 2020, 45 TexReg 4780; amended to be effective September 22, 2022, 47 TexReg 6250.</p></note></section><section identifier="/us/state/tx/tac/t40/p19/c707/scA/s707.473"><num value="707.473">§707.473</num><heading>What is refusal to assume parental responsibility (RAPR)?</heading><content>(a) Neglect is defined in Texas Family Code (TFC) §261.001(4) as an act or failure to act by a person responsible for a child's care, custody, or welfare evidencing the person's blatant disregard for the consequences of the act or failure to act that results in harm to the child or that creates an immediate danger to the child's physical health or safety. RAPR is a subset of the statutory definition of neglect and involves the following acts or omissions by a person: the failure by the person responsible for a child's care, custody, or welfare to permit the child to return to the child's home without arranging for the necessary care for the child after the child has been absent from the home for any reason, including having been in residential placement or having run away.(b) We will not make a finding of abuse or neglect against you and will not put your name on the child abuse and neglect central registry described in subchapter C, chapter 702, of this title (relating to Child Abuse and Neglect Central Registry) if you refuse to permit the child to remain in or return to the child's home because:(1) The child has a severe emotional disturbance;(2) The refusal is based solely on your inability to obtain mental health services necessary to protect the safety and well-being of the child; and(3) You have exhausted all reasonable means available to you to obtain the mental health services described above.(c) In this subsection, the term severe emotional disturbance means a mental, behavioral, or emotional disorder of sufficient duration to result in functional impairment that substantially interferes with or limits a person's role or ability to function in family, school, or community activities as defined in Texas Family Code §261.001(9). We consider a child to have a severe emotional disturbance when a licensed mental health professional has given the child a mental health diagnosis that:(1) Is recognized by the current version of the Diagnostic and Statistical Manual of Mental Disorders. Examples of mental health diagnoses that are consistent with severe emotional disturbance include, but are not limited to, Bipolar, Post-Traumatic Stress Disorder, Disruptive Mood Dysregulation Disorder, Conduct Disorder, Depression, Emotionally Disturbed, Mood Disorder, Oppositional Defiant Disorder, Psychotic Disorder, and Reactive Attachment Disorder; and(2) Results in severe mental, behavioral, or emotional impairment(s) in functioning such that the child poses a danger to him or herself or others, or a licensed mental health professional has determined the child needs inpatient mental health or residential treatment.(d) When determining whether the refusal to permit a child to remain in or return to the child's home was based solely on your inability to obtain mental health services necessary to protect the safety and well-being of the child and whether you exhausted all reasonable means available to obtain mental health services and prevent the removal of the child, we will consider factors including, but not limited to, the following:(1) The reasons you were unable to access appropriate mental health treatment to meet the child's needs, such as your financial resources, the lack of appropriate services available in the community, or other reasons.(2) Whether you followed recommendations of the mental health professionals who have treated the child, including complying with recommendations about actions you need to take, or, if in disagreement with a professional, whether you discussed with the professional concerns regarding recommendations, or sought out other mental health professionals for assistance or treatment, to the extent reasonable and practicable.(3) Whether the present need for mental health services is necessary to protect the safety and well-being of the child unrelated to any recent incident of abuse or neglect.(e) We will review records in the central registry and remove your name if you were included in the central registry when the Texas Department of Family and Protective Services was named managing conservator of your child who has a severe emotional disturbance solely, so you could obtain mental health services for the child.</content><note type="source"><p>Source Note: The provisions of this §707.473 adopted to be effective July 15, 2020, 45 TexReg 4780; amended to be effective September 22, 2022, 47 TexReg 6250.</p></note></section><section identifier="/us/state/tx/tac/t40/p19/c707/scA/s707.477"><num value="707.477">§707.477</num><heading>When do we make a finding of emotional abuse, physical abuse, or neglectful supervision against a person responsible for a child's care, custody, or welfare in an investigation involving domestic violence?</heading><content>(a) If you are a victim of domestic violence, we will not make a finding of abuse or neglect against you solely because the domestic violence was committed in close physical proximity to the child. If the child is at risk of bodily injury or substantial risk of physical, mental, or emotional harm due solely to the violence committed against you, we will make a finding against you for failing to remove the child from that risk of harm only if, after considering the totality of the circumstances, we determine:(1) you failed to take advantage of services or supports that would have protected the child;(2) the services or supports were known to you; and(3) the services or supports were reasonably available to you in the past or made available during the course of the investigation.(b) If you are a perpetrator of domestic violence we will make a finding of abuse or neglect against you if you engage in conduct that is described by any of the definitions of abuse or neglect in this division. In particular, we will make a finding of neglectful supervision if you commit the act in such close physical proximity to the child that the child's location and the level of violence reasonably places the child at risk of bodily injury or substantial risk of immediate harm.</content><note type="source"><p>Source Note: The provisions of this §707.477 adopted to be effective July 15, 2020, 45 TexReg 4780.</p></note></section><section identifier="/us/state/tx/tac/t40/p19/c707/scA/s707.481"><num value="707.481">§707.481</num><heading>What are our responsibilities in receiving reports of child abuse and neglect?</heading><content>(a) The Statewide Intake division of the Texas Department of Family and Protective Services (DFPS) receives reports of child abuse and neglect 24 hours a day, seven days a week.(b) DFPS must assist the public in understanding what to report and which protective interventions are available in response. If a report clearly does not involve child abuse or neglect or risk of abuse or neglect, DFPS may provide information and refer the reporter to other community services to help the child and family.</content><note type="source"><p>Source Note: The provisions of this §707.481 adopted to be effective July 15, 2020, 45 TexReg 4780.</p></note></section><section identifier="/us/state/tx/tac/t40/p19/c707/scA/s707.483"><num value="707.483">§707.483</num><heading>Are there certain allegations we do not classify as reports of abuse or neglect?</heading><content>(a) We will not classify reports about the following types of circumstances as allegations of abuse or neglect or risk of abuse or neglect:(1) Truancy. Voluntary absence from school without a valid excuse.(2) Runaway. A child who is voluntarily absent from the home without the consent of the parent or guardian.(3) Children in need of supervision (CHINS). Children from ages 10 to 17 who are before a juvenile court for offenses under the Texas Family Code, §51.03(b).(4) Latch-key children. School-age children left unattended part of the day, whose parents have taken appropriate precautions to assure the children's safety; and(5) Harmful or violent children. Children who harm or commit violent acts against other children but are not members of the alleged victim's family or household, and who are not themselves abused or neglected.(b) Notwithstanding subsection (a) of this section, if there are allegations in the report that otherwise meet the definition of abuse or neglect, we will investigate those allegations in accordance with this division.</content><note type="source"><p>Source Note: The provisions of this §707.483 adopted to be effective July 15, 2020, 45 TexReg 4780.</p></note></section><section identifier="/us/state/tx/tac/t40/p19/c707/scA/s707.485"><num value="707.485">§707.485</num><heading>What are the timeframes within which we must respond to a report of child abuse or neglect assigned for investigation?</heading><content>(a) The Texas Department of Family and Protective Services assigns priorities for reports of abuse and neglect based on the assessment of the immediacy of the risk and the severity of the possible harm to the child. Prior to initiating an investigation, we will review the intake report to determine if the initial priority and action recommended is appropriate or must be updated.(1) Priority I reports concern children who appear to face an immediate risk of abuse or neglect that could result in death or serious harm.(2) Priority II reports are all other reports of abuse or neglect that are not assigned a Priority I.(b) Subject to the availability of funds, we must:(1) Immediately respond to a report of abuse or neglect that is assigned a Priority I and involves circumstances in which the death of the child or substantial bodily harm to the child will imminently result unless we immediately intervene;(2) Within 24 hours respond to a report of abuse or neglect that is assigned a Priority I, other than a report described in paragraph (1) of this subsection, by initiating an investigation; and(3) Within 72 hours respond to a report of abuse or neglect that is assigned a Priority II by initiating an investigation or, pursuant to Texas Family Code §261.3015, by forwarding the report to specialized screening staff.</content><note type="source"><p>Source Note: The provisions of this §707.485 adopted to be effective July 15, 2020, 45 TexReg 4780.</p></note></section><section identifier="/us/state/tx/tac/t40/p19/c707/scA/s707.487"><num value="707.487">§707.487</num><heading>Do we notify law enforcement of all reports received of child abuse or neglect?</heading><content>Yes. We must notify appropriate law enforcement agencies of reports of child abuse or neglect within the following time frames:(1) Within 24 hours of receiving a priority I report, a sexual abuse report, or a report alleging abuse or neglect in a public or private school. The initial notification may be provided using a method that is mutually agreed upon between DFPS and the law enforcement agency. This deadline applies even if subsequent information shows that the report is unfounded or does not qualify for priority I treatment. If we provide the initial notification orally, we must also provide a written notification within three days after receiving the report.(2) We must send a written notification of all other reports within three days of receiving them.(3) Reports submitted electronically are considered written notification for purposes of this section.</content><note type="source"><p>Source Note: The provisions of this §707.487 adopted to be effective July 15, 2020, 45 TexReg 4780.</p></note></section><section identifier="/us/state/tx/tac/t40/p19/c707/scA/s707.489"><num value="707.489">§707.489</num><heading>How do we respond to reports of child abuse or neglect?</heading><content>(a) When the Statewide Intake (SWI) division of the Texas Department of Family and Protective Services (DFPS) receives a report of alleged abuse or neglect of a child, we may respond with any of the following protective interventions, as further described in this section:(1) Closure without assignment for investigation following screening.(2) Administrative closure;(3) An abbreviated investigation;(4) A thorough investigation; or(5) An alternative response.(b) Intake closed without assignment for investigation(1) SWI screeners may screen out less serious reports of abuse and neglect if they determine after contacting a professional or other credible source that the child's safety can be assured without conducting an investigation or alternative response and the report meets the following criteria:(A) the report is assigned a priority other than Priority I;(B) there are no alleged victims younger than six; and(C) the family does not have an open investigation or alternative response case, and is not receiving services through DFPS.(2) Both, SWI screeners and Investigations supervisory staff, may close a report without assigning for investigation if they determine, after contacting collateral sources, that the report is not appropriate for an investigation by us for reasons including:(A) the reported information has already been investigated in a case closed before the date of the new intake;(B) the investigation is the responsibility of an entity other than the Investigations program;(C) the report does not give enough information to locate the child or the child's family, after the staff makes reasonable efforts to find additional locating information based on details in the report; or(D) the incident does not meet the statutory definitions of abuse or neglect, or the situation does not appear to involve a reasonable likelihood that a child will be abused or neglected in the foreseeable future.(3) If the report of abuse and neglect concerns a child in the conservatorship of DFPS, SWI screeners and Investigations supervisory staff may not screen out the report. However, in the following limited circumstances, SWI screeners may screen out such a report if:(A) DFPS has previously investigated all current allegations; or(B) DFPS lacks jurisdiction to investigate.(4) Before making a decision to close a report without assignment for investigation or alternative response, SWI screeners and Investigations supervisory staff must consider the following:(A) the behavior of the family, including a review of all relevant prior history the family has with DFPS and any concerning involvement the family has with other agencies, such as law enforcement or service providers;(B) the nature of the allegations and other relevant information such as the ages of each child in the home, alleged conditions in the home, and the types and seriousness of any alleged injuries;(C) whether an alleged victim made an outcry of abuse or neglect; and(D) any additional information obtained from the reporter or collateral sources.(c) Administrative closure.(1) Under certain circumstances, we may administratively close a report which was initially assigned for investigation if we obtain additional information indicating that an investigation is no longer warranted. Criteria we consider when deciding to administratively close an investigation include, but are not limited to, situations in which:(A) The allegations have already been investigated by us;(B) The allegations have been refuted based on a credible source and all of the following criteria are met:(i) There are no previous findings of abuse or neglect against the parent or caregiver in the current investigation or alternative response case;(ii) We have not received any subsequent reports of abuse or neglect of any alleged victim, with the exception of reports that involve the same incidents and allegations as in the original report;(iii) After contacting a professional or other credible sources with direct knowledge about the child's condition, we have determined that the child's safety can be assured without further assessment, response, services, or assistance; and(iv) we determine that no abuse or neglect occurred.(C) We do not have jurisdiction to conduct the investigation because:(i) Another authorized entity, such as law enforcement or another state agency, has jurisdiction to conduct the investigation;(ii) The alleged victim is not a child or was not born alive; or(iii) The abuse or neglect, a danger, or risk of abuse or neglect is not occurring in Texas.(D) The investigation was initiated on the basis of an anonymous report referred by local or state law enforcement and after completing any necessary initial tasks, including any required interviews or collateral contacts, we determine that:(i) There is no corroborating evidence; and(ii) A parent has taken actions to protect the alleged victims from any identified dangers.(2) If an investigation has been open for more than sixty days after the date of the intake, the supervisor must administratively close the investigation if all the following criteria are met:(A) There are no previous findings of abuse or neglect against the parent or caregiver in the current investigation or alternative response case;(B) We have not received any additional reports of abuse or neglect of any alleged victim, with the exception of reports that involve the same incidents and allegations as in the original report;(C) After contacting a professional or other credible sources with direct knowledge about the child's condition, the supervisor determined that the child's safety can be assured without further investigation, response, services, or assistance;(D) No abuse or neglect occurred;(E) Closing the case would not expose the child to undue risk of harm; and(F) The program director reviews and determines that administratively closing the case is appropriate.(3) Exception. Notwithstanding the criteria in subparagraph (B) of paragraph 1 of this subsection, if we have made contact with the alleged victim or alleged perpetrator, the investigation is not eligible for administrative closure under subparagraph (B). However, the case may still be eligible for other types of administrative closure or abbreviated rule out, if applicable.(d) Abbreviated investigation with a disposition of "ruled out".(1) Cases assigned for investigation may be handled with an abbreviated investigation with findings of "ruled out", if we determine that no abuse or neglect has occurred and the child's safety can be assured without further investigation, response, services or assistance. We may submit an investigation as an abbreviated rule out, which does not require completing the formal risk assessment tool, when all of the following criteria in addition to any other criteria defined policy are met:(A) There are no previous findings of abuse or neglect against the parent or caregiver in the current investigation or alternative response case;(B) We have not received any subsequent reports of abuse or neglect of any alleged victim unless the new report involves the same incident(s) and allegation(s) under investigation; and(C) The reporter is not anonymous.(2) We must at a minimum perform the following tasks before submitting the investigation as an abbreviated rule out:(A) Interview and visually inspect each alleged victim;(B) Interview at least one parent or other person with primary or legal responsibility for each alleged victim;(C) Complete a safety assessment and document whether any noted dangers are controlled by protective actions that have been or will be taken by the child's parent or other person with primary or legal responsibility for the child; and(D) Conduct any required home visit.(e) Thorough investigation.(1) Except as provided in subsection (f) of this section and division 2 of this subchapter (relating to Alternative Response), we must complete a thorough investigation if we obtain information indicating that:(A) There are dangers to the child because of abuse or neglect;(B) Risk of abuse or neglect is indicated; or(C) Based on information in the report and any initial contacts, it is impossible to determine whether or not there are dangers to the child because of abuse or neglect or whether risk of abuse or neglect is indicated.(2) Before closing a thorough investigation, we must at a minimum perform the following tasks:(A) Interview each alleged victim child;(B) Interview at least one of the parents or other person with primary or legal responsibility for the victim child;(C) Interview each alleged perpetrator;(D) Interview other individuals who have information that is relevant or potentially relevant to the report of abuse or neglect;(E) Complete a safety assessment and document whether any noted dangers are controlled by protective actions that have been or will be taken by the child's parent or other person with primary or legal responsibility for the child, unless the investigation relates to a deceased child and there is no other child in the home; and(F) Assess the risk of future abuse or neglect, unless the investigation relates to a deceased child and there is no other child in the home.(f) Alternative response. An alternative response is a protective intervention governed by division 2 of this subchapter and Texas Family Code, §261.3015, that involves an assessment of the family, including a safety assessment, and provision of necessary services and supports. Alternative response does not result in a formal finding of abuse or neglect or the designation of a perpetrator.(g) Exceptions to required interviews. We are not required to conduct an interview to close an abbreviated or thorough investigation as described in subsections (c) and (d) of this section if we exhaust all reasonable efforts to conduct the interview but are unable to do so because:(1) The person to be interviewed is unable to be interviewed because of age or other exceptional circumstance;(2) The person to be interviewed, the person's parent or other legal guardian, or the attorney representing the person refuses to permit the interview;(3) The alleged perpetrator has been arrested or is under investigation by a law enforcement agency and the interview would interfere with the investigation or violate the alleged perpetrator's rights; or, the alleged perpetrator is detained and the jail, prison, or other detention facility in which the alleged perpetrator is detained will not permit the interview; or(4) The person to be interviewed has been interviewed by another entity and we accept the substitute interview. If the person, the person's parent or other legal guardian, or the attorney representing the person requests that the person also be interviewed by us, the investigator must conduct one supplemental interview.</content><note type="source"><p>Source Note: The provisions of this §707.489 adopted to be effective July 15, 2020, 45 TexReg 4780; amended to be effective September 22, 2022, 47 TexReg 6250; amended to be effective May 22, 2024, 49 TexReg 3587.</p></note></section><section identifier="/us/state/tx/tac/t40/p19/c707/scA/s707.491"><num value="707.491">§707.491</num><heading>What procedures apply when the investigator makes contact with and conducts interviews of parent(s) and alleged perpetrator(s) during an investigation?</heading><content>(a) At the first contact with the parent(s) or with the alleged perpetrator(s), regardless of whether or not the first contact is in person, the investigator must:(1) Identify himself or herself; and(2) Advise the parent(s) or alleged perpetrator(s) of the complaints or allegations in the report while protecting the identity of the reporter.(b) If the first contact is not in person, at the first face-to-face contact, the investigator must also:(1) Have the Texas Department of Family and Protective Services (DFPS) identification available for inspection;(2) Explain DFPS's role and legal responsibilities in the investigation;(3) Discuss each allegation in the report; and(4) Ask for a response to the allegations or an explanation of the alleged victim's situation in light of the report.(c) Any visit to interview the parent(s) or alleged perpetrator(s) may be announced or unannounced. The investigator decides whether to announce the visit based on the nature of the allegations and the need to protect the child. Prior to the interview of the parent(s) or alleged perpetrator(s), the investigator must inform the individual:(1) orally and in writing of his or her right to audio or video record the interview and receive a copy of the Investigation program's current recording policy, and that the recording may be subject to subpoena under a court order; and(2) in writing of his or her right to an administrative review of investigation findings if the Investigations program makes a finding of reason-to-believe against the individual.(d) If at any point in the investigation we learn that a parent may be a victim of domestic violence, the investigator will provide that parent information on available community services available to domestic violence victims.</content><note type="source"><p>Source Note: The provisions of this §707.491 adopted to be effective July 15, 2020, 45 TexReg 4780; amended to be effective September 22, 2022, 47 TexReg 6250.</p></note></section><section identifier="/us/state/tx/tac/t40/p19/c707/scA/s707.493"><num value="707.493">§707.493</num><heading>When will we directly purchase medical examinations for children during an investigation of abuse and neglect?</heading><content>(a) Medical, psychological, or psychiatric examinations may be paid for by:(1) Families who are willing to pay or to use family insurance;(2) Local resources that make examinations available without cost; or(3) Local funds.(b) Medicaid may also pay for medical examinations when the child is eligible and has medical problems or injuries that require examination or treatment.(c) If no other resources are available, we may directly purchase medical examinations of children during investigations of abuse and neglect as long as purchased medical examinations are performed by a licensed physician or dentist.</content><note type="source"><p>Source Note: The provisions of this §707.493 adopted to be effective July 15, 2020, 45 TexReg 4780.</p></note></section><section identifier="/us/state/tx/tac/t40/p19/c707/scA/s707.495"><num value="707.495">§707.495</num><heading>How do we make dispositions after completing the investigation?</heading><content>(a) At the end of the investigation, we must assign a disposition to each allegation identified for the investigation in order to:(1) Specify the conclusions about the occurrence of abuse or neglect;(2) Derive the overall disposition for the investigation; and(3) Derive the overall role for each person with respect to the abuse or neglect that was investigated.(b) We may make any of the following dispositions:(1) Reason-to-believe. Based on a preponderance of the evidence, we conclude that abuse or neglect has occurred.(2) Ruled-out. We determine, based on available information that it is reasonable to conclude that the abuse or neglect has not occurred.(3) Unable to complete. We could not draw a conclusion whether alleged abuse or neglect occurred, because the family:(A) Could not be located to begin the investigation or moved and could not be located to finish the investigation; or(B) was unwilling to cooperate with the investigation.(4) Unable-to-determine. We conclude that none of the dispositions specified in paragraphs (1)-(3) of this subsection are appropriate.(5) Administrative closure. Information we received after a case was assigned for investigation reveals that continued intervention is unwarranted as outlined in §707.489 of this subchapter (relating to How do we respond to reports of child abuse or neglect?).(c) The overall investigation disposition is the summary finding about the abuse or neglect that was investigated. The overall disposition is derived from the individual allegation dispositions in the following manner:(1) Reason-to-believe. If any allegation disposition is "reason-to-believe", the overall case disposition is "reason-to-believe".(2) Ruled out. If all allegation dispositions are "ruled out" or are a mixture of "ruled out" and "administrative closure", the overall case disposition is "ruled out".(3) Unable to complete. If any allegation disposition is "unable to complete" and no allegation disposition is "reason-to-believe" or "unable to determine", the overall investigation disposition is "unable to complete".(4) Unable to determine. If any allegation disposition is "unable to determine" and no allegation disposition is "reason to believe", the overall case disposition is "unable to determine".(5) Administrative closure. Decisions with regard to administrative closure are made at the case level as specified in §707.489 of this subchapter. Therefore, all allegations must be disposed of by indicating that administrative closure has been selected. If anyone allegation meets criteria for allegation dispositions as specified in paragraphs (1)-(4) of this subsection, a case is not eligible for administrative closure.</content><note type="source"><p>Source Note: The provisions of this §707.495 adopted to be effective July 15, 2020, 45 TexReg 4780.</p></note></section><section identifier="/us/state/tx/tac/t40/p19/c707/scA/s707.497"><num value="707.497">§707.497</num><heading>What roles can we assign to persons involved in a case after the investigation is complete?</heading><content>(a) We only investigate an individual as a possible perpetrator of child abuse or neglect if the individual is:(1) At least 10 years old; and(2) A member of the family or household.(b) The overall role for a person at the end of the investigation is the finding of the person's involvement in the abuse or neglect that was investigated. After we have given a disposition to all allegations, the roles for the persons involved in the abuse or neglect are derived. The following are the roles that can be derived at the end of an investigation of child abuse or neglect:(1) Designated victim. Based on a preponderance of the evidence, we conclude that the child has been abused or neglected as defined in Texas Family Code (TFC) §261.001(1) and (4).(2) Designated perpetrator. Based on a preponderance of the evidence, we conclude that the individual is responsible for abuse or neglect of a child for whom that person has responsibility for care, custody, or welfare as defined in TFC §261.001(5)(A)-(C).(3) Designated victim/perpetrator. Based on a preponderance of the evidence, we conclude that the individual:(A) Is a child, age 10 years or older;(B) Is a victim as described in paragraph (1) of this subsection and has also abused or neglected other children who are in the family or household; and(C) Is named in the same investigation as the designated victim.(4) Unknown (unable-to-determine). We could not determine whether the person was involved in the alleged abuse or neglect because the investigator could not determine whether or not the alleged abuse or neglect occurred.(5) Unknown (unable to complete). We could not draw a conclusion whether alleged abuse or neglect involving the person occurred because the family:(A) Could not be located to begin the investigation, or moved and could not be located to finish the investigation; or(B) Was unwilling to cooperate with the investigation.(6) No role. Either:(A) The overall disposition for the investigation is ruled out or administrative closure, as defined in §707.495 of this subchapter (relating to How do we make dispositions after completing the investigation?), in which case all persons named in allegations are given the role of "no role";(B) We have determined that based on the available information, it is reasonable to conclude that the individual was not a victim of child abuse or neglect or is not responsible for abuse or neglect of a child in the investigation; or(C) The person was not alleged to have abused or neglected a child in the case.</content><note type="source"><p>Source Note: The provisions of this §707.497 adopted to be effective July 15, 2020, 45 TexReg 4780.</p></note></section><section identifier="/us/state/tx/tac/t40/p19/c707/scA/s707.499"><num value="707.499">§707.499</num><heading>Who will we notify of the investigation results?</heading><content>(a) Required notification in abbreviated ruled out and thorough investigations.(1) We must notify the following parties about the findings of an abbreviated ruled out or thorough investigation unless one of the exceptions specified in subsection (d) of this section apply:(A) Each parent or other person with primary or legal responsibility for each alleged victim or alleged perpetrator who is a minor;(B) Each person identified as an alleged perpetrator. For an alleged perpetrator who is a minor, we may send the notice to the child's parents or other person with primary or legal responsibility for the child; and(C) The reporter, if the reporter's identity is known.(2) We must provide notice to the persons specified in paragraph (1) of this subsection within 15 days after the investigation is closed by the supervisor.(b) Required notification in administratively closed investigations.(1) We must notify the following parties about the findings of an investigation that was closed administratively unless one of the exceptions specified in subsection (d) of this section apply:(A) Each parent or other person with primary or legal responsibility for each alleged victim or alleged perpetrator who is a minor; and(B) The reporter, if the reporter's identity is known.(2) We must provide notice to the parents or other person with primary or legal responsibility for each alleged victim or alleged perpetrator who is a minor no later than 24 hours after the investigation is closed by the supervisor and to the reporter within 15 days.(c) Optional provision of investigation findings upon request.(1) We may provide information about the investigation to each parent or other person with primary or legal responsibility for any child in the home under investigation, at the request of the parent or person with primary or legal responsibility of the child, unless one of the exceptions specified in subsection (d) of this section exists. We may provide information from the investigation to the extent we deem necessary for the protection and care of the child when such information is necessary to meet the child's needs.(2) We must not release information that is subject to redaction under §700.204, subchapter B, chapter 700, of this title (relating to Redaction of Records Prior to Release).(d) Exceptions to providing notification.(1) During the investigation, we were unable to locate the person entitled to notification despite having made reasonable efforts to locate the person.(2) Notwithstanding requirements to notify certain persons of investigation results, we will not provide the notice when we determine that the notice is likely to endanger the safety of any child in the home, the reporter, or any other person who participated in the investigation of the report. This safety exception does not apply to a designated perpetrator entitled to receive notice under subsection (f) of this section, or to a former alleged perpetrator entitled to receive notice under subsection (g) of this section.(3) We may delay notification of a person entitled to notification under this section if a law enforcement agency requests the delay because timely notification would interfere with an ongoing criminal investigation. We may delay notification only in those circumstances in which the law enforcement agency agrees to notify us at the earliest time that the delay is no longer needed. We must provide the notification within 15 days after the date on which we are notified that the law enforcement agency has withdrawn the request to delay the notification.(4) We will not provide required notifications or optional information about findings under this section if an investigation is being closed administratively because the report was referred for investigation to another authorized entity, such as law enforcement or another state agency.(e) Form of notification. Notifications about the findings of an investigation may be either written or oral, except the notifications in paragraphs (1)-(2) of this subsection must be provided in writing:(1) Written notification of the designated perpetrator, or designated victim perpetrator; and(2) Written notification of an alleged perpetrator when all allegations in the case involving the person as an alleged perpetrator have been ruled out.(f) Required written notification of the designated perpetrator. We must give written notice of the findings of the investigation to everyone who has been identified as a designated perpetrator as specified in §707.497(b)(2) or (3) of this subchapter (relating to What roles can we assign to persons involved in a case after the investigation is complete?). For a designated perpetrator who is a minor, the notice is sent to the child's parents or other person with primary or legal responsibility for the child.(g) Required written notification of an alleged perpetrator when all allegations involving the person as an alleged perpetrator have been ruled out. We must give written notice of the right to request removal of role information to each person who was identified as an alleged perpetrator when all the allegations in the case involving the person as an alleged perpetrator have been ruled out. If the person is a minor, we may send the notice to the minor's parents.(h) Notifying the reporter. If the reporter is not a professional working with the family, notification to the reporter discloses only:(1) That we investigated the report; and(2) Whether we provided services to the family during the investigation or plan to provide services to the family after the investigation.</content><note type="source"><p>Source Note: The provisions of this §707.499 adopted to be effective July 15, 2020, 45 TexReg 4780.</p></note></section><section identifier="/us/state/tx/tac/t40/p19/c707/scA/s707.501"><num value="707.501">§707.501</num><heading>When do we conduct risk and safety assessments?</heading><content>(a) Overview. During an investigation, we must assess both the immediate safety of the children in the home and the risk of recurrence of abuse or neglect.(1) Assessing safety. We conduct a formal safety assessment to assess the presence or absence of danger indicators in the home during each contact with the family to determine whether the child is safe in the home.(2) Assessing risk. Unless the conditions specified in subsection (b) of this section exist, we conduct a formal risk assessment to assess the likelihood that abuse or neglect will reoccur in the foreseeable future.(b) When we do not complete a formal risk assessment. When any of the following conditions exists, we are not in a position to assess the likelihood that abuse or neglect will reoccur in the foreseeable future:(1) The disposition of the allegations of child abuse or neglect is "unable to complete", as defined in §707.495 of this subchapter (relating to How do we make dispositions after completing the investigation?);(2) The preliminary investigation is closed administratively, as specified in §707.489(b) of this subchapter (relating to How do we respond to reports of child abuse or neglect?;(3) The disposition of the allegations of child abuse or neglect is "ruled out" pursuant to an abbreviated investigation as specified in §707.489(c) of this chapter;(4) The family has only one child, and the child has died;(5) The investigation was conducted in a school and did not involve members of the child's family or household;(6) The investigation was conducted on a relative or other household; or(7) The investigation meets the criteria of a Baby Moses case under Subchapter D of Chapter 262, Texas Family Code.(c) Conclusions about safety and risk assessments. After assessing both safety and risk, and identifying sources of strengths and protective actions in the family, we determine whether:(1) The child should be removed;(2) The family should be referred for family based safety services as specified in subchapter G, chapter 700 of this title (relating to Services For Families); and/or for immediate or short-term protective services as specified §707.503 of this subchapter (relating to When will we intervene for the purpose of providing immediate or short-term protection to a child?); or(3) The case should be closed.(d) We may close the case when either of the following circumstances exists:(1) The family's level of risk is low or moderate and there are no unmanaged danger indicators in the home; or(2) The family appears willing and able, through the use of family and community resources, to deal with the safety and risk factors in their lives to ensure the safety of the child(ren) for the foreseeable future.(e) We may remove the child(ren) if the criteria for removal under Subchapter B of Chapter 262, Texas Family Code, is met or we may refer the case for family based safety services as specified in subchapter G, chapter 700 of this title if:(1) There is a high or very high likelihood that abuse or neglect will reoccur in the foreseeable future or the child is not safe in the home because of unmanaged danger indicators;(2) Safety or risk factors were identified; and(A) The family appears unable or unwilling to utilize family and community resources in a manner that will ensure the safety of the child(ren) for the foreseeable future; or(B) There are not sufficient strengths and/or protective actions, and available resources to provide for the safety of the child(ren) in the foreseeable future without intervention; or(3) The family would benefit from family based safety services to help manage the risk to the child(ren) in the foreseeable future.(f) We must ensure that the child receives immediate or short-term protective services as specified §707.503 of this subchapter if the family cannot protect the child from abuse or neglect in the immediate or short-term future without assistance.(g) Documentation of spouse or partner abuse. The investigator must document an occurrence or history of spouse or partner abuse during the risk assessment. The documentation contains information obtained during the investigation as it relates to principals within that case.</content><note type="source"><p>Source Note: The provisions of this §707.501 adopted to be effective July 15, 2020, 45 TexReg 4780.</p></note></section><section identifier="/us/state/tx/tac/t40/p19/c707/scA/s707.503"><num value="707.503">§707.503</num><heading>When will we intervene for the purpose of providing immediate or short-term protection to a child?</heading><content>(a) We will intervene to provide for a child's immediate or short-term safety when:(1) The child is at risk of abuse or neglect in the immediate or short-term future; and(2) The child's family is unwilling or unable to protect the child without intervention.(b) When a child needs immediate or short-term protection as specified in subsection (a) of this section, we must complete a safety assessment, develop a plan to provide for the child's immediate or short-term safety, and ensure that the plan is implemented. This includes situations where the method of assuring the child's short-term protection is to remove the alleged perpetrator from the home, either voluntarily or by court order.</content><note type="source"><p>Source Note: The provisions of this §707.503 adopted to be effective July 15, 2020, 45 TexReg 4780.</p></note></section><section identifier="/us/state/tx/tac/t40/p19/c707/scA/s707.505"><num value="707.505">§707.505</num><heading>What are the requirements for an administrative review of investigation findings?</heading><content>(a) The purpose of an Administrative Review of Investigation Findings (ARIF) is to provide an informal review process for a person who has been designated as a perpetrator or victim/perpetrator of child abuse or neglect as specified in §707.497(b)(2) or (3) of this subchapter (relating to What roles can we assign to persons involved in a case after the investigation is complete?).(b) To be eligible, you must request an ARIF, in writing, within 45 days after receiving notice of the findings of the investigation. If you are 18 years of age or older and are requesting an ARIF to challenge a reason-to-believe finding made against you when you were a minor, your request will be considered timely and we will grant your request if you have not previously had an ARIF and are not otherwise found ineligible.(c) You will not be entitled to an ARIF for a finding of abuse or neglect if a court of competent jurisdiction has already issued a ruling consistent with that specific finding.(d) Except as provided in subsection (f) of this section, within 45 days after the date we receive your request for an ARIF, we must:(1) Conduct the ARIF; or(2) Notify you that your request has been denied because you are not eligible for an ARIF, as specified in this section.(e) After you submit a written request for an ARIF, we will contact you to schedule the review. If we are unable to make contact with you and you do not respond to the attempts to make contact within 30 days of the initial attempt, we will not proceed with the review and you will waive your right to an ARIF. If you subsequently contact us after the above-specified timeframe, we may reschedule the review if we determine that you had a good reason for exceeding the timeframe.(f) We may postpone an ARIF when there is a pending civil or criminal suit or an ongoing criminal investigation relating to the same acts or omissions involved in the finding of abuse or neglect or we find that there is other good cause for extending the deadline. If we decide to postpone the ARIF, we will notify you in writing within 45 days after receiving your request for an ARIF. If the ARIF is postponed due to a pending civil or criminal suit or ongoing criminal investigation, the notification will indicate the length of time of the delay or specify that you must notify us when the court case has been completed or the criminal investigation has been closed, as appropriate. We will review your eligibility for an ARIF after the delay. If you are determined eligible for an ARIF, we must conduct it within 45 days from notification of the completion of the suit or criminal investigation that caused the postponement.(g) The ARIF is conducted by a DFPS employee (the "resolution specialist") who was not involved in the investigation and did not directly supervise the investigation. The ARIF is an informal review in which the participants may appear, make statements, provide relevant written materials, and ask questions. You have the right to bring a legal representative and a support person to the review. The support person may not participate in the review. If you are a minor, your parent or guardian may also speak on your behalf during the review. Any witnesses that you have must submit their statements in writing to the resolution specialist.(h) The resolution specialist may review the investigation case record, ask questions, and gather other relevant information. The formal rules of evidence do not apply and the review does not include formal witness testimony. The resolution specialist may consider all allegations relating to the investigation, including allegations that were "reason-to-believe", "unable-to-determine", or "ruled-out" at the conclusion of the investigation, and the evidence gathered during the investigation and the ARIF process. The resolution specialist must confirm that decisions of "reason-to-believe" are supported by a preponderance of the evidence.(i) After completing the ARIF, the resolution specialist must timely issue a written decision that upholds, reverses, or alters the original investigation findings. The resolution specialist only reviews and issues a written decision on findings pertaining to you. An original finding of "reason-to-believe" for abuse or neglect may be upheld or may be reversed to a finding of either "unable-to-determine" or "ruled-out". A finding may be altered with respect to the type of abuse or neglect found to have occurred. For example, an original finding of "reason-to-believe" for "physical abuse" of a child may be altered to a finding of "reason-to-believe" for "neglectful supervision" of the child.(j) If the resolution specialist's decision reverses or alters any of the original investigation findings, we must change our records regarding the outcome of the investigation to reflect the resolution specialist's decision.(k) Notwithstanding anything in this section, if you are entitled to an administrative hearing before the State Office of Administrative Hearings (SOAH), we may waive the ARIF and proceed directly to the SOAH hearing.</content><note type="source"><p>Source Note: The provisions of this §707.505 adopted to be effective July 15, 2020, 45 TexReg 4780.</p></note></section><section identifier="/us/state/tx/tac/t40/p19/c707/scA/s707.507"><num value="707.507">§707.507</num><heading>What notification requirements apply to an investigation of a person that also has placement of child(ren) in the managing conservatorship of the Texas Department of Family and Protective Services (DFPS) or is a DFPS foster or adoptive home?</heading><content>(a) If there is a reason-to-believe finding of abuse or neglect of a child that is not in the managing conservatorship of the Texas Department of Family and Protective Services (DFPS) and the home also has children that are in DFPS's managing conservatorship, we must notify:(1) The court having jurisdiction;(2) The attorney ad litem;(3) The guardian ad litem, if one is appointed; and(4) The child's parents.(b) If a law enforcement investigation of a report of abuse or neglect involving a child in a DFPS foster or pre-consummated adoptive home results in criminal indictment of either of the foster or adoptive parents, DFPS will close the home unless the regional director, in consultation with a Child Protective Services State Office Director, determines that there is not a continuing risk of substantial harm to children placed there and the indicted perpetrator is out of the home.</content><note type="source"><p>Source Note: The provisions of this §707.507 adopted to be effective July 15, 2020, 45 TexReg 4780.</p></note></section><section identifier="/us/state/tx/tac/t40/p19/c707/scA/s707.509"><num value="707.509">§707.509</num><heading>What standards for conducting investigations of abuse and neglect apply to the Investigations program?</heading><content>To encourage professionalism and consistency in the investigation of reports of child abuse and neglect, as specified in the Texas Family Code (TFC) §261.310, the Texas Department of Family and Protective Services adopts the following standards for individuals who investigate reports of child abuse and neglect:(1) Each individual responsible for investigating reports of child abuse and neglect, or for conducting interviews during investigations of child abuse and neglect, must receive a minimum of 12 hours of professional training every year.(2) The professional training curriculum for individuals who conduct investigations or investigation interviews must include information about:(A) Abuse and neglect as defined in TFC §261.001 including the distinction between:(i) Physical injuries resulting from abuse; and(ii) Ordinary childhood injuries;(B) Abuse involving mental or emotional injury as defined in TFC §261.001(1);(C) Available treatment resources;(D) The types of child abuse and neglect reported to DFPS, including information about the receipt of false reports;(E) Forensic interviewing and investigatory techniques and the collection of physical evidence; and(F) Federal child welfare laws.(3) All investigatory interviews that are recorded should be recorded:(A) Accurately, without interruption; and without alteration;(B) Should be made on equipment that is capable of making an accurate recording; and(C) Should be made by a person that is competent to make the recording.(4) In accordance with Subchapter E of Chapter 264, Texas Family Code, investigators should:(A) Utilize Children's Advocacy Centers when appropriate and follow protocols to minimize the number of interviews with a child; and(B) Be thorough and exercise professional judgment and expertise in determining the nature, extent, and number of interviews and examinations of suspected child abuse victims.(5) All documents generated during investigations must be maintained according to the Investigations published records retention schedule on the DFPS website, including:(A) Original tape recordings of telephone intakes;(B) Any recordings of interviews; and(C) Worker case notes regarding the investigation.(6) Investigators must make a reasonable effort to locate and notify each parent of an alleged victim of the report of abuse or neglect relating to the child victim.</content><note type="source"><p>Source Note: The provisions of this §707.509 adopted to be effective July 15, 2020, 45 TexReg 4780.</p></note></section><section identifier="/us/state/tx/tac/t40/p19/c707/scA/s707.511"><num value="707.511">§707.511</num><heading>On whom do we conduct criminal history records checks during the course of an investigation?</heading><content>(a) As provided in Government Code §411.114, we must obtain criminal history record information maintained by the Texas Department of Public Safety (DPS) regarding an alleged perpetrator unless the alleged perpetrator is a victim/perpetrator in the report.(b) When necessary to complete a safety assessment, risk assessment, family assessment, or other assessment (including home studies or child care arrangements), we are entitled to obtain criminal history record information maintained by DPS regarding any of the following parties:(1) Persons living in the residence in which the alleged victim resides;(2) Persons providing, at the request of the child's parent, in-home care for an alleged child victim; and(3) Persons providing, at the request of the child's parent, in-home care for a child, as long as the person provides written consent to the release and disclosure of the information.(c) For purposes of this rule, the term "residence" means "household" as that term is defined in §707.451(a)(8) of this subchapter (relating to What terms and definitions are used in reports, investigations, and assessments of abuse and neglect?).(d) In addition to criminal history record information that we obtain from DPS, we may also obtain information from the Federal Bureau of Investigation and any other criminal justice agency, subject to any limitations provided by law.</content><note type="source"><p>Source Note: The provisions of this §707.511 adopted to be effective July 15, 2020, 45 TexReg 4780.</p></note></section><section identifier="/us/state/tx/tac/t40/p19/c707/scA/s707.513"><num value="707.513">§707.513</num><heading>What provisions govern the release and maintenance of records generated in conjunction with an investigation conducted by Investigations?</heading><content>(a) Investigation records are confidential case records pursuant to the federal Child Abuse Prevention and Treatment Act and Texas Family Code (TFC) §261.201, and as further provided in subchapter B, chapter 700, of this title (relating to Confidentiality and Release of Records).(b) We will withhold or release confidential case records that are gathered and maintained in response to a report of abuse or neglect of a child, as authorized by state and federal law, and in accordance with governing rules in subchapter B, chapter 700.(c) We maintain investigation records in accordance with the Investigations published records retention schedule on the DFPS website.</content><note type="source"><p>Source Note: The provisions of this §707.513 adopted to be effective July 15, 2020, 45 TexReg 4780.</p></note></section><section identifier="/us/state/tx/tac/t40/p19/c707/scA/s707.515"><num value="707.515">§707.515</num><heading>How does the Texas Department of Family and Protective Services assign roles upon receipt of a report alleging child abuse or neglect?</heading><content>When a report of abuse or neglect is initially received by the Statewide Intake division of the Texas Department of Family and Protective Services (DFPS), each person named in the report is assigned one of the following roles:(1) Alleged victim. An alleged victim is a child who is suspected of being a victim of abuse or neglect as defined in Texas Family Code (TFC) §261.001(1) and (4).(2) Alleged perpetrator. An alleged perpetrator is a person responsible for the child's care, custody, or welfare as defined in TFC §261.001(5)(A)-(C), who is suspected of committing the alleged abuse or neglect.(3) Alleged victim/perpetrator. An alleged victim/perpetrator is a child 10 years of age or older who is suspected of both:(A) being a victim as described under paragraph (1) of this section; and(B) abusing or neglecting other children in the family/household named in the same report.(4) Unknown. A person with the role of unknown is a person whose actions with regard to the alleged abuse or neglect are not known by the reporter. The person may or may not have played a part in the suspected abuse or neglect.(5) No Role. A person with the role of no role is a person, according to the reporter, who could clearly not have had a role in the alleged abuse or neglect.</content><note type="source"><p>Source Note: The provisions of this §707.515 adopted to be effective July 15, 2020, 45 TexReg 4780.</p></note></section><section identifier="/us/state/tx/tac/t40/p19/c707/scA/s707.517"><num value="707.517">§707.517</num><heading>When is a person alleged to have committed abuse or neglect of a child entitled to request that we remove information from our records regarding that person's role as an alleged perpetrator in an investigation?</heading><content>(a) Pursuant to Texas Family Code §261.315, you will be entitled to request removal of information from our records concerning your role as an alleged perpetrator in an investigation if all of the allegations against you in that investigation are ruled-out:(1) At the conclusion of the investigation which has been approved for closure by a supervisor;(2) As the result of an administrative review of investigation findings (ARIF) conducted pursuant to §707.505 of this subchapter (relating to What are the requirements for an administrative review of investigation findings?);(3) As the result of a review conducted by the Office of Consumer Relations under division 3, subchapter I, chapter 702, of this title (relating to Office of Consumer Affairs Review of Perpetrator Designation);(4) As the result of a due process hearing, when eligible, as provided in subchapter F, chapter 700, of this title (relating to Release Hearings); or(5) As the result of any other final ruling which has the legal effect of ruling out all allegations against you from that investigation.(b) Within 15 days following the conclusion of an investigation or other final ruling as described in subsection (a) of this section, we will mail a written notice to you informing you of your right to request removal of certain information and of the procedures which you must follow in order to exercise that right. If you are a minor, we will send the notice to your parents or other person with primary or legal responsibility.(c) A request to remove role information shall not be deemed to be properly made unless you:(1) Submit the request on a completed form prescribed by us and provided to you for this purpose, or submit a written request containing substantially equivalent information which allows us to locate the investigation in question and which clearly states the purpose of the request;(2) Sign the request, or your parents or other person with primary or legal responsibility sign the request if you are a minor; and(3) Mail or deliver the request to us to the address prescribed on the form for this purpose within 45 days after the mailing date of the notice required in subsection (b) of this section.(d) Upon receipt of a request for removal of role information which meets all of the criteria set forth in subsection (c) of this section, we will initiate procedures to remove any information from our records which would tend to reveal that you were named as an alleged perpetrator of abuse and neglect in the investigation in which all allegations against you were ruled out. We will complete the process of removal of role information within 90 days from receipt of a properly submitted request.(e) During the period of time following the receipt of a request properly made under subsection (c) of this section, and prior to the completion of the removal of information required in subsection (d) of this section, we will not release any information which is subject to removal under subsection (d) of this section to anyone who might otherwise be entitled to receive a copy of the investigation records, unless we are ordered to release that information pursuant to a valid court order.(f) A request for removal of role information which does not meet the criteria set out in subsection (c) of this section will be denied. Notice of the denial and the reasons for the denial will be provided to you within 30 days of us receiving the request for removal.</content><note type="source"><p>Source Note: The provisions of this §707.517 adopted to be effective July 15, 2020, 45 TexReg 4780.</p></note></section><section identifier="/us/state/tx/tac/t40/p19/c707/scA/s707.571"><num value="707.571">§707.571</num><heading>What do the following pronouns, words, and terms mean when used in this division?</heading><content>(a) The following pronouns have the following meanings when used in this division:(1) I, my, you, and your--A person who has been designated as a perpetrator or victim/perpetrator of child abuse or neglect by the Investigations program unless otherwise stated or the context clearly indicates otherwise.(2) We, us, and our--The Investigations program of the Child Protective Investigations division of the Texas Department of Family and Protective Services unless otherwise stated or the context clearly indicates otherwise.(b) The following words and terms, when used in this division, have the following meanings, unless the context clearly indicates otherwise:(1) Designated Perpetrator--An individual whom the Department of Family and Protective Services (DFPS) has designated as a perpetrator or victim/perpetrator of child abuse or neglect as specified in §707.497(b)(2) - (3) of this subchapter (relating to What roles can we assign to persons involved in a case after the investigation is complete?)(2) Release--The disclosure of information about a designated perpetrator to any party outside DFPS, including employers, licensing boards, and other entities who have control over an individual's access to children and/or vulnerable adults, without the consent of the designated perpetrator. For purposes of this division, however, the term "release" does not apply to disclosures required by law, including those made pursuant to authority as set forth in §700.203 of this title (relating to Access to Confidential Information Maintained by the Texas Department of Family and Protective Services (DFPS)) and/or Texas Family Code §261.201.(3) Release hearing--Also commonly known as a Due Process Hearing, provides a designated perpetrator an opportunity to appeal a decision by DFPS to release information about him/her. It is a formal administrative legal proceeding before an administrative law judge of the State Office of Administrative Hearings to determine whether a finding of abuse or neglect of a child against a designated perpetrator made by the Investigations program of the Child Protective Investigations division is appropriate.(4) Sustained Perpetrator--A designated perpetrator becomes a sustained perpetrator when:(A) a Release (Due Process) Hearing under this division (relating to Release Hearings) is held and an administrative law judge has determined that there is a preponderance of the evidence to sustain DFPS's conclusion that the designated perpetrator is responsible for abuse or neglect of a child; or(B) DFPS provides the designated perpetrator written notice of the right to request a Release (Due Process) Hearing, and the designated perpetrator either:(i) Waives his/her right to appeal in writing; or(ii) Fails to request in writing a hearing within 15 calendar days after receiving notice of that right.(5) Vulnerable adult--This term includes:(A) a disabled person with a physical, mental, or developmental disability that substantially impairs the person's ability to provide adequately for the person's care or protection, and who is 18 years of age or older or under 18 years of age and who has had the disabilities of minority removed (Human Resources Code, §48.002); or(B) a person age 65 years or older.</content><note type="source"><p>Source Note: The provisions of this §707.571 adopted to be effective March 1, 2012, 37 TexReg 713; transferred effective January 15, 2021, as published in the Texas Register December 11, 2020, 45 TexReg 8882; amended to be effective September 22, 2022, 47 TexReg 6250.</p></note></section><section identifier="/us/state/tx/tac/t40/p19/c707/scA/s707.573"><num value="707.573">§707.573</num><heading>When do we release information about a designated perpetrator to outside parties?</heading><content>(a) Subject to the limitations specified in subsections (b) and (c) of this section, we have the authority to conduct a Non-Emergency or an Emergency Release.(b) Before a Non-Emergency or Emergency Release is conducted, the release must be approved by:(1) the Managing Regional Attorney for the region that issued the abuse or neglect finding; and(2) the Regional Director for the region that issued the abuse or neglect finding. Before approving the release, the Regional Director must consult with the appropriate Managing Regional Attorney.(c) For a Nonemergency Release, before we conduct a release, our conclusion about your status as a designated perpetrator must be sustained as specified in §707.571(4) of this division (relating to What do the following pronouns, words, and terms mean when used in this division?), and there must be evidence that the risk of harm to one or more children or vulnerable adults is substantial.(d) For an Emergency Release, we conduct a release when there is evidence that the risk of harm to one or more children or vulnerable adults is both substantial and immediate, in accordance with Texas Family Code 261.308(d). During an Emergency Release, we will act as quickly as possible and without regard for the timing of an appeal by you. In other words, we will release the information before the abuse or neglect conclusion is sustained. However, notice of the release in compliance with §707.575 of this division (relating to What are the notice requirements for a designated perpetrator when we release information to outside parties?) will be sent to you before the release is conducted. This notice will offer a release hearing after the release has been conducted.</content><note type="source"><p>Source Note: The provisions of this §707.573 adopted to be effective March 1, 2012, 37 TexReg 713; amended to be effective December 1, 2013, 38 TexReg 8248; transferred effective January 15, 2021, as published in the Texas Register December 11, 2020, 45 TexReg 8882; amended to be effective September 22, 2022, 47 TexReg 6250.</p></note></section><section identifier="/us/state/tx/tac/t40/p19/c707/scA/s707.575"><num value="707.575">§707.575</num><heading>What are the notice requirements for a designated perpetrator when we release information to outside parties?</heading><content>(a) When we decide to release information about your status as a designated perpetrator as specified in §707.573 of this division (relating to When do we release information about a designated perpetrator to outside parties?), we must give you written notice of our decision to release the information regardless of the fact that we previously provided you written notice of the investigation findings.(b) If our conclusion is about your status as a sustained perpetrator (meaning an Administrative Law Judge has already sustained the abuse and/or neglect finding as specified in §707.571(4) of this division (relating to What do the following pronouns, words, and terms mean when used in this division?), we have the authority to release the same information again without additional notice to you.(c) Before we provide you the written notice, it must be approved by the Managing Regional Attorney for the region that issued the abuse and/or neglect finding.(d) We must send the notice via certified mail with a return receipt requested, unless we determine that a faster form of written notice is required.(e) The notice must include:(1) a specification of the investigation findings as defined in §707.495 (relating to How do we make dispositions after completing the investigation?) and §707.497 (relating to What roles can we assign to persons involved in a case after the investigation is complete?) of this subchapter;(2) notice of our decision to release information about your status as a designated perpetrator to the specific outside parties, which may include employers, licensing boards, and other entities who have control over your access to children or vulnerable adults;(3) notice, when applicable, that the information will be released on an emergency basis before an appeal can be completed;(4) notice that:(A) you have a right to appeal the decision to release information about you;(B) to appeal the decision, you must submit two copies of a written request for an appeal;(C) the two copies of your written request for an appeal must be:(i) postmarked within 15 days after you receive the written notice; and(ii) sent to:(I) Texas Health and Human Services Legal Services Division, Enforcement Department Docket Clerk; and(II) the Regional Director for the region that issued the abuse/neglect finding; and(D) you are responsible for providing the Docket Clerk and us with written notification of any change in address that occurs after having requested a release hearing;(5) notice that failure to appeal the decision may result in our release of the information now and in the future to other outside parties without your consent and without additional notice to you at any time in the future;(6) notice of your right to:(A) review all audiotapes and videotapes included in DFPS's investigation record, if any; and(B) request a copy of all the written documentation included in DFPS's investigation record;(7) notice of our obligation to delete the following information from all written documentation that we provide to you:(A) the name of the person who reported the abuse or neglect that we investigated; and(B) any other information that is confidential by law; and(8) notice that your request for a copy of the written documentation included in the investigation record may be denied if:(A) releasing the documentation would jeopardize an ongoing criminal investigation or proceeding; or(B) the attorney representing DFPS in a lawsuit has determined that the documentation must be withheld.</content><note type="source"><p>Source Note: The provisions of this §707.575 adopted to be effective March 1, 2012, 37 TexReg 713; transferred effective January 15, 2021, as published in the Texas Register December 11, 2020, 45 TexReg 8882; amended to be effective September 22, 2022, 47 TexReg 6250.</p></note></section><section identifier="/us/state/tx/tac/t40/p19/c707/scA/s707.577"><num value="707.577">§707.577</num><heading>When must we arrange a release hearing for a designated perpetrator?</heading><content>We arrange for a release hearing to be conducted when the following two actions have taken place:(1) We have notified you of our decision to release information as specified in §707.575 of this division (relating to What are the notice requirements for a designated perpetrator when we release information to outside parties?); and(2) you have filed a written appeal of the decision to release within 15 days after receiving notice of that decision to release.</content><note type="source"><p>Source Note: The provisions of this §707.577 adopted to be effective March 1, 2012, 37 TexReg 713; transferred effective January 15, 2021, as published in the Texas Register December 11, 2020, 45 TexReg 8882; amended to be effective September 22, 2022, 47 TexReg 6250.</p></note></section><section identifier="/us/state/tx/tac/t40/p19/c707/scA/s707.579"><num value="707.579">§707.579</num><heading>What happens after a designated perpetrator requests a release hearing?</heading><content>(a) After you request a release hearing, the Texas Health and Human Services (HHSC) Legal Services Division, Enforcement Department will ask the State Office of Administrative Hearings (SOAH) to appoint an administrative law judge to conduct proceedings necessary to make a final decision in the case.(b) After SOAH assigns a docket number to your case:(1) The HHSC Legal Services Division, Enforcement Department will mail notice of the hearing, by to your last known address as shown by our records; or(2) If the HHSC Legal Services Division, Enforcement Department Docket Clerk has received written notice of representation from an attorney who will be representing you at the hearing, HHSC will send the notice of the hearing to the attorney in a manner allowed under the rules referenced in §707.581 of this division (relating to How is a release hearing conducted?).(c) You are responsible for providing the HHSC Docket Clerk and DFPS with written notification of any change in address that occurs after having requested a release hearing.</content><note type="source"><p>Source Note: The provisions of this §707.579 adopted to be effective March 1, 2012, 37 TexReg 713; transferred effective January 15, 2021, as published in the Texas Register December 11, 2020, 45 TexReg 8882; amended to be effective September 22, 2022, 47 TexReg 6250.</p></note></section><section identifier="/us/state/tx/tac/t40/p19/c707/scA/s707.581"><num value="707.581">§707.581</num><heading>How is a release hearing conducted?</heading><content>A release hearing is conducted according to the following procedural rules which are incorporated into this rule by reference:(1) Rules of the State Office Administrative Hearings (SOAH) found at 1 TAC Chapters 155 (relating to Rules of Procedure), 157 (relating to Temporary Administrative Law Judge), and 161 (relating to Requests for Records);(2) The Texas Government Code, Chapter 2001, Administrative Procedures Act (APA) rules, to the extent that they do not conflict with the SOAH rules; and(3) The Texas Rules of Civil Procedure, to the extent that they do not conflict with the SOAH or APA rules.</content><note type="source"><p>Source Note: The provisions of this §707.581 adopted to be effective March 1, 2012, 37 TexReg 713; transferred effective January 15, 2021, as published in the Texas Register December 11, 2020, 45 TexReg 8882; amended to be effective September 22, 2022, 47 TexReg 6250.</p></note></section><section identifier="/us/state/tx/tac/t40/p19/c707/scA/s707.583"><num value="707.583">§707.583</num><heading>What actions may an Administrative Law Judge (ALJ) take regarding a finding of abuse or neglect by the Investigations program of the Child Protective Investigations division?</heading><content>The ALJ may uphold, reverse, or alter the finding of abuse or neglect.(1) If the ALJ reverses the finding, then we will notify any previously notified outside parties of the outcome of the hearing. We will also change your role in our records from designated perpetrator to "no role" and "Reason to Believe" finding to "Ruled Out".(2) If the ALJ upholds the finding, then we will conduct a release if it has not already been done on an emergency basis. We will also change your role in our records from designated perpetrator to sustained perpetrator of child abuse and/or neglect.(3) If the ALJ alters the finding, then we will follow the direction outlined in the Order.</content><note type="source"><p>Source Note: The provisions of this §707.583 adopted to be effective March 1, 2012, 37 TexReg 713; transferred effective January 15, 2021, as published in the Texas Register December 11, 2020, 45 TexReg 8882; amended to be effective September 22, 2022, 47 TexReg 6250.</p></note></section><section identifier="/us/state/tx/tac/t40/p19/c707/scA/s707.585"><num value="707.585">§707.585</num><heading>What happens if the designated perpetrator fails to appear at the release hearing?</heading><content>If you fail to appear at the release hearing, the administrative law judge may enter a default decision that upholds the finding of abuse or neglect.</content><note type="source"><p>Source Note: The provisions of this §707.585 adopted to be effective March 1, 2012, 37 TexReg 713; transferred effective January 15, 2021, as published in the Texas Register December 11, 2020, 45 TexReg 8882; amended to be effective September 22, 2022, 47 TexReg 6250.</p></note></section></subchapter><subchapter identifier="/us/state/tx/tac/t40/p19/c707/scB"><num value="B">SUBCHAPTER B</num><heading>SCHOOL INVESTIGATIONS</heading><section identifier="/us/state/tx/tac/t40/p19/c707/scB/s707.597"><num value="707.597">§707.597</num><heading>What do the following pronouns mean when used in this subchapter?</heading><content>The following words have the following meanings when used in this subchapter: We, us, and our--The Special Investigations program of the Child Protective Investigations division of the Texas Department of Family and Protective Services unless otherwise stated or the context clearly indicates otherwise.</content><note type="source"><p>Source Note: The provisions of this §707.597 adopted to be effective July 15, 2020, 45 TexReg 4780.</p></note></section><section identifier="/us/state/tx/tac/t40/p19/c707/scB/s707.599"><num value="707.599">§707.599</num><heading>What is the purpose of Subchapter B of this chapter?</heading><content>(a) The purpose of this subchapter is to:(1) Define abuse and neglect of children by school personnel or volunteers in a school setting;(2) Describe procedures for the report, investigation, and review of such allegations pursuant to Chapter 261, Texas Family Code; and(3) Describe related procedures.(b) For purposes of a school investigation, school personnel and volunteers are defined in §707.605(a)(6) of this subchapter (relating to What do the following terms mean when used in this subchapter?).</content><note type="source"><p>Source Note: The provisions of this §707.599 adopted to be effective July 15, 2020, 45 TexReg 4780.</p></note></section><section identifier="/us/state/tx/tac/t40/p19/c707/scB/s707.601"><num value="707.601">§707.601</num><heading>Who conducts investigations of a report alleging abuse or neglect of a child by school personnel or volunteers in a school setting?</heading><content>The Special Investigations program of the Texas Department of Family and Protective Services' Child Protective Investigations division investigates allegations of abuse or neglect of a child by school personnel or volunteers in a school setting.</content><note type="source"><p>Source Note: The provisions of this §707.601 adopted to be effective July 15, 2020, 45 TexReg 4780.</p></note></section><section identifier="/us/state/tx/tac/t40/p19/c707/scB/s707.603"><num value="707.603">§707.603</num><heading>What standards for conducting investigations of abuse and neglect apply to the Special Investigations program?</heading><content>The Special Investigations program follows the investigation standards provided in §707.509 of subchapter A of this chapter (relating to What standards for conducting investigations of abuse and neglect apply to the Investigations program?).</content><note type="source"><p>Source Note: The provisions of this §707.603 adopted to be effective July 15, 2020, 45 TexReg 4780.</p></note></section><section identifier="/us/state/tx/tac/t40/p19/c707/scB/s707.605"><num value="707.605">§707.605</num><heading>What do the following terms mean when used in this subchapter?</heading><content>(a) The following terms have the following meanings when used in this subchapter:(1) Alleged perpetrator--A person who is alleged or suspected of being responsible for the abuse or neglect of a child.(2) Alleged victim--A child who is alleged to be the victim of abuse or neglect.(3) Child--A person under 18 years of age who is not and has not been married or who has not had the disabilities of minority removed for general purposes.(4) Preponderance of evidence--Evidence which is of greater weight or more convincing than the evidence which is offered in opposition to it; that is, evidence which as a whole shows that the fact sought to be proved is more probable than not.(5) Reporter--An individual who makes a report to the Texas Department of Family and Protective Services or a duly constituted law enforcement agency alleging the abuse or neglect of a child. If more than one individual makes a report alleging abuse or neglect of the same child, all such individuals shall have the designation of a reporter.(6) School personnel and volunteers--Persons who have access to children in a school setting and are providing services to or caring for the children. School personnel include but are not limited to school employees, contractors, school volunteers, school bus drivers, school cafeteria staff, school resource officers and contracted police officers, and school custodians.(7) School setting--The physical location of a child's school or of an event sponsored or approved by the child's school, or any other location where the child is in the care, custody, or control of school personnel in their official capacity, including transportation services. This does not include:(A) school settings involving only children in facilities regulated by the Texas Health and Human Services Commission (HHSC) when HHSC contracts with the local school district to provide education services; or(B) school settings that are a part of child care operations regulated by the Child Care Licensing division of HHSC.(b) Terms used in this division that are not defined in this division shall have the meanings assigned to those terms in Chapters 101 and 261, Texas Family Code, and in division 1 of subchapter A of this chapter (relating to Intake, Investigation, and Assessment) unless the context clearly indicates otherwise.</content><note type="source"><p>Source Note: The provisions of this §707.605 adopted to be effective July 15, 2020, 45 TexReg 4780; amended to be effective September 22, 2022, 47 TexReg 6250.</p></note></section><section identifier="/us/state/tx/tac/t40/p19/c707/scB/s707.607"><num value="707.607">§707.607</num><heading>How is child abuse and neglect defined for the purpose of a school investigation?</heading><content>(a) For the purpose of an investigation in a school setting, the terms abuse and neglect shall have the meaning assigned to those terms in the Texas Family Code §261.001(1) and (4), as those terms are further defined in division 1 of subchapter A of this chapter (relating to Intake, Investigation, and Assessment), unless the definition is clearly inapplicable to reports of abuse or neglect in school settings or as otherwise provided in this subchapter.(b) Abuse and neglect in this context do not include the following:(1) Use of restraints or seclusion that do not meet the statutory definitions of child abuse or neglect;(2) Actions that school personnel or volunteers at the child's school reasonably believe to be immediately necessary to avoid imminent harm to the child or other individuals, if the actions:(A) are limited only to those actions reasonably believed to be necessary under the existing circumstances; and(B) do not include acts of unnecessary force or the inappropriate use of restraints or seclusion, such as the use of restraints or seclusion as a substitute for lack of staff;(3) Reasonable discipline.(c) Notwithstanding subsection (b) of this section, if there are allegations in the report that otherwise meet the definition of "abuse" or "neglect" by school personnel or volunteers in a school setting, those allegations will be investigated in accordance with this subchapter.</content><note type="source"><p>Source Note: The provisions of this §707.607 adopted to be effective July 15, 2020, 45 TexReg 4780.</p></note></section><section identifier="/us/state/tx/tac/t40/p19/c707/scB/s707.609"><num value="707.609">§707.609</num><heading>When will a report of alleged abuse or neglect occurring in a school setting be assigned for investigation?</heading><content>(a) A report of alleged abuse or neglect occurring in a school setting will be assigned for investigation if the following criteria are met:(1) The allegations meet the definitions of abuse or neglect contained in §707.607 of this subchapter (relating How is child abuse and neglect defined for the purpose of a school investigation?);(2) The alleged perpetrator is a person meeting the definition of school personnel or volunteers at the child's school;(3) The alleged victim is a child or was a child at the time that the alleged abuse or neglect occurred;(4) The alleged abuse or neglect occurred in a school setting;(5) The alleged abuse or neglect occurred during the current school year or there is a likelihood that sufficient evidence can still be obtained to establish whether or not abuse or neglect occurred in a school setting; and(6) The same allegations involving the school setting were not already investigated by us.(b) A report of alleged abuse and neglect which does not meet the criteria for investigation specified in this section shall be referred to an appropriate law enforcement entity or other investigating agency in accordance with Texas Family Code §261.105.(c) When we do not accept a report for investigation, we will notify the reporter verbally or in writing of the reason the report will not be investigated and that the reporter may discuss concerns about the decision with the supervisor.</content><note type="source"><p>Source Note: The provisions of this §707.609 adopted to be effective July 15, 2020, 45 TexReg 4780.</p></note></section><section identifier="/us/state/tx/tac/t40/p19/c707/scB/s707.611"><num value="707.611">§707.611</num><heading>Who do we notify when we receive a report of child abuse or neglect in a school setting?</heading><content>We must provide notification of all school-related reports of child abuse or neglect to the law enforcement entity with jurisdiction for criminal investigations in the geographical area where the alleged incident occurred, within the time frames set out in §707.487 of subchapter A of this chapter (relating to Do we notify law enforcement of all reports received of child abuse or neglect?).</content><note type="source"><p>Source Note: The provisions of this §707.611 adopted to be effective July 15, 2020, 45 TexReg 4780.</p></note></section><section identifier="/us/state/tx/tac/t40/p19/c707/scB/s707.613"><num value="707.613">§707.613</num><heading>What are the priorities and time frames for initiating school investigations?</heading><content>We must assign a priority to all reports accepted for investigation and must initiate an investigation within the corresponding time frame, as specified in §707.485 of subchapter A of this chapter (relating to What are the timeframes within which we must respond to a report of child abuse or neglect assigned for investigation?). Prior to initiating an investigation, we will review the intake report to determine if the initial priority and action recommended is appropriate or must be updated.</content><note type="source"><p>Source Note: The provisions of this §707.613 adopted to be effective July 15, 2020, 45 TexReg 4780.</p></note></section><section identifier="/us/state/tx/tac/t40/p19/c707/scB/s707.615"><num value="707.615">§707.615</num><heading>Which school personnel must we notify prior to initiating a school investigation?</heading><content>(a) Prior to conducting an investigation under this subchapter, we must notify the school principal (or the principal's supervisor if the school principal is an alleged perpetrator) of the fact that a report has been assigned for investigation, the nature of the allegations contained in the report, and the date and time we plan to visit the school campus to begin the investigation.(b) We must also orally notify the superintendent of the school district about the investigation. If the alleged perpetrator is an employee of a charter school, we must orally notify the director of the charter school of the investigation. If the alleged perpetrator is an employee of a private school, we must orally notify the chief executive officer of the private school of the investigation. If the superintendent, director, or chief executive officer is the alleged perpetrator, we must instead orally notify the president of the school board or other local governing body.(c) We must request that the school personnel notified of the investigation as provided in subsections (a) and (b) of this section not alert the alleged perpetrator or others regarding the report until we have had an opportunity to interview the alleged perpetrator.</content><note type="source"><p>Source Note: The provisions of this §707.615 adopted to be effective July 15, 2020, 45 TexReg 4780; amended to be effective September 22, 2022, 47 TexReg 6250.</p></note></section><section identifier="/us/state/tx/tac/t40/p19/c707/scB/s707.617"><num value="707.617">§707.617</num><heading>How are school investigations conducted?</heading><content>(a) An investigation conducted under this subchapter shall include the following investigative steps unless the allegations of child abuse and neglect can be clearly ruled-out without taking one or more of these steps:(1) Obtain a full statement of the allegation from the reporter, as appropriate to the case.(2) Interview and visually inspect each alleged victim, as appropriate in the case.(3) Interview any other witnesses or persons who may have collateral information, including the child's parents or guardian.(4) Interview the alleged perpetrator, if available.(5) Obtain photographs, school records, or other pertinent physical evidence, if relevant to the investigation.(6) Request that a parent of an alleged victim obtains a medical, psychological, or psychiatric examination of the child and that the records of such examination be provided to us, if necessary, to properly investigate the allegations in the case.(7) Request that the alleged perpetrator submit to a medical, psychological, or psychiatric examination and that the records of such examination be provided to us, if necessary, to properly investigate the allegations in the case; and(8) Cooperate with law enforcement in the event that law enforcement is conducting a joint investigation regarding the allegations.(b) We will conduct a criminal history background check on the alleged perpetrator in accordance with Texas Government Code, §411.114, and §707.511 of subchapter A of this chapter (relating to On whom do we conduct criminal history records checks during the course of an investigation?).(c) The Special Investigator who conducts the investigation must complete the investigation, reach a disposition for each allegation made in the report, and submit the investigation report and findings to a supervisor for approval within 30 calendar days after initiating the investigation unless an extension of time is approved by the supervisor due to extenuating circumstances. The supervisor must approve the investigation or return it to the Special Investigator for further action within 10 calendar days of receiving the investigative report. If the tenth day falls on a weekend or state holiday, the supervisor has until the next working day to complete the required review.</content><note type="source"><p>Source Note: The provisions of this §707.617 adopted to be effective July 15, 2020, 45 TexReg 4780; amended to be effective September 22, 2022, 47 TexReg 6250.</p></note></section><section identifier="/us/state/tx/tac/t40/p19/c707/scB/s707.619"><num value="707.619">§707.619</num><heading>What procedures apply when we conduct an interview or examination during a school investigation?</heading><content>(a) School officials or other persons related to the school setting may not interfere with an investigation of a report of child abuse or neglect conducted by the Texas Department of Family and Protective Services, pursuant to Texas Family Code §261.303, Interference with Investigation; Court Order. Interviews and examinations in a school investigation may take place on or off the school premises, as deemed appropriate by us, pursuant to all applicable standards. We will notify appropriate school personnel prior to conducting an interview or visual inspection on school premises. We may request that school personnel or volunteers not be present during the interview or visual inspection of an alleged victim, an alleged perpetrator, an adult or child witness, or any other person who may have information relevant to the investigation if we determine that:(1) The presence of school personnel or volunteers would compromise the integrity of the investigation; or(2) A better interview or examination of the child would result without school personnel or volunteers being present.(b) Notwithstanding subsection (a) of this section, if the school is not under the jurisdiction of the Texas Education Agency, we must have consent or a court order to conduct the interview and visual inspection of the child unless we have a reason to believe that the child is in immediate danger of physical or sexual abuse.(c) We must comply with the requirements in §707.491(b) of subchapter A of this chapter (relating to What procedures apply when the investigator makes contact with and conducts interviews of parent(s) and alleged perpetrator(s) during an investigation?).</content><note type="source"><p>Source Note: The provisions of this §707.619 adopted to be effective July 15, 2020, 45 TexReg 4780.</p></note></section><section identifier="/us/state/tx/tac/t40/p19/c707/scB/s707.621"><num value="707.621">§707.621</num><heading>How do we make dispositions and assign roles in a case after completing the investigation?</heading><content>(a) At the conclusion of the investigation, we must assign an individual disposition to each allegation of abuse or neglect, as well as an overall disposition to the investigation.(b) We use the following allegation dispositions for investigations in school settings:(1) Reason-to-believe;(2) Ruled-out;(3) Unable to complete;(4) Unable to determine; and(5) Administrative closure.(c) The overall investigation disposition is the summary finding about the abuse or neglect that was investigated. The overall disposition is determined in the following manner:(1) Reason-to-believe. If any allegation disposition is "reason-to-believe", the overall investigation disposition is "reason-to-believe".(2) Unable-to-determine. If any allegation disposition is "unable-to-determine" and no allegation disposition is "reason-to-believe", the overall investigation disposition is "unable-to-determine".(3) Unable to complete. If any allegation disposition is "unable to complete" and no allegation disposition is "reason-to-believe" or "unable-to-determine", the overall investigation disposition is "unable to complete".(4) Ruled-out. If all allegation dispositions are "ruled-out", the overall investigation disposition is "ruled out".(5) Administrative closure. The overall disposition of an investigation is "administrative closure" if all individual allegations in the investigation are given the disposition of "administrative closure".(d) The overall role for the alleged perpetrator and alleged victim at the end of an investigation in the school setting is the summary finding about the person's involvement in the abuse or neglect that was investigated. An individual's overall role is determined as follows:(1) Designated perpetrator. When any allegation involving the alleged perpetrator is "reason-to-believe".(2) Designated victim. When any allegation involving the alleged victim is "reason-to-believe".(3) Unknown (unable-to-determine). When any allegation involving the person is "unable-to-determine" and no allegation involving the person is "reason-to-believe".(4) Unknown (unable to complete). When any allegation involving the person is "unable to complete" and no allegation involving the person is "reason-to-believe" or "unable-to-determine".(5) No role. When all allegations involving the person are "ruled-out" or "administrative closure".</content><note type="source"><p>Source Note: The provisions of this §707.621 adopted to be effective July 15, 2020, 45 TexReg 4780.</p></note></section><section identifier="/us/state/tx/tac/t40/p19/c707/scB/s707.623"><num value="707.623">§707.623</num><heading>Will we notify school officials once the investigation is completed?</heading><content>(a) Yes. After the completion of an investigation, we are statutorily required to provide a report of the investigation, redacted to remove the identity of the reporter, to either:(1) The Texas Education Agency (Director of Education Investigations) for an investigation concerning an employee of a public or charter school; or(2) The school's chief executive officer for an investigation concerning an employee of a private school, unless the chief executive officer is the alleged perpetrator.(b) On request, we must also provide a redacted copy of the report to the following:(1) State Board for Educator Certification;(2) President of the local school board or local governing body for the school;(3) The superintendent of the school district unless the superintendent is the alleged perpetrator; and(4) The school principal, unless the principal is the alleged perpetrator.(c) If the overall investigation disposition is "reason-to-believe", the report must include information about the designated perpetrator's right to challenge the disposition through an administrative review of the investigation findings (ARIF), and through the Office of Consumer Relation's review of perpetrator designation conducted pursuant to division 3 of chapter 702 of this title (relating to Office of Consumer Affairs Review of Perpetrator Designation), if the finding is upheld at the ARIF. The report must also state that DFPS will notify any entity listed in subsections (a) and (b) of this section, that originally received a copy of the report of the investigation in the event that the dispositions are changed as a result of an ARIF or other challenge.(d) Notwithstanding any other provision in this section, we are not required to provide notice to a school official if we administratively close a report of abuse or neglect prior to notifying school officials under §707.611 of this subchapter (relating to Who do we notify when we receive a report of child abuse or neglect in a school setting) that DFPS received a report of abuse or neglect in the school setting.</content><note type="source"><p>Source Note: The provisions of this §707.623 adopted to be effective July 15, 2020, 45 TexReg 4780; amended to be effective September 22, 2022, 47 TexReg 6250.</p></note></section><section identifier="/us/state/tx/tac/t40/p19/c707/scB/s707.625"><num value="707.625">§707.625</num><heading>How is notice provided to non-school entities when a school investigation is completed?</heading><content>The Texas Department of Family and Protective Services must comply with the notification requirements contained in Chapter 261, Texas Family Code, and in §707.499 of subchapter A of this chapter (relating to Who will we notify of the investigation results?).</content><note type="source"><p>Source Note: The provisions of this §707.625 adopted to be effective July 15, 2020, 45 TexReg 4780.</p></note></section></subchapter><subchapter identifier="/us/state/tx/tac/t40/p19/c707/scC"><num value="C">SUBCHAPTER C</num><heading>CHILD CARE INVESTIGATIONS</heading><section identifier="/us/state/tx/tac/t40/p19/c707/scC/s707.701"><num value="707.701">§707.701</num><heading>What do the following pronouns mean when used in this subchapter?</heading><content>The following words have the following meanings when used in this subchapter:(1) I, my, you, and your--A designated perpetrator, unless otherwise stated or the context clearly indicates otherwise.(2) We, us, and our--The Child Care Investigations program of the Child Protective Investigations division of the Texas Department of Family and Protective Services unless otherwise stated or the context clearly indicates otherwise.</content><note type="source"><p>Source Note: The provisions of this §707.701 adopted to be effective July 15, 2020, 45 TexReg 4780.</p></note></section><section identifier="/us/state/tx/tac/t40/p19/c707/scC/s707.703"><num value="707.703">§707.703</num><heading>What do the following terms mean when used in this subchapter?</heading><content>The following terms have the following meanings when used in this subchapter:(1) Alleged Perpetrator--a person being investigated by us because the person is alleged to have abused, neglected, or exploited a child in a child care operation.(2) Caregiver--A person whose duties include the supervision, guidance, and protection of a child or children.(3) Central registry--A Texas Department of Family and Protective Services (DFPS) database of persons who have been found by DFPS to have abused, neglected, or exploited a child, including abusing, neglecting, or exploiting a child in a child care operation. See subchapter C, chapter 702, of this title (relating to Child Abuse and Neglect Central Registry).(4) Child--A person under 18 years of age.(5) Child Care Investigations (CCI)--a program of the Child Protective Investigations division of the Department of Family and Protective Services that investigates allegations of child abuse, neglect, and exploitation in child care operations.(6) Child Care Licensing (CCL)--a department of the Regulatory Services Division of the Texas Health and Human Services Commission that regulates child care operations under Chapter 42, Human Resources Code. CCL was formerly under the Texas Department of Family and Protective Services until September 1, 2017.(7) Child care operation--a facility, family home, or other entity that is subject to regulation by CCL under Chapter 42, Human Resources Code, regardless of whether the operation has received the necessary permit to provide the child care under that chapter.(8) Collateral witness--any person not directly involved in the incident but who may be able to provide information regarding the incident being investigated, the children and adults involved in the incident, and the type of care and supervision provided at the operation.(9) Designated perpetrator--A person on the DFPS central registry found by us to have abused, neglected, or exploited a child in a child care operation, but who has not exhausted the right to a due process hearing. See division 7 of this subchapter (relating to Due Process Hearings).(10) Finding of abuse, neglect, or exploitation--A determination that we made at the completion of an investigation based on the evidence gathered that a preponderance of the evidence supports the allegation(s) of child abuse, neglect, or exploitation in a child care operation.(11) Intake Report--An allegation of child abuse, neglect, or exploitation in a child care operation.(12) Parent--A child's biological mother or father, adoptive mother or father, or person that has legal responsibility for or legal custody of a child, including the managing conservator or legal guardian. The term does not include a parent whose parental rights have been terminated.(13) Preponderance of evidence--Evidence which is of greater weight or more convincing than the evidence which is offered in opposition to it; that is, evidence which as a whole shows that the fact sought to be proved is more probable than not.(14) Principal--all alleged victims, all alleged perpetrator, and all household members of a foster or group home in the current investigation.(15) Single-source continuum contractor (SSCC)--the entity that DFPS contracts with to provide the full continuum of foster care and case management services to children and families on behalf of Child Protective Services within a designated geographic area for purposes of implementing community-based care as defined in Texas Family Code §264.152(4).</content><note type="source"><p>Source Note: The provisions of this §707.703 adopted to be effective July 15, 2020, 45 TexReg 4780; amended to be effective September 22, 2022, 47 TexReg 6250.</p></note></section><section identifier="/us/state/tx/tac/t40/p19/c707/scC/s707.711"><num value="707.711">§707.711</num><heading>What is the purpose of an abuse, neglect, or exploitation investigation conducted in a child care operation?</heading><content>The purpose of an abuse, neglect, or exploitation investigation in a child care operation is to:(1) Obtain sufficient information so we can make a fair, accurate, and impartial decision regarding allegations of abuse, neglect, or exploitation of a child based on a preponderance of the evidence; and(2) Reduce the risk of abuse, neglect, and exploitation to children.</content><note type="source"><p>Source Note: The provisions of this §707.711 adopted to be effective July 15, 2020, 45 TexReg 4780.</p></note></section><section identifier="/us/state/tx/tac/t40/p19/c707/scC/s707.713"><num value="707.713">§707.713</num><heading>What standards for conducting investigations of abuse, neglect, and exploitation apply to the Child Care Investigations program?</heading><content>To encourage professionalism and consistency in the investigation of reports of child abuse, neglect, and exploitation, as specified in the Texas Family Code (TFC) §261.310, the Texas Department of Family and Protective Services (DFPS) adopts the following standards for individuals who investigate reports of child abuse, neglect, and exploitation in a child care operation:(1) Each individual responsible for investigating reports of child abuse, neglect, or exploitation in a child care operation, or for conducting interviews during such investigations, must receive at least 12 hours of professional training every year.(2) The professional training curriculum for individuals who conduct investigations or investigation interviews must include information about:(A) Abuse, neglect, and exploitation as defined in Texas Family Code (TFC) §261.001, including the distinction between:(i) physical injuries resulting from abuse; and(ii) ordinary childhood injuries;(B) Abuse involving mental or emotional injury as defined in TFC §261.001(1) and division 5 of this subchapter (relating to Abuse, Neglect, and Exploitation);(C) The types of abuse, neglect, and exploitation reported to DFPS;(D) Forensic interviewing, including the collection of physical evidence and advanced training in investigative protocols and techniques; and(E) Applicable federal child welfare laws.(3) All investigatory interviews that are recorded should be recorded:(A) Accurately, without interruption, and without alteration;(B) Should be made on equipment that is capable of making an accurate recording; and(C) Should be made by a person that is competent to make the recording.(4) Individuals who investigate reports of child abuse should:(A) Utilize Children's Advocacy Centers, as appropriate;(B) Follow protocols to minimize the number of interviews with a child; and(C) Coordinate with experts to be thorough and exercise professional judgment in determining the nature, extent, and number of interviews, observations, and examinations of suspected child abuse victims.(5) All documents generated during investigations must be maintained according to the Child Care Investigations published records retention schedule on the DFPS website, including:(A) Original tape recordings of telephone intakes;(B) Any recordings of interviews; and(C) Worker case notes regarding the investigation.</content><note type="source"><p>Source Note: The provisions of this §707.713 adopted to be effective July 15, 2020, 45 TexReg 4780.</p></note></section><section identifier="/us/state/tx/tac/t40/p19/c707/scC/s707.715"><num value="707.715">§707.715</num><heading>What are the timeframes within which we must respond to a report of child abuse, neglect, or exploitation assigned for investigation?</heading><content>(a) We assign priorities for reports of abuse, neglect, and exploitation based on the assessment of the immediacy of the risk and the severity of the possible harm to the child. Prior to initiating an investigation, we will review the intake report to determine if the initial priority and action recommended is appropriate or must be updated.(1) Priority I reports concern:(A) death or immediate risk of death; serious injury; or life-threatening abuse, neglect, or exploitation; or(B) imminent risk of death, serious injury, or life-threatening abuse, neglect, or exploitation.(2) Priority II reports are all other reports of abuse, neglect, or exploitation that are not assigned a Priority I.(b) Subject to the availability of funds, we must:(1) Immediately respond to a report of abuse, neglect, or exploitation that is assigned a Priority I and involves:(A) the death of a child; or(B) circumstances in which serious physical or emotional harm or death of a child will result unless we immediately intervene.(2) Respond within 24 hours to a report of abuse, neglect, or exploitation that is assigned a Priority I and involves circumstances in which the threat of serious physical or emotional harm or death of a child is not immediate but may occur in the very near future unless we intervene.(3) Respond within 72 hours to a report of abuse, neglect, or exploitation that is assigned a Priority II.</content><note type="source"><p>Source Note: The provisions of this §707.715 adopted to be effective July 15, 2020, 45 TexReg 4780.</p></note></section><section identifier="/us/state/tx/tac/t40/p19/c707/scC/s707.716"><num value="707.716">§707.716</num><heading>What requirements does the investigator follow prior to interviewing the alleged perpetrator?</heading><content>(a) At the first contact with a principal as defined in §707.703(14) in division 1 (relating to What do the following terms mean when used in this subchapter?), the investigator will:(1) Identify himself or herself;(2) Have his or her Texas Department of Family and Protective Services (DFPS) identification available for inspection;(3) Explain DFPS's role and legal responsibilities in the investigation;(4) If the principal is an alleged perpetrator, advise the individual of the complaints or allegations in the report while protecting the identity of the reporter.(b) Prior to interviewing the alleged perpetrator, the investigator will inform the individual of the following:(1) his or her right to audio or video record the interview and receive a copy of our current recording policy in accordance with Texas Family Code (TFC) §261.3027;(2) that any recording the alleged perpetrator makes may be subject to subpoena under a court order in accordance with TFC §261.3027; and(3) his or her right to an administrative review of investigation findings if we make a finding of reason-to-believe against the individual in accordance with TFC §261.3091.</content><note type="source"><p>Source Note: The provisions of this §707.716 adopted to be effective September 22, 2022, 47 TexReg 6250.</p></note></section><section identifier="/us/state/tx/tac/t40/p19/c707/scC/s707.717"><num value="707.717">§707.717</num><heading>What actions may we take during the course of an abuse, neglect, or exploitation investigation?</heading><content>During the course of an abuse, neglect, or exploitation investigation in a child care operation, we may take any of the following actions:(1) Evaluate whether the child care operation is regulated by Child Care Licensing (CCL) or subject to regulation by CCL;(2) Visit the child care operation and conduct a walkthrough;(3) To protect the immediate safety of children, during the walkthrough ensure that any high risk minimum standard deficiencies are corrected at the time of the visit;(4) Gather relevant information as part of the investigation;(5) Provide notification and evidence to CCL of any deficiencies observed during the visit that are:(A) high risk or in plain view;(B) physical; or(C) records/administrative;(6) Assess the risk to children in the operation and as appropriate:(A) request the operation to implement a safety plan to mitigate risk and ensure child safety during the investigation; or(B) notify CCL if the operation will not implement the safety plan;(7) To protect and ensure the safety of children, investigate any other allegations of deficient minimum standards received in the intake report in addition to the allegations of abuse, neglect, or exploitation.</content><note type="source"><p>Source Note: The provisions of this §707.717 adopted to be effective July 15, 2020, 45 TexReg 4780.</p></note></section><section identifier="/us/state/tx/tac/t40/p19/c707/scC/s707.719"><num value="707.719">§707.719</num><heading>Must the child care operation allow us to visit the operation as part of the investigation?</heading><content>(a) Yes, pursuant to Texas Human Resources Code §42.04412 and Texas Family Code §261.303, the child care operation must not interfere with an investigation that we are conducting.(b) If anyone at the child care operation refuses, prevents, or delays us from visiting and investigating all areas of the operation during the hours of operation, we may seek a court order granting us access to the operation and records maintained by the operation. In addition, Child Care Licensing may issue the child care operation a deficiency or take an enforcement action against the operation if the operation refuses, prevents, or delays our ability to conduct an investigation.</content><note type="source"><p>Source Note: The provisions of this §707.719 adopted to be effective July 15, 2020, 45 TexReg 4780.</p></note></section><section identifier="/us/state/tx/tac/t40/p19/c707/scC/s707.721"><num value="707.721">§707.721</num><heading>What part of the child care operation can we investigate?</heading><content>(a) We may investigate and walkthrough any part of the child care operation that could affect the health, safety, or well-being of children. This includes access to all children in care, employees, records, equipment the operation uses when providing care, and any area of the building, home, or grounds where the operation is located.(b) We must have access to all records of the child care operation, including child records, personnel records, and any recordings or videotapes of any kind.(c) We may also take copies of any records from the operation, including copies of any video and audio recordings.</content><note type="source"><p>Source Note: The provisions of this §707.721 adopted to be effective July 15, 2020, 45 TexReg 4780.</p></note></section><section identifier="/us/state/tx/tac/t40/p19/c707/scC/s707.723"><num value="707.723">§707.723</num><heading>Are visits to a child care operation announced or unannounced?</heading><content>Visits to a child care operation to investigate allegations of abuse, neglect, and exploitation are usually unannounced.</content><note type="source"><p>Source Note: The provisions of this §707.723 adopted to be effective July 15, 2020, 45 TexReg 4780.</p></note></section><section identifier="/us/state/tx/tac/t40/p19/c707/scC/s707.725"><num value="707.725">§707.725</num><heading>How often may we visit a child care operation during an abuse, neglect, or exploitation investigation?</heading><content>We will visit the child care operation as often as necessary to complete the investigation.</content><note type="source"><p>Source Note: The provisions of this §707.725 adopted to be effective July 15, 2020, 45 TexReg 4780.</p></note></section><section identifier="/us/state/tx/tac/t40/p19/c707/scC/s707.727"><num value="707.727">§707.727</num><heading>Will we investigate anonymous reports?</heading><content>Yes. We will investigate an anonymous report alleging abuse, neglect, and exploitation.</content><note type="source"><p>Source Note: The provisions of this §707.727 adopted to be effective July 15, 2020, 45 TexReg 4780.</p></note></section><section identifier="/us/state/tx/tac/t40/p19/c707/scC/s707.729"><num value="707.729">§707.729</num><heading>Will an abuse, neglect, and exploitation finding be posted on the Texas Health and Human Services' Search Texas Child Care website?</heading><content>A finding of an abuse, neglect, and exploitation investigation that we conducted is confidential and will not be posted on the Texas Health and Human Services' Search Texas Child Care website. However, we will provide our investigation findings, including any findings for anonymous reports, to Child Care Licensing (CCL) pursuant to Texas Human Resources Code (HRC) §40.042(f). If CCL cites an operation with any deficiency related to the abuse, neglect, or exploitation investigation, CCL will post the deficiency on the website. A CCL deficiency may be related to an abuse, neglect, or exploitation finding or to another minimum standards deficiency that we identified during the abuse, neglect, or exploitation investigation.</content><note type="source"><p>Source Note: The provisions of this §707.729 adopted to be effective July 15, 2020, 45 TexReg 4780.</p></note></section><section identifier="/us/state/tx/tac/t40/p19/c707/scC/s707.741"><num value="707.741">§707.741</num><heading>When will we notify the child care operation of the abuse, neglect, or exploitation investigation?</heading><content>(a) We will notify the person in charge of the child care operation of the nature of the abuse, neglect, or exploitation allegation(s) and the investigation procedures at the time of the first on-site visit to the operation unless:(1) The allegation(s) is made against the person in charge, administrator, or director; or(2) We have reason to believe that disclosing the nature of the allegation(s) might compromise the investigation.(b) If we did not notify the person in charge of the nature of the abuse, neglect, or exploitation allegation at the time of the first on-site visit to the child care operation because of the reasons noted in subsection (a) of this section, then we will notify the permit holder of the operation of the nature of the abuse, neglect, or exploitation allegation(s) by the next workday following the first on-site visit, unless we have reason to believe that doing so might compromise the investigation. If we have reason to believe the investigation may be compromised, we may also postpone explaining the nature of the allegation(s) to the permit holder. However, we must inform the appropriate person(s) of the nature of the allegation(s) as soon as we decide that doing so will not compromise the investigation.</content><note type="source"><p>Source Note: The provisions of this §707.741 adopted to be effective July 15, 2020, 45 TexReg 4780.</p></note></section><section identifier="/us/state/tx/tac/t40/p19/c707/scC/s707.743"><num value="707.743">§707.743</num><heading>Do we notify parents that an investigator interviewed their child during an abuse, neglect, or exploitation investigation?</heading><content>(a) Yes, we will make a reasonable effort to notify the parents within 24 hours after we interview and/or visually inspect their child during the course of an abuse, neglect, or exploitation investigation.(b) This notice can be delayed at the request of law enforcement if notification during the required time frame will interfere with an ongoing criminal investigation. The notice can also be delayed if it will interfere with a companion investigation being conducted by the Department of Family and Protective Services or another agency.</content><note type="source"><p>Source Note: The provisions of this §707.743 adopted to be effective July 15, 2020, 45 TexReg 4780.</p></note></section><section identifier="/us/state/tx/tac/t40/p19/c707/scC/s707.745"><num value="707.745">§707.745</num><heading>Whom will we inform of the abuse, neglect, or exploitation investigation results?</heading><content>(a) Once the abuse, neglect, or exploitation investigation is complete, we will provide the following written notifications:(1) Notification of the investigation findings to any person alleged to be a perpetrator and information regarding a designated perpetrator's right to an administrative review to dispute any substantiated findings of abuse, neglect, or exploitation;(2) Notification of the investigation findings, any evidence gathered regarding possible minimum standard deficiencies, and any safety plan implemented to the Child Care Licensing inspector assigned to monitor the child care operation pursuant to Texas Human Resources Code (HRC) §40.042(f);(3) Notification of the investigation findings to the parent of the alleged victim. If the alleged victim is a child in the conservatorship of the Texas Department of Family and Protective Services, we will notify the alleged victim's Child Protective Services' caseworker;(4) If the investigation occurred at a residential child care operation, notification of the investigation findings and the name of the person alleged or designated as a perpetrator of abuse, neglect, or exploitation to the person in charge of the operation within five calendar days after the investigation is closed. If the person in charge, the administrator, or the director of the operation is the perpetrator, we will notify the permit holder or other appropriate person; and(5) Notification to the reporter of the completion of the investigation within five calendar days after the investigation is closed.(b) If the investigation occurred at a child day care operation, the Child Care Licensing inspector assigned to monitor the operation will notify the operation of the results of our investigation after the inspector makes determinations about any minimum standard violations.</content><note type="source"><p>Source Note: The provisions of this §707.745 adopted to be effective July 15, 2020, 45 TexReg 4780; amended to be effective January 3, 2022, 46 TexReg 9417.</p></note></section><section identifier="/us/state/tx/tac/t40/p19/c707/scC/s707.747"><num value="707.747">§707.747</num><heading>Will we cite deficiencies related to the abuse, neglect, or exploitation investigation in a child care operation?</heading><content>No. The Child Care Licensing inspector assigned to monitor the child care operation will make decisions about possible minimum standard deficiencies and will notify the operation of any minimum standard deficiencies as well as the results of the investigation as provided in §707.745 (relating to Whom will we inform of the abuse, neglect, or exploitation investigation results?).</content><note type="source"><p>Source Note: The provisions of this §707.747 adopted to be effective July 15, 2020, 45 TexReg 4780.</p></note></section><section identifier="/us/state/tx/tac/t40/p19/c707/scC/s707.761"><num value="707.761">§707.761</num><heading>Will you tell the operation or alleged perpetrator who made the report that resulted in the investigation of the operation?</heading><content>No. The name of the person who made the report is confidential and will only be released as further described in the rules in this division and any other relevant provisions in federal and state law.</content><note type="source"><p>Source Note: The provisions of this §707.761 adopted to be effective July 15, 2020, 45 TexReg 4780.</p></note></section><section identifier="/us/state/tx/tac/t40/p19/c707/scC/s707.763"><num value="707.763">§707.763</num><heading>Are abuse, neglect, and exploitation investigations in child care operations confidential?</heading><content>(a) Abuse, neglect, and exploitation investigation records of child care operations are confidential pursuant to the federal Child Abuse Prevention and Treatment Act and Texas Human Resources Code (HRC) §40.005 and §42.004 and not available to the general public, except as provided under applicable federal or state law and as further described in the rules in this division. However, Child Care Licensing (CCL) maintains a monitoring file for each operation and will have access to the investigation records pursuant to HRC §40.042(f). The portions of the abuse, neglect, or exploitation investigation records that are maintained by CCL in the operation's monitoring file are not confidential and may be released to the public.(b) Notwithstanding subsection (a) of this section, DFPS does not release any records until the investigation is complete.(c) Records related to a child fatality that is the subject of an investigation may be released to the general public as provided under subchapter D, Release of Records Related to a Child Fatality, in chapter 702 of this title (relating to General Administration).</content><note type="source"><p>Source Note: The provisions of this §707.763 adopted to be effective July 15, 2020, 45 TexReg 4780.</p></note></section><section identifier="/us/state/tx/tac/t40/p19/c707/scC/s707.765"><num value="707.765">§707.765</num><heading>Who may obtain confidential abuse, neglect, and exploitation investigation information from the Child Care Investigation's file made confidential under the federal Child Abuse Prevention and Treatment Act and Texas Human Resources Code (HRC) §§40.005and 42.004?</heading><content>(a) The following may obtain confidential abuse, neglect, and exploitation information from us subject to the limitations described in §707.767 (relating to Are there any portions of the abuse, neglect, or exploitation investigation records that may not be released to anyone?) and §707.769 (relating to Who can review or have a copy of a photograph or an audio or visual recording, depiction, or documentation of a child that is in the abuse, neglect or exploitation investigation records maintained by us?) in this division:(1) Texas Department of Family and Protective Services (DFPS) staff, including volunteers, as necessary to perform their assigned duties;(2) Child Care Licensing (CCL) pursuant to HRC §40.042(f), in order to carry out its regulatory functions under HRC Chapter 42;(3) The parent of the child who is the subject of the investigation;(4) An attorney ad litem, guardian ad litem, or court appointed special advocate of an alleged victim of child abuse, neglect, or exploitation;(5) The alleged perpetrator, or the parent of an alleged perpetrator that is a minor;(6) Law enforcement;(7) A member of the state legislature when necessary to carry out that member's official duties;(8) A residential child care operation;(9) A child day care operation cited for a deficiency by CCL as a result of the investigation;(10) A single-source continuum contractor (SSCC) for community-based care that subcontracts with the child care operation where the investigation occurred;(11) An administrative law judge who conducts a due process hearing related to a finding of abuse, neglect, or exploitation or related to an enforcement action taken by CCL or another state agency as a result of the finding. See Division 7 of this subchapter (relating to Due Process Hearings);(12) A judge of a court of competent jurisdiction in a criminal or civil case arising out of an investigation of child abuse, neglect, or exploitation, if the judge:(A) provides notice to DFPS and any other interested parties;(B) after reviewing the information, including audio and/or videotapes, determines that the disclosure is essential to the administration of justice and will not endanger the life or safety of any individual; and(C) includes in the disclosure order any safeguards that the court finds appropriate to protect the interest of the child involved in the investigation;(13) According to Texas Family Code (TFC) §162.0062, a prospective adoptive parent of a child who is the subject of the investigation or who is the alleged or designated perpetrator in the investigation;(14) A child care licensing agency or child welfare agency from another state that requests information on the alleged perpetrator as part of a background check or to assist in its own child abuse, neglect, or exploitation investigation;(15) A state protection and advocacy system, such as Disability Rights Texas, that is representing or is authorized by state or federal law to represent a child that is the subject of the investigation; and(16) Any other person authorized by state or federal law to have a copy.(b) Notwithstanding any other provision of this section, the parent of a child who is not the subject of the investigation or the alleged or designated perpetrator in the investigation but was a collateral witness during the investigation is entitled to the portion of the investigation record related to their child.(c) A social study evaluator may obtain a complete, non-redacted copy of any investigative report regarding abuse, neglect, or exploitation that relates to any person residing in the residence subject to the child custody evaluation, as provided by TFC §107.111.</content><note type="source"><p>Source Note: The provisions of this §707.765 adopted to be effective July 15, 2020, 45 TexReg 4780; amended to be effective January 3, 2022, 46 TexReg 9417; amended to be effective September 22, 2022, 47 TexReg 6250.</p></note></section><section identifier="/us/state/tx/tac/t40/p19/c707/scC/s707.767"><num value="707.767">§707.767</num><heading>Are there any portions of the abuse, neglect, and exploitation investigation records that may not be released to anyone?</heading><content>(a) Except as described in subsection (b) of this section, we may not release the following portions of the abuse, neglect, and exploitation investigation records to anyone:(1) Any information that would interfere with an ongoing law enforcement investigation or prosecution;(2) Any information identifying the person who made a report that resulted in an investigation;(3) The location of a family violence shelter;(4) Information pertaining to an individual who was provided family violence services;(5) The location of a victims of trafficking shelter center, which would include:(A) A general residential operation that provides trafficking victim services under 26 Texas Administrative Code (TAC) chapter 748, subchapter V (relating to Additional Requirements For Operations that Provide Trafficking Services); and(B) A child-placing agency that provides trafficking victim services under 26 TAC Chapter 749, Subchapter V (relating to Additional Requirements For Child-Placing Agencies That Provide Trafficking Victims Services);(6) Information pertaining to an individual who was provided services at a victims of trafficking shelter center, including a general residential operation or a child-placing agency that provides trafficking victim services;(7) The identity of any child or information identifying the child in an abuse, neglect, or exploitation investigation, unless the requestor is:(A) The child's parent or prospective adoptive parent;(B) A child day care operation that was cited for a deficiency as a result of the investigation;(C) A residential child care operation where the investigation occurred if the operation is cited for a deficiency as a result of the investigation or the Department of Family and Protective Services (DFPS) determines it is necessary for the operation to ensure the welfare of children at the operation; or(D) A single-source continuum contractor (SSCC) for community-based care that subcontracts with the child care operation where the investigation occurred;(8) Foster home screenings, adoptive home screenings, and post-placement adoptive reports, unless:(A) The requester is the person being evaluated; or(B) The Department of Family and Protective Services (DFPS) Commissioner approves the release of a screening or report based on a determination that, in the Commissioner's discretion, the release advances the goals of child protection; and(9) Any other information made confidential under state or federal law.(b) Notwithstanding any other provision in this section, DFPS may provide any of the above confidential information to the following, as specified:(1) DFPS staff, including volunteers, as necessary to perform their assigned duties;(2) CCL in order to carry out its regulatory functions under Human Resources Code, Chapter 42;(3) Law enforcement for the purpose of investigating allegations of child abuse, neglect, or exploitation; failure to report child abuse, neglect, or exploitation; or false or malicious reporting of alleged child abuse, neglect or exploitation;(4) A member of the state legislature when necessary to carry out that member's official duties;(5) Any other individuals ordered by an administrative law judge or judge of a court of competent jurisdiction; and(6) A social study evaluator who has requested a complete, non-redacted copy of any investigative report regarding abuse, neglect, or exploitation that relates to any person residing in the residence subject to the child custody evaluations, as provided by Texas Family Code §107.111.(c) Notwithstanding any other provision in this subchapter, Child Care Investigations staff, in consultation with the DFPS' Office of the General Counsel, may withhold any information in its records if the release of that information would endanger the life or safety of any individual.</content><note type="source"><p>Source Note: The provisions of this §707.767 adopted to be effective July 15, 2020, 45 TexReg 4780; amended to be effective September 22, 2022, 47 TexReg 6250.</p></note></section><section identifier="/us/state/tx/tac/t40/p19/c707/scC/s707.769"><num value="707.769">§707.769</num><heading>Who can review or have a copy of a photograph or an audio or visual recording, depiction, or documentation of a child that is in the abuse, neglect, or exploitation investigation records maintained by us?</heading><content>(a) Pursuant to the federal Child Abuse Prevention and Treatment Act and Texas Human Resources Code (HRC) §42.004, a photograph, videotape, audiotape, or other audio or visual recording, depiction, or documentation of a child that is made in the course of an abuse, neglect, or exploitation investigation is confidential and may only be released as required by state and federal law or as specified in subsections (b) and (c) of this section.(b) We may provide a copy of a photograph or an audio or visual recording, depiction, or documentation of a child in our records to any of the following:(1) Texas Department of Family and Protective Services staff, including volunteers, as necessary to perform their assigned duties;(2) Child Care Licensing (CCL) in order to carry out its regulatory functions under HRC, Chapter 42;(3) Law enforcement for the purpose of investigating allegations of child abuse, neglect, or exploitation; failure to report child abuse, neglect, or exploitation; or false or malicious reporting of alleged child abuse, neglect, or exploitation;(4) An administrative law judge or a judge of a court of competent jurisdiction in a criminal or civil case to which the inspection or investigation is relevant;(5) The parent of the child; and(6) Any other person authorized by state or federal law to have a copy.(c) The following persons may review a photograph or an audio or visual recording, depiction, or documentation of a child in our records, but may not have a copy:(1) An attorney ad litem, guardian ad litem, or court appointed special advocate of an alleged victim of child abuse, neglect, or exploitation;(2) The operation cited for a deficiency by CCL as a result of the investigation during which the photograph was taken or the audio or visual recording, depiction, or documentation was made;(3) The single-source continuum contractor (SSCC) for community-based care when:(A) The SSCC subcontracts with the child care operation where the investigation occurred;(B) The operation has signed a release of information; and(C) CCL cited the operation for a deficiency as a result of the investigation during which the photograph was taken or the audio or visual recording, depiction, or documentation was made;(4) The alleged or designated perpetrator of an abuse, neglect or exploitation investigation during which the photograph was taken or the audio or visual recording, depiction, or documentation was made to support or verify the abuse, neglect, or exploitation finding;(5) A prospective adoptive parent of the child, as provided in Texas Family Code §162.0062.</content><note type="source"><p>Source Note: The provisions of this §707.769 adopted to be effective July 15, 2020, 45 TexReg 4780.</p></note></section><section identifier="/us/state/tx/tac/t40/p19/c707/scC/s707.781"><num value="707.781">§707.781</num><heading>What is the purpose of this division?</heading><content>The purpose of this division is to further supplement and clarify the definitions in Texas Family Code §261.001 related to an investigation of abuse, neglect, and exploitation by a person responsible for a child's care, custody, or welfare in a child care operation.</content><note type="source"><p>Source Note: The provisions of this §707.781 adopted to be effective July 15, 2020, 45 TexReg 4780.</p></note></section><section identifier="/us/state/tx/tac/t40/p19/c707/scC/s707.783"><num value="707.783">§707.783</num><heading>Who is considered a person responsible for a child's care, custody, or welfare for purposes of a child abuse, neglect, or exploitation investigation in a child care operation?</heading><content>(a) Texas Family Code §261.001(5) includes the following as a "person responsible for a child's care, custody, or welfare" in a child care operation:(1) Foster parent of the child;(2) Personnel or a volunteer at a public or private child-care facility that provides services for the child or at a public or private residential institution or facility where the child resides; and(3) An employee, volunteer, or other person working under the supervision of a licensed or unlicensed child-care facility, including a family home, residential child-care facility, employer-based day-care facility, or shelter day-care facility, as those terms are defined in Chapter 42, Texas Human Resources Code.(b) For purposes of paragraph (3) of subsection (a), "an employee, volunteer, or other person working under the supervision of a licensed or unlicensed child-care facility" means any person working under the auspices of a child care operation and includes:(1) Any employee or volunteer of the operation;(2) Any person under contract with the operation;(3) A director, owner, operator, or administrator of an operation;(4) Anyone who has responsibility for the children in care;(5) Anyone who has unsupervised access to the children in care;(6) Anyone who regularly or routinely lives or is present at the operation; and(7) Any other person permitted by act or omission to have access to children in care.</content><note type="source"><p>Source Note: The provisions of this §707.783 adopted to be effective July 15, 2020, 45 TexReg 4780.</p></note></section><section identifier="/us/state/tx/tac/t40/p19/c707/scC/s707.785"><num value="707.785">§707.785</num><heading>What do certain words and terms mean when used in this division?</heading><content>The following words and terms used in this division have the following meanings unless the context clearly indicates otherwise:(1) "Omission" means a failure to act.(2) "Reasonable effort to prevent" a type of abuse, including trafficking, means an action that a person responsible for a child's care, custody, or welfare would have taken to protect a child from the abuse that the person knew or reasonably should have known occurred or was occurring. It is not required for that person to have directly perpetrated the abuse.(3) "Substantial risk" means a real and significant possibility or likelihood.</content><note type="source"><p>Source Note: The provisions of this §707.785 adopted to be effective July 15, 2020, 45 TexReg 4780.</p></note></section><section identifier="/us/state/tx/tac/t40/p19/c707/scC/s707.787"><num value="707.787">§707.787</num><heading>What is emotional abuse?</heading><content>(a) Emotional abuse is a subset of the statutory definitions of abuse that appear in Texas Family Code §261.001(1) and includes the following acts or omissions by a person:(1) Mental or emotional injury to a child that results in an observable and material impairment in the child's growth, development, or psychological functioning;(2) Causing or permitting the child to be in a situation in which the child sustains a mental or emotional injury that results in an observable and material impairment in the child's growth, development, or psychological functioning; or(3) The current use by a person of a controlled substance as defined by Chapter 481, Health and Safety Code, in a manner or to the extent that the use results in mental or emotional injury to a child.(b) In this section, the following terms have the following meanings:(1) "Mental or emotional injury" means:(A) That a child of any age experiences any significant change in the child's physical health, intellectual development, or social behavior, including changes in sleeping and eating patterns, changes in school, or depression. The child does not have to experience physical injury or be diagnosed by a medical or mental health professional in order for us to determine that the child suffers from a mental or emotional injury. However, when assessing the child, we must consult with professional collaterals outside of the Texas Department of Family and Protective Services that have witnessed and validated that the child is exhibiting behaviors that show an observable and material impairment as specified in paragraph (2) of this subsection. If a medical or mental health professional examines the child, we will consult with the medical or mental health professional prior to making a finding.(B) For purposes of paragraph (3) of subsection (a), "mental or emotional injury" resulting from a person's current use of a controlled substance includes a child of any age experiencing interference with normal psychological development, functioning, or emotional or mental stability, as evidenced by an observable and substantial change in behavior, emotional response, or cognition, related to the person's current use of a controlled substance.(2) "Observable and material impairment" means discernible and substantial damage or deterioration to a child's emotional, social, and cognitive development. It may include but is not limited to depression; anxiety; panic attacks; suicide attempts; compulsive and obsessive behaviors; acting out or exhibiting chronic or acute aggressive behavior directed toward self or others; withdrawal from normal routine and relationships; memory lapse; decreased concentration; difficulty or inability to make decisions; or a substantial and observable change in behavior, emotional response, or cognition.</content><note type="source"><p>Source Note: The provisions of this §707.787 adopted to be effective July 15, 2020, 45 TexReg 4780.</p></note></section><section identifier="/us/state/tx/tac/t40/p19/c707/scC/s707.789"><num value="707.789">§707.789</num><heading>What is physical abuse?</heading><content>(a) Physical abuse is a subset of the statutory definitions of abuse that appear in Texas Family Code §261.001(1) and includes the following acts or omissions by a person:(1) Physical injury that results in substantial harm to the child, or the genuine threat of substantial harm from physical injury to the child, including an injury that is at variance with the history or explanation given and excluding an accident;(2) Failure to make a reasonable effort to prevent an action by another person that results in physical injury that results in substantial harm to the child;(3) The current use by a person of a controlled substance as defined by Chapter 481, Health and Safety Code, in a manner or to the extent that the use results in physical injury to a child; or(4) Causing, expressly permitting, or encouraging a child to use a controlled substance as defined by Chapter 481, Health and Safety Code.(b) In this section, the following terms have the following meanings:(1) "Accident" means an unforeseen, unexpected, or unplanned act or event that occurs unintentionally and causes or threatens physical injury despite exercising the care and diligence that a reasonable and prudent person would exercise under similar circumstances to avoid the risk of injury.(2) "Genuine threat of substantial harm from physical injury" means exposing the child to any risk of suffering a physical injury. This does not require actual physical contact or injury. It may include but is not limited to the following acts: striking, shoving, shaking, or hitting a child, whether intended as discipline or not.(3) "Physical injury that results in substantial harm to the child" means any bodily harm, including but not limited to scratches; scrapes; cuts, welts, red marks; skin bruising; lacerations, pinch marks; sprains; dislocated, fractured, or broken bones; concussions; burns; and damage to internal organs. When determining whether the harm is substantial, we may consider factors including but not limited to the location of the harm; the child's age, physical condition, psychological functioning, and level of maturity; any special needs the child may have; and other relevant factors.</content><note type="source"><p>Source Note: The provisions of this §707.789 adopted to be effective July 15, 2020, 45 TexReg 4780.</p></note></section><section identifier="/us/state/tx/tac/t40/p19/c707/scC/s707.791"><num value="707.791">§707.791</num><heading>What is sexual abuse?</heading><content>(a) Sexual abuse is a subset of the statutory definitions of abuse that appear in Texas Family Code §261.001(1) and includes the following acts or omissions by a person:(1) Sexual conduct harmful to a child's mental, emotional, or physical welfare, including:(A) Conduct that constitutes the offense of continuous sexual abuse of young child or disabled individual under §21.02, Penal Code;(B) Indecency with a child under §21.11, Penal Code;(C) Sexual assault under §22.011, Penal Code; or(D) Aggravated sexual assault under §22.021, Penal Code;(2) Failure to make a reasonable effort to prevent sexual conduct harmful to a child;(3) Compelling or encouraging the child to engage in sexual conduct as defined by §43.01, Penal Code, including compelling or encouraging the child in a manner that constitutes an offense of:(A) Trafficking of persons under §20A.02(a)(7) or (8), Penal Code;(B) Solicitation of prostitution under §43.021, Penal Code; or(C) Compelling prostitution under §43.05(a)(2), Penal Code;(4) Causing, permitting, encouraging, engaging in, or allowing the photographing, filming, or depicting of the child if the person knew or should have known that the resulting photograph, film, or depiction of the child is obscene as defined by §43.21, Penal Code, or pornographic; or(5) Causing, permitting, encouraging, engaging in, or allowing a sexual performance by a child as defined by §43.25, Penal Code.(b) In this section, the following terms have the following meanings:(1) "Causing, permitting, encouraging, engaging in, or allowing" the photographing, filming, or depicting of, or sexual performance by, a child as described in paragraphs ((4) and (5) of subsection (a) is not limited to actions the child was forced or coerced to participate in. The definition of sexual abuse is met even if the child voluntarily participates in the action.(2) "Compelling or encouraging the child to engage in sexual conduct" as described in paragraph (3) of subsection (a) does not require that the child actually engage in sexual conduct. The definition of sexual abuse is met as long as there is a substantial risk of a child engaging in the sexual conduct.(3) "Pornographic" or "pornography" means material that visually depicts a child younger than 18 years of age at the time the image of the child was made who is engaging in sexual conduct in accordance with Texas Penal Code §43.26.(4) "Sexual conduct harmful to a child's mental, emotional or physical welfare" includes but is not limited to rape; incest; sodomy; inappropriate touching of the child's anus, breast, or genitals, including touching under or on top of the child's clothing; deliberately exposing one's anus, breast, or any part of the genitals to a child; touching the child in a sexual manner or directing sexual behavior towards the child; showing pornography to a child; encouraging a child to watch or hear sexual acts; compelling, encouraging, or permitting a child to engage in prostitution; watching a child undress, shower, or use the bathroom with the intent to arouse or gratify one's sexual desire; voyeurism; sexually oriented acts, which may or may not include sexual contact or touching with intent to arouse or gratify the sexual desire of any person; and any sexually oriented act or practice that would cause a reasonable child under the same circumstance to feel uncomfortable or intimidated or that results in harm or substantial risk of harm to a child's growth, development, or psychological functioning.(c) For purposes of subparagraph (A) of paragraph (1) of subsection (a), we will investigate conduct that constitutes continuous sexual abuse of a child as long the child is under 18 years of age and regardless of any disabilities the child may have.</content><note type="source"><p>Source Note: The provisions of this §707.791 adopted to be effective July 15, 2020, 45 TexReg 4780; amended to be effective September 22, 2022, 47 TexReg 6250.</p></note></section><section identifier="/us/state/tx/tac/t40/p19/c707/scC/s707.793"><num value="707.793">§707.793</num><heading>What is labor trafficking?</heading><content>(a) Labor trafficking is a subset of the statutory definitions of abuse that appear in Texas Family Code §261.001(1) and includes the following acts or omissions by a person:(1) Knowingly causing, permitting, encouraging, engaging in, or allowing a child to be trafficked in a manner punishable as an offense under §20A.02(a)(5) or (6), Penal Code; or(2) The failure to make a reasonable effort to prevent a child from being trafficked in a manner punishable as an offense under §20A.02(a)(5) or (6), Penal Code.(b) In this section, "trafficked" means enticing, recruiting, harboring, transporting, enslaving, or providing to others or obtaining for oneself a child for labor or services through force, fraud, coercion, or exploitation. It involves giving or receiving monetary or nonmonetary remuneration, including the child's services, and a pervasive loss of freedom for the child.(c) Labor trafficking does not require that the child actually engage in forced labor or services. The definition of labor trafficking is met as long as there is a substantial risk of the child engaging in forced labor or services.(d) When determining whether a child is a victim of labor trafficking, we evaluate the totality of circumstances, including evidence that the child is being controlled by threats of deportation or physical or other types of harm to the child or the child's family; evidence of withholding or destroying of the child's legal documents; causing the child or child's family to become indebted to the trafficker; restricting the child's movement, communication, or ability to live a normal life; the detrimental nature of the work to the health, safety, or well-being of the child; or using physical, verbal or sexual intimidation or other types of manipulation to cause the child to feel helpless or in fear of the trafficker.</content><note type="source"><p>Source Note: The provisions of this §707.793 adopted to be effective July 15, 2020, 45 TexReg 4780.</p></note></section><section identifier="/us/state/tx/tac/t40/p19/c707/scC/s707.795"><num value="707.795">§707.795</num><heading>What is sex trafficking?</heading><content>(a) Sex trafficking is a subset of the statutory definitions of abuse that appear in Texas Family Code §261.001(1) and includes the following acts or omissions by a person:(1) Knowingly causing, permitting, encouraging, engaging in, or allowing a child to be trafficked in a manner punishable as an offense under §20A.02(a)(7) or (8), Penal Code; or(2) The failure to make a reasonable effort to prevent a child from being trafficked in a manner punishable as an offense under §20A.02(a)(7) or (8), Penal Code.(b) In this section, "trafficked" means enticing, luring, recruiting, harboring, transporting, enslaving, selling, or holding captive a child for sexual conduct specified in Penal Code §20A.02(a)(7). It involves giving or receiving monetary or nonmonetary remuneration, including the child's sexual services, and a pervasive loss of freedom for the child.(c) Sex trafficking does not require force, fraud, or coercion. The definition of sex trafficking is met even if it appears that the child is in agreement with the conduct or does not consider herself or himself to be a victim of sex trafficking.(d) When determining whether a child is a victim of sex trafficking, we evaluate the totality of circumstances, including evidence that the child is being controlled by threats of deportation or physical or other types of harm to the child or the child's family; evidence of withholding or destroying of the child's legal documents; causing the child or child's family to become indebted to the trafficker; restricting the child's movement, communication, or ability to live a normal life; or using physical, verbal, or other types of intimidation or manipulation to cause the child to feel helpless or in fear of the trafficker.</content><note type="source"><p>Source Note: The provisions of this §707.795 adopted to be effective July 15, 2020, 45 TexReg 4780.</p></note></section><section identifier="/us/state/tx/tac/t40/p19/c707/scC/s707.797"><num value="707.797">§707.797</num><heading>What is forced marriage?</heading><content>Forced marriage is a subset of the statutory definitions of neglect that appear in Texas Family Code §261.001(1) and includes the following act or omission by a person: forcing or coercing a child to enter into a marriage.</content><note type="source"><p>Source Note: The provisions of this §707.797 adopted to be effective July 15, 2020, 45 TexReg 4780.</p></note></section><section identifier="/us/state/tx/tac/t40/p19/c707/scC/s707.799"><num value="707.799">§707.799</num><heading>What is exploitation?</heading><content>(a) Exploitation is a statutory definition that appear in Texas Family Code §261.001(3) and involves the illegal or improper use of a child or of the resources of a child for monetary or personal benefit, profit, or gain by an employee, volunteer, or other individual working under the auspices of a child care facility or program.(b) In this section, "employee, volunteer, or other individual working under the auspices of a facility or program" has the same definition as specified in §707.783(b) in this division (relating to Who is considered a person responsible for a child's care, custody, or welfare for purposes of a child abuse, neglect, or exploitation investigation in a child care operation?).</content><note type="source"><p>Source Note: The provisions of this §707.799 adopted to be effective July 15, 2020, 45 TexReg 4780.</p></note></section><section identifier="/us/state/tx/tac/t40/p19/c707/scC/s707.801"><num value="707.801">§707.801</num><heading>What is neglect?</heading><content>(a) Neglect is defined in Texas Family Code (TFC) §261.001 as an act or failure to act by a person responsible for a child's care, custody, or welfare evidencing the person's blatant disregard for the consequences of the act or failure to act that results in harm to the child or that creates an immediate danger to the child's physical health or safety. Neglect for purposes of an investigation in a child care operation is further defined in TFC §261.001(4)(A)(iv) as a negligent act or omission by an employee, volunteer, or other individual working under the auspices of a facility or program, including failure to comply with an individual treatment plan, plan of care, or individualized services plan that causes or may cause substantial emotional harm or physical injury to, or the death of, a child served by the facility or program as further described by rule or policy.(b) In this section, the following terms have the following meanings:(1) "Negligent act or omission" means a breach of duty by an employee, volunteer, or other individual working under the auspices of a facility or program that causes or may cause substantial emotional harm or substantial physical injury to a child and includes the following:(A) Failure to take an action that a reasonable member of that profession, reasonable caregiver, or reasonable person should take in the same situation;(B) Taking an action that a reasonable member of that profession, reasonable caregiver, or reasonable person should not take in the same situation;(C) Placing a child in or failing to remove him from a situation that a reasonable member of that profession, reasonable caregiver, or reasonable person would realize requires judgment or actions beyond the child's level of maturity, physical condition, or mental abilities;(D) Leaving a child in a situation where a reasonable member of that profession, reasonable caregiver, or reasonable person would expect the child to be exposed to substantial emotional harm or substantial physical injury without arranging for necessary care for the child;(E) Failure to seek, to obtain, or to follow through with medical care for a child;(F) Failure to provide a child with food, clothing, and shelter necessary to sustain the life or health of the child;(G) Placing a child in or failing to remove the child from a situation in which a reasonable member of that profession, reasonable caregiver, or reasonable person should know exposes the child to immediate danger of sexual conduct;(H) Causing, expressly permitting, or encouraging a child to use alcohol;(I) Using alcohol in a manner or to the extent that the use results in substantial emotional harm or physical injury to a child;(J) A violation or deficiency of any law, rule, or minimum standard that causes substantial emotional harm or physical injury to a child;(K) Repeated (two or more) violations of any law, rule, or minimum standard, after notice and an opportunity to correct the violation, that may cause substantial emotional harm or physical injury to a child;(L) Failure to comply with an individual treatment plan, plan of service, or individualized service plan that causes or may cause substantial emotional harm or physical injury to a child; and(M) Repeated failures (two or more) to comply with an individual treatment plan, plan of service, or individualized service plan, after notice and an opportunity to correct the failure, that may cause substantial emotional harm or physical injury to a child.(2) Blatant disregard means that the real and significant harm or threat of harm to the child as a result of act(s) or omission(s) by the employee, volunteer, or other individual working under the auspices of a facility or program:(A) Would have been obvious to a reasonable caregiver or a reasonable member of the individual's profession in the same situation; and(B) The reasonable caregiver or reasonable member of the individual's profession would have known to take precautionary measures to protect the child from the impending harm.(3) "Employee, volunteer, or other individual working under the auspices of a facility or program" has the same definition as specified in §707.783(b) in this division (relating to Who is considered a person responsible for a child's care, custody, or welfare for purposes of a child abuse, neglect, or exploitation investigation in a child care operation?).(4) Immediate danger to child's physical health or safety means the act(s) or omission(s) by the employee, volunteer, or other individual working under the auspices of a facility or program placed the child in a situation that resulted in or would have resulted in substantial emotional harm or substantial physical injury to the child.(5) Substantial emotional harm means an observable impairment in a child's psychological growth, development, or functioning that is significant enough to require treatment by a medical or mental health professional. Evidence that the emotional harm is substantial includes the nature of the act or omission, the age of the child, and/or the persistence of the symptoms. Substantial emotional harm is presumed when the act or omission is of a sexual nature, the child acts out sexually, or the child attempts suicide. A mental health professional does not have to determine that there is substantial emotional harm.(6) Substantial physical injury means bodily harm that warrants treatment by a medical professional, including dislocated, fractured, or broken bones; concussions; lacerations requiring stitches; second and third degree burns; and damage to internal organs. Evidence that physical injury is substantial includes the location and/or severity of the bodily harm and/or the age of the child.</content><note type="source"><p>Source Note: The provisions of this §707.801 adopted to be effective July 15, 2020, 45 TexReg 4780; amended to be effective September 22, 2022, 47 TexReg 6250.</p></note></section><section identifier="/us/state/tx/tac/t40/p19/c707/scC/s707.803"><num value="707.803">§707.803</num><heading>When will we use the "reasonable and prudent parent standard" in conducting an investigation in a child care operation?</heading><content>We will use the "reasonable and prudent parent standard" as defined in Texas Family Code §264.001(5) when we investigate whether:(1) A child-placing agency or general residential operation was deficient in violation of a standard, rule, or other law because a foster parent or designated person:(A) Allowed a child to participate in a childhood activity; or(B) Denied a child access to a childhood activity or activities; or(2) A foster parent or designated person breached a duty in §707.801 in this division (relating to What is neglect?) by allowing a child to participate in a childhood activity.</content><note type="source"><p>Source Note: The provisions of this §707.803 adopted to be effective July 15, 2020, 45 TexReg 4780.</p></note></section><section identifier="/us/state/tx/tac/t40/p19/c707/scC/s707.815"><num value="707.815">§707.815</num><heading>What is an administrative review?</heading><content>An administrative review is an informal review we conduct at the request of a designated perpetrator to determine whether the Reason to Believe finding of abuse, neglect, or exploitation is supported by a preponderance of evidence. The review is not a formal hearing and therefore does not involve formal examination and cross-examination of witnesses.</content><note type="source"><p>Source Note: The provisions of this §707.815 adopted to be effective July 15, 2020, 45 TexReg 4780.</p></note></section><section identifier="/us/state/tx/tac/t40/p19/c707/scC/s707.817"><num value="707.817">§707.817</num><heading>Who may request an administrative review?</heading><content>A designated perpetrator may request an administrative review for a finding of abuse, neglect, or exploitation.</content><note type="source"><p>Source Note: The provisions of this §707.817 adopted to be effective July 15, 2020, 45 TexReg 4780.</p></note></section><section identifier="/us/state/tx/tac/t40/p19/c707/scC/s707.819"><num value="707.819">§707.819</num><heading>How does a designated perpetrator request an administrative review?</heading><content>(a) To request an administrative review you must submit a written request by postal mail, fax, or email to the name and address indicated in our notification letter.(b) The written request must:(1) Describe the specific abuse, neglect, or exploitation finding(s) that you are disputing; and(2) Include any documentation that supports your position, such as photographs, diagrams, or written and signed statements.(c) The written request must be sent within 15 calendar days after you receive our notification of your right to an administrative review. Requests received in the mail must be postmarked within 15 calendar days.</content><note type="source"><p>Source Note: The provisions of this §707.819 adopted to be effective July 15, 2020, 45 TexReg 4780.</p></note></section><section identifier="/us/state/tx/tac/t40/p19/c707/scC/s707.821"><num value="707.821">§707.821</num><heading>Who conducts the administrative review?</heading><content>The relevant Child Care Investigations' division administrator or a designee may conduct the review. The designee must not have been involved in or directly supervised the abuse, neglect, or exploitation investigation.</content><note type="source"><p>Source Note: The provisions of this §707.821 adopted to be effective July 15, 2020, 45 TexReg 4780.</p></note></section><section identifier="/us/state/tx/tac/t40/p19/c707/scC/s707.823"><num value="707.823">§707.823</num><heading>How is the administrative review conducted?</heading><content>(a) Administrative reviews are generally conducted by telephone, although we may conduct the review in a face-to-face meeting at our office.(b) We will contact you within 10 calendar days of receiving your written request for an administrative review to schedule a time to conduct the review. The telephone conference or meeting must occur within 30 days of the date of this initial contact unless additional time is necessary in order for us to comply with your request for records related to the subject of the administrative review. If additional time is necessary, then the 30-day timeframe for completing the telephone conference or meeting will begin when you obtain the records.(c) We will proceed with the administrative review without conducting the telephone conference or meeting if:(1) You do not respond to our attempts to contact you to schedule the telephone conference or meeting;(2) You do not schedule the conference or meeting within the 30-day timeframe, unless the person conducting the review finds that there is good cause to schedule the conference or meeting at a later date; or(3) You miss the scheduled conference or meeting without requesting a delay under subsection (d) of this section.(d) If you believe there is good cause to delay the telephone conference or meeting, then before the scheduled conference or meeting you must present your request and reason for a delay in writing to the person conducting the review. The person conducting the review will make a decision regarding good cause based on policy developed by the Texas Department of Family and Protective Services.(e) Following the telephone conference or meeting, we will review the investigation file and any additional documentation provided by you, may ask additional questions, and may gather other relevant information, as needed.</content><note type="source"><p>Source Note: The provisions of this §707.823 adopted to be effective July 15, 2020, 45 TexReg 4780.</p></note></section><section identifier="/us/state/tx/tac/t40/p19/c707/scC/s707.825"><num value="707.825">§707.825</num><heading>What actions regarding an abuse, neglect, or exploitation finding may we take at the conclusion of the administrative review?</heading><content>(a) Regardless of whether we conducted a telephone conference or meeting, the Child Care Investigations' division administrator or designee will uphold, reverse, or alter the abuse, neglect, or exploitation finding. If we proceed with the administrative review without conducting the telephone conference or meeting based on one of the reasons outlined in §707.823(c) of this division (relating to How is the administrative review conducted?), the decision to uphold, reverse, or alter the finding will be based on your written request and any supporting documentation submitted with your request.(b) If the finding is reversed or altered, we will:(1) update our records to reflect the change; and(2) inform any operation previously notified of the investigation findings under §707.745(a)(4) of Division 2 (relating to Whom will we inform of the abuse, neglect, or exploitation investigation results?) of the reversal or change within five calendar days.(c) If the finding is reversed, we will also remove your name from the Texas Department of Family and Protective Services Central Registry.</content><note type="source"><p>Source Note: The provisions of this §707.825 adopted to be effective July 15, 2020, 45 TexReg 4780; amended to be effective January 3, 2022, 46 TexReg 9417.</p></note></section><section identifier="/us/state/tx/tac/t40/p19/c707/scC/s707.827"><num value="707.827">§707.827</num><heading>When will a decision regarding the administrative review be issued?</heading><content>The Child Care Investigations' division administrator or designee will prepare and send a written decision to you within 30 calendar days of conducting the telephone conference or meeting or within 60 days of the request for an administrative review if we proceed with the administrative review without conducting the telephone conference or meeting based on one of the reasons outlined in §707.823(c) of this division (relating to How is the administrative review conducted?), unless good cause exists to extend the time frame according to Child Care Investigations policy.</content><note type="source"><p>Source Note: The provisions of this §707.827 adopted to be effective July 15, 2020, 45 TexReg 4780.</p></note></section><section identifier="/us/state/tx/tac/t40/p19/c707/scC/s707.829"><num value="707.829">§707.829</num><heading>Can a designated perpetrator waive the right to an administrative review?</heading><content>You will waive your right to an administrative review if:(1) You do not request an administrative review according to §707.819 in this division (relating to How does a designated perpetrator request an administrative review?); or(2) You submit a written statement to us stating that you would like to waive your right to the administrative review.</content><note type="source"><p>Source Note: The provisions of this §707.829 adopted to be effective July 15, 2020, 45 TexReg 4780.</p></note></section><section identifier="/us/state/tx/tac/t40/p19/c707/scC/s707.831"><num value="707.831">§707.831</num><heading>What happens if a designated perpetrator waives the right to an administrative review?</heading><content>The abuse, neglect, or exploitation finding will remain the same, and we will forward you a notice of your right to a due process hearing.</content><note type="source"><p>Source Note: The provisions of this §707.831 adopted to be effective July 15, 2020, 45 TexReg 4780.</p></note></section><section identifier="/us/state/tx/tac/t40/p19/c707/scC/s707.841"><num value="707.841">§707.841</num><heading>What is a due process hearing?</heading><content>A due process hearing is a formal legal proceeding that provides a designated perpetrator the right to challenge a finding of abuse, neglect, or exploitation in an impartial setting before an administrative law judge of the State Office of Administrative Hearings. The judge decides if the facts that existed at the time we made the finding meet the preponderance of evidence standard and decides whether to uphold, reverse, or alter the finding.</content><note type="source"><p>Source Note: The provisions of this §707.841 adopted to be effective July 15, 2020, 45 TexReg 4780.</p></note></section><section identifier="/us/state/tx/tac/t40/p19/c707/scC/s707.843"><num value="707.843">§707.843</num><heading>Who may request a due process hearing?</heading><content>A designated perpetrator may request a due process hearing for a finding of abuse, neglect, or exploitation.</content><note type="source"><p>Source Note: The provisions of this §707.843 adopted to be effective July 15, 2020, 45 TexReg 4780.</p></note></section><section identifier="/us/state/tx/tac/t40/p19/c707/scC/s707.845"><num value="707.845">§707.845</num><heading>How do I request a due process hearing?</heading><content>(a) To request a due process hearing you must send a written request to the Docket Clerk for Child Care Licensing in the Texas Health and Human Services Legal Services Division, Enforcement Department. The notice informing you of your right to request a due process hearing will include the mailing address, email address, or fax number where you may send your request.(b) The written request must:(1) Describe the specific abuse, neglect, or exploitation finding you are disputing; and(2) Include a copy of the notification letter informing you of your rights to a due process hearing.(c) For a written request to be timely:(1) If you send your request by regular mail, it must be postmarked within 30 days after you receive our notification of your right to request a due process hearing; or(2) You must fax or email your request within 30 days after you receive our notification of your right to request a due process hearing.</content><note type="source"><p>Source Note: The provisions of this §707.845 adopted to be effective July 15, 2020, 45 TexReg 4780.</p></note></section><section identifier="/us/state/tx/tac/t40/p19/c707/scC/s707.847"><num value="707.847">§707.847</num><heading>What happens after a designated perpetrator makes a request for a due process hearing?</heading><content>(a) After you request a due process hearing, the Texas Health and Human Services (HHSC) Legal Services Division will ask the State Office of Administrative Hearings to appoint an administrative law judge to conduct a hearing to make a final decision regarding the finding of abuse, neglect, or exploitation.(b) After the State Office of Administrative Hearings assigns a docket number to your case:(1) The HHSC Legal Services Division will send you a notice of the hearing by regular and certified mail to your last known address as shown by our records; or(2) If the Docket Clerk has received written notice of representation from an attorney who will be representing you at the hearing, the HHSC Legal Services Division will send the notice of the hearing to the attorney in a manner allowed under the rules referenced in §707.849 in this division (relating to How is a due process hearing conducted?).(c) You are responsible for providing the Docket Clerk with written notification of any change in your address that occurs after you have requested a due process hearing.</content><note type="source"><p>Source Note: The provisions of this §707.847 adopted to be effective July 15, 2020, 45 TexReg 4780.</p></note></section><section identifier="/us/state/tx/tac/t40/p19/c707/scC/s707.849"><num value="707.849">§707.849</num><heading>How is a due process hearing conducted?</heading><content>A due process hearing is conducted according to the following procedural rules which are incorporated into this rule by reference:(1) rules of the State Office Administrative Hearings (SOAH) found at 1 Texas Administrative Code Chapter 155 (relating to Rules of Procedure);(2) Texas Government Code, Chapter 2001, Administrative Procedures Act (APA) rules, to the extent that they do not conflict with the SOAH rules; and(3) the Texas Rules of Civil Procedure, to the extent that they do not conflict with the SOAH or APA rules.</content><note type="source"><p>Source Note: The provisions of this §707.849 adopted to be effective July 15, 2020, 45 TexReg 4780.</p></note></section><section identifier="/us/state/tx/tac/t40/p19/c707/scC/s707.851"><num value="707.851">§707.851</num><heading>Can due process hearings be combined?</heading><content>Yes. An administrative law judge (ALJ) may combine hearings that involve issues related to the same decision or action, including hearings from different agencies that are related. For example, if Child Care Licensing (CCL) takes an adverse action against your operation based on a finding of child abuse, neglect, or exploitation that we made, and you request a due process hearing on the abuse, neglect, or exploitation finding as well as the adverse action, then the ALJ may combine the hearing to listen to these related issues at the same time. Another example is when three different individuals are designated as perpetrators of abuse, neglect, or exploitation based on the same incident, and all three individuals request a due process hearing. In this situation, the ALJ may combine all three hearings to listen to the related abuse, neglect, or exploitation issues at the same time. However, the ALJ's judgment must reflect a determination on all of the individual due process requests before the ALJ.</content><note type="source"><p>Source Note: The provisions of this §707.851 adopted to be effective July 15, 2020, 45 TexReg 4780.</p></note></section><section identifier="/us/state/tx/tac/t40/p19/c707/scC/s707.853"><num value="707.853">§707.853</num><heading>What actions may the administrative law judge take on the abuse, neglect, or exploitation finding at the due process hearing?</heading><content>The administrative law judge may uphold, reverse, or modify an abuse, neglect, or exploitation finding that is the subject of the due process hearing.</content><note type="source"><p>Source Note: The provisions of this §707.853 adopted to be effective July 15, 2020, 45 TexReg 4780.</p></note></section><section identifier="/us/state/tx/tac/t40/p19/c707/scC/s707.855"><num value="707.855">§707.855</num><heading>What if I do not appear at my due process hearing?</heading><content>If you do not appear, the administrative law judge may enter a default decision that upholds the abuse, neglect, or exploitation finding.</content><note type="source"><p>Source Note: The provisions of this §707.855 adopted to be effective July 15, 2020, 45 TexReg 4780.</p></note></section><section identifier="/us/state/tx/tac/t40/p19/c707/scC/s707.857"><num value="707.857">§707.857</num><heading>What actions must we take in response to an administrative law judge's action regarding an abuse, neglect, or exploitation finding?</heading><content>(a) If the administrative law judge (ALJ) alters or reverses the finding, we will:(1) update our records to reflect the change; and(2) inform any operation previously notified of investigation findings under §707.745(a)(4) of Division 2 (relating to Whom will we inform of the abuse, neglect, or exploitation investigation results?) of the reversal or change within five calendar days.(b) If the ALJ reverses the finding, we will also remove your name from the Texas Department of Family and Protective Services (DFPS) Central Registry.(c) If the ALJ upholds the finding, we will:(1) change your designation from a "designated perpetrator" to a "sustained perpetrator" in the DFPS Central Registry; and(2) notify any operation previously notified of investigation findings under §707.745(a)(4) of Division 2 (relating to Whom will we inform of the abuse, neglect, or exploitation investigation results?) of the sustained finding after an appeal has occurred or the timeframe for filing an appeal has expired.</content><note type="source"><p>Source Note: The provisions of this §707.857 adopted to be effective July 15, 2020, 45 TexReg 4780; amended to be effective January 3, 2022, 46 TexReg 9417.</p></note></section><section identifier="/us/state/tx/tac/t40/p19/c707/scC/s707.859"><num value="707.859">§707.859</num><heading>Can I waive my right to a due process hearing?</heading><content>(a) You may waive your right to a due process hearing by:(1) Not requesting a due process hearing according to §707.845 in this division (relating to How do I request a due process hearing?);(2) Submitting a written statement to the appropriate Child Care Investigations investigator that you are waiving your right to the due process hearing before the 30-day timeframe has expired; or(3) If you have already requested a hearing, submitting a written statement to the Texas Health and Human Services Legal Services Division that you are waiving your right to the due process hearing.(b) If you waive your right to a due process hearing:(1) Because you did not make a timely request according to §707.845 in this division each abuse, neglect, or exploitation finding that was included in the letter informing you of your right to request a due process hearing will be effective on the day after your time period for requesting a due process hearing expires; or(2) By submitting a written statement waiving your right to a due process hearing, each finding will be effective on the date the waiver is received, as applicable.</content><note type="source"><p>Source Note: The provisions of this §707.859 adopted to be effective July 15, 2020, 45 TexReg 4780.</p></note></section></subchapter></chapter><chapter identifier="/us/state/tx/tac/t40/p19/c730"><num value="730">CHAPTER 730</num><heading>LEGAL SERVICES</heading><subchapter identifier="/us/state/tx/tac/t40/p19/c730/scB"><num value="B">SUBCHAPTER B</num><heading>RULES OF PRACTICE BEFORE THE TEXAS BOARD OF PROTECTIVE AND REGULATORY SERVICES</heading><section identifier="/us/state/tx/tac/t40/p19/c730/scB/s730.101"><num value="730.101">§730.101</num><heading>Definitions</heading><content>The following words and terms, when used in this chapter, shall have the following meanings, unless the context clearly indicates otherwise.(1) Board--The Texas Board of Protective and Regulatory Services.(2) Person--Any individual, including a member of the legislature, legislative employee, state officer, or state employee.</content><note type="source"><p>Source Note: The provisions of this §730.101 adopted to be effective January 1, 1976; duplicated effective September 1, 1992, as published in the Texas Register September 11, 1992, 17 TexReg 6279.</p></note></section><section identifier="/us/state/tx/tac/t40/p19/c730/scB/s730.102"><num value="730.102">§730.102</num><heading>Notice of Agenda</heading><content>The agenda of a board meeting will be furnished to the secretary of state for posting with the notice of the board meeting.</content><note type="source"><p>Source Note: The provisions of this §730.102 adopted to be effective January 1, 1976; duplicated effective September 1, 1992, as published in the Texas Register September 11, 1992, 17 TexReg 6279.</p></note></section><section identifier="/us/state/tx/tac/t40/p19/c730/scB/s730.103"><num value="730.103">§730.103</num><heading>Requests for Information</heading><content>Requests for information concerning the agenda of scheduled board meeting should be addressed to: Executive Director's Office, Texas Department of Protective and Regulatory Services, P.O. Box 149030, Austin, Texas 78714-9030.</content><note type="source"><p>Source Note: The provisions of this §730.103 adopted to be effective January 1, 1976; duplicated effective September 1, 1992, as published in the Texas Register September 11, 1992, 17 TexReg 6279.</p></note></section><section identifier="/us/state/tx/tac/t40/p19/c730/scB/s730.104"><num value="730.104">§730.104</num><heading>Submittal of Agenda Items</heading><content>Any person who wishes to place an item or subject on the agenda must submit his request in writing to the executive director. Requests will be considered by the chairman in the order received and placed on the agenda for the next appropriate regularly scheduled meeting.</content><note type="source"><p>Source Note: The provisions of this §730.104 adopted to be effective January 1, 1976; duplicated effective September 1, 1992, as published in the Texas Register September 11, 1992, 17 TexReg 6279.</p></note></section><section identifier="/us/state/tx/tac/t40/p19/c730/scB/s730.105"><num value="730.105">§730.105</num><heading>Appearance Before Board</heading><content>(a) Any person who wishes to appear before the board during a board meeting shall present himself in person at the meeting and present the registration form.(b) Based on the information in the registration form, the chairman of the board will determine those persons who will be permitted to appear before the board during the meeting.(c) Persons appearing before the board during a meeting must address themselves to subject matter which is on the agenda of the meeting in question.(d) The board may direct the Texas Department of Protective and Regulatory Services to hold a public hearing concerning a substantive rule which is pending before the board. In such a case, the board may direct persons wishing to appear before the board concerning the rule to make their presentation at the public hearing rather than the board meeting.</content><note type="source"><p>Source Note: The provisions of this §730.105 adopted to be effective January 1, 1976; duplicated effective September 1, 1992, as published in the Texas Register September 11, 1992, 17 TexReg 6279.</p></note></section></subchapter><subchapter identifier="/us/state/tx/tac/t40/p19/c730/scC"><num value="C">SUBCHAPTER C</num><heading>PROCEDURE FOR PUBLIC HEARINGS ON PROPOSED SUBSTANTIVE RULES</heading><section identifier="/us/state/tx/tac/t40/p19/c730/scC/s730.201"><num value="730.201">§730.201</num><heading>Request for Public Hearing</heading><content>Prior to the adoption of a substantive rule, opportunity for a public hearing will be granted by the Texas Department of Protective and Regulatory Services if requested by at least 25 persons, a governmental subdivision or agency, or by an association of at least 25 members, within 30 days of the effective date of notice established by publication of the proposed rule in the Texas Register. A public hearing will also be held by the department when directed by the Texas Board of Protective and Regulatory Services or the executive director of the Texas Department of Protective and Regulatory Services.</content><note type="source"><p>Source Note: The provisions of this §730.201 adopted to be effective January 1, 1976; duplicated effective September 1, 1992, as published in the Texas Register September 11, 1992, 17 TexReg 6279.</p></note></section><section identifier="/us/state/tx/tac/t40/p19/c730/scC/s730.202"><num value="730.202">§730.202</num><heading>Arrangements for Hearing</heading><content>(a) Such public hearing will be held in Austin, at a date, time, and place determined by the Texas Department of Protective and Regulatory Services.(b) The date, time, and place of the public hearing will be filed with the secretary of state to be posted and published in the Texas Register. Notice of the public hearing will also be sent by the department to those persons, governmental subdivisions or agencies, or associations of at least 25 members who have requested a public hearing within the 30-day period.</content><note type="source"><p>Source Note: The provisions of this §730.202 adopted to be effective January 1, 1976; duplicated effective September 1, 1992, as published in the Texas Register September 11, 1992, 17 TexReg 6279.</p></note></section><section identifier="/us/state/tx/tac/t40/p19/c730/scC/s730.203"><num value="730.203">§730.203</num><heading>Conduct of Hearing</heading><content>The presiding officer at the public hearing shall be the executive director of the Texas Department of Protective and Regulatory Services or his designee. The presiding officer will ensure that proper procedure and order are maintained throughout the public hearing. In addition, other Texas Department of Protective and Regulatory Services employees and persons requested by the department may be present to advise the presiding officer, answer questions from the public, and perform other functions considered appropriate by the presiding officer.</content><note type="source"><p>Source Note: The provisions of this §730.203 adopted to be effective January 1, 1976; duplicated effective September 1, 1992, as published in the Texas Register September 11, 1992, 17 TexReg 6279.</p></note></section><section identifier="/us/state/tx/tac/t40/p19/c730/scC/s730.204"><num value="730.204">§730.204</num><heading>Request for Appearance</heading><content>All individuals desiring to make an oral presentation at the public hearing shall submit to the Texas Department of Protective and Regulatory Services a request for appearance. This form shall be made available at the public hearing and must be filled out and presented to the presiding officer before the hearing begins. Persons wishing to speak who have not filled out the request for appearance form and presented it to the presiding officer before the hearing commences may speak at the discretion of the presiding officer and if time permits.</content><note type="source"><p>Source Note: The provisions of this §730.204 adopted to be effective January 1, 1976; duplicated effective September 1, 1992, as published in the Texas Register September 11, 1992, 17 TexReg 6279.</p></note></section><section identifier="/us/state/tx/tac/t40/p19/c730/scC/s730.205"><num value="730.205">§730.205</num><heading>Opening Hearing</heading><content>(a) The presiding officer shall open the public hearing by calling the hearing to order and presenting a concise statement of the proposed rule in question and the reason for the hearing.(b) After the opening statement the presiding officer shall announce the order of appearance of the speakers and an equal time limit for each based on the number of request received to appear at the hearing and the estimated time necessary to make the presentation.</content><note type="source"><p>Source Note: The provisions of this adopted §730.205 to be effective January 1, 1976; duplicated effective September 1, 1992, as published in the Texas Register September 11, 1992, 17 TexReg 6279.</p></note></section><section identifier="/us/state/tx/tac/t40/p19/c730/scC/s730.206"><num value="730.206">§730.206</num><heading>Speakers' Time Periods</heading><content>There shall be no more than one time period allowed for each person, organization or group, association, or agency wishing to speak unless in the opinion of the presiding officer an additional time period is warranted and can be granted without interfering with the opportunity of others to speak.</content><note type="source"><p>Source Note: The provisions of this §730.206 adopted to be effective January 1, 1976; duplicated effective September 1, 1992, as published in the Texas Register September 11, 1992, 17 TexReg 6279.</p></note></section><section identifier="/us/state/tx/tac/t40/p19/c730/scC/s730.207"><num value="730.207">§730.207</num><heading>Subject Restriction</heading><content>Speakers must address themselves to the subject matter of the hearing. The presiding officer may reduce speaking time of speakers who do not abide by the provisions of this section. Written submissions may be presented to the presiding officer immediately preceding and immediately after the hearing.</content><note type="source"><p>Source Note: The provisions of this §730.207 adopted to be effective January 1, 1976; duplicated effective September 1, 1992, as published in the Texas Register September 11, 1992, 17 TexReg 6279.</p></note></section><section identifier="/us/state/tx/tac/t40/p19/c730/scC/s730.208"><num value="730.208">§730.208</num><heading>Time Limit for Hearing</heading><content>The total time limit for the public hearing shall not be longer than six hours. As circumstances warrant, the presiding officer may close the hearing any time before reaching the six-hour limit.</content><note type="source"><p>Source Note: The provisions of this §730.208 adopted to be effective January 1, 1976; duplicated effective September 1, 1992, as published in the Texas Register September 11, 1992, 17 TexReg 6279.</p></note></section><section identifier="/us/state/tx/tac/t40/p19/c730/scC/s730.209"><num value="730.209">§730.209</num><heading>Record and Report to Board</heading><content>(a) A hearing secretary shall make a record of the public hearing either by electronic recording or by written minutes, at the option of the Texas Department of Protective and Regulatory Services.(b) A report outlining arguments and submissions presented at the public hearing will be presented for Texas Board of Protective and Regulatory Services consideration at the next appropriate board meeting after the hearing. The report may include department analysis and recommendations concerning the rule in question and issues raised at the public hearing as well as any action taken by the department.</content><note type="source"><p>Source Note: The provisions of this §730.209 adopted to be effective January 1, 1976; duplicated effective September 1, 1992, as published in the Texas Register September 11, 1992, 17 TexReg 6279.</p></note></section><section identifier="/us/state/tx/tac/t40/p19/c730/scC/s730.210"><num value="730.210">§730.210</num><heading>Response to Public Comments</heading><content>The Texas Department of Protective and Regulatory Services shall consider fully all written and oral submissions concerning the proposed rule. On adoption of a rule, the department, if requested to do so by an interested person either prior to adoption or within 30 days after adoption, shall issue a concise statement of the principal reasons for and against its adoption, incorporating in the statements its reasons for overruling the consideration urged against its adoption.</content><note type="source"><p>Source Note: The provisions of this §730.210 adopted to be effective January 1, 1976; duplicated effective September 1, 1992, as published in the Texas Register September 11, 1992, 17 TexReg 6279.</p></note></section></subchapter><subchapter identifier="/us/state/tx/tac/t40/p19/c730/scD"><num value="D">SUBCHAPTER D</num><heading>RULEMAKING PROCEDURES</heading><section identifier="/us/state/tx/tac/t40/p19/c730/scD/s730.301"><num value="730.301">§730.301</num><heading>Petition for Proposed Rulemaking</heading><content>(a) Any individuals or groups, including department employees, may submit a rule for consideration by the Texas Department of Protective and Regulatory Services (PRS). Rulemaking petitions must be in the form of a letter that is addressed to Texas Department of Protective and Regulatory Services, Policy and Document Support--MC E-503, 701 West 51st Street, P.O. Box 149030, Austin, Texas 78714-9030, and that contains the following information:(1) a brief explanation of the proposed rule;(2) the text of the proposed rule, in the exact form proposed for adoption;(3) a statement of the statutory or other authority under which the rule is to be promulgated;(4) a suggested date of adoption;(5) the public benefit anticipated as a result of adopting the rule;(6) the petitioner's name, mailing address, and telephone number; and(7) the petitioner's signature.(b) Within 60 days after the postmark date of the envelope containing the petition, PRS will either initiate the rulemaking procedures or deny the petition and state the reasons for denial in writing.</content><note type="source"><p>Source Note: The provisions of this §730.301 adopted to be effective November 22, 1976, 1 TexReg 3187; amended to be effective June 1, 1991, 16 TexReg 2305; duplicated effective September 1, 1992, as published in the Texas Register September 11, 1992, 17 TexReg 6279.</p></note></section><section identifier="/us/state/tx/tac/t40/p19/c730/scD/s730.302"><num value="730.302">§730.302</num><heading>Advance Notice</heading><content>When requests for advance notice of the Texas Department of Protective and Regulatory Services' (PRS's) rulemaking proceedings are received, the Policy and Document Support Section will provide the requesting individuals with notice of the proposed rules at the same time that notice of the proposed rules is filed with the secretary of state. The requests for advance notice may be one-time requests specifying certain rules or they may be ongoing requests for general categories of rules.</content><note type="source"><p>Source Note: The provisions of this §730.302 adopted to be effective November 22, 1976, 1 TexReg 3187; amended to be effective June 1, 1991, 16 TexReg 2305; duplicated effective September 1, 1992, as published in the Texas Register September 11, 1992, 17 TexReg 6279.</p></note></section><section identifier="/us/state/tx/tac/t40/p19/c730/scD/s730.303"><num value="730.303">§730.303</num><heading>Public Comment on Proposed Rules</heading><content>(a) Prior to the adoption of proposed rules, the Texas Department of Protective and Regulatory Services provides all interested persons a reasonable opportunity to submit data, views, or arguments, either orally or in writing.(b) Written comments must be submitted to Policy and Document Support--MC E-503, Texas Department of Protective and Regulatory Services, 701 West 51st Street, P.O. Box 149030, Austin, Texas 78714-9030 during the 30-calendar-day comment period, which begins on the date the proposed rule was published in the Texas Register, as specified by state law.(c) If a public hearing has been scheduled on a proposed rule, individuals wishing to submit oral comment may appear at the hearing and testify. If no public hearing has been scheduled, oral comments are accepted by the responsible program staff, and are documented on the appropriate departmental form for consideration in preparing the proposed rule for adoption.</content><note type="source"><p>Source Note: The provisions of this §730.303 adopted to be effective November 22, 1976, 1 TexReg 3187; amended to be effective June 1, 1991, 16 TexReg 2305; duplicated effective September 1, 1992, as published in the Texas Register September 11, 1992, 17 TexReg 6279.</p></note></section><section identifier="/us/state/tx/tac/t40/p19/c730/scD/s730.304"><num value="730.304">§730.304</num><heading>Copies of Proposed Rules</heading><content>Copies of proposed rules which have been submitted to the secretary of state by the Texas Department of Protective and Regulatory Services are provided at cost and in compliance with §734.1 of this title (relating to Compliance with Public Information Act). Requests must be directed to Policy and Document Support--MC E-503, Texas Department of Protective and Regulatory Services, 701 West 51st Street, P.O. Box 149030, Austin, Texas 78714-9030.</content><note type="source"><p>Source Note: The provisions of this §730.304 adopted to be effective November 22, 1976, 1 TexReg 3187; amended to be effective June 1, 1991, 16 TexReg 2305; duplicated effective September 1, 1992, as published in the Texas Register September 11, 1992, 17 TexReg 6279.</p></note></section><section identifier="/us/state/tx/tac/t40/p19/c730/scD/s730.305"><num value="730.305">§730.305</num><heading>Copies of Hearing Tapes</heading><content>Copies of tape recordings of public hearings held on proposed rules are provided in compliance with §734.1 of this title (relating to Compliance with Public Information Act) at a cost of $2.00 per tape. Requests must be directed to Policy and Document Support--MC E-503, Texas Department of Protective and Regulatory Services, 701 West 51st Street, P.O. Box 149030, Austin, Texas 78714-9030.</content><note type="source"><p>Source Note: The provisions of this §730.305 adopted to be effective November 22, 1976, 1 TexReg 3187; amended to be effective June 1, 1991, 16 TexReg 2305; duplicated effective September 1, 1992, as published in the Texas Register September 11, 1992, 17 TexReg 6279.</p></note></section></subchapter><subchapter identifier="/us/state/tx/tac/t40/p19/c730/scL"><num value="L">SUBCHAPTER L</num><heading>FAIR HEARINGS</heading><section identifier="/us/state/tx/tac/t40/p19/c730/scL/s730.1101"><num value="730.1101">§730.1101</num><heading>Rule and Regulation Authority</heading><content>The statutes creating the Texas Department of Protective and Regulatory Services (PRS) grant PRS authority to issue rules and regulations for administering the programs for which it has legal responsibility. The standards for fair hearings apply to all the PRS programs, except as otherwise provided by statute or departmental rules, including clients served through agencies under contract with the PRS.</content><note type="source"><p>Source Note: The provisions of this §730.1101 adopted to be effective April 3, 1987, 12 TexReg 954; duplicated effective September 1, 1992, as published in the Texas Register September 11, 1992, 17 TexReg 6279.</p></note></section><section identifier="/us/state/tx/tac/t40/p19/c730/scL/s730.1102"><num value="730.1102">§730.1102</num><heading>Definitions</heading><content>The following words and terms, when used in this chapter, have the following meanings, unless the context clearly indicates otherwise.(1) Appellant--An appellant is an applicant for or recipient of assistance who requests a fair hearing.(2) Assistance--Assistance includes money payments (including protective payments), medical assistance, social services, food stamp benefits, and participation in the Employment Services Program.(3) Date of request for hearing--The date of the request for a hearing is the date on which the appellant or representative clearly expresses a desire to appeal. The date of the request and the date of the petition for fair hearing may be, but are not necessarily the same. If the dates are not the same, staff who completed the petition indicates the date the appellant expressed a desire to appeal. For services purchased through contracted agencies, the date of request is the date the contracted agency staff received the request. The hearing officer at his discretion and based upon the evidence in the case may find that the date of request is earlier than the designated date. If someone outside of the PRS or a contracted agency makes the request, then the date the PRS receives the request is considered the date of the request.(4) Hearing--A hearing is an informal, orderly, and readily available proceeding held before an impartial PRS representative. At the hearing, an appellant or representative, including legal counsel, may present the case as he wishes to show that any action, inaction, or agency policy affecting the case should be corrected.(5) Hearing officer--A hearing officer is a PRS employee whom the executive director designates as responsible for conducting fair hearings. He is also responsible for making the final administrative decision. Any program director, supervisor, or other designated person may act as the hearing officer in his region, except when he is disqualified or unable to act.(6) Representative--A representative is any person who assists the appellant in presenting his case. A legal counsel, relative, friend, or other spokesman may serve as representative.(7) Request for hearing--A request for a hearing is any clear expression that the appellant wants to appeal a PRS action, inaction, or decision and present the case to an authority higher than the local worker. The appellant or representative may make the request.(8) Right of appeal--Right of appeal is the opportunity for a hearing before a PRS hearing officer.(A) Any applicant or recipient requesting a hearing for any of the following reasons has the right to appeal:(i) the client makes a claim for assistance or services but the request is denied, modified, or not acted upon with reasonable promptness;(ii) PRS takes action that results in suspension, reduction, discontinuance, or termination of assistance or services;(iii) the client disagrees with the manner or form in which the PRS makes payments to him, including restricted or protective payments, even though no federal financial participation is claimed; and(iv) the client is dissatisfied with conditions he must meet to receive payments, including work requirements.(B) If PRS terminates a provider's contract or the provider stops providing services for some other reason, the individual recipient may not appeal unless his eligibility is otherwise affected.(C) Hearings are not provided in cases in which the sole issue is an across-the-board reduction of services or assistance to a class of recipients.</content><note type="source"><p>Source Note: The provisions of this §730.1102 adopted to be effective April 3, 1987, 12 TexReg 954; duplicated effective September 1, 1992, as published in the Texas Register September 11, 1992, 17 TexReg 6279.</p></note></section><section identifier="/us/state/tx/tac/t40/p19/c730/scL/s730.1103"><num value="730.1103">§730.1103</num><heading>Principles</heading><content>The underlying principles in the fair hearing process are that:(1) the Texas Department of Protective and Regulatory Services (PRS) is accountable to the appellant for action or inaction with reasonable promptness according to the conditions of the case;(2) the appellant has a right to appeal any PRS action or inaction on the claim for assistance;(3) the appellant may question PRS' interpretation of the law and the reasonability and equity of PRS policies, if the appellant thinks his claim for assistance has been wrongly handled;(4) the hearing is an informal administrative procedure which attempts to serve the interest of the appellant and ensures due process; and(5) the appellant is entitled to all judicial remedies provided by state and federal law.</content><note type="source"><p>Source Note: The provisions of this §730.1103 adopted to be effective April 3, 1987, 12 TexReg 954; duplicated effective September 1, 1992, as published in the Texas Register September 11, 1992, 17 TexReg 6279.</p></note></section><section identifier="/us/state/tx/tac/t40/p19/c730/scL/s730.1104"><num value="730.1104">§730.1104</num><heading>Requirements</heading><content>The following are the primary requirements in the fair hearing procedure.(1) The Texas Department of Protective and Regulatory Services (PRS) is responsible for:(A) fulfilling fair hearing provisions, delegating responsibility for the conduct of the fair hearing, making and implementing the decisions, and designating the hearing officer as the hearing authority;(B) issuing and publicizing hearing procedures;(C) establishing and maintaining a method of making decisions accessible to the appellants, their representatives, and the public (according to provisions safeguarding assistance information).(2) The hearing officer is responsible for:(A) conducting the hearing; and(B) making decisions on behalf of the PRS. The decisions are binding on the state and local offices.</content><note type="source"><p>Source Note: The provisions of this §730.1104 adopted to be effective April 3, 1987, 12 TexReg 954; duplicated effective September 1, 1992, as published in the Texas Register September 11, 1992, 17 TexReg 6279.</p></note></section><section identifier="/us/state/tx/tac/t40/p19/c730/scL/s730.1105"><num value="730.1105">§730.1105</num><heading>Administrative Review of Fair Hearing Decisions</heading><content>(a) The hearing officer's decision is the Texas Department of Protective and Regulatory Services' (PRS') final administrative decision. PRS is, however, aware of the need to monitor hearing decisions for procedural and programmatic accuracy and provides a process for administrative review of decisions that are challenged by appellants.(b) Request for administrative review must be postmarked within 30 days of date of the decision and should be addressed to the appropriate regional attorney.</content><note type="source"><p>Source Note: The provisions of this §730.1105 adopted to be effective April 3, 1987, 12 TexReg 954; duplicated effective September 1, 1992, as published in the Texas Register September 11, 1992, 17 TexReg 6279.</p></note></section></subchapter><subchapter identifier="/us/state/tx/tac/t40/p19/c730/scM"><num value="M">SUBCHAPTER M</num><heading>APPEALS PROCESS</heading><section identifier="/us/state/tx/tac/t40/p19/c730/scM/s730.1201"><num value="730.1201">§730.1201</num><heading>Group Hearings</heading><content>The Texas Department of Protective and Regulatory Services must grant a group hearing if recipients request a group hearing on a question of agency policy. In all cases, except food stamp cases, the request must be in writing, signed by each appellant, and state the common issue(s). Requests for group hearings in food stamp cases may be oral or written. An appellant may also withdraw from a group hearing at any time before a final decision. If an appellant wishes to withdraw, he must make the request in writing and sign it. Group hearings follow the same procedures as individual hearings.</content><note type="source"><p>Source Note: The provisions of this §730.1201 adopted to be effective April 3, 1987, 12 TexReg 954; duplicated effective September 1, 1992, as published in the Texas Register September 11, 1992, 17 TexReg 6279.</p></note></section><section identifier="/us/state/tx/tac/t40/p19/c730/scM/s730.1202"><num value="730.1202">§730.1202</num><heading>Information on Right of Appeal</heading><content>(a) The Texas Department of Protective and Regulatory Services (PRS) must inform applicants and recipients or any person aggrieved by any PRS decision or policy of their right to a fair hearing. The worker must explain the procedure for an appeal, the person's right of appeal, and the right to be represented by others, including legal counsel. The worker must also provide information to clients concerning available legal services in the community. Legal services information may be provided through notices in each office.(b) The appellant or the appellant's representative may at any reasonable time review the appeal procedures set out in the Fair Hearings, Fraud, and Civil Rights Handbook, which is available at local offices.</content><note type="source"><p>Source Note: The provisions of this §730.1202 adopted to be effective April 3, 1987, 12 TexReg 954; duplicated effective September 1, 1992, as published in the Texas Register September 11, 1992, 17 TexReg 6279.</p></note></section><section identifier="/us/state/tx/tac/t40/p19/c730/scM/s730.1203"><num value="730.1203">§730.1203</num><heading>Hearing Officer</heading><content>(a) Selection. The following persons, unless disqualified, may serve as the hearing officer in a region:(1) a program director;(2) a supervisor (except the supervisor of the worker who made the decision); or(3) any other person designated by the executive director through the regional administrator.(b) Disqualification. A hearing officer is disqualified if he directly participated in the case decision being appealed. The hearing officer participated if:(1) in case conference with the worker, contract manager, or the supervisor, he assisted in making a decision about the case;(2) he reviewed either the entire record or a summary of it for the same purpose;(3) he has a personal interest in the outcome of the appeal decision;(4) he supervised the worker or contract manager even without being involved in the decision; or(5) the appellant justifiably questions the hearing officer's fairness.(c) Alternate hearing officer. The hearing officer may believe that there are grounds to disqualify himself from holding the hearing or that his impartiality has been questioned. If so, he refers the case to an alternate hearing officer or the regional attorney. The regional attorney decides if the hearing officer should be disqualified. If necessary, the regional attorney designates a new hearing officer.(d) Hearing officer's powers and duties. The hearing officer:(1) administers oaths or affirmations;(2) ensures that all relevant issues are considered;(3) requests, receives, and makes part of the record all evidence necessary to decide the issues raised;(4) regulates the conduct and course of the fair hearing following due process to ensure an orderly fair hearing;(5) orders, if relevant and useful, an independent medical assessment or professional evaluation from a source satisfactory to the appellant and the Texas Department of Protective and Regulatory Services (PRS);(6) makes a fair hearing decision for PRS;(7) requires the attendance of an agency representative, if necessary and appropriate;(8) may not reverse a decision based on PRS policy an appellant alleges is contrary to law or unconstitutional (the recommendation to reverse a decision must come form the office of the general counsel); and(9) decides if actions are in compliance with current statutes, policies, or procedures.</content><note type="source"><p>Source Note: The provisions of this §730.1203 adopted to be effective April 3, 1987, 12 TexReg 954; amended to be effective June 13, 1988, 13 TexReg 2167; amended to be effective October 16, 1989, 14 TexReg 4546; duplicated effective September 1, 1992, as published in the Texas Register September 11, 1992, 17 TexReg 6279.</p></note></section><section identifier="/us/state/tx/tac/t40/p19/c730/scM/s730.1204"><num value="730.1204">§730.1204</num><heading>Notice Requirement--Proposed Termination or Reduction of Assistance</heading><content>(a) The Texas Department of Protective and Regulatory Services (PRS) must give clients timely and/or adequate notice if a review of the client's situation shows that the grant is to be lowered or denied or services reduced or terminated; PRS decides to make or continue a protective, vendor, or two-party payment; or PRS decides to continue a protective payment in AFDC mismanagement cases.(1) PRS mails a timely notice at least 10 days before the date of action. The 10-day period begins the day the notice is mailed and ends 10 calendar days later, unless the 10th day is a nonworkday. In this case, the period ends on the next workday.(2) PRS continues assistance if a request for a fair hearing is postmarked on or before the 10th day. Payment may not be changed to a protective, vendor, or two-party payment pending the appeal. PRS allows two full calendar days mailing time for receiving the appeal notice before taking action to terminate or reduce assistance or services.(3) An adequate notice includes a statement of the proposed action; the reasons for the action; the specific regulations supporting the action; an explanation of the client's right to a hearing, if any; and the circumstances under which assistance or services are continued if the client requests a hearing.(4) PRS must give adequate notice to every client for across-the-board reductions necessarily made in good faith, such as denials or reductions made because of raises in Social Security; reductions required because of changes in PRS policies of general applicability; termination of the grant when a client reaches the maximum eligibility age, such as an AFDC child reaching 18 years old or 19 years old if attending school; or reduction because a member of the dependent group received a new grant, and the total of the two grants is equal to or larger than the original grant.(b) PRS may withhold assistance or services without the timely 10-day notice and continued benefits pending appeal, but it must send adequate notice not later than the effective date of the action if:(1) PRS has facts confirming the death of a client or of an AFDC payee when no relative is available to serve as the new payee;(2) the client sends a clear written and signed statement that he no longer wishes assistance or services. The statement gives information that requires PRS to terminate or reduce assistance or services. The client must indicate that he understands the consequence of supplying this information;(3) the client has been admitted or committed to an institution, and further payments to the client do not qualify for federal financial participation under the state plan;(4) the client has been placed in skilled nursing care, intermediate care, or long-term hospitalization;(5) the client's whereabouts are unknown, and the postal service returns mail PRS sent indicating no known forwarding address. If the client is located during the payment period covered by the returned check, PRS must make the check available to him;(6) a client is accepted for assistance in a new jurisdiction (either certified in another state or for SSI), and this has been established by the new jurisdiction;(7) an AFDC child is removed from the home as a result of a judicial determination or voluntarily placed in foster care by the legal guardian;(8) the client fails to submit a correctly completed status report, and the household admits it did not submit the form;(9) the client's attending physician prescribes a lower level of care or concurs with the Texas Department of Health's long-term care unit's change in level-of-care determination; and(10) a protective or family self-support service is provided for a specific, time-limited period, and the recipient was informed in writing when it was initiated that the allowance or service terminates at the end of the specified period.(c) PRS may terminate services without advance notice to a person receiving nonprotective purchased community care for aged and disabled services who threatens his own health or safety or that of others in the facility.</content><note type="source"><p>Source Note: The provisions of this §730.1204 adopted to be effective April 3, 1987, 12 TexReg 954; duplicated effective September 1, 1992, as published in the Texas Register September 11, 1992, 17 TexReg 6279.</p></note></section><section identifier="/us/state/tx/tac/t40/p19/c730/scM/s730.1206"><num value="730.1206">§730.1206</num><heading>Fair Hearing Request</heading><content>The Texas Department of Protective and Regulatory Services restricts the right to appeal to the client, his legal guardian, or his authorized representative. The client, however, may choose any individual or institution as his authorized representative. If a third-party vendor provides assistance or service, the vendor may not appeal because of what he may consider an adverse action against the client.</content><note type="source"><p>Source Note: The provisions of this §730.1206 adopted to be effective April 3, 1987, 12 TexReg 954; duplicated effective September 1, 1992, as published in the Texas Register September 11, 1992, 17 TexReg 6279.</p></note></section><section identifier="/us/state/tx/tac/t40/p19/c730/scM/s730.1207"><num value="730.1207">§730.1207</num><heading>Time and Place of Hearing</heading><content>(a) The appellant has a right to file an appeal within 90 days from the effective date of the decision or from the notice of adverse action date, whichever is later.(b) If more time elapses between the effective date and the request date, the worker offers to process a reapplication or to review the case situation.(c) A food stamp client may request a fair hearing to question his current level of benefits anytime within a certification period.(d) The worker or the hearing officer may change the decision any time before or during the hearing process. The appellant, however, has the right to proceed with the fair hearing after an adjustment is made.(e) If the client is satisfied with the last action but still dissatisfied with the previous action, he may appeal the first decision. If he is dissatisfied with both decisions, he may appeal both.(f) The fair hearing is held at a reasonable place and time. This may be the local office or the appellant's home. The hearing officer considers the physical condition of the appellant and availability of transportation in setting the place of the fair hearing. A bilingual interpreter is available if the hearing officer determines it is necessary. A qualified sign language interpreter is available for deaf persons requiring one.</content><note type="source"><p>Source Note: The provisions of this §730.1207 adopted to be effective April 3, 1987, 12 TexReg 954; amended to be effective October 16, 1989, 14 TexReg 4546; duplicated effective September 1, 1992, as published in the Texas Register September 11, 1992, 17 TexReg 6279.</p></note></section></subchapter><subchapter identifier="/us/state/tx/tac/t40/p19/c730/scN"><num value="N">SUBCHAPTER N</num><heading>HEARING PROCEDURE</heading><section identifier="/us/state/tx/tac/t40/p19/c730/scN/s730.1301"><num value="730.1301">§730.1301</num><heading>Conduct of Fair Hearing</heading><content>(a) The hearing officer conducts the fair hearing as an informal proceeding, not as a formal court hearing. The participants are placed under oath, but the technical rules of evidence need not be followed.(b) The fair hearing is not open to the public, but friends and relatives of the appellant may attend if the appellant chooses. Reporters may tape record (but may not photograph) the hearing if the appellant chooses. All persons attending the fair hearing must have:(1) an interest in the rights of the appellant; and(2) an opportunity to give information pertinent to the issues under consideration.(c) If space is limited, the hearing officer has the authority to limit the number of persons attending the fair hearing.(d) The fair hearing is recorded either by a tape recorder or by a stenographer. The recording or stenographer's notes are kept on file for 90 days (three years in food stamp appeals) after the fair hearing. During this period, the appellant and his representative may copy or transcribe this information at his own expense. The hearing officer prepares a summary of what took place at the fair hearing. This is the official record of the fair hearing. The Texas Department of Protective and Regulatory Services (PRS) treats this material as confidential.(e) In some cases, the hearing officer may use teleconference equipment. The use of this equipment does not change the conduct of the fair hearing or affect the rights of the parties. The PRS representative may take part by telephone and may ask and be asked questions. The hearing officer must share with the appellant any documents from which the representative testifies.</content><note type="source"><p>Source Note: The provisions of this §730.1301 adopted to be effective April 3, 1987, 12 TexReg 954; duplicated effective September 1, 1992, as published in the Texas Register September 11, 1992, 17 TexReg 6279.</p></note></section><section identifier="/us/state/tx/tac/t40/p19/c730/scN/s730.1302"><num value="730.1302">§730.1302</num><heading>Fair Hearing Proceedings</heading><content>(a) The appellant or his representative have the opportunity to:(1) examine evidence to be used in the fair hearing before the fair hearing if he makes either an oral or written request to the hearing officer;(2) examine or request copies (at no cost) of all documents and records used at the fair hearing;(3) present the case personally or with the aid of others, including legal counsel;(4) bring witnesses;(5) establish all pertinent facts and circumstances;(6) present arguments or say anything about the case without undue interference;(7) present documentary evidence; and(8) question or refute any testimony or evidence, including an opportunity to confront and cross-examine adverse witnesses.(b) The hearing officer shares with the appellant any evidence or testimony used in the fair hearing. If essential to the conduct of the fair hearing, the worker or the hearing officer may refer to the case record for information. If the case record is used during the fair hearing, the appellant may ask to see it and to have it placed in evidence. In the case of a food stamp appeal involving the Texas Employment Commission (TEC), the TEC representative sends the hearing officer a copy of the TEC case file. Before the fair hearing, the appellant may examine the case file at the appropriate TEC office or at the office of the hearing officer. The appellant must not be allowed to examine confidential information. TEC determines what information should be protected from release. Information not released to the appellant may not be used by TEC at the fair hearing or considered by the hearing officer in making a decision.(c) The hearing officer as well as the appellant may bring witnesses to the fair hearing and may also present documentary evidence.(d) The hearing officer considers the point(s) at issue and all facts pertinent to the appellant's situation as it was when the action was taken. He particularly considers those facts related to the appellant's dissatisfaction.(e) The hearing officer discusses with the appellant the findings upon which the local worker's action was based. He also explains the applicable law and approved policies as the point(s) at issue is discussed.(f) The hearing officer is responsible for impartially assisting the appellant in effectively presenting his case.(g) A representative of the agency that took the action being appealed must explain and defend the decision or action of the program staff. Usually, the representative participates in the fair hearing by telephone. Either the hearing officer or the appellant has the right to request that the representative attend the hearing in person. If the appellant or the hearing officer requests a face-to-face appeal, the hearing officer promptly notifies the DHS representative. In level of care hearings, the representative is only present by telephone.(h) The hearing officer may determine that the appellant's circumstances have changed since the action being appealed was taken. If so, the hearing officer may direct the worker to adjust the appellant's benefits based on the changed circumstances. In this case, the worker adjusts benefits as soon as possible without the hearing officer's final decision. If the hearing officer determines that the appellant is due restored benefits, the worker must take the action as directed by the hearing officer. If an error is discovered after the request for a fair hearing, the worker or hearing officer may correct the error by granting or adjusting benefits immediately. If the appellant lost benefits to which he was entitled, the worker must process retroactive payments as directed by the hearing officer. This action should not delay or modify the right of the appellant to proceed with the fair hearing. The worker may make the appropriate change in assistance while an appeal is still pending. If the worker adjusts benefits before the fair hearing, the Texas Department of Protective and Regulatory Services (PRS) may provide benefits retroactive to the date of the incorrect action. The worker may make the adjustment immediately at the direction of the hearing officer. In this case the appeal is usually withdrawn. The appellant, however, may continue with the appeal. In this case, no immediate adjustment is requested.(i) PRS ensures that prompt, definitive, and final administrative action is taken within 90 days from the date of the request for a fair hearing. Action on food stamp cases must be taken within 60 days. The hearing officer notifies the appellant of the decision in writing.(j) The hearing officer authorizes the worker to process any corrected payments or food stamp benefits being restored to the date of an incorrect action or to the date action should have been taken. The hearing officer also authorizes the worker to credit the restored benefit entitlement to any unpaid overissuance. Except in AFDC cases, retroactive corrective payment is made only for the 12 months preceding the month in which the underpayment is discovered.</content><note type="source"><p>Source Note: The provisions of this §730.1302 adopted to be effective April 3, 1987, 12 TexReg 954; amended to be effective June 13, 1988, 13 TexReg 2167; duplicated effective September 1, 1992, as published in the Texas Register September 11, 1992, 17 TexReg 6279.</p></note></section><section identifier="/us/state/tx/tac/t40/p19/c730/scN/s730.1303"><num value="730.1303">§730.1303</num><heading>Private (Ex Parte) Consultations</heading><content>Any information considered by the hearing officer in deciding the appeal must be shared with the appellant or his authorized representative. Private (ex parte) consultations, whether oral or written, about the substantive issues of the appeal are allowed only if their substance is shared with all parties to the appeal.</content><note type="source"><p>Source Note: The provisions of this §730.1303 adopted to be effective April 3, 1987, 12 TexReg 954; duplicated effective September 1, 1992, as published in the Texas Register September 11, 1992, 17 TexReg 6279.</p></note></section><section identifier="/us/state/tx/tac/t40/p19/c730/scN/s730.1304"><num value="730.1304">§730.1304</num><heading>Confidential Material</heading><content>(a) Information furnished to the department by anyone in confidence may not be shared with the appellant. Any information, however, which is used to decide an appeal must be shared with the appellant. If the information on which the eligibility decision was made is classified confidential, it may not be used in making the decision on the appeal. For these reasons the following procedures are used.(b) Physicians are informed that the medical information they furnish is subject to examination and review by the appellant or his representative if an administrative appeal is held. If the physician has prior notice, it is not necessary to get his permission before the information is released to the appellant or representative.(c) If the physician was not notified that medical information is subject to examination and review by the appellant or representative, PRS must obtain the clearance of the physician. If the physician has no objections to the release of the information, it is released. If he objects to the release, the PRS must arrange another examination at state expense by a different physician. This information may be shared with the appellant or his representative.(d) If another agency releases medical information to PRS and requests that this information be kept confidential, PRS honors the request. This information may not be released to the appellant or considered in the appeal. If there is no additional information in the record upon which a decision can be made, the PRS authorizes additional medical examinations at state expense. If the physician requests that the medical report not be shared with the appellant, PRS' medical review team, or the disability determination unit notifies the hearing officer. The hearing officer then contacts the appellant's representative and obtains an agreement to protect the confidentiality of the report and to not share it with the appellant. The medical report is then shared with the appellant's representative. A new medical examination must be made at state expense if:(1) an agreement to protect confidentiality cannot be made;(2) the appellant does not have a representative; or(3) the physician requests that even the representative not be allowed to review the report.</content><note type="source"><p>Source Note: The provisions of this §730.1304 adopted to be effective April 3, 1987, 12 TexReg 954; duplicated effective September 1, 1992, as published in the Texas Register September 11, 1992, 17 TexReg 6279.</p></note></section><section identifier="/us/state/tx/tac/t40/p19/c730/scN/s730.1305"><num value="730.1305">§730.1305</num><heading>Furnishing Medical Information</heading><content>If an appellant or his representative requests medical evidence, PRS gives the appellant or his representative a copy of all medical evidence in the files. This includes medical reports, the social summaries, the medical review team's or the disability determination unit's findings, decisions, and reassessments, subject to the following conditions. The request may be oral in food stamp cases, but must be in writing in all other cases. If an appellant requests medical records, the information is provided to the hearing officer by the medical review team or the disability determination unit and is shared with the appellant or his representative before the hearing. If, during the hearing, the appellant or his representative requests in writing medical information, the hearing officer recesses the hearing and gives the information to the appellant or his representative. The release of medical information is subject to the provisions of §730.1304 of this title (relating to Confidential Material).</content><note type="source"><p>Source Note: The provisions of this §730.1305 adopted to be effective April 3, 1987, 12 TexReg 954; duplicated effective September 1, 1992, as published in the Texas Register September 11, 1992, 17 TexReg 6279.</p></note></section><section identifier="/us/state/tx/tac/t40/p19/c730/scN/s730.1306"><num value="730.1306">§730.1306</num><heading>Interrogatories</heading><content>An appellant or his legal counsel may send written interrogatories or request a prehearing conference to get additional information from the PRS' medical review team or disability determination unit, or the Texas Department of Health. The request is granted, subject to the following conditions.(1) The appellant or his legal counsel must ensure that written interrogatories are clear and concise. No more than 30 questions may be asked.(2) Four copies of the interrogatories must be submitted to the hearing officer.</content><note type="source"><p>Source Note: The provisions of this §730.1306 adopted to be effective April 3, 1987, 12 TexReg 954; duplicated effective September 1, 1992, as published in the Texas Register September 11, 1992, 17 TexReg 6279.</p></note></section><section identifier="/us/state/tx/tac/t40/p19/c730/scN/s730.1307"><num value="730.1307">§730.1307</num><heading>Prehearing Conference</heading><content>If an appellant's attorney wishes to have a prehearing conference about the medical information, either the hearing officer or the attorney representing the appellant sends the request to the office of the general counsel. The office of the general counsel sets up an appointment for the prehearing conference to be held in Austin. The appointment is set at a time when the hearing officer can go to Austin to attend the conference. PRS does not pay any expenses of the appellant or the attorney(s) representing him for attending the prehearing conference in Austin. At the prehearing conference, the appellant or attorney may question the medical staff about medical eligibility. The hearing officer records the prehearing conference.</content><note type="source"><p>Source Note: The provisions of this §730.1307 adopted to be effective April 3, 1987, 12 TexReg 954; duplicated effective September 1, 1992, as published in the Texas Register September 11, 1992, 17 TexReg 6279.</p></note></section><section identifier="/us/state/tx/tac/t40/p19/c730/scN/s730.1308"><num value="730.1308">§730.1308</num><heading>Order of Fair Hearings</heading><content>Fair hearings are normally scheduled in the order in which requests are received. For good cause, however, the hearing officer may schedule fair hearings out of order.</content><note type="source"><p>Source Note: The provisions of this §730.1308 adopted to be effective April 3, 1987, 12 TexReg 954; duplicated effective September 1, 1992, as published in the Texas Register September 11, 1992, 17 TexReg 6279.</p></note></section><section identifier="/us/state/tx/tac/t40/p19/c730/scN/s730.1309"><num value="730.1309">§730.1309</num><heading>Action by Hearing Officer</heading><content>(a) Postponement. In food stamp cases, the appellant is entitled to receive one fair hearing postponement of up to 30 days. The time limit for action on the decision may be extended by as many days as the fair hearing is postponed. Other fair hearings may be postponed by the hearing officer if there is a reasonable cause. If possible, the appellant should file a written request for postponement of the fair hearing at least two days before it is scheduled to occur, unless unusual circumstances exist. The hearing officer then resets the fair hearing.(1) The hearing officer decides if there is a valid reason for postponement or, in a food stamp appeal, if the appellant is entitled to a postponement.(2) If there is reasonable doubt that the appellant or a member of his immediate family is too ill to appear, the hearing officer may ask the appellant to furnish a statement from a physician.(3) The hearing officer may decide that a requested postponement cannot be granted, either because the appellant is not entitled to it in a food stamp appeal or because there is not reasonable cause. The hearing officer must document his decision in writing and send it to the appellant.(b) Dismissal.(1) If the appellant is not receiving continuing benefits and the appellant or representative does not appear for the fair hearing and gives no reason, the hearing officer must contact the appellant. If the appellant does not reply within 10 days, the hearing officer summarizes and records the facts. If the case record alone clearly shows that the worker's decision should be reversed, the hearing officer may enter a decision for the appellant. In all other cases, the hearing officer dismisses the appeal on the basis that the request for a fair hearing has been abandoned by the appellant.(2) If the appellant is receiving continuing benefits and the appellant or his representative does not appear for the fair hearing and gives no reason, the hearing officer dismisses the appeal. He notifies the appellant that the worker's recommended action will become effective. If the hearing officer notes error(s) that affect the recommended decision of the worker, the hearing officer notifies the appellant and the worker so that appropriate action is taken to correct the error(s).(c) Withdrawn appeal.(1) Once an appeal is filed, only the appellant or representative can withdraw the request. The appellant must make the request in writing to the hearing officer or the local office and give the reason for the withdrawal.(2) The appellant may verbally request the hearing officer to withdraw the appeal, but must confirm the request in writing. If the appellant does not provide a written request, the hearing officer writes the appellant to ask for a written withdrawal. The appellant is informed that if he does not within 15 days, the appeal will be withdrawn based upon the original verbal request.(3) If the hearing officer accepts the withdrawal, he sends a letter to the appellant stating that the withdrawal is accepted. If the hearing officer believes the appellant was improperly induced or influenced to withdraw the request for a fair hearing, he advises the appellant to reconsider withdrawing the appeal.(4) If an appellant dies during the appeal process, the legal representative of the decedent's estate must pursue the appeal, or the hearing officer may consider the appeal withdrawn. A food stamp appeal may not be considered withdrawn until a household member or representative gives the department written notice to withdraw the appeal.(d) Recessed fair hearings.(1) The hearing officer recesses the fair hearing if the appellant requests a delay to prepare the case or for other essential reasons. Requested information is furnished to the appellant or his representative before reconvening the fair hearing.(2) If the hearing officer is unable to make a decision on the basis of the information, he may recess the fair hearing and advise the appellant of the reason for the recess and of the additional information that is required. The fair hearing is reconvened for a discussion of the additional information and is recorded as in the initial fair hearing.(3) The hearing officer should recess the fair hearing if the hearing officer considers it necessary to consult a collateral source (including the worker or technician) for information or testimony. The fair hearing is reconvened to share the pertinent information or testimony with the appellant or to hear the testimony of the witness.</content><note type="source"><p>Source Note: The provisions of this §730.1309 adopted to be effective April 3, 1987, 12 TexReg 954; duplicated effective September 1, 1992, as published in the Texas Register September 11, 1992, 17 TexReg 6279.</p></note></section><section identifier="/us/state/tx/tac/t40/p19/c730/scN/s730.1310"><num value="730.1310">§730.1310</num><heading>Decisions by Hearing Officer</heading><content>(a) Requirements. The decision by the hearing officer is made for the PRS and is the final administrative action by the PRS in an appeal. The decision is documented and given to the appellant. The appellant may examine any documentary material related to the case before, during, or after the hearing.(b) Reversed appeals. The decision is reversed if the hearing officer decides that the action of the local office or contracted agency was not according to current policies or procedures.(c) Sustained appeals.(1) The decision is sustained if the hearing officer decides that the action or inaction of the local office complies with current statutes, policies, and procedures.(2) The hearing officer may find that the decision was correct when it was made; however, changed circumstances make the appellant eligible for assistance (or entitled to an increase, reduction, denial of grant or food stamps, or other program benefits). The hearing officer then sustains the original decision and instructs the worker to determine eligibility based on the changed circumstances. The hearing officer may decide that the appellant was ineligible when the original decision was made, but is eligible at the time of the fair hearing. In this case he tells the appellant, and instructs the worker to assist the appellant, to file a reapplication or to make an adjustment in benefits. The worker must contact the appellant to file the reapplication or adjust benefits.(3) The hearing officer may sustain the decision and also order retroactive benefits or reinstated benefits if he finds that the appellant was actually eligible at the time of the original decision. He may do this although all the information required to establish eligibility may not have been available to the worker through no fault of the appellant. The hearing officer may not order benefits when an appellant has refused to provide or has been negligent in providing information.(4) If the decision of the local office is sustained with no recommendation for adjustment, the situation is not reconsidered until:(A) the appellant alleges a change in circumstances;(B) there has been a change in the conditions of eligibility;(C) the worker has reliable evidence to show a change in the appellant's circumstances which affects eligibility; or(D) a review or recertification is due for the case.(d) Reopened appeals.(1) An appeal may be reopened and a decision reconsidered by the hearing officer within 60 days if there is new evidence that shows the hearing officer did not make a valid decision. The hearing officer considers new information from the appellant or representative. He then decides whether to reopen the appeal, request additional information, authorize a reapplication, or dismiss the information as presenting no new evidence. If requested, the hearing officer makes an appointment with the appellant or his representative.(2) A copy of documentary material used during the hearing is available, upon request, to the appellant or representative(s) after the decision is made. The original documentary material is returned to the worker or contracted agency.</content><note type="source"><p>Source Note: The provisions of this §730.1310 adopted to be effective April 3, 1987, 12 TexReg 954; duplicated effective September 1, 1992, as published in the Texas Register September 11, 1992, 17 TexReg 6279.</p></note></section><section identifier="/us/state/tx/tac/t40/p19/c730/scN/s730.1311"><num value="730.1311">§730.1311</num><heading>Public Access to Decisions</heading><content>All decisions by the hearing officer are accessible to appellants, their representatives, and the public on the official record of the fair hearing (subject to provisions of §730.1304 of this title (relating to Confidential Material)).</content><note type="source"><p>Source Note: The provisions of this §730.1311 adopted to be effective April 3, 1987, 12 TexReg 954; duplicated effective September 1, 1992, as published in the Texas Register September 11, 1992, 17 TexReg 6279.</p></note></section><section identifier="/us/state/tx/tac/t40/p19/c730/scN/s730.1312"><num value="730.1312">§730.1312</num><heading>Transcripts</heading><content>If substantial controversy or litigation appears likely, tapes of the fair hearing are maintained for one year. Even in these instances, however, transcripts are prepared only at the request of the Office of the General Counsel. Appellants or their representatives may listen to and copy the tape with their own equipment in the office of the hearing officer.</content><note type="source"><p>Source Note: The provisions of this §730.1312 adopted to be effective April 3, 1987, 12 TexReg 954; duplicated effective September 1, 1992, as published in the Texas Register September 11, 1992, 17 TexReg 6279.</p></note></section><section identifier="/us/state/tx/tac/t40/p19/c730/scN/s730.1313"><num value="730.1313">§730.1313</num><heading>Retroactive Payments or Restored Benefits or Services</heading><content>(a) If the hearing officer finds that the decision appealed was erroneous, the hearing officer authorizes the worker to process retroactive or supplemental assistance or services to correct the error.(b) The appellant is also eligible for retroactive assistance between the date of the adverse action and the hearing officer's decision if benefits were not continued during that period. Except in AFDC cases, reimbursement or retroactive benefits are limited to 12 months preceding the month the error or underpayment is discovered. The hearing officer must specify the months of entitlement.(c) If the hearing officer reverses a decision, he directs the worker to authorize any restored payments, benefits, or services. If the hearing officer reverses a decision involving:(1) services--the service usually is provided from the time of the decision instead of retroactively. If the appellant had to spend money or has unpaid bills for services incorrectly reduced or denied, then he or the provider is entitled to the retroactive reimbursement.(2) Title XIX medical assistance--retroactive reimbursement may be made only to the Title XIX provider, not the appellant. This is true even if the appellant has already spent his own money to purchase assistance.</content><note type="source"><p>Source Note: The provisions of this §730.1313 adopted to be effective April 3, 1987, 12 TexReg 954; duplicated effective September 1, 1992, as published in the Texas Register September 11, 1992, 17 TexReg 6279.</p></note></section><section identifier="/us/state/tx/tac/t40/p19/c730/scN/s730.1314"><num value="730.1314">§730.1314</num><heading>Recovery of Benefits in 10-day Appeals</heading><content>The hearing officer may sustain the worker's decision to deny or reduce benefits in 10-day appeals. PRS recovers the amount of assistance or benefits received by or on behalf of an appellant during the appeal period that exceeds the amount due the appellant.</content><note type="source"><p>Source Note: The provisions of this §730.1314 adopted to be effective April 3, 1987, 12 TexReg 954; duplicated effective September 1, 1992, as published in the Texas Register September 11, 1992, 17 TexReg 6279.</p></note></section><section identifier="/us/state/tx/tac/t40/p19/c730/scN/s730.1315"><num value="730.1315">§730.1315</num><heading>Time Limits on Appeals</heading><content>Appeals are processed promptly. In deciding the appeal, staff must not take more than 90 days (60 days for food stamps) from the date of the request for an appeal until action to provide retroactive benefits is initiated. The fair hearing may be postponed, however, at the request of the appellant or when the appellant fails to keep his first appointment for the fair hearing. In these cases, the time lapse caused by the delay is added to the 90 or 60 days allowed for processing the appeal.</content><note type="source"><p>Source Note: The provisions of this §730.1315 adopted to be effective April 3, 1987, 12 TexReg 954; duplicated effective September 1, 1992, as published in the Texas Register September 11, 1992, 17 TexReg 6279.</p></note></section><section identifier="/us/state/tx/tac/t40/p19/c730/scN/s730.1317"><num value="730.1317">§730.1317</num><heading>Time Periods for Dismissals</heading><content>In 10-day appeals, the appeal is abandoned if the appellant or representative does not appear and does not request a postponement for good cause.</content><note type="source"><p>Source Note: The provisions of this §730.1317 adopted to be effective April 3, 1987, 12 TexReg 954; duplicated effective September 1, 1992, as published in the Texas Register September 11, 1992, 17 TexReg 6279.</p></note></section></subchapter><subchapter identifier="/us/state/tx/tac/t40/p19/c730/scO"><num value="O">SUBCHAPTER O</num><heading>SOCIAL SERVICE APPEALS</heading><section identifier="/us/state/tx/tac/t40/p19/c730/scO/s730.1401"><num value="730.1401">§730.1401</num><heading>Requirements</heading><content>Fair hearings may be requested because of the reduction, termination, or denial of services provided by the department or because of an action or policy of the department which requires a person to participate in a service program. The hearing process described in other department rules is applicable to appeals on social services with the exception noted in §730.1402 of this title (relating to Reversals).</content><note type="source"><p>Source Note: The provisions of this §730.1401 adopted to be effective January 1, 1976; amended to be effective December 28, 1976, 1 TexReg 3515; duplicated effective September 1, 1992, as published in the Texas Register September 11, 1992, 17 TexReg 6279.</p></note></section><section identifier="/us/state/tx/tac/t40/p19/c730/scO/s730.1402"><num value="730.1402">§730.1402</num><heading>Reversals</heading><content>If a decision involving services is reversed, normally the service will be provided from the time of the decision instead of retroactively; however, if by reason of having been excluded from the services, the client has been required to expend funds, or has incurred unpaid bills for services erroneously reduced or denied, then he or she or the provider, if appropriate, would be entitled to the reimbursement of expenditures retroactively.</content><note type="source"><p>Source Note: The provisions of this §730.1402 adopted to be effective January 1, 1976; amended to be effective December 28, 1976, 1 TexReg 3515; duplicated effective September 1, 1992, as published in the Texas Register September 11, 1992, 17 TexReg 6279.</p></note></section></subchapter><subchapter identifier="/us/state/tx/tac/t40/p19/c730/scR"><num value="R">SUBCHAPTER R</num><heading>ADMINISTRATIVE PROCEDURE AND TEXAS REGISTER ACT (APTRA) HEARINGS</heading><section identifier="/us/state/tx/tac/t40/p19/c730/scR/s730.1701"><num value="730.1701">§730.1701</num><heading>Definitions</heading><content>The following words and terms, when used in this subchapter, shall have the following meanings, unless the context clearly indicates otherwise.(1) Administrative law judge--The attorney appointed by the director of the Hearings Department to preside over the hearing.(2) Adverse action--Adverse registration, licensing, or certification that is based in whole or in part on a finding of abuse, neglect, or exploitation (without regard to the release of abuse, neglect, or exploitation data). The following actions do not constitute adverse action:(A) removal of foster children from foster parents who are alleged perpetrators, as verified by Child Protective Services (CPS);(B) removal of foster children from CPS-approved, prospective adoptive parents who are alleged perpetrators; and(C) denial of CPS approval of persons as foster parents or as adoptive parents.(3) Alleged perpetrator--A person alleged to have abused or neglected a child or alleged to have abused, neglected, or exploited an aged or disabled adult.(4) Days--Calendar days, unless otherwise specified.(5) Department--The Texas Department of Protective and Regulatory Services.(6) Executive director--The executive director of the Texas Department of Protective and Regulatory Services.(7) Hearing--An administrative proceeding provided under the Administrative Procedure and Texas Register Act, Texas Civil Statutes, Article 6252-13a, to give an alleged perpetrator an opportunity to contest a decision by the department to:(A) release information as defined under the term "release" in this section; or(B) take adverse action against the alleged perpetrator based on the department's finding that the alleged perpetrator is responsible for abuse or neglect of a child, or for abuse, neglect, or exploitation of an aged or disabled adult.(8) Petitioner--Any person who has filed a written request for a hearing according to these procedures.(9) Release--The disclosure of information about an alleged perpetrator to any party outside the department without the alleged perpetrator's consent, except for:(A) disclosures required by operation of law; or(B) disclosures to:(i) the alleged perpetrator;(ii) parents, caretakers, or other individuals who are legally responsible for the alleged victim's care, custody, or welfare;(iii) legal representatives of the alleged victim; or(iv) a court of law.(10) Respondent--The department.</content><note type="source"><p>Source Note: The provisions of this §730.1701 adopted to be effective January 1, 1990, 14 TexReg 5937; amended to be effective August 1, 1991, 16 TexReg 3779; amended to be effective January 1, 1992, 16 TexReg 6764; amended to be effective February 15, 1992, 17 TexReg 409; duplicated effective September 1, 1992, as published in the Texas Register September 11, 1992, 17 TexReg 6279; amended to be effective September 1, 1993, 18 TexReg 4648.</p></note></section><section identifier="/us/state/tx/tac/t40/p19/c730/scR/s730.1702"><num value="730.1702">§730.1702</num><heading>Right to a Hearing</heading><content>(a) A hearing must be granted to any alleged perpetrator about whom a finding of child abuse or neglect or adult abuse, neglect, or exploitation is to be released without that individual's consent.(b) A hearing must also be granted to any alleged perpetrator against whom an adverse action is to be taken by the department.(c) If an alleged perpetrator is entitled to hearings under both subsections (a) and (b) of this section, the department may combine the two hearings in a single proceeding.</content><note type="source"><p>Source Note: The provisions of this §730.1702 adopted to be effective January 1, 1990, 14 TexReg 5937; amended to be effective January 1, 1992, 16 TexReg 6764; amended to be effective February 15, 1992, 17 TexReg 409; duplicated effective September 1, 1992, as published in the Texas Register September 11, 1992, 17 TexReg 6279; amended to be effective September 1, 1993, 18 TexReg 4648.</p></note></section><section identifier="/us/state/tx/tac/t40/p19/c730/scR/s730.1703"><num value="730.1703">§730.1703</num><heading>Notice</heading><content>The executive director or his designee sends the alleged perpetrator notice of any pending release or adverse use. The notice is sent by certified mail, return receipt requested, unless the department determines that a more immediate form of notice is required. The notice must include:(1) a statement of:(A) the department's abuse, neglect, or exploitation findings; and(B) either:(i) the adverse action to be taken; or(ii) the information to be released by the department, or both;(2) a statement of the alleged perpetrator's right to request a hearing on the adverse action or release within 15 days of receiving the notice;(3) a statement that the failure to request a hearing may result in disclosure of the abuse, neglect, or exploitation findings;(4) a statement indicating whether the abuse, neglect, or exploitation findings will be released or used before the appeal;(5) a statement of the alleged perpetrator's right to inspect investigation records and related material, including video and audio recordings;(6) a description of the procedure that the alleged perpetrator must follow to request a hearing; and(7) if the alleged perpetrator has a right to an administrative review of the department's findings, a statement that the alleged perpetrator must either exercise or waive that right before a hearing is convened.</content><note type="source"><p>Source Note: The provisions of this §730.1703 adopted to be effective January 1, 1990, 14 TexReg 5937; amended to be effective February 15, 1992, 17 TexReg 409; duplicated effective September 1, 1992, as published in the Texas Register September 11, 1992, 17 TexReg 6279; amended to be effective September 1, 1993, 18 TexReg 4648.</p></note></section><section identifier="/us/state/tx/tac/t40/p19/c730/scR/s730.1704"><num value="730.1704">§730.1704</num><heading>Emergency Release/Use of Data</heading><content>Although abuse, neglect, or exploitation data is not usually released pending the results of the release hearing, data may be adversely used against an alleged perpetrator if the department determines that he constitutes an immediate danger to the health or safety of children or aged or disabled adults. The evidentiary standards for this determination are set forth in the program rules on which the action is based.</content><note type="source"><p>Source Note: The provisions of this §730.1704 adopted to be effective January 1, 1990, 14 TexReg 5937; amended to be effective January 1, 1992, 16 TexReg 6764; amended to be effective February 15, 1992, 17 TexReg 409; duplicated effective September 1, 1992, as published in the Texas Register September 11, 1992, 17 TexReg 6279.</p></note></section><section identifier="/us/state/tx/tac/t40/p19/c730/scR/s730.1705"><num value="730.1705">§730.1705</num><heading>Request for a Hearing</heading><content>The alleged perpetrator must file a written request for a hearing. The request must be postmarked within 15 days after his receipt of the official notice from the department and must be addressed to the Hearings Department.</content><note type="source"><p>Source Note: The provisions of this §730.1705 adopted to be effective January 1, 1990, 14 TexReg 5937; amended to be effective August 1, 1991, 16 TexReg 3779; duplicated effective September 1, 1992, as published in the Texas Register September 11, 1992, 17 TexReg 6279.</p></note></section><section identifier="/us/state/tx/tac/t40/p19/c730/scR/s730.1706"><num value="730.1706">§730.1706</num><heading>Administrative Law Judge</heading><content>An administrative law judge hears the case, makes appropriate findings of fact and conclusions of law, and makes the final decision in each case. An attorney who has directly or indirectly participated in, or given advice on issues that are the basis for, a particular hearing may not be the administrative law judge in that hearing.</content><note type="source"><p>Source Note: The provisions of this §730.1706 adopted to be effective January 1, 1990, 14 TexReg 5937; duplicated effective September 1, 1992, as published in the Texas Register September 11, 1992, 17 TexReg 6279.</p></note></section><section identifier="/us/state/tx/tac/t40/p19/c730/scR/s730.1707"><num value="730.1707">§730.1707</num><heading>Hearing Guidelines</heading><content>(a) Department representative--The associate commissioner for legal services or his designee appoints an attorney to represent the department. The attorney has authority over the manner and substance of the presentation of the department's case.(b) Notice of hearing and statement of issues--Within 30 days after he receives the request the administrative law judge selects a hearing date. On motion of the department representative or on the administrative law judge's own motion, the timely filing of the hearing request may be challenged. The administrative law judge decides whether the request was filed on time. At least 20 days before the date of the hearing, the administrative law judge must notify the respondent and petitioner, in writing, about the hearing date. The administrative law judge may expedite the hearing if any party showing good cause requests it. In this event, all parties must be sent at least 10-day notice of the hearing date.(1) The written notice includes:(A) a statement of the time, place, and nature of the hearing; and(B) a statement of the legal authority and jurisdiction under which the hearing will be held.(2) At least 10 days before the hearing date, the department's representative must deliver to the petitioner and file with the administrative law judge:(A) a reference to the particular sections of the statutes and rules involved; and(B) a concise statement of the matters asserted by the department.</content><note type="source"><p>Source Note: The provisions of the §730.1707 adopted to be effective January 1, 1990, 14 TexReg 5937; duplicated effective September 1, 1992, as published in the Texas Register September 11, 1992, 17 TexReg 6279.</p></note></section><section identifier="/us/state/tx/tac/t40/p19/c730/scR/s730.1708"><num value="730.1708">§730.1708</num><heading>Venue</heading><content>Hearings are held in the departmental region responsible for the abuse, neglect, or exploitation determination, unless the administrative law judge determines that good cause exists for moving the hearing.</content><note type="source"><p>Source Note: The provisions of this §730.1708 adopted to be effective January 1, 1990, 14 TexReg 5937; amended to be effective February 15, 1992, 17 TexReg 409; duplicated effective September 1, 1992, as published in the Texas Register September 11, 1992, 17 TexReg 6279.</p></note></section><section identifier="/us/state/tx/tac/t40/p19/c730/scR/s730.1709"><num value="730.1709">§730.1709</num><heading>Authority</heading><content>The release hearing is conducted pursuant to the Administrative Procedure and Texas Register Act, Texas Civil Statutes, Article 6252-13a. The administrative law judge decides whether to uphold the abuse, neglect, or exploitation finding based on the evidence presented at the hearing. He has no authority to overrule state or federal statutes, policies, or regulations. The department has the burden of proof. The evidentiary standards applicable at the hearing are the same as those set forth in the program rules on which the finding or action is based.</content><note type="source"><p>Source Note: The provisions of this §730.1709 adopted to be effective January 1, 1990, 14 TexReg 5937; amended to be effective January 1, 1992, 16 TexReg 6764; amended to be effective February 15, 1992, 17 TexReg 409; duplicated effective September 1, 1992, as published in the Texas Register September 11, 1992, 17 TexReg 6279.</p></note></section><section identifier="/us/state/tx/tac/t40/p19/c730/scR/s730.1710"><num value="730.1710">§730.1710</num><heading>Representation for Petitioner</heading><content>Any petitioner may appear and be represented by an attorney at law authorized to practice law before the highest court of any state. The petitioner may also appear on his own behalf.</content><note type="source"><p>Source Note: The provisions of this §730.1710 adopted to be effective January 1, 1990, 14 TexReg 5937; duplicated effective September 1, 1992, as published in the Texas Register September 11, 1992, 17 TexReg 6279.</p></note></section><section identifier="/us/state/tx/tac/t40/p19/c730/scR/s730.1711"><num value="730.1711">§730.1711</num><heading>Withdrawal of Hearing Request and Informal Disposition</heading><content>(a) The petitioner may, at any time before the conclusion of the hearing, submit written notification to the department that he is withdrawing the hearing request.(b) Informal disposition may be made of any case by written stipulation, agreed settlement, consent order, or default.</content><note type="source"><p>Source Note: The provisions of this §730.1711 adopted to be effective January 1, 1990, 14 TexReg 5937; duplicated effective September 1, 1992, as published in the Texas Register September 11, 1992, 17 TexReg 6279.</p></note></section><section identifier="/us/state/tx/tac/t40/p19/c730/scR/s730.1712"><num value="730.1712">§730.1712</num><heading>Conduct of Hearings--General Requirements</heading><content>(a) The administrative law judge is in charge of proceedings. He has the authority to administer oaths, examine witnesses, issue subpoenas and commissions, and rule on admissibility of evidence and amendments to pleadings. He may also establish reasonable time limits for conducting individual hearings, request additional information, and issue intermediate orders. He has the authority to issue any orders necessary to enforce his rulings. These include, but are not limited to, the following:(1) exclusion of evidence or witnesses;(2) exclusion of oral argument;(3) summary orders or default judgment on any issues;(4) postponement or dismissal of the hearing with or without prejudice.(b) Subject to the administrative law judge's rulings and orders, opportunity must be given to all parties to respond to and present evidence and argument on all issues involved.(c) The petitioner and the respondent have opportunities to call any witnesses desired, but within the limits the administrative law judge sets.(d) If a party does not appear for the hearing, a default decision may be entered against him.(e) The administrative law judge may grant a postponement or continuance of the hearing for just cause.(f) A record must be made of the proceedings. The record in the case includes:(1) all pleadings, motions, and intermediate rulings;(2) evidence received or considered;(3) a statement of matters officially noticed;(4) questions and offers of proof, objections, and rulings on them;(5) proposed findings and exceptions;(6) any decision, opinion, or report by the administrative law judge; and(7) all staff memoranda or data submitted to or considered by the administrative law judge in making his decision.(g) A stenographic record of each hearing must be made. If requested by the administrative law judge, the proceedings must be transcribed and a transcript given to the administrative law judge. The costs associated with recording and transcribing the hearing may be assessed to one or more parties. If a party wants a transcript of the hearing, that party must pay all costs associated with providing the transcript. If a party fails to appear at a hearing and a default decision is entered against that party, the administrative law judge may assess court reporter costs against the defaulting party. The administrative law judge must designate the court reporter to record the proceedings.(h) The parties to the hearing may conduct cross-examinations required for a full and true disclosure of the facts.(i) Before or during the hearing, the administrative law judge may call or request any party to call a witness or witnesses the judge believes necessary to make the final decision.(j) Upon notifying all parties, the administrative law judge may communicate with department employees who have not participated in the hearing, to use the special skills or knowledge of the agency and its staff in evaluating the evidence. The administrative law judge may allow all parties to be present during this communication and, at his sole discretion, may allow parties to question the employee. The employee's communication is not part of the hearing and need not be recorded.(k) Any motion relating to a pending proceeding, unless made during a hearing, should be in writing and specify the desired relief and the specific reasons and basis for this relief. If based upon matters that do not appear of record, the motion must be supported by affidavit. Motions must be filed with the administrative law judge.(l) A party filing any protest, reply, answer, motion, or other pleading in any hearing after the hearing request has been filed must mail or otherwise deliver a copy to every other party of record. If any party has appeared in the proceeding by attorney or other representative authorized to make appearances, the attorney or other representative must be served. The willful failure of any party to make this service is sufficient grounds for the administrative law judge to enter an order striking the pleading from the record.(m) A certificate by the party, attorney, or representative who files a pleading stating that it has been served on the other parties will be prima facie evidence of service. The following form of certificate is sufficient. I hereby certify that I have this day of _______, 19_____, served copies of the foregoing pleading upon all other parties to this proceeding, by (here state the manner of service). __________ Signature(n) In all procedural matters not specifically governed by these sections, the Texas Rules of Civil Procedure apply, unless the administrative law judge determines that good cause exists for waiving these rules.(o) Records of the hearing are kept in department files for four years after a final decision is rendered or until any subsequent litigation arising from the hearing has been resolved.(p) At all hearings, each party, witness, attorney, representative, or other person must show proper dignity, courtesy, and respect for the administrative law judge and others participating in or observing the hearing. The administrative law judge is authorized to act as he considers necessary and appropriate to maintain proper decorum and conduct. Actions may include, but are not limited to, recessing the hearing to be reconvened at another time or place or excluding from the hearing any party, witness, attorney, representative, or other person for a period and under the conditions that the administrative law judge considers fair and just.</content><note type="source"><p>Source Note: The provisions of this §730.1712 adopted to be effective January 1, 1990, 14 TexReg 5937; duplicated effective September 1, 1992, as published in the Texas Register September 11, 1992, 17 TexReg 6279.</p></note></section><section identifier="/us/state/tx/tac/t40/p19/c730/scR/s730.1713"><num value="730.1713">§730.1713</num><heading>Prehearing Procedure</heading><content>(a) Prehearing conference. On the motion of the petitioner or the respondent or on his own motion, the administrative law judge may direct the parties and their attorneys or representatives to appear before him at a specified time and place for a conference before the hearing, to formulate issues and to consider:(1) the possibility of making admissions of certain averments of facts or stipulations to avoid the unnecessary introduction of proof;(2) the simplification of issues;(3) the procedure at the hearing;(4) the limitation, when possible, of the number of witnesses; and(5) other matters that may help to simplify the proceedings and the disposition of the case, including settlement of issues that are in dispute.(b) Discovery and production of documents and things for inspection, copying, or photographing. In all discovery matters not specifically governed by this subchapter, the Texas Rules of Civil Procedure are followed. Upon the timely motion of any party and notice to all other parties and subject to such limitations of the kind provided for discovery under the Texas Rules of Civil Procedure, the administrative law judge may order any party to produce and permit the inspection and copying or photographing by or on behalf of the moving party any of the following that are in his possession, custody, or control: designated documents, papers, books, accounts, letters, videotapes, photographs, objects, or tangible things, not privileged, that constitute or contain or are reasonably calculated to lead to the discovery of evidence that is material to any matter involved in the action. The administrative law judge may further order any party to permit entry upon designated land or other property in that party's possession or control for the purpose of inspecting, measuring, surveying, or photographing the property or any designated object or operation on the property that may be material to any matter involved in the action.(1) The order must specify the time, place, and manner of making the inspection, measurement, or survey and taking the copies and photographs and may prescribe terms and conditions that are just.(2) The identity and location of any potential party or witness may be obtained from any communication or other paper in a party's possession, custody, or control; any party may be required to produce and permit reports, including factual observations and opinions of an expert called as a witness, to be inspected and copied. The rights granted in this subsection may not extend to other written statements of witnesses or other written communications passing between agents or representatives or the employees of any party to the suit or to other communications between any party and his agents, representatives, or other employees, if they are made after the occurrence or transaction upon which the appeal is based and made in connection with the prosecution, investigation, or defense of this claim or the circumstances out of which the claim arose.(3) Any person, whether or not a party, is entitled to obtain, upon request, a copy of any statement he has previously made concerning the action or its subject matter. If his request is refused, he may move for an order according to this subsection. For the purpose of this subsection, a statement previously made is either:(A) a written statement signed or otherwise adopted or approved by the person making it; or(B) a stenographic, mechanical, electrical, videotape, or other recording or a transcription of the same statement, which is a substantially verbatim recital of an oral statement by the person making it and contemporaneously recorded.(c) Nonparty discovery. The administrative law judge may order a person, organizational entity, governmental agency, or corporation not a party to the hearing to produce according to this subsection. He may make this order only after a motion has been filed specifically stating the request and necessity for it. All parties and those who are not parties must have the opportunity to object in writing to the motion. At his own discretion, the administrative law judge may hold a hearing on the motion.(d) Admission of facts and of genuineness of documents. Any time after the department has acknowledged in writing a petitioner's request for a hearing, a party may deliver or have delivered to any other party a written request for admission of facts and genuineness of documents. The provisions of the Rules of Civil Procedure, Rule 169, apply, except that filing and enforcing are controlled by the administrative law judge and that the time limit to respond is 25 (not 30) days.(e) Interrogatories to parties. Any time after the department has acknowledged a petitioner's request for a hearing, any party may serve interrogatories upon any other party. The provisions of the Rules of Civil Procedure, Rule 168, apply except that filing and enforcing are controlled by the administrative law judge and the number of questions is limited to no more than 25 answers.(f) Depositions to perpetuate testimony.(1) Request. When the Texas Department of Protective and Regulatory Services (PRS) expects to initiate an adverse proceeding, that is a proceeding which may result in adverse action, and PRS desires to preserve the testimony of any witness so that the testimony may be used in the adverse proceeding or in an appeal from that proceeding, PRS's representative may file a request with the Hearings Department to take the deposition of the witness. The request must include:(A) a statement that PRS expects to initiate an adverse proceeding as the result of an investigation being made;(B) a short statement of the subject matter of the investigation;(C) the names and residences, if known, or a description of the persons whose interest in the matter is expected to be adverse to PRS;(D) the names and addresses of the persons to be deposed and PRS's reasons for desiring to perpetuate the testimony; and(E) a request for an order from the Hearings Department authorizing the taking of the deposition.(2) Order. If satisfied that the perpetuation of testimony may prevent a failure or delay of justice, the administrative law judge will make an order authorizing the taking of the deposition and will state whether the deposition will be taken upon oral examination or written questions. The time and place at which the depositions are to be taken may be stated in the order or by means of notice as provided for depositions generally. The taking, signing, returning, objections to, and use of the depositions are subject to the deposition rules in the Texas Rules of Civil Procedure, provided that those rules are consistent with this section.</content><note type="source"><p>Source Note: The provisions of this §730.1713 adopted to be effective January 1, 1990, 14 TexReg 5937; amended to be effective January 1, 1992, 16 TexReg 6764; duplicated effective September 1, 1992, as published in the Texas Register September 11, 1992, 17 TexReg 6279.</p></note></section><section identifier="/us/state/tx/tac/t40/p19/c730/scR/s730.1714"><num value="730.1714">§730.1714</num><heading>Evidence and Depositions</heading><content>(a) Rules of evidence.(1) Irrelevant, immaterial, or unduly repetitious evidence is excluded. The rules of evidence, as applied in nonjury civil cases in the district courts of the state, must be followed. When necessary to determine facts not reasonably susceptible of proof under those rules, evidence not admissible under those rules may be admitted. This is true except when precluded by statute, if it is of a type commonly relied upon by reasonably prudent individuals in the conduct of their affairs. The rules of privilege recognized by law are in effect. Objections to evidentiary offers may be made and must be noted in the record. Subject to these requirements, any part of the evidence may be received in written form if a hearing is to be expedited and if the parties' interest will not be substantially prejudiced. The prepared testimony of a witness upon direct examination, either in narrative or question and answer form, may be incorporated in the record as if read or received as an exhibit after the witness has been sworn and has identified that the prepared testimony is as true and accurate as his oral testimony would be. The witness is subject to clarifying questions and to cross-examination. The prepared testimony is subject to a motion to strike either in whole or in part.(2) Documentary evidence may be received in the form of copies or excerpts if the original is not readily available. On request, parties can compare the copy with the original.(3) Official notice may be taken of all facts judicially known. In addition, notice may be taken of generally recognized facts within the area of the department's specialized knowledge. Parties must be notified either before or during the hearing, or by reference in preliminary reports or otherwise, of the material officially noticed, including any staff memoranda or data. Parties must be given an opportunity to contest the material so noticed. The special skills or knowledge of the department and its staff may be used in evaluating the evidence.(4) The PRS or any other party to an administrative hearing may apply for permission to obtain the testimony of a witness by telephone when it is impossible or impractical to obtain the physical presence of a witness in the hearing room due to the witness's age, illness, custodial restrictions, or residence more than 100 miles from the site of the hearing.(A) Application. Application for permission to secure testimony by telephone must be made to the presiding administrative law judge. Other parties must be notified of the application at least 10 days prior to the date of the administrative hearing. The application must state the reasons for the request. If the presiding administrative law judge finds that good cause exists to permit testimony to be obtained by telephone, he must grant the application and immediately advise the parties. The administrative law judge must rule on the application at least five days prior to the administrative hearing.(B) Testimony. If testimony by telephone is allowed, the hearing room must be equipped with a speaker phone or other telephone equipment which will allow all parties, including the administrative law judge and the court reporter, to hear the statements of the witness simultaneously and will also allow the witness to hear all parties and the administrative law judge. The witness must be sworn and his testimony taken as if he were physically present at the hearing.(b) Subpoenas. On its own motion or on the written request of any party, on a showing of good cause, and on deposit of sums that reasonably ensure payment of the amounts estimated to accrue under this subsection, the department may issue a subpoena addressed to the sheriff or any constable to require attendance of witnesses and production of books, records, papers, or other objects that may be necessary and proper for the purposes of the proceedings. These subpoenas may be issued by the commissioner or designee and the administrative law judge. Any party requesting a subpoena is responsible for preparation and service of the subpoena. Upon request, the Hearings Department will supply appropriate forms. If a party is not represented by an attorney, the administrative law judge may prepare the subpoena.(c) Depositions.(1) On its own motion or on any party's written request of and on deposit of sums that reasonably ensure payment of the amounts estimated to accrue under this subsection, the department may issue a commission, addressed to the several officers authorized by the statute to take depositions, to require that the deposition of a witness be taken. The commission authorizes the issuance of any subpoenas necessary to require that the witness appear and produce, at the time the deposition is taken, books, records, papers, or other objects that may be necessary and proper for the purposes of the proceeding. The commission may be issued by the commissioner or his designee and the administrative law judge. The deposition of a member of an agency board may not be taken after a hearing date has been set. The deposition is taken according to the requirements of the Administrative Procedure and Texas Register Act, Texas Civil Statutes, Article 6252-13a. Any party desiring the issuance of a commission to take a deposition is responsible for the preparation and transmittal of the commission. Upon request, the Hearings Department will supply appropriate forms. If a party is not represented by an attorney, the administrative law judge may prepare the commission.(2) A deposition may be returned to the department either by mail, by a party interested in taking the deposition, or by any other person. If returned by mail, the department must endorse the deposition to show that it was received from the post office. The department employee receiving the deposition must sign it. If it is not sent by mail, the person delivering it to the department must make an affidavit before a department representative that:(A) he received it from the hands of the officer before whom it was taken;(B) it has not been out of his possession since; and(C) it has undergone no alteration.(3) After the deposition is filed with the department, any department employee may open the deposition at the request of either party or his counsel. The employee must endorse the deposition by entering the date and the name of the person who asked that it be opened. The employee then signs the deposition. The deposition must remain on file with the department and may be inspected by any party.(d) Filing. Requests for commissions or subpoenas are addressed to the administrative law judge.(e) Reimbursement of witness or deponent.(1) A witness or deponent who is not a party and who is subpoenaed or compelled to attend any hearing or proceeding to give a deposition or to produce books, records, papers, or other objects that are necessary for the proceeding is entitled to receive:(A) reimbursement for travel expenses in an amount generally applicable to state employees for traveling to and from the place of the hearing or the place where the deposition is taken. This is true if the place is more than 25 miles from the person's residence;(B) either a fee in an amount equal to the rate of per diem generally applicable to state employees, or $10 a day, whichever is greater, for each day or part of a day the person must be present as a witness or deponent.(2) Travel expenses and fees for nonemployee witnesses the department calls are paid by the program area responsible for the abuse/neglect determination. Travel expenses and fees for nonemployee witnesses called by the petitioner are the petitioner's responsibility and fees payable to these witnesses are not governed by this subsection.(f) Failure to comply. If a person fails to comply with a subpoena or commission, the department, acting through the attorney general or the party requesting the subpoena or commission, may bring suit to enforce the subpoena or commission in a district court in Travis County or in the county in which a hearing conducted by the department is held.</content><note type="source"><p>Source Note: The provisions of this §730.1714 adopted to be effective January 1, 1990, 14 TexReg 5937; amended to be effective August 1, 1991, 16 TexReg 3779; amended to be effective January 1, 1992, 16 TexReg 6764; duplicated effective September 1, 1992, as published in the Texas Register September 11, 1992, 17 TexReg 6279.</p></note></section><section identifier="/us/state/tx/tac/t40/p19/c730/scR/s730.1715"><num value="730.1715">§730.1715</num><heading>Deliberation</heading><content>After all evidence has been heard, the administrative law judge adjourns the hearing. Within 60 days from the date of adjournment, the administrative law judge makes a final decision upon the appeal.</content><note type="source"><p>Source Note: The provisions of this §730.1715 adopted to be effective January 1, 1990, 14 TexReg 5937; duplicated effective September 1, 1992, as published in the Texas Register September 11, 1992, 17 TexReg 6279.</p></note></section><section identifier="/us/state/tx/tac/t40/p19/c730/scR/s730.1716"><num value="730.1716">§730.1716</num><heading>Decisions</heading><content>(a) The final decision is based solely upon the record of the individual case, is in writing, and includes the findings of fact and conclusions of law in separate statements.(b) Findings of fact, if set forth in statutory language, must be accompanied by a concise and explicit statement of the underlying facts supporting the findings.(c) Findings of fact must be based exclusively on the evidence and on matters officially noticed. If a party submits a proposed finding of fact, the decision must include a ruling on each proposed finding.(d) The statement of findings must explicitly declare whether or not a preponderance of the evidence supports the department's determination that the alleged perpetrator is responsible for abuse or neglect of a child, or for abuse, neglect, or exploitation of an aged or disabled adult.(e) The administrative law judge enters the orders that are necessary to implement his decision. He may also make any other recommendations that he considers appropriate.(f) The decision is mailed by certified mail, return receipt requested, or personally delivered to the petitioner or his attorney and to the respondent.(g) Either party may file a written motion for a rehearing. This motion must be addressed to the administrative law judge and must be filed within 20 days after the date that the final decision was mailed. Replies to a motion for a rehearing must be filed within 30 days after the date that the final decision was rendered. The administrative law judge either grants or denies the motion for a rehearing within 45 days after the date that the final decision was rendered. If the administrative law judge does not rule on the motion for rehearing, the motion is overruled by operation of law 45 days after the date the party or his attorney is notified of the final decision or order.</content><note type="source"><p>Source Note: The provisions of this §730.1716 adopted to be effective January 1, 1990, 14 TexReg 5937; amended to be effective August 1, 1991, 16 TexReg 3779; duplicated effective September 1, 1992, as published in the Texas Register September 11, 1992, 17 TexReg 6279; amended to be effective September 1, 1993, 18 TexReg 4648.</p></note></section></subchapter><subchapter identifier="/us/state/tx/tac/t40/p19/c730/scU"><num value="U">SUBCHAPTER U</num><heading>FRAUD INVOLVING RECIPIENTS</heading><section identifier="/us/state/tx/tac/t40/p19/c730/scU/s730.2001"><num value="730.2001">§730.2001</num><heading>Terms and General Responsibility</heading><content>(a) Food stamp, medical assistance, and financial assistance are indicated when the term "assistance" is used in this subchapter. Medical assistance, aid to families with dependent children (AFDC), and food stamp intentional program violations are not given special treatment except if specific procedural distinctions are noted.(b) A household member has committed a food stamp intentional program violation if he has intentionally:(1) made a false and misleading statement;(2) misrepresented, concealed, or withheld facts; or(3) violated any provision of the Food Stamp Act, the Food Stamp Program regulations, or related state statutes in order to use, present, transfer, acquire, receive, or possess food stamp coupons or food stamp authorizations to participate (ATPs).(c) An AFDC intentional program violation has occurred if a recipient has intentionally, for the purpose of establishing or maintaining the family's eligibility for AFDC or for increasing or preventing a reduction in the amount of the grant:(1) made a false or misleading statement;(2) misrepresented, concealed, or withheld facts, or represented a falsehood to be a fact; or(3) violated any provision of the state or federal statutes or regulations applicable to the AFDC program.(d) A household member may be charged with an intentional program violation even if he has not actually received benefits to which he is not entitled.(e) PRS does not include as part of a claim any overissuance made prior to six years before the overissuance is discovered.(f) In food stamp and AFDC intentional violation proceedings against individuals, actions under either the food stamp or AFDC programs will be coordinated with the actions under the other, to the extent possible.</content><note type="source"><p>Source Note: The provisions of this §730.2001 adopted to be effective January 1, 1976; amended to be effective December 28, 1976, 1 TexReg 3515; amended to be effective March 1, 1979, 4 TexReg 555; amended to be effective June 15, 1987, 12 TexReg 1394; amended to be effective July 1, 1992, 17 TexReg 3477; duplicated effective September 1, 1992, as published in the Texas Register September 11, 1992, 17 TexReg 6279.</p></note></section><section identifier="/us/state/tx/tac/t40/p19/c730/scU/s730.2003"><num value="730.2003">§730.2003</num><heading>Determination and Disposition of Intentional Program Violations</heading><content>(a) The Texas Department of Protective and Regulatory Services (PRS) determines the existence of intentional program violations; refers cases for investigation, administrative hearings, and prosecution; takes collection action, and ensures clients' rights according to applicable Texas criminal statutes and the following:(1) Aid to Families with Dependent Children (AFDC) Program--45 Code of Federal Regulations §§233.20(a)(13)(B), 235.110, 235. 112, and 235.113;(2) Food Stamp Program--7 Code of Federal Regulations §§273.16-273.18;(3) Medicaid Program--42 Code of Federal Regulations §455.2 and 455.16.(b) Individuals found to have committed an intentional program violation in the food stamp and/or AFDC programs either through an administrative disqualification hearing or by a court of appropriate jurisdiction, or who have signed a waiver of right to an administrative disqualification hearing, or on the basis of a plea of guilty or nolo contendere or otherwise in cases referred for prosecution in a state or federal court are ineligible to participate in the program for six months for the first violation, 12 months for the second violation, and permanently for the third violation. In AFDC cases, PRS does not take the needs of the disqualified individual into account during the period he is disqualified when determining the assistance unit's need and amount of assistance. PRS considers any resources and income of the disqualified individual as available to the assistance unit. PRS does not disqualify an individual from the AFDC program unless the overissuance of benefits resulting from the intentional violation occurred in the month of October 1988 or later.(c) Disqualified individuals are ineligible for AFDC Medicaid benefits during the disqualification period. However, they may qualify for and receive benefits under provisions of Texas Administrative Code, Title 40, Part I, Chapter 2 (relating to the Medically Needy Program) or under provisions of Texas Administrative cidem Title 40, Part I, Chapter 4 (relating to the Medical Programs for Children and Pregnant Women).(d) A household member may be charged with an intentional program violation even if he has not actually received benefits to which he is not entitled.(e) The amount of the intentional program violation claim must be calculated back to the month the act of intentional program violation occurred, regardless of the length of time that elapsed until the determination of intentional program violation was made. However, PRS must not include in its calculation any amount of the overissuance which occurred in a month more than six years from the date the overissuance was discovered for food stamp cases.</content><note type="source"><p>Source Note: The provisions of this §730.2003 adopted to be effective January 1, 1976; amended to be effective December 28, 1976, 1 TexReg 3515; amended to be effective June 15, 1987, 12 TexReg 1394; amended to be effective July 1, 1992, 17 TexReg 3477; duplicated effective September 1, 1992, as published in the Texas Register September 11, 1992, 17 TexReg 6279.</p></note></section><section identifier="/us/state/tx/tac/t40/p19/c730/scU/s730.2005"><num value="730.2005">§730.2005</num><heading>Eligibility during Investigation</heading><content>Investigation for potential intentional program violation is not to be used as a punitive action to deprive the recipient of assistance or services. Food stamps, assistance, or services are continued if current eligibility is established during the time that the alleged fraudulent acts are under review and during any period of prosecution or appeal.</content><note type="source"><p>Source Note: The provisions of this §730.2005 adopted to be effective June 15, 1987, 12 TexReg 1394; duplicated effective September 1, 1992, as published in the Texas Register September 11, 1992, 17 TexReg 6279.</p></note></section><section identifier="/us/state/tx/tac/t40/p19/c730/scU/s730.2007"><num value="730.2007">§730.2007</num><heading>Appeals</heading><content>The right to appeal and all applicable procedures for appeal are described in Subchapter L of this chapter (relating to Fair Hearings), Subchapter M of this chapter (relating to Appeals Process), and Subchapter N of this chapter (relating to Hearing Procedure). Administrative decisions to investigate a recipient's case for fraud and to refer such a case to local law enforcement officials are not subject to appeal.</content><note type="source"><p>Source Note: The provisions of this §730.2007 adopted to be effective June 15, 1987, 12 TexReg 1394; duplicated effective September 1, 1992, as published in the Texas Register September 11, 1992, 17 TexReg 6279.</p></note></section><section identifier="/us/state/tx/tac/t40/p19/c730/scU/s730.2009"><num value="730.2009">§730.2009</num><heading>Referral of Food Stamp and Aid to Families with Dependent Children (AFDC) Intentional Program Violation Claims to Administrative Disqualification Hearing Officer</heading><content>(a) If the investigator has documented evidence to substantiate that an individual in a food stamp or AFDC household has committed an intentional program violation, an administrative disqualification hearing may be held.(b) The Texas Department of Protective and Regulatory Services (PRS) may refer to the hearing officer only three types of cases that have first been referred to the prosecutor:(1) cases that were forwarded to the prosecutor but that he declined to prosecute; or(2) cases that were forwarded to the prosecutor in which no action was taken within a reasonable amount of time and the cases were formally withdrawn by PRS; or(3) cases dismissed by the prosecutor after charges were filed that do not reflect a lack of evidence to prosecute.(c) PRS may not refer the following cases to the hearing officer:(1) cases that were no-billed by a grand jury;(2) cases that were brought to trial and later dismissed for any reason; and(3) cases dismissed before trial in which the prosecutor has in some manner expressed the opinion that there was insufficient evidence to prosecute.(d) PRS gives individuals who are alleged to have committed an intentional program violation an opportunity to waive their right to an administrative disqualification hearing. By waiving this right, individuals acknowledge that they understand their rights and responsibilities, that disqualification will occur, and that they understand the disqualification period that applies to their case; and they agree to repay the overissuance without having a hearing.</content><note type="source"><p>Source Note: The provisions of this §730.2009 adopted to be effective June 15, 1987, 12 TexReg 1394; amended to be effective March 1, 1992, 17 TexReg 694; amended to be effective July 1, 1992, 17 TexReg 3477; duplicated effective September 1, 1992, as published in the Texas Register September 11, 1992, 17 TexReg 6279.</p></note></section><section identifier="/us/state/tx/tac/t40/p19/c730/scU/s730.2011"><num value="730.2011">§730.2011</num><heading>Collection Action on Food Stamp and Aid to Families with Dependent Children (AFDC) Intentional Program Violation Claims</heading><content>(a) The investigator must send the person determined to have committed an intentional program violation a repayment agreement. The investigator must send a repayment agreement even if the household already received a nonintentional program violation demand letter.(b) The Texas Department of Protective and Regulatory Services (PRS) must begin collection action on intentional program violation claims, unless:(1) the household has already repaid the overissuance because of a nonintentional program violation claim; or(2) the investigator documents that the household cannot be located.(c) The person who committed the intentional program violation, or the remaining household members, may begin making cash repayments before the disqualification period is imposed upon the guilty person. Benefits the household lost because of disqualification do not constitute repayment. PRS suspends collection action only on documented determination that the household cannot be located. Claims against a nonparticipating household may be suspended after the appropriate number of demand letters and it is determined the cost of further collection action is likely to exceed the amount that can be recovered. A claim may be determined uncollectible after three years. PRS must use suspended fraud claims to offset restored benefits.(d) If the investigator interviews the person suspected of committing an intentional program violation and the person expresses that he does not want to attend an administrative disqualification hearing and is willing to repay the overissuance, the investigator obtains his signature on a repayment agreement form and on an acknowledgment of administrative disqualification hearing form.(1) The hearing officer will not send a notice of the hearing to the person since the hearing is already scheduled on the acknowledgment of hearing form.(2) The hearing officer will conduct the hearing without the person being present. The hearing officer will notify the person of the determination. The 10-day waiting period usually allowed to give the person an opportunity to explain his failure to appear at the hearing does not apply if the waiver of attendance has been signed.(e) If the household against which collection action has been initiated for repayment of an intentional program violation claim is currently participating in the program and does not respond to the written demand letter within 10 days of the date the notice is mailed, PRS will reduce the household's food stamp allotment and/or AFDC grant. If a nonparticipating household against which collection action has been initiated fails to respond to the first demand letter, PRS sends additional demand letters at reasonable intervals, until:(1) the household responds by paying or agreeing to pay the claim;(2) the criteria for suspending collection action have been met; or(3) PRS initiates other collection action.(f) The investigator must establish a claim against the household the guilty person lives with.(g) Intentional program violation claims are collected in one of the following ways.(1) Cash repayment--The investigator must attempt to collect the amount due in one lump-sum payment.(2) Installment payments--If the household is unable to pay the claim in one payment, the investigator may establish a schedule of regular monthly payments. Payments should be set at a level which will result in repayment as soon as possible but not to exceed three years. The household must repay an amount equal to at least the allowable recoupment amount.(3) Reduction of food stamp allotment--Before recoupment, the investigator must discuss with the household the amount of food stamps to be recouped. The recoupment amount is 20% of the household's monthly entitlement or $10 per month, whichever is greater.(h) If the guilty person fails to make an agreed cash payment, PRS may recoup the amount owed, suspend collection action, or refer the case to a collection agency.(i) If the investigator interviews the person suspected of committing an intentional program violation and the person expresses that he does not want to have an administrative disqualification hearing and is willing to repay the overissuance, the following policies and procedures apply.(1) The investigator obtains the individual's signature on a repayment agreement form and on an administrative disqualification hearing waiver form.(2) By signing the waiver of hearing and repayment agreement forms, the recipient agrees that he does not want a hearing, that he will repay the overissuance, and that he understands that he will be disqualified from receiving food stamps and/or AFDC for a period of time determined by whether it is the first, second, or third offense. If there is no face-to-face contact between the investigator and the client, the client may be given an opportunity to waive his right to a hearing through direct mail contact.(3) The investigator will not send the case to the hearing officer, but will initiate repayment and disqualification actions.(4) During the interview with the client, the investigator gives the client an opportunity to retract the waiver within seven workdays of signing the waiver form. If PRS receives a written retraction of waiver by the seventh day from the date the recipient signed the waiver, an administrative hearing will be scheduled and conducted. If PRS does not receive a written retraction of the waiver by the end of the seventh day, the waiver and repayment agreement remain valid, and no further appeals will be authorized.</content><note type="source"><p>Source Note: The provisions of this §730.2011 adopted to be effective June 15, 1987, 12 TexReg 1394; amended to be effective March 1, 1992, 17 TexReg 694; amended to be effective July 1, 1992, 17 TexReg 3477; duplicated effective September 1, 1992, as published in the Texas Register September 11, 1992, 17 TexReg 6279.</p></note></section></subchapter><subchapter identifier="/us/state/tx/tac/t40/p19/c730/scW"><num value="W">SUBCHAPTER W</num><heading>FRAUD OR ABUSE INVOLVING INDIVIDUAL OR MAJOR PROVIDERS (EXCEPT MEDICAL)</heading><section identifier="/us/state/tx/tac/t40/p19/c730/scW/s730.2201"><num value="730.2201">§730.2201</num><heading>Responsibilities of the Department in Relation to Provider Fraud</heading><content>The Texas Department of Protective and Regulatory Services' responsibilities in relation to provider fraud include:(1) setting criteria for identifying cases of possible fraud or abuse;(2) establishing the methods of referral for investigating those case in which fraud is suspected;(3) keeping appropriate records and making periodic reports of suspected fraudulent cases;(4) collecting all overpayments.</content><note type="source"><p>Source Note: The provisions of this §730.2201 adopted to be effective April 1, 1981, 6 TexReg 1081; amended to be effective June 15, 1987, 12 TexReg 1395; duplicated effective September 1, 1992, as published in the Texas Register September 11, 1992, 17 TexReg 6279.</p></note></section><section identifier="/us/state/tx/tac/t40/p19/c730/scW/s730.2202"><num value="730.2202">§730.2202</num><heading>Statutory Bases for Prosecution</heading><content>(a) For all services for which the Texas Department of Protective and Regulatory Services (PRS) provides remuneration, PRS is in effect, the legal owner of the funds used to pay for the goods or services. PRS has the right and responsibility to seek legal redress for any overpayments that may occur as a result of a provider's actions.(b) The most common form of criminal sanction would take place under the Texas Penal Code, §§31.032, 7.23, and 37.10.</content><note type="source"><p>Source Note: The provisions of this §730.2202 adopted to be effective April 1, 1981, 6 TexReg 1081; amended to be effective June 15, 1987, 12 TexReg 1395; duplicated effective September 1, 1992, as published in the Texas Register September 11, 1992, 17 TexReg 6279.</p></note></section></subchapter></chapter><chapter identifier="/us/state/tx/tac/t40/p19/c732"><num value="732">CHAPTER 732</num><heading>CONTRACTED SERVICES</heading><subchapter identifier="/us/state/tx/tac/t40/p19/c732/scA"><num value="A">SUBCHAPTER A</num><heading>DISPUTE RESOLUTION</heading><section identifier="/us/state/tx/tac/t40/p19/c732/scA/s732.101"><num value="732.101">§732.101</num><heading>Purpose and Scope</heading><content>This subchapter governs the negotiation and mediation of a claim of breach of contract asserted by a Contractor against the Department, as well as a counterclaim asserted by the Department against the Contractor, pursuant to the requirements established under Chapter 2260 of the Texas Government Code. Chapter 2260 takes precedence to the extent of any conflict or inconsistency between these rules and the applicable requirements of Chapter 2260.</content><note type="source"><p>Source Note: The provisions of this §732.101 adopted to be effective February 2, 2021, 46 TexReg 842.</p></note></section><section identifier="/us/state/tx/tac/t40/p19/c732/scA/s732.103"><num value="732.103">§732.103</num><heading>Definitions</heading><content>The words and terms in this chapter have the following meanings, unless the context clearly indicates otherwise:(1) Claim--a demand for damages by the Contractor based upon the Department's alleged breach of contract;(2) Contractor--as defined by § 2260.001(2), Texas Government Code;(3) Commissioner--the chief administrative officer of the Department;(4) Counterclaim--a claim by the Department against the Contractor based upon the same contract as that of the Contractor's claim;(5) Day--a calendar day. If an act is required to occur on a date falling on a Saturday, Sunday, or holiday, the first working day following one of these days is the date to be counted as the required day for the act;(6) Department--the Texas Department of Family and Protective Services;(7) Event--an act or omission or a series of acts or omissions giving rise to a claim;(8) Negotiation--a consensual bargaining process in which the parties attempt to resolve a claim and counterclaim;(9) Parties--the Department and the Contractor that have entered into the contract that is the subject of the claim; and(10) SOAH--State Office of Administrative Hearings.</content><note type="source"><p>Source Note: The provisions of this §732.103 adopted to be effective February 2, 2021, 46 TexReg 842.</p></note></section><section identifier="/us/state/tx/tac/t40/p19/c732/scA/s732.105"><num value="732.105">§732.105</num><heading>Suits Against the Department for Contract Breach</heading><content>Subject to §2260.005 of the Texas Government Code, the procedures contained within Chapter 2260 of the Texas Government Code are exclusive and required prerequisites to suit in accordance with Chapter 107 of the Texas Civil Practice and Remedies Code. Chapter 2260 of the Texas Government Code does not prevent a contractor sued by a unit of state government from asserting a counterclaim or right of offset against the unit of state government in the court in which the unit of state government files the suit.</content><note type="source"><p>Source Note: The provisions of this §732.105 adopted to be effective February 2, 2021, 46 TexReg 842.</p></note></section><section identifier="/us/state/tx/tac/t40/p19/c732/scA/s732.107"><num value="732.107">§732.107</num><heading>Sovereign Immunity</heading><content>This subchapter does not waive the Department's sovereign immunity to suit or liability.</content><note type="source"><p>Source Note: The provisions of this §732.107 adopted to be effective February 2, 2021, 46 TexReg 842.</p></note></section><section identifier="/us/state/tx/tac/t40/p19/c732/scA/s732.109"><num value="732.109">§732.109</num><heading>Requirements for Notice of Claim of Breach of Contract</heading><content>(a) A Contractor asserting a claim of breach of contract under Chapter 2260 of the Texas Government Code must file notice of the claim as provided in this section.(b) The notice of the claim must be:(1) in writing and signed by the Contractor or the Contractor's authorized representative; and(2) delivered by hand, certified mail return receipt requested, or other verifiable delivery service, to the:(A) contract signatory for the Department of the region or state office division which signed the contract;(B) The person designated in the contract as the appropriate receiver of legal notice; or(C) the Commissioner of the Department.(c) The notice must state in detail:(1) the nature of the alleged breach of contract, including the date of the event that the Contractor asserts as the basis of the claim and each contractual provision allegedly breached;(2) a description of damages that are recoverable under §2260.003 of the Texas Government Code that the Contractor asserts resulted from the alleged breach, including the amount and method used to calculate those damages; and(3) the legal theory of recovery, including the relationship between the alleged breach and the damages claimed.(d) The notice of claim must be delivered no later than the 180th Day after the date of the event that the Contractor asserts as the basis of the claim.</content><note type="source"><p>Source Note: The provisions of this §732.109 adopted to be effective February 2, 2021, 46 TexReg 842.</p></note></section><section identifier="/us/state/tx/tac/t40/p19/c732/scA/s732.111"><num value="732.111">§732.111</num><heading>Department Counterclaims</heading><content>(a) The Department may assert a counterclaim under Chapter 2260 of the Government Code, as provided in this section. The counterclaim must be:(1) in writing; and(2) delivered by hand, certified mail return receipt requested, or other verifiable delivery service to the Contractor or the representative of the Contractor who signed the notice of claim of breach of contract.(b) The notice must state in detail:(1) the nature of the counterclaim;(2) a description of damages or offsets sought, including the amount and method used to calculate those damages or offsets; and(3) the legal theory supporting the counterclaim.(c) The notice of counterclaim must be delivered to the Contractor no later than the 60th Day after the Department's receipt of the Contractor's notice of claim.(d) Nothing in this subchapter precludes the Department from initiating a lawsuit for damages against the Contractor in a court of competent jurisdiction.</content><note type="source"><p>Source Note: The provisions of this §732.111 adopted to be effective February 2, 2021, 46 TexReg 842.</p></note></section><section identifier="/us/state/tx/tac/t40/p19/c732/scA/s732.113"><num value="732.113">§732.113</num><heading>Duty to Negotiate</heading><content>The parties must negotiate in accordance with the timetable set forth in §732.115 of this title (relating to Negotiation Timetable) in an attempt to resolve all claims and counterclaims. No party is obligated to settle with the other party as a result of the negotiation.</content><note type="source"><p>Source Note: The provisions of this §732.113 adopted to be effective February 2, 2021, 46 TexReg 842.</p></note></section><section identifier="/us/state/tx/tac/t40/p19/c732/scA/s732.115"><num value="732.115">§732.115</num><heading>Negotiation Timetable</heading><content>(a) Following receipt of a Contractor's notice of claim, the Commissioner or another Department officer designated in the contract will review the Contractor's claim and the Department's counterclaim, if any, and initiate negotiations with the Contractor in an attempt to resolve the claim and counterclaim.(b) The parties will begin negotiations within a reasonable period of time, not to exceed 120 Days following the date the Department receives the Contractor's notice of claim.(c) The parties may conduct negotiations according to an agreed upon schedule as long as they complete the negotiations no later than the 270th Day after the Department receives the Contractor's notice of claim, subject to one or more extensions agreed upon by the parties.(d) The parties may agree in writing on or before the 270th Day after the Department receives the Contractor's notice of claim to extend the time for negotiations. The agreement must be signed by representatives of the parties with authority to bind each respective party and must provide for the extension of the statutory negotiation period. The parties may enter into a series of written extension agreements that comply with the requirements of this section.(e) The Contractor may request a contested case hearing before the State Office of Administrative Hearings on or before the 270th Day after the Department receives the Contractor's notice of claim, or the expiration of any extension agreed to by the parties.(f) The parties may agree to mediate the dispute at any time before the 270th Day after the Department receives the Contractor's notice of claim or before the expiration of any extension agreed to by the parties.</content><note type="source"><p>Source Note: The provisions of this §732.115 adopted to be effective February 2, 2021, 46 TexReg 842.</p></note></section><section identifier="/us/state/tx/tac/t40/p19/c732/scA/s732.117"><num value="732.117">§732.117</num><heading>Negotiations</heading><content>(a) The negotiation may be conducted by any method, technique, or procedure authorized under the contract or agreed upon by the parties.(b) To facilitate the meaningful evaluation and negotiation of the claim and any counterclaim, the parties may exchange relevant documents that support their respective claims, defenses, counterclaims, or positions.(c) Material submitted pursuant to this section and claimed to be confidential by the Contractor will be handled pursuant to the requirements of the Public Information Act, Government Code, Chapter 552.</content><note type="source"><p>Source Note: The provisions of this §732.117 adopted to be effective February 2, 2021, 46 TexReg 842.</p></note></section><section identifier="/us/state/tx/tac/t40/p19/c732/scA/s732.119"><num value="732.119">§732.119</num><heading>Settlement Approval Procedures</heading><content>The parties' settlement approval procedures must be disclosed prior to, or at the beginning of, negotiations. To the extent possible, the parties must select negotiators who are knowledgeable about the subject matter of the dispute, who are in a position to reach agreement, and who can credibly recommend approval of an agreement.</content><note type="source"><p>Source Note: The provisions of this §732.119 adopted to be effective February 2, 2021, 46 TexReg 842.</p></note></section><section identifier="/us/state/tx/tac/t40/p19/c732/scA/s732.121"><num value="732.121">§732.121</num><heading>Settlement Agreement</heading><content>(a) A settlement agreement may resolve an entire claim or any designated portion of a claim.(b) To be enforceable, a settlement agreement must be in writing and signed by representatives of the Contractor and the Department who have authority to bind each respective party.(c) A partial settlement does not waive a party's rights under the Government Code, Chapter 2260, as to the parts of the claim or counterclaim that are not resolved.</content><note type="source"><p>Source Note: The provisions of this §732.121 adopted to be effective February 2, 2021, 46 TexReg 842.</p></note></section><section identifier="/us/state/tx/tac/t40/p19/c732/scA/s732.123"><num value="732.123">§732.123</num><heading>Costs of Negotiations</heading><content>Unless the parties agree otherwise, each party will be responsible for its own costs incurred in connection with a negotiation, including, without limitation, the costs of attorney's fees, consultant's fees, and expert's fees.</content><note type="source"><p>Source Note: The provisions of this §732.123 adopted to be effective February 2, 2021, 46 TexReg 842.</p></note></section><section identifier="/us/state/tx/tac/t40/p19/c732/scA/s732.125"><num value="732.125">§732.125</num><heading>Contractor Contested Case Hearings</heading><content>(a) If a claim for breach of contract is not resolved in its entirety on or before the 270th Day after the Department receives the notice of claim, or after the expiration of any extension, the Contractor may file a request with the Department for a contested case hearing before SOAH in accordance with §2260.102 of the Texas Government Code.(b) A request for a contested case hearing must state the legal and factual basis for the claim, request that the claim be referred to SOAH for a contested case hearing, and must be delivered within 30 Days after the 270th Day, or the expiration of any agreed extensions, to the Commissioner of the Department or the person designated in the contract to receive notice.(c) If the parties reach an impasse in the negotiations and proceed to a contested case hearing because it would serve the interests of justice, the parties may agree to submit the case to SOAH before the 270th Day after the notice of claim is received by the Department to the extent that the claim or counterclaim, if any, remains unsolved.</content><note type="source"><p>Source Note: The provisions of this §732.125 adopted to be effective February 2, 2021, 46 TexReg 842.</p></note></section><section identifier="/us/state/tx/tac/t40/p19/c732/scA/s732.127"><num value="732.127">§732.127</num><heading>Mediation of Contract Claims</heading><content>The Contractor and the Department may agree to mediate the claim and any counterclaim at any time.</content><note type="source"><p>Source Note: The provisions of this §732.127 adopted to be effective February 2, 2021, 46 TexReg 842.</p></note></section><section identifier="/us/state/tx/tac/t40/p19/c732/scA/s732.129"><num value="732.129">§732.129</num><heading>Mediation</heading><content>(a) A mediator may not impose his or her own judgment on the issues for that of the parties. The mediator must be acceptable to both parties.(b) The mediation is subject to the provisions of the Governmental Dispute Resolution Act, Government Code, Chapter 2009.(c) The term "mediation" is assigned the meaning set forth in the Civil Practice and Remedies Code §154.023.(d) To facilitate a meaningful opportunity for settlement, the parties will, to the extent possible, select representatives who are knowledgeable about the subject matter of the dispute, who are in a position to reach agreement, and who can credibly recommend approval of an agreement.</content><note type="source"><p>Source Note: The provisions of this §732.129 adopted to be effective February 2, 2021, 46 TexReg 842.</p></note></section><section identifier="/us/state/tx/tac/t40/p19/c732/scA/s732.131"><num value="732.131">§732.131</num><heading>Costs of Mediation</heading><content>Unless the parties agree otherwise, the costs of the mediator must be divided equally between the parties. Each party must be responsible for its own costs incurred in connection with the mediation, including costs for reproduction of documents requested by such party, attorney's fees, consultant's fees, and expert's fees.</content><note type="source"><p>Source Note: The provisions of this §732.131 adopted to be effective February 2, 2021, 46 TexReg 842.</p></note></section><section identifier="/us/state/tx/tac/t40/p19/c732/scA/s732.133"><num value="732.133">§732.133</num><heading>Mediation Settlement Agreements</heading><content>(a) A settlement agreement reached during, or as a result of, mediation that resolves an entire claim, or any designated and severable portion of a claim, or counterclaim, if any, must be in writing and signed by representatives of the Contractor and the Department who have authority to bind each respective party.(b) If the settlement agreement does not resolve all issues raised by the claim or counterclaim, if any, the agreement must identify the issues that are not resolved.(c) A partial settlement does not waive a Contractor's rights under the Texas Government Code, Chapter 2260, as to the parts of the claim that are not resolved, nor does it waive the Department's rights as to parts of the counterclaim that are not resolved.</content><note type="source"><p>Source Note: The provisions of this §732.133 adopted to be effective February 2, 2021, 46 TexReg 842.</p></note></section></subchapter><subchapter identifier="/us/state/tx/tac/t40/p19/c732/scB"><num value="B">SUBCHAPTER B</num><heading>ENHANCED CONTRACT MONITORING</heading><section identifier="/us/state/tx/tac/t40/p19/c732/scB/s732.201"><num value="732.201">§732.201</num><heading>Enhanced Contract Monitoring</heading><content>(a) Pursuant to Texas Government Code §2261.253, DFPS will identify contracts that require enhanced monitoring.(b) Contracts will be monitored in accordance with DFPS' policies and procedures.</content><note type="source"><p>Source Note: The provisions of this §732.201 adopted to be effective November 8, 2021, 46 TexReg 7641.</p></note></section></subchapter><subchapter identifier="/us/state/tx/tac/t40/p19/c732/scC"><num value="C">SUBCHAPTER C</num><heading>COMMUNITY-BASED CARE SERVICES</heading><section identifier="/us/state/tx/tac/t40/p19/c732/scC/s732.301"><num value="732.301">§732.301</num><heading>Advanced Payment for Contracted Social Services</heading><content>DFPS may make advance payments to contractors for contracted social services subject to the following limitations:(1) Funds designated for advance payments must be available for DFPS to make advance payments to contractors.(2) The contractor must use the advance payments for operating expenses allowed under an existing DFPS contract.(3) A contract must be in effect before DFPS makes an advance payment.(4) The advance payment for each contract is based on need and must not be more than 15% of the contractors' total compensation from DFPS under the contract.(5) DFPS may adjust the advance payment amount based on the contractor's cash outflow and service level variations.(6) The contractor must liquidate the advance payment either at the end of each contract period consistent with the terms of each specific contract or at other times determined necessary by DFPS. The contract period begins with the contract's effective date and ends with its termination date.(7) DFPS will not make advance payments to a contractor if the contractor has not liquidated the advance payment for the previously contracted period according to the terms of the contract.(8) DFPS may impose additional limitations if the limitations do not conflict with this section.</content><note type="source"><p>Source Note: The provisions of this §732.301 adopted to be effective June 17, 2015, 40 TexReg 3638; transferred effective August 15, 2024, as published in the July 19, 2024, issue of the Texas Register, 49 TexReg 5361.</p></note></section><section identifier="/us/state/tx/tac/t40/p19/c732/scC/s732.303"><num value="732.303">§732.303</num><heading>Unsolicited Proposals for Community-Based Care Services</heading><content>(a) As provided by §264.157 of the Texas Family Code, the Texas Department of Family and Protective Services (DFPS) accepts and evaluates unsolicited proposals from entities based in this state to provide community-based care services in a geographic service area where DFPS has not implemented community-based care.(b) An unsolicited proposal for community-based care services must:(1) demonstrate the entity meets the criteria for community-based care services as described in Texas Family Code, Chapter 264, Subchapter B-1;(2) demonstrate the entity has established connections to the area the entity proposes to serve; and(3) comply with applicable state procurement laws and rules.(c) An unsolicited proposal for community-based care services is submitted to DFPS by email to CBCUnsolicitedProposal@dfps.texas.gov.</content><note type="source"><p>Source Note: The provisions of this §732.3033 adopted to be effective February 9, 2023, 48 TexReg 505; transferred effective August 15, 2024, as published in the July 19, 2024, issue of the Texas Register, 49 TexReg 5361.</p></note></section></subchapter></chapter><chapter identifier="/us/state/tx/tac/t40/p19/c735"><num value="735">CHAPTER 735</num><heading>INDEPENDENT COURT-ORDERED ADOPTION EVALUATIONS</heading><subchapter identifier="/us/state/tx/tac/t40/p19/c735/scA"><num value="A">SUBCHAPTER A</num><heading>DEFINITIONS, PURPOSE, AND SCOPE</heading><section identifier="/us/state/tx/tac/t40/p19/c735/scA/s735.101"><num value="735.101">§735.101</num><heading>What do certain words and terms mean in this subchapter?</heading><content>These words have the following meaning in this subchapter:(1) Adoption evaluation--A pre-placement or post-placement evaluative process regarding the adoption of a child. There is a written report for each pre-placement and post-placement portion of the adoption evaluation that summarizes the information obtained during the evaluation, the assessments and conclusions drawn during the evaluation process, and recommendations made. These reports are provided to the court, the parties to the suit for adoption, and the parties' attorneys. An adoption evaluation must include an evaluation of the circumstances and the condition of the home and social environment of any person requesting to adopt a child.(2) Adoption evaluator--A person court-ordered to conduct an adoption evaluation under Chapter 107, Texas Family Code.(3) Adoptive parents--The prospective adoptive parent or parents who have filed a petition to adopt a child.(4) Child--A specific child whom the adoptive parents petitioned the court to adopt, unless otherwise stated or the context clearly indicates otherwise.(5) Department--The Department of Family and Protective Services.(6) "I" or "You"--The adoption evaluator.</content><note type="source"><p>Source Note: The provisions of this §735.101 adopted to be effective March 1, 2016, 41 TexReg 1489; transferred effective May 1, 2018, as published in the Texas Register April 13, 2018, 43 TexReg 2289.</p></note></section><section identifier="/us/state/tx/tac/t40/p19/c735/scA/s735.103"><num value="735.103">§735.103</num><heading>What is the purpose of this subchapter?</heading><content>This subchapter establishes the minimum requirements for the pre-placement and post-placement portions of an independent court-ordered adoption evaluation and the respective reports. Unless otherwise agreed to by the court, the pre-placement and post-placement portions of an independent court-ordered adoption evaluation and the reports must comply with these minimum requirements.</content><note type="source"><p>Source Note: The provisions of this §735.103 adopted to be effective March 1, 2016, 41 TexReg 1489; transferred effective May 1, 2018, as published in the Texas Register April 13, 2018, 43 TexReg 2289.</p></note></section><section identifier="/us/state/tx/tac/t40/p19/c735/scA/s735.105"><num value="735.105">§735.105</num><heading>Who is responsible for complying with the rules of this subchapter?</heading><content>An adoption evaluator who is court-ordered to conduct an adoption evaluation must comply with these rules unless:(1) The court orders otherwise;(2) The adoption evaluator is an employee of a licensed child-placing agency or the department or a contractor for the department; or(3) Services are being provided in accordance with the Interstate Compact on the Placement of Children adopted under Chapter 162, Texas Family Code.</content><note type="source"><p>Source Note: The provisions of this §735.105 adopted to be effective March 1, 2016, 41 TexReg 1489; transferred effective May 1, 2018, as published in the Texas Register April 13, 2018, 43 TexReg 2289.</p></note></section></subchapter><subchapter identifier="/us/state/tx/tac/t40/p19/c735/scB"><num value="B">SUBCHAPTER B</num><heading>MAKING ASSESSMENTS, CONCLUSIONS, AND RECOMMENDATIONS</heading><section identifier="/us/state/tx/tac/t40/p19/c735/scB/s735.201"><num value="735.201">§735.201</num><heading>How does an adoption evaluator make assessments, conclusions, and recommendations when conducting an adoption evaluation?</heading><content>An adoption evaluator:(1) Must conform the evaluator's actions to the professional standards of care applicable to the evaluator's licensure and any administrative rules, ethical standards, or guidelines adopted by the state agency that licenses the evaluator, unless otherwise directed by a court or prescribed by a rule in this subchapter;(2) Shall follow evidence-based practice methods and make use of current best evidence in making assessments, conclusions, and recommendations;(3) Shall verify, to the extent possible, each statement of fact pertinent to an adoption evaluation and shall note the sources of verification and information in any report prepared on the evaluation; and(4) Shall state the basis for the evaluator's conclusions or recommendations in any report prepared on the evaluation.</content><note type="source"><p>Source Note: The provisions of this §735.201 adopted to be effective March 1, 2016, 41 TexReg 1489; transferred effective May 1, 2018, as published in the Texas Register April 13, 2018, 43 TexReg 2289.</p></note></section><section identifier="/us/state/tx/tac/t40/p19/c735/scB/s735.203"><num value="735.203">§735.203</num><heading>May I consider the adoptive parent's membership in a military organization as a factor in an adoption evaluation?</heading><content>Texas Family Code §162.0025 prohibits any person conducting an adoption evaluation from considering membership in the armed forces of the United States, Texas National Guard, National Guard in another state, or in a reserve component of the armed forces of the United States as a negative factor in determining whether the adoptive parents would be suitable or whether an adoption is in the best interest of the child.</content><note type="source"><p>Source Note: The provisions of this §735.203 adopted to be effective March 1, 2016, 41 TexReg 1489; transferred effective May 1, 2018, as published in the Texas Register April 13, 2018, 43 TexReg 2289.</p></note></section><section identifier="/us/state/tx/tac/t40/p19/c735/scB/s735.205"><num value="735.205">§735.205</num><heading>Does an adoption evaluator have to report an illegal adoptive placement?</heading><content>Yes, an adoption evaluator must report to the department any placement of a child in an adoptive home that appears to have been made by someone other than a licensed child-placing agency or a child's parent or managing conservator.</content><note type="source"><p>Source Note: The provisions of this §735.205 adopted to be effective March 1, 2016, 41 TexReg 1489; transferred effective May 1, 2018, as published in the Texas Register April 13, 2018, 43 TexReg 2289.</p></note></section></subchapter><subchapter identifier="/us/state/tx/tac/t40/p19/c735/scC"><num value="C">SUBCHAPTER C</num><heading>MINIMUM REQUIREMENTS FOR THE PRE-PLACEMENT PORTION OF AN ADOPTION EVALUATION AND REPORT</heading><section identifier="/us/state/tx/tac/t40/p19/c735/scC/s735.301"><num value="735.301">§735.301</num><heading>When is the pre-placement portion of an adoption evaluation conducted?</heading><content>A pre-placement portion of an adoption evaluation is usually conducted before the child begins living in the home of the adoptive parents.</content><note type="source"><p>Source Note: The provisions of this §735.301 adopted to be effective March 1, 2016, 41 TexReg 1489; transferred effective May 1, 2018, as published in the Texas Register April 13, 2018, 43 TexReg 2289.</p></note></section><section identifier="/us/state/tx/tac/t40/p19/c735/scC/s735.303"><num value="735.303">§735.303</num><heading>What requirements are there for obtaining information about the child in the pre-placement portion of an adoption evaluation?</heading><content>(a) If the child is at least four years old, you must interview the child in a developmentally appropriate manner.(b) If the child is younger than four years old, you must observe the child.(c) You must include a summary of all assessments and available information about the child, including the child's:(1) Health, Social, Educational, and Genetic History Report (HSEGH), if completed. Family Code §162.005 requires the HSEGH to be prepared by the person or entity placing the child for adoption, but does not require a HSEGH if the petitioner for adoption is the child's grandparent, stepparent, aunt, or uncle by birth, marriage or prior adoption;(2) History of physical, sexual, or emotional abuse, including substance abuse history;(3) Current physical, mental, and emotional status, including any special needs;(4) History of any previous placements, including the date and reason for placement;(5) Understanding of adoptive placement; and(6) Legal status.</content><note type="source"><p>Source Note: The provisions of this §735.303 adopted to be effective March 1, 2016, 41 TexReg 1489; transferred effective May 1, 2018, as published in the Texas Register April 13, 2018, 43 TexReg 2289.</p></note></section><section identifier="/us/state/tx/tac/t40/p19/c735/scC/s735.305"><num value="735.305">§735.305</num><heading>What information about the adoptive parents must be included in the pre-placement portion of an adoption evaluation?</heading><content>(a) You must discuss, obtain, assess, and document the following information about the adoptive parents and their home:Attached Graphic(b) The discussion and assessment of the information about adoptive parents and their home in subsection (a) of this section should be framed in relation to the specific physical, mental, and emotional state of the child, including any special needs of the child.</content><note type="source"><p>Source Note: The provisions of this §735.305 adopted to be effective March 1, 2016, 41 TexReg 1489; transferred effective May 1, 2018, as published in the Texas Register April 13, 2018, 43 TexReg 2289.</p></note></section><section identifier="/us/state/tx/tac/t40/p19/c735/scC/s735.307"><num value="735.307">§735.307</num><heading>Whom must I interview during the pre-placement portion of an adoption evaluation?</heading><content>Interviews during the pre-placement portion of an adoption evaluation must include at least:(1) One individual interview with each adoptive parent;(2) One individual interview with each child four years or older who is living in the home either full- or part-time;(3) One individual interview with any other person who is living in the home either full- or part-time;(4) One joint interview with the adoptive parents;(5) One family group interview with family members who are living in the home;(6) One interview, by telephone, in person or by letter, with every:(A) Minor child of each adoptive parent that is 12 years old or older and is not living in the home; and(B) Adult child of each adoptive parent that is not living in the home;(7) One interview, by telephone, in person, or by letter with a family member not living in the home and not already interviewed; and(8) Two interviews, by telephone, in person, or by letter with neighbors, school personnel if the adoptive parents have school age children, clergy, or any other member of the adoptive parents' community who are unrelated to the adoptive parents and can provide a description of the adoptive parents' suitability to provide care for children.</content><note type="source"><p>Source Note: The provisions of this §735.307 adopted to be effective March 1, 2016, 41 TexReg 1489; transferred effective May 1, 2018, as published in the Texas Register April 13, 2018, 43 TexReg 2289.</p></note></section><section identifier="/us/state/tx/tac/t40/p19/c735/scC/s735.309"><num value="735.309">§735.309</num><heading>What must I document regarding interviews for the pre-placement portion of an adoption evaluation?</heading><content>(a) You must document all interviews and attempts to complete interviews. The documentation must include:(1) The date and method used to contact each required person;(2) The date of each interview;(3) Who was present at each interview and their relationship to the adoptive parents; and(4) A summary of each interview.(b) If you were unable to interview a minor child 12 years old or older or an adult child who is not living in the home, your documentation must include a description of your diligent efforts to contact and interview that child. Your description must include each phone number, address, email address, or other methods used for contacting the child; the times and dates you attempted to contact the child; any response you got from the child; and your reason(s) for concluding that you were unable to interview the child.</content><note type="source"><p>Source Note: The provisions of this §735.309 adopted to be effective March 1, 2016, 41 TexReg 1489; transferred effective May 1, 2018, as published in the Texas Register April 13, 2018, 43 TexReg 2289.</p></note></section><section identifier="/us/state/tx/tac/t40/p19/c735/scC/s735.311"><num value="735.311">§735.311</num><heading>What are the requirements for visiting the adoptive parents' home during the pre-placement portion of an adoption evaluation?</heading><content>(a) You must visit the home at least once.(b) All members of the household must be present for the visit.(c) You must document in the record the date of the visit, persons present, their relationship to the prospective adoptive family, and observations regarding health and safety issues in the home.</content><note type="source"><p>Source Note: The provisions of this §735.311 adopted to be effective March 1, 2016, 41 TexReg 1489; transferred effective May 1, 2018, as published in the Texas Register April 13, 2018, 43 TexReg 2289.</p></note></section><section identifier="/us/state/tx/tac/t40/p19/c735/scC/s735.313"><num value="735.313">§735.313</num><heading>What information regarding the adoptive parents' home and grounds must be assessed?</heading><content>(a) You must obtain a sketch of the floor plan of the home showing dimensions and purposes of all rooms in the home.(b) You must obtain a sketch or photo of the outside areas showing areas of the grounds to be used by the child.(c) You must determine, through your visit to the home and a review of the sketches and/or photos, whether there:(1) Are any potential safety or health issues. The home must be clean, safe, and free of obvious fire and other hazards. You must document whether the home is equipped with smoke detectors; and(2) Is sufficient space to accommodate the members of the household and the child.</content><note type="source"><p>Source Note: The provisions of this §735.313 adopted to be effective March 1, 2016, 41 TexReg 1489; transferred effective May 1, 2018, as published in the Texas Register April 13, 2018, 43 TexReg 2289.</p></note></section><section identifier="/us/state/tx/tac/t40/p19/c735/scC/s735.315"><num value="735.315">§735.315</num><heading>What are the additional requirements for the pre-placement portion of an adoption evaluation if the adoptive parents previously adopted a child through a child-placing agency or were previously foster parents for a child-placing agency?</heading><content>(a) You must request and assess the following background information from any child-placing agency that previously conducted a foster home screening, pre-adoptive home screening, or post placement adoptive report:(1) The screening, report, and related documentation;(2) The most current fire and health inspections; and(3) For previous foster homes:(A) Documentation of supervisory visits and evaluations for the past year;(B) Any record of deficiencies and their resolutions for the past year;(C) The transfer/closing summary;(D) Copies of any current or previous annual development plans for the past two years, if applicable; and(E) Copies of any current or previous corrective action plans for the past two years, if applicable.(b) You must address why a home was previously closed or any identified risk indicators, as applicable, with the adoptive parents before recommending approval of the adoptive home if the background information indicates that:(1) The adoptive home, prior to consummation, or the foster home was previously closed by a child-placing agency; or(2) There was one or more potential risk indicators that the child-placing agency did not adequately address with the foster or adoptive parents.(c) You must use the information to assess the family's ability to work with the child's specific behaviors and background.(d) If you are unable to obtain any of the information in subsection (a) of this section, you must document your diligent efforts to obtain this information, including:(1) Whether the adoptive parents were willing to sign a release for the information; and if the adoptive parents would not sign a release, an explanation of why the adoptive parents would not sign a release; and(2) How you tried to contact the child-placing agency (CPA); the name of each person at the CPA you attempted to contact in order to obtain the information; each phone number, address, e-mail address, or other method used for contacting the CPA or a person at the CPA; the times and dates you attempted to contact the CPA; any response you got from the CPA; and your reason(s) for concluding you would not be able to obtain this information from the CPA.</content><note type="source"><p>Source Note: The provisions of this §735.315 adopted to be effective March 1, 2016, 41 TexReg 1489; transferred effective May 1, 2018, as published in the Texas Register April 13, 2018, 43 TexReg 2289.</p></note></section><section identifier="/us/state/tx/tac/t40/p19/c735/scC/s735.317"><num value="735.317">§735.317</num><heading>What requirements are there about obtaining information about birth parents for the pre-placement portion of an adoption evaluation?</heading><content>(a) You must obtain the following information about the birth parents, unless their parental rights have been terminated:(1) The degree and type of involvement they desire with the adoptive family; and(2) Their expectations for adoptive placement, if they chose the placement with the adoptive parents.(b) Document as appropriate:(1) That the birth's parents parental rights have been terminated; or(2) A description of your diligent efforts to contact and interview the birth parents. Your description must include each phone number, address, email address, or other methods used for contacting the birth parents; the times and dates you attempted to contact the birth parents; any response you got from the parents; and your reason(s) for concluding that you were unable to interview either or both of the birth parents.</content><note type="source"><p>Source Note: The provisions of this §735.317 adopted to be effective March 1, 2016, 41 TexReg 1489; transferred effective May 1, 2018, as published in the Texas Register April 13, 2018, 43 TexReg 2289.</p></note></section><section identifier="/us/state/tx/tac/t40/p19/c735/scC/s735.319"><num value="735.319">§735.319</num><heading>What step does the department recommend if a child does not begin living with the adoptive parents within six months after the pre-placement portion of an adoption evaluation has been completed?</heading><content>For a child that does not begin living with the adoptive parents within six months after the completion of the pre-placement portion of an adoption evaluation, the department recommends that you update the pre-placement portion of an adoption evaluation within the 30-day period before the child begins living in the home. But the court responsible for finalizing the adoption must make the final decision on whether the update is necessary.</content><note type="source"><p>Source Note: The provisions of this §735.319 adopted to be effective March 1, 2016, 41 TexReg 1489; transferred effective May 1, 2018, as published in the Texas Register April 13, 2018, 43 TexReg 2289.</p></note></section><section identifier="/us/state/tx/tac/t40/p19/c735/scC/s735.321"><num value="735.321">§735.321</num><heading>Must I complete the pre-placement portion of an adoption evaluation update if the adoptive parents plan to adopt another child?</heading><content>Yes. If the adoptive parents plan to adopt another child, either in addition to or instead of the child for whom the pre-placement portion of an adoption evaluation was completed, you must complete a written update to the pre-placement portion of an adoption evaluation.</content><note type="source"><p>Source Note: The provisions of this §735.321 adopted to be effective March 1, 2016, 41 TexReg 1489; transferred effective May 1, 2018, as published in the Texas Register April 13, 2018, 43 TexReg 2289.</p></note></section><section identifier="/us/state/tx/tac/t40/p19/c735/scC/s735.323"><num value="735.323">§735.323</num><heading>What information must an update of the pre-placement portion of an adoption evaluation include?</heading><content>It must include:(1) Completing information about the new child as required by §735.303 of this title (relating to What requirements are there for obtaining information about the child in the pre-placement portion of an adoption evaluation?);(2) A review and any necessary updates relating to the requirements in §735.305 of this title (relating to What information about the adoptive parents must be included in the pre-placement portion of an adoption evaluation?); and(3) Documentation of at least one additional visit to the adoptive parents' home, including who was present during the visit. This visit should be within the 30-day period before the child begins living in the home.</content><note type="source"><p>Source Note: The provisions of this §735.323 adopted to be effective March 1, 2016, 41 TexReg 1489; transferred effective May 1, 2018, as published in the Texas Register April 13, 2018, 43 TexReg 2289; amended to be effective May 16, 2019, 44 TexReg 2363.</p></note></section><section identifier="/us/state/tx/tac/t40/p19/c735/scC/s735.325"><num value="735.325">§735.325</num><heading>What information must the pre-placement portion of an adoption evaluation report include?</heading><content>(a) The report must contain:(1) Documentation of the requirements in Subchapters B, C, and E of this Chapter, including documentation of:(A) Information that was obtained through the review of documents, reports, and inspections; and(B) Interviews with the adoptive parents and their family, collateral contacts, and the child;(2) Documentation of the criminal history and central registry background check results and an assessment of the results, including whether the results should bar placement of the child with the adoptive parents, or the subsequent adoption of the child by the adoptive parents;(3) Assessments of the:(A) Adoptive parents and their family's interaction with each other; and(B) Relationship between the child and each adoptive parent, if a relationship currently exists;(4) An assessment of the child's present and prospective physical, intellectual, social, and psychological functioning;(5) An assessment of the basic care and safety issues, including the safety of the physical environment of the adoptive home;(6) An assessment of the adoptive parents' individual strengths and weaknesses;(7) Conclusions and recommendations to the court as to whether the:(A) Adoptive parents' home environment will meet the child's needs once the child begins living in the adoptive parents' home; and(B) Adoptive parents appear to have the ability to accept the child, assume parenting responsibilities, and adopt the child in the next six months to a year;(8) For each adoption evaluator that conducted any part of the pre-placement portion of an adoption evaluation, including interviewing participants; making home visits; making assessments, conclusions, or recommendations; or writing the report:(A) Their names, license numbers, if applicable, and role in conducting the pre-placement portion of an adoption evaluation; and(B) A statement that each adoption evaluator:(i) Has read and meets the qualification requirements of Texas Family Code §107.154; or(ii) Was appointed by the court under Texas Family Code §107.155; and(9) Telephone numbers for entities where it is appropriate for the adoptive parents to file complaints about how the pre-placement portion of an adoption evaluation was conducted, including phone numbers for:(A) The court that ordered the adoption evaluation; and(B) The board or agency that licenses the adoption evaluator who is primarily responsible for the pre-placement portion of an adoption evaluation, if applicable.(b) The adoption evaluator primarily responsible for the pre-placement portion of an adoption evaluation must sign the report.</content><note type="source"><p>Source Note: The provisions of this §735.325 adopted to be effective March 1, 2016, 41 TexReg 1489; transferred effective May 1, 2018, as published in the Texas Register April 13, 2018, 43 TexReg 2289; amended to be effective May 16, 2019, 44 TexReg 2363.</p></note></section><section identifier="/us/state/tx/tac/t40/p19/c735/scC/s735.327"><num value="735.327">§735.327</num><heading>Can the pre-placement and post-placement portions of an adoption evaluation be combined?</heading><content>In a suit filed after the date the child began living in the adoptive parents' home, the pre-placement and post-placement portions of an adoption evaluation and reports may be combined and a single report completed. But the adoption evaluation and the combined report must:(1) Be completed after the child begins living in the home; and(2) Meet all of the minimum requirements of this subchapter for both the pre-placement and post-placement portions of an adoption evaluation and reports.</content><note type="source"><p>Source Note: The provisions of this §735.327 adopted to be effective March 1, 2016, 41 TexReg 1489; transferred effective May 1, 2018, as published in the Texas Register April 13, 2018, 43 TexReg 2289.</p></note></section></subchapter><subchapter identifier="/us/state/tx/tac/t40/p19/c735/scD"><num value="D">SUBCHAPTER D</num><heading>MINIMUM REQUIREMENTS FOR THE POST-PLACEMENT PORTION OF AN ADOPTION EVALUATION AND REPORT</heading><section identifier="/us/state/tx/tac/t40/p19/c735/scD/s735.401"><num value="735.401">§735.401</num><heading>When must I conduct the post-placement portion of an adoption evaluation and report?</heading><content>You must conduct the interviews for the post-placement portion of an adoption evaluation after the child has resided in the adoptive parents' home for at least five months, unless otherwise directed by the court. However, you may start the post-placement portion of an adoption evaluation and report, such as the gathering of written information, after the child begins living in the adoptive parents' home.</content><note type="source"><p>Source Note: The provisions of this §735.401 adopted to be effective March 1, 2016, 41 TexReg 1489; transferred effective May 1, 2018, as published in the Texas Register April 13, 2018, 43 TexReg 2289.</p></note></section><section identifier="/us/state/tx/tac/t40/p19/c735/scD/s735.403"><num value="735.403">§735.403</num><heading>Whom must I interview during the post-placement portion of an adoption evaluation?</heading><content>Interviews during the post-placement portion of an adoption evaluation must include at least one:(1) Individual interview with each adoptive parent;(2) Individual interview with each child four years or older living full- or part-time in the home, including the child placed for adoption;(3) Individual interview with any other person living full- or part-time in the home;(4) Joint interview with the adoptive parents; and(5) Family group interview with family members living in the home.</content><note type="source"><p>Source Note: The provisions of this §735.403 adopted to be effective March 1, 2016, 41 TexReg 1489; transferred effective May 1, 2018, as published in the Texas Register April 13, 2018, 43 TexReg 2289.</p></note></section><section identifier="/us/state/tx/tac/t40/p19/c735/scD/s735.405"><num value="735.405">§735.405</num><heading>What issues must an interview for the post-placement portion of an adoption evaluation address?</heading><content>Each interview must focus on the adjustment of the family and the child living together in the adoptive parents' home. You must also address the:(1) Requirements in §735.305 of this title (relating to What information about the adoptive parents must be included in the pre-placement portion of an adoption evaluation?) that have not been adequately addressed; and(2) Assessments that are mandated in §735.411 of this title (relating to What information must be included in the post-placement portion of an adoption evaluation report?).</content><note type="source"><p>Source Note: The provisions of this §735.405 adopted to be effective March 1, 2016, 41 TexReg 1489; transferred effective May 1, 2018, as published in the Texas Register April 13, 2018, 43 TexReg 2289; amended to be effective May 16, 2019, 44 TexReg 2363.</p></note></section><section identifier="/us/state/tx/tac/t40/p19/c735/scD/s735.407"><num value="735.407">§735.407</num><heading>What must I document regarding interviews that I conduct for the post-placement portion of an adoption evaluation?</heading><content>You must document all interviews and attempts to complete interviews. The documentation must include:(1) The date and method used to contact each required person;(2) The date of each interview;(3) Who was present at each interview and their relationship to the adoptive parents; and(4) A summary of each interview.</content><note type="source"><p>Source Note: The provisions of this §735.407 adopted to be effective March 1, 2016, 41 TexReg 1489; transferred effective May 1, 2018, as published in the Texas Register April 13, 2018, 43 TexReg 2289.</p></note></section><section identifier="/us/state/tx/tac/t40/p19/c735/scD/s735.409"><num value="735.409">§735.409</num><heading>What are the requirements for visiting the adoptive parents' home during the post-placement portion of an adoption evaluation?</heading><content>(a) You must visit the home at least once.(b) All members of the household, including the child, must be present for at least one home visit.(c) You must document in the record the date of the visit, persons present, their relationship to the adoptive parents, and observations regarding health and safety issues in the home.</content><note type="source"><p>Source Note: The provisions of this §735.409 adopted to be effective March 1, 2016, 41 TexReg 1489; transferred effective May 1, 2018, as published in the Texas Register April 13, 2018, 43 TexReg 2289.</p></note></section><section identifier="/us/state/tx/tac/t40/p19/c735/scD/s735.411"><num value="735.411">§735.411</num><heading>What information must be included in the post-placement portion of an adoption evaluation report?</heading><content>(a) The report must contain:(1) Any previously incomplete or supplemental information regarding the adoptive parents and the child that was required to be obtained for the pre-placement portion of an adoption evaluation, including any updates relating to:(A) A newly completed Health, Social, Educational, and Genetic History Report (HSEGH), or supplemental information;(B) Any updates to the child's current physical, mental, and emotional status, including any special needs;(C) An update regarding the child's legal status; and(D) Any new information obtained regarding the adoptive parents in relation to §735.305 of this title (relating to What information about the adoptive parents must be included in the pre-placement portion of an adoption evaluation?);(2) Documentation of the requirements in Subchapters B, D, and E of this Chapter, including documentation of:(A) Information that was obtained through the review of documents, reports, and inspections; and(B) Interviews with the adoptive parents, their family, and the child;(3) A summary of the adjustment of the adoptive parents, other family members, others persons living in the adoptive home, and the child during the last five to six months the child was living with the adoptive parents;(4) An updated assessment of the child's present and prospective physical, intellectual, social, and psychological functioning, including an assessment of how the adoptive parents responded to any special needs the child had;(5) An updated assessment of basic care and safety issues, including the physical safety of the environment of the adoptive home and how the child has responded to living in the adoptive home;(6) An updated assessment of the adoptive parents' individual strengths and weaknesses;(7) Conclusions and recommendations to the court as to whether the adoptive parents have accepted the child and have the ability to parent and adopt the child;(8) For each adoption evaluator that conducted any part of the post-placement portion of an adoption evaluation, including interviewing participants; making home visits; making assessments, conclusions, or recommendations; or writing the report:(A) Their names, license numbers, if applicable, and role in conducting the post-placement portion of an adoption evaluation; and(B) A statement that each adoption evaluator:(i) Has read and meets the qualification requirements of Texas Family Code §107.154; or(ii) Was appointed by the court under Texas Family Code §107.155; and(9) Telephone numbers for entities where it is appropriate for the adoptive parents to file complaints about how the post-placement portion of an adoption evaluation was conducted, including phone numbers for:(A) The court that ordered the adoption evaluation; and(B) The board or agency that licenses the adoption evaluator who is primarily responsible for the post-placement portion of an adoption evaluation, if applicable.(b) The adoption evaluator primarily responsible for the post-placement portion of an adoption evaluation must sign the report.</content><note type="source"><p>Source Note: The provisions of this §735.411 adopted to be effective March 1, 2016, 41 TexReg 1489; transferred effective May 1, 2018, as published in the Texas Register April 13, 2018, 43 TexReg 2289; amended to be effective May 16, 2019, 44 TexReg 2363.</p></note></section></subchapter><subchapter identifier="/us/state/tx/tac/t40/p19/c735/scE"><num value="E">SUBCHAPTER E</num><heading>BACKGROUND CHECK INFORMATION</heading><section identifier="/us/state/tx/tac/t40/p19/c735/scE/s735.501"><num value="735.501">§735.501</num><heading>How do I obtain the results of a fingerprint-based criminal history background check and a central registry background check for the pre-placement portion of an adoption evaluation?</heading><content>(a) To obtain the results of a fingerprint-based criminal history background check or a central registry background check for the pre-placement portion of an adoption evaluation, the adoptive parents, the adoptive parents' attorney, or you must request them.(b) A fingerprint-based criminal history background check must include a criminal history check from the Texas Department of Public Safety (DPS) and the Federal Bureau of Investigation (FBI). This check must be requested from DPS.(c) A central registry background check must be requested from the department by completing the appropriate Centralized Background Check Unit (CBCU) form that is available on the department's website.</content><note type="source"><p>Source Note: The provisions of this §735.501 adopted to be effective March 1, 2016, 41 TexReg 1489; transferred effective May 1, 2018, as published in the Texas Register April 13, 2018, 43 TexReg 2289.</p></note></section><section identifier="/us/state/tx/tac/t40/p19/c735/scE/s735.503"><num value="735.503">§735.503</num><heading>How do I request an investigative record regarding abuse or neglect for the pre-placement portion of an adoption evaluation?</heading><content>You may request, as needed, a complete, unredacted copy of any investigative record regarding abuse or neglect that relates to any person residing in the adoptive parents' home by completing the appropriate Records Management Group (RMG) form that is available on the department's public website. If you obtain these investigative records from the department, Texas Family Code §107.163 states:(1) Records obtained by you from the department are not subject to the Public Information Act or to disclosure in response to a subpoena or a discovery request.(2) You may disclose information obtained from the department only to the extent you determine the information is relevant to the adoption evaluation.(3) You commit a Class A misdemeanor if you recklessly disclose confidential information received from the department.</content><note type="source"><p>Source Note: The provisions of this §735.503 adopted to be effective March 1, 2016, 41 TexReg 1489; transferred effective May 1, 2018, as published in the Texas Register April 13, 2018, 43 TexReg 2289.</p></note></section></subchapter><subchapter identifier="/us/state/tx/tac/t40/p19/c735/scF"><num value="F">SUBCHAPTER F</num><heading>COPIES OF ADOPTION EVALUATION REPORTS AND COMPLAINTS</heading><section identifier="/us/state/tx/tac/t40/p19/c735/scF/s735.601"><num value="735.601">§735.601</num><heading>Are the adoptive parents entitled to a copy of the adoption evaluation report?</heading><content>A copy of the pre-placement and post-placement portions of the adoption evaluation reports must be made available to the adoptive parents before the court issues a final order regarding the adoption.</content><note type="source"><p>Source Note: The provisions of this §735.601 adopted to be effective March 1, 2016, 41 TexReg 1489; transferred effective May 1, 2018, as published in the Texas Register April 13, 2018, 43 TexReg 2289.</p></note></section><section identifier="/us/state/tx/tac/t40/p19/c735/scF/s735.603"><num value="735.603">§735.603</num><heading>Whom must the adoptive parents contact with a complaint about how an adoption evaluation was conducted?</heading><content>The adoptive parents or, if applicable, the adoptive parents' attorney, may contact the court that ordered the adoption evaluation. The adoptive parents or their attorney may also contact the board or agency that licenses the person who primarily conducted the adoption evaluation, if applicable. The pre-placement and post-placement portions of the adoption evaluation reports are required to have telephone numbers for entities where it is appropriate to file a complaint.</content><note type="source"><p>Source Note: The provisions of this §735.603 adopted to be effective March 1, 2016, 41 TexReg 1489; transferred effective May 1, 2018, as published in the Texas Register April 13, 2018, 43 TexReg 2289.</p></note></section></subchapter></chapter></part><part identifier="/us/state/tx/tac/t40/p20"><num value="20">PART 20</num><heading>TEXAS WORKFORCE COMMISSION</heading><chapter identifier="/us/state/tx/tac/t40/p20/c800"><num value="800">CHAPTER 800</num><heading>GENERAL ADMINISTRATION</heading><subchapter identifier="/us/state/tx/tac/t40/p20/c800/scA"><num value="A">SUBCHAPTER A</num><heading>GENERAL PROVISIONS</heading><section identifier="/us/state/tx/tac/t40/p20/c800/scA/s800.1"><num value="800.1">§800.1</num><heading>Short Title and Purpose</heading><content>These rules may be cited as the General Provisions Rules. The purpose of this subchapter is to set forth the general provisions applicable to the Commission.</content><note type="source"><p>Source Note: The provisions of this §800.1 adopted to be effective December 20, 1998, 23 TexReg 12691.</p></note></section><section identifier="/us/state/tx/tac/t40/p20/c800/scA/s800.2"><num value="800.2">§800.2</num><heading>Definitions</heading><content>The following words and terms, when used in this part, relating to the Texas Workforce Commission, shall have the following meanings, unless the context clearly indicates otherwise.(1) Adult Education and Literacy (AEL)--Academic instruction and education services below the postsecondary level that increase an individual's ability to:(A) read, write, and speak in English and perform mathematics or other activities necessary for the attainment of a secondary school diploma or its recognized equivalent;(B) participate in job training and retraining programs or transition to postsecondary education and training; and(C) obtain and retain employment.(2) Agency--The unit of state government established under Texas Labor Code Chapter 301 that is presided over by the Commission and administered by the executive director to operate the integrated workforce development system and administer the unemployment compensation insurance program in this state as established under the Texas Unemployment Compensation Act, Texas Labor Code, Title 4, Subtitle A, as amended. The definition of "Agency" shall apply to all uses of the term in rules contained in this part, unless otherwise defined, relating to the Texas Workforce Commission.(3) Allocation--The amount approved by the Commission for expenditures to a local workforce development area during a specified program year, according to specific state and federal requirements.(4) Board--A Local Workforce Development Board created pursuant to Texas Government Code §2308.253 and certified by the governor pursuant to Texas Government Code §2308.261. This includes such a Board when functioning as the Local Workforce Investment Board as described in the Workforce Innovation and Opportunity Act (WIOA) §107 (29 USC §3122), including those functions required of a youth standing committee, as provided for under WIOA §107(i). The definition of Board shall apply to all uses of the term in the rules contained in this part, or unless otherwise defined, relating to the Texas Workforce Commission. Boards are subrecipients as defined in OMB Circular A-133.(5) Child Care--Child care services funded through the Commission, which may include services funded under the Child Care and Development Fund, WIOA, and other funds available to the Commission or a Board to provide quality child care to assist families seeking to become independent from, or who are at risk of becoming dependent on, public assistance while parents are either working or participating in educational or training activities in accordance with state and federal statutes and regulations.(6) Choices--The employment and training activities created under §31.0126 of the Texas Human Resources Code and funded under Temporary Assistance for Needy Families (TANF) (42 USC 601 et.seq.) to assist individuals who are receiving temporary cash assistance, transitioning off, or at risk of becoming dependent on temporary cash assistance or other public assistance in obtaining and retaining employment.(7) Commission--The body of governance of the Texas Workforce Commission composed of three members appointed by the governor as established under Texas Labor Code §301.002 that includes one representative of labor, one representative of employers, and one representative of the public. The definition of Commission shall apply to all uses of the term in rules contained in this part, unless otherwise defined, relating to the Texas Workforce Commission.(8) Formal Measures--Workforce development services performance measures adopted by the governor and developed and recommended through the Texas Workforce Investment Council (TWIC).(9) Employment Service--A program to match qualified job seekers with employers through a statewide network of one-stop career centers. (Wagner-Peyser Act of 1933 (Title 29 USC, Chapter 4B) as amended by WIOA (PL 113-128)).(10) Executive Director--The individual appointed by the Commission to administer the daily operations of the Agency, which may include an individual delegated by the Executive Director to perform a specific function on behalf of the Executive Director.(11) Historically Underutilized Business (HUB)--A business entity as defined in 34 TAC §20.282 that is certified by the State of Texas, has not exceeded the standards for size established by 34 TAC §20.294, and has established Texas as its principal place of business.(12) Local Workforce Development Area (workforce area)--Workforce areas designated by the governor pursuant to Texas Government Code §2308.252 and functioning as a Local Workforce Investment Area, as provided for under WIOA §106 and §189(i)(1) (29 USC §3121 and §3249).(13) One-Stop Service Delivery Network--A one-stop--based network under which entities responsible for administering separate workforce investment, educational, and other human resources programs and funding streams collaborate to create a seamless network of service delivery that shall enhance the availability of services through the use of all available access and coordination methods, including telephonic and electronic methods--also known as Texas Workforce Solutions.(14) Performance Measure--An expected performance outcome or result.(15) Performance Target--A contracted numerical value setting the acceptable and expected performance outcome or result to be achieved for a performance measure, including Core Outcome Formal Measures. Achievement between 95 and 105 percent of the established target is considered meeting the target.(16) Program Year--The twelve-month period applicable to the following as specified:(A) Child Care: October 1 - September 30;(B) Choices: October 1 - September 30;(C) Employment Service: October 1 - September 30;(D) Supplemental Nutrition Assistance Program Employment and Training: October 1 - September 30;(E) Workforce Innovation and Opportunity Act (WIOA) Vocational Rehabilitation: October 1 - September 30;(F) Trade Act services: October 1 - September 30;(G) WIOA Adult, Dislocated Worker, and Youth formula funds: July 1 - June 30;(H) WIOA Alternative Funding for Statewide Activities: October 1 - September 30;(I) WIOA Alternative Funding for One-Stop Enhancements: October 1 - September 30; and(J) WIOA, Adult Education and Literacy: July 1 - June 30.(17) Supplemental Nutrition Assistance Program Employment and Training (SNAP E&T)--A program to assist SNAP recipients to become self-supporting through participation in activities that include employment, job readiness, education, and training, activities authorized and engaged in as specified by federal statutes and regulations (7 USC §2011), and Chapter 813 of this title relating to Supplemental Nutrition Assistance Program Employment and Training.(18) TANF--Temporary Assistance for Needy Families, which may include temporary cash assistance and other temporary assistance for eligible individuals, as defined in the Personal Responsibility and Work Opportunity Reconciliation Act of 1996, as amended (7 USC §2011 et seq.) and the TANF statutes and regulations (42 USC §601 et seq.), 45 Code of Federal Regulations (CFR) Parts 260 - 265). TANF may also include the TANF State Program (TANF SP), relating to two-parent families, which is codified in Texas Human Resources Code, Chapter 34.(19) Trade Act Services--Programs authorized by the Trade Act of 1974, as amended (and 20 CFR Part 617) providing services to dislocated workers eligible for Trade benefits through Workforce Solutions Offices.(20) TWIC--Texas Workforce Investment Council, appointed by the governor pursuant to Texas Government Code §2308.052 and functioning as the State Workforce Investment Board, as provided for under WIOA §101(e) (29 USC §3111(e). In addition, pursuant to WIOA §193(a)(5) (29 USC §3253(a)(5)), TWIC maintains the duties, responsibilities, powers, and limitations as provided in Texas Government Code §§2308.101 - 2308.105.(21) WIOA--Workforce Innovation and Opportunity Act--(PL 113 - 128, 29 USC §3101 et seq.). References to WIOA include references to WIOA formula-allocated funds unless specifically stated otherwise.(22) WIOA Formula-Allocated Funds--Funds allocated by formula to workforce areas for each of the following separate categories of services: WIOA adult, dislocated worker, and youth (excluding the secretary's and governor's reserve funds and rapid response funds).(23) Workforce Solutions Offices Partner--An entity that carries out a workforce investment, educational, or other human resources program or activity, and that participates in the operation of the One-Stop Service Delivery Network in a workforce area consistent with the terms of a memorandum of understanding entered into between the entity and the Board.</content><note type="source"><p>Source Note: The provisions of this §800.2 adopted to be effective February 19, 2001, 26 TexReg 1566; amended to be effective September 3, 2001, 26 TexReg 6719; amended to be effective June 30, 2002, 27 TexReg 5527; amended to be effective December 22, 2003, 28 TexReg 11357; amended to be effective August 23, 2004, 29 TexReg 8148; amended to be effective September 14, 2009, 34 TexReg 6341; amended to be effective February 7, 2011, 36 TexReg 592; amended to be effective February 24, 2014, 39 TexReg 1195; amended to be effective December 16, 2018, 43 TexReg 8148; amended to be effective February 25, 2019, 44 TexReg 871.</p></note></section><section identifier="/us/state/tx/tac/t40/p20/c800/scA/s800.3"><num value="800.3">§800.3</num><heading>Historically Underutilized Businesses</heading><content>In accordance with Texas Government Code §2161.003, the Agency adopts by reference the rules of the Texas Comptroller of Public Accounts, found at Title 34 TAC, §§20.281 - 298, concerning the Historically Underutilized Business (HUB) program. These rules were promulgated by the Texas Comptroller of Public Accounts, as required under Texas Government Code §2161.002.</content><note type="source"><p>Source Note: The provisions of this §800.3 adopted to be effective December 20, 1998, 23 TexReg 12691; amended to be effective February 12, 2007, 32 TexReg 552; amended to be effective February 7, 2011, 36 TexReg 592; amended to be effective February 25, 2019, 44 TexReg 871; amended to be effective October 26, 2020, 45 TexReg 7608.</p></note></section><section identifier="/us/state/tx/tac/t40/p20/c800/scA/s800.4"><num value="800.4">§800.4</num><heading>Gifts</heading><content>The Commission shall adhere to the Texas Ethics Commission's rules relating to the acceptance of gifts or other benefits from persons appearing before or regulated by the Commission pertaining to the Commission officers and employees and as adopted by the Texas Ethics Commission at 1 TAC Part II.</content><note type="source"><p>Source Note: The provisions of this §800.4 adopted to be effective December 20, 1998, 23 TexReg 12691.</p></note></section><section identifier="/us/state/tx/tac/t40/p20/c800/scA/s800.5"><num value="800.5">§800.5</num><heading>Tuition Assistance Program</heading><content>(a) Scope and Purpose. The Commission provides training opportunities to enhance job skills and to retain a well-qualified, trained, professional workforce dedicated to the Commission's mission. The Tuition Assistance Program (TAP) training includes instruction, teaching, or other education received by a state employee that is not normally received by other state employees and that is designed to enhance the employee's ability to perform his or her job. This section establishes eligibility and related requirements for employee participation in the Commission's TAP.(b) Eligibility. Eligibility requirements for tuition assistance include, but are not limited to:(1) continuous and full-time employment for one year at the time of application;(2) a recommendation from the employee's supervisor;(3) identification of the relationship of the training to the employee's position or a prospective role within the Agency;(4) any other factor deemed relevant by the executive director ; and(5) coursework or training to be obtained at an accredited institution of higher education, as required by statute.(c) Restitution from Employees for Training Costs. The employee training is conditional upon all of the following:(1) The employee shall attend and successfully complete the training or education program, including passing tests or other types of performance measures where required.(2) At the authorization of the Agency's executive director, the employee shall complete and file with the Commission prior to the commencement of the training, on forms prescribed by the Commission, an employee training agreement that sets forth the terms and conditions of the training assistance, including a provision for working for the Agency for a prescribed period of time or paying back the amount of the assistance.(3) An employee participating in the TAP must agree in writing, prior to beginning the coursework or an exam, to a service commitment to the Agency. An employee who receives reimbursement is obligated to fulfill a six-month service commitment with the Agency.(4) Employees who do not comply with the length of service requirement must reimburse the Agency for both the cost of the training activities (prorated to credit any full calendar month of employment following completion of the course) and any reasonable expenses the Agency incurs in obtaining restitution, including reasonable attorney's fees.(5) Employees who are unable to comply with the length of service requirement due to extraordinary circumstances beyond their control may request that the executive director waive the reimbursement of the cost of training activities.(6) Employees approved for the TAP may flex their work schedule with the approval of their supervisor if there is no negative impact on customers or work production. Employees cannot use work hours for attending classes, studying, taking exams, or other activities associated with the coursework or exams. When such activities fall within an employee's normal work schedule, the employee must use leave hours to compensate for time away from the job.(d) Any information relating to application for and receipt of reimbursement for training and education for state administrators and employees shall be reported to the Commission on a quarterly basis.</content><note type="source"><p>Source Note: The provisions of this §800.5 adopted to be effective December 13, 1999, 24 TexReg 11126; amended to be effective February 12, 2007, 32 TexReg 552; amended to be effective March 14, 2016, 41 TexReg 1973.</p></note></section><section identifier="/us/state/tx/tac/t40/p20/c800/scA/s800.6"><num value="800.6">§800.6</num><heading>Charges for Copies of Public Records</heading><content>(a) General Procedure. Except as otherwise specified in this chapter, for public information requests under Texas Government Code, Chapter 552, the Commission hereby adopts by reference the definitions, methods, procedures, and charges for copies of public records required under the Office of the Attorney General rules (1 TAC, Part 3, Chapter 70), as may be amended. (b) Written requests may be submitted: (1) in person or by mail addressed to: Officer for Public Information, Texas Workforce Commission, 101 East 15th Street, Austin, Texas 78778-0001; or (2) by e-mail or facsimile to designated e-mail addresses and facsimile numbers on the Agency's Web page. (c) Standard Fees. The Commission may establish a standard fee for the handling of common categories of requests that the Commission frequently receives when the costs of responding to such requests are substantially similar in most cases. (d) Adjustments for Actual Cost. In the event that the actual costs of responding to a given request are significantly lower or higher than the standard fee charged for that type of request, actual costs will be charged in lieu of the standard fee. (e) Unemployment Insurance-Related Requests. (1) Unemployment insurance (UI)-related records are exempt from Texas Government Code, Chapter 552. (2) No charge will be assessed to an individual or an employing unit for copies of records pertaining to that individual or employing unit when the provision of records is deemed by the Commission to be reasonably required for the proper administration of the Texas Unemployment Compensation Act (Texas Labor Code, Title 4, Subtitle A). (3) UI-related requests for purposes other than the administration of the Texas Unemployment Compensation Act shall be assessed a fee. (f) Requests by Other Governmental Entities. Notwithstanding any other provision in this section, provision of information to other governmental agencies for purposes other than the administration of the Texas Unemployment Compensation Act will be made only on a cost reimbursable basis, with all costs being calculated in accordance with OMB Circular A-87, consistent with generally accepted accounting principles or applicable regulations including, but not limited to, 20 C.F.R. §603.1 et seq. Charges to other governmental entities can be waived only when the request is of an isolated or infrequent nature and when the costs of responding to a particular request are negligible. (g) Certified Records. In addition to the fees the Commission may charge for providing copies of records, the Commission shall charge a fee of $15.00 for preparation of a certification instrument, which may be attached to one or more pages of records covered by the certification instrument.</content><note type="source"><p>Source Note: The provisions of this §800.6 adopted to be effective August 20, 2000, 25 TexReg 7779; amended to be effective February 12, 2007, 32 TexReg 552; amended to be effective February 7, 2011, 36 TexReg 592.</p></note></section><section identifier="/us/state/tx/tac/t40/p20/c800/scA/s800.7"><num value="800.7">§800.7</num><heading>Agency Vehicles</heading><content>(a) Purpose and Intent. The purpose of this rule is to implement the provisions of Texas Government Code §2171.1045. The intent of the Commission is to ensure that the use and management of vehicles by the Agency is consistent with the State Vehicle Fleet Management Plan (Plan) as adopted by the Texas Comptroller of Public Accounts, Office of Vehicle Fleet Management. The Plan is available on the Comptroller's Web site, or can be requested from the Agency.(b) The Commission adopts by reference and shall implement the provisions contained in the Plan as referenced in subsection (a) of this section including the following general provisions on use of vehicles by the Agency.(1) Vehicles, with the exception of vehicles assigned to field employees, are assigned to the Agency motor pool and may be available for checkout.(2) The Agency may assign a vehicle to an individual administrative or executive employee on a regular or everyday basis only if there is a documented finding that the assignment is critical to the needs and mission of the Agency.(3) The Agency will work with the Texas Comptroller of Public Accounts to identify, apply for, and if possible, use any waiver or exemption provisions where the recognition of conditions specific to the Agency would further the general purpose of fiscal efficiency and good business practices.</content><note type="source"><p>Source Note: The provisions of this §800.7 adopted to be effective February 26, 2001, 26 TexReg 1752; amended to be effective February 12, 2007, 32 TexReg 552; amended to be effective February 7, 2011, 36 TexReg 592.</p></note></section><section identifier="/us/state/tx/tac/t40/p20/c800/scA/s800.8"><num value="800.8">§800.8</num><heading>Suspension of Rules</heading><content>The Commission may suspend the operation of one or more of the provisions in this title, on either a statewide or other basis, if the Commission finds a public emergency or imperative public necessity exists, and the Commission finds that the suspension will best serve the public health, safety, or welfare.</content><note type="source"><p>Source Note: The provisions of this §800.8 adopted to be effective January 23, 2006, 31 TexReg 405.</p></note></section><section identifier="/us/state/tx/tac/t40/p20/c800/scA/s800.9"><num value="800.9">§800.9</num><heading>Donations</heading><content>(a) Purpose. The purpose of this section is to establish rules for the acceptance of donations made to the Commission.(b) General Authority to Accept Donations. Texas Labor Code §301.021 allows the Commission to accept a donation of services or money that it determines furthers the lawful objectives of the Commission.(c) General Prohibitions Regarding Donations.(1) Texas Labor Code §301.021(b) and (c) identify entities that the Commission is not authorized to accept donations from; and(2) Texas Government Code §575.005 states that the Commission is not authorized to accept donations from entities in contested cases.(d) Analysis of Offered Donations. The Agency, prior to the Commission's consideration of a donation, shall perform an inquiry and analysis to determine if there is a detrimental effect to accepting the donation. Texas Government Code §551.073 allows the Commission to hold a closed meeting regarding an identified detrimental effect as determined by the Agency.(e) Acceptance of Donations. Acceptance of donations by the Commission on behalf of the Agency shall:(1) be in an open meeting by a majority of the voting members of the Commission;(2) be reported in the public records of the Commission and include the name of the donor, and the purpose and a description of the donation;(3) be in the form of monetary or in-kind assets; and(4) have a minimum value of $500.00.(f) Donation Agreement. Following acceptance of the donation by the Commission, the donor and the Agency shall execute a donation agreement, which includes:(1) description of the donation, including a statement of the value;(2) statement by the donor attesting to the donor's ownership rights in the donation and the donor's authority to make the donation;(3) signature of the donor or designee;(4) signature of the Agency designee;(5) restrictions on the use of the donations, if any, agreed to by the donor and Commission;(6) mailing address of the donor and principal place of business if the donor is a business entity;(7) statement identifying any official relationship between the donor and the Agency; and(8) statement advising the donor to seek legal and/or tax advice from its own legal counsel.(g) Administration of Donations. The Agency shall:(1) deposit monetary donations to the credit of the Texas Workforce Commission account of the state General Revenue Fund;(2) disburse monetary donations at the Agency's direction. All monetary gifts are automatically appropriated to the Commission in accordance with the General Appropriations Act; and(3) use the donations for the purpose specified by the donor, to the extent possible, and in accordance with any local, state, and federal laws. In no event shall donations be used for purposes not within the Agency's statutory authority.(h) Texas Government Code, Chapter 572, governs the standards of conduct between the Agency and donors.(i) Public Records.(1) Documents and other information pertaining to the official business of the Commission are public information and are subject to the Texas Public Information Act (Texas Government Code, Chapter 552).(2) If the Commission determines an exception to the Texas Public Information Act is applicable, it may seek a determination from the Attorney General of Texas regarding the confidentiality of information relating to a donation before releasing the requested information.(j) Conflict of Laws. These rules shall not conflict with a requirement of a statute regulating the conduct of an officer or employee of a state agency or the procedures of the Agency. In the event that there appears to be a conflict between these rules and a state statute, the state statute controls.</content><note type="source"><p>Source Note: The provisions of this §800.9 adopted to be effective December 28, 2009, 34 TexReg 9484.</p></note></section><section identifier="/us/state/tx/tac/t40/p20/c800/scA/s800.10"><num value="800.10">§800.10</num><heading>Purchasing of Certain Products</heading><content>Iron and Steel Products. The Agency complies with the requirements of Texas Government Code, Chapter 2252, Subchapter G, relating to the purchase of iron or steel products made in the United States for certain governmental entity projects.</content><note type="source"><p>Source Note: The provisions of this §800.10 adopted to be effective October 26, 2020, 45 TexReg 7608.</p></note></section></subchapter><subchapter identifier="/us/state/tx/tac/t40/p20/c800/scB"><num value="B">SUBCHAPTER B</num><heading>ALLOCATIONS</heading><section identifier="/us/state/tx/tac/t40/p20/c800/scB/s800.51"><num value="800.51">§800.51</num><heading>Scope and Purpose</heading><content>(a) The purpose of this rule is to interpret Texas Labor Code, §302.062, relating to the allocation of available funds for workforce training and services from the Texas Workforce Commission to workforce areas, as well as Texas Labor Code, §301.001 and §302.002, which establish the Texas Workforce Commission to operate an integrated workforce development system in this state, in particular through the consolidation of job training, employment, and employment-related programs, and direct the executive director to consolidate the administrative and programmatic functions under the authority of the Commission, to achieve efficient and effective delivery of services. It is the intent of the Commission to allocate funds to workforce areas for the purpose of meeting or exceeding statewide performance measures as set forth in the state General Appropriations Act and consistent with the authority reflected in Texas Labor Code §302.004, satisfying federal program requirements, and operating an integrated workforce development system. This subchapter sets forth the funding to be allocated to workforce areas and the methods and procedures to be followed, in order to accomplish the consolidation and integration of workforce development programs. The Commission is committed, whenever possible, to allocating an amount of funds available for workforce training and services greater than the minimum level set by law.(b) Funds allocated or reallocated under this subchapter will only be made available under the terms of a properly executed contract between the Commission and a certified Board with an approved plan or an AEL grant recipient with an approved contract with the Commission.(c) The allocation formulas described in this subchapter will only be applicable for allocations and executed contracts for a complete program year. For contract periods of less than a complete program year, the allocated amounts will be negotiated between the Commission and the Board or an AEL grant recipient, based upon the remaining months of the program year.(d) Subsections (a) - (c) of this section shall apply to all sections contained in this subchapter unless a section specifically states otherwise.(e) Funds available to the Commission that are not otherwise allocated or reallocated under this subchapter, may be used by the Commission for purposes authorized by state and federal laws and regulations.(f) Notwithstanding any other provision of the rules contained in this part, the level of funding allocated to a workforce area may be determined, modified, or reallocated by the Commission for one or more of the following reasons:(1) to ensure full utilization of the funding;(2) to ensure compliance with state and federal requirements applicable to the state;(3) to meet the state's federal participation rates;(4) to respond to caseload changes; or(5) to respond to unforeseen demographic or economic changes.</content><note type="source"><p>Source Note: The provisions of this §800.51 adopted to be effective September 3, 2001, 26 TexReg 6719; amended to be effective August 23, 2004, 29 TexReg 8148; amended to be effective February 24, 2014, 39 TexReg 1195.</p></note></section><section identifier="/us/state/tx/tac/t40/p20/c800/scB/s800.52"><num value="800.52">§800.52</num><heading>Definitions</heading><content>The following words and terms, when used in this subchapter, shall have the following meanings, unless the context clearly indicates otherwise:(1) Accrued Expenditures--Charges incurred during a given period for goods and tangible property received and services performed that cause decreases in net financial resources.(2) All-Family Participation Rate--The percentage of all families receiving Temporary Assistance for Needy Families (TANF) benefits that a state must engage in an approved work activity for a specified number of hours per week as provided by Title IV, Part A, §407 of the Social Security Act (42 USC §607).(3) Contract Closeout Settlement Package--Financial, performance, and other reports required as a condition of the contract, which must be submitted when one of the following conditions is met:(A) the contract has expired;(B) all available funds for the contract period have been paid out;(C) all accrued expenditures chargeable to the specific contract have been incurred; or(D) the period of available funds has expired or been terminated.(4) Contract Period--The length of time in which a contract for allocated funds between the Commission and a Local Workforce Development Board (Board) or an Adult Education and Literacy (AEL) grant recipient is in effect and during which funds may be expended for a specified purpose, unless prohibited by a federal grantor agency. A contract period longer than a program year shall be specified under the terms of a properly executed contract.(5) Deobligation--An action adopted by the Commission to decrease an amount for a specific program and contract period in a contract with a Board or an AEL grant recipient for allocated funds on the basis of provisions as set forth in §§800.73, 800.74, 800.78, and 800.79 of this subchapter.(6) Equal Base Amount--An amount equivalent to .10 percent (one-tenth of one percent) of a total allocation, which shall be provided equally to each local workforce development area (workforce area).(7) Hold Harmless/Stop Gain--A procedure that ensures that a relative proportion of an allocation to a workforce area is not below 90 percent of the corresponding proportion for the past two years, or that the current year proportion is not above 125 percent of the prior two-year relative proportion.(8) Monthly expenditure report--A written or electronically submitted report by a Board or an AEL grant recipient that contains information regarding services for each category of funding allocated by the Commission, and in which the Board or an AEL grant recipient lists expenditures and obligations by category of funding.(9) Obligation--A debt established by a legally binding contract, letter of agreement, sub-grant award, or purchase order, which has been executed prior to the end of a contract period, for goods and services provided by the end of the contract period, and which will be liquidated 60 calendar days after the end of the contract period, unless such definition is superseded by federal requirements.(10) Relative proportion of the program year--The corresponding part of the program year that is used to compare expenditures. That is, if 50 percent of the program year has transpired, then the relative proportion of the program year is 50 percent.(11) WIOA Formula Allocated Funds--Funds allocated by formula to workforce areas for each of the following separate categories of Workforce Innovation and Opportunity Act (WIOA) Title I funding: Adult, Dislocated Worker, and Youth.</content><note type="source"><p>Source Note: The provisions of this §800.52 adopted to be effective September 3, 2001, 26 TexReg 6719; amended to be effective August 23, 2004, 29 TexReg 8148; amended to be effective July 12, 2006, 31 TexReg 5465; amended to be effective February 24, 2014, 39 TexReg 1195; amended to be effective November 24, 2022, 47 TexReg 7747; amended to be effective October 7, 2024, 49 TexReg 8174.</p></note></section><section identifier="/us/state/tx/tac/t40/p20/c800/scB/s800.53"><num value="800.53">§800.53</num><heading>Choices</heading><content>(a) Funds available to the Commission to provide Choices services will be allocated to the workforce areas using a need-based formula, in order to meet state and federal requirements, as set forth in subsection (b) of this section.(b) At least 80 percent of the Choices funds will be allocated to the workforce areas on the basis of:(1) the relative proportion of the total unduplicated number of all families with Choices work requirements residing within the workforce area during the most recent calendar year to the statewide total unduplicated number of all families with Choices work requirements;(2) an equal base amount; and(3) the application of a hold harmless/stop gain procedure.(c) No more than 10 percent of Choices funds expended as part of a workforce area's allocation shall be used for administrative costs, as defined by the appropriate federal regulations and Commission policy.</content><note type="source"><p>Source Note: The provisions of this §800.53 adopted to be effective August 27, 1997, 22 TexReg 8057; amended to be effective January 3, 2001, 25 TexReg 13005; amended to be effective August 23, 2004, 29 TexReg 8148; amended to be effective February 7, 2011, 36 TexReg 592.</p></note></section><section identifier="/us/state/tx/tac/t40/p20/c800/scB/s800.54"><num value="800.54">§800.54</num><heading>Supplemental Nutrition Assistance Program Employment and Training</heading><content>(a) Funds available to the Commission to provide SNAP E&T services under 7 U.S.C.A. §2015(d) will be allocated to the workforce areas using a need-based formula, as set forth in subsection (b) of this section.(b) At least 80% of the SNAP E&T funds will be allocated to the workforce areas on the basis of:(1) of the relative proportion of the total unduplicated number of mandatory work registrants receiving SNAP benefits residing within the workforce area during the most recent calendar year to the statewide total unduplicated number of mandatory work registrants receiving SNAP benefits;(2) an equal base amount; and(3) the application of a hold harmless/stop gain procedure.(c) No more than 10% of the funds expended as part of a workforce area's allocation shall be used for administrative costs, as defined by federal regulations and Commission policy.</content><note type="source"><p>Source Note: The provisions of this §800.54 adopted to be effective August 27, 1997, 22 TexReg 8057; amended to be effective January 3, 2001, 25 TexReg 13005; amended to be effective August 23, 2004, 29 TexReg 8148; amended to be effective September 14, 2009, 34 TexReg 6341.</p></note></section><section identifier="/us/state/tx/tac/t40/p20/c800/scB/s800.57"><num value="800.57">§800.57</num><heading>Employment Services</heading><content>(a) Employment Services funds available to the Commission to provide Employment Services under §7(a) of the Wagner-Peyser Act (29 U.S.C.A. Chapter 4B) will be utilized by the Commission as set forth in subsection (b) of this section.(b) At least 80% of the Employment Services funds under §7(a) of the Wagner-Peyser Act (29 U.S.C.A. Chapter 4B, including §49(c)) will be utilized by the Commission within the workforce areas according to the established federal formula, as follows:(1) Two-thirds will be based on the relative proportion of the total civilian labor force residing within the workforce area to the statewide total civilian labor force.;(2) One-third will be based on the relative proportion of the total number of unemployed individuals residing within the workforce area to the statewide total number of unemployed individuals; and(3) the application of a hold harmless/stop gain procedure.(c) No more than 10% of the funds expended as part of a workforce area's allocation shall be used for administrative costs, as defined by appropriate federal regulations and Commission policy.</content><note type="source"><p>Source Note: The provisions of this §800.57 adopted to be effective August 27, 1997, 22 TexReg 8057; amended to be effective January 3, 2001, 25 TexReg 13005; amended to be effective August 23, 2004, 29 TexReg 8148.</p></note></section><section identifier="/us/state/tx/tac/t40/p20/c800/scB/s800.58"><num value="800.58">§800.58</num><heading>Child Care</heading><content>(a) Funds available to the Commission for child care services will be allocated to the workforce areas using need-based formulas, as set forth in this section.(b) Child Care and Development Fund (CCDF) Mandatory Funds authorized under the Social Security Act §418(a)(1), as amended, together with state general revenue Maintenance of Effort (MOE) Funds, Social Services Block Grant funds, TANF funds, and other funds designated by the Commission for child care (excluding any amounts withheld for state-level responsibilities) will be allocated on the following basis:(1) 50 percent will be based on the relative proportion of the total number of children under the age of five years old residing within the workforce area to the statewide total number of children under the age of five years old, and(2) 50 percent will be based on the relative proportion of the total number of people residing within the workforce area whose income does not exceed 100 percent of the poverty level to the statewide total number of people whose income does not exceed 100 percent of the poverty level.(c) CCDF Matching Funds authorized under the Social Security Act §418(a)(2), as amended, together with state general revenue matching funds and estimated appropriated receipts of donated funds, will be allocated according to the relative proportion of children under the age of 13 years old residing within the workforce area to the statewide total number of children under the age of 13 years old.(d) CCDF Discretionary Funds authorized under the Child Care and Development Block Grant Act of 1990 §658B, as amended, will be allocated according to the relative proportion of the total number of children under the age of 13 years old in families whose income does not exceed 150 percent of the poverty level residing within the workforce area to the statewide total number of children under the age of 13 years old in families whose income does not exceed 150 percent of the poverty level.(e) The following provisions apply to the funds allocated in subsections (b) - (d) of this section:(1) Sufficient funds must be used for direct child care services to ensure Commission-approved performance targets are met.(2) Children eligible for Transitional and Choices child care shall be served on a priority basis to enable parents to participate in work, education, or training activities.(3) No more than 5 percent of the total expenditure of funds may be used for administrative expenditures as defined in federal regulations contained in 45 C.F.R. §98.52, as may be amended unless the total expenditures for a workforce area are less than $5,000,000. If a workforce area has total expenditures of less than $5,000,000, then no more than $250,000 may be used for administrative expenditures.(4) Each Board shall set the amount of the total expenditure of funds to be used for quality activities consistent with federal and state statutes and regulations.(5) The Board shall comply with any additional requirements adopted by the Commission or contained in the Board contract.(6) Allocations of child care funds will include applications of hold harmless/stop gain procedures.</content><note type="source"><p>Source Note: The provisions of this §800.58 adopted to be effective September 3, 2001, 26 TexReg 6719; amended to be effective August 23, 2004, 29 TexReg 8148; amended to be effective September 14, 2009, 34 TexReg 6341; amended to be effective February 7, 2011, 36 TexReg 592.</p></note></section><section identifier="/us/state/tx/tac/t40/p20/c800/scB/s800.63"><num value="800.63">§800.63</num><heading>Workforce Innovation and Opportunity Act (WIOA) Allocations</heading><content>(a) Definitions. The following words and terms when used in this section shall have the following meanings, unless the context clearly indicates otherwise.(1) Area of substantial unemployment--As defined in WIOA §132(b)(1)(B)(v)(III) (29 USC §3172(b)(1)(B)(v)(III)).(2) Disadvantaged adult--As defined in WIOA §132(b)(1)(B)(v)(IV - V) (29 USC §3172(b)(1)(B)(v)(IV-V)).(3) Disadvantaged youth--As defined in WIOA §127(b)(2)(C) (29 USC §31622(b)(2)(C)).(b) Scope and Authority. Funds available to the Commission under Title I of WIOA for youth activities, adult employment and training activities, and dislocated worker employment and training activities shall be allocated to workforce areas or reserved for statewide activities in accordance with:(1) the provisions of prior consistent state law as authorized by WIOA §193(a)(1)(A) (29 USC §3253(a)(1)(A)), including, but not limited to, Texas Labor Code §302.062, as amended, and Subchapter B of this title;(2) WIOA and related federal regulations as amended; and(3) the WIOA State Plan.(c) Reserves and Allocations for Youth and Adult Employment and Training Activities. The Commission shall reserve no more than 15 percent and shall allocate to workforce areas at least 85 percent of the youth activities and adult employment and training activities allotments from the US Department of Labor.(d) Reserves and Allocations for Dislocated Worker Employment and Training Activities. The Commission shall allocate the dislocated worker employment and training allotment in the following manner:(1) reserve no more than 15 percent for statewide workforce investment activities;(2) reserve no more than 25 percent for state-level rapid response and additional local assistance activities, and determine the proportion allocated to each activity; and(3) allocate at least 60 percent to workforce areas.(e) State-Adopted Elements, Formulas, and Weights. The Commission shall implement the following elements, formulas, and weights adopted for Texas in the WIOA State Plan in allocating WIOA funds to workforce areas.(1) WIOA adult employment and training activities funds not reserved by the Commission under §800.63(c) of this section shall be allocated to the workforce areas as provided in WIOA §133(b)(2) (29 USC §3173(b)(2)) based on the following:(A) 33-1/3 percent on the basis of the relative number of unemployed individuals in areas of substantial unemployment in each workforce area, compared to the total number of unemployed individuals in areas of substantial unemployment in the state;(B) 33-1/3 percent on the basis of the relative excess number of unemployed individuals in each workforce area, compared to the total excess number of unemployed individuals in the state; and(C) 33-1/3 percent on the basis of the relative number of disadvantaged adults in each workforce area, compared to the total number of disadvantaged adults in the state.(2) WIOA dislocated worker employment and training activities funds not reserved by the State of Texas under subsection (d) of this section shall be allocated to the workforce areas as provided in WIOA §133(b)(2) (29 USC §3173(b)(2)) based on the following factors:(A) insured unemployment data;(B) unemployment concentrations;(C) plant closings and mass layoff data;(D) declining industries data;(E) farmer-rancher economic hardship data; and(F) long-term unemployment data.(3) WIOA youth activities funds not reserved by the Commission under §800.63(c) of this section shall be allocated to the workforce areas as provided in WIOA §128(b)(2) (29 USC §3163(b)(2)) based on the following:(A) 33-1/3 percent on the basis of the relative number of unemployed individuals in areas of substantial unemployment in each workforce area, compared to the total number of unemployed individuals in all areas of substantial unemployment in the state;(B) 33-1/3 percent on the basis of the relative excess number of unemployed individuals in each workforce area, compared to the total excess number of unemployed individuals in the state; and(C) 33-1/3 percent on the basis of the relative number of disadvantaged youth in each workforce area, compared to the total number of disadvantaged youth in the state.(f) In making allocations of WIOA formula funds, the Commission will apply minimum funding procedures, as set forth in federal regulations (20 CFR 683.125).(g) No more than 10 percent of the funds expended as part of a workforce area's allocation shall be used for administrative costs, as defined by federal regulations and Commission policy.(h) Reserved Funds. The Commission shall make available the funds reserved under subsection (c) and (d)(1) of this section to provide required and, if funds are available, allowable statewide activities as outlined in WIOA §129(b) and §134(a) (29 USC §3164 and §3174(a)).(i) The Commission may allocate such proportion of available WIOA Statewide Funding as it determines appropriate.</content><note type="source"><p>Source Note: The provisions of this §800.63 adopted to be effective September 12, 2000, 25 TexReg 9014; amended to be effective August 23, 2004, 29 TexReg 8148; amended to be effective October 7, 2024, 49 TexReg 8174.</p></note></section><section identifier="/us/state/tx/tac/t40/p20/c800/scB/s800.66"><num value="800.66">§800.66</num><heading>Trade Act Services</heading><content>(a) Funds available to the Commission to provide Trade Act services shall be provided to workforce areas as set forth in this section.(b) Amounts for training and services for trade-affected workers, consistent with statute and regulations, will be made available to workforce areas as follows. The Commission shall approve:(1) an initial Trade Adjustment Assistance (TAA) funding amount for each workforce area, on an annual basis; and(2) the factors to be considered for distribution of additional funds, which may include:(A) number of individuals in TAA-approved training;(B) number of Trade-certified layoffs in the workforce area;(C) number of employees from Trade-certified companies;(D) layoffs identified through the Worker Adjustment and Retraining Notification Act process in the workforce area;(E) demonstrated need;(F) the cost of training; and(G) other factors as determined by the Commission.(c) Evaluations will be made periodically as to the sufficiency and reasonableness of amounts made available to each workforce area, expenditures for training, and amounts reported for administration. The Agency shall make additional distributions, based on the evaluations and upon requests by Boards, using the factors approved by the Commission.(d) In the event that a determination is made that Trade Act funding available to the Commission may be insufficient to meet all qualified needs for the remainder of the year at any time during the program year, the Agency will:(1) rely on the evaluations referenced in subsection (c) of this section to estimate short-term needs;(2) make recommendations for deobligation and redistribution between workforce areas; and(3) make requests for additional TAA funding from the U.S. Department of Labor as appropriate.(e) No more than 15 percent of the funds expended for Trade Act training, services, and other allowable program activities shall be used for administrative costs, as defined by federal regulations. The Commission shall establish policy limitations for the expenditure of administrative funds at the state and Board levels.</content><note type="source"><p>Source Note: The provisions of this §800.66 adopted to be effective August 23, 2004, 29 TexReg 8148; amended to be effective February 7, 2011, 36 TexReg 592.</p></note></section><section identifier="/us/state/tx/tac/t40/p20/c800/scB/s800.68"><num value="800.68">§800.68</num><heading>Adult Education and Literacy</heading><content>(a) AEL funds available to the Commission to provide services under the federal Adult Education and Family Literacy Act (AEFLA), WIOA Title II, together with associated state general revenue matching funds and federal TANF funds--together with any state general revenue funds appropriated as TANF maintenance-of-effort--will be used by the Commission, as set forth in subsections (b) - (d) of this section. Prior to any grant recipient receiving notice of an award, the Commission shall review and approve the award of grant funds to be issued under this program. The Commission shall give priority in awarding funds to entities that consistently satisfy annual performance requirements comparable to subsection (e) of this section.(b) At least 82.5 percent of the federal funds constituting the total state award of AEFLA state grants--including amounts allotted to the eligible agency having a state plan, as provided by AEFLA §211(c)--will be allocated by the Commission to the workforce areas. From the amount allotted to the eligible agency having a state plan, as provided by AEFLA §211(c), the Commission will allocate amounts to the workforce areas according to the established federal formula, as follows:(1) 100 percent will be based on:(A) the relative proportion of individuals residing within each workforce area who are at least 18 years of age, do not have a secondary school diploma or its recognized equivalent, and are not enrolled in secondary school, during the most recent period for which statistics are available;(B) an equal base amount; and(C) the application of a hold-harmless/stop-gain procedure.(2) No more than 5 percent of the funds expended as part of this workforce area allocation shall be used for administrative costs, as defined by AEFLA, provided, however, that the Special Rule outlined in AEFLA §233(b) shall apply with effective justification, as appropriate.(3) No more than 10 percent of this allocation shall be available for expenditure within each workforce area on the basis of the achievement of performance benchmarks, as set forth in subsection (e) of this section.(c) At least 80 percent of the state general revenue matching funds associated with the allotment of federal funds to the eligible agency having a state plan, as provided by AEFLA §211(c), will be allocated by the Commission to the workforce areas according to the established federal formula, as follows:(1) 100 percent will be based on:(A) the relative proportion of individuals residing within each workforce area who are at least 18 years of age, do not have a secondary school diploma or its recognized equivalent, and are not enrolled in secondary school, during the most recent period for which statistics are available;(B) an equal base amount; and(C) the application of a hold-harmless/stop-gain procedure.(2) No more than 15 percent of the funds expended as part of this workforce area allocation shall be used for administrative costs, as defined by Commission policy.(3) No more than 10 percent of this allocation shall be available for expenditure within each workforce area on the basis of the achievement of performance benchmarks, as set forth in subsection (e) of this section.(d) At least 80 percent of federal TANF funds associated with the AEL program--together with any state general revenue funds appropriated as TANF maintenance-of-effort--will be allocated by the Commission to the workforce areas according to a need-based formula, as follows:(1) 100 percent will be based on:(A) the relative proportion of the unduplicated number of TANF adult recipients with educational attainment of less than a secondary diploma during the most recently completed calendar year;(B) an equal base amount; and(C) the application of a hold-harmless/stop-gain procedure.(2) No more than 15 percent of the funds expended as part of this workforce area allocation shall be used for administrative costs, as defined by federal regulations and Commission policy.(3) No more than 10 percent of this allocation shall be available for expenditure within each workforce area on the basis of the achievement of performance benchmarks, as set forth in subsection (e) of this section.(e) AEL performance accountability benchmarks shall be established to coincide with performance measures and reports, or other periods, as determined by the Commission. Levels of performance shall, at a minimum, be expressed in an objective, quantifiable, and measurable form, and show continuous improvement.(f) Performance accountability benchmarks shall:(1) include measures for high school equivalency program or ability-to-benefit program enrollment and achievement, as outlined in paragraph (2) of this subsection. A postsecondary ability-to-benefit program, as outlined in paragraphs (2) and (3) of this subsection, is a postsecondary education or training program that:(A) results in a recognized postsecondary credential; and(B) enrolls AEL eligible participants who:(i) do not have a high school diploma or recognized equivalency;(ii) qualify for federal student financial aid eligibility under the federal Ability-to-Benefit provisions enacted in §484(d) of the Higher Education Act of 1965; and(iii) demonstrate on an assessment instrument that the participant can pass college-level courses with some support;(2) include measures that require:(A) at least 25 percent of all participants served in the program year to be enrolled in a high school equivalency or postsecondary ability-to-benefit program; and(B) at least 70 percent of participants who were in a high school equivalency or postsecondary ability-to-benefit program during the program year and exited during the program year to achieve either a high school equivalency or a recognized postsecondary credential; and(3) be approved by the Commission each program year for milestones toward meeting high school equivalency program or postsecondary ability-to-benefit program enrollment and achievement as outlined in paragraph (2) of this subsection.</content><note type="source"><p>Source Note: The provisions of this §800.68 adopted to be effective February 24, 2014, 39 TexReg 1195; amended to be effective July 20, 2016, 41 TexReg 5230; amended to be effective December 21, 2020, 45 TexReg 9243; amended to be effective February 26, 2024, 49 TexReg 1101.</p></note></section><section identifier="/us/state/tx/tac/t40/p20/c800/scB/s800.69"><num value="800.69">§800.69</num><heading>Integrated English Literacy and Civics Education Program</heading><content>(a) At least 82.5 percent of the AEFLA §243 Integrated English Literacy and Civics Education federal award allocated to the state must be awarded to entities with demonstrated effectiveness as determined through a statewide competitive procurement, as follows:(1) 100 percent of the award will be based on the demonstrated need cited and supported with data by the eligible applicant as part of a statewide procurement;(2) No more than 5 percent of the funds expended as part of the total allocation shall be used for administrative costs, as defined by AEFLA, provided, however, that the Special Rule outlined in AEFLA §233(b) shall apply with effective justification, as appropriate;(3) No more than 10 percent of this allocation shall be available for expenditure on the basis of the achievement of performance benchmarks, as set forth in §800.68(e); and(4) The application of a hold-harmless/stop gain procedure.(b) The Commission shall give priority in awarding funds to entities that consistently satisfy annual performance requirements comparable to §800.68(f) of this subchapter.</content><note type="source"><p>Source Note: The provisions of this §800.69 adopted to be effective February 26, 2024, 49 TexReg 1101.</p></note></section><section identifier="/us/state/tx/tac/t40/p20/c800/scB/s800.71"><num value="800.71">§800.71</num><heading>General Deobligation and Reallocation Provisions</heading><content>(a) Purpose. The purpose of this rule is to promote effective service delivery, financial planning, and management to ensure full utilization of funding, and to reallocate funds to populations in need.(b) Scope. Sections 800.71 - 800.80 of this subchapter shall apply to funds provided to workforce areas under a contract between the Board or an AEL grant recipient and the Commission for the following categories of funding:(1) Adult Education and Literacy(2) Child Care(3) Choices(4) Employment Service(5) SNAP E&T(6) WIOA Formula Funds</content><note type="source"><p>Source Note: The provisions of this §800.71 adopted to be effective September 3, 2001, 26 TexReg 6719; amended to be effective August 23, 2004, 29 TexReg 8148; amended to be effective July 12, 2006, 31 TexReg 5465; amended to be effective September 14, 2009, 34 TexReg 6341; amended to be effective February 7, 2011, 36 TexReg 592; amended to be effective February 24, 2014, 39 TexReg 1195; amended to be effective November 24, 2022, 47 TexReg 7747; amended to be effective October 7, 2024, 49 TexReg 8174.</p></note></section><section identifier="/us/state/tx/tac/t40/p20/c800/scB/s800.72"><num value="800.72">§800.72</num><heading>Reporting Requirements</heading><content>(a) A Board or an AEL grant recipient shall submit a monthly financial report, including accrued expenditures and obligations, on or before the 20th calendar day of the following month that list information as required by the Commission for the reporting period.(b) The Commission may require that a Board or an AEL grant recipient amend expenditure reports as the result of Commission reviews, audits, or other evaluations.(c) A Board or an AEL grant recipient shall submit a contract closeout settlement package on or before 60 days following the end of the contract period.(d) The Commission may suspend payments, advances, or reimbursements to Boards or an AEL grant recipient in the cash draw system if required financial reports or contract closeout settlement packages are not submitted by the deadline.(e) The Agency's executive director may approve a Board's or an AEL grant recipient's request of extension for the submission of a required financial report or contract closeout settlement package, if such extension request is received on a timely basis with sufficient justification.</content><note type="source"><p>Source Note: The provisions of this §800.72 adopted to be effective September 3, 2001, 26 TexReg 6719; amended to be effective August 23, 2004, 29 TexReg 8148; amended to be effective February 24, 2014, 39 TexReg 1195.</p></note></section><section identifier="/us/state/tx/tac/t40/p20/c800/scB/s800.73"><num value="800.73">§800.73</num><heading>Child Care Match Requirements and Deobligation</heading><content>(a) A Board shall meet the following requirements for unmatched federal child care funds that are contingent upon a Board securing local funds.(1) By the end of the fourth month following the beginning of the program year, a Board shall secure donations, transfers, and certifications totaling at least 100 percent of the amount it needs to secure in order to access the unmatched federal child care funds available to the workforce area at the beginning of the program year.(2) Throughout the program year and by the end of the twelfth month, a Board shall ensure completion of all donations, transfers, and certifications consistent with the contribution schedules and payment plans specified in the local agreements.(3) The Commission may withhold the federal matching amounts associated with local match that are not completed after the end of the twelfth month, as set forth in paragraph (2) of this subsection.(b) The Commission may deobligate, at any time following the fourth month of the program year, all or part of the difference between a Board's actual level of secured and completed match and the level of performance that is required, as set forth in subsection (a) of this section.</content><note type="source"><p>Source Note: The provisions of this §800.73 adopted to be effective July 12, 2006, 31 TexReg 5465; amended to be effective February 7, 2011, 36 TexReg 592.</p></note></section><section identifier="/us/state/tx/tac/t40/p20/c800/scB/s800.74"><num value="800.74">§800.74</num><heading>Midyear Deobligation of Funds</heading><content>(a) The Commission may deobligate funds from a workforce area during the program year if a workforce area is not meeting the expenditure thresholds set forth in subsection (b) of this section.(1) Workforce areas that fail to meet the expenditure thresholds set forth in subsection (b) of this section at the end of months five, six, seven, or eight of the program year (that is, midyear) will be reviewed to determine the causes for the under expenditure of funds, except as set forth in subsection (d) of this section.(2) The Commission shall not deobligate more than the difference between a workforce area's actual expenditures and the amount corresponding to the relative proportion of the program year.(3) The Commission shall not deobligate funds from a workforce area that failed to meet the expenditure thresholds set forth in subsection (b) of this section, if within 60 days prior to the potential deobligation period the Commission executes a contract amendment for a supplemental allocation or reallocation of funds in the same program funding category.(b) The Commission may deobligate the following funds midyear, as set forth in subsection (a) of this section, if a workforce area fails to achieve the expenditure of an amount corresponding to 90 percent or more of the relative proportion of the program year:(1) Child care (with the exception of unmatched federal child care funds that are contingent upon a workforce area securing local funds, as set forth in §800.73 of this subchapter)(2) Choices(3) Employment Service(4) SNAP E&T(c) A workforce area subject to deobligation for failure to meet the requirements set forth in this section shall, upon request by the Commission, submit a written justification with a copy to the Board Chair. The written justification shall provide sufficient detail regarding the actions a workforce area will take to address its deficiencies, including:(1) expansion of services proportionate to the available resources;(2) projected service levels and related performance;(3) reporting outstanding obligations; and(4) any other factors a workforce area would like the Commission to consider.(d) To the extent this section is found not to comply with federal requirements, or should any related federal waivers expire, the Commission will be subject to federal requirements in effect, as applicable.</content><note type="source"><p>Source Note: The provisions of this §800.74 adopted to be effective September 14, 2009, 34 TexReg 6341; amended to be effective February 7, 2011, 36 TexReg 592; amended to be effective October 7, 2024, 49 TexReg 8174.</p></note></section><section identifier="/us/state/tx/tac/t40/p20/c800/scB/s800.75"><num value="800.75">§800.75</num><heading>Second-Year WIOA Deobligation of Funds</heading><content>(a) In each month of the second year in which the WIOA formula funds are available, the Commission may deobligate funds if a workforce area's unobligated balance of WIOA formula funds exceeds 20 percent of the allocation for each category of WIOA formula funds for the program year.(b) The Commission shall not deobligate more than the difference between a workforce area's actual expenditures and the amount of unobligated funds that exceed 20 percent of the allocation for each category of WIOA formula funds for the program year.(c) The Commission shall not deobligate funds from a workforce area that failed to meet the expenditure thresholds set forth in subsection (a) of this section if within 60 days prior to the potential deobligation period the Commission executes a contract amendment for a supplemental allocation or reallocation of funds in the same program funding category.</content><note type="source"><p>Source Note: The provisions of this §800.75 adopted to be effective September 14, 2009, 34 TexReg 6341; amended to be effective February 7, 2011, 36 TexReg 592; amended to be effective October 7, 2024, 49 TexReg 8174.</p></note></section><section identifier="/us/state/tx/tac/t40/p20/c800/scB/s800.76"><num value="800.76">§800.76</num><heading>Voluntary Deobligation of Funds</heading><content>To request a voluntary deobligation of funds allocated to the workforce area, a workforce area's executive director shall submit a written request to the Commission with a copy to the Board Chair.</content><note type="source"><p>Source Note: The provisions of this §800.76 adopted to be effective September 14, 2009, 34 TexReg 6341.</p></note></section><section identifier="/us/state/tx/tac/t40/p20/c800/scB/s800.77"><num value="800.77">§800.77</num><heading>Reallocation of Funds</heading><content>(a) Reallocation. A workforce area may be eligible for reallocation of the following funds allocated by the Commission:(1) Child care (including unmatched federal child care funds that are contingent upon a workforce area securing local funds)(2) Choices(3) Employment Service(4) SNAP E&T(5) WIOA Formula Funds(b) Eligibility.(1) For a workforce area to be eligible for a reallocation of child care funds (excluding unmatched federal funds that are contingent upon a workforce area securing local funds), and the funds set forth in subsection (a)(2) - (5) of this section, the Commission may consider whether a workforce area:(A) has met targeted expenditure levels as required by §800.74(a) of this subchapter, as applicable, for that period;(B) has not expended or obligated more than 100 percent of the workforce area's allocation for the category of funding;(C) has demonstrated that expenditures conform to cost category limits for funding;(D) has demonstrated the need for and ability to use additional funds;(E) has an established plan for working with at least one of the governor's industry clusters, as specified in the local Board plan;(F) is current on expenditure reporting;(G) is current with all single audit requirements; and(H) is not under sanction.(2) For a workforce area to be eligible for a reallocation of unmatched federal child care funds that are contingent upon a workforce area securing local funds, the Commission may consider:(A) whether a workforce area has met the level for securing and completing local match requirements set out in §800.73(a) of this subchapter; and(B) the applicable factors listed in paragraph (1) of this subsection, including factors in paragraph (1)(B) - (H) of this subsection.(c) The Commission may reallocate funds to an eligible workforce area based on the applicable method of allocation, as set forth in this subchapter, and may modify the amount to be reallocated by considering the following:(1) the amount specified in a workforce area's written request for additional funds;(2) the amount available for reallocation versus the total dollar amount of requests;(3) the demonstrated ability of a workforce area to effectively expend funds to address the need for services in the workforce area;(4) the extent to which the project supports activities related to the governor's industry clusters;(5) the workforce area's performance during the current and prior program year; and(6) related factors, as necessary, to ensure that funds are fully used.(d) To the extent this section is found not to comply with federal requirements, or should any related federal waivers expire, the Commission will be subject to federal requirements in effect, as applicable.</content><note type="source"><p>Source Note: The provisions of this §800.77 adopted to be effective September 14, 2009, 34 TexReg 6341; amended to be effective February 7, 2011, 36 TexReg 592; amended to be effective October 7, 2024, 49 TexReg 8174.</p></note></section><section identifier="/us/state/tx/tac/t40/p20/c800/scB/s800.78"><num value="800.78">§800.78</num><heading>Deobligation of AEL Funds</heading><content>(a) The Commission may deobligate funds from an AEL grant recipient during the program year if an AEL grant recipient is not meeting the expenditure thresholds set forth in subsection (b) of this section, provided, however, that the requirements of §800.80(a) of this subchapter are satisfied.(1) AEL grant recipients that fail to meet the expenditure thresholds set forth in subsection (b) of this section at the end of month four(October), or any month thereafter, will be reviewed to determine the causes for the under expenditure of funds, except as set forth in subsection (d) of this section.(2) The Commission shall not deobligate more than the difference between an AEL grant recipient's actual expenditures and the amount corresponding to the relative proportion of the program year.(3) The Commission shall not deobligate funds from an AEL grant recipient that failed to meet the expenditure thresholds set forth in subsection (b) of this section, if within 60 days prior to the potential deobligation period the Commission executes a contract amendment for a supplemental allocation or reallocation of funds in the same program funding category.(b) The Commission may deobligate funds from an AEL grant recipient midyear, as set forth in subsection (a) of this section, if an AEL grant recipient fails to achieve the expenditure of an amount corresponding to 90 percent or more of the relative proportion of the program year.(c) An AEL grant recipient subject to deobligation for failure to meet the requirements set forth in this section shall, upon request by the Commission, submit a written justification. For an AEL consortium, a copy must be provided to all AEL consortium members. The written justification shall provide sufficient detail regarding the actions an AEL grant recipient will take to address its deficiencies, including:(1) expansion of services proportionate to the available resources;(2) projected service levels and related performance;(3) reporting outstanding obligations; and(4) any other factors an AEL grant recipient would like the Commission to consider.(d) To the extent this section may be found not to comply with federal requirements, or should any related federal waivers expire, the Commission will be subject to federal requirements in effect, as applicable.</content><note type="source"><p>Source Note: The provisions of this §800.78 adopted to be effective February 24, 2014, 39 TexReg 1195; amended to be effective December 16, 2018, 43 TexReg 8148; amended to be effective November 24, 2022, 47 TexReg 7747.</p></note></section><section identifier="/us/state/tx/tac/t40/p20/c800/scB/s800.79"><num value="800.79">§800.79</num><heading>Voluntary Deobligation of AEL Funds</heading><content>To request a voluntary deobligation of funds allocated to the workforce area, an AEL grant recipient's chief executive officer shall submit a written request to the Commission. For an AEL consortium, a copy must be provided to all AEL consortium members. Any amounts voluntarily deobligated from an AEL grant recipient must be made available as a first priority to any other AEL grant recipient(s) providing AEL services within the same workforce area that meet the requirements of §800.80(a) of this subchapter, upon receipt and approval by the Commission of an acceptable plan.</content><note type="source"><p>Source Note: The provisions of this §800.79 adopted to be effective February 24, 2014, 39 TexReg 1195.</p></note></section><section identifier="/us/state/tx/tac/t40/p20/c800/scB/s800.80"><num value="800.80">§800.80</num><heading>Reallocation of AEL Funds</heading><content>(a) For an AEL grant recipient to be eligible to receive deobligated AEL funds, the Commission may consider whether the AEL grant recipient:(1) has met targeted expenditure levels as required by §800.78(a) and (b) of this subchapter, as applicable, for that period;(2) has not expended or obligated more than 100 percent of the workforce area's allocation for the category of funding;(3) has demonstrated that expenditures conform to cost category limits for funding;(4) has demonstrated the need for and ability to use additional funds;(5) is current on expenditure reporting;(6) is current with all single audit requirements;(7) is meeting performance for the program year; and(8) is not under sanction.(b) The Commission must approve any plan to reallocate funds deobligated or voluntarily deobligated from AEL grant recipients. The Commission may make such funds available as a first priority to any other AEL grant recipients providing AEL services within the same workforce area meeting the requirements of subsection (a) of this section, upon receipt and approval by the Commission of an acceptable plan. Following the determination that any such plan has not been determined to be acceptable, the Commission may consider AEL grant recipients outside the workforce area satisfying the requirements of subsection (a) of this section, upon receipt and approval by the Commission of an acceptable plan. In the event AEL grant recipients outside the workforce area are not able to meet the requirements of subsection (a) of this section, Agency staff will present an alternate plan for Commission consideration.</content><note type="source"><p>Source Note: The provisions of this §800.80 adopted to be effective February 24, 2014, 39 TexReg 1195; amended to be effective November 24, 2022, 47 TexReg 7747.</p></note></section></subchapter><subchapter identifier="/us/state/tx/tac/t40/p20/c800/scC"><num value="C">SUBCHAPTER C</num><heading>SAVINGS INCENTIVE PROGRAM FOR STATE AGENCIES</heading><section identifier="/us/state/tx/tac/t40/p20/c800/scC/s800.100"><num value="800.100">§800.100</num><heading>Definitions</heading><content>In addition to the definitions contained in §800.2 of this title, the following words and terms, when used in this subchapter, shall have the following meanings, unless the context clearly indicates otherwise:(1) General appropriations act--a legislative act appropriating money for the operation of state government.(2) General obligation bond--a bond issued on behalf of the State of Texas, the repayment of which is guaranteed by the full faith and credit of the State of Texas and which has been authorized by the Texas Constitution. For purposes of this subchapter, the term does not include an unemployment insurance trust fund bond.(3) General revenue-dedicated--a subset of general revenue that is dedicated as a result of legislative action and may be appropriated only for the purpose to which the revenue is statutorily dedicated.(4) Undedicated general revenue--general revenue that does not fall under the definition of "general revenue-dedicated" and can be transferred for another use through a special provision to the general appropriations act.(5) Upper management--includes commissioners, executive director, deputy executive director, division directors, and deputy division directors.</content><note type="source"><p>Source Note: The provisions of this §800.100 adopted to be effective February 25, 2019, 44 TexReg 871.</p></note></section><section identifier="/us/state/tx/tac/t40/p20/c800/scC/s800.101"><num value="800.101">§800.101</num><heading>Procedure</heading><content>(a) In any fiscal year, if the agency spends less of the undedicated general revenue derived from nonfederal sources than is appropriated to it by the general appropriations act, the agency shall notify the comptroller of the savings before October 30 following the end of the fiscal year in which the savings are realized.(b) Upon verification of savings by the comptroller, the agency may retain one-half of the verified amount of savings.(c) The verified amount of savings may be spent only on an activity or expense that does not:(1) create new or expanded services; or(2) require ongoing funding at a later date.(d) Of the verified savings retained by the agency, one-half:(1) shall be used to make additional principal payments for general obligation bonds issued by the agency or on behalf of the agency by the Texas Public Finance Authority; or(2) may be used to provide bonuses to a qualifying employee or employees of the agency, as set forth in Texas Government Code §2108.103(c)(2)(A) - (C), if there are no outstanding general obligation bonds issued by the agency or on behalf of the agency by the Texas Public Finance Authority.(e) In determining whether savings have been realized, the Agency's Finance department will consider the difference between lapsed funds and verifiable savings that are based on proactive efforts by an Agency employee or employees to reduce operational and other costs to the Agency.(f) If verified savings under this section are not needed for other Agency priorities, the savings may be awarded as bonuses as set out in Texas Government Code §2108.103(c)(2).(g) The Agency's Finance department will notify the Agency's executive director of the savings that may be distributed to provide bonuses.(h) The Agency's executive director may implement bonuses in accordance with the tiered bonus structure, as set forth in Texas Government Code §2108.103(d)(1) - (4). Before awarding the bonuses, the executive director will:(1) ensure that all financial obligations are met under Texas Government Code §2108.103(c)(2); and(2) verify that each employee who receives a bonus:(A) is a current full-time equivalent employee of the Commission;(B) worked for the Commission as a full-time equivalent employee for the entire fiscal year in which the savings were realized; and(C) is directly responsible for or worked in a department, office, or other division within the Commission that is responsible for the savings realized.(i) Employees of the Agency who serve in an upper management position are prohibited from receiving a bonus under this section.</content><note type="source"><p>Source Note: The provisions of this §800.101 adopted to be effective February 25, 2019, 44 TexReg 871.</p></note></section></subchapter><subchapter identifier="/us/state/tx/tac/t40/p20/c800/scD"><num value="D">SUBCHAPTER D</num><heading>EMPLOYEE BENEFITS</heading><section identifier="/us/state/tx/tac/t40/p20/c800/scD/s800.150"><num value="800.150">§800.150</num><heading>Sick Leave Pool</heading><content>(a) A sick leave pool is established to alleviate hardship caused to an employee and the employee's immediate family if a catastrophic injury or illness forces the employee to exhaust all eligible leave time earned by that employee and to lose compensation time from the state.(b) The Agency's Director of Human Resources is designated as the pool administrator.(c) The pool administrator will recommend a policy, operating procedures, and forms for the administration of this section for approval by the Agency's Executive Director.(d) Operation of the pool shall be consistent with Texas Government Code, Chapter 661.</content><note type="source"><p>Source Note: The provisions of this §800.150 adopted to be effective May 2, 2022, 47 TexReg 2565.</p></note></section><section identifier="/us/state/tx/tac/t40/p20/c800/scD/s800.151"><num value="800.151">§800.151</num><heading>Family Leave Pool</heading><content>(a) A family leave pool is established to provide state employees more flexibility. It is available to employees who have exhausted their eligible compensatory, discretionary, sick, and vacation leave because of:(1) the birth of a child;(2) the placement of a foster child or adoption of a child under 18 years of age;(3) the placement of any person 18 years of age or older requiring guardianship;(4) a serious illness including pandemic-related illness;(5) an extenuating circumstance created by an ongoing pandemic, including providing essential care to a family member; or(6) a previous donation to the pool.(b) The Agency's Director of Human Resources is designated as the pool administrator.(c) The pool administrator will recommend a policy, operating procedures, and forms for the administration of this section for approval by the Agency's Executive Director.(d) Operation of the pool shall be consistent with Texas Government Code, Chapter 661.</content><note type="source"><p>Source Note: The provisions of this §800.151 adopted to be effective May 2, 2022, 47 TexReg 2565.</p></note></section></subchapter><subchapter identifier="/us/state/tx/tac/t40/p20/c800/scF"><num value="F">SUBCHAPTER F</num><heading>INTERAGENCY MATTERS</heading><section identifier="/us/state/tx/tac/t40/p20/c800/scF/s800.201"><num value="800.201">§800.201</num><heading>Title and Purpose</heading><content>(a) These rules may be cited as Interagency Matters.(b) The purpose of these rules is to implement and interpret the provisions of the Texas Administrative Code, Chapter 40, Interagency Matters, and to provide notice to the public of the contents of the Memorandums of Understanding.</content><note type="source"><p>Source Note: The provisions of this §800.201 adopted to be effective March 19, 1998, 23 TexReg 2829.</p></note></section><section identifier="/us/state/tx/tac/t40/p20/c800/scF/s800.202"><num value="800.202">§800.202</num><heading>Memorandum of Understanding with Texas Commission for the Deaf and Hard of Hearing</heading><content>The Texas Workforce Commission hereby adopts by reference the terms of a memorandum of understanding entered into with the Texas Commission for the Deaf set out in §181.912(a) and (b) and §181.915 of this title (relating to the Texas Department of Correction and the Texas Workforce Commission). Copies of the memorandum of understanding are available at the Texas Workforce Commission, 101 East 15th Street, Room 614, Austin, Texas 78778.</content><note type="source"><p>Source Note: The provisions of this §800.202 adopted to be effective March 19, 1998, 23 TexReg 2829.</p></note></section><section identifier="/us/state/tx/tac/t40/p20/c800/scF/s800.203"><num value="800.203">§800.203</num><heading>Memorandum of Understanding with Texas Education Agency</heading><content>The Texas Workforce Commission hereby adopts by reference the terms of a memorandum of understanding on transition planning for students enrolled in special education. Said memorandum of understanding is set out at 19 TAC §89.1110. Copies are available at the Texas Workforce Commission, 101 East 15th, Room 614, Austin, Texas 78778.</content><note type="source"><p>Source Note: The provisions of this §800.203 adopted to be effective March 19, 1998, 23 TexReg 2829.</p></note></section><section identifier="/us/state/tx/tac/t40/p20/c800/scF/s800.204"><num value="800.204">§800.204</num><heading>Memorandum of Understanding with Texas Department of Economic Development</heading><content>The Texas Workforce Commission hereby adopts by reference the terms of a memorandum of understanding on program planning and budgeting relating to workforce development programs. Said memorandum of understanding is set out at 10 TAC §195.10. Copies are available at the Texas Workforce Commission, 101 East 15th, Room 614, Austin, Texas 78778.</content><note type="source"><p>Source Note: The provisions of this §800.204 adopted to be effective March 19, 1998, 23 TexReg 2829.</p></note></section><section identifier="/us/state/tx/tac/t40/p20/c800/scF/s800.205"><num value="800.205">§800.205</num><heading>Memoranda of Understanding with a Governmental Entity Pursuant to Texas Government Code §497.0596(a)(4)</heading><content>(a) The Texas Workforce Commission hereby adopts by reference the terms of any memorandum of understanding relating to identifying potentially affected employers under a proposed private sector prison industries program and providing such information to the appropriate governmental entity to meet its notification requirements. Information provided to a governmental entity shall comply with the requirements of Texas Labor Code §301.085 and 40 TAC, Chapter 815, Subchapter E, of this title.(b) Any memorandum of understanding under subsection (a) of this section shall stipulate that:(1) only publicly available data sources shall be used;(2) costs incurred for producing the data shall be reimbursed to the Agency; and(3) the information provided by the Agency is solely for the limited purpose of allowing the governmental entity to meet its notice requirements under Texas Government Code §497.0596 and is separate and apart from any certification described in Texas Government Code §497.059.(c) Copies of the memoranda of understanding are available at the Texas Workforce Commission, 101 East 15th, Room 614, Austin, Texas 78778.</content><note type="source"><p>Source Note: The provisions of this §800.205 adopted to be effective July 12, 2010, 35 TexReg 6093.</p></note></section><section identifier="/us/state/tx/tac/t40/p20/c800/scF/s800.206"><num value="800.206">§800.206</num><heading>Interagency Contract with the Texas Education Agency</heading><content>The Texas Workforce Commission adopts by reference the terms of an interagency contract entered into with the Texas Education Agency, as required by Texas Education Code, §48.302, relating to the transfer of funds to implement a high school equivalency subsidy program set out in Chapter 805, Subchapter E, §§805.71 - 805.73 of this title (relating to High School Equivalency Subsidy Program).</content><note type="source"><p>Source Note: The provisions of this §800.206 adopted to be effective December 21, 2020, 45 TexReg 9243.</p></note></section></subchapter><subchapter identifier="/us/state/tx/tac/t40/p20/c800/scG"><num value="G">SUBCHAPTER G</num><heading>PETITION FOR ADOPTION OF RULES</heading><section identifier="/us/state/tx/tac/t40/p20/c800/scG/s800.251"><num value="800.251">§800.251</num><heading>Title and Purpose</heading><content>(a) Title. These rules may be cited as the Petition for the Adoption of Rules.(b) Purpose. The purpose of these rules is to implement the provisions of Texas Government Code, §2001.21 regarding agency procedure for addressing petitions for the adoption of rules.</content><note type="source"><p>Source Note: The provisions of this §800.251 adopted to be effective April 19, 1998, 23 TexReg 3700.</p></note></section><section identifier="/us/state/tx/tac/t40/p20/c800/scG/s800.252"><num value="800.252">§800.252</num><heading>Definitions</heading><content>The following words and terms, when used in this subchapter, shall have the following meanings, unless the context clearly indicates otherwise:(1) Commission--The Texas Workforce Commission(2) Interested person--An interested person is defined as:(A) a resident of this state;(B) a business entity located in this state;(C) a governmental subdivision located in this state; or(D) a public or private organization located in this state that is not a state agency.</content><note type="source"><p>Source Note: The provisions of this §800.252 adopted to be effective April 19, 1998, 23 TexReg 3700; amended to be effective March 14, 2016, 41 TexReg 1974.</p></note></section><section identifier="/us/state/tx/tac/t40/p20/c800/scG/s800.253"><num value="800.253">§800.253</num><heading>Submission and Petition Requirements</heading><content>Any interested person may petition the Texas Workforce Commission (Commission) requesting the adoption of a rule. Petitioners should submit petitions in writing to the General Counsel of the Commission. The petition may be in any legible form but must contain at least the following information.(1) Petitioner's Name and Address. The petitioners' name, complete mailing address, and signature should appear in the request.(2) Explanation and Justification. A petitioner should include an explanation and justification of the proposed rule. The explanation should include a concise statement of the relevant background information necessary to understand the need for the rule, the existing problem that the proposed rule is to correct, and the foreseeable effects of the requested rule.(3) Text. A petitioner should include the text of the proposed rule reflecting added or deleted words. A reference to any existing rule including the title, chapter and section number, if applicable, should appear on the request.(4) Authority. A statement of the statutory or other authority for taking the requested action should also appear on the request.</content><note type="source"><p>Source Note: The provisions of this §800.253 adopted to be effective April 19, 1998, 23 TexReg 3700.</p></note></section><section identifier="/us/state/tx/tac/t40/p20/c800/scG/s800.254"><num value="800.254">§800.254</num><heading>Review of Petition</heading><content>Upon receipt of a substantially complete petition, the general counsel will forward a copy of the petition to the appropriate division director for a response.(1) Division Response. Within 20 days after receiving the petition from the general counsel, the division director shall respond in writing to the General Counsel recommending either denying the request or initiating the rulemaking process. The division director's response shall contain the reasons for the recommendation.(2) General Counsel Recommendation. Within 20 days after receiving the division director's response, the general counsel shall submit to the commissioners the petition, the division director's response and a written recommendation by the general counsel specifying the reasons for the recommendation.</content><note type="source"><p>Source Note: The provisions of this §800.254 adopted to be effective April 19, 1998, 23 TexReg 3700.</p></note></section><section identifier="/us/state/tx/tac/t40/p20/c800/scG/s800.255"><num value="800.255">§800.255</num><heading>Commission Decision and Action</heading><content>(a) The Commissioners shall issue the final decision regarding the petition within 60 days after receipt of the petition from the petitioner to either:(1) deny the petition in writing, stating the reasons for the denial; or(2) initiate rulemaking proceedings in accordance with Texas Government Code, Chapter 2001, Administrative Procedure, Subchapter B, Rulemaking, as it may be amended.(b) The Commission may modify any proposed rule to ensure that it conforms to the format of commission rules, adequately addresses the perceived problem, and conforms to the filing requirements of the Texas Register.</content><note type="source"><p>Source Note: The provisions of this §800.255 adopted to be effective April 19, 1998, 23 TexReg 3700.</p></note></section></subchapter><subchapter identifier="/us/state/tx/tac/t40/p20/c800/scH"><num value="H">SUBCHAPTER H</num><heading>VENDOR PROTESTS</heading><section identifier="/us/state/tx/tac/t40/p20/c800/scH/s800.300"><num value="800.300">§800.300</num><heading>Definitions</heading><content>The following words and terms, when used in this subchapter, shall have the following meanings, unless the context clearly indicates otherwise:(1) Interested Parties--Respondents in connection with the Solicitation, evaluation, or award that is being protested.(2) Protestant--A Respondent Vendor that submits a protest under the Agency Vendor Protest Procedures.(3) Respondent--A Vendor that submits an offer or proposal in response to an Agency Solicitation.(4) Solicitation--A document, such as an Invitation for Bids, Request for Offers, Request for Proposals, or Request for Qualifications that contains a request for responses from Vendors to provide specified goods and services. The term also refers to the process of obtaining responses from Vendors to provide specified goods and services.(5) Vendor--A potential provider of goods or services to the Agency.</content><note type="source"><p>Source Note: The provisions of this §800.300 adopted to be effective October 26, 2020, 45 TexReg 7608.</p></note></section><section identifier="/us/state/tx/tac/t40/p20/c800/scH/s800.301"><num value="800.301">§800.301</num><heading>Vendor Protest Procedures</heading><content>(a) Any Respondent who is allegedly aggrieved in connection with the Solicitation, evaluation, or award of a contract by the Agency may formally protest to the Agency's director of business operations.(1) Such protests must be made in writing and timely received by the Agency's director of business operations.(2) The protest must be received by the Agency's director of business operations within 10 working days after the Protestant knows, or should have known, of the occurrence of the action that is protested.(3) The Protestant shall mail or deliver copies of the protest to: Director of Business Operations, 101 E. 15th Street, Room 316T, Austin, Texas 78778. The Protestant must also mail or deliver copies of the protest to Interested Parties known to the Protestant.(b) A protest that is not filed timely shall not be considered unless the director of business operations determines that the protest raises issues that are significant to the Agency's procurement practices or procedures.(c) The protest must be in writing and contain:(1) the identifying name and number of the Solicitation being protested;(2) identification of the specific statute or regulation that the Protestant alleges has been violated;(3) a specific description of each act or omission alleged to have violated the statutory or regulatory provision identified above in paragraph (2) of this section;(4) a precise statement of the relevant facts including:(A) sufficient documentation to establish that the protest has been timely filed; and(B) a description of the resulting adverse impact to the Protestant;(5) a statement of the argument and authorities that the Protestant offers in support of the protest;(6) an explanation of the action the Protestant is requesting from the Agency; and(7) a statement confirming that copies of the protest have been mailed or delivered to any other Interested Party known to the Protestant.(d) The protest must be signed by an authorized representative for the Protestant and the signature notarized.(e) The Protestant may appeal determination of a protest to the Agency's deputy executive director.(1) The appeal filed under these procedures must be in writing, addressed to the Agency's deputy executive director; and(2) The protest must be received by the deputy executive director no later than 10 business days after the date of receipt of the written determination issued by the director of business operations.(f) The Agency may move forward with a Solicitation or contract award without delay, in spite of a timely filed protest, to protect the best interests of the Agency or the state.</content><note type="source"><p>Source Note: The provisions of this §800.301 adopted to be effective October 26, 2020, 45 TexReg 7608.</p></note></section></subchapter><subchapter identifier="/us/state/tx/tac/t40/p20/c800/scI"><num value="I">SUBCHAPTER I</num><heading>ENHANCED CONTRACT MONITORING</heading><section identifier="/us/state/tx/tac/t40/p20/c800/scI/s800.350"><num value="800.350">§800.350</num><heading>Purpose and Scope</heading><content>(a) Purpose. The purpose of this subchapter is to implement the requirements of Texas Government Code, §2261.253(c), requiring state agencies to establish, by rule, a procedure to identify each contract that requires enhanced contract or performance monitoring.(b) Scope. Pursuant to Texas Government Code, §2261.253(d) and (g), this subchapter does not apply to:(1) memoranda of understanding;(2) interagency contracts;(3) interlocal agreements; or(4) contracts for which there is not a cost.</content><note type="source"><p>Source Note: The provisions of this §800.350 adopted to be effective October 26, 2020, 45 TexReg 7608.</p></note></section><section identifier="/us/state/tx/tac/t40/p20/c800/scI/s800.351"><num value="800.351">§800.351</num><heading>Enhanced Contract Monitoring Policy</heading><content>(a) The Agency shall identify which contracts for goods and services require enhanced monitoring by evaluating the risk factors, which include:(1) the complexity of the goods and services to be provided;(2) the contract amount;(3) the length and scope of the project supported by the contract;(4) whether the services are new or have changed significantly since the last procurement of the same services;(5) whether the Agency has experience with the contractor;(6) whether the project affects external stakeholders or is of particular interest to third parties;(7) whether Agency data is accessed by the contractor; and(8) any other factors the Agency determines in a particular circumstance will create a level of risk to the state or Agency such that enhanced monitoring is required.(b) For contracts requiring enhanced monitoring, the contractor shall report to the assigned Agency contract manager on progress toward goals or performance measure achievements, and the status of deliverables, if any, and on any issues of which the contractor is aware that may create an impediment to meeting the project timeline or goals.(c) Enhanced monitoring may also include site visits, additional meetings with contractor staff, and inspection of documentation required by the Agency to assess progress toward achievement of performance requirements.(d) Projects deemed medium or high risk shall be monitored by the assigned contract manager and may involve additional team members such as an assigned project manager and staff from the Office of General Counsel or the Finance, Information Technology, or Regulatory Integrity Divisions, if warranted.</content><note type="source"><p>Source Note: The provisions of this §800.351 adopted to be effective October 26, 2020, 45 TexReg 7608.</p></note></section><section identifier="/us/state/tx/tac/t40/p20/c800/scI/s800.352"><num value="800.352">§800.352</num><heading>Reporting of Enhanced Contract Monitoring</heading><content>(a) Pursuant to the Texas Government Code §2261.253, the Agency shall submit information on each contract identified for enhanced contract monitoring to the Commission.(b) The director of Procurement and Contract Services (PCS director) shall immediately notify the Commission of any serious issue or risk that is identified with respect to a contract identified for enhanced contract monitoring.(c) The contract manager shall report on the status of all contracts subject to enhanced monitoring to the PCS director quarterly.(d) If any serious issues or risks are identified about a contract subject to enhanced monitoring, the PCS director will immediately notify the director of business operations and the executive director.</content><note type="source"><p>Source Note: The provisions of this §800.352 adopted to be effective October 26, 2020, 45 TexReg 7608.</p></note></section></subchapter><subchapter identifier="/us/state/tx/tac/t40/p20/c800/scK"><num value="K">SUBCHAPTER K</num><heading>CONTRACT NEGOTIATION, MEDIATION, AND OTHER ASSISTED NEGOTIATION OR MEDIATION PROCESSES</heading><section identifier="/us/state/tx/tac/t40/p20/c800/scK/s800.451"><num value="800.451">§800.451</num><heading>Purpose and Applicability</heading><content>(a) Purpose. The Commission intends these rules to govern negotiation, mediation, and other assisted negotiation or mediation processes regarding a claim of breach of contract asserted by a contractor against the Agency under Texas Government Code, Chapter 2260. The Commission recognizes that the rules contained in this subchapter are not intended to replace procedures relating to breach of contract claims that are mandated by state or federal law. The parties to a contract are encouraged to resolve any disagreement concerning the contract in the ordinary course of contract administration under less formal procedures specified in the parties' contract.(b) Applicability.(1) This chapter does not apply to an action of the Agency for which a contractor is entitled to a specific remedy pursuant to state or federal constitution or statute.(2) This chapter does not apply to a contract action proposed or taken by the Agency for which a contractor receiving Medicaid funds under that contract is entitled by state statute or rule to a hearing conducted in accordance with Texas Government Code, Chapter 2001.(3) This chapter does not apply to contracts:(A) between the Agency and the federal government or its agencies, another state or nation;(B) between the Agency and one or more other units of state government;(C) between the Agency and a local governmental body, or a political subdivision of another state;(D) between a subcontractor and a contractor;(E) subject to §201.112 of the Transportation Code;(F) within the exclusive jurisdiction of state or local regulatory bodies; or(G) within the exclusive jurisdiction of federal courts or regulatory bodies.(c) Remedies. The procedures contained in this subchapter are exclusive and required prerequisites to suit under the Civil Practice and Remedies Code, Chapter 107, and the Texas Government Code, Chapter 2260. This subchapter does not waive the Commission's or Agency's sovereign immunity to suit or liability.</content><note type="source"><p>Source Note: The provisions of this §800.451 adopted to be effective August 23, 2000, 25 TexReg 8063; amended to be effective February 7, 2011, 36 TexReg 592.</p></note></section><section identifier="/us/state/tx/tac/t40/p20/c800/scK/s800.452"><num value="800.452">§800.452</num><heading>Definitions</heading><content>The following words and terms, when used in this chapter, shall have the following meaning, unless the context clearly indicates otherwise:(1) Claim--A demand for damages by the contractor based upon the Agency's alleged breach of the contract.(2) Contract--A written contract between the Agency and a contractor by the terms of which the contractor agrees either:(A) to provide goods or services, by sale or lease, to or for the Agency; or(B) to perform a project as defined by Texas Government Code, §2166.001.(3) Contractor--Independent contractor who has entered into a contract directly with the Agency. The term does not include:(A) The contractor's subcontractor, officer, employee, agent or other person furnishing goods or services to a contractor;(B) An employee of the Agency; or(C) A student at an institution of higher education.(4) Counterclaim--A demand by the Agency based upon the contractor's claim.(5) Event--An act or omission or a series of acts or omissions giving rise to a claim, including but not limited to the following:(A) for goods or services:(i) the failure of the Agency to timely pay for goods and services;(ii) the failure to pay the balance due and owing on the contract price, including orders for additional work, after deducting any amount owed the Agency for work not performed under the contract or in substantial compliance with the contract terms;(iii) the suspension, cancellation, or termination of the contract;(iv) final rejection of the goods or services tendered by the contractor, in whole or in part;(v) repudiation of the entire contract prior to or at the outset of performance by the contractor; or(vi) withholding liquidated damages from final payment to the contractor.(B) for a project:(i) the failure to timely pay the unpaid balance of the contract price following final acceptance of the project;(ii) the failure to make timely progress payments required by the contract;(iii) the failure to pay the balance due and owing on the contract price, including orders for additional work, after deducting any amount owed the Agency for work not performed under the contract or in substantial compliance with the contract terms;(iv) the failure to grant time extensions to which the contractor is entitled under the terms of the contract;(v) the failure to compensate the contractor for occurrences for which the contract provides a remedy;(vi) suspension, cancellation or termination of the contract;(vii) rejection by the Agency, in whole or in part, of the "work," as defined by the contract, tendered by the contractor;(viii) repudiation of the entire contract prior to or at the outset of performance by the contractor;(ix) withholding liquidated damages from final payment to the contractor; or(x) refusal, in whole or in part, of a written request made by the contractor in strict accordance with the contract to adjust the contract price, the contract time, or the scope of work.(6) Goods--Supplies, materials or equipment.(7) Mediation--A consensual process in which an impartial third party, the mediator, facilitates communication between the parties to promote reconciliation, settlement, or understanding among them.(8) Negotiation--A consensual bargaining process in which the parties attempt to resolve a claim and counterclaim.(9) Parties--The contractor and the Agency that have entered into a contract in connection with which a claim of breach of contract has been filed under this chapter.(10) Project--As defined in Texas Government Code §2166.001, a building construction project that is financed wholly or partly by a specific appropriation, bond issue or federal money, including the construction of:(A) a building, structure, or appurtenant facility or utility, including the acquisition and installation of original equipment and original furnishing; and(B) an addition to, or alteration, modification, rehabilitation, or repair of an existing building, structure, or appurtenant facility or utility.(11) Services--The furnishing of skilled or unskilled labor or consulting or professional work, or a combination thereof, excluding the labor of an employee of the Agency.</content><note type="source"><p>Source Note: The provisions of this §800.452 adopted to be effective August 23, 2000, 25 TexReg 8063.</p></note></section><section identifier="/us/state/tx/tac/t40/p20/c800/scK/s800.453"><num value="800.453">§800.453</num><heading>Contractor Claim</heading><content>(a) A contractor asserting a claim of breach of contract under the Texas Government Code, Chapter 2260, shall file notice of the claim as provided by this section that shall:(1) be in writing and signed by the contractor or the contractor's authorized representative;(2) be delivered by hand, certified mail return receipt requested, or other verifiable delivery service to the officer of the Agency designated in the contract to receive a notice of claim of breach of contract under the Texas Government Code, Chapter 2260; if no person is designated in the contract, the notice shall be delivered to the executive director; and(3) state in detail:(A) the nature of the alleged breach of contract, including the date of the event that the contractor asserts as the basis of the claim and each contractual provision allegedly breached;(B) a description of damages that resulted from the alleged breach, including the amount and method used to calculate those damages; and(C) the legal theory of recovery, i.e., breach of contract, including the causal relationship between the alleged breach and the damages claimed.(b) In addition to the mandatory contents of the notice of claim as required by subsection (a) of this section, the contractor may submit supporting documentation or other tangible evidence to facilitate the Agency's evaluation of the contractor's claim.(c) The notice of claim shall be delivered no later than 180 days after the date of the event that the contractor asserts as the basis of the claim.</content><note type="source"><p>Source Note: The provisions of this §800.453 adopted to be effective August 23, 2000, 25 TexReg 8063.</p></note></section><section identifier="/us/state/tx/tac/t40/p20/c800/scK/s800.454"><num value="800.454">§800.454</num><heading>Agency Counterclaim</heading><content>(a) The Agency, when asserting a counterclaim under Texas Government Code, Chapter 2260, shall file notice of the counterclaim as provided by this section that shall:(1) be in writing;(2) be delivered by hand, certified mail return receipt requested, or other verifiable delivery service to the contractor or representative of the contractor who signed the notice of claim of breach of contract; and(3) state in detail:(A) the nature of the counterclaim;(B) a description of damages or offsets sought, including the amount and method used to calculate those damages or offsets; and(C) the legal theory supporting the counterclaim.(b) In addition to the mandatory contents of the notice of counterclaim required by subsection (a) of this section, the Agency may submit supporting documentation or other tangible evidence to facilitate the contractor's evaluation of the unit's counterclaim.(c) The notice of counterclaim shall be delivered to the contractor no later than 60 days after the Agency's receipt of the contractor's notice of claim.(d) Nothing herein precludes the Agency from initiating a lawsuit for damages against the contractor in a court of competent jurisdiction.</content><note type="source"><p>Source Note: The provisions of this §800.454 adopted to be effective August 23, 2000, 25 TexReg 8063; amended to be effective February 7, 2011, 36 TexReg 592.</p></note></section><section identifier="/us/state/tx/tac/t40/p20/c800/scK/s800.455"><num value="800.455">§800.455</num><heading>Request for Voluntary Disclosure of Additional Information</heading><content>(a) Upon the filing of a claim or counterclaim, parties may request to review and copy information in the possession or custody or subject to the control of the other party that pertains to the contract claimed to have been breached, including, without limitation:(1) accounting records;(2) correspondence, including, without limitation, correspondence between the Agency and outside consultants it utilized in preparing its bid solicitation or any part thereof or in administering the contract, and correspondence between the contractor and its subcontractors, materialmen, and vendors;(3) schedules;(4) the parties' internal memoranda; and(5) documents created by the contractor in preparing its offer to the Agency and documents created by the Agency in analyzing the offers it received in response to a solicitation.(b) Subsection (a) of this section applies to all information in the parties' possession regardless of the manner in which it is recorded, including, without limitation, paper and electronic media.(c) The contractor and the Agency may seek additional information directly from third parties, including, without limitation, the Agency's third-party consultants and the contractor's subcontractors.(d) Nothing in this section requires any party to disclose the requested information or any matter that is privileged under Texas law.(e) Material submitted pursuant to this subsection and claimed to be confidential by the contractor shall be handled pursuant to the requirements of the Public Information Act.</content><note type="source"><p>Source Note: The provisions of this §800.455 adopted to be effective August 23, 2000, 25 TexReg 8063.</p></note></section><section identifier="/us/state/tx/tac/t40/p20/c800/scK/s800.456"><num value="800.456">§800.456</num><heading>Costs</heading><content>Unless the contractor and the Agency agree otherwise, each party shall be responsible for its own costs incurred in connection with the negotiation, mediation, and other assisted negotiation or mediation processes, including costs of document reproduction for documents requested by such party, attorney's fees, and consultant or expert fees. The costs of the mediation process itself shall be divided equally between the parties.</content><note type="source"><p>Source Note: The provisions of this §800.456 adopted to be effective August 23, 2000, 25 TexReg 8063.</p></note></section><section identifier="/us/state/tx/tac/t40/p20/c800/scK/s800.461"><num value="800.461">§800.461</num><heading>Duty to Negotiate</heading><content>The parties shall negotiate in accordance with the timetable set forth in §800.462 of this subchapter to attempt to resolve all claims and counterclaims. No party is obligated to settle with the other party as a result of the negotiation.</content><note type="source"><p>Source Note: The provisions of this §800.461 adopted to be effective August 23, 2000, 25 TexReg 8063.</p></note></section><section identifier="/us/state/tx/tac/t40/p20/c800/scK/s800.462"><num value="800.462">§800.462</num><heading>Negotiation Timetable</heading><content>(a) Following receipt of a contractor's notice of claim, the Agency's executive director or designated representative shall review the contractor's claim and the Agency's counterclaim, if any, and initiate negotiations with the contractor to attempt to resolve the claim and counterclaim.(b) Subject to subsection (c) of this section, the parties shall begin negotiations within a reasonable period of time, not to exceed the 120th day after the date the claim is received.(c) The Agency may delay negotiations, with written agreement of the parties, until after the 120th day after the date of the event giving rise to the claim of breach of contract.(d) The parties may conduct negotiations according to an agreed schedule as long as they begin negotiations no later than the 120th day after the claim is received.(e) Subject to subsection (f) of this section, the parties shall complete the negotiations that are required by this subchapter as a prerequisite to a contractor's request for contested case hearing no later than 270 days after the Agency receives the contractor's notice of claim.(f) The parties may agree in writing to extend the time for negotiations on or before the 270th day after the Agency receives the contractor's notice of claim. The agreement shall be signed by representatives of the parties with authority to bind each respective party and shall provide for the extension of the statutory negotiation period until a date certain. The parties may enter into a series of written extension agreements that comply with the requirements of this section.(g) The contractor may request a contested case hearing before the State Office of Administrative Hearings (SOAH) pursuant to §800.492 of this subchapter (relating to Request for Contested Case Hearing) after the 270th day after the Agency receives the contractor's notice of claim, or the expiration of any extension agreed to under subsection (f) of this section.(h) The parties may agree to mediate the dispute at any time before the 270th day after the Agency receives the contractor's notice of claim or before the expiration of any extension agreed to by the parties pursuant to subsection (f) of this section. The mediation shall be governed by §§800.471 - 800.473 of this subchapter.(i) Nothing in this section is intended to prevent the parties from agreeing to commence negotiations earlier than the deadlines established in subsections (b) and (c) of this section, or from continuing or resuming negotiations after the contractor requests a contested case hearing before SOAH.</content><note type="source"><p>Source Note: The provisions of this §800.462 adopted to be effective August 23, 2000, 25 TexReg 8063; amended to be effective February 7, 2011, 36 TexReg 592.</p></note></section><section identifier="/us/state/tx/tac/t40/p20/c800/scK/s800.463"><num value="800.463">§800.463</num><heading>Conduct of Negotiation</heading><content>(a) A negotiation under this subchapter may be conducted by any method, technique, or procedure authorized under the contract or agreed upon by the parties, including, without limitation, negotiation in person, by telephone, correspondence, video conference, or any other method that permits the parties to identify their respective positions, discuss their respective differences, confer with their respective advisers, exchange offers of settlement, and settle.(b) The parties may conduct negotiations with the assistance of one or more neutral third parties. If the parties choose to mediate their dispute, the mediation shall be conducted in accordance with §§800.471-800.473 of this subchapter. Parties may choose other assisted negotiation or mediation processes, including, without limitation, processes such as those described in §§800.481 and 800.482 of this subchapter.(c) To facilitate the meaningful evaluation and negotiation of the claim(s) and any counterclaim(s), the parties may exchange relevant documents that support their respective claims, defenses, counterclaims or positions.(d) Material submitted pursuant to this subsection and claimed to be confidential by the contractor shall be handled pursuant to the requirements of the Public Information Act.</content><note type="source"><p>Source Note: The provisions of this §800.463 adopted to be effective August 23, 2000, 25 TexReg 8063.</p></note></section><section identifier="/us/state/tx/tac/t40/p20/c800/scK/s800.471"><num value="800.471">§800.471</num><heading>Mediation</heading><content>(a) Option to Mediate. The parties may agree to mediate the dispute at any time before the 120th day after the Agency receives the contractor's notice of claim or before the expiration of any extension agreed to by the parties pursuant to §800.462(f) of this subchapter. The mediation shall be governed by rules contained in this subchapter.(b) Timetable. A contractor and Agency may mediate the dispute even after the case has been referred to SOAH for a contested case. SOAH may also refer a contested case for mediation pursuant to its own rules and guidelines, whether or not the parties have previously attempted mediation.(c) Request for Referral. If mediation does not resolve all issues raised by the claim, the contractor may request that the claim be referred to SOAH by the Agency. Nothing in these rules prohibits the contractor and the Agency from mediating their dispute after the case has been referred for contested case hearing, subject to the rules of SOAH.(d) Conduct of Mediation.(1) A mediator may not impose his or her own judgment on the issues for that of the parties. The mediator must be acceptable to both parties.(2) The mediation is subject to the provisions of the Governmental Dispute Resolution Act, Texas Government Code, Chapter 2009. For purposes of this subchapter, "mediation" is assigned the meaning set forth in the Civil Practice and Remedies Code, §154.023.(3) To facilitate a meaningful opportunity for settlement, the parties shall, to the extent possible, select representatives who are knowledgeable about the dispute, who are in a position to reach agreement, or who can credibly recommend approval of an agreement.</content><note type="source"><p>Source Note: The provisions of this §800.471 adopted to be effective August 23, 2000, 25 TexReg 8063; amended to be effective February 7, 2011, 36 TexReg 592.</p></note></section><section identifier="/us/state/tx/tac/t40/p20/c800/scK/s800.472"><num value="800.472">§800.472</num><heading>Agreement to Mediate</heading><content>(a) Parties may agree to use mediation as an option to resolve a breach of contract claim at the time they enter into the contract and include a contractual provision to do so. The parties may mediate a breach of contract claim even absent a contractual provision to do so if both parties agree.(b) Any agreement to mediate shall include consideration of the following factors:(1) The source of the mediator. Potential sources of mediators include governmental officers or employees who are qualified as mediators under Civil Practice and Remedies Code, §154.052, private mediators, SOAH, the Center for Public Policy Dispute Resolution at The University of Texas at Austin School of Law, an alternative dispute resolution system created under Civil Practice and Remedies Code, Chapter 152, or another state or federal agency or through a pooling agreement with several state agencies. Before naming a mediator source in a contract, the parties should contact the mediator source to be sure that it is willing to serve in that capacity. In selecting a mediator, the parties should use the qualifications set forth in §800.473 of this Subchapter (relating to Qualifications and Immunity of the Mediator).(2) The time period for the mediation. The parties should allow enough time in which to make arrangements with the mediator and attending parties to schedule the mediation, to attend and participate in the mediation, and to complete any settlement approval procedures necessary to achieve final settlement. While this time frame can vary according to the needs and schedules of the mediator and parties, it is important that the parties allow adequate time for the process.(3) The location of the mediation.(4) Allocation of costs of the mediator.(5) The identification of representatives who will attend the mediation on behalf of the parties, if possible, by name or position within the Agency or contracting entity.(6) The settlement approval process in the event the parties reach agreement at the mediation.</content><note type="source"><p>Source Note: The provisions of this §800.472 adopted to be effective August 23, 2000, 25 TexReg 8063.</p></note></section><section identifier="/us/state/tx/tac/t40/p20/c800/scK/s800.473"><num value="800.473">§800.473</num><heading>Qualifications and Immunity of the Mediator</heading><content>(a) The mediator shall possess the qualifications required under Civil Practice and Remedies Code, §154.052, be subject to the standards and duties prescribed by Civil Practice and Remedies Code, §154.053, and have the qualified immunity prescribed by Civil Practice and Remedies Code, §154.055, if applicable.(b) The parties should decide whether, and to what extent, knowledge of the subject matter and experience in mediation would be advisable for the mediator.(c) The parties should obtain from the prospective mediator the ethical standards that will govern the mediation.</content><note type="source"><p>Source Note: The provisions of this §800.473 adopted to be effective August 23, 2000, 25 TexReg 8063.</p></note></section><section identifier="/us/state/tx/tac/t40/p20/c800/scK/s800.481"><num value="800.481">§800.481</num><heading>Other Assisted Negotiation and Mediation Processes</heading><content>(a) Parties to a contract dispute under Texas Government Code, Chapter 2260 may agree, either contractually or when a dispute arises, to use other assisted negotiation and mediation (alternative dispute resolution) processes in addition to negotiation and mediation to resolve their dispute.(b) Factors Supporting the Use of Other Assisted Negotiation or Mediation Processes. The following factors may help parties decide whether one or more of the other assisted negotiation and mediation processes could help resolve their dispute:(1) The parties recognize the benefits of an agreed resolution of the dispute;(2) The expense of proceeding to contested case hearing at SOAH is substantial and might outweigh any potential recovery;(3) The parties want an expedited resolution;(4) The ultimate outcome is uncertain;(5) There exists factual or technical complexity or uncertainty which would benefit from expertise of a third-party expert for technical assistance or fact-finding;(6) The parties are having substantial difficulty communicating effectively;(7) A mediator third party could facilitate the parties' realistic evaluation of their respective cases;(8) There is an on-going relationship that exists between parties;(9) The parties want to retain control over the outcome;(10) There is a need to develop creative alternatives to resolve the dispute;(11) There is a need for flexibility in shaping relief;(12) The other side has an unrealistic view of the merits of their case; or(13) The parties (or aggrieved persons) need to hear an evaluation of the case from someone other than their lawyers.</content><note type="source"><p>Source Note: The provisions of this §800.481 adopted to be effective August 23, 2000, 25 TexReg 8063.</p></note></section><section identifier="/us/state/tx/tac/t40/p20/c800/scK/s800.482"><num value="800.482">§800.482</num><heading>Methods of Other Assisted Negotiation and Mediation Processes</heading><content>(a) Methods. The Agency may elect any of the following methods, or a combination of these methods, or any assisted negotiation process if agreed to by the parties, in seeking resolution of disputes or other controversy arising under Texas Government Code, Chapter 2260. If the parties agree to use another assisted negotiation or mediation procedure, the parties shall agree in writing to a detailed description of the process prior to engaging in the process that may include one or more of the following:(1) Mediation as set forth in this subchapter;(2) Early evaluation by a third-party neutral;(3) Neutral fact-finding by an expert; or(4) Mini-trial.(b) Early evaluation by a third party.(1) This is a confidential conference where the parties and their counsel present the factual and legal bases of their claim and receive a non-binding assessment by an experienced neutral with subject-matter expertise or with significant experience in the substantive area of law involved in the dispute.(2) After summary presentations, the third-party neutral identifies areas of agreement for possible stipulations, assesses the strengths and weaknesses of each party's position, and estimates, if possible, the likelihood of liability and the dollar range of damages that appear reasonable to him or her.(3) This is a less complicated procedure than the mini-trial, described in subsection (d) of this section. It may be appropriate for only some issues in dispute, for example, where there are clear-cut differences over the appropriate amount of damages. This process may be particularly helpful when:(A) The parties agree that the dispute can be settled;(B) The dispute involves specific legal issues;(C) The parties disagree on the amount of damages;(D) The opposition has an unrealistic view of the dispute; or(E) The neutral is a recognized expert in the subject area or area of law involved.(c) Neutral fact-finding by an expert.(1) In this process, a neutral third-party expert studies a particular issue and reports findings on that issue. The process usually occurs after most discovery in the dispute has been completed and the significance of particular technical or scientific issues is apparent.(2) The parties may agree in writing that the fact-finding will be binding on them in later proceedings (and entered into as a stipulation in the dispute if the matter proceeds to contested case hearing), or that it will be advisory in nature, to be used only in further settlement discussions between representatives of the parties. This process may be particularly helpful when:(A) Factual issues requiring expert testimony may be dispositive of liability or damage issues;(B) The use of a neutral is cost effective; or(C) The neutral's findings could narrow factual issues for contested case hearing.(d) Mini-trial.(1) A mini-trial is generally a summary proceeding before a representative of upper management from each party, with authority to settle, and a third-party neutral selected by agreement of the parties. A mini-trial is usually divided into three phases: a limited information exchange phase, the actual hearing, and post-hearing settlement discussions. No written or oral statement made in the proceeding may be used as evidence or an admission in any other proceeding.(2) The information exchange stage should be brief, but it must be sufficient for each party to understand and appreciate the key issues involved in the case. At a minimum, parties should exchange key exhibits, introductory statements, and a summary of witnesses' testimony.(3) At the hearing, representatives of the parties present a summary of the anticipated evidence and any legal issues that must be decided before the case can be resolved. The third-party neutral presides over the presentation and may question witnesses and counsel, as well as comment on the arguments and evidence. Each party may agree to put on abbreviated direct and cross-examination testimony. The hearing generally takes no longer than 1-2 days.(4) Settlement discussions, facilitated by the third-party neutral, take place after the hearing. The parties may ask the neutral to formally evaluate the evidence and arguments and give an advisory opinion as to the issues in the case. If the parties cannot reach an agreed resolution to the dispute, either side may declare the mini- trial terminated and proceed to resolve the dispute by other means.(5) Mini-trials may be appropriate when:(A) The dispute is at a stage where substantial costs can be saved by a resolution based on limited information gathering;(B) The matter justifies the senior executive time required to complete the process;(C) The issues involved include highly technical mixed questions of law and fact;(D) The matter involves trade secrets or other confidential or proprietary information; or(E) The parties seek to narrow the large number of issues in dispute.</content><note type="source"><p>Source Note: The provisions of this §800.482 adopted to be effective August 23, 2000, 25 TexReg 8063.</p></note></section><section identifier="/us/state/tx/tac/t40/p20/c800/scK/s800.491"><num value="800.491">§800.491</num><heading>Settlement Agreement and Approval Procedures</heading><content>(a) Settlement Process. The parties' settlement approval procedures shall be disclosed by the parties prior to the negotiation, mediation, or other assisted negotiation and mediation process, unless the parties agree otherwise in writing. To the extent possible, the parties shall select negotiators or representatives who are knowledgeable about the subject matter of the dispute, who are in a position to reach agreement, and who can credibly recommend approval of an agreement.(b) Initial Settlement Agreement. Any settlement agreement reached during the mediation shall be signed by the representatives of the contractor and the Agency, and shall describe any procedures required to be followed by the parties in connection with final approval of the agreement.(c) Final Settlement Agreement.(1) A final settlement agreement reached during, or as a result of negotiation, mediation, or other assisted negotiation or mediation process that resolves an entire claim or any designated and severable portion of a claim, shall be in writing and signed by representatives of the contractor and the Agency who have authority to bind each respective party.(2) If the settlement agreement does not resolve all issues raised by the claim and counterclaim, the agreement shall identify the issues that are not resolved.(3) A partial settlement does not waive a contractor's rights under the Texas Government Code, Chapter 2260, as to the parts of the claim that are not resolved.(d) Confidentiality of Mediation and Final Settlement Agreement.(1) A mediation conducted under this section is confidential in accordance with Texas Government Code, §2009.054.(2) The confidentiality of a final settlement agreement to which the Agency is a signatory that is reached as a result of the mediation is governed by Texas Government Code, Chapter 552.</content><note type="source"><p>Source Note: The provisions of this §800.491 adopted to be effective August 23, 2000, 25 TexReg 8063.</p></note></section><section identifier="/us/state/tx/tac/t40/p20/c800/scK/s800.492"><num value="800.492">§800.492</num><heading>Request for Contested Case Hearing</heading><content>(a) If a claim for breach of contract is not resolved in its entirety through negotiation, mediation, or other assisted negotiation or mediation process, in accordance with this subchapter on or before the 270th day after the Agency receives the notice of claim, or after the expiration of any extension agreed to by the parties pursuant to this subchapter, the contractor may file a request with the Agency for a contested case hearing before SOAH.(b) A request for a contested case hearing shall state the legal and factual basis for the claim, and shall be delivered to the chief administrative officer of the Agency or other officer designated in the contract to receive notice within a reasonable time after the 270th day or the expiration of any written extension agreed to pursuant to this subchapter.(c) The Agency shall forward the contractor's request for contested case hearing to SOAH within a reasonable period of time, not to exceed 10 business days, after receipt of the request.(d) The parties may agree to submit the case to SOAH before the 270th day after the notice of claim is received by the Agency if they have achieved a partial resolution of the claim or if an impasse has been reached in the negotiations and proceeding to a contested case hearing would serve the interests of justice.</content><note type="source"><p>Source Note: The provisions of this §800.492 adopted to be effective August 23, 2000, 25 TexReg 8063; amended to be effective February 7, 2011, 36 TexReg 592.</p></note></section></subchapter><subchapter identifier="/us/state/tx/tac/t40/p20/c800/scL"><num value="L">SUBCHAPTER L</num><heading>WORKFORCE DIPLOMA PILOT PROGRAM</heading><section identifier="/us/state/tx/tac/t40/p20/c800/scL/s800.500"><num value="800.500">§800.500</num><heading>Purpose</heading><content>The purpose of the Workforce Diploma Pilot Program is to reimburse qualified providers that provide assistance to adult students to obtain high school diplomas and attain industry-recognized credentials and to develop technical career readiness and employability skills to the extent that funding is available for this purpose.</content><note type="source"><p>Source Note: The provisions of this §800.500 adopted to be effective January 25, 2021, 46 TexReg 577.</p></note></section><section identifier="/us/state/tx/tac/t40/p20/c800/scL/s800.501"><num value="800.501">§800.501</num><heading>Definitions</heading><content>The following words and terms, when used in this subchapter, shall have the following meanings, unless the context clearly indicates otherwise. (1) Academic resiliency--A student's ability to persist and to academically succeed despite adversity. (2) Academic skill intake assessment--A formal and/or informal assessment used at intake to gather information on a student's current knowledge and skills in specific academic areas (for example, literacy and numeracy). That information is then used to determine the student's appropriate instructional level as well as accommodations and/or remediation that the student needs.(3) Career Pathway--A combination of rigorous and high-quality education, training, and other services that:(A) aligns with the skill needs of industries in the economy of the state or regional economy involved; (B) prepares an individual to be successful in any of a full range of secondary or postsecondary education options; (C) includes counseling to support an individual in achieving the individual's education and career goals; (D) includes, as appropriate, education offered concurrently with, and in the same context as, workforce preparation activities and training for a specific occupation or occupational cluster; (E) organizes education, training, and other services to meet the particular needs of an individual in a manner that accelerates the educational and career advancement of the individual to the extent practicable; (F) enables an individual to attain a secondary school diploma or its recognized equivalent, and at least one recognized postsecondary credential; and (G) helps an individual enter or advance within a specific occupation or occupational cluster (29 USC §3102, Definitions).(4) Eligible participant--An individual who is over the age of compulsory school attendance, as prescribed by Texas Education Code, §25.085, and as required by the Agency, must:(A) be a Texas resident; (B) lack a high school diploma;(C) be authorized to work in the United States; and(D) be able to work immediately upon graduation from the program.(5) Employability skills certification program--Refers to a certification in general skills that are necessary for success in the labor market at all employment levels and in all industry sectors. Employability skills include problem-solving, collaboration, organization, and adaptability.(6) Half credit--The standard award of credit given for a course that lasts one semester, and which is based on the Carnegie Unit. When determining credits, qualified providers should consider instructional time plus the amount of time that the student would take to complete the coursework in a high school semester or academic year. In traditional education models, a student typically attends a class for 55 to 60 minutes a day for four or five days a week in addition to studying independently.(7) High school diploma--A credential awarded by an entity, based on completion of all state graduation requirements as outlined in Texas Education Code, §28.025 and §39.023 and 19 TAC Chapter 74 (relating to Curriculum Requirements) and Chapter 101 (relating to Assessment).(8) Industry-recognized credential--A state-approved credential verifying an individual's qualifications and competence and is issued by a third party with the relevant authority to issue such credentials (US Department of Labor, 2010). Industry-recognized credentials offered by qualified providers must align with the Agency's mission to target high-growth, high-demand, and emerging occupations that are crucial to the state and local workforce economies, and must reflect the target occupations for the workforce areas in which services will be provided. Qualified providers may also reference the list of industry-based certifications for public school accountability published by the Texas Education Agency.(9) Learning Plan Development--The process by which an individualized learning plan is developed after student intake; it is maintained through coaching and mentoring.(10) One credit--The standard award credit given for a course that lasts a full academic year, and which is based on the Carnegie Unit. When determining credits, qualified providers should consider instructional time plus the amount of time that the student would take to complete the coursework in a high school semester or academic year. In traditional education models, a student typically attends a class for 55 to 60 minutes a day for four or five days a week, in addition to studying independently.(11) Program--Refers to the Workforce Diploma Pilot Program, set forth in Texas Labor Code, Chapter 317.(12) Qualified provider--A provider that may participate in the Program and receive reimbursement and that:(A) is a public, nonprofit, or private entity that is:(i) authorized under the Texas Education Code or other state law to grant a high school diploma; or(ii) accredited by a regional accrediting body, as established by the US Secretary of Education, pursuant to 20 USCS §1099b, Recognition of Accrediting Agency or Association and working in partnership with an entity described by clause (i) of this subparagraph;(B) has at least two years of experience providing dropout reengagement services to adult students, including recruitment, learning plan development, and proactive coaching and mentoring, leading to the obtainment of a high school diploma;(C) is equipped to: (i) provide:(I) academic skill intake assessment and transcript evaluations;(II) remediation coursework in literacy and numeracy;(III) a research-validated academic resiliency assessment and intervention;(IV) employability skills development aligned to employer needs;(V) career pathways coursework;(VI) preparation for the attainment of industry-recognized credentials; and(VII) career placement services; and(ii) develop a learning plan that integrates academic requirements and career goals; and (D) offers a course catalog that includes all courses necessary to meet high school graduation requirements in Texas, as authorized under 19 TAC Chapter 74, Subchapter B (relating to Graduation Requirements).(13) Regional accrediting body--Must meet the criteria established by the US Secretary of Education pursuant to 20 USCS §1099b, Recognition of Accrediting Agency or Association, and appear on the US Secretary of Education's list of federally recognized accrediting agencies in the Federal Register, as stated in 34 CFR §602.2. A copy of the list may be obtained from the US Department of Education.</content><note type="source"><p>Source Note: The provisions of this §800.501 adopted to be effective January 25, 2021, 46 TexReg 577; amended to be effective February 26, 2024, 49 TexReg 1101.</p></note></section><section identifier="/us/state/tx/tac/t40/p20/c800/scL/s800.502"><num value="800.502">§800.502</num><heading>Request for Qualifications and List of Qualified Providers</heading><content>(a) The Agency will identify qualified providers to participate in the Program through a statewide Request for Qualifications (RFQ) process conducted in accordance with state requirements. The Agency will publish an RFQ no later than October 15th of each year to identify Program providers.(b) Potential providers will apply directly to the Agency using the RFQ process, and, once identified as a qualified provider, must meet all deadlines, requirements, and guidelines set forth in the published RFQ.(c) The Agency will publish a list of qualified providers no later than November 15th of each year to participate in the Program the next calendar year.(d) Each provider on the qualified provider list will be eligible to receive monthly reimbursements for this Program based on monthly invoices submitted to the Agency, as prescribed in the RFQ's terms.(e) Each year, the Agency shall review and update the list of qualified providers. Qualified providers that do not meet the minimum performance standards outlined in §800.503 of this subchapter will be placed on probation for the remainder of the calendar year. Failure to meet both minimum performance standards for two consecutive years will result in disqualification from the Program.(f) The Agency's determinations in the RFQ process will be based on the affirmation of the qualified provider to effectively perform all services and activities outlined in Texas Labor Code, Chapter 317.</content><note type="source"><p>Source Note: The provisions of this §800.502 adopted to be effective January 25, 2021, 46 TexReg 577.</p></note></section><section identifier="/us/state/tx/tac/t40/p20/c800/scL/s800.503"><num value="800.503">§800.503</num><heading>Minimum Performance Standards</heading><content>(a) The minimum performance standards for the calendar year must include:(1) a graduation rate, as defined in §800.504(a) of this subchapter, of at least 50 percent; and(2) a program cost per graduate of $7,000 or less, as calculated pursuant to §800.504(b) of this subchapter.(b) Each year, the Agency shall review data from each participating provider to ensure that the services offered by the provider are meeting the minimum performance standards. If the Agency determines that a provider did not meet the minimum performance standards in the previous calendar year, the Agency shall place the provider on probationary status for the remainder of the current calendar year.(c) The Agency shall remove any provider that does not meet the minimum performance standards for two consecutive calendar years from the provider list published under Texas Labor Code, §317.005.</content><note type="source"><p>Source Note: The provisions of this §800.503 adopted to be effective January 25, 2021, 46 TexReg 577.</p></note></section><section identifier="/us/state/tx/tac/t40/p20/c800/scL/s800.504"><num value="800.504">§800.504</num><heading>Graduation Rate and Graduate Cost Formulas</heading><content>(a) Graduation rate is defined as and determined by dividing the number of students who received a high school diploma from the qualified provider by the number of students for which the qualified provider sought and received reimbursements.(b) The Program cost per graduate formula is determined as the product of the number of students who received a high school diploma the previous calendar year multiplied by $7,000; the product may not exceed the total annual cost (reimbursements paid) to the qualified provider for the total number of services provided.</content><note type="source"><p>Source Note: The provisions of this §800.504 adopted to be effective January 25, 2021, 46 TexReg 577.</p></note></section><section identifier="/us/state/tx/tac/t40/p20/c800/scL/s800.505"><num value="800.505">§800.505</num><heading>Reimbursement Rates</heading><content>(a) The reimbursement amounts that a qualified provider may receive, to the extent that funding is available, shall be as follows:(1) $250 for completion of a half credit;(2) $250 for completion of an employability skills certification program equal to at least one credit or the equivalent;(3) $250 for the attainment of an industry-recognized credential requiring not more than 50 hours of training;(4) $500 for the attainment of an industry-recognized credential requiring at least 50 but not more than 100 hours of training;(5) $750 for the attainment of an industry-recognized credential requiring more than 100 hours of training; and(6) $1,000 for the obtainment of a high school diploma.(b) A provider shall not be reimbursed more than one time for one attainment of an industry-recognized credential.</content><note type="source"><p>Source Note: The provisions of this §800.505 adopted to be effective January 25, 2021, 46 TexReg 577.</p></note></section></subchapter><subchapter identifier="/us/state/tx/tac/t40/p20/c800/scM"><num value="M">SUBCHAPTER M</num><heading>TAX REFUND FOR WAGES PAID TO EMPLOYEE RECEIVING FINANCIAL ASSISTANCE</heading><section identifier="/us/state/tx/tac/t40/p20/c800/scM/s800.550"><num value="800.550">§800.550</num><heading>Purpose</heading><content>The purpose of this subchapter is to establish rules for the Tax Refund for Wages Paid to Employee Receiving Financial Assistance in accordance with Texas Labor Code, Chapter 301, Subchapter H.</content><note type="source"><p>Source Note: The provisions of this §800.550 adopted to be effective November 24, 2022, 47 TexReg 7748.</p></note></section><section identifier="/us/state/tx/tac/t40/p20/c800/scM/s800.551"><num value="800.551">§800.551</num><heading>Definitions</heading><content>The following words and terms, when used in this subchapter, shall have the following meanings, unless the context clearly indicates otherwise.(1) Comptroller--The comptroller of public accounts of the State of Texas, as defined under Texas Government Code, Chapter 403.(2) Person--A "person" is:(A) a business entity located in this state;(B) a governmental subdivision located in this state; or(C) a public or private organization located in this state that is not a state agency.</content><note type="source"><p>Source Note: The provisions of this §800.551 adopted to be effective November 24, 2022, 47 TexReg 7748.</p></note></section><section identifier="/us/state/tx/tac/t40/p20/c800/scM/s800.552"><num value="800.552">§800.552</num><heading>Tax Refund Voucher</heading><content>(a) The Agency shall issue a tax refund voucher in the amount allowed by this subchapter and subject to the restrictions imposed by this subchapter to a person that meets the eligibility requirements under this subchapter.(b) A person issued a tax refund voucher may, subject to the provisions of this subchapter, apply to the comptroller's office for a refund of taxes in accordance with Texas Labor Code, §301.106.</content><note type="source"><p>Source Note: The provisions of this §800.552 adopted to be effective November 24, 2022, 47 TexReg 7748.</p></note></section><section identifier="/us/state/tx/tac/t40/p20/c800/scM/s800.553"><num value="800.553">§800.553</num><heading>Amount of Refund: Limitation</heading><content>(a) The amount of the refund allowed under this subchapter shall be equal to 20 percent of the total wages, up to a maximum of $10,000 in wages for each employee, paid or incurred by a person for services rendered by an employee of the person during the period beginning with the date the employee begins work for the person and ending on the first anniversary of that date.(b) The refund claimed for a calendar year shall not exceed the amount of the net tax paid by the person to the State of Texas, after any other applicable tax credits in that calendar year.</content><note type="source"><p>Source Note: The provisions of this §800.553 adopted to be effective November 24, 2022, 47 TexReg 7748.</p></note></section><section identifier="/us/state/tx/tac/t40/p20/c800/scM/s800.554"><num value="800.554">§800.554</num><heading>Eligibility</heading><content>A person is eligible for the refund for wages paid or incurred by the person, during each calendar year for which the refund is claimed, only in the following circumstances:(1) The wages paid or incurred by the person are for services of an employee who is a:(A) resident of this state; and(B) recipient of:(i) financial assistance or services in accordance with Texas Human Resources Code, Chapter 31; or(ii) medical assistance in accordance with Texas Human Resources Code, Chapter 32;(2) The person satisfies the certification requirements under §800.555 of this subchapter; and(3) The person, under an arrangement under Texas Human Resources Code, §32.0422, provides and pays for the benefit of the employee a part of the cost of coverage under:(A) a health plan provided by a health maintenance organization established under Texas Insurance Code, Chapter 843;(B) a health benefit plan approved by the commissioner of insurance;(C) a self-funded or self-insured employee welfare benefit plan that provides health benefits and is established in accordance with the Employee Retirement Income Security Act of 1974 (29 United States Code §§1001 et seq.); or(D) a medical savings account or other health reimbursement arrangement authorized by law.</content><note type="source"><p>Source Note: The provisions of this §800.554 adopted to be effective November 24, 2022, 47 TexReg 7748.</p></note></section><section identifier="/us/state/tx/tac/t40/p20/c800/scM/s800.555"><num value="800.555">§800.555</num><heading>Certification</heading><content>A person is not eligible for the refund of wages paid or incurred by the person unless the person has received a written certification from the Agency that the person's employee is a recipient of:(1) financial assistance within the six months prior to his or her start date; or(2) medical assistance within the six months prior to his or her start date.</content><note type="source"><p>Source Note: The provisions of this §800.555 adopted to be effective November 24, 2022, 47 TexReg 7748.</p></note></section><section identifier="/us/state/tx/tac/t40/p20/c800/scM/s800.556"><num value="800.556">§800.556</num><heading>Application for Refund: Issuance</heading><content>(a) A person may apply for a tax refund voucher for wages paid an employee in a calendar year only on or after January 1 and before April 1 of the following calendar year.(b) A person must submit an application for the tax refund voucher on a form promulgated by the Agency.(c) On issuance of the tax refund voucher to the person by the Agency, the person may apply the voucher against a tax paid by the person to this state only for the calendar year for which the voucher is issued.</content><note type="source"><p>Source Note: The provisions of this §800.556 adopted to be effective November 24, 2022, 47 TexReg 7748.</p></note></section><section identifier="/us/state/tx/tac/t40/p20/c800/scM/s800.557"><num value="800.557">§800.557</num><heading>Limitations</heading><content>(a) A person may only apply for a tax refund related to wages paid while the person's employee was covered by health care coverage in accordance with §800.554(3) of this subchapter and the cost of coverage was paid in full or in part by the person.(b) A person may convey, assign, or transfer a refund under this subchapter to another person only if:(1) the employing unit is sold, conveyed, assigned, or transferred, in the same transaction or in a related transaction, to the person to whom the refund is conveyed assigned, or transferred; or(2) the person to whom the refund is conveyed, assigned, or transferred:(A) is subject to a tax administered by the comptroller and deposited to the credit of the state General Revenue Fund without dedication; and(B) directly or indirectly owns, controls, or otherwise directs, in whole or in part, an interest in the person from whom the refund is conveyed, assigned, or transferred.</content><note type="source"><p>Source Note: The provisions of this §800.557 adopted to be effective November 24, 2022, 47 TexReg 7748.</p></note></section></subchapter><subchapter identifier="/us/state/tx/tac/t40/p20/c800/scN"><num value="N">SUBCHAPTER N</num><heading>REPORTING WORKPLACE VIOLENCE</heading><section identifier="/us/state/tx/tac/t40/p20/c800/scN/s800.600"><num value="800.600">§800.600</num><heading>Reporting Workplace Violence</heading><content>(a) The purpose of this subchapter is to prescribe the form and content of the reporting workplace violence poster as required by House Bill 915, 88th Texas Legislature, Regular Session (2023), and Texas Labor Code Chapter 104A.(b) Definitions:(1) In this section, "Employee" and "Employer" shall have the meanings established under Texas Labor Code §104A.001. (2) "Notice" means a notice to employees of the contact information for reporting instances of workplace violence or suspicious activity to the Texas Department of Public Safety.(c) Each employer shall post the notice described in subsection (b) of this section:(1) in a conspicuous place in the employer's place of business;(2) in sufficient locations to be convenient to all employees; and(3) in English and Spanish, as appropriate.(d) A notice under this subchapter complies with Texas Labor Code, Chapter 104A, if, at a minimum, the following is conveyed:Attached Graphic(e) The Agency will make an electronic copy of the Reporting Workplace Violence poster available on the Agency's website, which will be free of charge and allow employers to print a copy of the poster.</content><note type="source"><p>Source Note: The provisions of this §800.600 adopted to be effective January 8, 2024, 49 TexReg 59.</p></note></section></subchapter></chapter><chapter identifier="/us/state/tx/tac/t40/p20/c801"><num value="801">CHAPTER 801</num><heading>LOCAL WORKFORCE DEVELOPMENT BOARDS</heading><subchapter identifier="/us/state/tx/tac/t40/p20/c801/scA"><num value="A">SUBCHAPTER A</num><heading>GENERAL PROVISIONS</heading><section identifier="/us/state/tx/tac/t40/p20/c801/scA/s801.1"><num value="801.1">§801.1</num><heading>Requirements for Formation of Local Workforce Development Boards</heading><content>(a) Purpose of Rule.(1) Upon application by the chief elected officials (CEOs) and approval of the Commission, the Commission shall forward an application to form a Local Workforce Development Board (Board) to the Governor.(2) Before an application may be submitted to the Governor, all requirements of this section shall be met.(b) State Law. The formation of Boards is governed by Texas Government Code Chapter 2308.(c) Chief Elected Official Agreement. Creation of a Board requires agreement by at least three-fourths of the CEOs in the local workforce development area (workforce area) who represent units of general local government, including all of the CEOs who represent units of general local government having populations of at least 200,000. The elected officials agreeing to the creation of the Board shall represent at least 75 percent of the population of the workforce area.(d) Chief Elected Officials. The CEOs may, and are encouraged to, consult with local officials other than the ones delineated below. The following officials are designated as the CEOs for the purpose of establishing agreements to form Boards:(1) Mayors.(A) The mayor of each city with a population of at least 100,000;(B) or, if there is no city with a population of greater than 100,000, the mayor of each city with a population greater than 50,000;(C) or, if there are no cities with a population of greater than 50,000, the mayor of the largest city in the workforce area.(D) For purposes of this section, municipal population will be determined by the figure last reported by the Texas Demographic Center at the time of submission of the application to the Commission.(2) All county judges included in a workforce area as designated by the Governor.(e) Time of Application. CEOs in a workforce area may not establish a Board until the Governor has designated that area as a workforce area as provided in Texas Government Code Chapter 2308.(f) Applications shall meet all Governor-approved criteria for the establishment of Boards.(g) Procedures for Formation of a Board. The CEOs shall comply with the following procedures to form a Board.(1) Public process procedure. If three-fourths of the CEOs, as defined in subsection (d) of this section, agree to initiate procedures to establish a Board, they shall conduct a public process, including at least one public meeting, to consider the views of all affected organizations before making a final decision to form a Board. This public process may include, but is not limited to, notices published in various media and surveys for public comment.(2) Application procedure.(A) The CEOs shall submit an application to the Commission. This application shall include evidence of the actions required by paragraph (1) of this subsection. As a part of the application, each CEO who is in agreement regarding the formation of a Board, shall execute the following documents:(i) An interlocal agreement delineating:(I) the purpose of the agreement;(II) the process that will be used to select the CEO who will act on behalf of the other CEOs and the name of such CEO if the person has been selected;(III) the procedure that will be followed to keep those CEOs informed regarding Board activities;(IV) the initial size of the Board;(V) how resources allocated to the workforce area will be shared among the parties to the agreement;(VI) the process to be used to appoint the Board members, which shall be consistent with applicable federal and state laws; and(VII) the terms of office of the members of the Board.(ii) An acknowledgment in the following form: We, the chief elected officials of the Workforce Development Area, acknowledge that the following are responsibilities and requirements pursuant to the formation of the Board:(I) The Board will assume the responsibilities for the following committees and councils that will be replaced by the Board unless otherwise provided in Texas Government Code Chapter 2308: private industry council, quality workforce planning committee, job service employer committee, and local general vocational program advisory committee;(II) At least one Workforce Solutions Office shall be established within 180 days of Board certification;(III) The Board shall have its own independent staff and not be a provider of workforce services, unless the Board secures a waiver of these provisions;(IV) The CEOs shall enter into a partnership agreement with the Board to designate a grant recipient to receive, be accountable for, and be liable for any misuse of block grant funds;(V) The partnership agreement shall also specify the entity that will administer the programs, which may be separate from the entity that receives the funds from the state;(VI) The partnership agreement shall define the process through which the Boards and CEOs will develop the strategic and operational plans, including the training plan required under the Workforce Innovation and Opportunity Act; and(VII) The strategic plan shall be reviewed by both the Commission and the Texas Workforce Investment Council and approved by the Governor before block grants will be available to the workforce area.(B) The application shall include evidence that any affected existing Board has been notified and agrees that its functions and responsibilities will be assumed by the proposed Board upon the proposed Board's final certification by the Governor.(C) The application shall include the names and affiliations of individuals recommended for Board membership, with documentation that CEOs followed the nomination process specified in applicable state and federal law, including Texas Government Code §2308.255 and §2308.256.(i) Private sector members shall be owners of business concerns, chief executives, chief operating officers of nongovernmental employers, or other private sector executives who have substantial management or policy responsibility. To be eligible to represent the private sector, at least 51 percent of an individual's annual income shall be from private sector sources.(ii) Private sector membership should represent the composition of the local pool of employers. The private sector membership should include representatives of the region's larger employers and emerging growth industries. Primary consideration should be given to private sector employers who do not directly provide employment and workforce training services to the general public. CEOs shall develop a profile of the workforce area's major industries using locally obtained information and state-published data. The Agency shall provide relevant labor market information, including data that identifies employment trends, emerging high-growth, high-demand industries, the size of local employers, and other data needed to assist CEOs in developing the employer profile. Documentation submitted with the application shall show how the regional employer profile is reflected in the Board membership.(iii) Board membership shall include representatives of local organized labor organizations, community-based organizations, educational agencies, vocational rehabilitation agencies, public assistance agencies, economic development agencies, the public employment service, local literacy councils, adult basic and continuing education organizations, and the child care workforce as required by law.(iv) Representatives of local organized labor organizations shall be nominated by local labor federations unless no employees in the workforce area are represented by such organizations, in which case nominations may be made by other representatives of employees. A labor federation is defined as an alliance of two or more organized labor unions for the purpose of mutual support and action.(v) Board nominees shall be actively engaged in the organization, enterprise, or field that they are nominated to represent. Board nominees shall have an existing relationship with the workforce area through residence or employment within the workforce area.(vi) At least one of the members of a Board appointed under Texas Government Code §2308.256(a) shall, in addition to the qualifications required for the members under that subsection:(I) be a veteran as defined in Texas Government Code §2308.251(2); and(II) have an understanding of the needs of the local veterans' population and willingness to represent the interests and concerns of veterans in the workforce area.(D) No individual member shall be a representative of more than one sector or category described in this section, except as statutorily permitted for one or more members having the qualifications set forth in subparagraph (C)(vi) of this paragraph.(E) The application shall include documentary evidence substantiating compliance with the application procedure, including but not limited to, written agreements, minutes of public meetings, copies of correspondence, and such other documentation as may be appropriate.</content><note type="source"><p>Source Note: The provisions of this §801.1 adopted to be effective January 31, 1996, 21 TexReg 520; amended to be effective November 2, 2000, 25 TexReg 10756; amended to be effective November 21, 2001, 26 TexReg 9414; amended to be effective October 18, 2006, 31 TexReg 8563; amended to be effective February 7, 2011, 36 TexReg 599; amended to be effective November 28, 2022, 47 TexReg 7912; amended to be effective April 21, 2024, 49 TexReg 2549.</p></note></section><section identifier="/us/state/tx/tac/t40/p20/c801/scA/s801.11"><num value="801.11">§801.11</num><heading>Board Member Nomination and Appointment</heading><content>(a) For each Board member nomination, the nominating organization shall submit to the CEOs of the workforce area a completed Board Nomination Slate in a form established by the Commission.(b) Documentation in the form of a curriculum vitae, resume, or work history supporting the qualifications of the nomination shall accompany the Board Nomination Slate.(c) Once nominations are submitted to and appointments are made by the CEOs, the Board Appointments form, in a format established by the Commission, and documentation shall be submitted to the Agency's Workforce Development Division. Only nominations submitted by the CEOs may be accepted by the Commission. The documentation submitted by the CEOs shall include the following:(1) Board Nomination Slate for each appointment; and(2) Board Appointments form, indicating the official beginning and expiration dates of all appointments.(d) Individuals shall be recommended for Board membership in accordance with §801.1(g)(2)(C) of this subchapter.(e) Board reappointments shall be processed under the provisions of this chapter.</content><note type="source"><p>Source Note: The provisions of this §801.11 adopted to be effective November 2, 2000, 25 TexReg 10756; amended to be effective October 18, 2006, 31 TexReg 8563.</p></note></section><section identifier="/us/state/tx/tac/t40/p20/c801/scA/s801.12"><num value="801.12">§801.12</num><heading>Board Member Vacancies</heading><content>(a) If a Board member vacancy occurs due to resignation, termination, or any other reason, the Board Chair shall provide notice to the CEOs of the workforce area and to the Commission within 20 calendar days of such event. Such notice shall include:(1) the name of the Board member;(2) the category represented; and(3) the effective date of resignation, termination or other event causing the vacancy.(b) The original resignation letter or documentation of other official action must be maintained at the local Board level.(c) The CEOs shall fill a vacancy in a required category, in the same manner as the original appointment, within 90 calendar days from the effective date of the resignation, termination, or other event causing a vacancy. During the 90-day period, the Board will be able to act as a body and conduct business. Any action taken by the Board, with a vacancy in a required category, beyond such 90-day period shall be void.(d) If the CEOs fail to fill a vacancy in a required category within 90 calendar days of the effective date of the vacancy, and remain in noncompliance with this section beyond that time, the Commission may impose sanctions under Chapter 800, including the withholding of administrative funds from the Board until compliance is achieved. The Commission may recommend that the Governor decertify the Board.</content><note type="source"><p>Source Note: The provisions of this §801.12 adopted to be effective November 2, 2000, 25 TexReg 10756.</p></note></section><section identifier="/us/state/tx/tac/t40/p20/c801/scA/s801.16"><num value="801.16">§801.16</num><heading>Partnership Agreement</heading><content>(a) The CEOs in a workforce area shall enter into a Partnership Agreement with the Board as required by Texas Government Code §2308.253(g) and by §801.1(g)(2)(A)(i)(I) - (VII) of this subchapter.(b) The Partnership Agreement shall be signed by the current CEOs and the Board Chair.(c) Any amendment to a Partnership Agreement, change to a Board's organizational plan or bylaws, or notice of an election of a new CEO or Board Chair shall be submitted to the Agency within 15 calendar days of the adoption of such amendment, change, or election.(d) If a CEO or Board Chair is newly elected during the then-current, two-year program planning cycle, such newly elected individual shall submit to the Agency a written statement acknowledging that he or she:(1) has read, understands, and will comply with the current Partnership Agreement; and(2) reserves the option to request negotiations to amend the Partnership Agreement at any time during the official's tenure as CEO or Board Chair.(e) All Partnership Agreements and Board organizational plans or bylaws shall state that Board members will not be permitted to delegate any Board duties to proxies or alternates.</content><note type="source"><p>Source Note: The provisions of this §801.16 adopted to be effective November 2, 2000, 25 TexReg 10756; amended to be effective October 18, 2006, 31 TexReg 8563; amended to be effective February 7, 2011, 36 TexReg 599.</p></note></section><section identifier="/us/state/tx/tac/t40/p20/c801/scA/s801.17"><num value="801.17">§801.17</num><heading>Board Training and Services Plans, Modifications, and Amendments</heading><content>(a) Purpose of Rule.(1) All workforce training and services plans and budgets developed by a Board pursuant to state and federal law shall be submitted to the Agency's Workforce Development Division for review.(2) Before a plan and budget is forwarded by the Commission to TWIC for recommendation to the Governor for approval, all requirements of this section shall be met.(b) Standards for Submission. The Agency shall provide guidelines for strategic planning and budgeting to Boards. A local workforce training and services plan and budget shall be reviewed according to criteria established by the Agency.(c) Plan Modification or Amendment. An approved plan and budget may be changed by either modification or amendment. Either method of change shall be submitted to the Agency for review before implementation.(1) A modification is a substantial revision of a plan and budget. The Agency shall provide criteria to Boards that define what constitutes a substantial revision. Each modification shall provide evidence that a majority of the CEOs of a workforce area or their designee or designees with signatory authority have approved the modification.(2) An amendment is a minor adjustment to a plan and budget. The Agency shall provide criteria to Boards that define what constitutes a minor adjustment. An amendment does not require approval by a majority of the CEOs of a workforce area.</content><note type="source"><p>Source Note: The provisions of this §801.17 adopted to be effective November 2, 2000, 25 TexReg 10756; amended to be effective October 18, 2006, 31 TexReg 8563.</p></note></section></subchapter><subchapter identifier="/us/state/tx/tac/t40/p20/c801/scB"><num value="B">SUBCHAPTER B</num><heading>ONE-STOP SERVICE DELIVERY NETWORK</heading><section identifier="/us/state/tx/tac/t40/p20/c801/scB/s801.21"><num value="801.21">§801.21</num><heading>Scope and Purpose</heading><content>(a) The purpose of this subchapter is to set forth the rules relating to the One-Stop Service Delivery System as set forth in Texas Government Code, Chapter 2308; Texas Labor Code, Chapters 301 and 302; and Workforce Innovation and Opportunity Act §121 (29 United States Code Annotated §3101). It is the intent of the Commission, in partnership with Local Workforce Development Boards, to facilitate the development and maintenance of the One-Stop Service Delivery System such that information and services responsive to individual needs are available to all customers. The One-Stop Service Delivery System shall be evaluated against established levels of certification as well as any additional standards developed by the Commission to ensure the continuous improvement of the system.(b) This subchapter shall apply, except that to the extent of any conflict, the provisions of Texas Government Code, Chapter 2308, and §802.21 of this title (relating to Board Contracting Guidelines) and §802.44 of this title (relating to Service Delivery Waiver Requests) shall govern.</content><note type="source"><p>Source Note: The provisions of this §801.21 adopted to be effective May 25, 2000, 25 TexReg 4591; amended to be effective October 18, 2006, 31 TexReg 8563; amended to be effective February 7, 2011, 36 TexReg 599; amended to be effective November 28, 2022, 47 TexReg 7912.</p></note></section><section identifier="/us/state/tx/tac/t40/p20/c801/scB/s801.22"><num value="801.22">§801.22</num><heading>Requirement to Maintain a One-Stop Service Delivery System</heading><content>Each Board shall maintain a One-Stop Service Delivery System, consistent with the Workforce Innovation and Opportunity Act, state law, and this subchapter. The One-Stop Service Delivery System shall include at least one Comprehensive Center in each local workforce development area as set out in §801.24(b) of this subchapter.</content><note type="source"><p>Source Note: The provisions of this §801.22 adopted to be effective May 25, 2000, 25 TexReg 4591; amended to be effective October 18, 2006, 31 TexReg 8563; amended to be effective February 7, 2011, 36 TexReg 599; amended to be effective November 28, 2022, 47 TexReg 7912.</p></note></section><section identifier="/us/state/tx/tac/t40/p20/c801/scB/s801.23"><num value="801.23">§801.23</num><heading>Definitions</heading><content>In addition to the definitions contained in §800.2 of this title (relating to Definitions), the following words or terms shall have the following meanings, unless the context clearly indicates otherwise.(1) Access--Access to services shall mean one or more of the following:(A) Having a program staff member physically present at the Workforce Solutions Office;(B) Having a staff member from a different program physically present at the Workforce Solutions Office, and who is appropriately trained to provide information to customers about the services available through partner program(s); or(C) Making available a direct linkage through technology to program staff who can provide meaningful information or services.(2) Direct linkage--A direct connection at a Workforce Solutions Office, within a reasonable time, by phone or through a real-time web-based communication, to a program staff member who can provide program information or services to customers. Providing a phone number or computer website or providing information, pamphlets, or materials without connection to a staff member shall not be considered a direct linkage.(3) Eligible Foster Youth--An eligible foster youth is a:(A) Current Foster Youth--A youth, age 14 or older, who is receiving substitute care services under the managing conservatorship of the Texas Department of Family and Protective Services (DFPS). This includes youth residing in private foster homes, group homes, residential treatment centers, juvenile correctional institutions, and relative care; or(B) Former Foster Youth--A youth up to 23 years of age, who formerly was under the managing conservatorship of DFPS, until:(i) a court transferred the conservatorship;(ii) the youth was legally emancipated (i.e., the youth's minority status was removed by a court); or(iii) the youth attained 18 years of age.(4) Eligible Veteran--An eligible veteran is one of the following:(A) Federal/state qualified veteran--An individual who served in the active military, naval, air, or space service, and who was discharged or released from such service under conditions other than dishonorable as specified at 38 United States Code (USC) §101(2). Active service includes full-time duty in the National Guard or a Reserve component, other than full time for training purposes.(B) Federal qualified spouse--The spouse of one of the following:(i) Any veteran who died of a service-connected disability.(ii) Any member of the Armed Forces serving on active duty who, at the time of application for assistance under this section, is listed, pursuant to 37 USC §556 and regulations issued thereunder, by the Secretary concerned in one or more of the following categories and has been so listed for a total of more than 90 days:(I) Missing in action;(II) Captured in line of duty by a hostile force; or(III) Forcibly detained or interned in line of duty by a foreign government or power.(iii) Any veteran who has a total disability resulting from a service-connected disability as evaluated by the United States Department of Veterans Affairs.(iv) Any veteran who died while a disability, as defined in clause (iii) of this subparagraph, was in existence.(C) State qualified spouse:(i) A spouse who meets the definition of federal qualified spouse; or(ii) A spouse of any member of the armed forces who died while serving on active military, naval, or air service.(5) Workforce Solutions Office--A physical location that provides one or more services, as set out in §801.25 of this subchapter, to aid employers and job seekers. The two types of local Workforce Solutions Offices are:(A) Comprehensive Center--A Workforce Solutions Office that provides access to all programs and services as set out in §801.26 and §801.28 of this subchapter, access to required partners as set out in §801.27(b) of this subchapter, and access to any local optional partners as set out in §801.27(c) of this subchapter. Also referred to as a Career Development Center in Texas Government Code, §2308.312.(B) Affiliate Site--A Workforce Solutions Office that provides access to one or more services, as set out in §801.28 of this subchapter, or access to one or more local partners, as set out in §801.27 of this subchapter, where the Board is responsible for oversight and management of the office, or operation of these offices adds a cost to the Board's operational budget.</content><note type="source"><p>Source Note: The provisions of this §801.23 adopted to be effective May 25, 2000, 25 TexReg 4591; amended to be effective October 18, 2006, 31 TexReg 8563; amended to be effective December 28, 2009, 34 TexReg 9486; amended to be effective February 7, 2011, 36 TexReg 599; amended to be effective November 28, 2022, 47 TexReg 7912.</p></note></section><section identifier="/us/state/tx/tac/t40/p20/c801/scB/s801.24"><num value="801.24">§801.24</num><heading>Workforce Solutions Office Certification</heading><content>(a) All offices providing workforce services shall be classified as Workforce Solutions Offices.(b) Local Workforce Development Boards (Boards) shall ensure that at least one Workforce Solutions Office in the local workforce development area is a Comprehensive Center.(c) As directed by the Commission, Boards shall provide certification to the Agency for every Comprehensive Center and Affiliate Site.(d) Boards shall notify the Agency when a change occurs of the requirements set forth in subsections (b) and (c) of this section.(e) The Agency shall verify compliance with the requirements set forth in subsections (b) and (c) of this section through:(1) issuance of Agency guidance;(2) assurances set forth in Agency-Board agreements;(3) annual monitoring reviews; and(4) other means as identified by the Agency.</content><note type="source"><p>Source Note: The provisions of this §801.24 adopted to be effective May 25, 2000, 25 TexReg 4591; amended to be effective October 18, 2006, 31 TexReg 8563; amended to be effective February 7, 2011, 36 TexReg 599; amended to be effective November 28, 2022, 47 TexReg 7912.</p></note></section><section identifier="/us/state/tx/tac/t40/p20/c801/scB/s801.25"><num value="801.25">§801.25</num><heading>Minimum Standards for Comprehensive Workforce Solutions Offices</heading><content>(a) Boards shall ensure that each Comprehensive Center:(1) provides basic labor exchange services, including access to job orders for applicants, access to applicants for employers, and screening and referral methods for matching qualified applicants and job orders;(2) provides services, as set forth in §801.28(a) of this subchapter, of each program specified by §801.27(a) and (b) of this subchapter, and access to programs specified by §801.27(c) of this subchapter, as applicable, during Workforce Solutions Offices' operating hours;(3) provides access to information and services available in the local workforce development area;(4) provides access to digital skill building, device access, and digital support for individuals through workforce development programs;(5) provides access to financial literacy assistance to individuals enrolled in a workforce development program; and(6) addresses the individual needs of employers and job seekers.(b) Boards shall ensure that each Comprehensive Center, as set forth in Texas Government Code, Chapter 2308, includes access to:(1) labor market information, including:(A) available job openings; and(B) education and training opportunities;(2) uniform eligibility requirements and application procedures for all workforce training and services;(3) assistance to unemployment insurance claimants;(4) independent assessment of individual needs and the development of an employment plan;(5) centralized and continuous case management and counseling;(6) individual referral for services, including basic education, classroom skills training, on-the-job training, and customized training;(7) support services, including child care assistance, student loan assistance, and other forms of financial assistance required to participate in and complete training; and(8) job training and employment assistance for persons formerly sentenced to the Texas Department of Criminal Justice's institutional division or state jail division.(c) Boards shall ensure that each Comprehensive Center complies with the following Commission-established standards:(1) Provides customer access to WorkInTexas.com; résumé preparation tools, including software; and Internet access;(2) Ensures eligible foster youth are given access to workforce services to help meet their employment, education, and training needs to transition to independent living, as set forth in Texas Family Code, §264.121(2) and (3);(3) Provides each customer with information on local in-demand industries and occupations, including projected wage level upon completion of training programs, and performance of training providers when requested;(4) Ensures that Workforce Solutions Offices' staff is trained and knowledgeable in order to provide services to employers and job seekers;(5) Demonstrates on-site management of all personnel, a plan for cross-training staff in all services, minimal programmatic specialization of staff, removal of redundancies within program activities, and maximum flexibility to optimize use of resources;(6) Designs a customer-friendly waiting area and implements written procedures that define the steps taken to minimize customer wait time in the reception area and in other areas of Workforce Solutions Offices; and(7) Provides consumer information on the quality of education and training providers and includes a mechanism for customer feedback on personal experience with such providers.(d) Boards must ensure that, if a Comprehensive Center does not provide all services and programs on-site as specified in subsections (a) and (b) of this section, access to such services is provided by direct linkage.(e) Boards must ensure that only Workforce Solutions Office partners, such as Adult Education and Literacy programs, provide developmental services, such as General Educational Development, English as a Second Language, or basic education skills.</content><note type="source"><p>Source Note: The provisions of this §801.25 adopted to be effective May 25, 2000, 25 TexReg 4591; amended to be effective October 18, 2006, 31 TexReg 8563; amended to be effective February 7, 2011, 36 TexReg 599; amended to be effective November 28, 2022, 47 TexReg 7912.</p></note></section><section identifier="/us/state/tx/tac/t40/p20/c801/scB/s801.26"><num value="801.26">§801.26</num><heading>Memorandum of Understanding</heading><content>(a) In accordance with Workforce Innovation and Opportunity Act, §121, each Board shall develop and maintain a memorandum of understanding (MOU) with statutorily required Workforce Solutions Office partners, as specified in §801.27(b) of this subchapter, and any locally approved Workforce Solutions Office partners, as specified in §801.27(c) of this subchapter, related to the operation of the One-Stop Service Delivery System in the local workforce development area.(b) A Board may develop a single MOU with all workforce partners or a separate MOU with each workforce partner or group of partners. Each Board shall obtain a general authorization from the chief elected officials for actions taken under this subsection.(c) The Agency shall provide Boards with guidance on the minimum provisions required by each MOU.(d) Except where indicated otherwise, a Board shall not be required to develop an MOU for any Board- or Agency-administered programs specified in §801.27(a) of this subchapter.</content><note type="source"><p>Source Note: The provisions of this §801.26 adopted to be effective November 28, 2022, 47 TexReg 7912.</p></note></section><section identifier="/us/state/tx/tac/t40/p20/c801/scB/s801.27"><num value="801.27">§801.27</num><heading>Workforce Solutions Office Programs and Partners</heading><content>(a) The following Workforce Solutions Office Programs are Board-administered or under Agency purview:(1) Adult program, authorized under Workforce Innovation and Opportunity Act (WIOA), Title I;(2) Dislocated Worker program, authorized under WIOA, Title I;(3) Youth programs, authorized under WIOA, Title I;(4) Supplemental Nutrition Assistance Program Employment and Training, authorized under the Food and Nutrition Act of 2008 (7 United States Code (USC) §2015(d)(4) et seq.);(5) Choices, the Temporary Assistance for Needy Families Employment and Training program, authorized under the Social Security Act, Title IV, Part A (42 USC §601 et seq.);(6) Subsidized Child Care programs, identified by Chapter 809 of this title (relating to Child Care Services);(7) Employment Service program, authorized under the Wagner-Peyser Act (29 USC §49 et seq.), as amended by WIOA, Title III;(8) Trade Adjustment Assistance, authorized under Title II, Chapter 2 of the Trade Act of 1974 (19 USC §2271, et seq.);(9) Adult Education and Family Literacy Act program, authorized under WIOA, Title II, when the Board is the grantee;(10) Vocational Rehabilitation (VR) services, authorized under Title I of the Rehabilitation Act of 1973 (29 USC §720 et seq.), as amended by WIOA, Title IV. Boards are required to enter a memorandum of understanding for VR services in accordance with §801.26 of this subchapter;(11) Unemployment Insurance Benefits programs, authorized under state unemployment compensation law, including the Reemployment Services and Eligibility Assessment program, authorized under Title III of the Social Security Act (42 USC §506 et seq.);(12) Migrant and Seasonal Farmworker employment services, under the National Farmworker Jobs Program, authorized under WIOA, Title I; and(13) National Dislocated Worker Grant program, authorized under WIOA, Title I.(b) Required Workforce Solutions Office partners are the entities that administer the following programs in the local workforce development areas:(1) Jobs for Veterans State Grant program, as authorized under the Job Counseling, Training, and Placement Services for Veterans (38 USC §41 et seq.), and administered by the Texas Veterans Commission;(2) Adult Education and Family Literacy Act program, authorized under WIOA, Title II;(3) Senior Community Service Employment Program, authorized under Title V of the Older Americans Act of 1965 (42 USC §3056 et seq.);(4) Apprenticeship Training Program certified by the United States Department of Labor's Office of Apprenticeship Training, and which meets state criteria established under Texas Education Code, Chapter 133;(5) career and technical education programs, authorized under the Carl D. Perkins Career and Technical Education Act of 2006 (20 USC §2301 et seq.);(6) employment and training activities carried out under Community Services Block Grant programs (42 USC §9901 et seq.);(7) employment and training activities provided through grantees of the United States Department of Housing and Urban Development;(8) education and vocational training programs through Job Corps, authorized under WIOA, Title I, and administered by the United States Department of Labor;(9) Native American programs, authorized under WIOA, Title I;(10) YouthBuild programs, authorized under WIOA, Title I; and(11) programs authorized under §212 of the Second Chance Act of 2007 (42 USC §17532 et seq.).(c) Other entities that provide services of benefit to workforce development may be optional partners in the One-Stop Service Delivery System if the Board and chief elected officials agree on each entity's participation. The entities include, but are not limited to, those that provide:(1) employment and training programs administered by the Social Security Administration, including the Ticket-to-Work and the Self-Sufficiency Program established under §1148 of the Social Security Act (42 USC §1320b-19 et seq.);(2) employment and training programs carried out by the Small Business Administration;(3) programs administered by OneStar Foundation, authorized under the National and Community Service Act of 1990 (42 USC §12401 et seq.); and(4) other appropriate federal, state, or local programs that may include employment, education, and training programs provided by public libraries or in the private sector.</content><note type="source"><p>Source Note: The provisions of this §801.27 adopted to be effective November 28, 2022, 47 TexReg 7912.</p></note></section><section identifier="/us/state/tx/tac/t40/p20/c801/scB/s801.28"><num value="801.28">§801.28</num><heading>Services Available Through the One-Stop Service Delivery System</heading><content>(a) Basic Career Services. All Workforce Solutions Offices shall provide access to basic career services, as defined in Workforce Innovation and Opportunity Act (WIOA), §134(c)(2) (29 United States Code, Annotated (USCA) §2864(c)(2)), including:(1) outreach;(2) intake, which may include reemployment services, and orientation to the information and services available through the One-Stop Service Delivery System;(3) determinations of individuals' eligibility for programs funded through the Commission that are available through the One-Stop Service Delivery System;(4) initial assessment of skill levels including literacy, numeracy, and English language proficiency, as well as aptitudes, abilities (including skills gaps), and support service needs;(5) job search and placement assistance and, where appropriate, career counseling;(6) provision of performance information and program cost information on eligible training provider services as described in §840.40 and §840.41 of this title (relating to Statewide ETPL and Distribution of the Statewide ETPL) provided by program, and eligible providers of youth activities described in WIOA, §123 (29 USCA §3153), providers of adult education described in WIOA, Title II, providers of postsecondary vocational education activities and vocational education activities available to school dropouts under the Strengthening Career and Technical Education for the 21st Century Act (20 USCA §2301 et seq.), and providers of vocational rehabilitation program activities described in Title I of the Rehabilitation Act of 1973 (29 USCA §701 et seq.);(7) provision of information regarding how the local workforce development area (workforce area) is performing on the local performance measures and any additional performance information with respect to the One-Stop Service Delivery System in the workforce area;(8) provision of information regarding filing unemployment insurance claims;(9) provision of employment statistics information, including the provision of accurate information relating to local, regional, and national labor market areas, including job vacancy listings in such labor market areas, information on job skills necessary to obtain the jobs listed, and information related to local in-demand jobs and the earnings and skill requirements for such jobs;(10) provision of accurate information relating to the availability of support services, including child care and transportation, available in the workforce area, and referral to such services, as appropriate; and(11) assistance in establishing eligibility for Choices, SNAP E&T, and financial aid assistance programs for training and education that are available in the workforce area.(b) Individualized Career Services. A One-Stop Service Delivery System shall provide access to individualized career services as described in WIOA, §134(d)(1) (29 USCA §3174(d)(1)), as appropriate, which may include the following:(1) comprehensive and specialized assessments of the skill levels and service needs of job seekers, such as diagnostic testing and use of other assessment tools, in-depth interviewing, and evaluation to identify employment barriers and employment goals;(2) development of an employment plan and service strategy to identify the employment goals, appropriate achievement objectives, and appropriate combination of services for the participant to achieve employment goals and objectives;(3) group counseling;(4) individual counseling and career planning;(5) centralized and continuous case management; and(6) short-term, work readiness services, including learning skills, communication skills, interviewing skills, punctuality, personal maintenance skills, and professional conduct to prepare individuals for unsubsidized employment or training.(c) Training Services. A One-Stop Service Delivery System shall provide access to training services as described in WIOA, §134(c)(3) (29 USCA §3174(c)(3)). Training services may include the following:(1) occupational skills training, including training for nontraditional employment;(2) on-the-job training;(3) incumbent worker training;(4) programs that combine workplace training with related instruction;(5) training programs operated by the private sector;(6) skills upgrading and retraining;(7) entrepreneurial training;(8) job readiness training provided in combination with services and activities described in paragraphs (1) - (7) of this subsection;(9) adult education and literacy activities provided concurrently or in combination with services and activities described in paragraphs (1) - (8) of this subsection; and(10) customized training conducted with a commitment by an employer or group of employers to employ an individual upon successful completion of training.(d) Follow-up Services. A One-Stop Service Delivery System shall offer follow-up services, including counseling regarding the workplace, for adult and dislocated worker participants exiting programs into unsubsidized employment, for up to 12 months after the first day of the employment, as appropriate. All youth participants must be offered follow-up services aligning with their individual service strategies, that shall be provided for not less than 12 months, unless such follow-up services are declined or the participant cannot be contacted.(e) Other Services and Activities. A One-Stop Service Delivery System shall offer access to all other permissible local employment and training activities included in the local workforce development plan, which may include discretionary one-stop activities, support services, needs-related payments, incumbent worker training, and transitional jobs, as set forth in WIOA, §134(d)(2) - (5) (29 USCA §3174(d)(2) - (5)).</content><note type="source"><p>Source Note: The provisions of this §801.28 adopted to be effective May 25, 2000, 25 TexReg 4591; amended to be effective October 18, 2006, 31 TexReg 8563; amended to be effective February 7, 2011, 36 TexReg 599; amended to be effective November 28, 2022, 47 TexReg 7912.</p></note></section><section identifier="/us/state/tx/tac/t40/p20/c801/scB/s801.29"><num value="801.29">§801.29</num><heading>Limitations on Delivery of Services</heading><content>Delivery of services under §801.28 of this subchapter, is subject to state law requirements on Board organization and service delivery structure as found in Texas Government Code, Chapter 2308, and this chapter, as well as eligibility requirements and limitations of individual programs.</content><note type="source"><p>Source Note: The provisions of this §801.29 adopted to be effective May 25, 2000, 25 TexReg 4591; amended to be effective October 18, 2006, 31 TexReg 8563; amended to be effective November 28, 2022, 47 TexReg 7913.</p></note></section><section identifier="/us/state/tx/tac/t40/p20/c801/scB/s801.31"><num value="801.31">§801.31</num><heading>Priority for Workforce Services</heading><content>(a) Boards shall ensure that eligible veterans, as defined in §801.23(2) of this subchapter, are identified at the initial point of entry into the workforce system and informed of the following:(1) Their right to priority of service;(2) The full array of employment, training, and placement services available under priority of service; and(3) Any applicable eligibility requirements for those programs and services.(b) Boards shall ensure that eligible foster youth, as defined in §801.23(1) of this subchapter, are informed of the following:(1) Their right to priority of service;(2) The full array of employment, training, and placement services available under priority of service; and(3) Any applicable eligibility requirements for those programs and services.(c) Boards shall ensure the following order of priority for workforce services is applied:(1) Eligible veterans receive priority over all other equally qualified individuals in the receipt of services funded in whole or in part by the U.S. Department of Labor, in accordance with 38 U.S.C. §4215--except state qualified spouses, who meet the criterion in §801.23(2)(C)(ii) of this subchapter.(2) Eligible veterans receive priority over all other equally qualified individuals in the receipt of services funded in whole or in part by state funds in accordance with Texas Labor Code §302.152.(3) Eligible foster youth receive priority over all other equally qualified individuals--except eligible veterans as defined in this subchapter--in the receipt of federal or state-funded services in accordance with Texas Family Code §264.121(3).</content><note type="source"><p>Source Note: The provisions of this §801.31 adopted to be effective October 18, 2006, 31 TexReg 8563; amended to be effective February 7, 2011, 36 TexReg 599.</p></note></section></subchapter></chapter><chapter identifier="/us/state/tx/tac/t40/p20/c802"><num value="802">CHAPTER 802</num><heading>INTEGRITY OF THE TEXAS WORKFORCE SYSTEM</heading><subchapter identifier="/us/state/tx/tac/t40/p20/c802/scA"><num value="A">SUBCHAPTER A</num><heading>PURPOSE AND GENERAL PROVISIONS</heading><section identifier="/us/state/tx/tac/t40/p20/c802/scA/s802.1"><num value="802.1">§802.1</num><heading>Purpose and General Provisions</heading><content>(a) The purpose of the rules contained in this subchapter is to implement Texas Government Code, §2308.264 and §2308.267, including provisions relating to directly delivering services, Local Workforce Development Board (Board) contracting guidelines, and other conflict of interest provisions, and to implement Texas Labor Code, Chapter 315, regarding Adult Education and Literacy (AEL) programs.(b) It is the intent of the Commission that these rules strengthen the confidence of the public in the Texas workforce system.(c) A Board may set local policies that are more restrictive than those set forth in this subchapter.(d) A Board shall develop the policies and procedures required by this subchapter.(e) A Board member with an existing contract for workforce services shall comply with this subchapter no later than the earliest of the following:(1) the expiration of the contract;(2) the contract renewal date; or(3) the expiration of the Board member's term or the Board member's resignation.(f) Pursuant to Texas Government Code, Chapter 551 (Open Meetings Act), a Board shall:(1) post appropriate notice;(2) ensure that all public business or public policy over which the Board has supervision or control is discussed, considered, or acted upon during a properly posted and convened open meeting; and(3) prepare and retain minutes or tape recordings of each open meeting of the Board. The minutes shall:(A) state the subject of each deliberation; and(B) indicate each vote, order, decision, or other action taken.</content><note type="source"><p>Source Note: The provisions of this §802.1 adopted to be effective February 7, 2011, 36 TexReg 604; amended to be effective February 24, 2014, 39 TexReg 1201.</p></note></section><section identifier="/us/state/tx/tac/t40/p20/c802/scA/s802.2"><num value="802.2">§802.2</num><heading>Definitions</heading><content>In addition to the definitions contained in §800.2 and §801.23 of this title, the following words or terms shall have the following meanings, unless the context clearly indicates otherwise.(1) Agency grantees--Grantees that receive funding from the Agency, such as Skills Development Fund, Wagner-Peyser 7(b), and Workforce Investment Act (WIA) statewide, to provide workforce services.(2) Appearance of a conflict of interest--A circumstance in which the action of a Board member, Board employee, workforce service provider, or workforce service provider employee in a decision-making position appears to be:(A) influenced by considerations of one or more of the following: gain to the person, entity, or organization for which the person has an employment interest, substantial financial interest, or other interest, whether direct or indirect (other than those consistent with the terms of the contract); or(B) motivated by design to gain improper influence over the Commission, the Agency, or the Board.(3) Board decision-making position--A position with a Board that has final decision-making authority or final recommendation authority on matters that directly affect workforce service providers. A Board decision-making position is one that performs the function of a Board's executive director, deputy executive director, chief financial officer, lead contract manager, or lead contract monitor.(4) Conflict of interest--A circumstance in which a Board member, Board employee, workforce service provider, or workforce service provider's employee is in a decision-making position and has a direct or indirect interest, particularly a substantial financial interest, that influences the individual's ability to perform job duties and fulfill responsibilities.(5) Corrective Action Plan--A plan developed and imposed by the Agency that requires a Board or Agency grantee to take Agency-identified actions within a specified time frame designed to correct specific instances of noncompliance or other failures.(6) Hearing--An informal, orderly, and readily available proceeding held before an impartial hearing officer at which a party or hearing representative may present evidence to show that the Agency's determination of sanctions shall be reversed, affirmed, or modified.(7) Hearing officer--An Agency employee designated to conduct hearings and issue proposals for decision.(8) Hearing representative--Any individual authorized by a party to assist the party in presenting the party's appeal. A hearing representative may be legal counsel or another individual. Each party may have a hearing representative to assist in presenting the party's appeal.(9) Level-one sanction--A sanction imposed by the Agency on a Board or Agency grantee for significant inability or failure to perform as required by the Agency, including performing or failing to perform due to a sanctionable act as described in this subchapter. A level-one sanction may be associated with the imposition of one or more penalties as referenced in this chapter.(10) Level-two sanction--A higher sanction than level one imposed by the Agency on a Board or Agency grantee for severe inability or failure to perform as required by the Agency, including performing or failing to perform due to a sanctionable act as described in this chapter. A level-two sanction may be associated with the imposition of more severe penalties than those imposed on a Board or Agency grantee under a level-one sanction.(11) Level-three sanction--The highest sanction level imposed by the Agency on a Board or Agency grantee for extreme inability or failure to perform as required by the Agency, including performing or failing to perform due to a sanctionable act as described in this chapter. A level-three sanction may be associated with the imposition of the most severe penalties imposed on the Board or Agency grantee.(12) Particular matter--A specific investigation, application, request for a ruling or determination, rulemaking proceeding, administrative proceeding, contract, claim, or judicial proceeding, or any other proceeding as defined in Texas Government Code §572.054(h)(2).(13) Party--The person or entity with the right to participate in a hearing authorized by applicable statute or rule.(14) Substantial financial interest--An interest in a business entity in which a person:(A) owns 10 percent or more of the stock, shares, fair market value, or other interest in the business entity;(B) owns more than $5,000 of the fair market value of the business entity;(C) owns real property if the interest is an equitable or legal ownership with a fair market value of $2,500 or more used for the business entity;(D) receives funds from the business entity that exceed 10 percent of the person's gross income for the previous year;(E) is a compensated member of the board of directors or other governing board of the business entity;(F) serves as an elected officer of the business entity; or(G) is related to a person in the first degree by consanguinity or affinity, as determined under Texas Government Code, Chapter 573, who has a substantial financial interest in the business entity, as listed in subparagraphs (A) through (F) of this section. First degree of consanguinity or affinity means the person's parent, child, adopted child, or spouse.(15) Workforce service provider--An entity or individual under contract with a Board to operate:(A) one or more Workforce Solutions Offices; or(B) one or more programs (e.g., child care) or components of one or more programs (e.g., issuing checks for youth participating in summer employment or performing child care billing).(16) Workforce service provider employee in a decision-making position--A position with a workforce service provider that includes the ability to commit or bind the provider to a particular course of action with respect to carrying out the provider's duties and activities under the contract.</content><note type="source"><p>Source Note: The provisions of this §802.2 adopted to be effective February 7, 2011, 36 TexReg 604.</p></note></section></subchapter><subchapter identifier="/us/state/tx/tac/t40/p20/c802/scB"><num value="B">SUBCHAPTER B</num><heading>CONTRACTING</heading><section identifier="/us/state/tx/tac/t40/p20/c802/scB/s802.21"><num value="802.21">§802.21</num><heading>Board Contracting Guidelines</heading><content>(a) Fiscal Integrity Provisions.(1) A Board shall develop fiscal integrity evaluation indicators designed to appraise the fiscal integrity of its workforce service providers.(2) A Board shall assess its workforce service providers to ensure the providers meet the requirements of the Board's fiscal integrity evaluation based on the following schedule:(A) contracts under $100,000--the fiscal indicators must be verified prior to the award of the contract and at each renewal of the contract;(B) contracts between $100,000 and $500,000--the fiscal indicators must be verified prior to the award of the contract, at each renewal of the contract, and not less than biennially; and(C) contracts over $500,000--the fiscal indicators must be verified prior to the award of the contract, at each renewal of the contract, and not less than once annually.(3) The fiscal integrity evaluation shall include the following provisions for ensuring that workforce service providers are meeting performance measures in compliance with requirements contained in:(A) federal and state statutes and regulations and directives of the Commission or Agency;(B) Office of Management and Budget (OMB) circulars applicable to the entity, such as OMB Circulars A-21, A-87, or A-122, and the Office of the Governor's Uniform Grant Management Standards; and(C) any other safeguards a Board has identified that are designed to ensure the proper and effective use of funds placed under the control of its workforce service providers.(4) The fiscal integrity evaluation shall also include the review and consideration of the prospective or renewing workforce service provider's prior three-year financial history before the Board awards or renews a workforce service contract. The review shall include any adverse judgments or findings, such as administrative audit findings; Commission, Agency, or Board monitor findings; or sanctions by a Board or court of law.(5) The fiscal integrity evaluation may include provisions such as accounting for program income in accordance with federal regulations, resolving questioned costs and the repayment of disallowed costs in a timely manner, and safeguarding fixed assets, as well as those referenced in the Agency's Financial Manual for Grants and Contracts.(b) Bonding, Insurance, and Other Methods of Securing Funds to Cover Losses.(1) A Board shall ensure that at least 10 percent of the funds subject to the control of the workforce service providers is protected through bonds, insurance, escrow accounts, cash on deposit, or other methods to secure the funds consistent with this subchapter. A Board and its workforce service providers may, consistent with this section, use any method or combination of methods to meet this requirement. At the Board's discretion, the Board may pay for the bonding, insurance, or other protection methods or require its workforce service providers, to the extent allowable under state and federal law, to pay for such protection.(2) In conducting the fiscal integrity evaluation required in this section, a Board may determine that more than 10 percent of the funds subject to the control of its workforce service providers shall be secured through bonds, insurance, escrow accounts, or other methods consistent with this subchapter.(3) Escrow of funds may also be used to satisfy the requirements of this subsection provided that:(A) the funds placed in escrow require the signature of persons other than the persons with signatory authority for the Board's workforce service providers;(B) the funds do not lapse due to requirements for timely expenditure of funds; and(C) this provision does not conflict with any provision in contract, rule, or statute for the timely expenditure of funds.(4) If a bond is used, a Board shall ensure that the bond is executed by a corporate surety or sureties holding certificates of authority, authorized to do business in the state of Texas.(5) A Board shall ensure, based on the schedule referenced in subsection (a)(2) of this section, that each of its workforce service providers is required to verify that:(A) the insurance or bond policy is valid, premiums are paid to date, the company is authorized to provide the bonding or insurance, and the company is not in receivership, bankruptcy, or some other status that would jeopardize the ability to draw upon the policy;(B) the escrow account balances are at an appropriate level;(C) the method of securing the funds has not been withdrawn, drawn upon, obligated for another purpose, or is no longer valid for use as the method of security; and(D) other such protections as are applicable and relied upon by the Board are verified as in force.(6) A Board shall ensure that the workforce service providers are required to disclose any changes in and circumstances regarding the method of securing or protecting the funds under the workforce service providers' control.(c) Standards of Conduct. A Board shall ensure that the workforce service providers:(1) comply with federal and state statutes and regulations regarding standards of conduct and conflict of interest provisions including, but not limited to, the following:(A) 29 C.F.R. §97.36(b)(3), which includes requirements from the Uniform Administrative Requirements for Grants and Cooperative Agreements to State and Local Governments;(B) professional licensing requirements, when applicable; and(C) applicable OMB circular requirements and the Office of the Governor's Uniform Grant Management Standards.(2) avoid any conflict of interest or any appearance of a conflict of interest; and(3) refrain from using nonpublic information gained through a relationship with the Commission, an Agency employee, a Board, or a Board employee, to seek or obtain financial gains that would be a conflict of interest or the appearance of a conflict of interest.(d) Disclosures. A Board shall require its workforce service providers to disclose the following:(1) Matters Subject to Disclosure. A Board shall ensure that its workforce service providers promptly disclose in writing the following:(A) A substantial financial interest that the workforce service provider, or any of its workforce service provider employees in decision-making positions, have in a business entity that is a party to any business transaction with a Board member or Board employee who is in a Board decision-making position;(B) A gift greater than $50 in value given to a Board member or Board employee by a workforce service provider or its employees; and(C) the existence of any conflict of interest and any appearance of a conflict of interest, or the lack thereof.(2) Content of Disclosure. A Board shall ensure that its workforce service providers' written disclosures contain the following:(A) information describing the conflict of interest; and(B) information describing the appearance of a conflict of interest, and actions the workforce service provider and its employees will take in order to prevent any conflict of interest from occurring.(3) Frequency of Disclosure. A Board shall ensure that its workforce service providers disclose:(A) at least annually, and as frequently as necessary, any conflict of interest and any appearance of a conflict of interest;(B) within 10 days of giving a gift greater than $50 in value as referenced in this section; and(C) at least annually that no conflict of interest and no appearance of a conflict of interest exists.(4) Matters Not Subject to Disclosure. This provision does not apply to:(A) a financial transaction performed in the course of a contract with the Board; or(B) a transaction or benefit that is made available to the general public under the same terms and conditions.</content><note type="source"><p>Source Note: The provisions of this §802.21 adopted to be effective February 7, 2011, 36 TexReg 604.</p></note></section><section identifier="/us/state/tx/tac/t40/p20/c802/scB/s802.22"><num value="802.22">§802.22</num><heading>Board Contract Limits</heading><content>In procuring a new workforce service provider, Boards shall:(1) procure the workforce service provider for an initial period of at least one year, not to exceed two years, allowing for subsequent renewals during an option period following the conclusion of the initial procurement period;(2) ensure that the initial procurement and subsequent renewals do not exceed a maximum of five years total; and(3) in determining whether to renew a contract during the option period following the completion of the initial procurement period, consider the workforce service provider's performance, oversight of services, reasonableness of cost, and any other locally developed criteria.</content><note type="source"><p>Source Note: The provisions of this §802.22 adopted to be effective October 27, 2014, 39 TexReg 8413.</p></note></section></subchapter><subchapter identifier="/us/state/tx/tac/t40/p20/c802/scC"><num value="C">SUBCHAPTER C</num><heading>LOCAL WORKFORCE DEVELOPMENT BOARD RESTRICTIONS</heading><section identifier="/us/state/tx/tac/t40/p20/c802/scC/s802.41"><num value="802.41">§802.41</num><heading>Board Member Conflicts of Interest</heading><content>(a) Pursuant to WIA §117(g) (29 U.S.C.A. §2832(g)), this section sets forth the state's Board conflict of interest requirements for disclosure and declaration of a conflict of interest by a Board member.(b) A Board member may not vote on any matter that would provide direct financial benefit to the member or the member's immediate family, or on matters of the provision of services by the member or the entity the member represents. No Board member may participate in a decision in which the member has a direct or indirect interest, particularly a financial interest, which is in substantial conflict with the discharge of the duties of the Board.(c) A Board member shall avoid even the appearance of a conflict of interest. Prior to taking office, Board members must provide to the Board Chair a written declaration of all substantial business interests or relationships they, or their immediate families, have with all businesses or organizations that have received, currently receive, or are likely to receive contracts or funding from the Board. Such declarations shall be updated within 30 days to reflect any changes in such business interests or relationships. The Board shall appoint an individual to timely review the disclosure information and advise the Board Chair and appropriate members of potential conflicts.(d) Prior to a discussion, vote, or decision on any matter before a Board, if a member, or a person in the immediate family of such member, has a substantial interest in or relationship to a business entity, organization, or property that would be pecuniarily affected by any official Board action, that member shall disclose the nature and extent of the interest or relationship and shall abstain from voting on or in any other way participating in the decision on the matter. All such abstentions shall be recorded in the minutes of the Board meeting.(e) Each Board must include in its organizational plan or bylaws, or in a separate code of conduct, provisions for penalties, sanctions, or other disciplinary actions for any direct violations of the Board conflict of interest policy. The following definitions must be incorporated into those provisions.(1) Immediate family--Any person related within the first degree of affinity (marriage) or consanguinity (blood) to the person involved.(2) Substantial interest--A person has a substantial interest:(A) in a business entity if:(i) the person owns 10 percent or more of the voting stock or shares of the business, owns 10 percent or more, or owns $5,000 or more, of the fair market value of a business; or(ii) funds received by the person from the business exceed 10 percent of the person's gross income for the previous year;(B) in real property if the interest is an equitable or legal ownership with a fair market value of $2,500 or more; or(C) if the Board member is related to a person in the first degree of affinity or consanguinity who has a substantial interest as defined in subparagraph (A) or (B) of this paragraph.</content><note type="source"><p>Source Note: The provisions of this §802.41 adopted to be effective February 7, 2011, 36 TexReg 604.</p></note></section><section identifier="/us/state/tx/tac/t40/p20/c802/scC/s802.42"><num value="802.42">§802.42</num><heading>Employment of Former Board Employees by Workforce Service Providers</heading><content>(a) Post-Employment Restriction. In order to avoid a conflict of interest, a Board shall ensure that the Board's workforce service providers shall not employ or otherwise compensate a former Board employee who:(1) was in a Board decision-making position as defined in §802.2 of this chapter; and(2) was employed or compensated by the Board anytime during the previous 12 months.(b) Exceptions. Where there is no actual conflict of interest, but there is an appearance of such a conflict, a Board in an open meeting may provide for an exception to the period described in subsection (a) of this section by a vote of two-thirds of the membership present. In making such a determination, the Board shall assess all relevant factors, including, but not limited to, whether there is a critical need for the skills involved, the relative cost and availability of alternatives, and the need to protect the integrity and stability of the Texas workforce system. In such an instance, the Board shall impose whatever terms and conditions it deems necessary to mitigate the appearance of a conflict of interest.(c) Corrective Actions. A Board shall ensure that its contracts with workforce service providers require compliance with this section and provide effective enforcement mechanisms allowing it to impose corrective actions, up to and including contract termination, for violation of this section.(d) Particular Matter. A Board shall ensure that its workforce service providers shall not employ or otherwise compensate a former Board employee to work on a particular matter that the employee worked on for the Board, as defined in §802.2 of this chapter. Nothing in this section shall prohibit a Board's workforce service provider from employing or otherwise compensating a former employee of the Board who worked on a particular matter for the Board as long as the former Board employee never works on that same particular matter once employed or otherwise compensated by the Board's workforce service provider.</content><note type="source"><p>Source Note: The provisions of this §802.42 adopted to be effective February 7, 2011, 36 TexReg 604.</p></note></section><section identifier="/us/state/tx/tac/t40/p20/c802/scC/s802.43"><num value="802.43">§802.43</num><heading>Prohibition against Directly Delivering Services</heading><content>(a) A Board shall ensure, through the oversight and management of Board policies, that it does not directly deliver or determine eligibility for workforce services in its local workforce development area (workforce area) or contract with the following persons or entities to deliver or determine eligibility for workforce services:(1) A Board member;(2) A business, organization, or institution that a Board member represents on the Board;(3) A Board member's business, organization, or institution in which a Board member has a substantial financial interest; or(4) A Board employee.(b) The prohibitions in this section do not apply to public education agencies, such as community colleges and independent school districts, that have Board members who fulfill the requirements set forth in Texas Government Code §2308.256(a)(3)(A).(c) A Board may grant a one-year exception to the prohibitions described in subsection (a) of this section for a community-based organization that fulfills the requirements set forth in Texas Government Code §2308.256(a)(2). The exception can be granted only by a two-thirds vote of the members present in an open meeting and cannot be granted for contracts for the operation of Workforce Solutions Offices.(d) A Board shall ensure that the Board, its members, or its employees do not directly control the daily activities of its workforce service providers. The Agency shall review a Board's compliance through an examination of the Board's exercise of direction and control over its workforce service providers. The Agency may use the factors for testing the employment status as set out in §821.5 of this title.(e) Nothing in this section restricts a Board member or a Board member's organization from receiving Texas workforce system services and thereby being a customer of a Board's workforce service providers' services.</content><note type="source"><p>Source Note: The provisions of this §802.43 adopted to be effective February 7, 2011, 36 TexReg 604.</p></note></section><section identifier="/us/state/tx/tac/t40/p20/c802/scC/s802.44"><num value="802.44">§802.44</num><heading>Service Delivery Waiver Requests</heading><content>(a) Purpose of Rule. Texas Government Code §2308.264, §2308.267, and §2308.312 set forth prohibitions regarding service delivery, Board staffing, and developmental services. Only under circumstances that fit the criteria specified in those statutes will requests for waivers be granted.(b) Boards may submit a waiver request of the following provisions:(1) Independent Service Delivery. A Board is prohibited from directly providing workforce training and services, including operational functions normally associated with such services such as intake, eligibility determination, assessment, and referral, unless a waiver is obtained.(2) Separate Staffing. Board staff shall be employed separately and independently of any person who provides workforce training and services, as described in paragraph (1) of this subsection, unless the Board arranges for independent evaluation of any other workforce services provided by the staffing organization and obtains a waiver.(3) Developmental Services. A person who provides one-stop services at a Workforce Solutions Office shall not also provide developmental services unless a waiver is obtained.(c) Requesting a Waiver.(1) Waiver requests shall be submitted to the Commission and contain detailed justification as specified in the respective statutes. The Commission shall review and forward a recommendation to the Texas Workforce Investment Council (TWIC) for consideration. TWIC will forward its recommendation to the Governor for approval.(2) In recommending action on such requests, the Commission shall apply only the criteria specified in the respective statutes.(d) Duration of Waiver.(1) A waiver may be granted for a period less than, but not to exceed, the effective term of an approved plan and budget.(2) A waiver may be conditioned upon the Board's completion of steps taken to eliminate the need for a waiver.</content><note type="source"><p>Source Note: The provisions of this §802.44 adopted to be effective February 7, 2011, 36 TexReg 604.</p></note></section></subchapter><subchapter identifier="/us/state/tx/tac/t40/p20/c802/scD"><num value="D">SUBCHAPTER D</num><heading>AGENCY MONITORING ACTIVITIES</heading><section identifier="/us/state/tx/tac/t40/p20/c802/scD/s802.61"><num value="802.61">§802.61</num><heading>Purpose</heading><content>(a) The purpose of this subchapter is to set forth the Agency's monitoring provisions and respective responsibilities of Boards, workforce service providers, AEL grant recipients, AEL service providers, and Agency grantees.(b) The rules contained in this subchapter apply in addition to any program-specific rules to all programs administered by the Agency, except that to the extent of any conflict, the program-specific rules will govern.</content><note type="source"><p>Source Note: The provisions of this §802.61 adopted to be effective February 7, 2011, 36 TexReg 604; amended to be effective February 24, 2014, 39 TexReg 1201.</p></note></section><section identifier="/us/state/tx/tac/t40/p20/c802/scD/s802.62"><num value="802.62">§802.62</num><heading>Program and Fiscal Monitoring</heading><content>(a) Boards, workforce service providers, AEL grant recipients, AEL service providers, and Agency grantees shall cooperate with the Agency's program and fiscal monitoring activities, site visits, reviews of documentation, and requests for information. The Agency is committed to ensuring the accountability of Boards, workforce service providers, AEL grant recipients, AEL service providers, and Agency grantees. Therefore, monitoring activities have been developed to:(1) ensure programs achieve intended results;(2) ensure resources are efficiently and effectively used for authorized purposes and are protected from waste, fraud, and abuse; and(3) ensure reliable and timely information is captured and reported to serve as the basis to improve decision-making.(b) The Agency shall conduct comprehensive monitoring activities to assess the following for Boards, workforce service providers, AEL grant recipients, AEL service providers, and Agency grantees:(1) Progress in achieving program goals and maintaining fiscal accountability. Program and fiscal monitoring activities include site visits, desk reviews, and analyses of both financial and program outcomes to help identify potential weaknesses before such weaknesses result in substandard performance or questioned costs;(2) Compliance with applicable laws, regulations, provisions of contracts and Board plans, and official directives and circulars including, but not limited to, U.S. Department of Labor (DOL) Training and Employment Guidance Letters, DOL Training and Employment Notices, U.S. Department of Health and Human Services guidance letters, U.S. Department of Education, Office of Vocational and Adult Education guidance, Commission rules contained in Part 20 of this title (relating to the Texas Workforce Commission), Texas Workforce Commission Workforce Development (WD) Letters and AEL Letters, the Agency's Financial Manual for Grants and Contracts, and other Agency guidance; and(3) Compliance with the appropriate uniform administrative requirements for grants and agreements applicable to the type of entity receiving funds, as promulgated in the OMB circulars or rules. Monitoring activities shall encompass both financial and programmatic monitoring and shall be evaluated on a periodic basis. Monitoring reviews result in recommendations that provide practical solutions used to take immediate corrective action.(c) Boards, workforce service providers, AEL grant recipients, AEL service providers, and Agency grantees are subject to audit and review by the Agency. The Agency may audit and review all relevant records or a sample of the records as needed to determine Board, workforce service provider, AEL grant recipient, AEL service provider, and Agency grantee performance.(d) Failure to comply with this subchapter shall result in corrective action and possible sanctions pursuant to Subchapter G of this chapter (relating to Corrective Actions).</content><note type="source"><p>Source Note: The provisions of this §802.62 adopted to be effective February 7, 2011, 36 TexReg 604; amended to be effective February 24, 2014, 39 TexReg 1201.</p></note></section><section identifier="/us/state/tx/tac/t40/p20/c802/scD/s802.63"><num value="802.63">§802.63</num><heading>Program Monitoring Activities</heading><content>The Agency shall conduct program monitoring activities to ensure that programs achieve intended results. Processes and procedures used to determine Board, workforce service provider, AEL grant recipient, AEL service provider, and Agency grantee performance may include review and evaluation of one or more of the following:(1) Program results or outcomes(2) Performance measures(3) Reporting accuracy(4) Record keeping and file maintenance(5) Monitoring functions(6) Self-monitoring activities(7) Service delivery(8) Automated systems and reporting(9) Human resources(10) Policies and procedures</content><note type="source"><p>Source Note: The provisions of this §802.63 adopted to be effective February 7, 2011, 36 TexReg 604; amended to be effective February 24, 2014, 39 TexReg 1201.</p></note></section><section identifier="/us/state/tx/tac/t40/p20/c802/scD/s802.64"><num value="802.64">§802.64</num><heading>Fiscal Monitoring Activities</heading><content>(a) The Agency shall conduct fiscal monitoring activities to ensure that resources are efficiently and effectively used for authorized purposes and are protected from waste, fraud, and abuse. Processes and procedures used to determine Board, workforce service provider, AEL grant recipient, AEL service provider, and Agency grantee performance may include the review and evaluation of one or more of the following:(1) Accounting and reporting systems(2) Budget methodologies(3) Cash management practices(4) Cost allocation plans and processes(5) Cash disbursement compliance and documentation(6) Program income identification and reporting(7) Insurance coverage and risk exposure(8) Oversight and monitoring functions(9) Payroll administration(10) Purchasing and procurement processes and procedures(11) Property accountability and safeguarding(b) Processes and procedures used to determine Board, workforce service provider, AEL grant recipient, AEL service provider, and Agency grantee performance shall include a review, evaluation, and determination regarding compliance with the appropriate uniform administrative requirements for grants and agreements as well as the appropriate cost principles applicable for the type of entity receiving funds as listed in OMB circulars or rules.(c) Processes and procedures used to determine Board, workforce service provider, AEL grant recipient, AEL service provider, and Agency grantee performance shall include a review, evaluation, and determination regarding compliance with the applicable requirements regarding cost categories and cost limitations.</content><note type="source"><p>Source Note: The provisions of this §802.64 adopted to be effective February 7, 2011, 36 TexReg 604; amended to be effective February 24, 2014, 39 TexReg 1201.</p></note></section><section identifier="/us/state/tx/tac/t40/p20/c802/scD/s802.65"><num value="802.65">§802.65</num><heading>Agency Monitoring Reports and Resolution</heading><content>(a) Monitoring Report. The Agency's monitoring department shall issue a monitoring report summarizing the results of monitoring activities. The report shall include the observations, findings, questioned costs identified, and recommendations of the monitoring team to the Board, AEL grant recipient, or Agency grantees or contractors. If there are no administrative findings or questioned costs identified as a result of the monitoring review, a management letter will be issued. A monitoring report or management letter issued to a Board will be provided to the following:(1) Board chair(2) Board executive director(3) Designated representatives of the US Department of Health and Human Services(4) Designated representatives of the US Department of Labor(5) Texas Workforce Commissioners(6) Agency executive staff(b) Initial Resolution Notification. Based on the monitoring report, the Agency's audit resolution department shall issue an initial resolution notification, which notifies a Board, AEL grant recipient, or Agency grantee or contractor of administrative findings and questioned costs. The recipient of an initial resolution notification shall have 45 calendar days from the date the notification is mailed to respond.(1) Administrative Findings.(A) If the administrative findings set forth in the initial resolution notification are resolved, a closure letter is issued.(B) If the administrative findings set forth in the initial resolution notification are not resolved, the findings remain open and the Agency's audit resolution department continues to coordinate with the entity until the following year's audit to ensure follow-up.(2) Questioned Costs.(A) If the questioned costs set forth in the initial resolution notification are resolved, a closure letter is issued.(B) If the questioned costs set forth in the initial resolution notification are not resolved, an initial determination is issued.(3) Corrective Actions. The Agency may also impose corrective actions under Subchapter G of this chapter at any time during the resolution process.(c) Initial Determination. The Agency's audit resolution department shall issue an initial determination notifying a Board, AEL grant recipient, or Agency grantee or contractor of the following:(1) The unresolved questioned costs; and(2) The 60-day period, from issuance of the initial determination, to submit a response, including providing evidence or documentation of the appropriate actions taken.(d) Final Determination. If the questioned costs remain unresolved at the end of the 60-day period, the Agency's audit resolution department shall issue a final determination to notify a Board, AEL grant recipient, or Agency grantee or contractor of allowed or disallowed costs and to establish debts.(e) If the administrative findings or questioned costs remain unresolved, the Agency's Regulatory Integrity Division may request a sanction, as set forth in §802.125 of this chapter (relating to Sanction Determination).(f) Appeal Process(1) Only final determinations regarding questioned costs issued by the Agency may be appealed, pursuant to §802.142 of this chapter (relating to Appeal).(2) Failure by a Board, workforce service provider, AEL grant recipient, AEL service provider, or Agency grantee to timely request a hearing waives the right to a hearing. The final determination shall constitute final Agency action and is not subject to further review.(3) If an appeal is requested and approved, a hearing officer is designated and the collection of debt is pending until final decision of the hearing.</content><note type="source"><p>Source Note: The provisions of this §802.65 adopted to be effective February 7, 2011, 36 TexReg 604; amended to be effective February 24, 2014, 39 TexReg 1201; amended to be effective October 11, 2017, 42 TexReg 5524.</p></note></section><section identifier="/us/state/tx/tac/t40/p20/c802/scD/s802.66"><num value="802.66">§802.66</num><heading>Access to Records</heading><content>(a) Right of Access(1) Agency. All books, documents, papers, computer records, or other records prepared by Boards, workforce service providers, AEL grant recipients, AEL service providers, or Agency grantees that are pertinent to the use of any funds administered by the Agency are Agency property. Boards, workforce service providers, AEL grant recipients, AEL service providers, or Agency grantees in possession of such records shall be responsible for their secure and proper maintenance. The Agency or its authorized representatives have the right of timely and unrestricted access to any such records in order to conduct monitoring, audits, and examinations, and to make excerpts, transcripts, and photocopies of such documents.(2) Board, AEL grant recipient, or Agency grantee. A Board or its authorized representatives, AEL grant recipient or its authorized representative, and an Agency grantee or its executive leadership, have the right of timely and unrestricted access to any books, documents, papers, computer records, or other records of workforce service providers or AEL service providers, that are pertinent to the use of any funds administered by the Agency, in order to conduct monitoring, audits, and examinations; and to make excerpts, transcripts, and photocopies of such documents.(b) The right of access also includes timely and unrestricted access to Board, workforce service provider, AEL grant recipient, AEL service provider, and Agency grantee personnel for the purpose of interviews and discussions related to such documents.(c) The right of access is not limited to any required record retention period but shall last as long as the records are retained.(d) When a Board's or AEL grant recipient's relationship with the workforce service provider or AEL service provider is terminated, the Board's or AEL grant recipient's responsibility for maintenance and retention of records as well as the Agency's right to access does not end.(e) Custody of Records.(1) The Agency, Board, or AEL grant recipient may request custody of records if one determines that:(A) the records possess long-term retention value; or(B) the workforce service provider or AEL service provider is unable or unwilling to physically retain them.(2) The Agency may request custody of records from an Agency grantee if the Agency determines that:(A) the records possess long-term retention value; or(B) the Agency grantee is unable or unwilling to physically retain them.(f) To comply with single audit requirements:(1) the workforce service provider or AEL service provider shall retain the right of access to records in the custody of the Agency or the Board; and(2) the Agency grantee shall retain the right of access to records in the custody of the Agency.</content><note type="source"><p>Source Note: The provisions of this §802.66 adopted to be effective February 7, 2011, 36 TexReg 604; amended to be effective February 24, 2014, 39 TexReg 1201.</p></note></section><section identifier="/us/state/tx/tac/t40/p20/c802/scD/s802.67"><num value="802.67">§802.67</num><heading>Commission Evaluation of Board Oversight Capacity</heading><content>(a) This section outlines the process used by the Commission to evaluate Board oversight capacity related to the management of local funds and the delivery of local workforce services.(b) The Agency shall evaluate, at least annually, each Board's oversight capacity, including the Board's ability to:(1) develop, maintain, and upgrade comprehensive fiscal management systems;(2) hire, train, and retain qualified staff to carry out the Board's oversight activities;(3) select and oversee workforce service providers to improve the delivery of workforce services;(4) oversee and improve the operations of Workforce Solutions Offices in the Board's service area;(5) manage each workforce service provider's performance across multiple Board programs; and(6) identify and resolve long-standing or severe Board oversight problems and workforce service provider performance issues. In the context of this section, the term "severe" is defined as an issue serious enough to warrant a sanction or intent-to-sanction, as described in §802.122 and §802.123, and the term "long-standing" is defined as an issue that persists for more than one review period.(c) The Commission shall approve, in an open meeting, specific criteria to be used in its evaluation of Board oversight capacity and shall communicate these criteria to Boards through issuance of a Workforce Development Letter. The Commission shall approve, in an open meeting, on an as-needed basis, updates to the criteria used to evaluate Board oversight capacity.(d) Notwithstanding any other provision of this section, the Commission may consider any extraordinary situation related to any of the factors identified in subsection (b) of this section, including natural disasters.(e) Annually, the Commission shall post the results of its evaluation of each Board and each Board's performance on its website with an explanation of the rating, rating criteria, and performance measures in a format that is readily accessible to and understandable by a member of the public.(1) The explanation shall include specifically how each of the criteria was applied for each Board.(2) Evaluations shall be performed using information at the Commission's disposal at the time of the evaluation. If no updated information is available, the Commission is not obligated to schedule a review or visit to confirm or obtain new information.(3) The Commission may update the Board ratings more often than annually if the Commission determines new information or circumstances warrant consideration.</content><note type="source"><p>Source Note: The provisions of this §802.67 adopted to be effective February 7, 2011, 36 TexReg 604; amended to be effective November 11, 2015, 40 TexReg 7901; amended to be effective January 8, 2019, 44 TexReg 113.</p></note></section></subchapter><subchapter identifier="/us/state/tx/tac/t40/p20/c802/scE"><num value="E">SUBCHAPTER E</num><heading>BOARD, WORKFORCE SERVICE PROVIDER, AND AEL GRANT RECIPIENT MONITORING ACTIVITIES</heading><section identifier="/us/state/tx/tac/t40/p20/c802/scE/s802.81"><num value="802.81">§802.81</num><heading>Scope and Purpose</heading><content>(a) The purpose of this subchapter is to set forth the provisions governing the monitoring responsibilities of Boards, workforce service providers, and AEL grant recipients.(b) The rules contained in this subchapter apply in addition to any program-specific rules to all programs administered by the Agency, except that to the extent of any conflict, the program-specific rule will govern.</content><note type="source"><p>Source Note: The provisions of this §802.81 adopted to be effective February 7, 2011, 36 TexReg 604; amended to be effective February 24, 2014, 39 TexReg 1201.</p></note></section><section identifier="/us/state/tx/tac/t40/p20/c802/scE/s802.82"><num value="802.82">§802.82</num><heading>Board, Workforce Service Provider, and AEL Grant Recipient Monitoring</heading><content>(a) Boards, workforce service providers, and AEL grant recipients shall ensure that regular oversight of their own activities and regular monitoring of the activities of their workforce service providers and AEL service providers that receive public funds administered by the Agency, are conducted and completed. Monitoring shall include monitoring of both the fiscal and program performance of the workforce service providers and AEL service providers administering and delivering services. These monitoring activities shall be designed to ensure programs achieve intended results and resources are efficiently and effectively used for authorized purposes and are protected from waste, fraud, and abuse. Monitoring activities shall be planned to focus on areas of highest risk to help ensure the most effective use of monitoring resources.(b) Monitoring activities shall assess a workforce service provider's and AEL service provider's compliance with applicable laws, regulations, provisions of contracts and Board plans, and official directives and circulars including, but not limited to, DOL Training and Employment Guidance Letters, DOL Training and Employment Notices, U.S. Department of Health and Human Services guidance letters, U.S. Department of Education Office of Vocational and Adult Education guidance, Commission rules contained in Part 20 of this title, Texas Workforce Commission WD Letters and AEL Letters, the Agency's Financial Manual for Grants and Contracts, and other Agency guidance. The Board and AEL grant recipient shall assess the workforce service provider's and AEL service provider's compliance with the appropriate uniform administrative requirements for grants and agreements applicable to the type of entity receiving funds, as promulgated in OMB circulars or rules. These activities shall encompass both financial and programmatic monitoring and shall be evaluated on a periodic basis. Each Board, workforce service provider, and AEL grant recipient shall conduct regular oversight and monitoring of its workforce service providers or AEL service providers in order to:(1) determine that expenditures have been charged to the cost categories and within the cost limitations specified in the applicable laws and regulations;(2) determine whether or not there is compliance with other provisions of applicable laws and regulations; and(3) provide technical assistance as necessary and appropriate.(c) The monitoring function shall include the development and implementation of:(1) a risk assessment tool;(2) a monitoring plan;(3) a monitoring program, including established policies and procedures; and(4) reporting and resolution processes.(d) The Board and workforce service provider, or the AEL grant recipient and AEL service provider, shall develop and implement written policies and procedures that describe and support the monitoring process.</content><note type="source"><p>Source Note: The provisions of this §802.82 adopted to be effective February 7, 2011, 36 TexReg 604; amended to be effective February 24, 2014, 39 TexReg 1201.</p></note></section><section identifier="/us/state/tx/tac/t40/p20/c802/scE/s802.83"><num value="802.83">§802.83</num><heading>Risk Assessment</heading><content>(a) Boards, workforce service providers, and AEL grant recipients shall include the use of a risk assessment tool in their monitoring functions.(b) The risk assessment tool shall identify high-risk workforce service providers and AEL service providers and high areas of risk within an individual workforce service provider's or AEL service provider's operation. The entity responsible for including the risk assessment tool in its monitoring functions shall be responsible for determining what constitutes high risk or an area of high risk.(c) Boards, workforce service providers, and AEL grant recipients shall establish monitoring schedules and monitoring programs that best use monitoring resources. Boards, workforce service providers, and AEL grant recipients shall quantify, as much as possible, and document areas of risk identified for assessment.</content><note type="source"><p>Source Note: The provisions of this §802.83 adopted to be effective February 7, 2011, 36 TexReg 604; amended to be effective February 24, 2014, 39 TexReg 1201.</p></note></section><section identifier="/us/state/tx/tac/t40/p20/c802/scE/s802.84"><num value="802.84">§802.84</num><heading>Monitoring Plan</heading><content>(a) Boards, workforce service providers, and AEL grant recipients shall develop their own local-level monitoring plan based on the results of the risk assessment. This monitoring plan shall incorporate the following:(1) a schedule or timetable for monitoring Agency-funded activities; and(2) identification of the type of review planned, such as on-site review, comparative financial analysis, desk review, staff analysis, or other type of appropriate review.(b) Boards, workforce service providers, and AEL grant recipients may perform monitoring reviews either formally or informally, but shall incorporate the risk assessment results in scheduling decisions.</content><note type="source"><p>Source Note: The provisions of this §802.84 adopted to be effective February 7, 2011, 36 TexReg 604; amended to be effective February 24, 2014, 39 TexReg 1201.</p></note></section><section identifier="/us/state/tx/tac/t40/p20/c802/scE/s802.85"><num value="802.85">§802.85</num><heading>Controls over Monitoring</heading><content>To ensure comprehensive and effective monitoring, Boards, workforce service providers, and AEL grant recipients shall:(1) require periodic reports from their workforce service providers or AEL service providers outlining monitoring reviews, noncompliance issues, and the status of corrective actions;(2) ensure that a briefing regarding monitoring activities and findings is provided to the Board or appropriate Board subcommittee at regularly scheduled meetings, or to AEL consortium members, as applicable;(3) require an annual evaluation of the monitoring function to determine its effectiveness, by a person or entity independent of the monitoring function; and(4) develop a written monitoring procedure to be used in monitoring both program and fiscal operations.</content><note type="source"><p>Source Note: The provisions of this §802.85 adopted to be effective February 7, 2011, 36 TexReg 604; amended to be effective February 24, 2014, 39 TexReg 1201.</p></note></section><section identifier="/us/state/tx/tac/t40/p20/c802/scE/s802.86"><num value="802.86">§802.86</num><heading>Reporting and Resolution Requirements</heading><content>(a) Boards, workforce service providers, and AEL grant recipients shall ensure that monitoring reports identify instances of noncompliance with federal and state laws and regulations and Agency policies, and provide recommendations for corrective action and program quality enhancements.(b) Boards, workforce service providers, and AEL grant recipients shall ensure that timelines are established for the completion of corrective actions, based on the severity of the deficiency, and shall work with the workforce service providers or AEL service providers to ensure implementation of corrective actions.(c) Boards, workforce service providers, and AEL grant recipients shall ensure that a copy of monitoring reports is provided to Board members or AEL consortium members.</content><note type="source"><p>Source Note: The provisions of this §802.86 adopted to be effective February 7, 2011, 36 TexReg 604; amended to be effective February 24, 2014, 39 TexReg 1201.</p></note></section><section identifier="/us/state/tx/tac/t40/p20/c802/scE/s802.87"><num value="802.87">§802.87</num><heading>Independent Audit Requirements</heading><content>Boards, workforce service providers, AEL grant recipients, AEL service providers, and Agency grantees are subject to the following and shall ensure that an annual audit or program-specific audit is obtained in accordance with the following: (1) Single Audit Act Amendments of 1996 (Public Law 104-156);(2) OMB Circular A-133 and Compliance Supplement;(3) OMB Circular A-21;(4) OMB Circular A-110;(5) Government Auditing Standards (U.S. Government Accountability Office); and(6) State of Texas Single Audit Circular within the Uniform Grant Management Standards Act (Texas Government Code, Chapter 783).</content><note type="source"><p>Source Note: The provisions of this §802.87 adopted to be effective February 7, 2011, 36 TexReg 604; amended to be effective February 24, 2014, 39 TexReg 1201.</p></note></section></subchapter><subchapter identifier="/us/state/tx/tac/t40/p20/c802/scF"><num value="F">SUBCHAPTER F</num><heading>PERFORMANCE AND ACCOUNTABILITY</heading><section identifier="/us/state/tx/tac/t40/p20/c802/scF/s802.101"><num value="802.101">§802.101</num><heading>Scope and Purpose</heading><content>(a) The purpose of this subchapter is to:(1) ensure accountability of Boards, workforce service providers, AEL grant recipients, AEL service providers, and Agency grantees, in meeting the needs of Workforce Solutions customers;(2) ensure performance targets are met or exceeded; and(3) describe the Commission policies for noncompliance.(b) The Agency may review financial, administrative, and performance data to evaluate a Board, workforce service provider, AEL grant recipient, AEL service provider, or Agency grantee to determine the need for sanctions.(c) To accomplish the purposes of this subchapter, the Agency may require at any point during the year that a Board, workforce service provider, AEL grant recipient, AEL service provider, or Agency grantee cooperates with remedial actions, including, but not limited to, entering into a technical assistance plan and other performance review and assistance activities.</content><note type="source"><p>Source Note: The provisions of this §802.101 adopted to be effective February 7, 2011, 36 TexReg 604; amended to be effective February 24, 2014, 39 TexReg 1201.</p></note></section><section identifier="/us/state/tx/tac/t40/p20/c802/scF/s802.102"><num value="802.102">§802.102</num><heading>Performance Requirements and Expectations</heading><content>(a) A Board or AEL grant recipient shall meet or exceed expenditure and performance targets as set forth in its contracts. The Commission shall determine the Boards' or AEL grant recipients' performance targets based on federal and state performance standards and by using factors that may be necessary to achieve the mission of the Commission and reflect local conditions. The Commission approves individual Board or AEL grant recipient performance targets annually, which may be adjusted based on local conditions including, but not limited to, specific economic conditions and demographic characteristics of the workforce area.(b) An Agency grantee shall meet or exceed expenditure and performance targets as set forth in its contracts.(c) A Board, AEL grant recipient, and Agency grantee shall comply with the following:(1) applicable laws, regulations, provisions of contracts and Board plans, and official directives and circulars including, but not limited to, DOL Training and Employment Guidance Letters, DOL Training and Employment Notices, U.S. Department of Health and Human Services guidance letters, U.S. Department of Education Office of Vocational and Adult Education guidance, Commission rules contained in Part 20 of this title, Texas Workforce Commission WD Letters and AEL Letters, the Agency's Financial Manual for Grants and Contracts, and other Agency guidance;(2) appropriate uniform administrative requirements for grants and agreements applicable for the type of entity receiving funds as promulgated in OMB's Uniform Grant Management Standards circulars or rules; and(3) Agency-Board agreements and applicable program contracts.(d) A Board's or AEL grant recipient's achievement of high levels of performance may result in the Commission providing incentives for the Board as set forth in Subchapter I of this chapter (relating to Incentive Awards). In addition, the Commission may adopt additional performance incentives.(e) The failure of Boards, AEL grant recipients, or Agency grantees to meet minimum levels of performance as referenced in their contracts may result in corrective actions, other performance review and assistance activities, or sanctions as specified in:(1) Part 20 of this title, including this chapter;(2) the contract with the Agency; or(3) federal or state statute or rule.(f) A Board or AEL grant recipient may submit to the Commission a request for a performance target adjustment in the format prescribed by the Agency.(g) The Commission may determine what constitutes a necessary adjustment to local performance targets and may consider specific economic conditions and demographic characteristics to be served in the workforce area and other factors the Commission deems appropriate including the anticipated impact of the adjustment on the state's performance.</content><note type="source"><p>Source Note: The provisions of this §802.102 adopted to be effective February 7, 2011, 36 TexReg 604; amended to be effective February 24, 2014, 39 TexReg 1201.</p></note></section><section identifier="/us/state/tx/tac/t40/p20/c802/scF/s802.103"><num value="802.103">§802.103</num><heading>Performance Review and Assistance</heading><content>(a) The Commission's intent is to define the role of performance review and assistance provided by the Agency. The role of performance review and assistance is to work with Boards, workforce service providers, AEL grant recipients, AEL service providers, and Agency grantees to:(1) ensure successful service delivery outcomes; and(2) provide accountability through technical assistance and contract management.(b) The Agency offers a sequence of interventions including the development of technical assistance plans, on-site reviews, staff training, and continued contract management and oversight.(c) Boards, workforce service providers, AEL grant recipients, AEL service providers, and Agency grantees shall ensure cooperation and compliance with the Agency's performance review and assistance activities and services.</content><note type="source"><p>Source Note: The provisions of this §802.103 adopted to be effective February 7, 2011, 36 TexReg 604; amended to be effective February 24, 2014, 39 TexReg 1201.</p></note></section><section identifier="/us/state/tx/tac/t40/p20/c802/scF/s802.104"><num value="802.104">§802.104</num><heading>Performance Improvement Actions</heading><content>(a) The Agency may assist Boards, workforce service providers, AEL grant recipients, AEL service providers, and Agency grantees with strategies for improving compliance or performance.(b) A technical assistance plan, which may be jointly developed by the Agency with Boards, AEL grant recipients, or Agency grantees, may include, but is not limited to:(1) identification of one or more specific performance improvement issues;(2) assessment of specific technical assistance or training needs;(3) selection of one or more specific technical assistance or training activities to be implemented;(4) identification of the appropriate entities to provide the technical assistance or training, including the Board, AEL grant recipient, the Agency, other Boards, or other entities;(5) identification of a timeline for completion of the technical assistance or training; and(6) specific dates for reassessment of technical assistance or training needs and completion of the specific technical assistance or training.</content><note type="source"><p>Source Note: The provisions of this §802.104 adopted to be effective February 7, 2011, 36 TexReg 604; amended to be effective February 24, 2014, 39 TexReg 1201.</p></note></section></subchapter><subchapter identifier="/us/state/tx/tac/t40/p20/c802/scG"><num value="G">SUBCHAPTER G</num><heading>CORRECTIVE ACTIONS</heading><section identifier="/us/state/tx/tac/t40/p20/c802/scG/s802.121"><num value="802.121">§802.121</num><heading>Imposition of Corrective Actions and Corrective Action Plans</heading><content>(a) At any time, the Agency may impose corrective actions for failure by a Board, AEL grant recipient, or Agency grantee to ensure compliance with the following:(1) one or more contracted performance measures;(2) one or more contract provisions; or(3) one or more of the items listed in §802.102(c) of this chapter.(b) The Agency may impose corrective actions for failure by a Board, AEL grant recipient, or Agency grantee to appropriately oversee of the delivery of services and ensure the effective and efficient use of funds.(c) Failure to cooperate and comply with the Agency's performance improvement actions, including technical assistance plans, may subject a Board, AEL grant recipient, or Agency grantee to corrective actions.(d) The Agency may impose, in nonsequential order, the following corrective actions on a Board, AEL grant recipient, or Agency grantee:(1) Intent to Sanction(2) Level-One Sanction(3) Level-Two Sanction(4) Level-Three Sanction(e) The Agency may impose a higher level of sanction on a Board, AEL grant recipient, or Agency grantee, if a sanction is currently imposed when another sanctionable act occurs or is discovered.(f) Corrective Action Plan. To assist in correcting any deficiencies, a Board, AEL grant recipient, or Agency grantee upon whom an intent to sanction or a sanction is imposed must enter into a corrective action plan. A corrective action plan is developed by the Agency and may include the elements of a technical assistance plan, as outlined in §802.104(b) of this chapter. In addition, the Agency may require:(1) participation in technical and quality assurance activities;(2) mandatory participation in training;(3) on-site visits by the Agency to oversee and assist with daily operations of a Board, AEL grant recipient, or Agency grantee;(4) submission of additional or more detailed financial or performance reports;(5) modification of the Board's local plan;(6) issuing a notice of intent to revoke all or part of the affected local plan;(7) designation as a high-risk Board, AEL grant recipient, or an Agency grantee requiring additional monitoring visits;(8) appearances by the Board's executive director, other administrative officer, the Agency grantee's executive leadership, or the AEL grant recipient's chief executive officer to report on activities and progress in Commission meetings until performance is satisfactory;(9) meetings with the workforce area's chief elected officials, Board chair, Board members, Board executive director, AEL grant recipient's chief executive officer, AEL consortium members, or Agency grantee's executive leadership;(10) formal Agency presentation to chief elected officials, Board members, AEL grant recipient's chief executive officer, AEL consortium members, or Agency grantee's executive leadership;(11) Agency oversight and management of problem situations, such as the appointment of a steward;(12) Agency approval of specified Board, AEL grant recipient, or Agency grantee actions (i.e., prohibition against entering into specific contracts or engaging in certain activities without explicit prior approval of the Agency);(13) prohibition against a Board or AEL grant recipient using designated workforce service providers or AEL service providers, including state agencies and Workforce Solutions Office operators;(14) payment by reimbursement only, with required supporting documentation;(15) delay, suspension, or denial of contract payments;(16) reduction or deobligation of funds;(17) ineligibility for additional discretionary or other funds, including incentive awards;(18) contract cancellation or termination; and(19) other actions deemed appropriate by the Agency to assist the Board, AEL grant recipient, or Agency grantee in correcting deficiencies.</content><note type="source"><p>Source Note: The provisions of this §802.121 adopted to be effective February 7, 2011, 36 TexReg 604; amended to be effective February 24, 2014, 39 TexReg 1201.</p></note></section><section identifier="/us/state/tx/tac/t40/p20/c802/scG/s802.122"><num value="802.122">§802.122</num><heading>Intent to Sanction</heading><content>(a) The Agency may issue an intent to sanction to set forth:(1) a corrective action plan and performance review and assistance activities;(2) a specific timeline for the implementation of the corrective action plan by a Board, AEL grant recipient, or Agency grantee; and(3) an opportunity to cure the sanctionable acts.(b) There shall be no appeal to an intent to sanction.</content><note type="source"><p>Source Note: The provisions of this §802.122 adopted to be effective February 7, 2011, 36 TexReg 604; amended to be effective February 24, 2014, 39 TexReg 1201.</p></note></section><section identifier="/us/state/tx/tac/t40/p20/c802/scG/s802.123"><num value="802.123">§802.123</num><heading>Sanctions</heading><content>(a) Level-One Sanction. The Agency may impose a level-one sanction on a Board, AEL grant recipient, or Agency grantee for sanctionable acts. Sanctionable acts that occur during the program, grant, fiscal, contract, or calendar year include, but are not limited to, the following:(1) failure to submit timely and accurate required financial or performance reports;(2) failure to take corrective actions to resolve findings identified during monitoring, investigative, or program reviews, including failure to comply with a technical assistance plan developed by the Agency;(3) failure to rectify or resolve all independent audit findings or questioned costs within required time frames;(4) failure to submit required annual audits;(5) breach of administrative and service contract requirements;(6) failure to retain required service delivery and financial records; or(7) failure to meet the target on any contracted performance measure by more than 10 percent of target.(b) Level-Two Sanction. The Agency may impose a level-two sanction on a Board, AEL grant recipient, or Agency grantee for sanctionable acts. Sanctionable acts that occur during the program, grant, fiscal, contract, or calendar year include, but are not limited to, the following:(1) failure to rectify a level-one sanction within six months of notice;(2) committing a second sanctionable act;(3) failure to rectify reported threats to health and safety of program participants within 30 days of notice. Rectifying health and safety may include investigating a complaint, taking appropriate corrective actions, or making referrals to appropriate authorities; or(4) failure to meet the target on any contracted performance measure by more than 25 percent of target.(c) Level-Three Sanction. The Agency may impose a level-three sanction on a Board, AEL grant recipient, or Agency grantee for sanctionable acts. Sanctionable acts that occur during the program, grant, fiscal, contract, or calendar year include, but are not limited to, the following:(1) failure to rectify a level-one sanction within one year of notice;(2) failure to rectify a level-two sanction within six months of notice;(3) committing multiple sanctionable acts;(4) failure to rectify reported threats to health and safety of program participants within 60 days of notice. Rectifying health and safety may include investigating a complaint, taking appropriate corrective action, or making referrals to appropriate authorities; or(5) failure to meet the target on any contracted measure by more than 25 percent of target for two consecutive years.</content><note type="source"><p>Source Note: The provisions of this §802.123 adopted to be effective February 7, 2011, 36 TexReg 604; amended to be effective February 24, 2014, 39 TexReg 1201.</p></note></section><section identifier="/us/state/tx/tac/t40/p20/c802/scG/s802.124"><num value="802.124">§802.124</num><heading>Penalties for Noncompliance with Requirements</heading><content>(a) The Agency may impose penalties on a Board, AEL grant recipient, or Agency grantee based on the following criteria as determined appropriate by the Agency given the totality of the circumstances surrounding the occurrence of the sanctionable act or acts:(1) Severity, nature, duration, and extent;(2) Previous occurrences of sanctionable acts; and(3) Efforts by the Board, workforce service provider, AEL grant recipient, AEL service provider, or Agency grantee to prevent the occurrence of the sanctionable act, including efforts to:(A) obtain technical assistance, training, or other assistance from the Agency;(B) resolve monitoring findings; and(C) prevent potential sanctionable acts.(b) The Agency may impose penalties for sanctionable acts listed in this subchapter. Notwithstanding the list of sanctionable acts appearing after each specific level of sanction in §802.123 of this subchapter, the Agency may assign a higher or lower sanction level based on the severity or mitigating circumstances surrounding the sanctionable acts.(c) The Commission may recommend to TWIC pursuant to Texas Government Code, Chapter 2308, that one or more of the following be imposed on Boards:(1) A reorganization plan under Texas Government Code §2308.268 for the workforce area;(2) A restructuring of the Board, including decertification of the current Board and appointment and certification of a new Board;(3) A merger of the workforce area into one or more other workforce areas; or(4) Any other penalty deemed appropriate by the Commission.(d) More than one corrective action may be imposed in response to one occurrence of a sanctionable act. The corrective actions imposed for one or more occurrences of sanctionable acts may correlate with the sanction level imposed on a Board, AEL grant recipient, or Agency grantee.(e) Failure by a Board, AEL grant recipient, or Agency grantee to complete the corrective actions described in this subchapter within the specified time limits may result in the Agency imposing penalties under this subchapter and withholding contract payments to the Board, AEL grant recipient, or Agency grantee.(f) Penalties for Second-Year WIA Nonperformance. If a Board fails to meet its targets on 25 percent of its contracted measures by more than 20 percent of target for two consecutive program years, the Commission shall review the performance deficiencies and shall make a recommendation to TWIC that it impose a reorganization plan for the workforce area. The Commission's recommendation to TWIC for reorganization of a workforce area may include one or more of the corrective actions or penalties included in this subchapter. Notwithstanding this subsection, the Commission may take other action deemed appropriate as consistent with federal law.(g) Penalties for Failures Regarding the One-Stop Service Delivery Network. Failure of a Board to ensure the continued operation of a one-stop service delivery network as required by WIA §121 and Chapter 801, Subchapter B, One-Stop Service Delivery Network of this title, including failure to properly certify Workforce Solutions Offices as defined in §801.24 of this title, may result in the imposition of penalties as provided in this subchapter, and the Agency's withholding of payment for any administrative expenses until the Board demonstrates to the satisfaction of the Agency that all of the required elements of a one-stop service delivery network are operational.</content><note type="source"><p>Source Note: The provisions of this §802.124 adopted to be effective February 7, 2011, 36 TexReg 604; amended to be effective February 24, 2014, 39 TexReg 1201.</p></note></section><section identifier="/us/state/tx/tac/t40/p20/c802/scG/s802.125"><num value="802.125">§802.125</num><heading>Sanction Determination</heading><content>(a) The director of Agency's Workforce Development Division determines whether a sanction shall be imposed, including whether it is appropriate to impose a sanction level on the Board, AEL grant recipient, or Agency grantee and whether it is appropriate to assign a penalty.(b) The Commission shall work in concert with TWIC, as appropriate, to impose sanctions as required by Texas Government Code §2308.268 and §2308.269.(c) The Agency shall send a written notice of sanction determination (sanction determination) to the following:(1) Board:(A) The Board's executive director or administrative officer;(B) The Board's chair; and(C) The lead chief elected official of the workforce area; or(2) The AEL grant recipients' or Agency grantees' executive leadership.(d) The sanction determination date of notice shall be the date the sanction determination is sent by certified mail. All sanction determinations shall be sent by electronic transmission and by certified mail, return receipt requested.(e) The sanction determination shall include the following information:(1) the sanctionable act upon which the sanction was based;(2) the sanction level in which the Board, AEL grant recipient, or Agency grantee is placed and the conditions under which the sanction may be removed;(3) the penalty and the effective date of the penalty;(4) the corrective action required, including the timeline for completing the corrective action; and(5) the technical assistance contact from the Agency or other entity to assist in completing the corrective action.(f) The Agency shall send the sanction determination at least 10 working days in advance of the effective date of the sanction.</content><note type="source"><p>Source Note: The provisions of this §802.125 adopted to be effective February 7, 2011, 36 TexReg 604; amended to be effective February 24, 2014, 39 TexReg 1201.</p></note></section></subchapter><subchapter identifier="/us/state/tx/tac/t40/p20/c802/scH"><num value="H">SUBCHAPTER H</num><heading>REMEDIES</heading><section identifier="/us/state/tx/tac/t40/p20/c802/scH/s802.141"><num value="802.141">§802.141</num><heading>Informal Conferences and Informal Dispositions</heading><content>An informal conference is defined as an informal meeting between a Board or Agency grantee and designee of the director of the Agency's Workforce Development Division, held for the purpose of agreeing on a proposed informal disposition of a sanctionable act. An informal conference shall be voluntary and shall not be a prerequisite to a hearing in an appeal of a penalty.</content><note type="source"><p>Source Note: The provisions of this §802.141 adopted to be effective February 7, 2011, 36 TexReg 604.</p></note></section><section identifier="/us/state/tx/tac/t40/p20/c802/scH/s802.142"><num value="802.142">§802.142</num><heading>Appeal</heading><content>(a) A Board or Agency grantee may appeal a final determination or sanction determination; however, a recommendation to another entity by the Agency or Commission under Subchapter G of this chapter (relating to Corrective Actions), cannot be appealed.(b) A request for appeal of a final determination or sanction determination shall be filed within 10 working days following the receipt of the determination. The appeal shall be in writing and filed with the General Counsel, Texas Workforce Commission, 101 East 15th Street, Austin, Texas 78778. Failure by a Board, workforce service provider, or Agency grantee to timely request a hearing waives the right to a hearing.(c) The Agency shall refer the request for appeal to an impartial hearing officer for a hearing.(d) The Agency shall mail a notice of hearing to the Board or Agency grantee as provided in §802.125(c) of this chapter, and to their representatives, if any. The notice of hearing shall be in writing and include:(1) a statement of the date, time, place, and nature of the hearing;(2) a statement of the legal authority under which the hearing is to be held; and(3) a short and plain statement of the issues to be considered during the hearing.</content><note type="source"><p>Source Note: The provisions of this §802.142 adopted to be effective February 7, 2011, 36 TexReg 604.</p></note></section><section identifier="/us/state/tx/tac/t40/p20/c802/scH/s802.143"><num value="802.143">§802.143</num><heading>Hearing Procedures</heading><content>(a) The sanction determination hearing shall be conducted in person in Austin, Texas, unless the parties agree to a telephonic hearing or request a different location.(b) The hearing shall be conducted informally and in such manner as to ascertain the substantial rights of the parties. All issues relevant to the appeal shall be considered and addressed, and may include:(1) Presentation of Evidence. The parties to an appeal may present evidence that is material and relevant, as determined by the hearing officer. In conducting a hearing, the hearing officer shall actively develop the record on the relevant circumstances and facts to resolve all issues. To be considered as evidence in a decision, any document or physical evidence must be entered as an exhibit at the hearing.(2) Examination of Parties and Witnesses. The hearing officer shall examine parties and any witnesses, and shall allow cross-examination to the extent the hearing officer deems necessary to afford the parties due process.(3) Additional Evidence. The hearing officer, with or without notice to any of the parties, may take additional evidence as deemed necessary, provided that a party shall be given an opportunity to rebut the evidence if it is to be used against the party's interest.(4) Appropriate Hearing Behavior. All parties shall conduct themselves in an appropriate manner. The hearing officer may expel any individual, including a party, who fails to correct behavior the hearing officer identifies as disruptive. After expulsion, the hearing officer may proceed with the hearing and render a decision.(c) Records.(1) The hearing record shall include the audio recording of the proceeding and any other relevant evidence relied on by the hearing officer, including documents and other physical evidence entered as exhibits.(2) The hearing record shall be maintained in accordance with federal and state law.(3) Confidentiality of information contained in the hearing record shall be maintained in accordance with federal and state law.</content><note type="source"><p>Source Note: The provisions of this §802.143 adopted to be effective February 7, 2011, 36 TexReg 604.</p></note></section><section identifier="/us/state/tx/tac/t40/p20/c802/scH/s802.144"><num value="802.144">§802.144</num><heading>Postponements, Continuances, and Withdrawals</heading><content>(a) The hearing officer may grant a postponement of a sanction determination hearing for good cause at a party's request.(b) A continuance of a hearing may be ordered at the discretion of the hearing officer to consider additional, necessary evidence or for any other reason the hearing officer deems appropriate.(c) A Board or Agency grantee may withdraw an appeal at any time prior to the issuance of the final decision.</content><note type="source"><p>Source Note: The provisions of this §802.144 adopted to be effective February 7, 2011, 36 TexReg 604.</p></note></section><section identifier="/us/state/tx/tac/t40/p20/c802/scH/s802.145"><num value="802.145">§802.145</num><heading>Evidence</heading><content>(a) Evidence Generally. Evidence, including hearsay evidence, shall be admitted if it is relevant and if in the judgment of the hearing officer it is the kind of evidence on which reasonably prudent persons are accustomed to rely in the conduct of their affairs. However, the hearing officer may exclude evidence if its probative value is outweighed by the danger of unfair prejudice, by confusion of the issues, or by reasonable concern for undue delay, waste of time, or needless presentation of cumulative evidence.(b) Exchange of Exhibits. Any documentary evidence to be presented during a telephonic hearing shall be exchanged with all parties and a copy shall be provided to the hearing officer in advance of the hearing. Any documentary evidence to be presented at an in-person hearing shall be exchanged at the hearing.(c) Stipulations. The parties, with the consent of the hearing officer, may agree in writing to relevant facts. The hearing officer may decide the appeal based on such stipulations or, at the hearing officer's discretion, may set the appeal for hearing and take such further evidence as the hearing officer deems necessary.(d) Experts and Evaluations. If relevant and useful, testimony from an independent expert or a professional evaluation from a source satisfactory to the parties and the Agency may be ordered by hearing officers, on their own motion, or at a party's request. Any such expert or evaluation shall be at the expense of one or more of the parties.(e) Subpoenas.(1) The hearing officer may issue subpoenas to compel the attendance of witnesses and the production of records. A subpoena may be issued either at the request of a party or on the hearing officer's own motion.(2) A party requesting a subpoena shall state the nature of the information desired, including names of any witnesses and the records that the requestor feels are necessary for the proper presentation of the case.(3) The request shall be granted only to the extent the records or the testimony of the requested witnesses appears to be relevant to the issues on appeal.(4) A denial of a subpoena request shall be made in writing or on the record, stating the reasons for such denial.</content><note type="source"><p>Source Note: The provisions of this §802.145 adopted to be effective February 7, 2011, 36 TexReg 604.</p></note></section><section identifier="/us/state/tx/tac/t40/p20/c802/scH/s802.146"><num value="802.146">§802.146</num><heading>Hearing Officer Independence and Impartiality</heading><content>(a) A hearing officer presiding over a hearing shall have all powers necessary and appropriate to conduct a full, fair, and impartial hearing. Hearing officers shall remain independent and impartial in all matters regarding the handling of any issues during the pendency of a case and in issuing their written proposals for decision.(b) A hearing officer shall be disqualified if the hearing officer has a personal interest in the outcome of the appeal or if the hearing officer directly or indirectly participated in the determination on appeal. Any party may present facts to the Agency in support of a request to disqualify a hearing officer.(c) The hearing officer may withdraw from a hearing to avoid the appearance of impropriety or partiality.(d) Following any disqualification or withdrawal of a hearing officer, the Agency shall assign an alternate hearing officer to the case. The alternate hearing officer shall not be bound by any findings or conclusions made by the disqualified or withdrawn hearing officer.</content><note type="source"><p>Source Note: The provisions of this §802.146 adopted to be effective February 7, 2011, 36 TexReg 604.</p></note></section><section identifier="/us/state/tx/tac/t40/p20/c802/scH/s802.147"><num value="802.147">§802.147</num><heading>Ex Parte Communications</heading><content>(a) The hearing officer shall not participate in ex parte communications, directly or indirectly, in any matter in connection with any substantive issue, with any interested person or party. Likewise, no person shall attempt to engage in ex parte communications with the hearing officer on behalf of any interested person or party.(b) If the hearing officer receives any such ex parte communication, the other parties shall be given an opportunity to review any such ex parte communication.(c) Nothing shall prevent the hearing officer from communicating with parties or their representatives about routine matters such as requests for continuances or opportunities to inspect the file.(d) The hearing officer may initiate communications with an impartial Agency employee who has not participated in a hearing or any determination in the case for the limited purpose of using the special skills or knowledge of the Agency and its staff in evaluating the evidence.</content><note type="source"><p>Source Note: The provisions of this §802.147 adopted to be effective February 7, 2011, 36 TexReg 604.</p></note></section><section identifier="/us/state/tx/tac/t40/p20/c802/scH/s802.148"><num value="802.148">§802.148</num><heading>Hearing Decision</heading><content>(a) Following the conclusion of the hearing, the hearing officer shall promptly prepare a written proposal for decision.(b) The proposal for decision shall be based exclusively on the evidence of record in the hearing and on matters officially noticed in the hearing. The decision shall include:(1) a list of the individuals who appeared at the hearing;(2) the findings of fact and conclusions of law reached on the issues; and(3) the affirmation, reversal, or modification of the sanctions.(c) The proposal for decision shall be submitted to the Agency's executive director for issuance of a written decision on behalf of the Agency.(d) Unless a party files a timely motion for rehearing, the Agency may assume continuing jurisdiction to modify or correct a decision until the expiration of 30 calendar days from the mailing date of the decision.</content><note type="source"><p>Source Note: The provisions of this §802.148 adopted to be effective February 7, 2011, 36 TexReg 604.</p></note></section><section identifier="/us/state/tx/tac/t40/p20/c802/scH/s802.149"><num value="802.149">§802.149</num><heading>Motion for Reopening</heading><content>(a) If a party does not appear for a hearing, the party may request a reopening of the hearing within 30 calendar days from the date the decision is mailed.(b) The motion for reopening shall be in writing and detail the reason for failing to appear at the hearing.(c) The hearing officer may schedule a hearing on whether to grant the reopening.(d) The motion may be granted if the hearing officer determines that the party has shown good cause for failing to appear at the hearing.</content><note type="source"><p>Source Note: The provisions of this §802.149 adopted to be effective February 7, 2011, 36 TexReg 604.</p></note></section><section identifier="/us/state/tx/tac/t40/p20/c802/scH/s802.150"><num value="802.150">§802.150</num><heading>Motion for Rehearing</heading><content>(a) A Board or Agency grantee may file a motion for rehearing for the presentation of new evidence within 30 days from the date the decision is mailed. A rehearing shall be granted only for the presentation of new evidence.(b) A motion for rehearing shall be in writing and allege the new evidence to be considered.(c) If the hearing officer determines that the alleged new evidence warrants a rehearing, a rehearing shall be scheduled at a reasonable time and place.(d) The hearing officer shall issue a written proposal for decision in response to a timely filed motion for rehearing. The proposal for decision shall be submitted to the Agency's executive director for issuance of a final decision.</content><note type="source"><p>Source Note: The provisions of this §802.150 adopted to be effective February 7, 2011, 36 TexReg 604.</p></note></section><section identifier="/us/state/tx/tac/t40/p20/c802/scH/s802.151"><num value="802.151">§802.151</num><heading>Finality of Decision</heading><content>(a) The decision of the executive director is the final administrative decision of the Agency after the expiration of 30 calendar days from the mailing date of the decision, unless within that time:(1) a request for reopening is filed with the Agency;(2) a request for rehearing is filed with the Agency; or(3) the Agency assumes continuing jurisdiction to modify or correct the decision.(b) Any decision issued in response to a request for reopening or rehearing or a modification or correction issued by the Agency shall be final on the expiration of 30 calendar days from the mailing date of the decision, modification, or correction.</content><note type="source"><p>Source Note: The provisions of this §802.151 adopted to be effective February 7, 2011, 36 TexReg 604.</p></note></section><section identifier="/us/state/tx/tac/t40/p20/c802/scH/s802.152"><num value="802.152">§802.152</num><heading>Repayment</heading><content>(a) The Board and chief elected officials shall be jointly and severally liable for repayment to the Agency from nonfederal funds for expenditures in the workforce area that are found by the Agency not to have been expended in accordance §802.102 of this chapter.(b) An Agency grantee shall be liable for repayment to the Agency from nonfederal funds for expenditures that are found by the Agency not to have been expended in accordance with §802.102 of this chapter.</content><note type="source"><p>Source Note: The provisions of this §802.152 adopted to be effective February 7, 2011, 36 TexReg 604.</p></note></section></subchapter><subchapter identifier="/us/state/tx/tac/t40/p20/c802/scI"><num value="I">SUBCHAPTER I</num><heading>WORKFORCE AWARDS</heading><section identifier="/us/state/tx/tac/t40/p20/c802/scI/s802.161"><num value="802.161">§802.161</num><heading>Scope and Purpose</heading><content>The purpose of the workforce awards is to allow the Agency's three-member Commission (Commission) to establish monetary and nonmonetary awards to encourage innovation and to recognize and reward Local Workforce Development Boards (Boards), Adult Education and Literacy (AEL) grant recipients, and other Texas workforce system partners for exceptional performance in carrying out the workforce system's obligation to help Texas employers, employees, job seekers, and students succeed economically.</content><note type="source"><p>Source Note: The provisions of this §802.161 adopted to be effective February 7, 2011, 36 TexReg 604; amended to be effective February 24, 2014, 39 TexReg 1201; amended to be effective December 21, 2020, 45 TexReg 9245.</p></note></section><section identifier="/us/state/tx/tac/t40/p20/c802/scI/s802.162"><num value="802.162">§802.162</num><heading>Definitions</heading><content>The following words and terms when used in this chapter shall have the following meanings, unless the context clearly indicates otherwise.(1) Allocation of Funds--The total yearly funds initially identified for allocation to a local development workforce area (workforce area) for all programs. This does not include consideration of adjustments in funding that the Commission made to specific programs for the purposes of reallocating or redistributing those funds. This may include new allocations or distributions that result from changes in law or new funding made available to the workforce areas during the year.(2) Classification--A grouping of Boards, AEL grant recipients, or other workforce system partners with one or more common characteristics (for example, size) for the purpose of evaluating performance and issuing incentive, quality-improvement, or other awards, as determined by the Commission.(3) Extraordinary Circumstances--Conditions that may have an impact on the determination of which Boards, AEL grant recipients, or other workforce system partners may receive, or be excluded from receiving, workforce awards, which may include, but are not limited to, matters such as serious unforeseen events, unresolved audit or monitoring findings, sanctions, unanticipated changes in economic conditions, disasters, legislative changes, or other occurrences directly impacting the Commission, Boards, AEL grant recipients, or the Texas workforce system.(4) Workforce Awards--Awards presented by the Commission to workforce system partners within the parameters of this subchapter to support activities allowable under programmatic funding sources.(5) Workforce System Partner--For the purposes of workforce awards, any entity that provides workforce services to workforce system customers.</content><note type="source"><p>Source Note: The provisions of this §802.162 adopted to be effective February 7, 2011, 36 TexReg 604; amended to be effective February 24, 2014, 39 TexReg 1201; amended to be effective December 21, 2020, 45 TexReg 9245.</p></note></section><section identifier="/us/state/tx/tac/t40/p20/c802/scI/s802.163"><num value="802.163">§802.163</num><heading>Types of Workforce Awards</heading><content>The Commission shall determine:(1) awards to be issued, including award categories and names;(2) monetary amounts, if any, for each award in accordance with the funding source's allowability for such purposes;(3) the number of awards to be presented for each category;(4) the basis for award criteria, such as performance data, an application, a nomination, any combination thereof, or any other criteria;(5) the classification, if any, of workforce system award recipients for comparison purposes;(6) the method by which each award will be evaluated; and(7) other criteria as determined by the Commission.</content><note type="source"><p>Source Note: The provisions of this §802.163 adopted to be effective February 7, 2011, 36 TexReg 604; amended to be effective December 21, 2020, 45 TexReg 9245.</p></note></section><section identifier="/us/state/tx/tac/t40/p20/c802/scI/s802.165"><num value="802.165">§802.165</num><heading>Workforce Award Recipient Classification</heading><content>(a) The Commission may group workforce system partners, including, but not limited to, Boards and AEL grant recipients, in classifications for comparison purposes to determine workforce award recipients.(b) In classifying potential workforce award recipients, the Commission may group potential award recipients based on similarities or differences among the potential award recipients relating to:(1) allocations of funds;(2) prior performance;(3) demographic, economic, or other characteristics of the individual workforce areas or service-delivery areas;(4) size; or(5) other characteristics as determined by the Commission.</content><note type="source"><p>Source Note: The provisions of this §802.165 adopted to be effective February 7, 2011, 36 TexReg 604; amended to be effective December 21, 2020, 45 TexReg 9245.</p></note></section><section identifier="/us/state/tx/tac/t40/p20/c802/scI/s802.166"><num value="802.166">§802.166</num><heading>Notification</heading><content>(a) The Agency shall notify Boards, AEL grant recipients, and other workforce system partners, as applicable, of the current year's awards classifications, criteria, deadlines, and methods by which awards information may be submitted to the Agency for consideration.(b) The notice required under this section shall be provided by the end of the calendar year preceding the presentation of awards.(c) The Commission may add, modify, or remove an award or award type after the notification deadline when necessary due to extraordinary circumstances. Where the Commission takes such action, the Agency shall promptly notify Boards, AEL grant recipients, and other workforce system partners, as applicable, of the action taken and any changes to the previously noticed awards.</content><note type="source"><p>Source Note: The provisions of this §802.166 adopted to be effective February 7, 2011, 36 TexReg 604; amended to be effective December 21, 2020, 45 TexReg 9245.</p></note></section><section identifier="/us/state/tx/tac/t40/p20/c802/scI/s802.167"><num value="802.167">§802.167</num><heading>Extraordinary Circumstances</heading><content>Under extraordinary circumstances, as defined in this subchapter, the Commission may modify eligibility for and assignment of awards as necessary based on factors that the Commission identifies.</content><note type="source"><p>Source Note: The provisions of this §802.167 adopted to be effective February 7, 2011, 36 TexReg 604; amended to be effective December 21, 2020, 45 TexReg 9245.</p></note></section></subchapter><subchapter identifier="/us/state/tx/tac/t40/p20/c802/scJ"><num value="J">SUBCHAPTER J</num><heading>LOCAL WORKFORCE DEVELOPMENT AREA APPEALS</heading><section identifier="/us/state/tx/tac/t40/p20/c802/scJ/s802.170"><num value="802.170">§802.170</num><heading>Appeal of Denial of Local Workforce Development Area Certification</heading><content>All appeals of denial of local workforce development area certifications shall be referred to the Texas Workforce Investment Council as described in the Agency's WIOA Combined State Plan.</content><note type="source"><p>Source Note: The provisions of this §802.170 adopted to be effective January 4, 2021, 46 TexReg 195.</p></note></section></subchapter></chapter><chapter identifier="/us/state/tx/tac/t40/p20/c803"><num value="803">CHAPTER 803</num><heading>SKILLS DEVELOPMENT FUND</heading><subchapter identifier="/us/state/tx/tac/t40/p20/c803/scA"><num value="A">SUBCHAPTER A</num><heading>GENERAL PROVISIONS REGARDING THE SKILLS DEVELOPMENT FUND</heading><section identifier="/us/state/tx/tac/t40/p20/c803/scA/s803.1"><num value="803.1">§803.1</num><heading>Scope and Purpose</heading><content>(a) Purpose. The purpose of the Skills Development Fund is to develop customized training projects for businesses and trade unions and to support employers expanding or relocating to Texas by enhancing the ability of public community and technical colleges, Local Workforce Development Boards (Boards), and the Texas A&M Engineering Extension Service (TEEX) to respond to industry and workforce training needs and to develop incentives for Boards, public community and technical colleges, TEEX, or community-based organizations to provide customized assessment and training in a timely and efficient manner.(b) Goal. The goal of the Skills Development Fund is to increase the skills level and wages of the Texas workforce.</content><note type="source"><p>Source Note: The provisions of this §803.1 adopted to be effective January 29, 2003, 28 TexReg 751; amended to be effective January 9, 2006, 31 TexReg 174; amended to be effective January 25, 2021, 46 TexReg 580.</p></note></section><section identifier="/us/state/tx/tac/t40/p20/c803/scA/s803.2"><num value="803.2">§803.2</num><heading>Definitions</heading><content>In addition to the definitions contained in §800.2 of this title, the following words and terms, when used in this chapter, shall have the following meanings unless the context clearly indicates otherwise.(1) Customized training project--A project that:(A) provides workforce training, with the intent of either adding to the workforce or preventing a reduction in the workforce, and is specifically designed to meet the needs and special requirements of:(i) employers and employees or prospective employees of the private business or business consortium; or(ii) members of the trade union; and(B) is designed by a private business or business consortium, or trade union in partnership with:(i) a public community college;(ii) a technical college;(iii) TEEX;(iv) a Board; or(v) a community-based organization only in partnership with the public community and technical colleges or TEEX.(2) Eligible applicant--An entity identified in Texas Labor Code, Chapter 303, as eligible to apply for funds:(A) a public community college;(B) a technical college;(C) TEEX;(D) a Board; or(E) a community-based organization only in partnership with the public community and technical colleges or TEEX.(3) Executive director--The executive director of the Texas Workforce Commission.(4) Grant recipient--A recipient of a Skills Development Fund grant that is:(A) a public community college;(B) a technical college;(C) TEEX;(D) a Board; or(E) a community-based organization only in partnership with the public community and technical colleges or TEEX.(5) Non-local public community and technical college--A public community or technical college providing training outside of its local taxing district.(6) Private partner--A sole proprietorship, partnership, corporation, association, consortium, or private organization that enters into a partnership for a customized training project with:(A) a public community college;(B) a technical college;(C) TEEX;(D) a Board; or(E) a community-based organization only in partnership with the public community and technical colleges or TEEX.(7) Public community college--A state-funded, two-year educational institution primarily serving its local taxing district and service area in Texas and offering vocational, technical, and academic courses for certification or associate's degrees.(8) Public technical college--A state-funded coeducational institution of higher education offering courses of study in vocational and technical education, for certification or associate's degrees.(9) Texas A&M Engineering Extension Service (TEEX)--A higher education agency and service established by the Board of Regents of the Texas A&M University System.(10) Trade union--An organization, agency, or employee committee in which employees participate and which exists for the purpose of dealing with employers concerning grievances, labor disputes, wages, rates of pay, hours of employment, or conditions of work.(11) Training provider--An entity or individual that provides training, including:(A) a public community college;(B) a technical college;(C) TEEX;(D) a community-based organization only in partnership with the public community or technical college or TEEX; or(E) An individual, sole proprietorship, partnership, corporation, association, consortium, governmental subdivision, or public or private organization with whom a Board, public community or technical college, or TEEX has subcontracted to provide training.</content><note type="source"><p>Source Note: The provisions of this §803.2 adopted to be effective January 29, 2003, 28 TexReg 751; amended to be effective January 9, 2006, 31 TexReg 174; amended to be effective January 25, 2021, 46 TexReg 580.</p></note></section><section identifier="/us/state/tx/tac/t40/p20/c803/scA/s803.3"><num value="803.3">§803.3</num><heading>Uses of the Fund</heading><content>(a) The Skills Development Fund may be used by a grant recipient as start-up or emergency funds for the following purposes:(1) to develop customized training projects for businesses and trade unions; and(2) to sponsor small and medium-sized business networks and consortiums for the purpose of developing customized training.(b) TEEX training activities shall focus on projects that are statewide or are not available from a local public community and junior college district, a local technical college, or a consortium of public community and junior college districts. In developing such projects, TEEX may participate in a consortium of public community and junior college districts or with a technical college that provides training under Texas Labor Code, Chapter 303.(c) Technical college training activities shall focus on projects that are not available from a local public community college, except in the technical college's local service area, and shall be encouraged to focus on projects that are statewide.(d) The Skills Development Fund may not be used:(1) to pay the training costs and related costs of an employer that relocates the employer's worksite from one place in Texas to another;(2) for the purchase of any proprietary or production equipment required for the training project of a single local employer;(3) for wages for trainees; or(4) to pay for trainee or instructor travel costs or trainee drug tests.(e) The Skills Development Fund may not be used to pay for the lease of equipment if any one of the following four criteria is characteristic of the lease transaction:(1) The lease transfers ownership of the equipment to the lessee at the end of the lease term;(2) The lease contains a bargain purchase option;(3) The lease term is equal to 75% or more of the estimated economic life of the leased equipment; or(4) The present value of the minimum lease payments at the inception of the lease, excluding executory costs, equals at least 90% of the fair value of the leased equipment.</content><note type="source"><p>Source Note: The provisions of this §803.3 adopted to be effective January 29, 2003, 28 TexReg 751; amended to be effective January 9, 2006, 31 TexReg 174.</p></note></section><section identifier="/us/state/tx/tac/t40/p20/c803/scA/s803.4"><num value="803.4">§803.4</num><heading>Use of Funds to Encourage Employer Expansion and Recruitment</heading><content>(a) Pursuant to Texas Labor Code §303.0031, the Skills Development Fund may be used to provide an intensive and rapid response to, and support services for, employers expanding in or relocating their operations to Texas, with a focus on recruiting employers that will provide complex or high-skilled employment opportunities in the state.(b) Grant funds under this section may be used to:(1) provide leadership and direction to, and connections among, out-of-state employers, economic development organizations, Boards, public community and technical colleges to support employers' recruitment and hiring for complex or high-skilled employment positions as necessary to facilitate the employers' relocation to or expansion of operations in Texas; and(2) award grants to public community or technical colleges that provide workforce training and related support services to employers that commit to establishing a place of business in Texas.(c) Grant funds under this section may be used only to develop:(1) customized workforce training programs for an employer's specific business needs;(2) fast-track curriculum;(3) workforce training--related support services for employers; and(4) instructor certification necessary to provide workforce training.(d) Notwithstanding the use of funds restrictions in §803.3(d)(2), grant funds may also be used to acquire training equipment necessary for instructor certification and employment.(e) As a condition of receiving grant funds under this section, grant recipients shall agree to repay the amount received and any related interest if the Agency determines that the grant recipients did not use the funds for the purposes for which the funds were awarded.</content><note type="source"><p>Source Note: The provisions of this §803.4 adopted to be effective January 25, 2021, 46 TexReg 580.</p></note></section></subchapter><subchapter identifier="/us/state/tx/tac/t40/p20/c803/scB"><num value="B">SUBCHAPTER B</num><heading>PROGRAM ADMINISTRATION</heading><section identifier="/us/state/tx/tac/t40/p20/c803/scB/s803.11"><num value="803.11">§803.11</num><heading>Grant Administration</heading><content>Grant recipients must enter into an agreement with the Agency to comply with contract requirements that include, but are not limited to:(1) submitting all required reports, including financial and performance reports, in the format and time frame required by the Agency;(2) maintaining fiscal data needed for independent verification of expenditures of funds received for the customized training project;(3) cooperating and complying with Agency monitoring activities as required by Chapter 802, Subchapter D, of this title (relating to Agency Monitoring Activities); and(4) submitting contract completion reports:(A) The final payment is contingent upon the executive director's, or designee's, determination that a project has met the training objectives, outcomes, and requirements (an attrition rate of up to 15% of the total number of trainees in the contract is allowed).(B) The final payment of the contract will be withheld for 60 days after the completion of training and after receipt by the Agency of verification from the employer that the trainees are employed.</content><note type="source"><p>Source Note: The provisions of this §803.11 adopted to be effective January 29, 2003, 28 TexReg 751; amended to be effective January 9, 2006, 31 TexReg 174; amended to be effective January 25, 2021, 46 TexReg 580.</p></note></section><section identifier="/us/state/tx/tac/t40/p20/c803/scB/s803.12"><num value="803.12">§803.12</num><heading>Limitations on Awards</heading><content>The Agency may impose any or all of the following limitations on the amount of funds awarded under any specific grant:(1) A limit of $500,000 for the training project of a single employer;(2) A limit of 10% of the grant amount for the allowable purchase of any proprietary or production equipment required for the training project;(3) A limit of 10% for administrative costs related to direct training for the training project of a single employer; or(4) A limit of 15% for administrative costs related to direct training for the training project of entities other than a single employer.</content><note type="source"><p>Source Note: The provisions of this §803.12 adopted to be effective January 29, 2003, 28 TexReg 751; amended to be effective January 9, 2006, 31 TexReg 174.</p></note></section><section identifier="/us/state/tx/tac/t40/p20/c803/scB/s803.13"><num value="803.13">§803.13</num><heading>Program Objectives</heading><content>The program objectives in administering the Skills Development Fund are:(1) to ensure that funds from the program are spent in all local workforce development areas (workforce areas) of this state and expand the state's capacity to respond to workforce training needs;(2) to promote collaboration and awareness of potential workforce activities in workforce areas;(3) to develop projects that, at completion of the training, will result in wages equal to or greater than the prevailing wage of individuals with similar knowledge and experience in that occupation in the local labor market for the participants in the customized training project;(4) to prioritize the processing of grant requests from workforce areas where the unemployment rate is higher than the state's annual average unemployment rate;(5) to sponsor creation and attraction of high-value, high-skill jobs for the state that will facilitate the growth of industry and emerging occupations; and(6) to the greatest extent practicable, award Skills Development Fund grants as follows:(A) Approximately 60 percent of the funds may be for job retention training.(B) The remaining funds may be for training for job creation.</content><note type="source"><p>Source Note: The provisions of this §803.13 adopted to be effective January 29, 2003, 28 TexReg 751; amended to be effective January 9, 2006, 31 TexReg 174; amended to be effective January 25, 2021, 46 TexReg 580.</p></note></section><section identifier="/us/state/tx/tac/t40/p20/c803/scB/s803.14"><num value="803.14">§803.14</num><heading>Procedure for Requesting Funding</heading><content>(a) An eligible applicant shall present to the executive director or his or her designee, an application for funding, in order to acquire grant funds for the provision of customized training as may be identified by the eligible applicant. Except as provided in subsection (b) of this section, the eligible applicant will request the review and comments of the Board in the applicable workforce area(s), where there is a significant impact on job creation or incumbent worker training, and submit these comments to the executive director or his or her designee with the application for funding.(b) An eligible applicant is not required to obtain or provide the comments if the Board informs the applicant that the Board is preparing an application or has submitted an application that has not been approved or rejected. A Board is not required to comment on its own applications.(c) An eligible applicant shall submit any updates to the original application for funding in accordance with subsections (a) and (b) of this section.(d) TEEX, or the public community or technical college that is a partner to a training proposal for a grant from the Skills Development Fund, may be non-local.(e) The training proposal shall not duplicate a training project available in the workforce area in which the private partner or trade union is located.(f) Proposals shall disclose other grant funds sought or awarded from the Agency or other state and federal entities for the proposed job training project.(g) Applicants shall indicate whether they are submitting concurrent proposals for the Skills Development Fund and the Texas Enterprise Fund. For the purposes of this subsection, "concurrent proposal" shall mean:(1) a proposal for the Skills Development Fund that has been submitted and is pending at the time an applicant submits a proposal for the Texas Enterprise Fund; or(2) a proposal for the Texas Enterprise Fund that has been submitted and is pending at the time an applicant submits a proposal for the Skills Development Fund.(h) Proposals shall be written and contain the following information:(1) The number of proposed jobs created and/or retained;(2) A brief outline of the proposed training project, including the skills acquired through training and the employer's involvement in the planning and design;(3) A brief description of the measurable training objectives and outcomes;(4) The occupation and wages for participants who complete the customized training project;(5) A budget summary, disclosing anticipated project costs and resource contributions, including the dollar amount the private partner is willing to commit to the project;(6) A signed agreement between the private partner or trade union and the Board, public community or technical college, or TEEX outlining each entity's roles and responsibilities if a grant is awarded;(7) A statement explaining the basis for the determination that there is an actual or projected labor shortage in the occupation in which the proposed training project will be provided that is not being met by an existing institution or program in the workforce area;(8) A comparison of costs per trainee for the customized training project and costs for similar instruction at the public community or technical college, TEEX, and the Board;(9) A statement describing the private partner's or trade union's equal opportunity employment policy;(10) A list of the proposed employment benefits;(11) An indication of a concurrent proposal as required by subsection (g) of this section; and(12) Any additional information deemed necessary by the Agency to complete evaluation of a proposal.(i) An applicant may, with the approval of the executive director or his or her designee, submit a proposal for funding that does not contain or identify all of the required elements under subsection (h) of this section. The release of any funding is contingent upon the applicant's submission, and the Agency's approval, of all the required elements in subsection (h) of this section.</content><note type="source"><p>Source Note: The provisions of this §803.14 adopted to be effective January 29, 2003, 28 TexReg 751; amended to be effective January 9, 2006, 31 TexReg 174; amended to be effective January 25, 2021, 46 TexReg 580; amended to be effective November 28, 2022, 47 TexReg 7913.</p></note></section><section identifier="/us/state/tx/tac/t40/p20/c803/scB/s803.15"><num value="803.15">§803.15</num><heading>Procedure for Proposal Evaluation</heading><content>(a) The executive director, or designee, shall evaluate each proposal considering the purposes listed in §803.3(a) of this subchapter, the program objectives listed in §803.13 of this subchapter, and procedures in §803.14 of this subchapter, along with the prevailing wage for occupations in the local labor market area, the financial stability of the private partner, the regional economic impact, and any other factors unique to the circumstances that the Agency determines are appropriate.(b) The Agency shall notify all eligible grant applicants when the Agency is evaluating a proposal so as to promote collaboration and awareness of potential workforce activities in the workforce area.(c) If the Agency determines that a proposal is appropriate for funding through the Skills Development Fund, the executive director or designee shall enter into a contract with the grant recipient on behalf of the Agency.(d) Skills Development Fund applicants on corrective action pursuant to Chapter 802, Subchapter G, shall not be eligible to receive a Skills Development Fund grant.</content><note type="source"><p>Source Note: The provisions of this §803.15 adopted to be effective January 29, 2003, 28 TexReg 751; amended to be effective January 9, 2006, 31 TexReg 174; amended to be effective January 25, 2021, 46 TexReg 580.</p></note></section></subchapter><subchapter identifier="/us/state/tx/tac/t40/p20/c803/scC"><num value="C">SUBCHAPTER C</num><heading>PROGRAM ADMINISTRATION AFTER AWARD OF CONTRACT</heading><section identifier="/us/state/tx/tac/t40/p20/c803/scC/s803.31"><num value="803.31">§803.31</num><heading>Notice to Local Workforce Development Board</heading><content>The Agency shall inform the Board in the applicable workforce area of final decisions made regarding Skills Development Fund grants in the workforce area.</content><note type="source"><p>Source Note: The provisions of this §803.31 adopted to be effective January 9, 2006, 31 TexReg 174.</p></note></section><section identifier="/us/state/tx/tac/t40/p20/c803/scC/s803.32"><num value="803.32">§803.32</num><heading>Waivers</heading><content>The executive director, or designee, may suspend or waive a section of this chapter, not statutorily imposed, in whole or in part upon a showing of good cause and a finding that the public interest would be served by such a suspension or waiver.</content><note type="source"><p>Source Note: The provisions of this §803.32 adopted to be effective January 9, 2006, 31 TexReg 174.</p></note></section></subchapter></chapter><chapter identifier="/us/state/tx/tac/t40/p20/c804"><num value="804">CHAPTER 804</num><heading>JOBS AND EDUCATION FOR TEXANS (JET) GRANT PROGRAM</heading><subchapter identifier="/us/state/tx/tac/t40/p20/c804/scA"><num value="A">SUBCHAPTER A</num><heading>DEFINITIONS</heading><section identifier="/us/state/tx/tac/t40/p20/c804/scA/s804.1"><num value="804.1">§804.1</num><heading>Definitions</heading><content>The following words and terms, when used in this chapter, shall have the following meanings unless the context clearly indicates otherwise.(1) Act--Texas Education Code, Chapter 134, Jobs and Education for Texans Grant Program.(2) Advisory board--The advisory board of education and workforce stakeholders created pursuant to the Act.(3) Career and technical education--Organized educational activities that offer a sequence of courses that:(A) provides individuals with coherent and rigorous content aligned with challenging academic standards and relevant technical knowledge and skills needed to prepare for further education and careers in high-demand occupations or emerging industries;(B) includes competency-based applied learning that contributes to the academic knowledge, problem-solving skills, work attitudes, general employability skills, technical skills, and occupation-specific skills, and knowledge of all aspects of an industry, including entrepreneurship, of an individual; or(C) provides a license, a certificate, or a postsecondary degree.(4) Certificate or degree completion--Any grouping of workforce or technical courses in sequential order that, when satisfactorily completed by a student, will entitle the student to a Texas Higher Education Coordinating Board--approved certificate or associate degree from a public technical institute, public junior college, or public state college.(5) Developmental education--Structured courses, tutorials, laboratories, or other proven instructional efforts that successfully prepare students for college level (and therefore work-ready) courses as measured by passing the state-required college entrance exam (or meeting the Texas Success Initiative requirements).(6) Emerging industry--A growing, evolving, or developing industry based on new technological products or concepts.(7) High-demand occupation--A job, profession, skill, or trade for which employers within the state of Texas generally, or within particular regions or cities of the state, have or will have a substantial need. In determining whether there is or will be a substantial need for a particular job, profession, trade, or skill, the Agency may consider occupations identified by the 28 Local Workforce Development Boards (Board-Area Target Occupations Lists) and/or the Agency's labor market projections.(8) JET--The Jobs and Education for Texans Grant Program.(9) Open-enrollment charter school--A Texas public school operated by a charter holder under an open-enrollment charter granted pursuant to Texas Education Code §12.101.(10) Public junior college--Any junior college certified by the Texas Higher Education Coordinating Board in accordance with Texas Education Code §61.003.(11) Public state college--Lamar State College--Orange, Lamar State College--Port Arthur, or Lamar Institute of Technology, in accordance with Texas Education Code §61.003.(12) Public technical institute--The Lamar Institute of Technology or the Texas State Technical College System, in accordance with Texas Education Code §61.003.(13) School district--An independent school district or the Windham School District.</content><note type="source"><p>Source Note: The provisions of this §804.1 adopted to be effective September 1, 2009, 34 TexReg 5959; amended to be effective July 1, 2014, 39 TexReg 4964; transferred effective June 16, 2015, as published in the Texas Register August 7, 2015, 40 TexReg 5066; amended to be effective December 12, 2016, 41 TexReg 9741; amended to be effective May 2, 2022, 47 TexReg 2566; amended to be effective September 23, 2024, 49 TexReg 7636.</p></note></section></subchapter><subchapter identifier="/us/state/tx/tac/t40/p20/c804/scB"><num value="B">SUBCHAPTER B</num><heading>ADVISORY BOARD COMPOSITION, MEETING GUIDELINES</heading><section identifier="/us/state/tx/tac/t40/p20/c804/scB/s804.11"><num value="804.11">§804.11</num><heading>Advisory Board Purpose and Composition</heading><content>(a) The advisory board shall assist the Agency in administering JET.(b) The advisory board is composed of six members who serve two-year terms, and are appointed as follows:(1) one member appointed by the governor;(2) one member appointed by the lieutenant governor;(3) one member appointed by the speaker of the house of representatives;(4) one member appointed by the Coordinating Board;(5) one member appointed by the Commission; and(6) the Commission chair, who serves as the presiding officer.</content><note type="source"><p>Source Note: The provisions of this §804.11 adopted to be effective September 1, 2009, 34 TexReg 5959; transferred effective June 16, 2015, as published in the Texas Register August 7, 2015, 40 TexReg 5066; amended to be effective December 12, 2016, 41 TexReg 9741.</p></note></section><section identifier="/us/state/tx/tac/t40/p20/c804/scB/s804.12"><num value="804.12">§804.12</num><heading>Meetings Required</heading><content>(a) The advisory board is required to meet at least once each quarter, or as needed, to review received applications and recommend awarding grants under this chapter to public junior colleges, public technical institutes, public state colleges, open-enrollment charter schools, and school districts.(b) Meetings shall be subject to the requirements of the Open Meetings Act.</content><note type="source"><p>Source Note: The provisions of this §804.12 adopted to be effective September 1, 2009, 34 TexReg 5959; amended to be effective July 1, 2014, 39 TexReg 4964; transferred effective June 16, 2015, as published in the Texas Register August 7, 2015, 40 TexReg 5066; amended to be effective December 12, 2016, 41 TexReg 9741; amended to be effective May 2, 2022, 47 TexReg 2566; amended to be effective September 23, 2024, 49 TexReg 7636.</p></note></section><section identifier="/us/state/tx/tac/t40/p20/c804/scB/s804.13"><num value="804.13">§804.13</num><heading>General Advisory Board Responsibilities</heading><content>The advisory board shall provide advice and recommend:(1) the manner in which public junior colleges, public technical institutes, public state colleges, open-enrollment charter schools, and school districts apply for JET grants; and(2) the JET grants to be awarded by the Agency.</content><note type="source"><p>Source Note: The provisions of this §804.13 adopted to be effective September 1, 2009, 34 TexReg 5959; amended to be effective July 1, 2014, 39 TexReg 4964; transferred effective June 16, 2015, as published in the Texas Register August 7, 2015, 40 TexReg 5066; amended to be effective December 12, 2016, 41 TexReg 9741; amended to be effective May 2, 2022, 47 TexReg 2566; amended to be effective September 23, 2024, 49 TexReg 7636.</p></note></section></subchapter><subchapter identifier="/us/state/tx/tac/t40/p20/c804/scC"><num value="C">SUBCHAPTER C</num><heading>GRANT PROGRAM</heading><section identifier="/us/state/tx/tac/t40/p20/c804/scC/s804.21"><num value="804.21">§804.21</num><heading>General Statement of Purpose</heading><content>In accordance with the Act, the Agency established JET, which it administers pursuant to the Act and this chapter to award grants from the JET fund for the development of career and technical education programs at public junior colleges, public technical institutes, public state colleges, open-enrollment charter schools, and school districts that meet the requirements of Texas Education Code §134.006 and §134.007.</content><note type="source"><p>Source Note: The provisions of this §804.21 adopted to be effective September 1, 2009, 34 TexReg 5959; amended to be effective July 1, 2014, 39 TexReg 4964; transferred effective June 16, 2015, as published in the Texas Register August 7, 2015, 40 TexReg 5066; amended to be effective December 12, 2016, 41 TexReg 9741; amended to be effective May 2, 2022, 47 TexReg 2566; amended to be effective September 23, 2024, 49 TexReg 7636.</p></note></section><section identifier="/us/state/tx/tac/t40/p20/c804/scC/s804.22"><num value="804.22">§804.22</num><heading>Grant Availability and Application</heading><content>(a) From time to time, the Agency may publish a request for applications for grant funds under this chapter and post a link to the request for applications on the Agency's website. In addition to the respective purpose for the grant program, the request for applications may include:(1) the total grant funds available for award;(2) the minimum and maximum amount of grant funds available for each grant recipient;(3) eligibility criteria;(4) application requirements;(5) grant award and evaluation criteria;(6) any grant requirements in addition to those set forth in this chapter;(7) the date by which the application must be submitted to the Agency;(8) the anticipated date of grant awards; and(9) any other information or instructions necessary and appropriate for awarding the grant as determined by the Agency.(b) To be eligible for a grant award, an applicant meeting the eligibility criteria identified in the request for applications shall submit an application in the form and manner prescribed by the Agency.(c) The Agency may request additional information at any time prior to the grant award in order to effectively evaluate any application.</content><note type="source"><p>Source Note: The provisions of this §804.22 adopted to be effective September 1, 2009, 34 TexReg 5959; transferred effective June 16, 2015, as published in the Texas Register August 7, 2015, 40 TexReg 5066; amended to be effective December 12, 2016, 41 TexReg 9741; amended to be effective September 23, 2024, 49 TexReg 7636.</p></note></section><section identifier="/us/state/tx/tac/t40/p20/c804/scC/s804.23"><num value="804.23">§804.23</num><heading>Grant Award and Acceptance</heading><content>(a) To award a grant, the Agency shall provide a grant contract to the grant recipient that shall contain all the terms and conditions for the use of the grant funds.(b) To receive grant funds, an applicant must execute and return the contract to the Agency.</content><note type="source"><p>Source Note: The provisions of this §804.23 adopted to be effective September 1, 2009, 34 TexReg 5959; transferred effective June 16, 2015, as published in the Texas Register August 7, 2015, 40 TexReg 5066; amended to be effective December 12, 2016, 41 TexReg 9741.</p></note></section><section identifier="/us/state/tx/tac/t40/p20/c804/scC/s804.24"><num value="804.24">§804.24</num><heading>Reporting Requirements</heading><content>A public junior college, public technical institute, public state college, open-enrollment charter school, or school district receiving a grant under this chapter must comply with all reporting requirements of the contract in the frequency and format determined by the Agency in order to maintain eligibility for grant payments. Failure to comply with the reporting requirements may result in termination of the grant award and the entity being ineligible for future grants under this chapter.</content><note type="source"><p>Source Note: The provisions of this §804.24 adopted to be effective September 1, 2009, 34 TexReg 5959; amended to be effective July 1, 2014, 39 TexReg 4964; transferred effective June 16, 2015, as published in the Texas Register August 7, 2015, 40 TexReg 5066; amended to be effective December 12, 2016, 41 TexReg 9741; amended to be effective May 2, 2022, 47 TexReg 2566; amended to be effective September 23, 2024, 49 TexReg 7636.</p></note></section><section identifier="/us/state/tx/tac/t40/p20/c804/scC/s804.25"><num value="804.25">§804.25</num><heading>Enforcement</heading><content>(a) Grant funds must be used in compliance with the terms of the contract for the purposes designated in the contract or will be subject to refund by the grantee, disqualification from receiving further funds under this chapter, or any other available legal remedies. If deemed appropriate, the grantee may also be referred to another department or agency including, but not limited to, the State Auditor's Office and the Agency's Office of Investigations.(b) The Agency may audit the use of funds.</content><note type="source"><p>Source Note: The provisions of this §804.25 adopted to be effective September 1, 2009, 34 TexReg 5959; transferred effective June 16, 2015, as published in the Texas Register August 7, 2015, 40 TexReg 5066; amended to be effective December 12, 2016, 41 TexReg 9741.</p></note></section></subchapter><subchapter identifier="/us/state/tx/tac/t40/p20/c804/scD"><num value="D">SUBCHAPTER D</num><heading>GRANTS TO EDUCATIONAL INSTITUTIONS FOR CAREER AND TECHNICAL EDUCATION PROGRAMS</heading><section identifier="/us/state/tx/tac/t40/p20/c804/scD/s804.41"><num value="804.41">§804.41</num><heading>Grants for Career and Technical Education Programs</heading><content>(a) This subchapter is applicable to JET awards to public junior colleges, public technical institutes, public state colleges, open-enrollment charter schools, and school districts for the development of career and technical education programs that meet the requirements of Texas Education Code, §134.006 and §134.007.(b) A grant received under this subchapter may be used only to:(1) support courses or programs that prepare students for career employment in occupations that are identified by local businesses as being in high demand;(2) finance the initial costs of career and technical education courses or program development, including the costs of purchasing equipment, and other expenses associated with the development of an appropriate course; and(3) finance a career and technical education course or program that leads to a license, certificate, or postsecondary degree.(c) In awarding a grant under this subchapter, the Agency shall primarily consider the potential economic returns to the state from the development of the career and technical education course or program. The Agency may also consider whether the course or program:(1) is part of a new, emerging industry or high-demand occupation;(2) offers new or expanded dual-credit career and technical educational opportunities in public high schools;(3) offers new career and technical educational opportunities not previously available to students enrolled at any campus in the Windham School District; or(4) is provided in cooperation with other public junior colleges, public technical institutes, or public state colleges across existing service areas.(d) A grant recipient shall provide the matching funds as identified in its application.(1) Matching funds may be obtained from any source available to the grant recipient, including industry consortia, community or foundation grants, individual contributions, and local governmental agency operating funds.(2) A grant recipient's matching share may consist of one or more of the following contributions:(A) cash;(B) equipment, equipment use, materials, or supplies;(C) personnel or curriculum development cost; and/or(D) administrative costs that are directly attributable to the project.(3) The matching funds must be expended on the same project for which the grant funds are provided and valued in a manner acceptable or as determined by the Agency.</content><note type="source"><p>Source Note: The provisions of this §804.41 adopted to be effective September 1, 2009, 34 TexReg 5959; transferred effective June 16, 2015, as published in the Texas Register August 7, 2015, 40 TexReg 5066; amended to be effective December 12, 2016, 41 TexReg 9741; amended to be effective May 2, 2022, 47 TexReg 2566; amended to be effective September 23, 2024, 49 TexReg 7636.</p></note></section></subchapter></chapter><chapter identifier="/us/state/tx/tac/t40/p20/c805"><num value="805">CHAPTER 805</num><heading>ADULT EDUCATION AND LITERACY</heading><subchapter identifier="/us/state/tx/tac/t40/p20/c805/scA"><num value="A">SUBCHAPTER A</num><heading>GENERAL PROVISIONS</heading><section identifier="/us/state/tx/tac/t40/p20/c805/scA/s805.1"><num value="805.1">§805.1</num><heading>Purpose</heading><content>(a) The rules contained in this chapter may be cited as the Adult Education and Literacy (AEL) rules.(b) The purpose of the AEL programs is to provide adults with sufficient academic instruction and education services below the postsecondary level to increase an individual's ability to:(1) read, write, and speak in English and perform mathematics or other activities necessary for the attainment of a secondary school diploma or its recognized equivalent;(2) participate in job training and retraining programs or transition to postsecondary education and training; and(3) obtain and retain employment.</content><note type="source"><p>Source Note: The provisions of this §805.1 adopted to be effective February 24, 2014, 39 TexReg 1205; amended to be effective December 16, 2018, 43 TexReg 8150.</p></note></section><section identifier="/us/state/tx/tac/t40/p20/c805/scA/s805.2"><num value="805.2">§805.2</num><heading>Definitions</heading><content>The following words and terms, when used in this chapter, shall have the following meanings, unless the context clearly indicates otherwise.(1) Adult education--Programs, activities, and services that include adult education, literacy, workplace adult education and literacy activities, family literacy activities, English language acquisition activities, integrated English literacy and civics education, workforce preparation activities, or integrated education and training.(2) AEL consortium--A partnership of educational, workforce development, social service entities, and other public and private organizations that agree to partner, collaborate, plan, and apply for funding to provide AEL and related support services. Consortium members shall include an AEL grant recipient, AEL fiscal agent, an AEL lead organization of a consortium, and AEL service provider(s). Consortium members may serve in one or more of the functions in accordance with state statutes and Commission rules.(3) AEL fiscal agent--An entity that is assigned financial management duties as outlined in an Agency-AEL contract or is assigned this function as a member of an AEL consortium.(4) AEL grant recipient--An eligible grant recipient within a local workforce development area (workforce area), as defined in §800.2 of this title, that is awarded AEL funds by the Agency through the statewide procurement process described in §805.41 of this chapter (relating to Procurement and Contracting). The AEL grant recipient also may act as an AEL lead organization of a consortium, AEL fiscal agent, or AEL service provider as designated in an agreement with an AEL consortium.(5) AEL lead organization of a consortium--An organization designated as the AEL consortium manager in a written agreement between AEL consortium members. The AEL lead organization of a consortium is responsible for planning and leadership responsibilities as outlined in the written agreement and also may serve as an AEL grant recipient, AEL fiscal agent, or AEL service provider. If a consortium does not identify the lead organization of a consortium through a written agreement, the AEL grant recipient will be presumed to assume the responsibility of the lead organization of the consortium.(6) AEL service provider--An entity that is eligible to provide AEL services as specified in the Workforce Innovation and Opportunity Act (WIOA) §203(5)/29 United States Code §3272(5) and Texas Labor Code, §315.003.(7) Assessment services--The processes, administration, review, and consultation provided to individuals in accordance with the AEL assessment procedure and other agency guidance that direct placement, progress, achievement, and overall program accountability in AEL and other services, including the identification of potential academic or support service needs.(8) Clock hour--60 minutes.(9) College and career transitional support--Support that may include, but is not limited to, recruiting and outreach, intensive individual case management, career and academic counseling, enrollment and financial aid support, self-advocacy skills development, academic and career support strategies, college and workforce system capacity building, student data records management, and providing access to other support and employment services.(10) Contact time--The cumulative sum of minutes during which an eligible adult student receives instructional, counseling, assessment, or testing services (except for testing services used to determine eligibility) from a staff member supported by federal and state AEL funds as documented by local attendance and reporting records.(A) Student contact time generated by volunteers may be accrued by the AEL program when volunteer services are verifiable by attendance and reporting records and volunteers meet requirements under §805.21 of this chapter (relating to Staff Qualifications and Training).(B) A student contact hour is 60 minutes.(11) Digital literacy skills--The skills associated with:(A) using technology to enable users to find, evaluate, organize, create, and communicate information; and(B) developing digital citizenship and the responsible use of technology.(12) Eligible grant recipient--An entity, as specified in state and federal law, that is eligible to receive AEL program funding. Eligible grant recipients are organizations that have demonstrated effectiveness in providing adult education and literacy activities, and may include:(A) a local educational agency;(B) a community-based organization or faith-based organization;(C) a volunteer literacy organization;(D) an institution of higher education;(E) a public or private nonprofit agency;(F) a library;(G) a public housing authority;(H) a nonprofit institution that is not described in any of subparagraphs (A) - (G) of this paragraph and has the ability to provide adult education and literacy services to eligible individuals;(I) a consortium or coalition of the agencies, organizations, institutions, libraries, or authorities described in any of subparagraphs (A) - (H) of this paragraph; and(J) a partnership between an employer and an entity described in any of subparagraphs (A) - (I) of this paragraph.(13) Literacy--An individual's ability to read, write, and speak in English, and to compute and solve problems at levels of proficiency necessary to function on the job, in the family of the individual, and in society.(14) Principles of adult learning--A wide variety of research-based professional development topics that include instructional and advising characteristics specific to adults, and support the range of knowledge, skills, and abilities adults need to understand and use information, express themselves, act independently, effectively manage a changing world, and meet goals and objectives related to career, family, and community participation. Instructional principles include, but are not limited to, engaging adults and customizing instruction on subjects that have immediate relevance to their career and personal goals and objectives, building on their prior knowledge and experience, and supporting them in taking responsibility for their learning.(15) Proctoring--Support in the administration of tests or pretests under the guidance of a staff member who oversees program assessment services and/or accountability assessment.(16) Professional development--Encompasses all types of facilitated learning activities for instructors and staff of AEL programs and organizations participating in AEL programs and services. Professional development can be face-to-face or virtual and can be a workshop, lecture, presentation, poster session, roundtable discussion, study circle, or demonstration to accomplish a predetermined educational or learning outcome that is tracked in the statewide AEL data management information system.(17) Program year--The AEL program year is July 1 through June 30.(18) Substitute--An instructor who works on call, does not have a full-time assignment, and does not assume permanent responsibilities for class instruction. An individual is considered a substitute if he or she instructs a particular class for four or fewer consecutive class meetings.(19) Support services--Services such as transportation, child care, dependent care, housing, and needs-related payments, which are necessary to enable an individual to participate in activities as defined in WIOA §3(59).(20) Workforce preparation activities--Activities, programs, or services described in WIOA §203(17), which are designed to help an individual acquire a combination of basic academic skills, critical thinking skills, digital literacy skills, and self-management skills, including competencies in utilizing resources, using information, working with others, understanding systems, and obtaining skills necessary for successful transition into and completion of postsecondary education, training, or employment.(21) Workforce training--Services described in WIOA §134(c)(3)(D), including the following:(A) occupational skills training, including training for nontraditional employment;(B) on-the-job training;(C) incumbent worker training;(D) programs that combine workplace training with related instruction, which may include cooperative education programs;(E) training programs operated by the private sector;(F) skill upgrading and retraining;(G) entrepreneurial training;(H) transitional jobs;(I) job readiness training provided in combination with services described in any of subparagraphs (A) - (H) of this paragraph;(J) AEL activities, including activities of English language acquisition and integrated education and training programs, provided concurrently or in combination with services described in any of subparagraphs (A) - (G) of this paragraph; and(K) customized training conducted with a commitment by an employer or group of employers to employ an individual upon successful completion of the training.</content><note type="source"><p>Source Note: The provisions of this §805.2 adopted to be effective February 24, 2014, 39 TexReg 1205; amended to be effective July 20, 2016, 41 TexReg 5231; amended to be effective December 16, 2018, 43 TexReg 8150; amended to be effective November 24, 2022, 47 TexReg 7749.</p></note></section><section identifier="/us/state/tx/tac/t40/p20/c805/scA/s805.3"><num value="805.3">§805.3</num><heading>Federal and State AEL Funds</heading><content>(a) Federal AEL funds may be used for AEL programs for individuals who have attained 16 years of age and who are not enrolled or required to be enrolled in secondary school under state law and:(1) are basic skills deficient;(2) do not have a secondary school diploma or its recognized equivalent, and have not achieved an equivalent level of education; or(3) are English language learners.(b) State AEL funds are to be used for AEL programs for out-of-school individuals who are beyond the compulsory age of attendance unless specifically exempted from compulsory school attendance by Texas Education Code §25.086 and:(1) are basic skills deficient;(2) do not have a secondary school diploma or its recognized equivalent, and have not achieved an equivalent level of education; or(3) are English language learners.(c) The proportion of students served who meet the requirements of subsection (a) of this section, but do not meet the requirements of subsection (b) of this section, shall not exceed the grant recipient's percentage of federal funds to the total allocation.(d) The Commission shall establish annual performance benchmarks for the use of AEL funds.</content><note type="source"><p>Source Note: The provisions of this §805.3 adopted to be effective February 24, 2014, 39 TexReg 1205; amended to be effective July 20, 2016, 41 TexReg 5231; amended to be effective December 16, 2018, 43 TexReg 8150.</p></note></section><section identifier="/us/state/tx/tac/t40/p20/c805/scA/s805.4"><num value="805.4">§805.4</num><heading>Essential Program Components</heading><content>An AEL grant recipient shall ensure that essential program components are provided, as outlined in the grant application for statewide AEL funds, which include:(1) Adult education;(2) Literacy;(3) Workplace adult education and literacy activities;(4) Family literacy activities;(5) English language acquisition services;(6) Integrated English literacy and civics education;(7) Workforce preparation activities, which includes digital literacy skills;(8) Integrated education and training;(9) Assessment and guidance services related to paragraphs (1) - (8) of this section; or(10) Collaboration with multiple partners in the community to expand the services available to adult learners and to prevent duplication of services.</content><note type="source"><p>Source Note: The provisions of this §805.4 adopted to be effective February 24, 2014, 39 TexReg 1205; amended to be effective December 16, 2018, 43 TexReg 8150; amended to be effective November 24, 2022, 47 TexReg 7749.</p></note></section></subchapter><subchapter identifier="/us/state/tx/tac/t40/p20/c805/scB"><num value="B">SUBCHAPTER B</num><heading>STAFF QUALIFICATIONS</heading><section identifier="/us/state/tx/tac/t40/p20/c805/scB/s805.21"><num value="805.21">§805.21</num><heading>Staff Qualifications and Training</heading><content>The requirements of this section shall apply to all AEL staff, excluding clerical and janitorial staff.(1) AEL instructional aides, administrative, data entry, proctoring staff, and staff providing support or employment services to students shall have at least a high school diploma or high school equivalency certificate.(2) AEL directors, supervisors, and staff that oversee program assessment services and/or overall program accountability, and instructors in the content areas of reading, writing, mathematics, and English language acquisition, including substitutes, shall possess at least a bachelor's degree.(3) Workforce training instructors must meet the requirements of the institution and/or the associated accrediting or credentialing entity, if applicable.(4) Requests for exemptions for staff qualification requirements in individual cases:(A) may be submitted to the Agency for approval with a justification outlining extenuating circumstances; and(B) shall be submitted and approved prior to an individual being placed in the position in question.(5) All AEL directors and supervisors, and other staff with program oversight or coordination responsibilities shall receive 15 clock hours of professional development each program year with the following exception: Staff hired on or after January 1 of a program year may require half of the professional development time required for that program year.(6) All AEL instructional staff, including instructional aides providing instruction to students, except substitutes, paid with AEL grant funds or who acquire student contact hours, including volunteers, shall receive at least 15 clock hours of professional development each program year, with the following specifications:(A) Instructors in the content areas of reading, writing, mathematics, and English language acquisition shall:(i) receive three clock hours of training in principles of adult learning;(ii) receive six clock hours in relevant areas of literacy instruction; and(iii) receive the remaining six clock hours of training in content areas at the discretion of the program, but consisting of content related to the AEL program's purpose, which is to provide adults with sufficient basic education that enables them to effectively:(I) acquire the basic educational skills necessary for literate functioning;(II) participate in job training and retraining programs;(III) obtain and retain employment; and(IV) continue their education to at least the level of secondary school completion and postsecondary education preparation; or(iv) waive six clock hours of content area in staff professional development for individuals who have 18 or more college semester undergraduate or graduate credit hours in relevant areas of literacy instruction.(B) Staff, as described in subparagraph (A) of this paragraph, hired on or after January 1 of a program year, may require half of the professional development time required for that program year. For instructors in the content areas of reading, writing, mathematics, and English language acquisition, these hours must include three clock hours of training in principles of adult learning and three clock hours in the relevant areas of literacy instruction.(C) Staff described in this paragraph shall receive at least six clock hours of the required professional development outlined in subparagraph (A)(i) - (iii) of this paragraph within 30 calendar days of providing instructional activities, if new to AEL or to direct student service delivery. The six hours include the required three hours of principles of adult learning and three hours of the relevant areas of literacy instruction. Waiving of the requirements for staff new to direct student services must be approved by Agency AEL staff prior to the individual providing any instructional services.(7) All staff providing support services or college and career transitional support who are paid through an AEL grant shall receive at least three clock hours of professional development each program year.(8) AEL non-instructional support staff, such as, but not limited to, those assigned test proctoring or data entry duties, shall receive at least three clock hours of professional development related to their primary job duties each program year.(9) The requirements for professional development may be reduced by grant recipients in individual cases in which exceptional circumstances prevent employees from completing the required hours of professional development. Exceptional circumstances can include absence from the program or work due to personal health reasons or emergency familial responsibilities, including maternity/paternity. Documentation justifying these circumstances shall be available for monitoring and as requested by AEL staff.(10) Records of staff qualifications and professional development shall be maintained by each grant recipient and shall be available for monitoring.</content><note type="source"><p>Source Note: The provisions of this §805.21 adopted to be effective February 24, 2014, 39 TexReg 1205; amended to be effective July 20, 2016, 41 TexReg 5231; amended to be effective December 16, 2018, 43 TexReg 8150; amended to be effective November 24, 2022, 47 TexReg 7749.</p></note></section></subchapter><subchapter identifier="/us/state/tx/tac/t40/p20/c805/scC"><num value="C">SUBCHAPTER C</num><heading>SERVICE DELIVERY STRUCTURE AND ALIGNMENT</heading><section identifier="/us/state/tx/tac/t40/p20/c805/scC/s805.41"><num value="805.41">§805.41</num><heading>Procurement and Contracting</heading><content>(a) Eligible grant recipients shall compete for funding through a statewide procurement process conducted in accordance with federal and state procurement requirements. AEL funding shall be allocated as set forth in §800.68 and §800.69 of this title.(b) Eligible grant recipients shall apply directly to the Agency using the grant solicitation process, and shall meet all deadlines, requirements, and guidelines set forth in the grant solicitation.(c) Contracts awarded to AEL grant recipients shall be multiyear, at the Commission's discretion. In considering a renewal, the Commission shall take into account performance and other factors.(1) Renewals for years three and beyond are not automatic and are based on meeting or exceeding performance and expenditure benchmarks, or other factors as determined by the Commission.(2) The Agency shall conduct a new competitive statewide procurement at its discretion and when appropriate to ensure that providers can effectively develop, implement, and improve AEL services and programs within the state.(d) Determinations by the Agency in the statewide procurement process will be based on the indicated ability of the eligible grant recipient to effectively perform all services and activities needed to fully comply with contract performance requirements and all contract terms and conditions and may be influenced by factors used to determine the allocation of AEL funds or other objective data or criteria.</content><note type="source"><p>Source Note: The provisions of this §805.41 adopted to be effective February 24, 2014, 39 TexReg 1205; amended to be effective December 16, 2018, 43 TexReg 8150; amended to be effective November 24, 2022, 47 TexReg 7749; amended to be effective February 26, 2024, 49 TexReg 1102.</p></note></section><section identifier="/us/state/tx/tac/t40/p20/c805/scC/s805.42"><num value="805.42">§805.42</num><heading>Program Delivery System</heading><content>(a) There shall be a statewide AEL program delivery system that provides AEL services on a coordinated basis within each workforce area.(b) An eligible grant recipient must apply directly to the Agency for AEL funding.(c) Each eligible grant recipient must demonstrate an ability to:(1) plan and develop a service delivery strategy that includes a broad analysis of the educational, economic, and workforce development trends across the entire workforce area to provide eligible AEL students with comprehensive and locally responsive services; and(2) expand, improve, and coordinate delivery of education, workforce training, workforce development, and support services.(d) Each eligible grant recipient applying for AEL funding on behalf of an AEL consortium must:(1) meet the requirements set forth in subsection (c)(1) - (2) of this section;(2) designate an entity to serve as the AEL lead organization of the consortium; and(3) designate an entity to serve as AEL fiscal agent for the AEL consortium. The AEL fiscal agent is responsible for making and filing all financial reports to the AEL grant recipient that will review all reports and submit to the Agency on behalf of the consortium.(e) An AEL grant application must reflect service delivery strategies for the workforce area. In workforce areas that are heavily populated or have large service regions, the Agency may elect to contract with more than one AEL grant recipient within a workforce area.(f) An AEL grant recipient, awarded AEL funds by the Agency, shall be responsible for performing all services and activities required to fully comply with contract performance requirements and all contract terms and conditions. Responsibilities include, but are not limited, to the following:(1) Communication.(A) The AEL grant recipient shall serve as the point of contact with the Agency.(B) For an AEL consortium, on behalf of AEL consortium members, the AEL grant recipient shall:(i) transmit questions and grant-related needs for AEL consortium members to the Agency; and(ii) carry out the programmatic functions of an AEL grant by communicating regularly with members of the AEL consortium and by sharing information, policy or procedural changes, and technical assistance provided by the Agency to oversee the grant.(2) Monitoring. The AEL grant recipient shall:(A) monitor programmatic and fiscal progress against goals and project deliverables; and(B) timely notify the Agency of problems related to achievement of programmatic and fiscal goals of the grant in accordance with appropriate systems to receive and compile outcome measures and fiscal reports.(3) Technical assistance. The AEL grant recipient shall carry out the programmatic and reporting functions of an AEL grant by providing or requesting technical assistance for its program, or in an AEL consortium for AEL consortium members, related to the design, implementation, and internal evaluation of their AEL services or support services.(4) Professional development. The AEL grant recipient shall plan and coordinate the provision of necessary professional development opportunities for its program, or in an AEL consortium to the AEL consortium members.(5) Reporting. The AEL grant recipient shall:(A) collect and compile all fiscal and programmatic information regarding the activities, expenses, and performance outputs and outcomes of the AEL grant; and(B) submit this information to the Agency.(6) Workforce area coverage.(A) The AEL grant recipient shall ensure that services are provided to the portion of the workforce area designated in the AEL grant application, whether through in-person services or distance learning, or a combination of methods.(B) For an AEL consortium, the AEL grant recipient shall ensure that services are provided to the portion of the workforce area, as designated for the consortium in the AEL grant application, whether through in-person services or distance learning, or a combination of methods.(i) If a consortium member fails to perform in accordance with the AEL consortium's coordinated service delivery plan, the AEL grant recipient shall provide technical assistance, as appropriate;(ii) If a consortium member withdraws from a consortium, the AEL grant recipient shall ensure that a letter of intent to withdraw is provided to the Agency's grant contract manager. The AEL grant recipient shall coordinate with remaining consortium members to develop an alternative proposal for service delivery and submit it to the Agency for approval;(iii) If an AEL lead organization of a consortium withdraws from a consortium or from its role as the lead organization of the consortium, the AEL grant recipient must ensure that a letter of intent to withdraw is provided to the Agency contract manager. The AEL grant recipient must coordinate with remaining consortium members to identify an alternative lead organization of the consortium and submit it to the Agency for approval; and(iv) If, in a workforce area with multiple consortiums that cover the entire workforce area, one or more consortiums withdraws, the AEL grant recipient shall ensure that a letter of intent to withdraw is provided to the Agency's grant contract manager. The Agency will coordinate with the remaining consortiums to develop an alternative proposal for service delivery for the entire workforce area.(g) For an AEL consortium, the Agency reserves the right to reevaluate an AEL grant in light of any change in the AEL consortium membership based on the consortium's continued ability to meet the terms of the original grant award as demonstrated through an alternative proposal. The Agency's reevaluation may include termination of all awards under the AEL consortium if deemed appropriate.(1) If an AEL consortium or AEL consortium member withdraws, the funds and activities committed to in the application shall not be shifted to another AEL consortium, AEL consortium member, or a new institution without written Agency approval.(2) The AEL grant recipient shall contact the Agency's grant contract manager to discuss options for replacement grants within the AEL consortium.</content><note type="source"><p>Source Note: The provisions of this §805.42 adopted to be effective February 24, 2014, 39 TexReg 1205; amended to be effective December 16, 2018, 43 TexReg 8150.</p></note></section><section identifier="/us/state/tx/tac/t40/p20/c805/scC/s805.43"><num value="805.43">§805.43</num><heading>AEL Advisory Committee</heading><content>The Commission shall establish a statewide AEL advisory committee, composed of no more than nine members appointed by the Commission.(1) Committee members shall:(A) have AEL expertise and may include adult educators, providers, advocates, current or former AEL students, and leaders in the nonprofit community engaged in literacy promotion efforts;(B) include at least one representative of the business community and at least one representative of a Local Workforce Development Board; and(C) serve for two-year terms. The Commission shall provide direction when appointing a member to an additional term.(2) Membership shall be reviewed when a member's employment changes to determine whether the individual continues to meet the requirements for membership.(3) The committee shall meet at least quarterly and submit a written report to the Commission on an annual basis.(4) The committee shall select a presiding officer as required by Texas Government Code, Chapter 2110.(5) The committee shall advise the Commission on:(A) the development of:(i) policies and program priorities that support the development of an educated and skilled workforce in the state;(ii) statewide curriculum guidelines and standards for AEL services that ensure a balance of education and workplace skills development;(iii) a statewide strategy for improving student transitions to postsecondary education and career and technical education training; and(iv) a centralized system for collecting and tracking comprehensive data on AEL program performance outcomes;(B) the exploration of potential partnerships with entities in the nonprofit community engaged in literacy-promotion efforts, entities in the business community, and other appropriate entities to improve statewide literacy programs; and(C) any other issue the Commission considers appropriate.</content><note type="source"><p>Source Note: The provisions of this §805.43 adopted to be effective February 24, 2014, 39 TexReg 1205; amended to be effective December 16, 2018, 43 TexReg 8150; amended to be effective November 24, 2022, 47 TexReg 7749.</p></note></section><section identifier="/us/state/tx/tac/t40/p20/c805/scC/s805.44"><num value="805.44">§805.44</num><heading>Match Requirements</heading><content>(a) AEL grant recipients shall provide and document any cash or in-kind match. The match shall be met using nonfederal (i.e., local or state) sources.(b) The cash or in-kind match may be obtained from any state or local source that is fairly evaluated, excluding any sources of federal funds.(c) The match may include allowable costs, including the following:(1) Goods and services;(2) Fair market value of third-party goods and services donated by volunteers and employees or other organizations; and(3) Supplies, equipment, and building space not owned by the AEL fiscal agent.(d) The AEL grant recipient shall maintain auditable records for all expenditures relating to the cash or in-kind match, the same as for funds granted through an approved application.(e) If public funds are used, other than state and federal AEL funds, in AEL instructional programs, the programs may claim a proportionate share of the student contact time as the cash or in-kind match.</content><note type="source"><p>Source Note: The provisions of this §805.44 adopted to be effective February 24, 2014, 39 TexReg 1205.</p></note></section><section identifier="/us/state/tx/tac/t40/p20/c805/scC/s805.45"><num value="805.45">§805.45</num><heading>Tuition and Fees</heading><content>Tuition and fees shall not be charged unless the entity charging them is statutorily authorized to do so. Funds generated by tuition and fees shall be used for the AEL instructional programs, and must be expended before federal and state grant funds, in accordance with 2 CFR §200.305(b)(5).</content><note type="source"><p>Source Note: The provisions of this §805.45 adopted to be effective February 24, 2014, 39 TexReg 1205; amended to be effective December 16, 2018, 43 TexReg 8150.</p></note></section></subchapter><subchapter identifier="/us/state/tx/tac/t40/p20/c805/scD"><num value="D">SUBCHAPTER D</num><heading>OTHER PROVISIONS</heading><section identifier="/us/state/tx/tac/t40/p20/c805/scD/s805.61"><num value="805.61">§805.61</num><heading>Staff Development and Special Projects</heading><content>From the federal funds set aside for state administration, special projects, staff development, and leadership, a portion of funds shall be used to provide training and professional development to organizations that are not currently receiving grants but are providing literacy services.</content><note type="source"><p>Source Note: The provisions of this §805.61 adopted to be effective February 24, 2014, 39 TexReg 1205.</p></note></section></subchapter><subchapter identifier="/us/state/tx/tac/t40/p20/c805/scE"><num value="E">SUBCHAPTER E</num><heading>HIGH SCHOOL EQUIVALENCY SUBSIDY PROGRAM</heading><section identifier="/us/state/tx/tac/t40/p20/c805/scE/s805.71"><num value="805.71">§805.71</num><heading>Purpose</heading><content>The purpose of the high school equivalency subsidy program, as provided in an interagency contract between the Texas Education Agency (TEA) and the Agency, is to provide subsidized high school examination fees to eligible individuals.</content><note type="source"><p>Source Note: The provisions of this §805.71 adopted to be effective December 21, 2020, 45 TexReg 9246.</p></note></section><section identifier="/us/state/tx/tac/t40/p20/c805/scE/s805.72"><num value="805.72">§805.72</num><heading>Definitions</heading><content>The following words and terms, when used in this subchapter, shall have the following meanings, unless the context clearly indicates otherwise.(1) "Eligible high school equivalency subsidy recipient" means a Texas resident who is 21 years of age or older at the time that a voucher for the subsidy is issued to the individual and who lacks a high school diploma or its equivalent.(2) "High school equivalency exam" refers to an exam, as approved by the Texas State Board of Education, for obtaining a Texas Certificate of High School Equivalency (TxCHSE).(3) "Subsidy" is an amount not to exceed the cost of one high school equivalency exam, inclusive of all subject areas, as negotiated by TEA.(4) "Subsidy program" refers to the high school equivalency subsidy program.(5) "Voucher" refers to an electronic or paper-based voucher provided to an eligible individual for taking an individualized high school equivalency test.(6) "Voucher allotment" means the annual allotment of vouchers to grant recipients. The allotment is based on the number of high school equivalency tests taken by the participants of each grant recipient.</content><note type="source"><p>Source Note: The provisions of this §805.72 adopted to be effective December 21, 2020, 45 TexReg 9246.</p></note></section><section identifier="/us/state/tx/tac/t40/p20/c805/scE/s805.73"><num value="805.73">§805.73</num><heading>Implementation</heading><content>(a) When implementing the high school equivalency subsidy program, the Agency will prioritize the subsidy to eligible high school equivalency subsidy recipients who are AEL program participants or former AEL participants within 365 days of their program exit. The Agency may provide the subsidy to eligible high school equivalency subsidy recipients who are not current or former AEL participants, based on a plan approved by the Commission.(b) The Commission will approve an initial voucher allotment to the AEL grant recipient based on high school equivalency test-taking data for the grant recipient.(c) The Commission will approve an initial voucher allotment, by September 1, for each grant recipient. Additionally, the Commission may approve an adjustment of a grant recipient's voucher allotment midyear, or at another time designated by the Commission, based on a grant recipient's voucher usage or demonstrated demand.(d) AEL grant recipients will manage the distribution of vouchers to eligible high school equivalency subsidy recipients and shall confirm the eligibility of a recipient to receive the subsidy via a voucher.</content><note type="source"><p>Source Note: The provisions of this §805.73 adopted to be effective December 21, 2020, 45 TexReg 9246.</p></note></section></subchapter></chapter><chapter identifier="/us/state/tx/tac/t40/p20/c806"><num value="806">CHAPTER 806</num><heading>PURCHASES OF PRODUCTS AND SERVICES FROM PEOPLE WITH DISABILITIES</heading><subchapter identifier="/us/state/tx/tac/t40/p20/c806/scA"><num value="A">SUBCHAPTER A</num><heading>GENERAL PROVISIONS REGARDING PURCHASES OF PRODUCTS AND SERVICES FROM PEOPLE WITH DISABILITIES</heading><section identifier="/us/state/tx/tac/t40/p20/c806/scA/s806.1"><num value="806.1">§806.1</num><heading>General</heading><content>The Texas Workforce Commission is responsible for fulfilling the purpose of Chapter 122 of the Texas Human Resources Code, which is to:(1) further the state's policy of encouraging and assisting individuals with disabilities to achieve maximum personal independence by engaging in useful productive employment activities; and(2) provide state agencies, departments, and institutions and political subdivisions of the state with a method for achieving conformity with requirements of nondiscrimination and affirmative action in employment matters related to individuals with disabilities.</content><note type="source"><p>Source Note: The provisions of this §806.1 adopted to be effective June 12, 2017, 42 TexReg 3003.</p></note></section><section identifier="/us/state/tx/tac/t40/p20/c806/scA/s806.2"><num value="806.2">§806.2</num><heading>Definitions</heading><content>The following words and terms, when used in this chapter, shall have the following meanings unless the context clearly indicates otherwise. "Agency" and "Commission" are defined in §800.2 of this title (relating to Definitions).(1) Appreciable contribution--The term used to refer to the substantial work effort contributed by individuals with disabilities in the reforming of raw materials, assembly of components, or packaging of bulk products in more saleable quantities, by which value is added into the final product offered for sale or through which the individuals with disabilities develop new job skills that have not been previously attained through other jobs.(2) Advisory committee--The Purchasing from People with Disabilities Advisory Committee, established by the Commission, as described in Texas Human Resources Code, §122.0057.(3) Central nonprofit agency (CNA)--An entity designated as a central nonprofit agency under contract pursuant to Texas Human Resources Code, §122.019.(4) Chapter 122--Texas Human Resources Code, Chapter 122, relating to Purchasing from People with Disabilities.(5) Community rehabilitation program (CRP)--A government or nonprofit private program operated under criteria established by the Commission and under which individuals with severe disabilities produce products or perform services for compensation.(6) Comptroller--The Comptroller of Public Accounts.(7) Direct labor--All work required for preparation, processing, and packaging of a product, or work directly relating to the performance of a service, except supervision, administration, inspection, or shipping products.(8) Disability--A disability recognized under the Americans with Disabilities Act that impedes a person who is seeking, entering, or maintaining gainful employment.(9) Exception--Any product or service approved for the state use program purchased from a vendor other than a CRP because the state use product or service does not meet the applicable requirements as to quantity, quality, delivery, life cycle costs, and testing and inspection requirements pursuant to Texas Government Code, §2155.138 and §2155.069 or as described in Texas Human Resources Code, §122.014 and §122.016.(10) Individual with Disabilities--An individual with a disability recognized under the Americans with Disabilities Act and employed by a CRP or an entity selected by a CRP.(11) Minimum wage--The wage under Section 6, Fair Labor Standards Act of 1938 (29 USC §206).(12) State use program--The statutorily authorized mandate requiring state agencies to purchase, on a noncompetitive basis, the products made and services performed by individuals with disabilities, which have been approved by the Agency pursuant to Texas Human Resources Code, Chapter 122 and which also meet the requirements of Texas Government Code, §2155.138 and §2155.069. This program also makes approved products and services available to be purchased on a noncompetitive basis by any political subdivision of the state.(13) Value added--The labor of individuals with disabilities applied to raw materials, components, goods purchased in bulk form resulting in a change in the composition or marketability of component materials, packaging operations, and/or the servicing tasks associated with a product. Pass-throughs are not allowed; therefore, solely affixing a packaging label to a commodity does not qualify.</content><note type="source"><p>Source Note: The provisions of this §806.2 adopted to be effective June 12, 2017, 42 TexReg 3003; amended to be effective January 25, 2021, 46 TexReg 584.</p></note></section></subchapter><subchapter identifier="/us/state/tx/tac/t40/p20/c806/scB"><num value="B">SUBCHAPTER B</num><heading>ADVISORY COMMITTEE RESPONSIBILITIES, MEETING GUIDELINES</heading><section identifier="/us/state/tx/tac/t40/p20/c806/scB/s806.21"><num value="806.21">§806.21</num><heading>Advisory Committee</heading><content>(a) The advisory committee, as described in Texas Human Resources Code §122.0057, shall assist the Commission in establishing:(1) performance goals for the program administered under this chapter; and(2) criteria for certifying a CRP for participation in the program administered under this chapter.(b) The advisory committee shall:(1) establish specific objectives for the program administered under this chapter that are appropriate given the program's status as one of several employment-related services the state offers to individuals with disabilities;(2) develop performance measures that may be used by the Agency to evaluate whether the program is meeting the objectives established under paragraph (1) of this subsection; and(3) recommend criteria for certifying CRPs for participation in the program.(c) In developing the performance measures under subsection (b) of this section, the advisory committee must consider the following factors as applicable to the program administered under this chapter:(1) The percentage of total sales revenue attributable to the program as:(A) paid in wages to individuals with disabilities; and(B) spent on direct training and professional development services for individuals with disabilities;(2) The average hourly wage earned by an individual participating in the program;(3) The average annual salary earned by an individual participating in the program;(4) The number of individuals with disabilities participating in the program paid less than minimum wage and occupations into which such individuals are placed;(5) The average number of hours worked each week by each individual with a disability who participates in the program;(6) The number and percentage of individuals with disabilities who participate in the program and who are placed into competitive positions, including competitive management or administrative positions within CRPs; and(7) The percentage of work performed by individuals with disabilities who participate in the program collectively that is purely repackaging labor, quantified in hours worked and based on actual job performance.(d) The advisory committee shall provide input to the Commission applicable to the program administered under this chapter relating to the employment-first policies described in Texas Government Code §531.02447 and §531.02448.(e) The Agency shall provide administrative support to the advisory committee, including accommodations and supports, as required by law.(f) The advisory committee is not subject to Texas Government Code, Chapter 2110, regarding state agency advisory committees.</content><note type="source"><p>Source Note: The provisions of this §806.21 adopted to be effective June 12, 2017, 42 TexReg 3003.</p></note></section><section identifier="/us/state/tx/tac/t40/p20/c806/scB/s806.22"><num value="806.22">§806.22</num><heading>Open Meetings, Public Testimony and Access</heading><content>The advisory committee, established under Texas Human Resources Code §122.0057, is subject to the requirements of the Open Meetings Law, Texas Government Code, Chapter 551, the Public Information Act, Texas Government Code, Chapter 552, and Texas Government Code, Chapter 2001.</content><note type="source"><p>Source Note: The provisions of this §806.22 adopted to be effective June 12, 2017, 42 TexReg 3003.</p></note></section><section identifier="/us/state/tx/tac/t40/p20/c806/scB/s806.23"><num value="806.23">§806.23</num><heading>Submitting Reports and Input to the Commission</heading><content>(a) The advisory committee shall meet semiannually, with at least one meeting each fiscal year to review and, if necessary, recommend changes to program objectives, performance measures, and criteria established under §806.21(b) of this subchapter.(b) The advisory committee shall prepare and submit to the Commission a report containing any findings and recommendations under subsection (a) of this section within 60 days of the completion of the meeting.</content><note type="source"><p>Source Note: The provisions of this §806.23 adopted to be effective January 25, 2021, 46 TexReg 584.</p></note></section></subchapter><subchapter identifier="/us/state/tx/tac/t40/p20/c806/scC"><num value="C">SUBCHAPTER C</num><heading>CENTRAL NONPROFIT AGENCIES</heading><section identifier="/us/state/tx/tac/t40/p20/c806/scC/s806.31"><num value="806.31">§806.31</num><heading>Contracting with Central Nonprofit Agencies</heading><content>(a) The Agency may select and contract with one or more CNAs and shall contract through a request for proposals for a period not to exceed five years to perform, at a minimum, the duties set forth in Texas Human Resources Code §122.019(a) and (b).(b) The management fee rate charged by a CNA for its services to a CRP and its method of calculation must be approved by the Commission. The maximum management fee rate must be reviewed on an annual basis.(c) A percentage of the management fee described in subsection (b) of this section shall be paid to the Agency. The percentage shall be set by the Commission in the amount necessary to reimburse the general revenue fund for direct and reasonable costs incurred by the Comptroller and the Agency in administering the Comptroller's and the Agency's duties under this chapter, including any costs associated with providing support to the advisory committee.(d) In accordance with Texas Human Resources Code §122.019(c), the Agency shall annually review services by and the performance of a CNA and the revenue required to accomplish the program. The purpose of the review shall be to determine whether a CNA has complied with statutory requirements, contract requirements, and performance standards set forth in §806.32 of this title (relating to performance standards for a CNA).(e) Following the review of a CNA as required by Texas Human Resources Code §122.019(d), the Agency may approve the performance of the CNA and the continuation of the contract through its termination date.(f) For the effective administration of this chapter, the CNA will provide to the Agency, no later than 60 days after the end of each federal fiscal quarter, the following information regarding CRPs that have contracted with the CNA:(1) For CRPs:(A) a collective executive summary of the CRPs annual state use program evaluations;(B) the number of individuals with disabilities, according to their type of disability, who are employed in CRPs participating in the programs established by this chapter or who are employed by businesses or workshops that receive supportive employment from CRPs;(C) the amount of annual wages paid to each employee participating in the program in a format determined by the Agency;(D) a summary of the sale of products offered by the CRPs;(E) a list of products and/or services offered by a CRP;(F) the geographic distribution of CRPs;(G) the number of individuals without disabilities who are employed in CRPs under this chapter; and(H) the average and range of weekly earnings for individuals with disabilities and individuals without disabilities who are employed in CRPs under this chapter; and(2) from each CRP data on individual outplacement or supported employment to include:(A) the number of individuals in outplacement employment;(B) the hourly wage range;(C) the range of hours worked; and(D) the number of individuals with disabilities employed, listed by primary type of disability.(g) In order to conduct the reviews required by Texas Human Resource Code §122.019(c) and §122.019(d), a CNA will provide or make available to the Agency:(1) quarterly reports for each calendar quarter listing CRPs that do not meet criteria for participation in the state use program and the reasons that each CRP listed does not meet the criteria;(2) at least once a year by October 31, and prior to any review and/or renegotiation of the contract:(A) an updated marketing plan;(B) a proposed annual budget with estimated sales, commissions, and expenses;(C) a program budget with details on how the expected revenue and expenses will be allocated to directly support and expand the state use program and other programs that expand direct services and/or the enhancement of employment opportunities for individuals with disabilities; and(D) an audited annual financial statement that shall include information on FDIC coverage of all cash balances, earnings attributed to the management fee for the state use program, accounts receivable, cash reserves, line of credit borrowings, interest payments, bad debt, administrative overhead and any detailed supporting documentation requested by the Agency;(3) quarterly reports of categories of expenditures in reporting format approved by the Agency;(4) records in accordance with Texas Human Resources Code §122.009(a) and §122.0019(d) for audit purposes, consistent with Texas Government Code, Chapter 552, the "Public Information Act"; and(5) any other information the Agency requests as set forth in this chapter.(h) The Agency will post the public information provided under subsections (f) and (g) of this section within 20 days of receipt.(i) Duties of a CNA include, but are not limited to, those listed in Texas Human Resources Code §122.019(a).(j) The services of a CNA may include marketing and marketing support services, such as those identified in §122.019(b). Other duties as designated by the Agency may include:(1) establishing a payment system with a goal to pay CRPs within fourteen (14) to twenty-one (21) calendar days, but not more than thirty (30) days of completion of work and proper invoicing;(2) resolving contract issues and/or problems as they arise between the CRPs and customers of the program, referring those that cannot be resolved to the Agency;(3) maintaining a system that tracks and monitors product and service sales; and(4) tracking and reporting quality and delivery times of products and services.(k) Each year by October 31, a CNA will establish performance goals for the next fiscal year in support of objectives set by the Commission.(l) The Agency may terminate a contract with a CNA if the Agency:(1) finds substantial evidence of the CNA's noncompliance with contractual obligations or of conflict of interest as defined by federal and state laws; and(2) has provided at least 30 days written notice to that CNA of the termination of the contract.(m) The Agency may request an audit by the state auditor of:(1) the management fee set for any CNA; or(2) the financial condition of any CNA.(n) The Commission must annually review the management fees the CRPs are charged by the CNAs. The annual review process includes:(1) sending notice to affected parties, including CRPs;(2) soliciting and considering public comment; and(3) reviewing documentation provided by a CNA, CRP, or the public in support or opposition of a proposed management fee rate change.(o) An individual may not operate a CRP and at the same time contract with the Agency as a CNA.</content><note type="source"><p>Source Note: The provisions of this §806.31 adopted to be effective June 12, 2017, 42 TexReg 3003.</p></note></section><section identifier="/us/state/tx/tac/t40/p20/c806/scC/s806.32"><num value="806.32">§806.32</num><heading>Performance Standards and Goals for a Central Nonprofit Agency</heading><content>(a) A CNA shall meet performance standards in carrying out the terms and conditions of the contract.(b) Operating pursuant to statute and rules, a CNA must manage and coordinate the day-to-day operation of the state use program including, but not limited to, the following activities:(1) Increase employment opportunities for individuals with disabilities, including employment paying minimum wage or higher, by promoting the development of person-centered planning, which documents employment goals, employment counseling, and placement services provided by CRPs;(2) Increase employment opportunities, including those paying minimum wage or higher, for individuals with disabilities by researching new products, services, and markets; improving existing products and services; and reporting to the Agency on a quarterly basis the status of these activities;(3) Work with CRPs to develop employment opportunities;(4) Provide superior customer relations by monitoring customer satisfaction with products and services, responding to customer complaints within one business day or less, and reporting to the Agency on a quarterly basis the level of consumer satisfaction for each CRP, based on complaints as to products or services provided, with a goal of incurring no more than five complaints per year that have not been resolved to customer satisfaction;(5) Provide quarterly regional information workshops to promote the state use program throughout the year and across the state;(6) Provide training programs to CRPs on the requirements to participate in the state use program, governmental contracting, and procurement procedures and laws;(7) Resolve contract issues and/or problems as they arise between the CRPs, the CNA, and/or customers, referring those that cannot be resolved to the Agency and submitting quarterly status reports on issues and referrals;(8) Provide an annual report that includes the CNA's audited financial statements, an updated strategic plan, and an updated projected schedule of expenses that details how the management fee is being allocated to directly support the state use program and what amount of funds are being devoted to expanding direct services to programs that enhance the lives of individuals with disabilities and what percentage of funds will be used for administrative overhead, such as salaries;(9) Demonstrate compliance with state and federal tax laws and payroll laws by submitting quarterly reports of sales and taxes paid to the Texas Comptroller of Public Accounts and the Internal Revenue Service (IRS);(10) Maintain a system in accordance with generally accepted accounting principles that will record information related to purchase orders, invoices, and payments to each CRP to facilitate the preparation and submission of the annual report;(11) Create a database of state agency and political subdivision purchases to promote sales of state use program products and services;(12) Conduct business ethically and submit detailed reports on a quarterly basis of any conflicts between the CRPs and the CNA;(13) Create and maintain automated tracking and monitoring of product/service sales and submit quarterly reports to the Agency regarding delivery turnaround times and contract performance for each CRP;(14) Respond to inquiries about individual sales and/or total sales within five business days or sooner and submit quarterly reports regarding the number of inquiries and average response time in conjunction with the report described in paragraph (12) of this subsection;(15) Maintain knowledge of governmental contracting and procurement processes and laws;(16) Provide general administration of the state use program with performance criteria and timely submission of reports required by these rules;(17) Monitor CRP compliance and promptly report violations to the Agency, offering assistance as needed to achieve compliance; and(18) Maintain and dispose of records in accordance with the laws and directives set forth by the Agency and submit any or all records requested within three weeks of the request. Disclosure to the public of any and all CNA records shall be subject to the Public Information Act.</content><note type="source"><p>Source Note: The provisions of this §806.32 adopted to be effective June 12, 2017, 42 TexReg 3003.</p></note></section></subchapter><subchapter identifier="/us/state/tx/tac/t40/p20/c806/scD"><num value="D">SUBCHAPTER D</num><heading>COMMUNITY REHABILITATION PROGRAMS</heading><section identifier="/us/state/tx/tac/t40/p20/c806/scD/s806.41"><num value="806.41">§806.41</num><heading>Certification and Recertification of Community Rehabilitation Programs</heading><content>(a) No applicant for certification may participate in the state use program prior to the approval of certification.(b) The Commission may recognize programs that are accredited by nationally accepted vocational rehabilitation accrediting organizations and approve CRPs that have been approved by a state's habilitation or rehabilitation agency.(c) The Commission may delegate the administration of the certification process for CRPs to a CNA.(d) An applicant for CRP certification must be a government or nonprofit private program operated under criteria established by the Commission and under which individuals with severe disabilities produce products or perform services for compensation.(e) A certified CRP must:(1) maintain payroll, human resource functions, accounting, and all relevant documentation showing that the employees who produce products or perform services under the state use program are individuals with disabilities;(2) ensure that documentation includes a disability determination that identifies the individual and documents the presence of a disability, in addition to determining program eligibility, and that shall be subject to review at the request of the Agency or the CNA under authority from the Commission, with adherence to privacy and confidentiality standards applicable to such CRP and employee records;(3) maintain and dispose of records or documents required by the Agency, including contracts with other entities, in accordance with generally accepted accounting principles, and all laws relevant to the records;(4) maintain compliance with requirements in subsection (q) of this section, related to Unemployment Insurance tax, wage claims, state licensing, regulatory, and tax requirements. Failure to maintain compliance shall result in revocation of the CRP's certification to participate in the PPD program;(5) ensure that disability determinations conducted under paragraph (2) of this subsection are or were conducted by a medical professional, vocational rehabilitation professional, local education agency, Social Security Administration, or other individual who:(A) has demonstrated the qualifications necessary to make such determinations; and(B) is an independent, non-CRP individual; and(6) provide all communication, training, and planning materials to employees in an accessible format.(f) An applicant for certification must submit a completed application and the required documents to the Agency through the CNA for the state use program. Upon receipt, the CNA will verify the completeness and accuracy of the application. No application will be considered without the following documents:(1) Copy of the IRS nonprofit determination under §501(c), when required by law;(2) Copy of the Articles of Incorporation issued by the Secretary of State, when required by law;(3) List of the board of directors and officers with names, addresses, and telephone numbers;(4) Copy of the organizational chart with job titles and names;(5) Proof of current insurance coverage in the form of a certificate of insurance specifying each and all coverages for the CRP's liability insurance, auto insurance for vehicles owned or leased by the CRP for state use contract purposes, and workers' compensation insurance coverage or legally recognized equivalent coverage, if applicable. Such insurance shall be carried with an insurance company authorized to do business in the State of Texas, and written notice of cancellation or any material change in insurance coverage will be provided to the CNA 10 business days in advance of cancellation or change;(6) Fire inspection certificate issued within one year of the formal consideration of the CRP application, if required by city, county, or state regulations, for each location where customers will be served or where individuals with disabilities will be employed, or a statement of unavailability from the appropriate city, county, or state entity;(7) Copy of the building inspection certificate or certificate of occupancy, if required by city, county, or state regulations, for each location where customers will be served or where individuals with disabilities will be employed, or a statement of unavailability from the appropriate city, county, or state entity;(8) Copy of the wage exemption certificate (WH-228) if below minimum wages will be paid to customers or to individuals with disabilities who will be employed, and a statement of explanation of circumstances requiring subminimum wages;(9) Notarized statement that the CRP agrees to maintain compliance with either the 75 percent minimum percentage or other approved minimum percentage approved by the Commission. The required percentage being that percentage of the CRP's total hours of direct labor, for each contract, necessary to perform services or reform raw materials, assemble components, manufacture, prepare, process and/or package products that will be performed by individuals with documented disabilities consistent with the definition set forth in this chapter.(10) If a CRP intends to seek a required minimum percentage other than the 75 percent of the CRP's total hours of direct labor for a contract, the CRP must submit the request, which shall include a rationale consistent with one or more criteria in §806.53(a)(4) and (b)(3) of this chapter as applicable, with their application for approval; and(11) An applicant for certification must attest that it either has already developed or will develop, within 90 days of certification, a person-centered plan for each individual with a disability it employs that clearly documents attainable employment goals and describes how the CRP will:(A) help the individual reach his or her employment goals; and(B) match the individual's skills and desires with the task(s) being performed for the CRP.(g) The Agency shall review each complete application and all required documentation and, if acceptable, forward its recommendations to the Commission for approval. Once approved, the Agency will notify the CRP in writing and assign the CRP a certification number.(h) A CRP may protest a recommendation of non-approval pursuant to the Agency's appeal process in §806.61 of this chapter.(i) To continue in the program, each CRP must be recertified by the Commission every three years. The recertification process requires submission of all previously requested documentation, a review of reports submitted to the CNA, and a determination that the CRP has maintained compliance with the stated requirements of the state use program, including requirements described in subsection (q) of this section relating to compliance with unemployment taxes, wage claims, and state licensing, regulatory, and tax requirements. If a CRP intends to seek a required minimum percentage other than the 75 percent of the CRP's total hours of direct labor, the CRP must submit the request, which shall include a rationale consistent with one or more criteria in §806.53(a)(4) and (b)(3) of this chapter as applicable, with their recertification. The Commission shall establish a schedule for the recertification process and the CNA shall assist each CRP as necessary to attain recertification. The CRP, after notification, shall submit within 30 days the application for recertification and required documents to the CNA. If the CRP fails to do so, the Agency may request a written explanation and/or the appearance of a representative of the CRP before the Agency. If the CRP fails to respond in a timely manner, the Agency may consider the suspension of all state use program contracts until the recertification process has been completed and approval has been attained.(j) The CRP shall submit quarterly wage and hour reports to the CNA. These reports are due no later than the last day of the month following the end of the quarter. If the CRP fails to submit reports on time, the Agency may request a representative of the CRP to appear before the Agency. The Agency may consider the suspension of the CRP's state use program contracts if compliance is not achieved in a consistent and timely manner.(k) CRPs shall maintain compliance with the state use program regarding percentage requirements related to administrative costs, supply costs, wages, and hours of direct labor necessary to perform services and/or produce products. Compliance will be monitored by the CNA and/or the Agency, and violations will be reported promptly to the Agency. A violation will result in a warning letter from the CNA or Agency, which will then offer assistance as needed to achieve compliance. A CRP that fails to meet compliance requirements, without a waiver from the Agency, for two quarters in any four-quarter period, shall submit a written explanation and a representative of the CRP will be requested to appear before the Agency. State use program contracts may be suspended and/or certification revoked if compliance is not immediately and consistently maintained. To attain reinstatement, the CRP must apply for recertification following the procedures outlined in this chapter.(l) The Agency may review or designate a CNA or third party to review any CRP participating in the state-use program to verify compliance with the requirements outlined in this chapter.(m) A CRP must not serve, in whole or part, as an outlet or front for any entity whose purpose is not the employment of individuals with disabilities.(n) A CRP shall report to the Agency any state agency that is not using the program to benefit individuals with disabilities.(o) A CRP shall promptly report any conflict of interest or receipt of benefit or promise of benefit to the Agency. The Agency will consider such reports on an individual basis. Verified instances of conflict of interest by a CRP may result in suspension of the CRP's eligibility to participate in the state use program and/or revocation of certification.(p) The Commission, the Agency, individual members, the State of Texas, or any other Texas state agency will not be responsible for any loss or losses, financial or otherwise, incurred by a CRP should its product or services not be approved for the state use program as provided by law.(q) A CRP shall:(1) be clear of any debts related to Unemployment Insurance taxes or wage claims; and(2) meet the state licensing, regulatory, and tax requirements applicable to the CRP.</content><note type="source"><p>Source Note: The provisions of this §806.41 adopted to be effective June 12, 2017, 42 TexReg 3003; amended to be effective January 25, 2021, 46 TexReg 584.</p></note></section><section identifier="/us/state/tx/tac/t40/p20/c806/scD/s806.42"><num value="806.42">§806.42</num><heading>Minimum Wage and Exemption Requirements</heading><content>(a) A CRP participating in the program administered under this chapter shall pay each worker with a disability employed by the program at least the federal minimum wage for any work relating to any products or services purchased from the CRP through the program administered under this chapter.(b) The Agency may exempt a CRP from the requirements of this section with respect to a worker with a disability if the Agency determines an exemption is warranted. The Agency may consider the following factors in making the determination:(1) whether requiring the CRP to pay the worker at the minimum wage would result in:(A) the CRP not being able to retain the worker with a disability;(B) the worker not having success obtaining work with a different employer;(C) the worker, based on the worker's circumstances, not being able to obtain employment at a higher wage than the CRP would be able to pay the worker notwithstanding the requirements of this section;(2) the CRP's efforts to retain the worker;(3) the CRP's efforts to assist the worker in finding other employment, including other employment at a higher wage than the CRP will pay;(4) whether the exemption is temporary or indefinite;(5) whether employment services provided by other entities that serve individuals who have significant intellectual or developmental disabilities are available and could assist the worker to obtain employment at or above minimum wage.(c) Subsection (a) of this section does not apply to a CRP's eligibility to participate in the state use program before the later of:(1) September 1, 2022; or(2) the date an extension is granted under §806.103 of this chapter.</content><note type="source"><p>Source Note: The provisions of this §806.42 adopted to be effective January 25, 2021, 46 TexReg 584.</p></note></section></subchapter><subchapter identifier="/us/state/tx/tac/t40/p20/c806/scE"><num value="E">SUBCHAPTER E</num><heading>PRODUCTS AND SERVICES</heading><section identifier="/us/state/tx/tac/t40/p20/c806/scE/s806.51"><num value="806.51">§806.51</num><heading>Product Specifications and Exceptions</heading><content>(a) A product manufactured for sale through the Comptroller to any office, department, institution or agency of the state shall be manufactured or produced according to specifications developed by the Comptroller. If the Comptroller has not developed specifications for a particular product, the production shall be based on commercial or federal specifications in current use by the industry.(b) Requisitions for products and/or services required by state agencies are processed by the Comptroller according to Comptroller rules.(c) An exception from subsection (a) of this section may be made in any case as follows:(1) Under the rules of the Comptroller, the product and/or service so produced or provided does not meet the reasonable requirements of the office, department, institution, or agency; or(2) The requisitions made cannot be reasonably complied with through provision of products and/or services produced by individuals with disabilities.(d) An office, department, institution, or agency may not evade purchasing products and/or services produced or provided by individuals with disabilities by requesting variations from standards adopted by the Comptroller when the products and/or services produced or provided by individuals with disabilities, per established standards, are reasonably adapted to the actual needs of the office, department, institution, or agency and comply with Texas Government Code §2155.138 and §2155.069.(e) The Comptroller shall provide the Agency with a list of items known to have been purchased under the exceptions provided in subsection (c) of this section monthly, in the format adopted by the Agency.(f) The Agency shall review submitted state agency exception reports made available by the Comptroller that list purchase products or services available from a CNA or CRP under this chapter, but purchased from another business that is not a CNA or CRP under this chapter.(g) The Agency shall coordinate with the employee designated by each state agency to assist in attaining future compliance with this chapter, when an agency makes and reports an unjustified purchase or purchases of a product available under the programs authorized under this chapter.</content><note type="source"><p>Source Note: The provisions of this §806.51 adopted to be effective June 12, 2017, 42 TexReg 3003.</p></note></section><section identifier="/us/state/tx/tac/t40/p20/c806/scE/s806.52"><num value="806.52">§806.52</num><heading>Determination of Fair Market Value</heading><content>(a) Pursuant to Texas Human Resources Code, Chapter 122 and Texas Government Code §2155.138, a suitable product and/or service that meets applicable specifications established by the state or its political subdivisions and that is available within the time specified must be procured from a CRP at the price determined by the Commission to be the fair market price under Texas Human Resources Code §122.007.(b) The Agency shall review products, services, and price revisions submitted by the CNA on behalf of participating or prospective CRPs. Due consideration shall be given to the factors set forth in Texas Human Resources Code §122.015, as well as to the extent applicable, the amounts being paid for similar articles in similar quantities by state agencies purchasing the products or services not in the state use program.(c) The Agency may also consider other criteria as necessary to determine the fair market price of the products and/or services, including, but not limited to:(1) changing market conditions;(2) frequency and volume of past state purchases of the particular products and/or services offered;(3) request from a state agency that a CRP develop and provide a particular product and/or service;(4) value added necessary to maximize the employment of people with disabilities; and/or(5) quality comparison between similar products and/or services.(d) The Comptroller shall provide the Agency with the information and resources necessary for the Agency to comply with this section.</content><note type="source"><p>Source Note: The provisions of this §806.52 adopted to be effective June 12, 2017, 42 TexReg 3003.</p></note></section><section identifier="/us/state/tx/tac/t40/p20/c806/scE/s806.53"><num value="806.53">§806.53</num><heading>Recognition and Approval of Community Rehabilitation Program Products and Services</heading><content>(a) A CRP desiring to provide services under the state use program must comply with the following requirements to obtain approval from the Agency's executive director or deputy executive director:(1) A minimum of 35 percent of the contract price of the service must be paid to the individuals with disabilities who perform the service in the form of wages and benefits;(2) Supply costs for the service must not exceed 20 percent of the contract price of the service;(3) Administrative costs allocated to the service must not exceed 10 percent of the contract price for the service. The minimum percentage required by the Agency of the hours of direct labor for each contract necessary to perform a service must be performed by individuals with disabilities;(4) The Commission may establish a different percentage other than 75 percent for each CRP at the time of initial certification or subsequent re-certifications if the Commission determines that a percentage other than 75 percent for the offered service is reasonable based on consideration of factors, including, but not limited to:(A) past practices in a particular area;(B) whether other CRPs providing the same or similar services have required or achieved a different percentage requirement;(C) whether the Commission has established a policy goal to encourage employment of individuals with disabilities in a particular field; and(D) the CRP proposes to offer employment opportunities for individuals with disabilities that meet the WIOA definition of CIE;(5) Any necessary subcontracted services shall be performed to the maximum extent possible by other CRPs and in a manner that maximizes the employment of individuals with disabilities; and(6) A detailed report will be submitted to the Agency providing breakdown of 100 percent of contract dollars for services.(b) A CRP must comply with the following requirements to obtain approval for state use products:(1) Either 75 percent or the minimum percentage required by the Commission of the hours of direct labor, for each contract, necessary to reform raw materials, assemble components, manufacture, prepare, process, and/or package a product, must be performed by individuals with disabilities;(2) Appreciable contribution and value added to the product by individuals with disabilities must be determined to be substantial on a product-by-product basis, based on requested documentation provided to the Agency upon application for a product to be approved for the state use program;(3) The Commission may establish a different percentage from 75 percent for each CRP at the time of initial certification or subsequent re-certifications if the Commission determines that a percentage different from the 75 percent for the offered product is reasonable based on consideration of factors, including, but not limited to:(A) past practices in a particular area;(B) whether other CRPs providing the same or similar products have required or achieved a different percentage requirement;(C) whether the Commission has established a policy goal to promote workplace integration for individuals with disabilities;(D) whether the Commission has established a policy goal to encourage employment of individuals with disabilities in a particular field;(E) the CRP proposes to offer employment opportunities for individuals with disabilities that meet the WIOA definition of CIE; and(4) A detailed report will be submitted to the Agency providing breakdown of 100 percent of contract dollars for products.(c) The rules governing the approval of products to be offered by a CRP apply to all items that a CRP proposes to offer to state agencies or political subdivisions, regardless of the method of acquisition by the agency, whether by sale or lease. A CRP must own any product it leases. A proposal by a CRP to rent or lease a product to a state agency is a proposal to offer a product, not a service, and the item offered must meet the requirements of these rules. If the product is offered for lease by the CRP, the unit cost of the product, for purposes of applying the standards set forth in these rules, is the total cost to the state agency of leasing the product over its expected useful life.(d) Raw materials or components may be obtained from companies operated for profit, but a CRP must own any product that it offers for sale to state agencies or political subdivisions through the state use program and make an appreciable contribution to the product that accounts for a substantial amount of the value added to the product.(e) Prior to the inclusion of a product or service in the program, a CRP must describe the product or service that will be provided through the program in sufficient detail for the Agency to determine the item's suitability for inclusion in the program. The Agency may consider those factors deemed necessary to the determination of the program suitability of a product or service, including, but not limited to, state and federal statutes governing state agencies, geographic saturation of CRPs providing like products and services, and whether the products and services will generate sufficient demand to provide employment for individuals with disabilities.</content><note type="source"><p>Source Note: The provisions of this §806.53 adopted to be effective June 12, 2017, 42 TexReg 3003; amended to be effective January 25, 2021, 46 TexReg 584.</p></note></section></subchapter><subchapter identifier="/us/state/tx/tac/t40/p20/c806/scF"><num value="F">SUBCHAPTER F</num><heading>COMPLAINTS, VENDOR PROTESTS, RESOLUTIONS</heading><section identifier="/us/state/tx/tac/t40/p20/c806/scF/s806.61"><num value="806.61">§806.61</num><heading>Consumer Information; Complaints and Resolution</heading><content>(a) Complaints regarding matters pertaining to this chapter shall be made in writing and addressed to the Agency Deputy Executive Director for review and determination. The written complaint must include the name and address of the person who filed the complaint and the subject matter of the complaint.(b) The Agency shall maintain an information file regarding each complaint.(c) If a written complaint is filed with the Agency, the Agency, at least as frequently as quarterly and until final disposition of the complaint, shall notify the parties to the complaint of the status of the complaint unless the notice would jeopardize an undercover investigation.(d) The Agency shall provide to the individual filing the complaint, and to each individual who is a subject of the complaint, a copy of the Agency's policies and procedures relating to complaint investigation and resolution.(e) Any product or service may be removed or temporarily suspended from the state use program after review and/or investigation of a filed complaint, if the Agency determines that a CRP is:(1) providing products that fail to meet specifications;(2) failing to make a delivery as promised;(3) making unauthorized substitutions;(4) misrepresenting merchandise;(5) failing to make satisfactory adjustments when required; or(6) taking unethical actions; or(7) non-complying with other Agency rules or contract.(f) A product or service that has been temporarily suspended may be reinstated by promptly correcting the reason(s) for suspension. A failure to make the necessary correction promptly may result in the termination of the CRP's contract with the CNA.(g) Complaints shall be resolved by the Agency Deputy Executive Director.</content><note type="source"><p>Source Note: The provisions of this §806.61 adopted to be effective June 12, 2017, 42 TexReg 3003.</p></note></section><section identifier="/us/state/tx/tac/t40/p20/c806/scF/s806.62"><num value="806.62">§806.62</num><heading>Vendor Protests</heading><content>(a) A protest shall be made in writing and received by the Agency within 10 working days after the protesting party knows, or should have known, of the occurrence of the action that is protested.(b) A protest must include:(1) a precise statement of the relevant facts;(2) a statement of any issues (of law or fact) that the protesting party contends must be resolved; and(3) a statement of the argument and authorities that the protesting party offers in support of the protest.(c) A statement that copies of the protest have been mailed or delivered to the using entity and all other identifiable interested parties must be included. The program manager may settle and resolve the dispute over the solicitation or award of a contract at any time before the matter is submitted on appeal to the deputy executive director.(d) If the protest is not resolved by mutual agreement, the division director shall issue a written determination that resolves the protest.(e) The director's determination shall be the Agency's final administrative action.(f) The Agency shall maintain all documentation on the purchasing process that is the subject of a protest or appeal in accordance with its approved records retention schedule.</content><note type="source"><p>Source Note: The provisions of this §806.62 adopted to be effective June 12, 2017, 42 TexReg 3003.</p></note></section></subchapter><subchapter identifier="/us/state/tx/tac/t40/p20/c806/scG"><num value="G">SUBCHAPTER G</num><heading>DISCLOSURE OF RECORDS</heading><section identifier="/us/state/tx/tac/t40/p20/c806/scG/s806.71"><num value="806.71">§806.71</num><heading>Records</heading><content>(a) The Agency shall access financial or other information and records from a CNA or a CRP if the Agency determines the information and records are necessary for the effective administration of this chapter and rules adopted under this chapter.(b) Information and records must be obtained under subsection (a) of this section in recognition of the privacy interest of individuals employed by CNAs or CRPs. The information and records may not be released or made public on subpoena or otherwise, except that release may be made:(1) for statistical purposes, but only if a person is not identified;(2) with the consent of each person identified in the information released; or(3) regarding a compensation package of any CNA employee or subcontractor if determined by the Commission to be relevant to the administration of this chapter.(c) No records belonging to a CNA or a CRP may be accessed or released except as authorized under the Texas Public Information Act.(d) The Agency or a CNA shall inspect a CRP for compliance with certification criteria established under Texas Human Resources Code §122.013(c).</content><note type="source"><p>Source Note: The provisions of this §806.71 adopted to be effective June 12, 2017, 42 TexReg 3003.</p></note></section></subchapter><subchapter identifier="/us/state/tx/tac/t40/p20/c806/scH"><num value="H">SUBCHAPTER H</num><heading>REPORTS; PLANS</heading><section identifier="/us/state/tx/tac/t40/p20/c806/scH/s806.81"><num value="806.81">§806.81</num><heading>Annual Financial Report</heading><content>(a) On or before November 1 of each year, the Agency shall prepare an annual financial report in the form prescribed by Texas Government Code §2101.011, relating to the Commission's activities, and Texas Human Resources Code §122.022 relating to reports, and file the report with the governor and the presiding officer of each house of the legislature.(b) As part of the report filed under subsection (a) of this section, the Agency shall provide:(1) the number of individuals with disabilities, by type of disability, who are employed in CRPs participating in the programs established by this chapter or who are employed by businesses or workshops that receive supportive employment from CRPs;(2) the amount of annual wages paid to a person participating in the program;(3) a summary of the sale of products offered by a CRP;(4) a list of products and services offered by a CRP;(5) the geographic distribution of the CRPs;(6) the number of individuals without disabilities who are employed in CRPs under this chapter; and(7) the average and the range of weekly wages for individuals with disabilities and individuals without disabilities who are employed in CRPs under this chapter.</content><note type="source"><p>Source Note: The provisions of this §806.81 adopted to be effective June 12, 2017, 42 TexReg 3003.</p></note></section><section identifier="/us/state/tx/tac/t40/p20/c806/scH/s806.82"><num value="806.82">§806.82</num><heading>Strategic Plan; Final Operating Plan</heading><content>The Agency shall prepare a strategic plan and a final operating plan relating to the Commission's activities under this chapter, as required by Texas Government Code, Chapter 2054, Subchapter E.</content><note type="source"><p>Source Note: The provisions of this §806.82 adopted to be effective June 12, 2017, 42 TexReg 3003.</p></note></section></subchapter><subchapter identifier="/us/state/tx/tac/t40/p20/c806/scI"><num value="I">SUBCHAPTER I</num><heading>POLITICAL SUBDIVISIONS</heading><section identifier="/us/state/tx/tac/t40/p20/c806/scI/s806.91"><num value="806.91">§806.91</num><heading>Procurement for Political Subdivisions</heading><content>Political subdivisions shall follow procurement rules as required by Texas Human Resources Code §122.017, relating to procurement for political subdivisions.</content><note type="source"><p>Source Note: The provisions of this §806.91 adopted to be effective June 12, 2017, 42 TexReg 3003.</p></note></section><section identifier="/us/state/tx/tac/t40/p20/c806/scI/s806.92"><num value="806.92">§806.92</num><heading>Political Subdivisions Excluded</heading><content>Excluded political subdivisions shall follow procurement rules as required by Texas Human Resources Code §122.018, relating to political subdivisions excluded.</content><note type="source"><p>Source Note: The provisions of this §806.92 adopted to be effective June 12, 2017, 42 TexReg 3003.</p></note></section></subchapter><subchapter identifier="/us/state/tx/tac/t40/p20/c806/scJ"><num value="J">SUBCHAPTER J</num><heading>TRANSITION AND RETENTION PLANS</heading><section identifier="/us/state/tx/tac/t40/p20/c806/scJ/s806.100"><num value="806.100">§806.100</num><heading>Scope and Purpose</heading><content>(a) The purpose of this subchapter is to set forth the rules relating to a CRP's Transition and Retention Plan (TRP), as required by Texas Human Resources Code, §122.0075, to meet the minimum wage requirements of Texas Human Resources Code, §122.0076.(b) This subchapter applies to a CRP that is participating in the state use program and pays workers with disabilities employed by the CRP wages that are less than the federal minimum wage under Section 6, Fair Labor Standards Act of 1938.(c) This subchapter expires September 1, 2023.</content><note type="source"><p>Source Note: The provisions of this §806.100 adopted to be effective January 25, 2021, 46 TexReg 584.</p></note></section><section identifier="/us/state/tx/tac/t40/p20/c806/scJ/s806.101"><num value="806.101">§806.101</num><heading>Requirements for Transition and Retention Plans</heading><content>(a) A CRP subject to this subchapter shall submit a TRP no later than sixty days from the effective date of these rules.(b) The TRP shall include the full transition goal, including full retention of workers, placement of workers in job training, and fully assisting workers in need of placement goal, to meet the wage requirements no later than January 1, 2022.(c) The TRP shall contain the following elements:(1) Worker Assessment (Employee Receiving Subminimum Wages) including the following:(A) Wage difference/Minimum Wage pay gap;(B) Line of business employed;(C) Current skills;(D) Person-Centered Planning and Career Counseling;(E) Disability Benefits Impact Analysis based on wage increase;(F) Opportunities to transfer skills to other state use contracts with CRP; and(G) Participation in the assessment by the employee's Vocational Rehabilitation counselor, if the employee is a participant in the Vocational Rehabilitation program at the time of the assessment.(2) Goals, including the following:(A) Raise wages for workers paid subminimum wage to the federal minimum wage, or more, by September 1, 2022.(B) Retain CRP workers as the CRP moves through the transition plan.(3) Milestones: Achieved by reporting progress in reaching specific actions in the TRP through benchmarks and strategies:(A) Benchmarks, including the following:(i) Number and percentage of workers provided wage increases by a designated point in time;(ii) Number and percentage of workers provided assessment and counseling by a certain date; and(iii) Number and percentage of workers entering and completing training.(B) Strategies necessary to achieve goals, including:(i) CRP evaluation of existing line of business for price and added value adjustment consider increasing the price to pay for increase in wages;(ii) Requesting assistance from WorkQuest in developing new lines of business to provide employment opportunities to workers receiving subminimum wage; and(iii) CRP pursuing partnerships to expand lines of business and increase wages of workers who are paid subminimum wages.(C) Reports: Monthly or quarterly:(i) Retention status;(ii) Progress on benchmarks and strategies;(iii) Wages;(iv) Hours worked.(d) The Agency shall assist the CRP in developing the TRP by providing information about certified benefits counselors and by providing a referral to a certified benefits counselor for any CRP employee who requests a referral.(e) The Agency shall review the progress of each TRP based on intervals established by the Agency, and provide technical assistance as necessary and upon request from the CRP.</content><note type="source"><p>Source Note: The provisions of this §806.101 adopted to be effective January 25, 2021, 46 TexReg 584.</p></note></section><section identifier="/us/state/tx/tac/t40/p20/c806/scJ/s806.102"><num value="806.102">§806.102</num><heading>Extensions for Transition and Retention Plans</heading><content>(a) No later than March 1, 2022, a CRP may request an extension of the TRP.(b) The Agency shall approve or deny all extension requests no later than April 1, 2022.(c) To be granted an extension, the CRP shall:(1) demonstrate that an extension would be in the best interest of the CRP's employees with disabilities;(2) have requested assistance and worked with the Agency prior to requesting an extension;(3) have made meaningful progress toward meeting the minimum wage requirements; and(4) have submitted a revised TRP to the Agency detailing how the extension will allow the CRP to meet the minimum wage requirements.(d) No later than April 10, 2022, a CRP may request that the Agency reconsider an extension denial.(e) The Agency executive director shall review and make a determination on reconsideration requests.(f) The Agency shall make the final decision on all reconsideration requests no later than May 1, 2022.</content><note type="source"><p>Source Note: The provisions of this §806.102 adopted to be effective January 25, 2021, 46 TexReg 584.</p></note></section><section identifier="/us/state/tx/tac/t40/p20/c806/scJ/s806.103"><num value="806.103">§806.103</num><heading>Withdrawal from the Program</heading><content>(a) A CRP shall notify the Agency no later than March 1, 2022, if the CRP intends to voluntarily withdraw from the program.(b) Any requirements on September 1, 2022, or by the granted extension date, will be involuntarily removed by revocation of the CRP's certification to participate in the program.</content><note type="source"><p>Source Note: The provisions of this §806.103 adopted to be effective January 25, 2021, 46 TexReg 584.</p></note></section><section identifier="/us/state/tx/tac/t40/p20/c806/scJ/s806.104"><num value="806.104">§806.104</num><heading>New CRPs during the TRP Period</heading><content>A CRP not meeting the minimum wage requirement that requests certification after the date to request an extension pursuant to §806.102(a) of this subchapter shall be required to meet the minimum wage requirements no later than September 1, 2022.</content><note type="source"><p>Source Note: The provisions of this §806.104 adopted to be effective January 25, 2021, 46 TexReg 584.</p></note></section></subchapter></chapter><chapter identifier="/us/state/tx/tac/t40/p20/c807"><num value="807">CHAPTER 807</num><heading>CAREER SCHOOLS AND COLLEGES</heading><subchapter identifier="/us/state/tx/tac/t40/p20/c807/scA"><num value="A">SUBCHAPTER A</num><heading>GENERAL PROVISIONS</heading><section identifier="/us/state/tx/tac/t40/p20/c807/scA/s807.1"><num value="807.1">§807.1</num><heading>Title and Purpose</heading><content>(a) This chapter may be cited as the Career Schools and Colleges rules.(b) The purpose of this chapter is to implement and interpret the provisions of the Texas Education Code, Chapter 132, Career Schools and Colleges (the Act). The Agency shall evaluate each school according to the standards of practice set forth in the Act and this chapter. The Agency will provide assistance, whenever possible, in complying with this chapter.</content><note type="source"><p>Source Note: The provisions of this §807.1 adopted to be effective August 16, 1998, 23 TexReg 8479; amended to be effective April 26, 2004, 29 TexReg 3970; amended to be effective November 28, 2022, 47 TexReg 7914.</p></note></section><section identifier="/us/state/tx/tac/t40/p20/c807/scA/s807.2"><num value="807.2">§807.2</num><heading>Definitions</heading><content>In addition to the definitions contained in §800.2 of this title, the following words and terms, when used in this chapter, shall have the following meanings unless the context clearly indicates otherwise.(1) Academic quarter--A period of instruction that includes at least ten weeks of instruction, unless otherwise approved by the Agency.(2) Academic semester--A period of instruction that includes at least 15 weeks of instruction, unless otherwise approved by the Agency.(3) Academic term--An academic quarter, academic semester, or other progress evaluation period.(4) Academically related activity--An exam, tutorial, computer-assisted instruction, academic counseling, academic advisement, turning in a class assignment, or attending a study group that is assigned by the institution, or other activity as determined by the Agency.(5) Accountant--An independent certified public accountant properly registered with the appropriate state board of accountancy.(6) Act--Texas Education Code, Chapter 132, Career Schools and Colleges.(7) Address of record--In addition to the mailing address contained in the application for a certificate of approval, each career school or college shall establish an email address of record for a distribution list that consistently maintains a minimum of two current subscribers, with the format of the address to be "School#Director@xdomain," for example, S1111Director@gmail.com.(8) Advertising--Any affirmative act designed to call attention to a school or program for the purpose of encouraging enrollment.(9) Agency--The unit of state government established under Texas Labor Code, Chapter 301, that is presided over by the Commission and administered by the executive director to operate the integrated workforce development system and administer the unemployment compensation insurance program in this state as established under the Texas Unemployment Compensation Act, Texas Labor Code Annotated, Title 4, Subtitle A, as amended. The definition of Agency applies to all uses of the term in this chapter.(10) Appellant--The party or the party's authorized hearing representative who files an appeal from an appealable determination or decision.(11) Asynchronous distance education--Distance education training that the Agency determines is not synchronous.(12) Class, course, or course of instruction--An identifiable unit of organized instruction that is part of a program of instruction.(13) Commission--The body of governance of the Texas Workforce Commission composed of three members appointed by the governor as established under Texas Labor Code, §301.002 that includes one representative of labor, one representative of employers, and one representative of the public. The definition of Commission applies to all uses of the term in this chapter.(14) Coordinating Board--The Texas Higher Education Coordinating Board.(15) Course time or course time hour--A class period that is:(A) a 50-minute to 60-minute lecture, recitation, or class, including a laboratory class or shop training, in a 60-minute period;(B) a 50-minute to 60-minute externship in a 60-minute period; or(C) 60 minutes of preparation in asynchronous distance education.(16) Date of notice--The date the notice is mailed, unless good cause exists for the hearing officer to determine otherwise.(17) Date of request of hearing--The date on which the appellant or the hearing representative filed a written notice of appeal with the Agency by hand delivery, facsimile, or mail. If an appeal is mailed to the Agency, then the appeal is perfected as of the postmark date on the envelope containing the appeal request unless good cause exists for the hearing officer to determine otherwise. If an appeal is delivered by hand or facsimile after 5:00 p.m., the date of request shall be the next day.(18) Distance education course--Either a seminar or a program that is offered to nonresidence school students delivered either synchronously or asynchronously to the student from a remote site.(19) Distance education school--A school that offers only distance education courses.(20) Employment--A graduating or graduate student's employment in the same or substantially similar occupation for which the student was trained.(21) Good reputation--The possession of honesty and truthfulness, trustworthiness and reliability, and a professional commitment to the educational process and the training or preparing of a person for a field of endeavor in a business, trade, technical, or industrial occupation, as well as the condition of being regarded as possessing such qualities. In determining whether a person is of good reputation, the Agency is not limited to the following acts or omissions. The Agency may consider similar acts or omissions and rehabilitation efforts in response to prior convictions in making its determination. A person may be considered to lack good reputation if the person:(A) has been convicted of a felony or any other crime that would constitute risk of harm to the school or students as determined by the Agency;(B) has been successfully sued for fraud or deceptive trade practices, or breach of contract, within the last 10 years;(C) owns or administers a school currently in violation of legal requirements, has owned or administered a school with repeated violations, or has owned or administered a school that closed with violations including, but not limited to, unpaid refunds or administrative penalties; or(D) has falsified or withheld information from the Agency.(22) Hearing--An informal, orderly, and readily available proceeding held before an impartial hearing officer. A party or hearing representative may present evidence to show that the Agency's determination should be reversed, affirmed, or modified.(23) Hearing officer--An Agency employee designated to conduct impartial hearings and issue final administrative decisions.(24) Hearing representative--Any individual authorized by a party to assist the party in presenting the party's appeal. A hearing representative may be legal counsel or another individual. Each party may have a hearing representative to assist in presenting the party's appeal.(25) Human trafficking--The action or practice of illegally transporting people for the purposes of forced labor or commercial sexual exploitation, including all offenses referred to in Texas Penal Code, Chapter 20A.(26) Hybrid program or blended program--A program that has any combination of residence and synchronous distance education offerings.(27) Job placement--An active effort by the school to assist the student in obtaining employment in the same or substantially similar stated occupation for which the student was trained. Active efforts include, but are not limited to, the school:(A) arranging an interview;(B) contacting potential employers; and/or(C) bringing potential employers to the school to assist the student.(28) Master Student Registration List (MSRL)--A comprehensive list with an entry made for any person who signs an enrollment agreement, makes a payment to attend the school, or attends a class. The entry shall be made on the date the first of these events occurs.(29) Military service--Service as a member of the armed forces of the United States, including service in the National Guard or Reserves.(30) Owner--(A) In the case of a career school or college owned by an individual or married couple, that individual or married couple;(B) In the case of a career school or college owned by a partnership, all full, silent, and limited partners;(C) In the case of a limited liability company, all members and managers;(D) In the case of professional associations, the members and governing persons;(E) In the case of a career school or college owned by a corporation, the corporation, its directors, officers, and each shareholder owning shares of issued and outstanding stock aggregating at least 10 percent of the total of the issued and outstanding shares;(F) In the case of a career school or college in which the ownership interest is held in trust, the beneficiary of that trust;(G) In the case of a career school or college owned by another legal entity, a person who owns at least 10 percent ownership interest in the entity; or(H) In all instances, for any entity owned by a parent or holding entity, whether in whole or part, the definition of an owner shall extend to those entities and corresponding person.(31) Owner designee--A person designated in writing by an owner to act on behalf of the ownership, including having signatory authority.(32) Party--The person or entity with the right to participate in a hearing authorized in applicable statute or rule.(33) Program or program of instruction--A postsecondary sequence of organized instruction or study that may lead to an academic, professional, or vocational degree, certificate, or other recognized educational credential.(34) Refund--The completed payment of a refund such that the refund instrument has been negotiated or credited into the proper account(s).(35) Reimbursement contract basis--A school operating, or proposing to operate, under a contract with a state or federal entity in which the school receives payment upon completion of the training.(36) Residence school--A school that offers at least one program that includes classroom instruction or synchronous distance education.(37) Response deadline--Deadlines that fall on a weekend, an official state holiday, a state holiday for which minimal staffing is required, or a federal holiday are extended one working day.(38) Sanctions--Administrative or civil actions, including, but not limited to, penalties, revocation of approvals, or cease and desist orders taken by the Agency against an entity in response to violations of the Act or this chapter.(39) School authorized official--Any identified owner, director, or owner designee of a school.(40) School, educational institution, or training program--A "career school or career college," as defined in the Act, that includes each location where courses of instruction shall be offered.(41) Secondary education--Successful completion of public, private, or home schooling at the high school level or obtainment of a recognized high school equivalency credential, recognized by an institution of higher education or a private or independent institution of higher education, as defined by Texas Education Code, §61.003.(42) Seminar or workshop--A type of program that enhances a student's career, as opposed to a program that teaches the skills and fundamental knowledge required for a stated occupation. A seminar may include a workshop, an introduction to an occupation or cluster of occupations, a short course that teaches part of the skills and knowledge for a particular occupation, language training, continuing professional education, and review for postsecondary examination.(43) Seminar school--A school that offers only seminars.(44) Small school--A "small career school or college" as defined in the Act.(45) Stated occupation--An occupation for which a program is offered that:(A) is recognized by a state or federal law or by a state or federal agency as existing or emerging;(B) is in demand; and(C) requires training to achieve entry-level proficiencies.(46) Student--Any individual solicited, enrolled, or trained in Texas by a school.(47) Subject--An identifiable unit of instruction or study that imparts specific knowledge or skills, which is a subpart of a program or seminar.(48) Suspension of enrollments--A sanction that requires the school to suspend enrollments, re-enrollments, advertising, and solicitation, and to cease, in any way, advising prospective students, either directly or indirectly, of the available courses of instruction.(49) Synchronous distance education--The Agency may determine distance education to be synchronous under the following conditions:(A) the training is conducted simultaneously in real time, or the training is conducted so that the manner of delivery ensures that even if the instructor and student are separated by time, the course time of instruction that the student experiences can be determined; and(B) there is consistent interaction between the student(s) and the instructor on a schedule that includes a definite time for completion of the program and periodic verifiable student completion/performance measures that allow the application of the progress standards of Subchapter L of this chapter and attendance standards of Subchapter M of this chapter.(50) Title IV school--A career school or college that participates in student financial aid programs under Title IV, Higher Education Act of 1965 (20 United States Code Section 1070 et seq.).(51) Tour--A required, in-person inspection of the facilities and equipment pertaining to a course of instruction.(52) Week--Seven consecutive calendar days.</content><note type="source"><p>Source Note: The provisions of this §807.2 adopted to be effective August 16, 1998, 23 TexReg 8479; amended to be effective February 24, 2003, 28 TexReg 1651; amended to be effective April 26, 2004, 29 TexReg 3970; amended to be effective August 28, 2006, 31 TexReg 6803; amended to be effective January 23, 2012, 37 TexReg 200; amended to be effective November 14, 2016, 41 TexReg 9020; amended to be effective December 5, 2017, 42 TexReg 6812; amended to be effective November 28, 2022, 47 TexReg 7914.</p></note></section><section identifier="/us/state/tx/tac/t40/p20/c807/scA/s807.3"><num value="807.3">§807.3</num><heading>Memorandum of Understanding for Regulation of Schools</heading><content>The Act requires the Agency to execute a memorandum of understanding with Trellis Company, formerly known as the Texas Guaranteed Student Loan Corporation, and each state agency regulating schools to reduce default rates at the regulated schools and to improve the overall quality of the programs. Copies of the required memoranda of understanding shall be maintained and made available upon request.</content><note type="source"><p>Source Note: The provisions of this §807.3 adopted to be effective August 16, 1998, 23 TexReg 8479; amended to be effective December 20, 2010, 35 TexReg 11392; amended to be effective November 28, 2022, 47 TexReg 7914.</p></note></section><section identifier="/us/state/tx/tac/t40/p20/c807/scA/s807.4"><num value="807.4">§807.4</num><heading>Waivers</heading><content>(a) Upon a showing of extreme extenuating circumstances, a school governed by this chapter may request a waiver from one or more requirements of this chapter. The Commission shall grant a waiver only upon a specific finding of good cause establishing that:(1) the imposition of the rule requirement from which the waiver is sought would cause undue economic hardship to the school and have a negative impact on the ability of the school to provide the students with the skills and knowledge required for employment;(2) the quality of education shall in no way be diminished or sacrificed by the granting of the waiver; and(3) the granting of the waiver will in no way limit the statutorily required application approval criteria contained in §132.055 of the Act.(b) The Commission may revoke a waiver in the same manner as a revocation of a certificate of approval, if the Commission determines that the criteria contained in this section for a waiver no longer exists.(c) A school may appeal a requested waiver denial or revocation in accordance with the provisions of Subchapter D of the Act.</content><note type="source"><p>Source Note: The provisions of this §807.4 adopted to be effective August 16, 1998, 23 TexReg 8479.</p></note></section><section identifier="/us/state/tx/tac/t40/p20/c807/scA/s807.5"><num value="807.5">§807.5</num><heading>Suspensions</heading><content>The executive director may suspend the operation of one or more of the provisions in this chapter, not statutorily imposed, if he or she finds that a public emergency or imperative public necessity exists, and that the suspension will best serve the public health, safety, or welfare.</content><note type="source"><p>Source Note: The provisions of this §807.5 adopted to be effective November 28, 2022, 47 TexReg 7914.</p></note></section><section identifier="/us/state/tx/tac/t40/p20/c807/scA/s807.6"><num value="807.6">§807.6</num><heading>Application Processing Periods</heading><content>(a) The time periods for processing applications from schools, including small businesses, for certificates of approval shall be in accordance with the following time periods:(1) Initial notification of acceptance or return of original application, to include the reason for the return is 10 days;(2) original certificate of approval--90 days;(3) renewed certificate of approval--45 days from the expiration of the current certificate;(b) In the event the application is not processed in the time periods as stated in this section, the applicant has the right to request of the Commission full reimbursement of all filing fees paid in that particular application process. If the Commission does not agree that the established time periods have been violated or finds that good cause existed for exceeding the established periods, the request will be denied.</content><note type="source"><p>Source Note: The provisions of this §807.6 adopted to be effective August 16, 1998, 23 TexReg 8479; amended to be effective November 28, 2022, 47 TexReg 7914.</p></note></section><section identifier="/us/state/tx/tac/t40/p20/c807/scA/s807.7"><num value="807.7">§807.7</num><heading>Exemptions</heading><content>(a) A school seeking an exemption must apply for approval to the Agency under §132.002 or §132.003 of the Act.(b) A school may appeal the denial or revocation of an exemption in accordance with the provisions of Subchapter D of the Act.(c) Schools shall be required to provide documentation and additional information, as requested by the Agency, to facilitate the determination of whether a school meets the requirements of an exemption set out in the Act. All requests for exemption must provide:(1) the school's legal name, physical address, telephone number, and website, if applicable, along with the name and phone number of the ownership and owner partners; and(2) the name, objective, length, and cost of the course(s) offered.</content><note type="source"><p>Source Note: The provisions of this §807.7 adopted to be effective September 17, 2007, 32 TexReg 6378; amended to be effective November 14, 2016, 41 TexReg 9020; amended to be effective November 28, 2022, 47 TexReg 7914.</p></note></section><section identifier="/us/state/tx/tac/t40/p20/c807/scA/s807.8"><num value="807.8">§807.8</num><heading>Confidentiality of Information</heading><content>All student-specific information obtained from or about any school by the Agency, including, but not limited to, data submitted under §807.284(a) of this chapter, is confidential information and not releasable, and is not public information under Texas Government Code, Chapter 552, but may be compiled and reported to the public at a summary level of information that does not include the personally identifiable information of any student or allow for the identification of any student through combination with other publicly available information.</content><note type="source"><p>Source Note: The provisions of this §807.3 adopted to be January 23, 2012, 37 TexReg 200; amended to be effective November 28, 2022, 47 TexReg 7914.</p></note></section></subchapter><subchapter identifier="/us/state/tx/tac/t40/p20/c807/scB"><num value="B">SUBCHAPTER B</num><heading>CERTIFICATES OF APPROVAL</heading><section identifier="/us/state/tx/tac/t40/p20/c807/scB/s807.11"><num value="807.11">§807.11</num><heading>Original Approvals</heading><content>(a) A complete application for an original certificate of approval shall consist of the following:(1) a completed application form provided by the Agency;(2) complete and correct financial statements, as specified in this chapter, demonstrating the school is financially stable and capable of fulfilling its commitments for training;(3) the application fee as specified in this chapter; and(4) any other revisions or evidence necessary to bring the school's application for approval to a current and accurate status as requested by the Agency.(b) Schools shall fully satisfy the Agency application requirements within 90 days of receipt of the original application, or else the application may be considered withdrawn.(c) If a school fails to respond to a request for additional information within 21 days, the Agency may withdraw the application.(d) To reapply, a school shall submit:(1) a complete application as required in subsection (a) of this section, including applicable fees; and(2) an affidavit stating that the school will not reopen until it has been issued a Certificate of Approval.</content><note type="source"><p>Source Note: The provisions of this §807.11 adopted to be effective August 16, 1998, 23 TexReg 8479; amended to be effective April 26, 2004, 29 TexReg 3970; amended to be effective December 20, 2010, 35 TexReg 11392; amended to be effective November 14, 2016, 41 TexReg 9020; amended to be effective November 28, 2022, 47 TexReg 7914.</p></note></section><section identifier="/us/state/tx/tac/t40/p20/c807/scB/s807.12"><num value="807.12">§807.12</num><heading>Renewal</heading><content>(a) For small schools holding a multiyear certificate, the certificate of approval shall be renewed at least every three years, or more frequently as determined by the Agency. A complete application for renewal of a certificate of approval shall consist of the following:(1) complete and correct annual financial statements, as specified in this chapter, demonstrating the school is financially stable and capable of fulfilling its commitments for training;(2) the renewal fee specified in this chapter; and(3) any other revisions or evidence necessary to bring the school's application for approval to a current and accurate status as requested by the Agency.(b) For all other schools, the certificate of approval shall be renewed annually. A complete application for renewal of a certificate of approval shall consist of the following:(1) a completed application for renewal form provided by the Agency;(2) complete and correct annual financial statements for the most recent fiscal year demonstrating the school is financially stable and capable of fulfilling its commitments for training;(3) the renewal fee specified by this chapter; and(4) any other revisions or evidence necessary to bring the school's application for approval to a current and accurate status as requested by the Agency.(c) The effective, expiration, and issuance dates are indicated on the certificate of approval. The Agency may reflect the date of renewal as the date following the date of expiration of the prior certificate of approval, if the school submitted a timely request for renewal and met all of the requirements contained in this chapter for renewal.(d) The complete renewal application shall be postmarked on or before the due date as indicated in the Act.</content><note type="source"><p>Source Note: The provisions of this §807.12 adopted to be effective August 16, 1998, 23 TexReg 8479; amended to be effective April 26, 2004, 29 TexReg 3970; amended to be effective November 28, 2022, 47 TexReg 7914.</p></note></section><section identifier="/us/state/tx/tac/t40/p20/c807/scB/s807.13"><num value="807.13">§807.13</num><heading>Change in Ownership</heading><content>(a) The Agency may consider the addition or deletion of any person defined as an owner under the Act as a change in school ownership. The school may notify the Agency of the change in ownership a minimum of 45 days before the change in ownership to request that the Agency in lieu of a full application accept a partial application.(b) The Agency may require submission of a full application for approval for a change in ownership if:(1) the Agency has a reasonable basis to believe the change in ownership of the school may significantly affect the school's continued ability to meet the criteria for approval; or(2) the school fails to file notice of the change of ownership at least 45 days prior to the ownership transfer.(c) The Agency may require a partial application for approval for a change in ownership if the Agency reasonably believes the change in ownership will not significantly affect the school's continued ability to meet the criteria for approval.(d) The purchaser of a school shall accept responsibility for all refund liabilities.(e) Management Agreements must be disclosed to the Agency. Parties to a management agreement shall be of good reputation and character.</content><note type="source"><p>Source Note: The provisions of this §807.13 adopted to be effective August 16, 1998, 23 TexReg 8479; amended to be effective February 24, 2003, 28 TexReg 1651; amended to be effective November 28, 2022, 47 TexReg 7914.</p></note></section><section identifier="/us/state/tx/tac/t40/p20/c807/scB/s807.14"><num value="807.14">§807.14</num><heading>Locations</heading><content>(a) A school shall obtain a certificate of approval for each location where courses of instruction will be offered, unless the school has a certificate of approval and meets one of the exceptions in this section.(b) The Agency may approve the following as exempt from applying for approval for a new or additional location, if requested at least 30 days in advance:(1) seminars, including preparation for licensing examinations, educational institution entrance examinations, and reading improvement;(2) classes at facilities used for additional classrooms for instructional services only, which are within a one-mile radius of the main campus and are dependent on the main campus for administration, supervision, fiscal control, and student services; or(3) short-term programs. Short term programs:(A) include course time of 200 hours or less of instruction; and(B) are conducted with at least a 90-day interval between cessation of one program and the beginning of the next.(c) The school shall file an application for a certificate of approval to reflect a new or additional location, including all documents deemed necessary by the Agency, and the appropriate fee. The Agency may issue the certificate of approval after inspection of the new facilities.(d) If the Agency determines that a move of the school presents an unreasonable transportation hardship which would prevent a student from completing the training at the new location, the school shall provide a full refund of all monies paid and a release from all obligations to the student.</content><note type="source"><p>Source Note: The provisions of this §807.14 adopted to be effective August 16, 1998, 23 TexReg 8479; amended to be effective February 24, 2003, 28 TexReg 1651; amended to be effective August 28, 2006, 31 TexReg 6803; amended to be effective November 28, 2022, 47 TexReg 7914.</p></note></section><section identifier="/us/state/tx/tac/t40/p20/c807/scB/s807.15"><num value="807.15">§807.15</num><heading>Notification of Actions</heading><content>(a) Unless otherwise instructed by the Agency, a school shall notify the Agency in writing of any legal action to which the school, any of its owners, representatives, or management employees is a party.(b) A school shall notify the Agency in writing of any legal action described in this section no later than five business days after the action is known to be filed or the school, owner, representative, or management employee is served.(c) An owner shall notify the Agency in writing no later than five business days of each instance of:(1) lease or mortgage default; or(2) lease or mortgage payment(s) being past due greater than 30 days.(d) A school shall include, with the notice required in this section, a file-marked copy of the legal notice, petition, complaint, or other legal instrument, including copies of any judgments.(e) A school shall notify the Agency in writing no later than five business days after receiving notice of any change in accreditation status or Title IV status, including but not limited to, Heightened Cash Monitoring 1 or 2, loss of eligibility, composite score, 90/10 ratio or default rate problems, or other similar changes.</content><note type="source"><p>Source Note: The provisions of this §807.15 adopted to be effective August 16, 1998, 23 TexReg 8479; amended to be effective November 14, 2016, 41 TexReg 9020; amended to be effective November 28, 2022, 47 TexReg 7914.</p></note></section><section identifier="/us/state/tx/tac/t40/p20/c807/scB/s807.16"><num value="807.16">§807.16</num><heading>Degrees</heading><content>(a) For approval to grant degrees, the school shall make application to the Coordinating Board.(b) The Agency may recognize the approval to grant degrees upon receipt of notice issued by the Coordinating Board and the school's accreditor.</content><note type="source"><p>Source Note: The provisions of this §807.16 adopted to be effective August 16, 1998, 23 TexReg 8479; amended to be effective April 26, 2004, 29 TexReg 3970; amended to be effective December 20, 2010, 35 TexReg 11392; amended to be effective November 28, 2022, 47 TexReg 7914.</p></note></section><section identifier="/us/state/tx/tac/t40/p20/c807/scB/s807.17"><num value="807.17">§807.17</num><heading>Unlicensed Schools</heading><content>If a career school or college, as defined in the Act, operates, solicits, or enrolls students, or conducts any course of instruction before receiving a certificate of approval or an exemption from the Agency, the Agency may take one or more of the following actions:(1) assess a penalty;(2) require full refunds to all students; or(3) issue a cease and desist order.</content><note type="source"><p>Source Note: The provisions of this §807.17 adopted to be effective January 23, 2012, 37 TexReg 200; amended to be effective November 28, 2022, 47 TexReg 7914.</p></note></section></subchapter><subchapter identifier="/us/state/tx/tac/t40/p20/c807/scC"><num value="C">SUBCHAPTER C</num><heading>FINANCIAL REQUIREMENTS</heading><section identifier="/us/state/tx/tac/t40/p20/c807/scC/s807.31"><num value="807.31">§807.31</num><heading>Definitions Relating to Financial Requirements</heading><content>The following words and terms, when used in this subchapter, shall have the following meanings unless the context clearly indicates otherwise.(1) Attest services--An audit, review, compilation, or other assurance engagement that must be performed in accordance with standards promulgated by the American Institute of Certified Public Accountants or other Commission-recognized accountancy organization.(2) GAAP--Generally Accepted Accounting Principles.(3) GAAS--Generally Accepted Auditing Standards.(4) Sworn statement--A notarized statement including the following language: "I swear or affirm that the information in these statements is true and correct to the best of my knowledge."(5) Unearned tuition affidavit--A statement of the highest amount of unearned tuition at any time during the most recent fiscal year and the gross amount minus refunds of student tuition and fees earned during the fiscal year in all courses approved under the Act.</content><note type="source"><p>Source Note: The provisions of this §807.31 adopted to be effective August 16, 1998, 23 TexReg 8479; amended to be effective April 26, 2004, 29 TexReg 3970; amended to be effective November 28, 2022, 47 TexReg 7914.</p></note></section><section identifier="/us/state/tx/tac/t40/p20/c807/scC/s807.32"><num value="807.32">§807.32</num><heading>Financial Standards</heading><content>(a) The balance sheet required in this subchapter shall, at a minimum, reflect the following:(1) positive equity or net worth balance;(2) a current ratio of at least one-to-one; and(3) stockholder's equity or net worth exceeding the amount shown for goodwill, if applicable, under assets in the balance sheet.(b) All financial statements shall be accompanied by the unearned tuition affidavit and owner's sworn statement certifying that the unearned tuition affidavit and financial statements are true and correct.(c) All financial statements shall be prepared in accordance with GAAP.(d) All financial statement attest services shall be completed in accordance with GAAS, or other standards promulgated by the American Institute of Certified Public Accountants, as applicable, and comply with jurisdictional laws.(e) A school that maintains a financial responsibility composite score that meets the general standards established in federal regulations by the United States Department of Education for postsecondary institutions participating in student financial assistance programs authorized under Title IV of the Higher Education Act of 1965, as amended, shall be considered to have met the financial standards of this subchapter. A school that qualifies under an alternative standard but not the general standard of these federal regulations will not be considered to have met the financial standards of this subchapter unless the school meets the other requirements stated in this subchapter.</content><note type="source"><p>Source Note: The provisions of this §807.32 adopted to be effective August 16, 1998, 23 TexReg 8479; amended to be effective February 24, 2003, 28 TexReg 1651; amended to be effective November 28, 2022, 47 TexReg 7914.</p></note></section><section identifier="/us/state/tx/tac/t40/p20/c807/scC/s807.33"><num value="807.33">§807.33</num><heading>Financial Requirements for Original Approvals</heading><content>(a) The prospective owner shall furnish the Agency with the following:(1) for a school owned by a sole proprietor, a reviewed personal balance sheet with notes that disclose the amount of payments for the next five years to meet debt agreements as required by GAAP; or(2) for all other ownership structures, an audited balance sheet consistent with GAAP and GAAS.(b) The school shall submit a balance sheet, a list of the expected school-related expenses for the first three full calendar months of operation of the school, and a sworn statement signed by the owner affirming the availability of sufficient cash to cover projected expenses at the date of licensure. Projected expenses may include the following:(1) employee salaries, including withholding, unemployment taxes, and any other related expenses;(2) lease payments for equipment;(3) lease payments for facilities;(4) accounting, legal, and other specifically identified professional fees; and(5) an estimate of other expenses such as advertising, travel, textbooks, office supplies, classroom supplies, printing, telephone, utilities, taxes, and sales commissions.(c) The school shall submit a projection of the gross amount of tuition and fees to be collected during each of the first two years of operation.(d) The prospective owner shall also furnish such other evidence as may be deemed appropriate by the Agency to establish financial stability.</content><note type="source"><p>Source Note: The provisions of this §807.33 adopted to be effective August 16, 1998, 23 TexReg 8479; amended to be effective April 26, 2004, 29 TexReg 3970; amended to be effective November 28, 2022, 47 TexReg 7914.</p></note></section><section identifier="/us/state/tx/tac/t40/p20/c807/scC/s807.34"><num value="807.34">§807.34</num><heading>Financial Requirements for Changes in Ownership</heading><content>Prior to a change in ownership of a school, the purchaser shall furnish the Agency a balance sheet meeting the requirements outlined in this subchapter for original approvals, excluding the sufficient cash requirement for initial expenses. The purchaser shall furnish any other evidence deemed appropriate by the Agency to establish financial stability.</content><note type="source"><p>Source Note: The provisions of this §807.34 adopted to be effective August 16, 1998, 23 TexReg 8479; amended to be effective November 28, 2022, 47 TexReg 7914.</p></note></section><section identifier="/us/state/tx/tac/t40/p20/c807/scC/s807.35"><num value="807.35">§807.35</num><heading>Financial Requirements for Annual Reporting</heading><content>(a) A school shall submit annual financial statements as set forth in this section that shall be:(1) audited;(2) reviewed (except for the first renewal, which must be audited or compiled); or(3) compiled, containing at least one note disclosing the current and long-term liabilities. This note shall be similar to that required by GAAP for reviewed and audited statements. Compiled statements are acceptable under the following conditions:(A) the gross annual revenue from student tuition and fees, less refunds, is less than or equal to $100,000; or(B) the programs are less than 30 consecutive calendar days in length.(b) Each school shall furnish true and correct financial statements annually and not later than 180 days from the close of the school's fiscal year. These statements shall include the following:(1) balance sheet;(2) statement of results of operation, which includes a statement of income and retained earnings;(3) statement of cash flows; and(4) the gross amount minus refunds of annual student tuition and fees for each school, separated from other revenues unrelated to training.(c) A school with a gross annual revenue from student tuition and fees, less refunds, less than or equal to $100,000 may submit all of the following in lieu of the financial statements required in this section:(1) an unearned tuition affidavit;(2) a copy of the annual federal income tax form(s) filed specifically for the business; and(3) an owner's sworn statement certifying that the unearned tuition affidavit and the copy of the annual federal income tax form(s) are true and correct.(d) A school that is a subsidiary of a corporation may submit, in lieu of the statements required in this section, the annual audited financial statements of the parent corporation provided that:(1) said statements are accompanied by an audited list of any student tuition refunds payable by the subsidiary school at the close of its fiscal year. The statements shall also be accompanied by an owner's sworn statement reflecting the gross amount minus refunds of student tuition and fees earned during the fiscal year on all programs approved under the Act; and(2) the parent corporation ensures that each student enrolled in the subsidiary school receives either the training agreed upon or a refund as provided in the Act and submits either a certified resolution of its board of directors to this effect or any other evidence as deemed appropriate by the Agency to establish financial responsibility by the parent corporation.(e) A school or college that fails to provide financial statements that comply with the requirements in this section and the standards identified in §807.32 of this subchapter, within 60 days of the date that they receive notice of any deficiencies, may have their certificate of approval revoked.</content><note type="source"><p>Source Note: The provisions of this §807.35 adopted to be effective August 16, 1998, 23 TexReg 8479; amended to be effective February 24, 2003, 28 TexReg 1651; amended to be effective April 26, 2004, 29 TexReg 3970; amended to be effective November 28, 2022, 47 TexReg 7914.</p></note></section><section identifier="/us/state/tx/tac/t40/p20/c807/scC/s807.36"><num value="807.36">§807.36</num><heading>Interim Financial Statements</heading><content>If a school chooses to submit interim financial statements in addition to the annual financial statements to establish financial stability, those interim statements shall meet the minimum requirements of this subchapter.</content><note type="source"><p>Source Note: The provisions of this §807.36 adopted to be effective August 16, 1998, 23 TexReg 8479.</p></note></section><section identifier="/us/state/tx/tac/t40/p20/c807/scC/s807.37"><num value="807.37">§807.37</num><heading>Agency Ordered Audits</heading><content>If the Agency determines that reasonable cause exists to question the validity of any financial information submitted, or the financial stability of the school, the Agency may order at the school's expense:(1) an audit of a school's financial statements in accordance with this subchapter; and(2) the owner to furnish any other evidence deemed appropriate by the Agency to establish financial stability. Failure of a career school or college to provide compliant financial statements or other evidence required by the Agency, by the date noted in such order, may result in revocation of its certificate of approval.</content><note type="source"><p>Source Note: The provisions of this §807.37 adopted to be effective August 16, 1998, 23 TexReg 8479; amended to be effective November 28, 2022, 47 TexReg 7914.</p></note></section></subchapter><subchapter identifier="/us/state/tx/tac/t40/p20/c807/scD"><num value="D">SUBCHAPTER D</num><heading>REPRESENTATIVES</heading><section identifier="/us/state/tx/tac/t40/p20/c807/scD/s807.51"><num value="807.51">§807.51</num><heading>Representative Requirements</heading><content>(a) All school personnel soliciting or enrolling students must be registered as a representative. This registration requirement does not apply to individuals owning and operating a school in the capacity as a sole proprietor, joint venturer, or general partner, due to their direct nature of ownership.(b) The school shall apply annually to register representatives on forms provided by the Agency and with the appropriate fee.(c) A representative shall be of good reputation and under the control of the school and is deemed to be the agent of the school. The school is responsible for any representations or misrepresentations, expressed or implied, made by a representative.(d) Any student solicited or enrolled by an unregistered representative is entitled to a refund of all monies paid and a release from all obligations to the school. Any contract signed by a prospective student as a result of solicitation or enrollment by an unregistered representative is null and void and unenforceable.(e) Representatives shall participate in training approved by the Agency that covers the Act and Commission rules relative to representatives, admissions, advertising, and any other topics as required by the Agency to support the legal and ethical solicitation and enrollment of students.</content><note type="source"><p>Source Note: The provisions of this §807.51 adopted to be effective August 16, 1998, 23 TexReg 8479; amended to be effective January 23, 2012, 37 TexReg 200; amended to be effective November 28, 2022, 47 TexReg 7914.</p></note></section><section identifier="/us/state/tx/tac/t40/p20/c807/scD/s807.52"><num value="807.52">§807.52</num><heading>Representative Standards</heading><content>A representative shall:(1) have sufficient knowledge of the school to provide complete and accurate information regarding the school to prospective students;(2) refer questions about financial aid and entrance testing to the appropriate school officials; and(3) invite the student applicant to tour the school's facilities, inspect equipment, and speak with students.</content><note type="source"><p>Source Note: The provisions of this §807.52 adopted to be effective August 16, 1998, 23 TexReg 8479.</p></note></section><section identifier="/us/state/tx/tac/t40/p20/c807/scD/s807.53"><num value="807.53">§807.53</num><heading>Representative Limitations</heading><content>(a) The representative shall not begin solicitation of students until the school receives notice of approval for the school and registration of the representative from the Agency.(b) Employees and other agents of recruiting firms shall not serve as representatives.(c) A representative shall not:(1) offer as an inducement or enticement any material consideration to a prospective student prior to enrollment, such as cash, food, housing, or gifts;(2) administer the entrance test;(3) advise students about financial aid, other than informing the students of the general availability of financial aid;(4) give false, misleading, or deceptive information about any aspect of the school's operation, courses, programs, completion or employment rates, examination success rates, job placement, or salary potential;(5) concurrently solicit for or represent more than one school, unless the owner of each school being represented is informed that the representative is also soliciting for or representing other schools;(6) engage in acts or practices that have a tendency to intimidate, coerce, or mislead a prospective student into accepting an enrollment;(7) represent that a school, course, or program has sponsorship, credentials, approval, characteristics, credit transferability, uses, benefits, or qualities that it does not have;(8) discredit another school or its courses or programs by false or misleading representation of facts;(9) solicit enrollments in a course or program that has not been approved by the Agency;(10) solicit students for a school through an employment agency;(11) omit advising students on the school's policies and procedures regarding granting of credit; or(12) violate any legal requirement or prohibition contained in the Act or this chapter.</content><note type="source"><p>Source Note: The provisions of this §807.53 adopted to be effective August 16, 1998, 23 TexReg 8479; amended to be effective November 28, 2022, 47 TexReg 7914.</p></note></section><section identifier="/us/state/tx/tac/t40/p20/c807/scD/s807.54"><num value="807.54">§807.54</num><heading>Representative Compliance</heading><content>The Agency may hold representatives liable for violations of statute, Commission rules, policies, and procedures notwithstanding §807.51(c) of this subchapter. Violations may result in sanctions up to and including revocation of approval to serve as a representative in Texas, in accordance with the matrix in this section.Attached Graphic</content><note type="source"><p>Source Note: The provisions of this §807.54 adopted to be effective January 23, 2012, 37 TexReg 200; amended to be effective November 28, 2022, 47 TexReg 7914.</p></note></section></subchapter><subchapter identifier="/us/state/tx/tac/t40/p20/c807/scE"><num value="E">SUBCHAPTER E</num><heading>SCHOOL DIRECTOR AND ADMINISTRATIVE STAFF</heading><section identifier="/us/state/tx/tac/t40/p20/c807/scE/s807.61"><num value="807.61">§807.61</num><heading>School Director Requirements</heading><content>(a) Each school shall designate one person as the school director.(b) A person may not concurrently serve as a school director for more than one school.(c) A school director must be physically present at the school's location for a majority of the time the school is open for regular operation.</content><note type="source"><p>Source Note: The provisions of this §807.61 adopted to be effective August 16, 1998, 23 TexReg 8479; amended to be effective April 26, 2004, 29 TexReg 3970.</p></note></section><section identifier="/us/state/tx/tac/t40/p20/c807/scE/s807.62"><num value="807.62">§807.62</num><heading>School Director Qualifications and Duties</heading><content>(a) A school director shall be of good reputation. A school director of a small school must have at minimum one year of administration or management experience. A school director of other than a small school must have at minimum five years of administration or management experience or at least two years of experience as a director of a career school or college. An equivalent duration of higher education, college or university, may be substituted, year for year, for administration or management experience.(b) The school shall obtain Agency approval for the school director before employment of the school director.(c) The school director is responsible for the courses of instruction, organization of classes, designation of a liaison for Agency compliance visits, maintenance of the school facilities and proper administrative records, and all other matters related to the administration of the school, as determined by the Agency.(d) The Agency may require the school director to attend additional training to continue approved director status if a school has more than one substantiated complaint from students during a one-year period. If the school has repeat violations from a previous year under the same director, the Agency may revoke the approval of the school director.(e) The school director shall:(1) ensure that all facilities, including housing endorsed by the school, comply with local, city, county, municipal, state, and federal regulations such as, but not limited to, fire, building, and sanitation codes; and(2) inspect facilities, including housing, before endorsement.</content><note type="source"><p>Source Note: The provisions of this §807.62 adopted to be effective August 16, 1998, 23 TexReg 8479; amended to be effective August 28, 2006, 31 TexReg 6803; amended to be effective November 14, 2016, 41 TexReg 9020; amended to be effective November 28, 2022, 47 TexReg 7914.</p></note></section><section identifier="/us/state/tx/tac/t40/p20/c807/scE/s807.63"><num value="807.63">§807.63</num><heading>Acting School Director</heading><content>(a) The Agency may allow a school to designate an acting school director for a period not to exceed 90 days or as otherwise approved by the Agency, who is:(1) a currently approved school director at another location with the same owner to facilitate the approval process at a new location;(2) a new school director pending approval by the Agency; or(3) required by an emergency as determined by the Agency.(b) The school shall provide written notice to the Agency, delivered by the end of the first day following the appointment of the acting school director.</content><note type="source"><p>Source Note: The provisions of this §807.63 adopted to be effective August 16, 1998, 23 TexReg 8479; amended to be effective November 28, 2022, 47 TexReg 7914.</p></note></section><section identifier="/us/state/tx/tac/t40/p20/c807/scE/s807.64"><num value="807.64">§807.64</num><heading>Director of Education Requirements</heading><content>(a) A school may have a director of education.(b) If the school employs a director of education, the director shall meet the same qualifications as an instructor and, in addition, shall have:(1) one year of employment as a postsecondary instructor;(2) one year of supervisory employment experience; and(3) a bachelor's degree, appropriate for the skills required, as determined by the Agency.</content><note type="source"><p>Source Note: The provisions of this §807.64 adopted to be effective August 16, 1998, 23 TexReg 8479; amended to be effective August 28, 2006, 31 TexReg 6803; amended to be effective November 28, 2022, 47 TexReg 7914.</p></note></section><section identifier="/us/state/tx/tac/t40/p20/c807/scE/s807.65"><num value="807.65">§807.65</num><heading>Director of Degree Programs Requirements</heading><content>(a) A school with a degree program shall have a director of the degree programs as required by the Coordinating Board.(b) A director of degree programs shall be of good reputation.</content><note type="source"><p>Source Note: The provisions of this §807.65 adopted to be effective August 16, 1998, 23 TexReg 8479; amended to be effective April 26, 2004, 29 TexReg 3970.</p></note></section><section identifier="/us/state/tx/tac/t40/p20/c807/scE/s807.66"><num value="807.66">§807.66</num><heading>Director of Admissions Requirements</heading><content>(a) A school may have a director of admissions.(b) If the school employs a director of admissions, the director shall be of good reputation and, in addition, shall have:(1) one year of management or administration experience; and(2) one year of admissions experience.</content><note type="source"><p>Source Note: The provisions of this §807.66 adopted to be effective effective August 28, 2006, 31 TexReg 6803; amended to be effective November 28, 2022, 47 TexReg 7914.</p></note></section></subchapter><subchapter identifier="/us/state/tx/tac/t40/p20/c807/scF"><num value="F">SUBCHAPTER F</num><heading>INSTRUCTORS</heading><section identifier="/us/state/tx/tac/t40/p20/c807/scF/s807.81"><num value="807.81">§807.81</num><heading>Instructor Qualifications</heading><content>(a) The instructor shall be of good reputation and shall not be a current student in the same or similar course of instruction, as determined by the Agency, in which the instructor teaches.(b) Instructors shall possess and affirm on forms provided by the Agency that the instructor has one of the following qualifications that applies to the subject area to be taught. In such cases where the practical experience is gained on a seasonal basis as an industry standard, the season of at least three full calendar months of experience shall be considered as one year of experience.(1) The instructor has a master's degree or higher that:(A) includes satisfactory completion of six semester credit hours or eight quarter credit hours in the subject to be taught;(B) includes satisfactory completion of three semester credit hours or four quarter credit hours in the subject area and one year of related practical experience within the ten years immediately preceding employment by the school, if the subject to be taught is in a technical field;(C) includes satisfactory completion of three semester credit hours, or four quarter credit hours in the subject area to be taught, if the subject to be taught is in a nontechnical field; or(D) is supplemented by one year of related practical experience in the subject to be taught within the ten years immediately preceding employment by the school, if the subject to be taught is in a nontechnical field.(2) The instructor has a bachelor's degree that:(A) includes satisfactory completion of nine semester hours or 12 quarter hours related to the subject area to be taught;(B) includes satisfactory completion of six semester credit hours or eight quarter credit hours in the subject area to be taught and one year of related practical experience within the ten years immediately preceding employment by the school, if the subject to be taught is in a technical field;(C) includes satisfactory completion of three semester credit hours or four quarter credit hours in the subject area and one year of related practical experience within the ten years immediately preceding employment by the school, if the subject to be taught is in a nontechnical field; or(D) is supplemented by two years of related practical experience within the ten years immediately preceding employment by the school.(3) The instructor has an associate degree that:(A) includes satisfactory completion of nine semester credit hours or 12 quarter hours in the subject area to be taught and two years of related practical experience within the ten years immediately preceding employment by the school; or(B) is supplemented by three years of related practical experience within the ten years immediately preceding employment by the school.(4) The instructor has a secondary education that includes a certificate of completion from a recognized postsecondary school for a program with course time of at least 900 hours in a relevant course area and four years of related practical experience within the ten years immediately preceding employment by the school; or(5) The instructor has proof of satisfactory completion of secondary education and five years of related practical experience within the ten years immediately preceding employment by the school.(c) In addition to the other applicable requirements for instructors, including the good reputation requirement, the following qualifications apply to the specific instructors listed in this subsection.(1) The Agency requires that a court reporting instructor of only machine shorthand theory and speedbuilding shall have:(A) an associate degree or higher and certificate of completion of machine shorthand theory requirements in an accredited court reporting program;(B) an associate degree in court reporting from any state-recognized school;(C) a Registered Professional Reporter or Certified Shorthand Reporter certification from any state; or(D) a certificate of completion of a court reporting program from a state-certified school.(2) The Agency requires that a court procedures and technology instructor shall have:(A) a Registered Professional Reporter or Certified Shorthand Reporter certification; and(B) one year of court reporting experience.(3) The Agency requires that a modeling instructor shall have, at a minimum:(A) a secondary education and certificate of completion from a modeling program of at least 45 hours of course time from a state recognized school and at least five verifiable paid modeling jobs completed within the past five years; or(B) a secondary education and at least ten verifiable paid modeling jobs completed within the past five years.(4) The Agency requires that a truck driving instructor shall have, at a minimum:(A) a secondary education;(B) certified proof of successful completion of course time of 40 hours in safety education and driver training as required by this chapter; and(C) three years of full-time tractor trailer driving experience within the ten years immediately preceding employment by the school.(5) The Agency requires that a bartending instructor shall be certified by the Texas Alcoholic Beverage Commission as having completed the required seller training program.(d) The director shall ensure that an instructor applicant demonstrates sufficient language proficiency to teach the class for which the instructor is applying to teach.(e) For those instructors who return to the school prior to one full year of absence, and who will be teaching the same subjects as previously approved, the school shall document the leave and reinstatement dates in the instructor's personnel file. When an instructor begins teaching new subjects or the absence was more than one year, the school shall submit a new application to the Agency.</content><note type="source"><p>Source Note: The provisions of this §807.81 adopted to be effective August 16, 1998, 23 TexReg 8479; amended to be effective February 24, 2003, 28 TexReg 1651; amended to be effective August 28, 2006, 31 TexReg 6803; amended to be effective December 20, 2010, 35 TexReg 11392; amended to be effective November 28, 2022, 47 TexReg 7914.</p></note></section><section identifier="/us/state/tx/tac/t40/p20/c807/scF/s807.82"><num value="807.82">§807.82</num><heading>Temporary Instructors</heading><content>(a) The Agency may allow a school to use a previously unapproved instructor to teach temporarily for a period not to exceed 90 days.(b) In such circumstances, the school shall provide written notice to the Agency delivered no later than the first day the temporary instructor begins teaching. The notice shall include:(1) the subject(s) to be taught;(2) the name of the temporary instructor;(3) the reason for the temporary instructor; and(4) any other information as required by the Agency.(c) The temporary instructor shall have sufficient practical experience or education in the subject area to be taught and shall not have been previously disapproved to teach the class.(d) There shall be no more than one temporary instructor per academic term in an individual subject, unless specifically approved in advance by the Agency.(e) Failure to comply with this section may result in sanctions, a full refund to all students attending such classes, or both.</content><note type="source"><p>Source Note: The provisions of this §807.82 adopted to be effective August 16, 1998, 23 TexReg 8479; amended to be effective August 28, 2006, 31 TexReg 6803; amended to be effective January 23, 2012, 37 TexReg 200; amended to be effective November 28, 2022, 47 TexReg 7914.</p></note></section><section identifier="/us/state/tx/tac/t40/p20/c807/scF/s807.83"><num value="807.83">§807.83</num><heading>Instructor Application</heading><content>(a) A school that has been licensed for at least one year and is accredited by an agency recognized by the United States Secretary of Education is not required to submit instructor applications to the Agency for approval. Documentation that the instructor meets the requirements of this chapter must be kept on file at the school and available for review immediately upon request.(b) The school shall file an application for approval of an instructor on forms provided by the Agency in accordance with the following criteria and ensure that the instructor is of good reputation.(1) The application shall be postmarked within five calendar days of employment as an instructor subject to the conditions outlined in this subchapter. A school may employ an instructor pending approval by the Agency.(2) Depending upon the qualifications indicated on the application, the application shall include one or more of the following:(A) a legible copy of the postsecondary certificate or degree, or a transcript indicating appropriate coursework completed, as applicable;(B) proof of a current occupational license; and(C) proof of secondary education.(c) A school with degree programs shall ensure that instructors are of good reputation and meet all the qualifications required by the Coordinating Board.(d) The Agency may approve a variance from the specific qualifications contained in §807.81 of this subchapter with sufficient justification and an assurance that the program quality will not be lessened.(e) The Agency may consider current approvals of instructors by other Texas state agencies responsible for approval and regulation of the program, or any professional certifications held by the instructor when submitted with the Agency's instructor application. The Agency will accept notification, in lieu of a new instructor application, for any instructor that has a current approval by the Agency to teach the same classes at other schools that have the same owners.(f) The Agency may require the school director of an accredited school to file applications for instructors if there have been two substantiated complaints regarding instructors in the previous year, or if the school is unable to produce, when requested, documentation that all instructors meet the requirements of this subchapter.(g) The Agency may require a school director to submit and receive approvals for instructor applications in advance of employing the instructors for a period of one year if the school has had three instructor applications finally disapproved within the previous two years.</content><note type="source"><p>Source Note: The provisions of this §807.83 adopted to be effective August 16, 1998, 23 TexReg 8479; amended to be effective February 24, 2003, 28 TexReg 1651; amended to be effective August 28, 2006, 31 TexReg 6803; amended to be effective November 28, 2022, 47 TexReg 7914.</p></note></section><section identifier="/us/state/tx/tac/t40/p20/c807/scF/s807.84"><num value="807.84">§807.84</num><heading>School Responsibilities Regarding Instructors</heading><content>(a) The school shall ensure that an appropriate number of instructors, as determined by the Agency, have proper licensure or certificates required for the stated occupation's objective. The holder of the license or certificate shall actively participate in course development and revisions.(b) The school shall ensure continuity of instruction through reasonable retention of instructors to provide students with a quality education.(c) The school director or director of education shall formally evaluate each instructor in writing at least annually, subject to review by the Agency.(d) The school director or director of education shall ensure that students are allowed the opportunity to formally evaluate each instructor, including temporary instructors, in writing at least annually and incorporate said evaluation in the instructor's overall evaluation. These student evaluations are subject to review by the Agency.(e) The school shall ensure that classes are taught only by approved instructors. Failure to meet this requirement may entitle students to a refund and may subject the school to sanctions.</content><note type="source"><p>Source Note: The provisions of this §807.84 adopted to be effective August 16, 1998, 23 TexReg 8479; amended to be effective August 28, 2006, 31 TexReg 6803; amended to be effective November 28, 2022, 47 TexReg 7914.</p></note></section></subchapter><subchapter identifier="/us/state/tx/tac/t40/p20/c807/scG"><num value="G">SUBCHAPTER G</num><heading>STAFF EDUCATION REQUIREMENTS</heading><section identifier="/us/state/tx/tac/t40/p20/c807/scG/s807.101"><num value="807.101">§807.101</num><heading>Initial Training</heading><content>(a) A school director shall demonstrate a proficiency of the knowledge required to operate a school before final Agency approval may be granted.(b) The school shall provide in-service training within the first three full calendar months of teaching to those instructors hired lacking teaching experience. In-service training includes planned professional development opportunities that enable inexperienced instructors to learn and develop effective teaching strategies and skills. Topics shall include competency-based training, instructional methods, adult learning styles, and student learning and skills assessment. Competency-based training specifies the skills and skill levels required to complete a training program, develops and organizes teaching and learning methods to enable students to achieve the identified skills and levels of proficiency, and uses criterion-referenced evaluation to measure achievement.</content><note type="source"><p>Source Note: The provisions of this §807.101 adopted to be effective August 28, 2006, 31 TexReg 6803; amended to be effective November 28, 2022, 47 TexReg 7914.</p></note></section><section identifier="/us/state/tx/tac/t40/p20/c807/scG/s807.102"><num value="807.102">§807.102</num><heading>Continuing Education</heading><content>(a) In selecting continuing education training, the school shall consider the factors set out in §132.0551 of the Act. A school's selection of a continuing education provider is subject to approval by the Agency.(b) The school shall implement, maintain, and update annually a written plan for staff development, which includes at a minimum, continuing education, staff meetings, attendance at trade and professional conferences, and observation of, or participation in, on-the-job activities.(c) Each school director and director of admissions shall complete a minimum of six hours of course time of continuing education applicable to the position within 12 months of employment in the position and each calendar year thereafter.(d) The school shall provide and document in-service training that provides updates on skills, knowledge, and technology required by business and industry for those instructors who have taught for two years but have not gained relevant work experience during the two-year period.</content><note type="source"><p>Source Note: The provisions of this §807.102 adopted to be effective August 28, 2006, 31 TexReg 6803; amended to be effective November 28, 2022, 47 TexReg 7914.</p></note></section><section identifier="/us/state/tx/tac/t40/p20/c807/scG/s807.103"><num value="807.103">§807.103</num><heading>Record Keeping</heading><content>The school shall:(1) maintain records of any continuing education or training received by its officials or personnel indicating for which position the training was received;(2) maintain records of any continuing education or training for officials or personnel for five years; and(3) retain the records on the premises of the school or college so the records are immediately available for review.</content><note type="source"><p>Source Note: The provisions of this §807.103 adopted to be effective August 28, 2006, 31 TexReg 6803.</p></note></section></subchapter><subchapter identifier="/us/state/tx/tac/t40/p20/c807/scH"><num value="H">SUBCHAPTER H</num><heading>COURSES OF INSTRUCTION</heading><section identifier="/us/state/tx/tac/t40/p20/c807/scH/s807.121"><num value="807.121">§807.121</num><heading>Definitions Relating to Programs of Instruction</heading><content>The following words and terms, when used in this subchapter, shall have the following meanings unless the context clearly indicates otherwise.(1) Externship--Practical, program-related, off-campus training under direct or indirect instructor supervision, with a preplanned outline of experiences and competencies. For purposes of determining whether a program is residence, distance education, or a hybrid combination, the externship component will not be a determining factor.(2) Laboratory experience or lab--A specific experience of observation, experimentation, practice, study, technical investigation, analysis, and practical application of theory or verbal instruction involving hands-on supervised study in a selected vocation or course.(3) Lecture--A presentation of theories, concepts, procedures, or information about a particular subject.(4) New program--A program:(A) not previously offered;(B) previously offered and then discontinued;(C) with a revised objective such that the program provides preparation for different jobs than those for which the program was originally approved (examples: legal secretary to paralegal; dental technician to medical technician; computer operator to computer programmer); or(D) with a 25 percent or more change within a 12-month period to the total number of hours, content, or lessons (examples: course time from 1,000 hours to 750, 600 hours to 900, 20 lessons to 30, 60 semester credit hours to 80).(5) New seminar--A seminar:(A) not previously offered;(B) previously offered and then discontinued;(C) with a revised objective; or(D) with a 25 percent or more change in a 12-month period to the total number of hours of the approved seminar.(6) Revised program or seminar--Revisions include changes in admission requirements, title, class title, objective description (but not the detailed objective), course time hours or credit hours, or class hours of lecture, laboratory, or externship. School calendars, class schedules, and price changes are catalog changes, not revisions.(7) Military service course credit directory--The Agency-published list of any course types, with Classification for Instructional Program Codes (CIP codes), that are identified by the Agency and the relevant military experience, education, or training that may align with those programs or courses.</content><note type="source"><p>Source Note: The provisions of this §807.121 adopted to be effective August 28, 2006, 31 TexReg 6803; amended to be effective November 28, 2022, 47 TexReg 7914.</p></note></section><section identifier="/us/state/tx/tac/t40/p20/c807/scH/s807.122"><num value="807.122">§807.122</num><heading>General Information for Programs of Instruction</heading><content>(a) Each program of instruction submitted for approval shall be identified by a title.(b) The Agency will not approve false, misleading, or deceptive titles.(c) The school shall ensure that each program prepares the student for the stated occupation.(d) The school shall identify a demonstrable occupational demand for the stated occupation. The Agency may consider the following in evaluating the school's statement of occupational demand:(1) publications of established relevant occupational associations;(2) targeted occupation lists of Local Workforce Development Boards, if approved by the Agency, or other local or state entities;(3) references to advertisements in media for employment;(4) occupation employment rate of students;(5) percentage of graduating students who have previously completed the same or a substantially similar program and who have obtained employment in the same or substantially similar stated occupation for which they have been trained;(6) relative supply and demand for the stated occupation, including letters from potential employers that describe their need for trained employees; or(7) reports or publications relating to the specific occupational demand.(e) The school shall:(1) ensure the program and stated occupation comply with statutory and regulatory requirements of the State of Texas, as well as codes adopted by the local municipality or other authority having jurisdiction where the school is located, and statutory and regulatory requirements of the location of the school, if it is located out of state;(2) provide competency-based programs;(3) assess skills using primarily performance-based methods;(4) use instructional media, methods, and materials appropriate for the program content and students' knowledge and abilities;(5) offer programs in a logical sequence of knowledge and skills;(6) if deemed appropriate by the Agency, provide an externship or a simulation of the workplace for the program; and(7) for any course listed in the military service course credit directory, provide credit to a student toward any course time required for the program of study or course for skills obtained by the student through military experience, education, or training, unless the school or college can demonstrate that those skills are not appropriately aligned with the program of study or course. This requirement prevails regardless of a course requiring Agency approval or having obtained accreditor approval.(f) Each program submitted for approval shall identify the courses and course time hours allocated to that program. A program of a disproportionate length reasonable to prepare the student for the stated occupation, as determined by the Agency, shall not be approved.(g) A school shall not apply for approval of a program that is substantially similar to a discontinued or revoked program, unless the application for approval is submitted at least one year after the date of discontinuation or revocation, and:(1) the school's approved programs are all meeting the employment rate as referenced in §807.131(b) of this subchapter, at the time of application; and(2) the school submits a reimplementation plan to the Agency.(h) A school is not required to submit applications for additional courses of instruction or for course revisions to the Agency for approval, if the school:(1) has been licensed for at least one year under the current ownership;(2) is accredited by an agency recognized by the United States Secretary of Education; and(3) is in good standing with its designated accrediting agency and not subject to:(A) probation;(B) a directive to show cause as to why accreditation should not be revoked; or(C) any other action, as defined by the accrediting agency, that would otherwise prevent the school from seeking approval to add or revise a course of instruction.(i) Upon receipt of the approval of the course of instruction from the accrediting agency, the school shall provide a copy to the Agency.(j) The Agency may require the school director of an accredited school to file applications for nondegree programs if there have been two substantiated complaints regarding courses in the previous year.(k) A school submitting applications for approval of seminars shall use abbreviated forms provided by the Agency.(l) No program shall be approved by the Agency unless the school demonstrates that the program's quality, content, and length reasonably and adequately imparts the job skills and knowledge necessary for the student to obtain employment in the stated occupation.(m) A school may not solicit students, otherwise advertise, or conduct classes for a course of instruction prior to the Agency's approval of the course of instruction. Any such activity by the school, prior to the Agency's approval of the course of instruction, shall constitute a misrepresentation by the school and shall entitle each student in the course of instruction to a full refund of all tuition and fees paid by the student and release from all obligations.(n) The school shall establish and maintain a formal advisory committee of at least five members, unless the Agency approves a lesser number of persons in advance, for each type of program with course time in excess of 200 hours in length. A simple majority of the members of the advisory committee shall not have an ownership or financial interest in the school, nor shall they be employees of the school. At least annually, the committee shall evaluate the curriculum, instructional materials and media, equipment, and facilities to ensure they meet the needs of the job market. The school shall have written documentation of the evaluation available for review by the Agency. If the school does not follow an advisory committee recommendation, the school shall maintain written documentation of the justification for not following the recommendation.(o) If the applicant requests approval to measure courses of instruction in credit hours, the following conversion table shall be used.(1) One academic quarter credit hour equals a minimum course time of:(A) 10 hours of classroom lecture;(B) 20 hours of laboratory experience; or(C) 30 hours of externship.(2) One academic semester credit hour equals a minimum course time of:(A) 15 hours of classroom lecture;(B) 30 hours of laboratory experience; or(C) 45 hours of externship.(3) The school shall calculate lecture, laboratory, and externship credit hour conversions individually for each course, rounding down to the nearest half credit hour. The school shall add the total for the credit hours for lecture, laboratory, and externship to determine the total credit hours for a class.</content><note type="source"><p>Source Note: The provisions of this §807.122 adopted to be effective August 28, 2006, 31 TexReg 6803; amended to be effective December 20, 2010, 35 TexReg 11392; amended to be effective November 14, 2016, 41 TexReg 9020; amended to be effective November 28, 2022, 47 TexReg 7914.</p></note></section><section identifier="/us/state/tx/tac/t40/p20/c807/scH/s807.123"><num value="807.123">§807.123</num><heading>Applications for Additional Programs of Instruction</heading><content>(a) A school applying for approval of an additional program of instruction, after receiving an original certificate of approval, shall submit a complete application that includes:(1) the appropriate fee;(2) a completed application for approval on forms provided by the Agency; and(3) any other revisions or evidence as requested by the Agency.(b) The Agency may require an abbreviated program application if:(1) the program objective changes; or(2) the program length changes 25 percent or more.(c) The Agency may deny an application for approval of an additional program of instruction if the school is not in full compliance with the Act or this chapter.</content><note type="source"><p>Source Note: The provisions of this §807.123 adopted to be effective August 28, 2006, 31 TexReg 6803; amended to be effective November 28, 2022, 47 TexReg 7914.</p></note></section><section identifier="/us/state/tx/tac/t40/p20/c807/scH/s807.128"><num value="807.128">§807.128</num><heading>Equipment</heading><content>(a) Equipment required for instruction shall be comparable to that commonly found in the stated occupation.(b) The school shall remove equipment not in working order from the instructional area, mark it as out-of-order, or properly identify it as awaiting repair.(c) The school shall provide equipment of sufficient quality and quantity to meet the maximum use requirements of the current students, as demanded by the activity patterns of the training program.</content><note type="source"><p>Source Note: The provisions of this §807.128 adopted to be effective August 28, 2006, 31 TexReg 6803.</p></note></section><section identifier="/us/state/tx/tac/t40/p20/c807/scH/s807.129"><num value="807.129">§807.129</num><heading>Facilities</heading><content>(a) In determining adequate space for lecture and laboratory experiences, the Agency shall consider that the amount of lecture and laboratory space meets the use requirements of the maximum number of current students in class with appropriate seating facilities and/or workstations, as needed by the activity patterns of the program.(b) Enrollment shall not exceed the design characteristics of the available seating and/or workstations.</content><note type="source"><p>Source Note: The provisions of this §807.129 adopted to be effective August 28, 2006, 31 TexReg 6803; amended to be effective November 28, 2022, 47 TexReg 7914.</p></note></section><section identifier="/us/state/tx/tac/t40/p20/c807/scH/s807.130"><num value="807.130">§807.130</num><heading>Admission Requirements Relating to Programs of Instruction</heading><content>(a) The school shall submit, for approval by the Agency, its admission requirements for each program of instruction with justification for the requirements.(b) The school shall ensure that the student demonstrates to the school sufficient proficiency in the language of instruction to successfully complete the program of instruction.</content><note type="source"><p>Source Note: The provisions of this §807.130 adopted to be effective August 28, 2006, 31 TexReg 6803; amended to be effective December 20, 2010, 35 TexReg 11392; amended to be effective November 28, 2022, 47 TexReg 7914.</p></note></section><section identifier="/us/state/tx/tac/t40/p20/c807/scH/s807.131"><num value="807.131">§807.131</num><heading>School Responsibilities Relating to Programs of Instruction</heading><content>(a) As a condition of program approval or renewal, the school shall identify any portion of instruction that is self-paced, conducted by distance education, or not conducted in English.(b) To maintain program approval, the school shall demonstrate the following:(1) a reasonable student completion rate, as determined by the Agency, for each program; and(2) a minimum employment rate, as established by the Commission, for program graduates in jobs related to the stated occupation.(c) When a school is approved to offer a program, the school shall maintain sufficient instructors to teach all subjects for completing the program during the length of time stipulated in the school catalog, regardless of the size of the class.(d) The school shall schedule classes so that students will be able to complete the program during the length of time stipulated in the school catalog.(e) The school shall ensure that students receive the lecture and laboratory experience hours with sufficient instructors and scheduling. An instructor may not be simultaneously supervising a laboratory experience and a lecture even if they are in the same room.(f) A school shall provide course outlines to students at the beginning of each subject which lists students' performance objectives, references and resources, and a general content outline for the subject.(g) A school shall have and use lesson plans for all subjects.(h) A school may not use classes from one or more approved programs to create a new program and award a certificate of completion without prior approval.(i) The student-to-instructor ratio shall be sufficient for students to learn, practice, and demonstrate the necessary knowledge and skills. These ratios may be varied at the discretion of the Agency to conform to conditions in an individual school. The recommended student-instructor ratio per class does not exceed:(1) lectures--30 to one;(2) labs--20 to one; and(3) intensive language instruction (beginning)--15 to one; (intermediate to advanced)--20 to one.</content><note type="source"><p>Source Note: The provisions of this §807.131 adopted to be effective August 28, 2006, 31 TexReg 6803; amended to be effective December 20, 2010, 35 TexReg 11392; amended to be effective November 28, 2022, 47 TexReg 7914.</p></note></section><section identifier="/us/state/tx/tac/t40/p20/c807/scH/s807.132"><num value="807.132">§807.132</num><heading>Program of Instruction Revisions</heading><content>(a) The school shall submit a revised program of instruction application for any proposed changes in the program of instruction that shall be reflected in the school catalog's course of instruction information.(b) The school shall receive approval of proposed program of instruction revisions in writing from the Agency before implementing the revisions.</content><note type="source"><p>Source Note: The provisions of this §807.132 adopted to be effective August 28, 2006, 31 TexReg 6803; amended to be effective December 20, 2010, 35 TexReg 11392; amended to be effective November 28, 2022, 47 TexReg 7914.</p></note></section><section identifier="/us/state/tx/tac/t40/p20/c807/scH/s807.133"><num value="807.133">§807.133</num><heading>Program Requirements for Degree Granting Schools</heading><content>A school shall provide evidence to the Agency that they are authorized by the Coordinating Board to offer degree programs.</content><note type="source"><p>Source Note: The provisions of this §807.133 adopted to be effective August 28, 2006, 31 TexReg 6803; amended to be effective November 28, 2022, 47 TexReg 7914.</p></note></section><section identifier="/us/state/tx/tac/t40/p20/c807/scH/s807.134"><num value="807.134">§807.134</num><heading>Sanctions Relating to Programs of Instruction</heading><content>(a) If an approved program of instruction is discontinued for any reason, the school shall notify the Agency within 72 hours of discontinuance and furnished with the names and addresses of any students who were prevented from completion of the program of instruction due to discontinuance. Should the school fail to make arrangements satisfactory to the students and the Agency for the completion of the program of instruction, the full amount of all tuition and fees paid by the students are then due and refundable. Any program of instruction discontinued will be removed from the list of approved programs of instruction.(b) The Agency may suspend enrollments in a particular program of instruction at any time the Agency finds cause. For purposes of this subsection, cause includes, but is not limited to:(1) inadequate instruction;(2) unapproved or inadequate curriculum;(3) inadequate equipment; or(4) inadequate facilities.(c) If a school begins teaching a program of instruction or revised program of instruction that has not been approved by the Agency, the Agency may require the school to refund to the enrolled students all or a portion of the tuition fees.(d) If upon review and consideration of an original, renewal, or revised application for program of instruction approval, the Agency determines that the applicant fails to meet the requirements in the Act or this chapter, the Agency will notify the school, setting forth in writing the reasons for the denial. This may include summaries of peer evaluations from both educators and employers offering similar programs of instruction.(e) The Agency may revoke approval of a school's program of instruction at any time the Agency finds cause. For purposes of this subsection, cause includes, but is not limited to:(1) any statement contained in the application for the program of instruction approval which is untrue;(2) the school's failure to maintain the instructors, facilities, equipment, or programs of instruction, or program of instruction outcomes on the basis of which approval was issued;(3) advertising made on behalf of the school which is false, misleading, or deceptive, including those that use the words commonly associated with a degree other than those approved by the Coordinating Board;(4) programs of instruction without clearly stated limited transferability if there are no articulation agreements with other postsecondary institutions in the same geographic area;(5) programs of instruction for which financial aid is advertised but is not available;(6) repeated violations by the school that negatively impact the quality of a particular program of instruction; or(7) violations by the school of any applicable provision of the Act or this chapter.(f) A school whose program of instruction approval is denied or revoked shall have the right to appeal. The Agency will conduct hearings in accordance with Agency policies and procedures applicable to the appeal.</content><note type="source"><p>Source Note: The provisions of this §807.134 adopted to be effective August 28, 2006, 31 TexReg 6803; amended to be effective January 23, 2012, 37 TexReg 200; amended to be effective November 28, 2022, 47 TexReg 7914.</p></note></section></subchapter><subchapter identifier="/us/state/tx/tac/t40/p20/c807/scI"><num value="I">SUBCHAPTER I</num><heading>APPLICATION FEES AND OTHER CHARGES</heading><section identifier="/us/state/tx/tac/t40/p20/c807/scI/s807.151"><num value="807.151">§807.151</num><heading>Fee Schedule</heading><content>The Agency shall collect fees according to the following schedule.(1) The initial fee for a certificate of approval for a small school is $1,001.(2) The initial fee for any other school is $3,000.(3) In the event of a change in ownership of the school, the new owner shall pay the same fee as that charged for an initial fee for a school.(4) The initial registration fee for a representative is $90.(5) The annual registration renewal fee for a representative is $45.(6) The fee for a change of name of the school or owner is $150.(7) The fee for a change of address of a school is $270.(8) The application fee for an additional program is $225.(9) The application fee for an additional seminar is $35.(10) The application fee for a school director or instructor is $20.(11) The fee for an inspection of classroom facilities that are separate from the main campus is $375.(12) The fee for an on-site investigation of a complaint against a school is $600, if assessed.</content><note type="source"><p>Source Note: The provisions of this §807.151 adopted to be effective August 28, 2006, 31 TexReg 6803; amended to be effective December 20, 2010, 35 TexReg 11392; amended to be effective November 28, 2022, 47 TexReg 7914.</p></note></section><section identifier="/us/state/tx/tac/t40/p20/c807/scI/s807.152"><num value="807.152">§807.152</num><heading>Renewal Fees</heading><content>(a) For small schools, if a certificate of approval is issued for three years, the renewal fee is $1,001, which may be paid with $501 the first year and $250 on the anniversary date of the certificate for each subsequent year.(b) For all other schools, the renewal fee is based on the gross amount minus refunds of annual student tuition and fees. The Commission will establish the renewal fee on an annual basis, based upon the cost of administration of the chapter. The renewal fee will be set in accordance with the provisions of §132.201 of the Act.(c) For all schools, the Agency shall assess a late renewal fee of 10 percent of the renewal fee, not less than $200, if the school fails to file a complete application for renewal at least 30 days before the expiration date of the certificate of approval.</content><note type="source"><p>Source Note: The provisions of this §807.152 adopted to be effective August 28, 2006, 31 TexReg 6803; amended to be effective September 17, 2007, 32 TexReg 6378; amended to be effective November 28, 2022, 47 TexReg 7914.</p></note></section><section identifier="/us/state/tx/tac/t40/p20/c807/scI/s807.153"><num value="807.153">§807.153</num><heading>Installment Payments</heading><content>(a) With the exception of the renewal installment schedule for small schools, a school may elect to pay any single fee in excess of $1,000 by quarterly installment. A service charge of 10 percent of the fee shall be added, and the total divided into equal quarterly installment payments. The first payment shall be due on the date the fee is due. The successive payments shall be due in 90-day increments.(b) Failure to pay any installment by the due date may result in one or more of the following:(1) a penalty being assessed in the amount of 50 percent of the total amount of the fee;(2) full payment of the penalty and outstanding balance due within 30 days; or(3) revocation of the school's certificate of approval.(c) For a small school that has a multiyear term, if the appropriate payment is not received by the anniversary date of the certificate of approval, the school shall, in addition to the required fee, pay a penalty of $200 within 20 days or the school's certificate of approval may be revoked.</content><note type="source"><p>Source Note: The provisions of this §807.153 adopted to be effective August 28, 2006, 31 TexReg 6803; amended to be effective November 28, 2022, 47 TexReg 7914.</p></note></section></subchapter><subchapter identifier="/us/state/tx/tac/t40/p20/c807/scJ"><num value="J">SUBCHAPTER J</num><heading>ADVERTISING</heading><section identifier="/us/state/tx/tac/t40/p20/c807/scJ/s807.171"><num value="807.171">§807.171</num><heading>General Information for Advertising</heading><content>(a) A school shall not make deceptive or misleading statements in attempting to enroll students.(b) The Agency may require a school to furnish proof to the Agency of any of its advertising claims, when requested.</content><note type="source"><p>Source Note: The provisions of this §807.171 adopted to be effective August 28, 2006, 31 TexReg 6803; amended to be effective November 28, 2022, 47 TexReg 7914.</p></note></section><section identifier="/us/state/tx/tac/t40/p20/c807/scJ/s807.172"><num value="807.172">§807.172</num><heading>Advertisement Method</heading><content>(a) A school may advertise for prospective students under "instruction," "education," "training," or a similarly titled classification.(b) A school shall not be advertised under any "help wanted," "employment," or similar classification.(c) No school advertisements shall use the word "wanted," "help wanted," or "trainee," either in the headline or the body of the advertisement, nor shall any advertisement indicate, in any manner, that the school has or knows of employment of any nature available to prospective students; only "placement assistance," if offered, may be advertised.(d) A school shall not use terms to describe the significance of the approval that specify or connote greater approval. Terms that schools may not use to connote greater approval by the Agency include, but are not limited to, "accredited," "supervised," "endorsed," and "recommended." A school shall not use the words "guarantee," "guaranteed," or "free" unless approved in writing by the Agency.(e) Any advertisement that includes a reference to awarding of credit hours shall include the statement, "limited transferability." Where a school has an arrangement with a college or university to accept transfer hours, such information may be advertised, but any limitations shall be included in the advertisement.</content><note type="source"><p>Source Note: The provisions of this §807.172 adopted to be effective August 28, 2006, 31 TexReg 6803; amended to be effective November 28, 2022, 47 TexReg 7914.</p></note></section><section identifier="/us/state/tx/tac/t40/p20/c807/scJ/s807.173"><num value="807.173">§807.173</num><heading>Advertisement Content and Monitoring</heading><content>(a) Advertisement content shall include, and clearly indicate, the full and correct name of the school and its address, including city, as they appear on the certificate of approval.(b) Advertisements shall not include:(1) statements that the school or its programs are accredited unless the accreditation is that of an agency recognized by the United States Department of Education;(2) statements that the school or its courses of instruction have been approved unless the approval can be substantiated by an appropriate certificate of approval issued by an agency of the state or federal government; or(3) representation of the school as an employment agency under the same name, or a confusingly similar name, or at the same location of the school.(c) A school holding a franchise to offer specialized programs or classes not available to other schools shall not advertise such programs in such a manner as to diminish the value and scope of programs offered by other schools not holding such a franchise. Advertising of special classes or programs offered under a franchise shall be limited to the classes or programs offered.(d) A school shall not use endorsements, commendations, or recommendations by students in favor of a school except with the consent of the student and without any offer of financial or other material compensation. Endorsements shall bear the student's legal or professional name. A school may abbreviate the student's name if requested by the student. The school shall maintain a written record of the endorsement, including the full legal name and contact information for the student, associated with any advertisements referenced in this section.(e) A school shall not use a photograph, cut, engraving, illustration or graphic in advertising in such a manner as to:(1) convey a false impression of size, importance, or location of the school, equipment, or facilities associated with the school, or(2) circumvent any of the requirements of this chapter regarding written or oral statements.(f) Every advertisement must clearly indicate that training is being offered, and shall not, either by actual statement, omission, or intimation, imply that prospective employees are being sought.(g) The Agency may order corrective action to counteract the effect of advertising in violation of the Act or this chapter, including:(1) retraction by the school of such advertising claims published in the same manner as the claims themselves;(2) a prohibition against the use of an automatic forwarding message; and(3) submission of all advertisements to the Agency for pre-approval at least 30 days before proposed submission of the advertisements to the advertising medium.</content><note type="source"><p>Source Note: The provisions of this §807.173 adopted to be effective August 28, 2006, 31 TexReg 6803; amended to be effective November 28, 2022, 47 TexReg 7914.</p></note></section><section identifier="/us/state/tx/tac/t40/p20/c807/scJ/s807.174"><num value="807.174">§807.174</num><heading>Financial Incentives</heading><content>(a) Advertisements shall not:(1) state that students shall be guaranteed employment while enrolled in the school;(2) state that employment shall be guaranteed for students after graduation; or(3) misrepresent opportunities for employment upon completion of any program.(b) Advertisements shall not contain dollar amounts as representative or indicative of the earning potential of graduates unless those dollar amounts have been published by the United States Department of Labor. This provision shall not be construed as prohibiting the school from providing earning potential to the student individually on the student's receipt of enrollment policies or other such Commission-approved document.(c) Advertisements for student tuition loans shall:(1) contain the language "financial aid available, if qualified"; and(2) appear in type no larger than the font used for the name of the school and in similar color and style.(d) Advertising of student tuition loans as described in this section does not preclude disclosure of the school's eligibility under the various state and federal loan programs.</content><note type="source"><p>Source Note: The provisions of this §807.174 adopted to be effective August 28, 2006, 31 TexReg 6803.</p></note></section><section identifier="/us/state/tx/tac/t40/p20/c807/scJ/s807.175"><num value="807.175">§807.175</num><heading>Catalog</heading><content>(a) The catalog shall include the following:(1) table of contents or index;(2) name and complete street address of the school;(3) volume number, date of publication, and effective dates;(4) history of any accreditations or approvals, including statement of approval and regulation by the Agency;(5) description of space, facilities, and equipment;(6) list of all trustees, directors, officers of the corporation, and owners;(7) list of management staff and faculty, including education relating to the areas of instruction;(8) tuition, fees, other charges, and applicable scholarship terms;(9) school calendar;(10) school hours of operation and class schedule, including the amount of time allocated for breaks and mealtimes;(11) policies regarding enrollment, including entrance requirements, previous education credit, cancellation and refund, progress, attendance, leave of absence, and conduct;(12) refund policy as required by the United States Department of Veterans Affairs, if applicable;(13) description of programs, including the number of course time hours of a seminar, class or course, lecture, lab, and externship, as well as credit hours in each class or course, if applicable;(14) description of each subject;(15) description of the grading policy, including requirements for graduation;(16) description of placement assistance, if available;(17) statement of polices regarding grievances; and(18) a statement signed by the owner or director indicating that all of the information contained in the catalog is true and correct.(b) Any courses defined as self-paced shall be noted as such in the catalog.(c) In addition to the information contained in subsections (a) and (b) of this section, the catalog for a school that charges tuition and fees for a residence program or a synchronous distance education course based on more than one academic term shall also include a complete description of the following:(1) the number of periods of time and the course time scheduled in each term;(2) the amount of tuition charged for each term;(3) the type and amount of fees charged for each term; and(4) any other charges for each term.(d) All changes to the catalog shall be disclosed to the Agency, using forms provided by the Agency. Failure to disclose changes may result in sanctions.</content><note type="source"><p>Source Note: The provisions of this §807.175 adopted to be effective August 28, 2006, 31 TexReg 6803; amended to be effective November 14, 2016, 41 TexReg 9020; amended to be effective November 28, 2022, 47 TexReg 7914.</p></note></section></subchapter><subchapter identifier="/us/state/tx/tac/t40/p20/c807/scK"><num value="K">SUBCHAPTER K</num><heading>ADMISSION</heading><section identifier="/us/state/tx/tac/t40/p20/c807/scK/s807.191"><num value="807.191">§807.191</num><heading>General Information for Admission</heading><content>(a) The Agency may approve specific admission requirements for seminars and small schools.(b) Programs with course time of 40 hours or less, individual class offerings, and seminars are not required to grant credit for previous education and training, unless the course type is listed in the military service course credit directory.(c) The school shall make appropriate adjustments to the program length and price based upon credit granted for previous education and training, where warranted.(d) For a school having specific term-beginning dates, a school may not start students after the third day of classes during any given term, except in those cases where appropriate credit for previous education and training has been given according to the Act and this chapter.(e) A continuously enrolled student has the right to graduate under the academic requirements stated in the catalog in effect at the time of the student's enrollment.</content><note type="source"><p>Source Note: The provisions of this §807.191 adopted to be effective August 28, 2006, 31 TexReg 6803; amended to be effective November 28, 2022, 47 TexReg 7914.</p></note></section><section identifier="/us/state/tx/tac/t40/p20/c807/scK/s807.192"><num value="807.192">§807.192</num><heading>Admission Requirements</heading><content>(a) The school shall require for admission into its programs proof of one of the following:(1) secondary education;(2) successful completion or the equivalent of one full-time academic semester (12 academic semester hours) or academic quarter (18 academic quarter hours) at an accredited college, university, or other postsecondary school; or(3) for nondegree programs only, proven ability-to-benefit by obtaining a satisfactory score on the approved entrance test.(b) Entrance test requirements shall be in accordance with the following provisions.(1) Any entrance test shall be a nationally recognized standardized test or a nonstandardized test developed by the appropriate industry and approved by the Agency. A nonstandardized test shall be validated by a qualified third party, such as an expert in tests and measurements, for both appropriateness and the specific score level required for admission into the program. The name of the test and its publisher, any time limitations, a minimum acceptable score, and an explanation of score meanings, as referenced in the test material, shall be provided to the student prior to taking the test.(2) If multiple opportunities are allowed for retaking the same entrance test, such students shall wait a minimum of five calendar days prior to retaking the test. A student may take a second entrance test on the same day provided a substantially different test is administered. This shall be stated in the admissions policy published in the school catalog.(3) A representative is not allowed to administer the test, nor is anyone allowed to assist the student in answering the questions.(4) If the entrance test reveals the student to be ineligible as an ability-to-benefit student, the student may be enrolled as a remedial student. The school shall have an evaluation procedure approved by the Agency to determine remedial needs and to determine when the required level of remediation has been reached. The school shall also have a remediation plan for such students consisting of classes approved by the Agency as a part of the program. The students may be charged for the remedial portion of the program on an hourly pro rata basis, but the student is not obligated for the tuition and fees of the program until the entrance requirements are met.(c) Evidence shall be maintained in each student's file to show the admissions requirements have been met. A full refund of all monies paid and a full release from all obligations may be due, as determined by the Agency, to any student for whom the school cannot establish that the admission requirements were met.</content><note type="source"><p>Source Note: The provisions of this §807.192 adopted to be effective August 28, 2006, 31 TexReg 6803; amended to be effective November 28, 2022, 47 TexReg 7914.</p></note></section><section identifier="/us/state/tx/tac/t40/p20/c807/scK/s807.193"><num value="807.193">§807.193</num><heading>Receipt of Enrollment Policies</heading><content>(a) For all enrollments, each school shall use the form provided by the Agency to verify the prospective student's receipt of the information required in this section.(b) Unless otherwise required in this chapter, prior to enrollment the school shall furnish the following to each prospective student:(1) a school catalog, unless the prospective student enrolls in a seminar;(2) a schedule of tuition, fees, and other charges;(3) the cancellation and refund policy;(4) the progress and grievance policies and, for non-Title IV schools, attendance policies;(5) the rules of operation and conduct;(6) if available, the average starting salary per pay period and annually for the prospective student's stated occupation, and information regarding the number of job openings in the program objective field in a specified area within the last calendar year, including the name of the information source;(7) the regulations pertaining to incomplete grades;(8) written and verbal information regarding loans and grants and their differences, if the school participates in a loan or grant program;(9) the requirements, if any, for any state or national licensing, certifications, or registrations;(10) the exam passage rates for programs that prepare students for state licensing, certification, or registration exams;(11) the job placement and employment data for the stated occupation as required in this chapter; and(12) notice of all policies related to program interruption prior to completion and written information informing the student that if the student withdraws, it is the student's responsibility to inform the school or college.(c) Any school that refers to the awarding of credit hours shall explain to each student during the enrollment process that transferability of such hours may be limited. Each student shall sign a statement indicating such an explanation has been provided.(d) Should a school have an articulation agreement with an accredited college or university, or other postsecondary school, such information shall be provided to the student, including any known agreement limitations. Such schools shall also provide a list of known Texas postsecondary schools that accept any or all of the credit hours so earned.(e) Students shall acknowledge receipt of each piece of information or documentation as set forth in this section by initialing each page and providing a complete signature at the end of the receipt of the enrollment policy form.(f) A copy of the receipt of the enrollment policies form shall be given to the student and a copy maintained as a part of the student's files.</content><note type="source"><p>Source Note: The provisions of this §807.193 adopted to be effective August 28, 2006, 31 TexReg 6803; amended to be effective November 28, 2022, 47 TexReg 7914.</p></note></section><section identifier="/us/state/tx/tac/t40/p20/c807/scK/s807.194"><num value="807.194">§807.194</num><heading>Enrollment Agreement</heading><content>(a) For distance education schools, the enrollment agreement shall specify the amount of time allotted to the student to complete the program.(b) A school shall submit an enrollment agreement to the Agency for approval.(c) A school shall use only an approved enrollment agreement to enroll students.(d) The executed enrollment agreement shall include, but is not limited to, the following:(1) full and correct name and location of the school;(2) program title, tuition, fees, reasonable estimate cost of books and supplies, any other expenses, total cost of the program, items subject to cost change, method of payment and payment schedule, disclosure statement if interest is charged on more than three payments, and detachable buyer's right to cancel if enrollment is procured off campus;(3) date training is to begin and program length;(4) name, address, and signature of the student;(5) student's email address if any part of the instruction or academically related activity is web based;(6) statement by the school that the student will receive a copy of the school enrollment agreement and catalog at the time of signing by the student;(7) cancellation and refund policy; and(8) a Federal Trade Commission statement for holder in due course, unless no loans, grants, or installment payments are involved.(e) The school shall provide a notice of cancellation, attached to the enrollment agreement, for any student enrolled off the school premises. The notice shall:(1) include at least two copies;(2) be easily detachable;(3) be printed in boldface type, with a minimum font of 10 point;(4) contain the date of the enrollment agreement, name and address of school, the date on which the statutory 72-hour cancellation privilege will expire, and any other provisions as determined by the Agency;(5) be printed in the same language as used in the enrollment agreement; and(6) be in such a form that can be used by the student to notify the school of the student's desire to cancel by dating, signing, and mailing or otherwise delivering the form to the school's address shown.(f) A copy of the enrollment agreement form shall be given to the student and a copy maintained as a part of the student's file.</content><note type="source"><p>Source Note: The provisions of this §807.194 adopted to be effective August 28, 2006, 31 TexReg 6803; amended to be effective November 28, 2022, 47 TexReg 7914.</p></note></section><section identifier="/us/state/tx/tac/t40/p20/c807/scK/s807.195"><num value="807.195">§807.195</num><heading>Conduct Policy</heading><content>The school shall submit for approval a copy of the rules and regulations pertaining to conduct, which shall include statements regarding:(1) conditions for dismissal; and(2) conditions for reenrollment of those students dismissed for violating the conduct policy.</content><note type="source"><p>Source Note: The provisions of this §807.195 adopted to be effective August 28, 2006, 31 TexReg 6803.</p></note></section><section identifier="/us/state/tx/tac/t40/p20/c807/scK/s807.196"><num value="807.196">§807.196</num><heading>Tuition and Fees</heading><content>(a) A school shall disclose to potential students all tuition, fees, and other charges, and state such information in the school's application for a certificate of approval. The school may not use an estimated tuition amount, nor may the school increase the student's tuition if the student remains continuously enrolled and completes the training as approved at the time of admission. If the school charges to repeat courses, the amount of the charges must be disclosed to the student.(b) A school shall make available for review by the Agency upon request:(1) a description of the methods of payment that are available to enrolling students;(2) the names and addresses of lending institutions used by the school for student tuition loans; and(3) the true annual percentage rate and any other fees or charges associated with student tuition loans.(c) A school shall refund or forfeit any tuition, fees, or other charges not previously disclosed to the Agency.(d) A school may offer scholarships providing the terms of scholarships are disclosed to the Agency.(e) The school shall maintain, in a permanent format that is acceptable and readily accessible to the Agency, a record of any funds received from, or on behalf of, the student. A school shall clearly identify the payor, the type of funding, and the reason for the charges. These records shall be posted and kept current.(f) A school shall issue written receipts of any charges or payments to the student and maintain such records for review upon request by the Agency. Each separately charged item shall be clearly itemized on a student-signed receipt.</content><note type="source"><p>Source Note: The provisions of this §807.196 adopted to be effective August 28, 2006, 31 TexReg 6803; amended to be effective November 28, 2022, 47 TexReg 7914.</p></note></section><section identifier="/us/state/tx/tac/t40/p20/c807/scK/s807.197"><num value="807.197">§807.197</num><heading>Admission Requirements for Degree Granting Schools</heading><content>(a) Students who transfer from other postsecondary schools shall complete at least 20 academic semester hours or 30 academic quarter hours in residency at the school that will grant the degree. This does not apply to transfers within the same school system or teach-outs approved by the Agency.(b) A school shall allow students attending at the time a school becomes a degree granting school to earn a degree, providing the student:(1) meets all the prerequisites for acceptance into the degree program; and(2) satisfactorily completes all courses or equivalent courses of the degree program.(c) Former students shall meet all the prerequisites for acceptance into the degree program and shall satisfactorily complete all courses or equivalent courses in the approved degree program to qualify for a degree.</content><note type="source"><p>Source Note: The provisions of this §807.197 adopted to be effective August 28, 2006, 31 TexReg 6803; amended to be effective November 28, 2022, 47 TexReg 7914.</p></note></section></subchapter><subchapter identifier="/us/state/tx/tac/t40/p20/c807/scL"><num value="L">SUBCHAPTER L</num><heading>PROGRESS STANDARDS</heading><section identifier="/us/state/tx/tac/t40/p20/c807/scL/s807.221"><num value="807.221">§807.221</num><heading>General Requirements for Progress Standards</heading><content>(a) The Agency may approve specific progress standards for self-paced, competency-based programs.(b) Seminars, because of their nature and duration, are not required to have progress standards.(c) The progress evaluation records shall be of the type and nature to reflect whether the student is making satisfactory progress to the point of being able to complete all subject matter within the allotted time provided in the course curriculum.(d) The school shall submit its policies pertaining to incomplete grades to the Agency for approval and publish those policies in the school's catalog. The policies shall address the possibility of the classes being discontinued when the student returns and clarify options available to that student pursuant to the Act.(e) Approved court reporting program students may receive one grade of "IP" (in progress) in any speedbuilding class if they have not achieved the required speed at the end of the grading period.</content><note type="source"><p>Source Note: The provisions of this §807.221 adopted to be effective August 28, 2006, 31 TexReg 6803; amended to be effective November 28, 2022, 47 TexReg 7914.</p></note></section><section identifier="/us/state/tx/tac/t40/p20/c807/scL/s807.222"><num value="807.222">§807.222</num><heading>Progress Requirements for Residence Schools</heading><content>(a) For programs with course time of 40 hours or less, the school is only required to give a final exam at the end of the program to determine whether the student has sufficient knowledge to warrant a certificate of completion, in lieu of a progress evaluation.(b) For programs with course time of 41 to 200 hours, the school shall record a student's grades at the midpoint and end of each progress evaluation period. A student not making satisfactory progress at the midpoint shall be placed on academic probation for the remainder of the progress evaluation period. If the student does not achieve satisfactory progress by the end of the probationary period, the student's enrollment shall be terminated.(c) For schools approved on a course time basis and offering programs in excess of 200 hours, the school shall evaluate progress at least every eight weeks. A school approved on a credit hour basis shall evaluate progress at the midpoint and end-of-term for academic semester or academic quarter or at least every eight weeks. For programs with course time in excess of 200 hours, the following shall apply.(1) The school shall place a student making unsatisfactory progress for the program at the end of a progress evaluation period on academic probation for the next progress evaluation period. If the student on academic probation achieves satisfactory progress for the subsequent progress evaluation period, but does not achieve the required grades to meet overall satisfactory progress for the program, the student may be continued on academic probation for one more progress evaluation period.(2) If a student on academic probation fails to achieve satisfactory progress for the first probationary progress evaluation period, the student's enrollment shall be terminated.(3) The enrollment of a student who fails to achieve overall satisfactory progress for the program at the end of two successive probationary progress evaluation periods shall be terminated.(d) When a student is placed on academic probation, the school shall counsel the student prior to the student returning to class. The date, action taken, and terms of probation shall be clearly indicated in the student's permanent file.(e) The school may allow a student whose enrollment was terminated for unsatisfactory progress to reenroll after a minimum of one progress evaluation period. Such reenrollment does not circumvent the approved refund policy.(f) The school shall place a student who returns after their enrollment was terminated for unsatisfactory progress on academic probation for the next grading period. The school shall advise the student of this action and document the student's file accordingly. If the student does not demonstrate satisfactory progress at the end of this probationary period, that student's enrollment shall be terminated.</content><note type="source"><p>Source Note: The provisions of this §807.222 adopted to be effective August 28, 2006, 31 TexReg 6803.</p></note></section><section identifier="/us/state/tx/tac/t40/p20/c807/scL/s807.223"><num value="807.223">§807.223</num><heading>Progress Requirements for Asynchronous Distance Education Schools</heading><content>(a) Asynchronous distance education schools shall evaluate progress as the school receives each lesson assignment. The school shall maintain the record of progress on forms approved by the Agency. Forms shall include:(1) the date course materials are mailed to the student;(2) the date the lesson assignment is received from the student;(3) the grade on a per-lesson basis;(4) the instructor's name;(5) the date graded assignments are returned to the student; and(6) the final grade for the program with completion date indicated.(b) If at the end of the time period specified in the enrollment agreement, the student has not completed the program, the student's enrollment shall be terminated.</content><note type="source"><p>Source Note: The provisions of this §807.223 adopted to be effective August 28, 2006, 31 TexReg 6803; amended to be effective December 20, 2010, 35 TexReg 11392; amended to be effective November 28, 2022, 47 TexReg 7914.</p></note></section><section identifier="/us/state/tx/tac/t40/p20/c807/scL/s807.224"><num value="807.224">§807.224</num><heading>Progress Requirements for Degree Granting Schools</heading><content>For a school offering degree programs, the progress standards shall include the following:(1) a student progress evaluation every academic semester, academic quarter, or at least every eight weeks in other academic term programs;(2) a minimum grade point average for graduation from all degree programs of 2.0 based on a 4.0 scale, and that a student achieves a passing grade in all required courses;(3) a probationary period of one academic semester, academic quarter, or approved grading period following the end of the academic semester, academic quarter, or approved grading period in which the student's grades become unsatisfactory; and(4) provisions for termination at the end of not more than two consecutive probationary periods if the student's cumulative grade point average does not improve to the level required for graduation.</content><note type="source"><p>Source Note: The provisions of this §807.224 adopted to be effective August 28, 2006, 31 TexReg 6803; amended to be effective November 28, 2022, 47 TexReg 7914.</p></note></section></subchapter><subchapter identifier="/us/state/tx/tac/t40/p20/c807/scM"><num value="M">SUBCHAPTER M</num><heading>ATTENDANCE STANDARDS</heading><section identifier="/us/state/tx/tac/t40/p20/c807/scM/s807.241"><num value="807.241">§807.241</num><heading>General Requirements for Attendance</heading><content>(a) Seminar programs that begin and end on the same day are not required to maintain an attendance policy.(b) Title IV schools are not required to take attendance.(c) The Agency may approve specific attendance requirements for self-paced, competency-based programs.(d) No provision in this subchapter shall require a school to terminate the enrollment of a student for lack of attendance at a point at which a refund would not be due.(e) A school shall charge for a full day of absence when the student fails to attend all of the scheduled classes on that day. The school shall charge for a partial day of absence for any period of absence during the day.(f) A school shall not consider school holidays, such as summer vacation and Christmas holidays, and so forth, as days of absence.</content><note type="source"><p>Source Note: The provisions of this §807.241 adopted to be effective August 28, 2006, 31 TexReg 6803; amended to be effective November 28, 2022, 47 TexReg 7914.</p></note></section><section identifier="/us/state/tx/tac/t40/p20/c807/scM/s807.242"><num value="807.242">§807.242</num><heading>Attendance Requirements for Degree Granting Schools</heading><content>(a) The following requirements are for non-Title IV schools and Title IV schools that voluntarily take attendance.(b) For a school offering degree programs, the attendance standards shall include the following:(1) provisions for termination or probation during the next academic quarter, academic semester, or approved term when a student is absent for more than 20 percent of the scheduled course time hours during an academic quarter, academic semester, or approved term;(2) provisions for termination when a student is absent for more than 20 percent of the scheduled course time hours during the probationary academic quarter, academic semester, or approved term; and(3) provisions for termination prior to the last quarter, when a student is absent in excess of 10 consecutive school days or 20 percent of the total course time hours in the course, whichever occurs first.</content><note type="source"><p>Source Note: The provisions of this §807.242 adopted to be effective August 28, 2006, 31 TexReg 6803; amended to be effective November 28, 2022, 47 TexReg 7914.</p></note></section><section identifier="/us/state/tx/tac/t40/p20/c807/scM/s807.243"><num value="807.243">§807.243</num><heading>Termination of Enrollment</heading><content>(a) A school shall terminate the enrollment of a student who accumulates the lesser of the following amounts of absences:(1) more than 10 consecutive school days;(2) more than 20 percent of the total course time hours in a program with course time of more than 200 hours;(3) more than 25 percent of the total course time hours in a program or individual course with course time of 41 to 200 hours;(4) more than 25 percent of the total course time hours for seminars, individual courses, or programs with course time of 40 hours or less; or(5) any number of days if the student fails to return as scheduled from an approved leave of absence.(b) A Title IV school that does not voluntarily take attendance shall terminate the enrollment of a student if the student's participation in an academically related activity cannot be documented:(1) at the end of the first calendar week of the academic term;(2) at the end of the first four calendar weeks of the academic term;(3) at the midpoint of each academic term; and(4) at the end of each academic term.(c) Students whose enrollments are terminated for violation of the attendance policy may not reenroll before the start of the next progress evaluation period. This provision does not circumvent the approved refund policy.</content><note type="source"><p>Source Note: The provisions of this §807.243 adopted to be effective August 28, 2006, 31 TexReg 6803; amended to be effective November 28, 2022, 47 TexReg 7914.</p></note></section><section identifier="/us/state/tx/tac/t40/p20/c807/scM/s807.244"><num value="807.244">§807.244</num><heading>Make-up Work</heading><content>(a) No more than 5 percent of the total course time hours for a program, rounded down to the closest one-half hour increment, may be made up. Attendance course time hours, for purposes of Subchapters M - O of this chapter, may not be made up.(b) The school shall submit make-up work policies to the Agency for approval.(c) Make-up work shall:(1) be supervised by an instructor approved for the class being made up;(2) require the student to demonstrate substantially the same level of knowledge or competence expected of a student who attended the scheduled class session;(3) be completed within two weeks of the end of the grading period during which the absence occurred;(4) be documented by the school as being completed, recording the date, time, duration of the make-up session, and the name of the supervising instructor; and(5) be signed and dated by the student to acknowledge the make-up session.</content><note type="source"><p>Source Note: The provisions of this §807.244 adopted to be effective August 28, 2006, 31 TexReg 6803; amended to be effective November 28, 2022, 47 TexReg 7914.</p></note></section><section identifier="/us/state/tx/tac/t40/p20/c807/scM/s807.245"><num value="807.245">§807.245</num><heading>Leaves of Absence</heading><content>(a) Seminars, programs, and individual subjects with course times of 40 hours or fewer shall not grant leaves of absence.(b) A school director may grant a leave of absence after determining that good cause is shown.(c) Except as provided in subsection (d) of this section, in a 12-month period, a student may have no more than two leaves of absence. For a program with course time of 200 hours or less, a student may be on leave of absence for a total of 30 calendar days. For programs with course time of more than 200 hours, a student may be on leave of absence for a total of 60 calendar days.(d) Programs with a course time of more than 600 hours, and that are eligible for Title IV funding, may have a leave of absence policy consistent with the United States Department of Education policy at 34 Code of Federal Regulations §668.22(d).(e) School attendance records shall clearly define the dates of the leave of absence. A written statement as to why the leave of absence was granted, signed by both the student and the school director indicating approval, shall be placed in the student's permanent file.(f) In addition to the requirements concerning leaves of absence in this subchapter, a school offering degree programs that schedules their courses on an academic quarter or academic semester basis may include in their attendance policies provisions for summer leaves of absence. These leaves of absence shall not exceed the lesser of 120 days or the interval between the end of the spring academic quarter or academic semester and the start of the fall academic quarter or academic semester.</content><note type="source"><p>Source Note: The provisions of this §807.245 adopted to be effective August 28, 2006, 31 TexReg 6803; amended to be effective December 20, 2010, 35 TexReg 11392; amended to be effective November 28, 2022, 47 TexReg 7914.</p></note></section></subchapter><subchapter identifier="/us/state/tx/tac/t40/p20/c807/scN"><num value="N">SUBCHAPTER N</num><heading>CANCELLATION AND REFUND POLICY</heading><section identifier="/us/state/tx/tac/t40/p20/c807/scN/s807.261"><num value="807.261">§807.261</num><heading>Requirement for Tour</heading><content>(a) Schools are required to provide a tour on or before the first scheduled class day.(b) Notwithstanding subsection (a) of this section, distance education programs and seminars are not required to provide the student a tour.(c) Students enrolled in a hybrid or blended program are required to be provided a tour on or before the first scheduled class day.(d) The student shall sign and date an acknowledgement form certifying the completion of the tour.</content><note type="source"><p>Source Note: The provisions of this §807.261 adopted to be effective August 28, 2006, 31 TexReg 6803; amended to be effective January 23, 2012, 37 TexReg 200; amended to be effective November 28, 2022, 47 TexReg 7914.</p></note></section><section identifier="/us/state/tx/tac/t40/p20/c807/scN/s807.262"><num value="807.262">§807.262</num><heading>Completion of Refund</heading><content>(a) A school shall document refunds by written record indicating the date of the refund transaction, the name of the student receiving the refund, the total amount refunded, and the specific reason for the refund. Proof of completion shall be on file within 120 days of the effective date of termination and shall include:(1) copies of both sides of the cancelled check;(2) printed proof of completed transaction of electronic funds transfer or other similar electronic means; or(3) documentation of an awarded credit to a credit card or other similar account.(b) To ensure a school's good faith effort to timely complete a refund owed directly to a student, the student's file shall contain evidence of the following proof of a certified mailing of the refund to the:(1) student's last known address;(2) student's permanent address, if different from the student's last known address; or(3) address of the student's parent or legal guardian, if different from the student's last known and permanent addresses.(c) If after making a good faith effort to timely complete a refund, the school is unable to complete the refund, the school shall forward to the Agency the appropriate refund amount and any pertinent student information to assist the Agency in locating the student.(d) Unless otherwise required by another law, refunds will be made in the following order:(1) on behalf of the student to federal loans used to pay tuition and fees;(2) on behalf of the student to private loans used to pay tuition and fees;(3) to the student for personal loans, including credit card debt, and cash used to pay tuition and fees; and(4) to other funding sources, including Boards, to reimburse payments for tuition and fees.</content><note type="source"><p>Source Note: The provisions of this §807.262 adopted to be effective August 28, 2006, 31 TexReg 6803; amended to be effective January 23, 2012, 37 TexReg 200; amended to be effective November 14, 2016, 41 TexReg 9020.</p></note></section><section identifier="/us/state/tx/tac/t40/p20/c807/scN/s807.263"><num value="807.263">§807.263</num><heading>Refund Requirements</heading><content>(a) The Agency, after considering the specific facts associated with a school's conduct, may order a full or partial refund to affected students if the school:(1) does not provide a class with:(A) an approved instructor;(B) an instructor for whom an application has been properly submitted to the Agency; or(C) a temporary instructor for whom the school submitted notice to the Agency;(2) fails to maintain the instructors, facilities, equipment, or courses of instruction on the basis of which Agency approval was issued or student enrollment was obtained, or to submit timely requests for approval of substantive changes thereto;(3) violates any provision of this chapter in the process of soliciting and enrolling the student;(4) fails to adhere to applicable academic, attendance, and refund policies that meet state requirements and apply to the course enrolled in, as published at the time of the student's enrollment in the course;(5) fails to undertake a good faith effort to furnish the student, upon satisfactory completion of the program, with a certificate of completion. A school may withhold the transcript or certificate until the student has paid outstanding financial obligations to the school. Evidence of a good faith effort shall be maintained in the student's file in one of the following forms:(A) An acknowledgement of receipt of certificate signed and dated by the student;(B) Proof of a certified mailing to the student's last known address;(C) Proof of a certified mailing to the student's permanent address, if different from the student's last known address; or(D) Proof of a certified mailing to the address of the student's parent or legal guardian, if known and different from the student's last known or permanent addresses; or(6) does not have course approval or the required certificate of approval from the Agency.(b) To be considered a violation subject to refund under subsection (a)(1) - (6) of this section, a school's action shall be determined to be more than a technical error or a nonsubstantive change in operations.(c) If any of the violations in subsection (a)(1) - (6) of this section apply to more than one class period, students are entitled to a full refund for each such class attended.(d) The length of a program, for purposes of calculating refunds owed, is the shortest scheduled time period in which the program may be completed by continuous attendance of a full-time student.(e) A non-Title IV school, or a Title IV school voluntarily taking attendance, shall calculate refunds for students based upon scheduled hours of classes through the last date of attendance. A Title IV school shall calculate refunds for students based upon scheduled hours of classes through the last documented day of an academically related activity. Neither type of school shall count leaves of absence, suspensions, school holidays, days when classes are not offered, and summer vacations for purposes of calculating a student's refund.(f) For all programs other than seminars, a student may cancel enrollment, request a full refund, and request a release from any obligations to the school within the first three scheduled class days.(g) A school may withhold from the refund required by subsections (a) - (c) and (f) of this section any amount as retainable by the school pursuant to §132.061 of the Act. More specifically, the school may withhold items of extra expense to the student referenced in §132.061(b)(6) of the Act, as long as they are necessary for the portion of the program attended and are separately stated in the enrollment agreement. Any items of extra expense not required for the portion of the program attended must be included in the refund.(h) Students are entitled to a refund paid in accordance with the school's policy, which must provide for refunds at least equivalent to the provisions in §132.061 and §132.0611 of the Act, if students withdraw or are discontinued from a program prior to completion.</content><note type="source"><p>Source Note: The provisions of this §807.263 adopted to be effective August 28, 2006, 31 TexReg 6803; amended to be effective December 20, 2010, 35 TexReg 11392; amended to be effective January 23, 2012, 37 TexReg 200; amended to be effective November 28, 2022, 47 TexReg 7914.</p></note></section><section identifier="/us/state/tx/tac/t40/p20/c807/scN/s807.264"><num value="807.264">§807.264</num><heading>Penalties Relating to Refunds</heading><content>(a) A penalty shall be paid on any refund not completed in a timely manner as required by the Act. The penalty assessment shall begin on the first day following the expiration of the statutorily defined refund period and end on the day preceding the date the refund is completed.(b) Any penalty assessed on a school's late payment of student refunds shall be disbursed in the following order of priority:(1) to the student's account at a lending institution for the balance of principal and interest on the student loan;(2) to the student for tuition and fees paid directly by the student;(3) to a Board for tuition and fees paid by the Board; and(4) to the tuition trust account for any remaining balance of assessed penalty.(c) If the Agency determines that the method used by the school to calculate refunds is in error or the school does not routinely pay refunds within the time required by the Act, the school shall submit an agreed-upon procedures engagement conducted by an independent CPA. The CPA shall examine all files for students who did not complete a course of study, to determine compliance with the most restrictive of:(1) the Act;(2) this chapter; or(3) the school catalog current on the date of the student's enrollment.(d) An opinion letter shall accompany a schedule of student refunds due, disclosing the following information for the four years prior to the date of the Agency's request:(1) student information, including name, address, and Social Security number;(2) pertinent dates, including recorded last date of attendance, date of termination, and, if necessary, recalculated last date of attendance;(3) recorded refund information, including amount of refund with principal, penalty, and any balance due stated separately; payee; date and check number of payment if payment has been made; any of the same categories of information resulting from recalculations; and(4) other information requested by the Agency to demonstrate compliance.</content><note type="source"><p>Source Note: The provisions of this §807.264 adopted to be effective August 28, 2006, 31 TexReg 6803; amended to be effective January 23, 2012, 37 TexReg 200; amended to be effective November 14, 2016, 41 TexReg 9020.</p></note></section></subchapter><subchapter identifier="/us/state/tx/tac/t40/p20/c807/scO"><num value="O">SUBCHAPTER O</num><heading>RECORDS</heading><section identifier="/us/state/tx/tac/t40/p20/c807/scO/s807.281"><num value="807.281">§807.281</num><heading>General Information for Records</heading><content>(a) A school shall permanently maintain a master student registration list (MSRL). If the school maintains the MSRL in electronic form, the school must be able to produce a printed copy immediately upon request. The MSRL must contain at least the following information:(1) date of applicable entry;(2) name of student;(3) address of student including city, state, and zip code;(4) telephone number;(5) social security number;(6) date of birth; and(7) name of program.(b) A school shall maintain current records and necessary data (physical or electronic) for each student required to be on the master student registration list to show compliance with the Act and this chapter. These records shall be:(1) maintained on-site;(2) protected against damage, loss (for example, fire, water, theft, tampering), or misuse; and(3) made available to the Agency for inspection upon request.(c) If applicable, the school shall maintain and ensure that copies of the accreditation authorization and letter of eligibility from the United States Department of Education are available for Agency review.(d) Degree granting schools shall maintain a copy of the certificate of authorization from the Coordinating Board for each authorized degree program.(e) The Agency may conduct unannounced compliance inspections.(f) A school shall maintain complete records of all advertising, sales, and enrollment materials used by or on behalf of the school for a five-year period. Materials maintained shall include, but not be limited to, direct mail pieces, brochures, printed literature, films, leaflets, handbills, fliers, video and audiotapes disseminated through the broadcast media, materials disseminated through the print media or Internet, and sales and recruitment manuals used to instruct sales personnel.</content><note type="source"><p>Source Note: The provisions of this §807.281 adopted to be effective August 28, 2006, 31 TexReg 6803; amended to be effective November 14, 2016, 41 TexReg 9020; amended to be effective November 28, 2022, 47 TexReg 7914.</p></note></section><section identifier="/us/state/tx/tac/t40/p20/c807/scO/s807.282"><num value="807.282">§807.282</num><heading>Student Information and Records</heading><content>(a) A school shall permanently maintain student transcripts of academic records. A school shall provide such transcripts to students and prospective employers at a reasonable charge if the student has fulfilled the financial obligation to the school and is neither in default nor owes a refund to any federal or state student financial aid program.(b) Transcripts of academic records, student payment ledgers, and enrollment agreements must be maintained in electronic format or converted to electronic format within 12 months of their creation or revision. A scanned copy of original paper transcripts is an acceptable electronic format for transcripts of academic records.(c) A school shall retain financial records in accordance with federal retention requirements.(d) A school shall retain all student records for at least a five-year period and these records shall include:(1) a written record of previous education and training on a form provided by the Agency; and(2) official transcripts from all previous postsecondary schools attended by the student.(e) The school director shall implement and maintain reasonable procedures, including taking any appropriate corrective action, to protect from improper use or disclosure of any sensitive personal information collected or maintained by the school.(f) A school shall destroy or arrange for the destruction of sensitive personal information within the school's custody or control, after any required retention periods, by:(1) shredding;(2) permanently removing or deleting electronic records; or(3) otherwise modifying the sensitive personal information in the records to make the information unreadable or indecipherable through any means; or(4) destroying the information in accordance with any other more restrictive law or regulation the school is required to follow.(g) All records created and maintained in languages other than English are subject to translation by the Agency.</content><note type="source"><p>Source Note: The provisions of this §807.282 adopted to be effective August 28, 2006, 31 TexReg 6803; amended to be effective November 14, 2016, 41 TexReg 9020; amended to be effective November 28, 2022, 47 TexReg 7914.</p></note></section><section identifier="/us/state/tx/tac/t40/p20/c807/scO/s807.283"><num value="807.283">§807.283</num><heading>Attendance Record Keeping</heading><content>(a) The following requirements are for non-Title IV schools:(1) A school shall maintain a master record of attendance on each student that clearly indicates the name of the program, program begin and end dates, dates of attendance, and the scheduled hours each day.(2) Each instructor shall maintain a record of attendance, which shall record the instructor's name, program name, subject name, date, number of scheduled hours for that date, and the hours of absence. Entries in the record of attendance shall be made in ink or other permanent medium, including other permanent computer records, and shall not be changed.(b) Nothing in this chapter prevents a Title IV school from voluntarily using attendance as a manner of fulfilling the requirements of this chapter.</content><note type="source"><p>Source Note: The provisions of this §807.283 adopted to be effective August 28, 2006, 31 TexReg 6803; amended to be effective November 28, 2022, 47 TexReg 7914.</p></note></section><section identifier="/us/state/tx/tac/t40/p20/c807/scO/s807.284"><num value="807.284">§807.284</num><heading>Reporting</heading><content>(a) Schools shall report to the Agency, as directed, the facts and information about their programs and operations deemed necessary for the proper administration of the Act and any rules adopted under the Act.(1) The data to be reported by a school shall include:(A) student enrollment information for all programs;(B) completion, employment, and job placement information for all programs approved for an occupational objective; and(C) any other required information.(2) The school shall submit the required data to the Agency on or before the specified date.(3) The school shall provide the data in an electronic format prescribed by the Agency unless a different format is approved in writing by the Agency.(4) When good cause is shown, the Agency may extend the deadline for submission of the data required under this section; however, the extension shall be effective only if authorized in writing.(5) The Agency may require schools to maintain on file the verifiable documentation supporting the data reported and make it available to the Agency upon request.(b) The Agency will develop and apply data monitoring and audit protocols for the data reported under subsection (a) of this section, in a manner sufficient to reasonably determine the accuracy of the reported information.(c) The Agency may impose penalties or sanctions, or both, for failure to submit data under subsection (a) of this section by the due dates required, or for submission of data that is shown to contain inaccuracies.(d) For any programs not meeting a minimum employment rate, the following graduated corrective actions will be taken:(1) For a program not meeting the minimum employment rate for the first year, the school will be required to develop and submit a performance improvement plan acceptable to the Agency;(2) For a program not meeting the minimum employment rate for the second consecutive year, but showing improvement of at least 50 percent of the difference between the reported rate and the minimum employment rate of the previous year, the school will be required to reexamine and submit modifications to the performance improvement plan acceptable to the Agency;(3) For a program not meeting the minimum employment rate for the second consecutive year and not showing improvement of at least 50 percent of the difference between the reported rate and the minimum employment rate of the previous year, conditions will be placed on the school's certificate, which include:(A) modification of the performance improvement plan; and(B) suspension of new enrollment of students funded with Local Workforce Development Board-allocated funds in the program; and(4) For a program not meeting the minimum employment rate for the third consecutive year, the Agency will revoke approval of the program.(e) The Agency will publish on its website information compiled from:(1) data reported under subsection (a) of this section; and(2) any other information collected about schools and programs deemed appropriate and useful to the public, which:(A) assists a person in deciding whether to enroll in a school or in identifying or choosing which postsecondary institution, school, or college to attend; and(B) addresses regulatory compliance and performance of schools.(3) The Agency, to the extent practical, shall present the published information in a manner that is consistent among institutions, schools, and colleges; easy to understand; and accessible to the public.</content><note type="source"><p>Source Note: The provisions of this §807.284 adopted to be effective January 23, 2012, 37 TexReg 200; amended to be effective November 28, 2022, 47 TexReg 7914.</p></note></section></subchapter><subchapter identifier="/us/state/tx/tac/t40/p20/c807/scP"><num value="P">SUBCHAPTER P</num><heading>COMPLAINTS</heading><section identifier="/us/state/tx/tac/t40/p20/c807/scP/s807.301"><num value="807.301">§807.301</num><heading>School Policy Regarding Complaints</heading><content>The school shall:(1) submit a written grievance procedure designed to resolve disputes between current and former students and the school for Agency approval;(2) provide a copy of the grievance procedure to each student and maintain proof of such delivery;(3) maintain records regarding grievance filings and resolutions;(4) diligently work to resolve all complaints at the local school level; and(5) post a visible notice on the school's website and centrally located at or near the school's main entrance; in at least one of the student common areas (for example, the student cafeteria and/or breakroom); in places where student solicitation, financial aid assistance, and enrollment activities take place; and other locations as necessary to respond to problems with career school rule compliance, which states that:(A) the school has a certificate of approval from the Agency, and provides the Agency-assigned school number;(B) the school's programs are approved by the Agency and may also be approved by other state agencies or accrediting bodies, and provides the name of any accrediting body and state agency, as applicable;(C) students who are dissatisfied with the school's response to their complaints can file a formal complaint with the Agency, as well as with the school's accrediting body, if applicable; and(D) additional information on complaint procedures is located on the Agency's Career Schools and Colleges website.</content><note type="source"><p>Source Note: The provisions of this §807.301 adopted to be effective August 28, 2006, 31 TexReg 6803; amended to be effective December 20, 2010, 35 TexReg 11392; amended to be effective November 28, 2022, 47 TexReg 7914.</p></note></section><section identifier="/us/state/tx/tac/t40/p20/c807/scP/s807.302"><num value="807.302">§807.302</num><heading>Complaints and Investigations</heading><content>(a) The Agency may investigate or refer to other authorities with jurisdiction to investigate, as appropriate, all complaints received about a school, whether licensed or unlicensed.(b) The Agency may determine the extent of investigation needed by considering various factors, such as:(1) the seriousness of the alleged violation;(2) the source of the complaint;(3) the school's history of compliance and complaints;(4) the timeliness of the complaint;(5) the feasibility of investigations; and(6) any other reasonable matter deemed appropriate.(c) The Agency may require adequate documentation or other evidence of the violation before initiating a complaint investigation. Notwithstanding subsection (a) of this section, anonymous complaints will not be investigated but will be reviewed to identify any action needed.(d) Unless good cause is shown, a complaint is timely only if it is filed with the Agency while the student who files the complaint is enrolled or within two years of the date the student withdraws, terminates, or graduates from the course that is the subject of the complaint. Good cause includes, but is not limited to, fraud. If a complaint is not timely, the Agency may decline to investigate it.(e) The investigation fee authorized by the Act is based on a per site visit. The school director shall be notified that an on-site visit was conducted when the investigation results in assessment of a fee.</content><note type="source"><p>Source Note: The provisions of this §807.302 adopted to be effective August 28, 2006, 31 TexReg 6803; amended to be effective January 23, 2012, 37 TexReg 200; amended to be effective November 28, 2022, 47 TexReg 7914.</p></note></section></subchapter><subchapter identifier="/us/state/tx/tac/t40/p20/c807/scQ"><num value="Q">SUBCHAPTER Q</num><heading>TRUCK DRIVER TRAINING PROGRAMS</heading><section identifier="/us/state/tx/tac/t40/p20/c807/scQ/s807.321"><num value="807.321">§807.321</num><heading>General Information Regarding Truck Driver Training</heading><content>(a) A school providing truck driver training shall ensure that the truck driver instructors complete a truck driver instructor development course with at least 40 hours of course time.(b) All truck driver training programs shall comply with applicable requirements outlined in 49 Code of Federal Regulations Part 380, its successors, and any other applicable legal requirements, and must be listed on the Federal Motor Carrier Safety Administration registry, called the Training Provider Registry.</content><note type="source"><p>Source Note: The provisions of this §807.321 adopted to be effective August 28, 2006, 31 TexReg 6803; amended to be effective November 28, 2022, 47 TexReg 7914.</p></note></section><section identifier="/us/state/tx/tac/t40/p20/c807/scQ/s807.322"><num value="807.322">§807.322</num><heading>Truck Driver Instructor Development Course</heading><content>(a) A school shall apply to the Agency for approval to provide a truck driver instructor development course.(b) The instructor development course shall consist of 40 hours of course time, which includes at least the following topics.(1) Five hours shall cover techniques of instruction including: qualities of a competent instructor, the learning process, methods of teaching, development of efficient teaching habits, demonstration teaching, the use of instruction material and training aids, course preparation, lesson plans, testing and evaluation, and the duration and frequency of lessons.(2) Two hours shall cover personality factors affecting the driver and pedestrian including: natural abilities; senses; mind and nerves; bones and muscles; knowledge of vehicle, road, traffic, and self; attitudes and emotions; reaction time; and reactions to alcohol, carbon monoxide, over-the-counter drugs, prescription drugs, illegal drugs, heart ailments, epilepsy, diabetes, insanity, exhaustion, tension, and monotony.(3) Six hours shall cover state laws as located in the Texas Motor Vehicle Law book relating to the operation of motor vehicles including: driver's license, vehicle registration, certificate of title, operation of vehicles, uniform act, miscellaneous offenses, and safety responsibility.(4) Eight hours shall cover driving procedures including: handling--city, rural, night, mountain, and freeway driving; fog, rain, sandstorms, and other hazardous weather conditions; road hazards and recovery procedures for slick roads; blowout hazards and running off the road; traffic signs, markings, and signals; use of rearview mirrors; vehicle braking and stopping distances; following distances; right-of-way, when and how to yield it; vehicle acceleration and deceleration; yielding right-of-way to emergency vehicles; driver signals; proper passing procedures; procedures and problems for passing on two and three-lane roadways; and super-size motorized equipment.(5) Three hours shall cover physical forces affecting the motor vehicle in motion including: forces of gravity; friction; acceleration, mass, and force; inertia and centrifugal force; kinetic energy and momentum; kinetic energy and braking; and horsepower and acceleration.(6) Two hours shall cover highway characteristics including: primary, secondary, expressway, freeway, farm or ranch road, two-way two-lane, two-way three-lane, two-way multilane, two-way multilane divided, one-way multilane, parking, and traffic controls. Traffic control topics consist of the following:(A) sign topics including shape, color, location and importance;(B) traffic marking topics including center and lane lines, no passing zone, transition markings, turn lane marking, stop lines, crosswalk lines, and so forth; and(C) signal topics including classification, location, type, timing.(7) Two hours shall cover automobile systems and maintenance including: electrical system--generator, alternator, battery, lighting, and electric-powered equipment; cooling system--lubrication and fuel systems; power train--engine, transmission, and differential; brake system--wheels and tires, caster, camber, toe-in, balance, inflation, tire condition, and care; exhaust system; instruments and gauges; compartment adjustments--seat, ventilation, mirrors, headrests, seat belts, and shoulder harness; starting the engine and warm-up procedures; safety devices--door locks, headrests; and miscellaneous features--windshield wipers, heater, and defroster.(8) Two hours shall cover behind-the-wheel elementary lessons with demonstration in an appropriate vehicle and practice to be performed in the presence of the instructor including: starting; steering; stopping; shifting gears; backing; turning--right and left; and parking and starting on grade.(9) Six hours shall cover behind-the-wheel driving safety lessons with demonstration in an appropriate vehicle and practice to be performed in the presence of the instructor including: developing good seeing habits; speed control; safe following; lane driving and lane changing; intersections and right-of-way; proper signaling; correct turn procedures; detecting of and handling problems--vehicle, cycle, pedestrian; freeway driving--ramp use, entering, exiting, lane use, emergency stopping; parking procedures; entering traffic from parked position; and night driving.(10) Two hours shall cover school and instructor approval requirements including the following: school approval requirements, instructor approval requirements, classroom and automotive equipment requirements, required student records, contract requirements, and deportment of instructors.(11) Two hours shall cover specialized training regarding the following: students with physical, mental, or emotional handicaps; illiterate students; non-English-speaking students; and habitual violators and problem drivers.</content><note type="source"><p>Source Note: The provisions of this §807.322 adopted to be effective August 28, 2006, 31 TexReg 6803; amended to be effective November 28, 2022, 47 TexReg 7941.</p></note></section><section identifier="/us/state/tx/tac/t40/p20/c807/scQ/s807.323"><num value="807.323">§807.323</num><heading>Behind-the-Wheel Instruction</heading><content>A school providing behind-the-wheel instruction shall ensure that the instruction includes:(1) actual driving practice while the motor vehicle is in motion;(2) no more than four persons, excluding the instructor, occupying any motor vehicle during the behind-the-wheel instruction;(3) notice in all contracts and advertisements of behind-the-wheel instruction being conducted with groups of students, if applicable; and(4) credit toward satisfying minimum standards for behind-the-wheel instruction for only actual time spent behind the wheel in vehicle operation.</content><note type="source"><p>Source Note: The provisions of this §807.323 adopted to be effective August 28, 2006, 31 TexReg 6803.</p></note></section><section identifier="/us/state/tx/tac/t40/p20/c807/scQ/s807.324"><num value="807.324">§807.324</num><heading>Motor Vehicle Insurance</heading><content>A school providing truck driver training shall ensure that:(1) a current list of vehicles used in truck driver training is filed with the Agency on a form provided by the Agency;(2) an insurance certificate accompanies each motor vehicle used in training and is filed with the Agency on or before the date the school files an original or renewal application for approval of the program with the Agency;(3) an insuring company or carrier issues an insurance certificate on a form furnished by the Agency directly to the Agency, which states the insurance company or carrier has issued a policy or policies of insurance, and the amounts of insurance for each vehicle listed on the list of vehicles used in truck driver training;(4) a written notice is provided to the Agency by registered or certified mail at least 10 days prior to the expiration date of insurance coverage of a listed vehicle; and(5) a copy of the written notice of cancellation of insurance on any listed vehicle is provided to the Agency by registered or certified mail immediately upon receipt of notice by the school.</content><note type="source"><p>Source Note: The provisions of this §807.324 adopted to be effective August 28, 2006, 31 TexReg 6803; amended to be effective November 28, 2022, 47 TexReg 7914.</p></note></section><section identifier="/us/state/tx/tac/t40/p20/c807/scQ/s807.325"><num value="807.325">§807.325</num><heading>Prohibited Activities Regarding Truck Driver Training</heading><content>(a) A school, a trainer of truck driver instructors, or a truck driver instructor shall not:(1) allow an instructor to give instruction or allow a student to secure instruction in the classroom or in a motor vehicle if that instructor or student is using or exhibits any evidence or effect of an alcoholic beverage, controlled substance, or other such impairment;(2) permit a student to operate a motor vehicle without a valid driver's license or instruction permit in the student's possession during behind-the-wheel instruction;(3) permit more than a ratio of four students per vehicle and three vehicles per instructor on truck driving ranges;(4) permit more than four students per vehicle per instructor during street instruction for truck driver training; or(5) advertise or otherwise state or imply that a driver's license or permit is guaranteed or assured to any student or individual who may take or complete any instruction or course of instruction, enroll, or otherwise receive instruction in any truck driver training school.(b) The Agency may suspend, revoke, or refuse to renew approval of a truck driver instructor or a trainer of truck driver instructors, upon determining that the applicant or instructor has been:(1) convicted under the laws of this state, another state, or the United States of any felony; of an offense of criminally negligent homicide committed as a result of the person's operation of a motor vehicle; of an offense involving driving while intoxicated or under the influence; or of an offense involving tampering with a governmental record; or(2) found incompetent or is incompetent to:(A) safely operate a motor vehicle; or(B) properly conduct classroom or behind-the-wheel instruction.</content><note type="source"><p>Source Note: The provisions of this §807.325 adopted to be effective August 28, 2006, 31 TexReg 6803; amended to be effective November 28, 2022, 47 TexReg 7914.</p></note></section><section identifier="/us/state/tx/tac/t40/p20/c807/scQ/s807.326"><num value="807.326">§807.326</num><heading>Required Training for Students</heading><content>All career schools and colleges Commercial Driver's License (CDL) training programs must include training on the recognition and prevention of human trafficking, the content of which is to be established by the Agency in collaboration with the Office of the Attorney General.</content><note type="source"><p>Source Note: The provisions of this §807.326 adopted to be effective December 5, 2017, 42 TexReg 6812.</p></note></section></subchapter><subchapter identifier="/us/state/tx/tac/t40/p20/c807/scR"><num value="R">SUBCHAPTER R</num><heading>CLOSED SCHOOLS</heading><section identifier="/us/state/tx/tac/t40/p20/c807/scR/s807.341"><num value="807.341">§807.341</num><heading>School Closures</heading><content>(a) Owners with knowledge of a school's impending closure shall notify the Agency as soon as possible or practical.(b) Prior to closure a school must:(1) contact the Agency regarding a school survey visit and the process required to close out the school records;(2) complete any closure documents required by the Agency;(3) provide information on any teach out plans or arrangements; and(4) complete any other requirements deemed necessary by the Agency for an orderly closure.(c) The Agency may impose penalties, sanctions, or both on an owner, as defined by §807.2(30) of this chapter, or on a person associated with a school closure for a school's failure to comply with proper closure procedures.(d) The Agency may declare a school to be closed when:(1) written notification is received by the Agency from the school owner stating the school will close;(2) Agency determines that the school facility has been vacated without prior notification of a change of address given to the Agency;(3) an owner with multiple school locations transfers all students from one school location to another school location;(4) the school dismisses all students, contrary to the school's class schedule as printed in the school catalog; or(5) the school fails to maintain the faculty, facilities, equipment, or courses of instruction on the basis for which approval was issued.(e) After the Agency determines that a school will close or is closed, the Agency will attempt to notify students concerning their options to accept a teach-out or to receive a proportional tuition refund based on available funds. Notification to students may include constructive notice in news media, student meetings, or mailings to students.(f) Each teach-out requires approval of the Agency to determine whether the course of instruction is available, reasonable, and comparable with the course of instruction of the closed school. The teach-out is subject to the following conditions:(1) Transfers of students from a closed school to another school under the same ownership shall not constitute a teach-out.(2) In order to be eligible for a teach-out, students shall submit a signed statement of acceptance to the teach-out school by the deadline as established by the Agency.(3) The school offering the teach-out shall give credit for all comparable training received at the closed school, as determined by the Agency.</content><note type="source"><p>Source Note: The provisions of this §807.341 adopted to be effective August 28, 2006, 31 TexReg 6803; amended to be effective November 28, 2022, 47 TexReg 7914.</p></note></section><section identifier="/us/state/tx/tac/t40/p20/c807/scR/s807.342"><num value="807.342">§807.342</num><heading>Tuition Trust Account</heading><content>(a) In a year in which the Agency determines it is necessary to charge a fee under §132.2415(b) of the Act, each school shall make a payment to the tuition trust account at the time the school renewal fee is paid.(b) The amount in the tuition trust account, as provided in the Act, is an accrued balance. The accrued balance is the cash balance of the tuition trust account less the sum of the accrued liabilities from unpaid student refunds and teach-out claims.(c) Disbursements shall be made from the tuition trust account for student refunds and reimbursable teach-out expenses incurred during each 12-month period ending August 31, and shall be:(1) made first for student refunds in accordance with §132.2415(d) of the Act and §807.262 of this chapter;(2) calculated after refunds or discharges from other funding sources have been determined;(3) disbursed to other funding sources from any amount remaining under the limitation of §132.242(e) of the Act; and(4) disbursed for reimbursable teach-out expenses based upon remaining funds in the account.(d) Following the graduation or termination of the students from the teach-out school, the teach-out school shall determine actual expenses and submit a claim for reimbursement to the Agency on or before the date provided in the application packet. The teach-out school shall:(1) not claim expenses for facilities, equipment, utilities, or other items which were owned, rented, used, or otherwise obligated by the school prior to the Agency's approval of the teach-out program, even though such items may be used for the teach-out program;(2) be limited to expenses for tuition and fees that are nonrecoverable from all financial resources, including grants and loans; and(3) ensure that the sum of the tuition and fees paid to the student's account at the closed school and the teach-out school is the lesser amount the student would have been charged for the complete program at the closed school or the teach-out school.</content><note type="source"><p>Source Note: The provisions of this §807.342 adopted to be effective August 28, 2006, 31 TexReg 6803; amended to be effective November 14, 2016, 41 TexReg 9020; amended to be effective November 28, 2022, 47 TexReg 7914.</p></note></section></subchapter><subchapter identifier="/us/state/tx/tac/t40/p20/c807/scS"><num value="S">SUBCHAPTER S</num><heading>SANCTIONS</heading><section identifier="/us/state/tx/tac/t40/p20/c807/scS/s807.351"><num value="807.351">§807.351</num><heading>Notice and Administration of Sanctions</heading><content>(a) Pursuant to its authority under §132.152 of the Act, the Agency may impose administrative penalties or other sanctions on an entity for violations of §132.151 of the Act or this chapter.(b) The Agency will serve notice of a sanction, with determination of the violation on which it is based, by both email and certified mail, return receipt requested, mailed to the owner's address of record as listed on the application for certificate of approval. Unless there is other evidence of receipt, notice is presumed received five days from the date it is mailed by the Agency.(c) In imposing administrative penalties or other sanctions, the Agency may consider all the factors that it deems relevant, including, but not limited to, the following:(1) The amount of administrative penalty or level of sanction necessary to ensure immediate and continued compliance with statutes and regulations;(2) The conduct of the entity in taking all reasonable steps or procedures necessary and appropriate to comply with statutes and regulations and to correct the violation; and(3) The entity's prior violations of statutes, regulations, or orders administered, adopted, or issued by the Agency.(d) Notwithstanding subsections (a) - (c) of this section, the Agency may order refunds pursuant to applicable statute and rules.</content><note type="source"><p>Source Note: The provisions of this §807.351 adopted to be effective January 23, 2012, 37 TexReg 200; amended to be effective November 28, 2022, 47 TexReg 7914.</p></note></section><section identifier="/us/state/tx/tac/t40/p20/c807/scS/s807.352"><num value="807.352">§807.352</num><heading>Sanctions</heading><content>(a) Sanctions may include:(1) administrative penalties outlined in §807.353 of this subchapter;(2) denying the school's application for a certificate of approval;(3) revoking the school's certificate of approval;(4) placing conditions on the school's certificate of approval;(5) suspending the admission of students to the school or a program;(6) denying a program approval;(7) revoking a program approval;(8) disapproving or revoking approval of an owner, school director, instructor, or other staff member whose approval may be required;(9) denying, suspending, placing conditions on, or revoking the registration of the school's representatives;(10) assessing a late refund penalty;(11) charging the school an investigation fee to resolve a complaint against the school;(12) charging the school interest and penalties on late payments of fee installments;(13) applying for an injunction against the school;(14) asking the attorney general to collect a civil penalty from any person who violates the Act or this chapter;(15) ordering a peer review of the school; and(16) issuing a cease and desist order to an unlicensed school.(b) Notwithstanding subsection (a)(1) - (16) of this section, the Agency may order refunds pursuant to violations of the Act and this chapter.</content><note type="source"><p>Source Note: The provisions of this §807.352 adopted to be effective January 23, 2012, 37 TexReg 200; amended to be effective November 28, 2022, 47 TexReg 7914.</p></note></section><section identifier="/us/state/tx/tac/t40/p20/c807/scS/s807.353"><num value="807.353">§807.353</num><heading>Administrative Penalties</heading><content>(a) An administrative penalty shall not exceed the amount specified in §132.152 of the Act for each instance of a violation and shall be assessed in accordance with that section.(b) The administrative penalty is calculated based on a penalty dollar amount and the number of instances of violation.(c) A violation is considered a repeat violation only where notice of a violation or an administrative penalty has been issued previously for that same violation.(d) The assessment of an administrative penalty shall not preclude the Agency from administering other sanctions, up to and including revocation of a school's certificate of approval.(e) The following penalty matrix is for determining and assessing an administrative penalty. The absence of a particular violation from the matrix shall not preclude the Agency from assessing an administrative penalty.Attached Graphic</content><note type="source"><p>Source Note: The provisions of this §807.353 adopted to be effective January 23, 2012, 37 TexReg 200; amended to be effective January 8, 2013, 38 TexReg 154; amended to be effective November 14, 2016, 41 TexReg 9020; amended to be effective November 28, 2022, 47 TexReg 7914.</p></note></section></subchapter><subchapter identifier="/us/state/tx/tac/t40/p20/c807/scT"><num value="T">SUBCHAPTER T</num><heading>CEASE AND DESIST ORDERS</heading><section identifier="/us/state/tx/tac/t40/p20/c807/scT/s807.361"><num value="807.361">§807.361</num><heading>Statement of Charges and Notice of Hearing on Cease and Desist Orders</heading><content>If the Agency believes a person is operating a career school or college without a certificate of approval in violation of §132.151 of the Act, the Agency may issue a statement of charges and notice of hearing to consider the issuance of a cease and desist order.</content><note type="source"><p>Source Note: The provisions of this §807.361 adopted to be effective January 23, 2012, 37 TexReg 200.</p></note></section><section identifier="/us/state/tx/tac/t40/p20/c807/scT/s807.362"><num value="807.362">§807.362</num><heading>Contents of Statement of Charges and Notice of Hearing</heading><content>The statement of charges and notice of hearing issued by the Agency will contain the following information:(1) The name and last known address of the person against whom the order may be entered;(2) A short and plain statement of the reasons the Agency believes the person is operating a career school or college without a certificate of approval; and(3) The date, time, and location of the hearing.</content><note type="source"><p>Source Note: The provisions of this §807.362 adopted to be effective January 23, 2012, 37 TexReg 200; amended to be effective November 14, 2016, 41 TexReg 9020; amended to be effective November 28, 2022, 47 TexReg 7914.</p></note></section><section identifier="/us/state/tx/tac/t40/p20/c807/scT/s807.363"><num value="807.363">§807.363</num><heading>Service of Statement and Charges and Hearing Notice for the Issuance of Cease and Desist Orders</heading><content>The statement of charges and notice of hearing to consider a cease and desist order shall be served by certified mail, return receipt requested, on the person against whom the order is entered. Notice is presumed received five days from the date it is mailed by the Agency.</content><note type="source"><p>Source Note: The provisions of this §807.363 adopted to be effective January 23, 2012, 37 TexReg 200.</p></note></section><section identifier="/us/state/tx/tac/t40/p20/c807/scT/s807.364"><num value="807.364">§807.364</num><heading>Ex Parte Consultations</heading><content>(a) A Commissioner or employee of the Agency assigned to render a decision or to make findings of fact and conclusions of law in a cease and desist proceeding shall not directly or indirectly communicate in connection with an issue of fact or law with the Commission, a person, a party, or a representative of those entities, except on notice and opportunity for each party to participate.(b) A Commissioner or employee of the Agency assigned to render a decision or to make findings of fact and conclusions of law in a cease and desist hearing may communicate ex parte with an Agency employee who has not participated in a hearing in the case for the purpose of using the special skills or knowledge of the Agency and its staff in evaluating the evidence.(c) This section shall be construed liberally to promote the effectiveness and efficiency of issuance of cease and desist orders.</content><note type="source"><p>Source Note: The provisions of this §807.364 adopted to be effective January 23, 2012, 37 TexReg 200.</p></note></section><section identifier="/us/state/tx/tac/t40/p20/c807/scT/s807.365"><num value="807.365">§807.365</num><heading>Hearing Decision and Final Review by the Agency</heading><content>(a) Within 10 days after the hearing is held, the hearing officer shall issue a written decision granting or denying the request for the issuance of a cease and desist order that includes findings of fact and conclusions of law. The hearing decision shall be mailed by certified mail, return receipt requested, and is presumed received five days from the date it is mailed. The hearing officer's decision becomes final the 15th day after receipt of the hearing decision unless an appeal is filed under subsection (b) of this section.(b) A party that is not satisfied with the decision of the hearing officer may file a written appeal of the decision to the Agency for a final review no later than the 15th day after receipt of the hearing decision. The written appeal shall contain the party's arguments as to why the decision of the hearing officer should be reversed.(c) Upon receipt of the written appeal of the hearing officer's decision, the Agency shall consider the appeal and issue a decision promptly. The Agency shall consider the appeal on the basis of the record made before the hearing officer. The decision of the Agency shall be mailed by certified mail, return receipt requested, and is presumed received five days from the date it is mailed.</content><note type="source"><p>Source Note: The provisions of this §807.365 adopted to be effective January 23, 2012, 37 TexReg 200; amended to be effective November 14, 2016, 41 TexReg 9020; amended to be effective November 28, 2022, 47 TexReg 7914.</p></note></section><section identifier="/us/state/tx/tac/t40/p20/c807/scT/s807.366"><num value="807.366">§807.366</num><heading>Cease and Desist Order</heading><content>(a) If the request for the issuance of a cease and desist order becomes final under the provisions of §807.365(a) of this subchapter or, if after an appeal the decision under §807.365(c) of this subchapter upholds the issuance of a cease and desist order by the Agency, the hearing officer shall issue a cease and desist order against the person who is found operating a career school or college without a certificate of approval in violation of §132.151 of the Act.(b) The cease and desist order shall be delivered by certified mail, return receipt requested, and is presumed received five days from the date it is mailed.(c) From the date of receipt of the issuance of the cease and desist order, the person must completely cease and desist operating the career school or college.(d) The cease and desist order shall remain in effect until the person comes into complete compliance with the Act as determined by the Agency, or unless otherwise provided by the order of the Agency.</content><note type="source"><p>Source Note: The provisions of this §807.366 adopted to be effective January 23, 2012, 37 TexReg 200; amended to be effective November 28, 2022, 47 TexReg 7914.</p></note></section></subchapter><subchapter identifier="/us/state/tx/tac/t40/p20/c807/scU"><num value="U">SUBCHAPTER U</num><heading>CAREER SCHOOLS HEARINGS</heading><section identifier="/us/state/tx/tac/t40/p20/c807/scU/s807.381"><num value="807.381">§807.381</num><heading>Purpose</heading><content>This subchapter provides a hearing process to the extent authorized by the Act and the rules administered by the Agency.</content><note type="source"><p>Source Note: The provisions of this §807.381 adopted to be effective January 23, 2012, 37 TexReg 200.</p></note></section><section identifier="/us/state/tx/tac/t40/p20/c807/scU/s807.383"><num value="807.383">§807.383</num><heading>Information on Right of Appeal</heading><content>An issuer of a determination shall inform the career school applicant or any party directly aggrieved by the determination of the right to a hearing. The notice shall explain the procedure for an appeal, the party's right of appeal, and the right to be represented by others, including legal counsel.</content><note type="source"><p>Source Note: The provisions of this §807.383 adopted to be effective January 23, 2012, 37 TexReg 200.</p></note></section><section identifier="/us/state/tx/tac/t40/p20/c807/scU/s807.384"><num value="807.384">§807.384</num><heading>Request for Hearing</heading><content>(a) The party seeking review of a determination under this subchapter relating to career schools hearings shall request a hearing in writing within 15 days after receipt of the notice of determination.(b) The request shall be addressed as provided in the determination and state the nature of the determination, the name and identifying information of the requesting party, and a request that the determination be reviewed.(c) The request may include an explanation of why the determination should be changed; however, this is not a jurisdictional requirement.</content><note type="source"><p>Source Note: The provisions of this §807.384 adopted to be effective January 23, 2012, 37 TexReg 200.</p></note></section><section identifier="/us/state/tx/tac/t40/p20/c807/scU/s807.385"><num value="807.385">§807.385</num><heading>Setting of Hearing</heading><content>(a) Upon receipt of request for a hearing, the Agency will promptly mail a notice of hearing that sets the hearing for a reasonable time and place within 30 days from receipt of the request for a hearing.(b) The notice of hearing shall be in writing and include a:(1) statement of the date, time, place, and nature of the hearing;(2) statement of the legal authority under which the hearing is to be held; and(3) short and plain statement of the issues to be considered during the hearing.(c) The notice of hearing shall be issued at least 10 days before the date of the hearing unless a shorter period is permitted by statute.(d) The hearing notice shall state whether the hearing shall be conducted by telephone or in-person. The hearing notice shall also include the location of an in-person hearing.(e) Parties needing special accommodations, including a bilingual or sign language interpreter, may request such before the setting of the hearing, if possible, or as soon as practical.</content><note type="source"><p>Source Note: The provisions of this §807.385 adopted to be effective January 23, 2012, 37 TexReg 200; amended to be effective November 28, 2022, 47 TexReg 7914.</p></note></section><section identifier="/us/state/tx/tac/t40/p20/c807/scU/s807.386"><num value="807.386">§807.386</num><heading>Hearing Officer Independence and Impartiality</heading><content>(a) A hearing officer presiding over a hearing shall have all powers necessary and appropriate to conduct a full, fair, and impartial hearing. Hearing officers shall remain independent and impartial in all matters regarding the handling of any issues during the pendency of a case and in issuing their written decisions.(b) A hearing officer shall be disqualified if the hearing officer has a personal interest in the outcome of the appeal or if the hearing officer directly or indirectly participated in the determination on appeal. Any party may present facts to the Agency in support of a request to disqualify a hearing officer.(c) The hearing officer may withdraw from a hearing to avoid the appearance of impropriety or partiality.(d) Following any disqualification or withdrawal of a hearing officer, the Agency will assign an alternate hearing officer to the case. The alternate hearing officer shall not be bound by any findings or conclusions made by the disqualified or withdrawn hearing officer.</content><note type="source"><p>Source Note: The provisions of this §807.386 adopted to be effective January 23, 2012, 37 TexReg 200; amended to be effective November 28, 2022, 47 TexReg 7914.</p></note></section><section identifier="/us/state/tx/tac/t40/p20/c807/scU/s807.387"><num value="807.387">§807.387</num><heading>Hearing Procedures</heading><content>(a) The hearing shall be conducted telephonically, unless an in-person hearing is requested and the hearing officer deems an in-person hearing appropriate or the hearing officer determines that another method of conducting the hearing is appropriate.(b) The hearing shall be conducted informally and in such a manner as to ascertain the substantive rights of the parties. All issues relevant to the appeal shall be considered and addressed, and may include:(1) Presentation of Evidence. The parties to an appeal may present evidence that is material and relevant, as determined by the hearing officer. In conducting a hearing, the hearing officer shall actively develop the record on the relevant circumstances and facts to resolve all issues. To be considered as evidence in a decision, any document or physical evidence must be entered as an exhibit at the hearing. A party has the right to object to evidence offered at the hearing by the hearing officer or other parties.(2) Examination of Parties and Witnesses. After placing the witnesses under oath, the hearing officer shall examine parties and any witnesses and shall allow cross-examination to the extent the hearing officer deems necessary to afford the parties due process.(3) Additional Evidence. The hearing officer, with or without notice to any of the parties, may take additional evidence as deemed necessary, provided that a party shall be given an opportunity to rebut the evidence if it is to be used against the party's interest.(4) Appropriate Hearing Behavior. All parties shall conduct themselves in an appropriate manner. The hearing officer may expel any individual or party who fails to correct behavior the hearing officer identifies as disruptive. After expulsion, the hearing officer may proceed with the hearing and render a decision.(c) Records.(1) The hearing record shall include the audio recording of the proceeding and any other relevant evidence relied on by the hearing officer, including documents and other physical evidence entered as exhibits.(2) The hearing record shall be maintained in accordance with federal and state law.(3) Confidentiality of information contained in the hearing record shall be maintained in accordance with federal and state law.(4) Upon request, a party has the right to obtain a copy of the hearing record at no charge. However, a party requesting a transcript of the hearing record shall pay the costs of the transcription.</content><note type="source"><p>Source Note: The provisions of this §807.387 adopted to be effective January 23, 2012, 37 TexReg 200; amended to be effective November 28, 2022, 47 TexReg 7914.</p></note></section><section identifier="/us/state/tx/tac/t40/p20/c807/scU/s807.388"><num value="807.388">§807.388</num><heading>Postponements, Continuances, and Withdrawals</heading><content>(a) The hearing officer may grant a postponement of a hearing for good cause at a party's request.(b) A continuance of a hearing may be ordered at the discretion of the hearing officer in order to consider additional, necessary evidence or for any other reason the hearing officer deems appropriate.(c) A party may withdraw an appeal at any time prior to the issuance of the final decision.</content><note type="source"><p>Source Note: The provisions of this §807.388 adopted to be effective January 23, 2012, 37 TexReg 200.</p></note></section><section identifier="/us/state/tx/tac/t40/p20/c807/scU/s807.389"><num value="807.389">§807.389</num><heading>Evidence</heading><content>(a) Evidence Generally. Evidence, including hearsay evidence, shall be admitted if it is relevant and if in the judgment of the hearing officer it is the kind of evidence on which reasonably prudent persons are accustomed to rely in the conduct of their affairs. However, the hearing officer may exclude evidence if its probative value is outweighed by the danger of unfair prejudice, by confusion of the issues, or by reasonable concern for undue delay, waste of time, or needless presentation of cumulative evidence.(b) Exchange of Exhibits. Any documentary evidence to be presented during a telephonic hearing shall be exchanged with all parties and a copy shall be provided to the hearing officer in advance of the hearing. Any documentary evidence to be presented at an in-person hearing shall be exchanged at the hearing.(c) Stipulations. The parties, with the consent of the hearing officer, may agree in writing to relevant facts. The hearing officer may decide the appeal based on such stipulations or, at the hearing officer's discretion, may set the appeal for hearing and take such further evidence as the hearing officer deems necessary.(d) Experts and Evaluations. If relevant and useful, testimony from an independent expert or a professional evaluation from a source satisfactory to the parties and the Agency may be ordered by hearing officers, on their own motion or at a party's request. The cost of any such expert or evaluation ordered by the hearing officer shall be borne equally by the parties.(e) Subpoenas.(1) The hearing officer may issue subpoenas to compel the attendance of witnesses and the production of records. A subpoena may be issued either at the request of a party or on the hearing officer's own motion.(2) A party requesting a subpoena shall state the nature of the information desired, including names of any witnesses and the records that the requestor feels are necessary for the proper presentation of the case.(3) The request shall be granted only to the extent the records or the testimony of the requested witnesses appears to be relevant to the issues on appeal.(4) A denial of a subpoena request shall be made in writing or on the record, stating the reasons for such denial.</content><note type="source"><p>Source Note: The provisions of this §807.389 adopted to be effective January 23, 2012, 37 TexReg 200.</p></note></section><section identifier="/us/state/tx/tac/t40/p20/c807/scU/s807.390"><num value="807.390">§807.390</num><heading>Ex Parte Communications</heading><content>(a) The hearing officer shall not participate in ex parte communications, directly or indirectly, in any matter in connection with any substantive issue, with any interested person or party. Likewise, no person shall attempt to engage in ex parte communications with the hearing officer on behalf of any interested person or party.(b) If the hearing officer receives any such ex parte communication, the other parties shall be given an opportunity to review any such ex parte communication.(c) Nothing shall prevent the hearing officer from communicating with parties or their representatives about routine matters such as requests for continuances or opportunities to inspect the file.(d) The hearing officer may initiate communications with an impartial Agency employee who has not participated in a hearing or any determination in the case for the limited purpose of using the special skills or knowledge of the Agency and its staff in evaluating the evidence.</content><note type="source"><p>Source Note: The provisions of this §807.390 adopted to be effective January 23, 2012, 37 TexReg 200.</p></note></section><section identifier="/us/state/tx/tac/t40/p20/c807/scU/s807.391"><num value="807.391">§807.391</num><heading>Change in Determination</heading><content>The issuer of the determination may change the determination any time before the hearing officer issues the decision. Despite the issuer changing the determination, the parties may proceed with the hearing.</content><note type="source"><p>Source Note: The provisions of this §807.391 adopted to be effective January 23, 2012, 37 TexReg 200.</p></note></section><section identifier="/us/state/tx/tac/t40/p20/c807/scU/s807.392"><num value="807.392">§807.392</num><heading>Hearing Decision</heading><content>(a) Following the conclusion of the hearing, the hearing officer shall promptly prepare a written decision on behalf of the Agency.(b) The decision shall be based exclusively on the evidence of record in the hearing and on matters officially noticed in the hearing. The decision shall include:(1) a list of the individuals who appeared at the hearing;(2) the findings of fact and conclusions of law reached on the issues; and(3) the affirmation, reversal, or modification of the determination.(c) Unless a party files a timely motion for rehearing, the Agency may assume continuing jurisdiction to modify or correct a hearing decision until the expiration of 30 calendar days from the mailing date of the hearing decision.</content><note type="source"><p>Source Note: The provisions of this §807.392 adopted to be effective January 23, 2012, 37 TexReg 200.</p></note></section><section identifier="/us/state/tx/tac/t40/p20/c807/scU/s807.393"><num value="807.393">§807.393</num><heading>Motion for Reopening</heading><content>(a) If a party does not appear for a hearing, the party may request the reopening of the hearing within 30 calendar days from the date the decision is mailed.(b) The motion for reopening shall be in writing and detail the reason for failing to appear at the hearing.(c) The Agency may schedule a hearing on whether to grant the reopening.(d) The motion may be granted if the hearing officer determines that the party has shown good cause for failing to appear at the hearing.</content><note type="source"><p>Source Note: The provisions of this §807.393 adopted to be effective January 23, 2012, 37 TexReg 200.</p></note></section><section identifier="/us/state/tx/tac/t40/p20/c807/scU/s807.394"><num value="807.394">§807.394</num><heading>Motion for Rehearing</heading><content>(a) A party has 30 calendar days from the date the decision is mailed to file a motion for rehearing. A rehearing shall be granted only for the presentation of new evidence.(b) A motion for rehearing shall be in writing and allege the new evidence to be considered. The party shall show a compelling reason why this evidence was not presented at the hearing.(c) If the hearing officer determines that the alleged, new evidence warrants a rehearing, a hearing shall be scheduled at a reasonable time and place.(d) The hearing officer shall issue a written decision in response to a timely filed motion for rehearing.(e) The Agency may assume continuing jurisdiction to modify, correct, or reform a decision until the expiration of 30 calendar days from the date of mailing of the hearing decision.</content><note type="source"><p>Source Note: The provisions of this §807.394 adopted to be effective January 23, 2012, 37 TexReg 200.</p></note></section><section identifier="/us/state/tx/tac/t40/p20/c807/scU/s807.395"><num value="807.395">§807.395</num><heading>Finality of Decision</heading><content>(a) The decision of the hearing officer is the final decision of the Agency after the expiration of 30 calendar days from the mailing date of the decision unless within that time:(1) a request for reopening is filed with the Agency;(2) a request for rehearing is filed with the Agency; or(3) the Agency assumes continuing jurisdiction to modify or correct the decision.(b) Any decision issued in response to a request for reopening or rehearing or a modification or correction issued by the Agency becomes final on the expiration of 30 calendar days from the mailing date of the decision, modification, or correction.</content><note type="source"><p>Source Note: The provisions of this §807.395 adopted to be effective January 23, 2012, 37 TexReg 200; amended to be effective November 28, 2022, 47 TexReg 7914.</p></note></section></subchapter></chapter><chapter identifier="/us/state/tx/tac/t40/p20/c808"><num value="808">CHAPTER 808</num><heading>YOUTH DRIVER EDUCATION FUNDING PROGRAM</heading><subchapter identifier="/us/state/tx/tac/t40/p20/c808/scA"><num value="A">SUBCHAPTER A</num><heading>YOUTH DRIVER EDUCATION FUNDING PROGRAM ELIGIBILITY</heading><section identifier="/us/state/tx/tac/t40/p20/c808/scA/s808.1"><num value="808.1">§808.1</num><heading>Eligible Population</heading><content>Unless prohibited under Texas Transportation Code, §521.4265(c), the Agency shall, upon request from an individual who meets the eligibility criteria in this section, pay the fees associated with obtaining a driver's license imposed under Texas Transportation Code, Chapter 521, Subchapter H, or Texas Education Code, Chapter 1001. Eligible individuals for the Youth Driver Education Funding Program include individuals:(1) eligible for a driver's license fee exemption under Texas Transportation Code, §521.1811; or(2) younger than 26 years of age who were or are:(A) in the managing conservatorship of the Texas Department of Family and Protective Services on the day before the individual's 18th birthday; or(B) a homeless child or youth as defined by 42 United States Code §11434a.</content><note type="source"><p>Source Note: The provisions of this §808.1 adopted to be effective July 18, 2022, 47 TexReg 4139.</p></note></section></subchapter><subchapter identifier="/us/state/tx/tac/t40/p20/c808/scB"><num value="B">SUBCHAPTER B</num><heading>USE OF YOUTH DRIVER EDUCATION FUNDS</heading><section identifier="/us/state/tx/tac/t40/p20/c808/scB/s808.21"><num value="808.21">§808.21</num><heading>Verification Process</heading><content>(a) To receive a driver education fee waiver, an eligible individual must identify a driver education provider with whom he or she intends to enroll that:(1) is registered with the Texas Department of Licensing and Registration as a certified Texas driver education provider;(2) is a registered vendor in accordance with rules established by the Agency and the Texas Comptroller of Public Accounts; and(3) charges a rate that does not exceed twice the average rate of all other certified Texas driver education providers within a 30-mile radius of the selected certified Texas driver education provider's physical location. For driver education providers providing online instruction, their rate will be compared to the average rate for online driver education instruction available in Texas.(b) Once a driver education provider is selected, the eligible individual must visit a website designated by the Agency to complete and submit via the website, email, or mail, the Driver Education Waiver Request Form, which includes:(1) individual eligibility verification; and(2) Youth Driver Education Funding Program eligibility verification.(c) Agency staff shall review the form within five business days of submission and notify the requestor of the individual's eligibility status. If staff is unable to determine eligibility, staff will make reasonable efforts to contact the individual for further information.(d) Once participant and Youth Driver Education Funding Program eligibility are determined, Agency staff shall:(1) for an eligible individual, submit a payment request on the individual's behalf to the Agency's Finance Division; or(2) for an ineligible individual, send a response to the individual alerting them of their ineligibility.(e) After an eligible participant has completed enrollment with the selected provider, or submitted documentation that enrollment cannot be completed without payment, the Agency's Finance Division shall review and process the payment request in keeping with Agency policies and procedures regarding fee payment, and if sufficient funds have been transferred from the Texas Department of Public Safety (DPS) to the Agency. If enrollment is not possible without payment, TWC will work with applicants to enroll them at time of payment.(f) An eligible participant who does not complete driver education or a test paid for under this chapter must wait for a period of three months before they enroll in a new course or test to be paid for by this chapter. An eligible participant may have the required waiting period waived by providing a written attestation describing the circumstances that prevented them from attending or completing the driver education or test and explaining why they assert the circumstances were outside their control.(g) The Agency shall pay driver education providers for services provided to an eligible individual from the fund after the individual's application receives approval from the Agency, the driver's education provider submits required payment documentation that is accurate and complete, and the individual submits a completed driver education enrollment agreement.(h) All Youth Driver Education Funding Program uses described in this chapter shall be monitored and reported on as required by the Texas Comptroller of Public Accounts, the Agency, and DPS.(i) Driver education providers shall repay to the Agency improper payments received or refunds due for driver education funded under this chapter in instances:(1) involving fraud committed by the driver education provider;(2) in which the provider was paid for driver education from another source;(3) in which the provider did not deliver driver education; or(4) in which a refund is due under Texas Education Code, Chapter 1001, Subchapter I.</content><note type="source"><p>Source Note: The provisions of this §808.21 adopted to be effective July 18, 2022, 47 TexReg 4139.</p></note></section></subchapter></chapter><chapter identifier="/us/state/tx/tac/t40/p20/c809"><num value="809">CHAPTER 809</num><heading>CHILD CARE SERVICES</heading><subchapter identifier="/us/state/tx/tac/t40/p20/c809/scA"><num value="A">SUBCHAPTER A</num><heading>GENERAL PROVISIONS</heading><section identifier="/us/state/tx/tac/t40/p20/c809/scA/s809.1"><num value="809.1">§809.1</num><heading>Short Title and Purpose</heading><content>(a) The rules contained in this chapter may be cited as the Child Care Services rules.(b) The purpose of the rules contained in this chapter is to interpret and implement the requirements of state and federal statutes and regulations governing child care and quality improvement activities funded through the Commission, to include the Child Care and Development Fund (CCDF), which includes:(1) funds allocated to local workforce development areas (workforce areas) as provided in §800.58 of this title;(2) private donated funds described in §809.17 of this chapter;(3) public transferred funds described in §809.17 of this chapter;(4) public certified expenditures described in §809.17 of this chapter; and(5) funds used for children receiving protective services described in §809.49 of this chapter.(c) The rules contained in this chapter apply to other funds that are used for child care services allocated to workforce areas under Chapter 800 of this title, except for the following:(1) Funds used for quality improvement activities described in §809.16 of this chapter;(2) Assessing the parent share of cost described in §809.19 of this chapter; and(3) Subchapter C of this chapter.(d) The rules contained in this chapter shall apply to the Agency, Local Workforce Development Boards (Boards), their child care contractors, child care providers, parents applying for or eligible to receive child care services, and other entities participating in any Agency child care program or initiative.(e) The Commission may suspend a provision in this chapter for a specified time, on either a statewide or other basis, if the Commission determines that suspending the provision does not violate federal or state statutes or regulations, and:(1) will improve the efficiency and delivery of child care services; or(2) is necessary to implement new service delivery concepts or Commission-approved statewide initiatives or special projects within Commission-defined parameters.</content><note type="source"><p>Source Note: The provisions of this §809.1 adopted to be effective January 29, 2007, 32 TexReg 336; amended to be effective October 3, 2022, 47 TexReg 6437; amended to be effective December 2, 2025, 50 TexReg 7731.</p></note></section><section identifier="/us/state/tx/tac/t40/p20/c809/scA/s809.2"><num value="809.2">§809.2</num><heading>Definitions</heading><content>The following words and terms, when used in this chapter, shall have the following meanings, unless the context clearly indicates otherwise.(1) Attending a job training or educational program--An individual is attending a job training or educational program if the individual:(A) is considered by the program to be officially enrolled; (B) meets all attendance requirements established by the program; and(C) is making progress toward successful completion of the program as demonstrated through continued enrollment in the program upon eligibility redetermination as described in §809.42 of this chapter.(2) Child--An individual who meets the general eligibility requirements contained in this chapter for receiving child care services. (3) Child care contractor--The entity or entities under contract with the Board to manage child care services. This includes contractors involved in determining eligibility for child care services, contractors involved in the billing and provider payment process related to child care, as well as contractors involved in the funding of quality improvement activities as described in §809.16 of this chapter.(4) Child care desert--An area described in Texas Labor Code, §302.0461 in which the number of children under age six with working parents is at least three times greater than the capacity of licensed child care providers in the area, based on data published annually by the Commission.(5) Child Care Regulation (CCR)--Division in the Texas Health and Human Services Commission responsible for protecting the health, safety, and well-being of children who attend or reside in regulated child care facilities and homes.(6) Child care services--Child care subsidies and quality improvement activities funded by the Commission.(7) Child care subsidies--Commission-funded child care payments to an eligible child care provider for the direct care of an eligible child.(8) Child care worker--for purposes of the waiting list priority described in §809.43 of this chapter, and pursuant to Texas Labor Code, §302.0064, a child care worker is an individual employed by and working in a child care facility licensed under Texas Human Resources Code, Chapter 42 for a minimum of 25 hours per week. The term does not include the owner or director of a child care facility unless the owner's or director's child is served in a program other than a program directly supervised by the owner or director. The child care worker definition is effective January 5, 2026.(9) Child experiencing homelessness--A child who is homeless, as defined in the McKinney-Vento Act (42 USC 11434(a)), Subtitle VII-B, §725.(10) Child with disabilities--A child who has a physical or mental impairment that substantially limits one or more major life activities, has a record of such an impairment, or is regarded as having such an impairment. Major life activities include, but are not limited to, caring for oneself; performing manual tasks; walking; hearing; seeing, speaking, or breathing; learning; and working.(11) Educational program--A program that leads to:(A) a high school diploma;(B) a Certificate of High School Equivalency; or(C) an undergraduate degree from an institution of higher education.(12) Excessive unexplained absences--More than 40 unexplained absences within a 12-month eligibility period as described in §809.78 of this chapter.(13) Family--Two or more individuals related by blood, marriage, or decree of court, who are living in a single residence and are included in one or more of the following categories:(A) Two individuals, married--including by common-law, and household dependents; or(B) A parent and household dependents.(14) Household dependent--An individual living in the household who is:(A) an adult considered a dependent of the parent for income tax purposes;(B) a child of a teen parent; or(C) a child or other minor living in the household who is the responsibility of the parent.(15) Improper payments--Any payment of Child Care Development Fund (CCDF) funds that should not have been made or that was made in an incorrect amount (including overpayments and underpayments) under statutory, contractual, administrative, or other legally applicable requirements governing the administration of CCDF grant funds and includes payments:(A) to an ineligible recipient;(B) for an ineligible service;(C) for any duplicate payment; and(D) for services not received.(16) Job training program--A program that provides training or instruction leading to:(A) basic literacy;(B) English proficiency;(C) an occupational or professional certification or license; or(D) the acquisition of technical skills, knowledge, and abilities specific to an occupation.(17) Listed family home--A family home, other than the eligible child's own residence, that is listed but not licensed or registered with CCR, pursuant to Texas Human Resources Code, §42.052(c). (18) Military deployment--The temporary duty assignment away from the permanent military installation or place of residence for reserve components of the single military parent or the dual military parents. This includes deployed parents in the regular military, military reserves, or National Guard.(19) Parent--An individual who is responsible for the care and supervision of a child and is identified as the child's natural parent, adoptive parent, stepparent, legal guardian, or person standing in loco parentis (as determined in accordance with Commission policies and procedures). Unless otherwise indicated, the term applies to a single parent or both parents.(20) Protective services--Services provided when a child:(A) is at risk of abuse or neglect in the immediate or short-term future and the child's family cannot or will not protect the child without Texas Department of Family and Protective Services (DFPS) Child Protective Services (CPS) intervention;(B) is in the managing conservatorship of DFPS and residing with a relative or a foster parent; or(C) has been provided with protective services by DFPS within the prior six months and requires services to ensure the stability of the family.(21) Provider--A provider is defined as a:(A) regulated child care provider; (B) relative child care provider; or(C) listed family home subject to the requirements in §809.91(e) of this chapter.(22) Regulated child care provider--A provider caring for an eligible child in a location other than the eligible child's own residence that is:(A) licensed by CCR;(B) registered with CCR; or(C) operated and monitored by the United States military services.(23) Relative child care provider--An individual who is at least 18 years of age, and is, by marriage, blood relationship, or court decree, the child's:(A) grandparent;(B) great-grandparent;(C) aunt;(D) uncle; or(E) sibling (if the sibling does not reside in the same household as the eligible child).(24) Residing with--Unless otherwise stipulated in this chapter, a child is considered to be residing with the parent when the child is living with, and physically present with, the parent during the time period for which child care services are being requested or received.(25) Teen parent--A teen parent (teen) is an individual 18 years of age or younger, or 19 years of age and attending high school or the equivalent, who has a child.(26) Texas Rising Star program--A quality-based rating system of child care providers participating in Commission-subsidized child care.(27) Texas Rising Star provider--A regulated child care provider meeting the Texas Rising Star program standards. Texas Rising Star providers are:(A) designated as an Entry Level Provider;(B) certified as a Two-Star Provider;(C) certified as a Three-Star Provider; or(D) certified as a Four-Star Provider.(28) Working--Working is defined as:(A) activities for which one receives monetary compensation such as a salary, wages, tips, and commissions;(B) participation in Choices or Supplemental Nutrition Assistance Program Employment and Training (SNAP E&T) activities; or(C) engaging in job search at the time of eligibility determination or redetermination as described in §809.56 of this chapter.</content><note type="source"><p>Source Note: The provisions of this §809.2 adopted to be effective January 29, 2007, 32 TexReg 336; amended to be effective January 8, 2013, 38 TexReg 155; amended to be effective February 16, 2015, 40 TexReg 708; amended to be effective October 1, 2016, 41 TexReg 7529; amended to be effective August 1, 2018, 43 TexReg 4474; amended to be effective January 8, 2019, 44 TexReg 114; amended to be effective January 25, 2021, 46 TexReg 593; amended to be effective October 3, 2022, 47 TexReg 6437; amended to be effective July 29, 2024, 49 TexReg 5540; amended to be effective December 2, 2025, 50 TexReg 7731.</p></note></section><section identifier="/us/state/tx/tac/t40/p20/c809/scA/s809.3"><num value="809.3">§809.3</num><heading>Waiver Request</heading><content>(a) The Commission may waive child care rules upon request from a person directly affected by the rules, if it determines that the waiver benefits a parent, child care contractor, or provider, and the Commission determines that the waiver does not harm child care or violate state or federal statutes or regulations.(b) Prior to submitting a waiver request to the Commission, the child must have been determined by the Board's child care contractor to meet the minimum qualifications set forth in §809.41(a).</content><note type="source"><p>Source Note: The provisions of this §809.3 adopted to be effective January 29, 2007, 32 TexReg 336.</p></note></section></subchapter><subchapter identifier="/us/state/tx/tac/t40/p20/c809/scB"><num value="B">SUBCHAPTER B</num><heading>GENERAL MANAGEMENT</heading><section identifier="/us/state/tx/tac/t40/p20/c809/scB/s809.11"><num value="809.11">§809.11</num><heading>Board Responsibilities</heading><content>(a) A Board shall be responsible for the administration of child care in a manner consistent with Texas Government Code, Chapter 2308, as amended, and related provisions under Chapter 801 of this title (relating to Local Workforce Development Boards).(b) A Board shall ensure that access to child care services shall be available through all Texas Workforce Centers within a workforce area.(c) Child care services are support services for workforce employment, job training, and services under Texas Government Code, Chapter 2308 and Chapter 801 of this title.(d) Upon request, a Board shall provide the Commission with access to child care administration records and submit related information for review and monitoring, pursuant to Commission rules and policies.</content><note type="source"><p>Source Note: The provisions of this §809.11 adopted to be effective January 29, 2007, 32 TexReg 336.</p></note></section><section identifier="/us/state/tx/tac/t40/p20/c809/scB/s809.12"><num value="809.12">§809.12</num><heading>Board Plan for Child Care Services</heading><content>(a) A Board shall, as part of its Texas Workforce Development Board Plan (Board plan), develop, amend, and modify the Board plan to incorporate and coordinate the design and management of the delivery of child care services with the delivery of other workforce employment, job training, and educational services identified in Texas Government Code, §2308.304, et seq. , as well as other workforce training and services included in the One-Stop Service Delivery Network. (b) The goal of the Board plan is to coordinate workforce training and services, to leverage private and public funds at the local level, and to fully integrate child care services for low-income families with the network of workforce training and services under the administration of the Boards. (c) Boards shall design and manage the Board plan to maximize the delivery and availability of safe and stable child care services that assist families seeking to become independent from, or who are at risk of becoming dependent on, public assistance while parents are either working or attending a job training or an educational program.(d) A Board shall include in the Board plan any strategies to use contracted slots agreements, as described in §809.96 of this chapter, including any local priorities and how contracted slots agreements will help increase access to high-quality care for targeted communities and population.</content><note type="source"><p>Source Note: The provisions of this §809.12 adopted to be effective January 29, 2007, 32 TexReg 336; amended to be effective January 25, 2021, 46 TexReg 593.</p></note></section><section identifier="/us/state/tx/tac/t40/p20/c809/scB/s809.13"><num value="809.13">§809.13</num><heading>Board Policies for Child Care Services</heading><content>(a) A Board shall develop, adopt, and modify its policies for the design and management of the delivery of child care services in a public process in accordance with Chapter 802 of this title.(b) A Board shall maintain written copies of the policies that are required by federal and state law, or as required under this chapter, and make such policies available to the Commission and the public upon request.</content><note type="source"><p>Source Note: The provisions of this §809.13 adopted to be effective January 29, 2007, 32 TexReg 336; amended to be effective September 8, 2008, 33 TexReg 7568; amended to be effective January 8, 2013, 38 TexReg 155; amended to be effective October 1, 2016, 41 TexReg 7529; amended to be effective August 1, 2018, 43 TexReg 4474; amended to be effective January 25, 2021, 46 TexReg 593; amended to be effective October 3, 2022, 47 TexReg 6437.</p></note></section><section identifier="/us/state/tx/tac/t40/p20/c809/scB/s809.14"><num value="809.14">§809.14</num><heading>Coordination of Child Care Services</heading><content>(a) A Board shall coordinate with federal, state, and local child care and early development programs and representatives of local governments in developing its Board plan and policies for the design and management of the delivery of child care services, and shall maintain written documentation of its coordination efforts.(b) Pursuant to Texas Education Code, §29.158, and in a manner consistent with federal law and regulations, a Board shall coordinate with school districts, Head Start, and Early Head Start program providers to ensure, to the greatest extent practicable, that full-day, full-year child care is available to meet the needs of low-income parents who are working or attending a job training or educational program.(c) Pursuant to Texas Labor Code, §302.00436, a Board shall inform the local school districts and open-enrollment charter schools in the Board's workforce area regarding opportunities to partner with child care providers in the Board's area to expand access to and provide facilities for prekindergarten (pre-K) programs.</content><note type="source"><p>Source Note: The provisions of this §809.14 adopted to be effective January 29, 2007, 32 TexReg 336; amended to be effective October 3, 2022, 47 TexReg 6437.</p></note></section><section identifier="/us/state/tx/tac/t40/p20/c809/scB/s809.15"><num value="809.15">§809.15</num><heading>Promoting Consumer Education</heading><content>(a) A Board shall promote informed child care choices by providing consumer education information to: (1) parents who are eligible for child care services; (2) parents who are placed on a Board's waiting list; (3) parents who are no longer eligible for child care services; and (4) applicants who are not eligible for child care services. (b) The consumer education information, including consumer education information provided through a Board's website, shall contain, at a minimum: (1) information about the Texas Information and Referral Network/2-1-1 Texas (2-1-1 Texas) information and referral system; (2) the website and telephone number of CCR so parents may obtain health and safety requirements including information on: (A) the prevention and control of infectious diseases (including immunizations); (B) building and physical premises safety; (C) minimum health and safety training appropriate to the provider setting; and (D) the regulatory compliance history of child care providers; (3) a description of the full range of eligible child care providers set forth in §809.91 of this chapter; and (4) a description of programs available in the workforce area relating to school readiness and quality rating systems, including: (A) Texas Rising Star (TRS) Provider criteria, pursuant to Texas Government Code, §2308.315; and(B) integrated school readiness models, pursuant to Texas Education Code, §29.160; (5) a list of child care providers that meet quality indicators, pursuant to Texas Government Code, §2308.3171;(6) information on existing resources and services available in the workforce area for conducting developmental screenings and providing referrals to services when appropriate for children eligible for child care services, including the use of:(A) the Early and Periodic Screening, Diagnosis, and Treatment program under 42 USC 1396 et seq. ; and(B) developmental screening services available under Part B and Part C of the Individuals with Disabilities Education Act (20 USC 1419, 1431 et seq. ; and (7) a link to the Agency's designated child care consumer education website.(c) A Board shall cooperate with HHSC to provide 2-1-1 Texas with information, as determined by HHSC, for inclusion in the statewide information and referral network.</content><note type="source"><p>Source Note: The provisions of this §809.15 adopted to be effective January 29, 2007, 32 TexReg 336; amended to be effective January 8, 2013, 38 TexReg 155; amended to be effective October 1, 2016, 41 TexReg 7529; amended to be effective July 6, 2020, 45 TexReg 4528; amended to be effective October 3, 2022, 47 TexReg 6437.</p></note></section><section identifier="/us/state/tx/tac/t40/p20/c809/scB/s809.16"><num value="809.16">§809.16</num><heading>Quality Improvement Activities</heading><content>(a) Child care funds allocated by the Commission pursuant to its allocation rules (generally, Chapter 800, Subchapter B of this title (relating to Allocations), and specifically §800.58 of this title (relating to Child Care)), including local public transferred funds and local private donated funds, as provided in §809.17 of this subchapter, to the extent they are used for nondirect care quality improvement activities, shall be expended in accordance with the CCDF State Plan.(b) Boards must ensure compliance with 45 CFR Part 98 regarding construction expenditures, as follows:(1) State and local agencies and nonsectarian agencies or organizations.(A) Funds shall not be expended for the purchase or improvement of land, or for the purchase, construction, or permanent improvement of any building or facility.(B) Funds may be expended for minor remodeling, and for upgrading child care facilities, to ensure that providers meet state and local child care standards, including applicable health and safety requirements.(2) Sectarian agencies or organizations.(A) The prohibitions in paragraph (1) of this subsection apply.(B) Funds may be expended for minor remodeling only if necessary to bring the facility into compliance with the health and safety requirements established pursuant to 45 CFR Part 98.(c) Expenditures certified by a public entity, as provided in §809.17 of this subchapter, may include expenditures for any quality improvement activity described in 45 CFR Part 98.</content><note type="source"><p>Source Note: The provisions of this §809.16 adopted to be effective January 29, 2007, 32 TexReg 336; amended to be effective January 8, 2013, 38 TexReg 155; amended to be effective February 16, 2015, 40 TexReg 708; amended to be effective October 1, 2016, 41 TexReg 7529; amended to be effective January 25, 2021, 46 TexReg 593; amended to be effective October 3, 2022, 47 TexReg 6437.</p></note></section><section identifier="/us/state/tx/tac/t40/p20/c809/scB/s809.17"><num value="809.17">§809.17</num><heading>Leveraging Local Resources</heading><content>(a) Leveraging Local Funds.(1) The Commission encourages Boards to secure local public and private funds for the purpose of matching federal funds in order to maximize resources for child care needs in the community.(2) A Board is encouraged to secure additional local funds in excess of the amount required to match federal funds allocated to the Board in order to maximize its potential to receive additional federal funds should they become available.(3) A Board's performance in securing and leveraging local funds for match may make the Board eligible for incentive awards.(b) The Commission accepts the following as local match:(1) Funds from a private entity that:(A) are donated without restrictions that require their use for:(i) a specific individual, organization, facility, or institution; or(ii) an activity not included in the CCDF State Plan or allowed under this chapter;(B) do not revert back to the donor's facility or use;(C) are not used to match other federal funds; and(D) are certified by both the donor and the Commission as meeting the requirements of subparagraphs (A) - (C) of this paragraph.(2) Funds from a public entity that:(A) are transferred without restrictions that would require their use for an activity not included in the CCDF State Plan or allowed under this chapter;(B) are not used to match other federal funds; and(C) are not federal funds, unless authorized by federal law to be used to match other federal funds.(3) Expenditures by a public entity certifying that the expenditures:(A) are for an activity included in the CCDF State Plan or allowed under this chapter;(B) are not used to match other federal funds; and(C) are not federal funds, unless authorized by federal law to be used to match other federal funds.(c) A Board shall ensure that a public entity certifying expenditures for direct child care as described in §809.17(b)(3), determines and verifies that the expenditures are for child care provided to an eligible child. At a minimum, the public entity shall verify that the child:(1) is under 13 years of age, or at the option of the Board, is a child with disabilities under 19 years of age; and(2) resides with:(A) a family whose income does not exceed 85 percent of the state median income for a family of the same size; and(B) a parent who requires child care in order to work or attend a job training or educational program.(d) A Board shall submit private donations, public transfers, and public certifications to the Commission for acceptance, with sufficient information to determine that the funds meet the requirements of subsection (b) of this section.(e) Completing Private Donations, Public Transfers, and Public Certifications.(1) A Board shall ensure that:(A) private donations of cash and public transfers of funds are paid to the Commission; and(B) public certifications are submitted to the Commission.(2) Private donations and public transfers are considered complete when the funds have been received by the Commission.(3) Public certifications are considered complete to the extent that a signed written instrument is delivered to the Commission that reflects that the public entity has expended a specific amount of funds on eligible activities described in subsection (b)(3) of this section.(f) A Board shall monitor the funds secured for match and the expenditure of any resulting funds to ensure that expenditures of federal matching funds available through the Commission do not exceed an amount that corresponds to the private donations, public transfers, and public certifications that are completed by the end of the program year.</content><note type="source"><p>Source Note: The provisions of this §809.17 adopted to be effective January 29, 2007, 32 TexReg 336; amended to be effective October 1, 2016, 41 TexReg 7529.</p></note></section><section identifier="/us/state/tx/tac/t40/p20/c809/scB/s809.18"><num value="809.18">§809.18</num><heading>Maintenance of a Waiting List</heading><content>(a) A Board shall ensure that a list of parents and children waiting for child care services, because of the lack of funding or lack of providers, is maintained and available to the Commission upon request.(b) A Board shall ensure that the child is potentially eligible for child care services prior to placing the child on the waiting list.(c) A Board shall exempt children from the waiting list who are directly referred from a recognized pre-K or HS/EHS partnership, as described in §809.22 of this subchapter, to a child care provider to receive services in the contracted partnership program subject to the availability of funding and the availability of subsidized slots at the partnership site.(d) A Board shall contact the parent every three months and shall remove the child from the waiting list if the parent indicates that child care services are no longer required or does not respond to the Board regarding the continued need for child care services.</content><note type="source"><p>Source Note: The provisions of this §809.18 adopted to be effective January 29, 2007, 32 TexReg 336; amended to be effective January 25, 2021, 46 TexReg 593; amended to be effective October 3, 2022, 47 TexReg 6437; amended to be effective July 29, 2024, 49 TexReg 5540.</p></note></section><section identifier="/us/state/tx/tac/t40/p20/c809/scB/s809.19"><num value="809.19">§809.19</num><heading>Assessing the Parent Share of Cost</heading><content>(a) For child care funds allocated by the Commission pursuant to its allocation rules (generally, Chapter 800, Subchapter B of this title, and specifically §800.58 of this title), including local public transferred funds and local private donated funds, as provided in §809.17 of this subchapter, the following shall apply:(1) The parent share of cost shall:(A) be assessed to all parents, except in instances when an exemption under paragraph (3) of this subsection applies; and(B) be established by the Commission and determined by a sliding fee scale based on the family's size and gross monthly income determined in §809.44 of this chapter and as represented by a percentage of the state median income (SMI) up to 85 percent SMI; and(C) not exceed 7 percent of the family income, regardless of the number of children receiving child care services.(2) A Board shall assess the parent share of cost in accordance with subsection (a)(1)(B) of this section and in a manner that results in the parent share of cost:(A) being assessed only at the following times:(i) initial eligibility determination;(ii) 12-month eligibility redetermination;(iii) upon the addition of a child in care;(iv) upon a parent's report of a change in income, family size, or number of children in care that would result in a reduced parent share of cost assessment; and(v) upon resumption of work, job training, or education activities following temporary changes described in §809.51(a) of this chapter, and upon resumption of work, job training, or education activities during the three-month continuation of care period described in §809.51(c) of this chapter; and(B) not increasing above the amount assessed at initial eligibility determination or at the 12-month eligibility redetermination, except upon the addition of a child in care as described in clause (A)(iii) of this paragraph.(3) Parents who are one or more of the following are exempt from paying the parent share of cost:(A) Parents who are participating in Choices or who are in Choices child care described in §809.45 of this chapter;(B) Parents who are participating in SNAP E&T services or who are in SNAP E&T child care described in §809.47 of this chapter;(C) Parents of a child receiving Child Care for Children Experiencing Homelessness as described in §809.52 of this chapter; or(D) Parents who have children who are receiving protective services child care pursuant to §809.49 and §809.54(c) of this chapter, unless DFPS assesses the parent share of cost.(4) Teen parents who are not covered under exemptions listed in paragraph (3) of this section shall be assessed a parent share of cost. The teen parent's share of cost is based solely on the teen parent's income and size of the teen's family as defined in §809.2 of this chapter.(b) A Board shall establish a policy stating whether or not the Board will pay providers when parents fail to pay the parent share of cost. If the Board does not pay providers under the adopted policy, the Board may establish a policy requiring the parent pay the provider before the family can be redetermined eligible for future child care services.(c) A Board shall establish a policy regarding termination of child care services within a 12-month eligibility period when a parent fails to pay the parent share of cost. The Board's policy must include:(1) a requirement to evaluate and document each family's financial situation for extenuating circumstances that may affect affordability of the assessed parent share of cost pursuant to paragraph (2) of this subsection, and a possible temporary reduction pursuant to subsection (d) of this section of this subsection before the Board or its child care contractor may terminate care under this section;(2) a process to identify and assess the circumstances that may jeopardize a family's self-sufficiency under subsection (d) of this section; and(3) maintenance of a list of all terminations due to failure to pay the parent share of cost.(d) The Board or its child care contractor may review the assessed parent share of cost for a possible temporary reduction if there are extenuating circumstances that jeopardize a family's self-sufficiency. The Board or its child care contractor may temporarily reduce the assessed parent share of cost if warranted by these circumstances. Following the temporary reduction, the parent share of cost amount immediately prior to the reduction shall be reinstated.(e) If the parent is not covered by an exemption as specified in subsection (a)(3) of this section, then the Board or its child care contractor shall not waive the assessed parent share of cost under any circumstances.(f) If the parent share of cost, based on family income and family size, is calculated to be zero, then the Board or its child care contractor shall not charge the parent a minimum share of cost amount.(g) A Board may establish a policy to reduce the parent share of cost amount assessed pursuant to subsection (a)(1) upon the child's referral for part-time or blended care. Such Board policy shall ensure that the parent no longer receives the reduction if the referral is changed to full-time care.</content><note type="source"><p>Source Note: The provisions of this §809.19 adopted to be effective January 29, 2007, 32 TexReg 336; amended to be effective September 8, 2008, 33 TexReg 7568; amended to be effective January 8, 2013, 38 TexReg 155; amended to be effective October 1, 2016, 41 TexReg 7529; amended to be effective August 1, 2018, 43 TexReg 4474; amended to be effective January 25, 2021, 46 TexReg 593; amended to be effective October 3, 2022, 47 TexReg 6437; amended to be effective July 29, 2024, 49 TexReg 5540.</p></note></section><section identifier="/us/state/tx/tac/t40/p20/c809/scB/s809.20"><num value="809.20">§809.20</num><heading>Maximum Provider Reimbursement Rates</heading><content>(a) Based on local factors, including a market rate survey provided by the Commission, a Board shall establish maximum provider payment rates for child care subsidies at or above a level established by the Commission to ensure that the rates provide equal access to child care in the local market and in a manner consistent with state and federal statutes and regulations governing child care. At a minimum, Boards shall establish provider payment rates for full-day and part-day units of service, as described in §809.93(f) of this chapter, for the following:(1) Provider types:(A) Licensed child care centers, including before- or after-school programs and school-age programs, as defined by CCR;(B) Licensed child care homes as defined by CCR;(C) Registered child care homes as defined by CCR; and(D) Relative child care providers as defined in §809.2 of this chapter.(2) Age groups in each provider type:(A) Infants ages 0 through 11 months;(B) Infants ages 12 through 17 months;(C) Toddlers ages 18 through 23 months;(D) Toddlers age 2 years;(E) Preschool age 3 years;(F) Preschool age 4 years;(G) Preschool age 5 years; and(H) School-age 6 years and older.(b) A Board shall establish enhanced payment rates:(1) for all age groups at certified Texas Rising Star provider facilities; and(2) only for infant, toddler, and preschool-age children at child care providers that participate in integrated school readiness models for those age groups pursuant to Texas Education Code §29.160.(c) The minimum enhanced payment rates established under subsection (b) of this section shall be greater than the maximum rate established for providers not meeting the requirements of subsection (b) of this section for the same category of care up to, but not to exceed, the provider's published rate. The maximum rate must be at least:(1) 5 percent greater for a:(A) certified Two-Star Provider; or(B) child care provider meeting the requirements of subsection (b)(2) of this section;(2) 7 percent greater for a certified Three-Star Provider; and(3) 9 percent greater for a certified Four-Star Provider.(d) Boards may establish a higher enhanced payment rate than those specified in subsection (c) of this section for certified Texas Rising Star providers, as long as there is a minimum 2 percentage point difference between each star level.(e) A Board or its child care contractor shall ensure that providers that are paid for additional staff or equipment needed to assist in the care of a child with disabilities are paid a rate up to 190 percent of the provider's payment rate for a child of that same age. The higher rate shall take into consideration the estimated cost of the additional staff or equipment needed by a child with disabilities. The Board shall ensure that a professional, who is familiar with assessing the needs of children with disabilities, certifies the need for the higher payment rate described in this subsection.(f) The Board shall determine whether to pay providers that offer transportation as long as the combined total of the provider's published rate, plus the transportation rate, is subject to the maximum payment rate established in subsection (a) of this section.(g) A Board may establish a higher enhanced payment rate for nontraditional hours, as defined by the Board.</content><note type="source"><p>Source Note: The provisions of this §809.20 adopted to be effective January 29, 2007, 32 TexReg 336; amended to be effective September 8, 2008, 33 TexReg 7568; amended to be effective January 8, 2013, 38 TexReg 155; amended to be effective February 16, 2015, 40 TexReg 708; amended to be effective October 1, 2016, 41 TexReg 7529; amended to be effective July 6, 2020, 45 TexReg 4528; amended to be effective October 3, 2022, 47 TexReg 6437; amended to be effective July 29, 2024, 49 TexReg 5540.</p></note></section><section identifier="/us/state/tx/tac/t40/p20/c809/scB/s809.21"><num value="809.21">§809.21</num><heading>Determining the Amount of the Provider Payment</heading><content>(a) The actual payment that the Board or the Board's child care contractor pays to the provider shall be the Board's maximum daily rate or the provider's published daily rate, whichever is lower, less the following amounts:(1) The parent share of cost assessed and adjusted when the parent share of cost is reduced; and(2) Any child care funds received by the parent from other public or private entities.(b) A Board or its child care contractor shall ensure that the provider's published daily rates are calculated according to Commission guidance and include the provider's enrollment fees, supply fees, and activity fees.</content><note type="source"><p>Source Note: The provisions of this §809.21 adopted to be effective January 29, 2007, 32 TexReg 336; amended to be effective January 8, 2013, 38 TexReg 155; amended to be effective July 29, 2024, 49 TexReg 5540.</p></note></section><section identifier="/us/state/tx/tac/t40/p20/c809/scB/s809.22"><num value="809.22">§809.22</num><heading>Direct Referrals to Recognized Partnerships</heading><content>(a) A recognized partnership is a partnership that:(1) exists between a child care provider and one of the following:(A) a public school prekindergarten provider;(B) a local education agency; or(C) a Head Start/Early Head Start program; and(2) requires both parties to have entered into an agreement, such as a memorandum of understanding, and serves some number of children under age six who are dually enrolled in both programs.(b) A Board shall establish policies and procedures to enroll eligible children who are directly referred by a recognized partnership.(c) A Board's policy shall exempt children directly referred from a recognized partnership from the Board's waiting list, subject to the availability of funding and the availability of subsidized slots at the partnership site.</content><note type="source"><p>Source Note: The provisions of this §809.22 adopted to be effective January 25, 2021, 46 TexReg 593.</p></note></section></subchapter><subchapter identifier="/us/state/tx/tac/t40/p20/c809/scC"><num value="C">SUBCHAPTER C</num><heading>ELIGIBILITY FOR CHILD CARE SERVICES</heading><section identifier="/us/state/tx/tac/t40/p20/c809/scC/s809.41"><num value="809.41">§809.41</num><heading>A Child's General Eligibility for Child Care Services</heading><content>(a) Except for a child receiving or needing protective services as described in §809.49 of this chapter, for a child to be eligible to receive child care services, at the time of eligibility determination or redetermination, a Board shall ensure that the child:(1) meets one of the following age requirements:(A) be under 13 years of age; or(B) be a child with disabilities under 19 years of age;(2) is a United States citizen or legal immigrant as determined under applicable federal laws, regulations, and guidelines; and(3) resides with:(A) a family within the Board's workforce area:(i) whose income does not exceed 85 percent of the state median income (SMI) for a family of the same size; and(ii) whose assets do not exceed $1,000,000 as certified by a family member; or(iii) that meets the definition of experiencing homelessness as defined in §809.2 of this chapter.(B) parents who require child care in order to work, including job search, or attend a job training or educational program; or(C) a person standing in loco parentis for the child while the child's parent is on military deployment and the deployed military parent's income does not exceed the limits set forth in subparagraph (A) of this paragraph.(b) A Board shall ensure that child care services while the parent is enrolled full-time in a postsecondary undergraduate educational program is provided for, but does not exceed, a cumulative total of 60 months.(c) A Board may establish a policy to allow parents attending a program that leads to an undergraduate degree from an institution of higher education to be exempt from residing with the child as defined in §809.2 of this chapter.</content><note type="source"><p>Source Note: The provisions of this §809.41 adopted to be effective January 29, 2007, 32 TexReg 336; amended to be effective June 22, 2009, 34 TexReg 4197; amended to be effective January 8, 2013, 38 TexReg 155; amended to be effective October 1, 2016, 41 TexReg 7529; amended to be effective October 3, 2022, 47 TexReg 6437.</p></note></section><section identifier="/us/state/tx/tac/t40/p20/c809/scC/s809.42"><num value="809.42">§809.42</num><heading>Eligibility Verification, Determination, and Redetermination</heading><content>(a) A Board shall ensure that its child care contractor verifies all eligibility requirements for child care services prior to authorizing child care.(b) A Board shall ensure that eligibility for child care services shall be redetermined no sooner than 12 months following the initial determination or most recent redetermination.</content><note type="source"><p>Source Note: The provisions of this §809.42 adopted to be effective January 29, 2007, 32 TexReg 336; amended to be effective October 1, 2016, 41 TexReg 7529; amended to be effective October 3, 2022, 47 TexReg 6437; amended to be effective July 29, 2024, 49 TexReg 5540.</p></note></section><section identifier="/us/state/tx/tac/t40/p20/c809/scC/s809.43"><num value="809.43">§809.43</num><heading>Priority for Child Care Services</heading><content>(a) A Board shall ensure that child care services are prioritized among the following three priority groups:(1) The first priority group is assured child care services and includes children of parents eligible for the following:(A) Choices child care as referenced in §809.45 of this subchapter;(B) Temporary Assistance for Needy Families (TANF) Applicant child care as referenced in §809.46 of this subchapter;(C) SNAP E&T child care as referenced in §809.47 of this subchapter; and(D) Transitional child care as referenced in §809.48 of this subchapter.(2) The second priority group is served subject to the availability of funds and includes, in the order of priority:(A) children who need to receive protective services child care as referenced in §809.49 of this subchapter;(B) children of a qualified veteran or qualified spouse as defined in §801.23 of this title;(C) children of a foster youth as defined in §801.23 of this title;(D) children experiencing homelessness as defined in §809.2 of this chapter and described in §809.52 of this subchapter;(E) children of parents on military deployment as defined in §809.2 of this chapter whose parents are unable to enroll in military-funded child care assistance programs;(F) children of teen parents as defined in §809.2 of this chapter;(G) children with disabilities as defined in §809.2 of this chapter; and(H) children of a child care worker as defined in §809.2 of this chapter.(3) The third priority group includes any other priority adopted by the Board.(b) A Board shall not establish a priority group under subsection (a)(3) of this section based on the parent's choice of an individual provider or provider type.</content><note type="source"><p>Source Note: The provisions of this §809.43 adopted to be effective January 29, 2007, 32 TexReg 336; amended to be effective September 8, 2008, 33 TexReg 7568; amended to be effective January 8, 2013, 38 TexReg 155; amended to be effective October 1, 2016, 41 TexReg 7529; amended to be effective December 2, 2025, 50 TexReg 7731.</p></note></section><section identifier="/us/state/tx/tac/t40/p20/c809/scC/s809.44"><num value="809.44">§809.44</num><heading>Calculating Family Income</heading><content>(a) For the purposes of determining family income and assessing the parent share of cost, Boards shall ensure that family income is calculated in accordance with Commission guidelines that:(1) take into account irregular fluctuations in earnings; and(2) ensure that temporary increases in income, including temporary increases that result in monthly income exceeding 85 percent of SMI, do not affect eligibility or parent share of cost.(b) In accordance with Commission income calculation guidelines, Boards shall ensure that the following income sources are excluded from the family income:(1) Medicare, Medicaid, SNAP benefits, school meals, and housing assistance;(2) Monthly monetary allowances provided to or for children of Vietnam veterans born with certain birth defects;(3) Needs-based educational scholarships, grants, and loans, including financial assistance under Title IV of the Higher Education Act--Pell Grants, Federal Supplemental Educational Opportunity grants, Federal Work Study Program, PLUS, Stafford loans, and Perkins loans;(4) Individual Development Account (IDA) withdrawals for the purchase of a home, medical expenses, or educational expenses;(5) Tax refunds and tax credits;(6) VISTA and AmeriCorps living allowances and stipends;(7) Noncash or in-kind benefits such as employer-paid fringe benefits, food, or housing received in lieu of wages;(8) Foster care payments and adoption assistance;(9) Special military pay or allowances, including subsistence allowances, housing allowances, family separation allowances, or special allowances for duty subject to hostile fire or imminent danger;(10) Income from a child in the household between 14 and 19 years of age who is attending school;(11) Early withdrawals from qualified retirement accounts specified as hardship withdrawals as classified by the Internal Revenue Service (IRS);(12) Unemployment compensation;(13) Child support payments;(14) Cash assistance payments, including Temporary Assistance for Needy Families (TANF), Supplemental Security Income (SSI), Refugee Cash Assistance, general assistance, emergency assistance, and general relief;(15) Onetime income received in lieu of TANF cash assistance;(16) Income earned by a veteran while on active military duty and certain other veterans' benefits, such as compensation for service-connected death, vocational rehabilitation, and education assistance;(17) Regular payments from Social Security, such as Old-Age, and Survivors Insurance Trust Fund;(18) Lump sum payments received as assets in the sale of a house, in which the assets are to be reinvested in the purchases of a new home (consistent with IRS guidance);(19) Payments received as the result of an automobile accident insurance settlement that are being applied to the repair or replacement of an automobile;(20) One-time cash payments, including insurance payments, gifts, and lump sum inheritances; and(21) Any income sources specifically excluded by federal law or regulation.(c) Income that is not listed in subsection (b) of this section as excluded from income is included as income.</content><note type="source"><p>Source Note: The provisions of this §809.44 adopted to be effective January 29, 2007, 32 TexReg 336; amended to be effective September 8, 2008, 33 TexReg 7568; amended to be effective January 8, 2013, 38 TexReg 155; amended to be effective October 1, 2016, 41 TexReg 7529; amended to be effective October 3, 2022, 47 TexReg 6437.</p></note></section><section identifier="/us/state/tx/tac/t40/p20/c809/scC/s809.45"><num value="809.45">§809.45</num><heading>Choices Child Care</heading><content>(a) A parent is eligible for Choices child care if the parent is participating in the Choices program as stipulated in Chapter 811 of this title.(b) For a parent receiving Choices child care who ceases participation in the Choices program during the 12-month eligibility period, Boards must ensure that Choices child care continues:(1) for the three-month period pursuant to §809.51(b); and(2) for the remainder of the eligibility period, if the parent resumes participation in Choices or begins participation in work or attendance in a job training or education program during the three-month period described in §809.51(c).</content><note type="source"><p>Source Note: The provisions of this §809.45 adopted to be effective January 29, 2007, 32 TexReg 336; amended to be effective October 1, 2016, 41 TexReg 7529.</p></note></section><section identifier="/us/state/tx/tac/t40/p20/c809/scC/s809.46"><num value="809.46">§809.46</num><heading>Temporary Assistance for Needy Families Applicant Child Care</heading><content>(a) A parent is eligible for TANF Applicant child care if the parent:(1) receives a referral from the Health and Human Services Commission (HHSC) to attend a Workforce Orientation for Applicants (WOA);(2) locates employment or has increased earnings prior to TANF certification; and(3) needs child care to accept or retain employment.(b) To receive TANF Applicant child care, the parent shall be working and not have voluntarily terminated paid employment of at least 25 hours a week within 30 days prior to receiving the referral from HHSC to attend a WOA, unless the voluntary termination was for good cause connected with the parent's work.</content><note type="source"><p>Source Note: The provisions of this §809.46 adopted to be effective January 29, 2007, 32 TexReg 336; amended to be effective September 8, 2008, 33 TexReg 7568; amended to be effective January 8, 2013, 38 TexReg 155; amended to be effective October 1, 2016, 41 TexReg 7529.</p></note></section><section identifier="/us/state/tx/tac/t40/p20/c809/scC/s809.47"><num value="809.47">§809.47</num><heading>Supplemental Nutrition Assistance Program Employment and Training Child Care</heading><content>(a) A parent is eligible to receive SNAP E&T child care services if the parent is participating in SNAP E&T services, in accordance with the provisions of 7 CFR Part 273.(b) For a parent receiving SNAP E&T child care services who ceases participation in the E&T program during the 12-month eligibility period, Boards must ensure that SNAP E&T child care continues:(1) for the three-month period pursuant to §809.51(b); and(2) for the remainder of the eligibility period, if the parent resumes participation in the SNAP E&T program or begins participation in work or attendance in a job training or education program during the three-month period described in §809.51(c).</content><note type="source"><p>Source Note: The provisions of this §809.47 adopted to be effective January 29, 2007, 32 TexReg 336; amended to be effective January 8, 2013, 38 TexReg 155; amended to be effective October 1, 2016, 41 TexReg 7529.</p></note></section><section identifier="/us/state/tx/tac/t40/p20/c809/scC/s809.48"><num value="809.48">§809.48</num><heading>Transitional Child Care</heading><content>(a) A parent is eligible for Transitional child care services if the parent:(1) has been denied TANF and was employed at the time of TANF denial; or(2) has been denied TANF within 30 days because of expiration of TANF time limits; and(3) requires child care to work or attend a job training or educational program for a combination of at least an average of 25 hours per week for a single-parent family or a total combined 50 hours per week for a dual-parent family.(b) For former TANF recipients who are employed when TANF is denied, Transitional child care shall be available for:(1) a period of up to 12 months from the effective date of the TANF denial; or(2) a period of up to 18 months from the effective date of the TANF denial in the case of a former TANF recipient who was eligible for child caretaker exemptions pursuant to Texas Human Resources Code, §31.012(c) and voluntarily participates in the Choices program.(c) A Board may allow a reduction to the requirement in subsection (a)(3) of this section if a parent's documented medical disability or need to care for a physically or mentally disabled family member prevents the parent from participating in work, education, or job training activities for the required hours per week.(d) For purposes of meeting the education requirements stipulated in subsection (a)(3) of this section, the following shall apply:(1) each credit hour of undergraduate education counts as three hours of education activity per week; and(2) each credit hour of a condensed undergraduate education course counts as six education activity hours per week.</content><note type="source"><p>Source Note: The provisions of this §809.48 adopted to be effective January 29, 2007, 32 TexReg 336; amended to be effective September 8, 2008, 33 TexReg 7568; amended to be effective January 8, 2013, 38 TexReg 155; amended to be effective October 1, 2016, 41 TexReg 7529; amended to be effective October 3, 2022, 47 TexReg 6437.</p></note></section><section identifier="/us/state/tx/tac/t40/p20/c809/scC/s809.49"><num value="809.49">§809.49</num><heading>Child Care for Children Receiving or Needing Protective Services</heading><content>(a) A Board shall ensure that determinations of eligibility for children needing protective services are performed by DFPS.(1) Child care will continue as long as authorized and funded by DFPS.(2) DFPS may authorize child care for a child under court supervision under the age of 19.(3) Child care discontinued by DFPS prior to the end of the 12-month eligibility period shall be subject to the Continuity of Care provisions in §809.54.(b) A Board shall ensure that requests made by DFPS for specific eligible providers are enforced for children in protective services, including children of foster parents when the foster parent is the owner, director, assistant director or other individual with an ownership interest in the provider.</content><note type="source"><p>Source Note: The provisions of this §809.49 adopted to be effective January 29, 2007, 32 TexReg 336; amended to be effective October 1, 2016, 41 TexReg 7529.</p></note></section><section identifier="/us/state/tx/tac/t40/p20/c809/scC/s809.50"><num value="809.50">§809.50</num><heading>At-Risk Child Care</heading><content>(a) A parent is eligible for child care services under this section if at initial eligibility determination and at eligibility redetermination as described in §809.42 of this chapter:(1) the family income does not exceed the income limit pursuant to §809.41 of this chapter; and(2) child care is required for the parent to work or attend a job training or educational program for a combination of at least an average of 25 hours per week for a single-parent family or a total combined 50 hours per week for a dual-parent family.(b) A Board may allow a reduction to the work, education, or job training activity requirements in subsection (a)(2) of this section if a parent's documented medical disability or need to care for a physically or mentally disabled family member prevents the parent from participating in these activities for the required hours per week.(c) For purposes of meeting the education requirements stipulated in subsection (a)(2) of this section, the following shall apply:(1) each credit hour of undergraduate education counts as three hours of education activity per week;(2) each credit hour of a condensed undergraduate education course counts as six education activity hours per week; and(3) teen parents attending high school or the equivalent shall be considered as meeting the education requirements in subsection (a)(2) of this section.(d) When calculating income eligibility for a child with disabilities, a Board shall deduct the cost of the child's ongoing medical expenses from the family income.(e) A teen parent's family income is based solely on the teen parent's income and size of the teen's family as defined in §809.2 of this chapter.</content><note type="source"><p>Source Note: The provisions of this §809.50 adopted to be effective September 8, 2008, 33 TexReg 7568; amended to be effective January 8, 2013, 38 TexReg 155; amended to be effective October 1, 2016, 41 TexReg 7529; amended to be effective October 3, 2022, 47 TexReg 6437.</p></note></section><section identifier="/us/state/tx/tac/t40/p20/c809/scC/s809.51"><num value="809.51">§809.51</num><heading>Child Care during Interruptions in Work, Education, or Job Training</heading><content>(a) A child meeting all of the applicable eligibility requirements for child care services in this subchapter on the date of the most recent eligibility determination or redetermination, the child shall be considered to be eligible and will receive services during the 12-month eligibility period described in §809.42 of this subchapter, regardless of any:(1) change in family income, if that family income does not exceed 85 percent of SMI for a family of the same size; or(2) temporary change in the ongoing status of the child's parent as working or attending a job training or education program. A temporary change shall include, at a minimum, any:(A) time-limited absence from work for an employed parent for periods of family leave (including parental leave) or sick leave;(B) interruption in work for a seasonal worker who is not working between regular industry work seasons;(C) student holiday or breaks within a semester, between the fall and spring semesters, or between the spring and fall semesters, for a parent participating in training or education;(D) reduction in work, training, or education hours, as long as the parent is still working or attending a training or education program;(E) other cessation of work or attendance in a training or education program that does not exceed three months;(F) change in age, including turning 13 years old or a child with disabilities turning 19 years old during the eligibility period; and(G) change in residency within the state.(b) During the period of time between eligibility redeterminations, a Board shall discontinue child care services due to a parent's loss of work or cessation of attendance at a job training or educational program that does not constitute a temporary change in accordance with subsection (a)(2) of this section. However, Boards must ensure that care continues at the same level for a period of not less than three months after such loss of work or cessation of attendance at a job training or educational program.(c) If a parent resumes work or attendance at a job training or education program at any level and at any time during the period described in subsection (b) of this section, then the Board shall ensure that:(1) care will continue to the end of the 12-month eligibility period at the same or greater level, depending upon any increase in the activity hours of the parent;(2) the parent share of cost will not be increased during the remainder of the 12-month eligibility period, including for parents who are exempt from the parent share of cost pursuant to §809.19 of this chapter; and(3) the Board's child care contractor verifies only:(A) that the family income does not exceed 85 percent of SMI; and(B) the resumption of work or attendance at a job training or education program.(d) The Board may suspend child care services during interruptions in the parent's work, job training, or education status only at the concurrence of the parent.</content><note type="source"><p>Source Note: The provisions of this §809.51 adopted to be effective October 1, 2016, 41 TexReg 7529; amended to be effective October 3, 2022, 47 TexReg 6437; amended to be effective July 29, 2024, 49 TexReg 5540.</p></note></section><section identifier="/us/state/tx/tac/t40/p20/c809/scC/s809.52"><num value="809.52">§809.52</num><heading>Child Care for Children Experiencing Homelessness</heading><content>(a) For a child experiencing homelessness, as defined in §809.2, a Board shall ensure that the child is initially enrolled for a period of three months.(b) If, during the three-month initial enrollment period, the parent of a child experiencing homelessness:(1) is unable to provide documentation verifying that the child is eligible under §809.41(a)(1)-(2) (regarding age and citizenship status), then care shall be discontinued following the three-month enrollment period; or(2) provides documentation verifying eligibility under §809.41(a), then care shall continue through the end of the 12-month initial eligibility period (inclusive of the three-month initial enrollment period).</content><note type="source"><p>Source Note: The provisions of this §809.52 adopted to be effective September 8, 2008, 33 TexReg 7568; amended to be effective October 1, 2016, 41 TexReg 7529.</p></note></section><section identifier="/us/state/tx/tac/t40/p20/c809/scC/s809.53"><num value="809.53">§809.53</num><heading>Child Care for Children Served by Special Projects</heading><content>(a) Special projects developed in federal and state statutes or regulations and funded using non-CCDF sources may add groups of children eligible to receive child care.(b) The eligibility criteria as stated in the statutes, regulations, or funding sources shall control for the special project, unless otherwise indicated by the Commission.(c) The time limit for receiving child care for children served by special projects may be:(1) specifically prescribed by federal or state statutes or regulations according to the particular project;(2) otherwise set by the Commission depending on the purpose and goals of the special project; and(3) limited to the availability of funds.</content><note type="source"><p>Source Note: The provisions of this §809.53 adopted to be effective January 29, 2007, 32 TexReg 336; amended to be effective October 1, 2016, 41 TexReg 7529.</p></note></section><section identifier="/us/state/tx/tac/t40/p20/c809/scC/s809.54"><num value="809.54">§809.54</num><heading>Continuity of Care</heading><content>(a) Enrolled children, including children whose eligibility for Transitional child care has expired, shall receive child care through the end of the applicable eligibility periods described in §809.42.(b) Except as provided by §809.75 relating to child care during appeal, nothing in this chapter shall be interpreted in a manner as to result in a child being removed from care.(c) In closed DFPS CPS cases (DFPS cases) where child care is no longer funded by DFPS, child care shall continue through the end of the applicable eligibility periods described in §809.42 using funds allocated to the Board by the Commission.(d) A Board shall ensure that no enrolled children of military parents in military deployment have a disruption of child care services or eligibility during military deployment, including parents in military deployment at the end of the 12-month eligibility redetermination period.(e) A Board shall ensure that a child who is required by a court-ordered custody or visitation arrangement to leave a provider's care is permitted to continue receiving child care by the same provider, or another provider if agreed to by the parent in advance of the leave, upon return from the court-ordered custody or visitation arrangement.</content><note type="source"><p>Source Note: The provisions of this §809.54 adopted to be effective January 29, 2007, 32 TexReg 336; amended to be effective January 8, 2013, 38 TexReg 155; amended to be effective October 1, 2016, 41 TexReg 7529.</p></note></section><section identifier="/us/state/tx/tac/t40/p20/c809/scC/s809.55"><num value="809.55">§809.55</num><heading>Waiting Period for Reapplication</heading><content>(a) A parent is ineligible to reapply for child care services or to be placed on the waiting list for services for 60 calendar days if the parent's eligibility or the child's enrollment is terminated due to:(1) excessive unexplained absences under §809.78 of this chapter; or(2) nonpayment of parent share of cost pursuant to a Board's established policy under §809.19 of this chapter.(b) To ensure full alignment between Child Care Services rules and the Choices program requirements, the provisions of subsection (a) of this section will not apply to individuals who, during the 60-calendar day waiting period:(1) become Choices participants who require child care to participate in Choices; or(2) are on Choices sanction status and require child care to demonstrate participation in Choices.</content><note type="source"><p>Source Note: The provisions of this §809.55 adopted to be effective August 1, 2018, 43 TexReg 4744; amended to be effective October 3, 2022, 47 TexReg 6437.</p></note></section><section identifier="/us/state/tx/tac/t40/p20/c809/scC/s809.56"><num value="809.56">§809.56</num><heading>Child Care during Initial Job Search</heading><content>(a) A parent, including a parent in a dual-parent family, is eligible for child care services under this section if at initial eligibility determination the family does not meet the minimum participation requirements for At-Risk Child Care as described in §809.50 of this subchapter.(b) A Board shall allow parents to self-attest that the:(1) family meets the requirements of subsection (a) of this section; and(2) family income does not exceed 85 percent of the state median income.(c) The 12-month eligibility period for child care under this section consists of an initial three-month job search period. If total activity participation of at least 25 hours for a single-parent family or a total combined 50 hours per week for dual-parent families, which must include a minimum of 12 hours in employment for a single-parent family and a total combined 25 hours in employment for a dual-parent family, are met within the initial three months, eligibility will continue for the remainder of the 12-month eligibility period, provided that the family income does not exceed 85 percent of the state median income. If the family does not meet minimum activity requirements under this subsection within three months, care must be terminated.(d) For child care during the initial three-month job search period, the follow applies regarding the parent share of cost:(1) A Board shall initially assess the parent share of cost at the highest amount based on the family size and number of children in care.(2) The initially assessed amount will immediately be temporarily reduced to zero. This provision also applies to dual-parent families in which one parent is employed but the family meets the requirements in subsection (a) of this section for child care during initial job search.(3) If the parent begins to meet participation requirements of subsection (c) of this section within or by the end of the three-month job search period, the parent share of cost shall be reinstated at the initially assessed amount or the amount based on the actual family income, whichever is lower.(e) Eligibility for child care under this section is limited to one initial three-month job search period per family within a 12-month period.(f) A Board shall ensure that the parent in child care for job search is registered with the state's labor exchange system and has access to appropriate services available through the one-stop delivery network described in §801.28 of this title.</content><note type="source"><p>Source Note: The provisions of this §809.56 adopted to be effective October 3, 2022, 47 TexReg 6437; amended to be effective July 29, 2024, 49 TexReg 5540.</p></note></section></subchapter><subchapter identifier="/us/state/tx/tac/t40/p20/c809/scD"><num value="D">SUBCHAPTER D</num><heading>PARENT RIGHTS AND RESPONSIBILITIES</heading><section identifier="/us/state/tx/tac/t40/p20/c809/scD/s809.71"><num value="809.71">§809.71</num><heading>Parent Rights</heading><content>A Board shall ensure that the Board's child care contractor informs the parent in writing that the parent has the right to:(1) choose the type of child care provider that best suits their needs and to be informed of all child care options available to them as included in the consumer education information described in §809.15 of this chapter;(2) visit available child care providers before making their choice of a child care option;(3) receive assistance in choosing initial or additional child care referrals including information about the Board's policies regarding transferring children from one provider to another, which shall include a waiting period of two weeks before the effective date of a transfer, except in cases in which the provider is subject to a CCR action, as described in §809.94 of this chapter; when the transfer is authorized by CPS for a child in protective services; or on a case-by-case basis determined by the Board;(4) be informed of the Commission rules and Board policies related to providers charging parents amounts above the assessed parent share of cost as described in §809.92 of this chapter;(5) be represented when applying for child care services;(6) be notified of their eligibility to receive child care services within 20 calendar days from the day the Board's child care contractor receives all necessary documentation required to initially determine eligibility for child care;(7) receive child care services regardless of race, color, national origin, age, sex, disability, political beliefs, or religion;(8) have the Board and the Board's child care contractor treat information used to determine eligibility for child care services as confidential;(9) receive written notification at least 15 calendar days before termination of child care services;(10) reject an offer of child care services or voluntarily withdraw their child from child care, unless the child is in protective services;(11) be informed of the possible consequences of rejecting or ending the child care that is offered;(12) be informed of the eligibility documentation and reporting requirements described in §809.72 and §809.73 of this chapter;(13) be informed of the parent appeal rights described in §809.74 of this chapter;(14) be informed of required background and criminal history checks for relative child care providers through the listing process with CCR as described in §809.91 of this chapter before the parent or guardian selects the relative child care provider;(15) receive written notification pursuant to §809.78 of this chapter of the possible termination of child care services for excessive absences, as described in §809.78 of this chapter; and(16) receive written notification of possible termination of child care services for failure to pay the parent share of cost, pursuant to §809.19 of this chapter.</content><note type="source"><p>Source Note: The provisions of this §809.71 adopted to be effective January 29, 2007, 32 TexReg 336; amended to be effective November 14, 2011, 36 TexReg 7675; amended to be effective January 8, 2013, 38 TexReg 155; amended to be effective October 1, 2016, 41 TexReg 7529; amended to be effective August 1, 2018, 43 TexReg 4744; amended to be effective July 6, 2020, 45 TexReg 4528; amended to be effective October 3, 2022, 47 TexReg 6437.</p></note></section><section identifier="/us/state/tx/tac/t40/p20/c809/scD/s809.72"><num value="809.72">§809.72</num><heading>Parent Eligibility Documentation Requirements</heading><content>(a) Parents shall provide the Board's child care contractor with all information necessary to determine initial eligibility according to the Board's administrative policies and procedures before a child can be initially determined or redetermined eligible for child care services and care authorized, unless the child is experiencing homelessness pursuant to §809.52 of this chapter or receiving child care during initial job search pursuant to §809.56 of this chapter.(b) A parent's failure to submit eligibility documentation shall result in initial denial of child care services or termination of services at the 12-month eligibility redetermination period.</content><note type="source"><p>Source Note: The provisions of this §809.72 adopted to be effective January 29, 2007, 32 TexReg 336; amended to be effective October 1, 2016, 41 TexReg 7529; amended to be effective October 3, 2022, 47 TexReg 6437.</p></note></section><section identifier="/us/state/tx/tac/t40/p20/c809/scD/s809.73"><num value="809.73">§809.73</num><heading>Parent Reporting Requirements</heading><content>(a) Boards shall ensure that during the 12-month eligibility period described in §809.41 of this chapter parents are only required to report items that impact a family's eligibility or that enable the Board or Board contractor to contact the family or pay the provider.(b) Pursuant to subsection (a) of this section, parents shall report to the child care contractor, within 14 calendar days of the occurrence, the following:(1) Changes in family income or family size that would cause the family to exceed 85 percent of SMI for a family of the same size;(2) Changes in work or attendance at a job training or educational program not considered to be temporary changes, as described in §809.51 of this chapter; and(3) Any change in family residence, primary phone number, or e-mail (if available).(c) Failure to report changes described in subsection (a) of this section may result in fact-finding for suspected fraud as described in Subchapter F of this chapter.(d) A Board shall allow parents to report, and the child care contractor shall take appropriate action, regarding changes in:(1) income and family size, which may result in a reduction in the parent share of cost pursuant to §809.19 of this chapter; and(2) work, job training, or education program participation that may result in an increase in the level of child care services.</content><note type="source"><p>Source Note: The provisions of this §809.73 adopted to be effective January 29, 2007, 32 TexReg 336; amended to be effective October 1, 2016, 41 TexReg 7529; amended to be effective October 3, 2022, 47 TexReg 6437; amended to be effective July 29, 2024, 49 TexReg 5540.</p></note></section><section identifier="/us/state/tx/tac/t40/p20/c809/scD/s809.74"><num value="809.74">§809.74</num><heading>Parent Appeal Rights</heading><content>(a) Unless otherwise stated in this section, a parent may request a hearing pursuant to Chapter 823 of this title:(1) if the parent's eligibility or child's enrollment is denied, delayed, reduced, suspended, or terminated by the Board's child care contractor, Choices caseworker, or SNAP E&T caseworker; or(2) regarding the amount of recoupment determined pursuant to Subchapter F of this chapter.(b) A parent may have an individual represent him or her during this process.(c) A parent of a child in protective services may not appeal pursuant to Chapter 823 of this title, but shall follow the procedures established by DFPS.</content><note type="source"><p>Source Note: The provisions of this §809.74 adopted to be effective January 29, 2007, 32 TexReg 336; amended to be effective November 26, 2007, 32 TexReg 8543; amended to be effective September 8, 2008, 33 TexReg 7568; amended to be effective January 8, 2013, 38 TexReg 155; amended to be effective October 1, 2016, 41 TexReg 7529.</p></note></section><section identifier="/us/state/tx/tac/t40/p20/c809/scD/s809.75"><num value="809.75">§809.75</num><heading>Child Care during Appeal</heading><content>(a) For a child currently enrolled in child care, a Board shall ensure that child care services continue during the appeal process until a decision is reached, if the parent requests a hearing.(b) A Board shall ensure that child care does not continue during the appeal process if the child's enrollment is terminated due to excessive unexplained absences, pursuant to §809.78(a) of this chapter, or nonpayment of parent share of cost, pursuant to §809.19 of this chapter.(c) The cost of providing services during the appeal process is subject to recovery from the parent by the Board if the appeal decision is rendered against the parent.</content><note type="source"><p>Source Note: The provisions of this §809.75 adopted to be effective January 29, 2007, 32 TexReg 336; amended to be effective September 8, 2008, 33 TexReg 7568; amended to be effective January 8, 2013, 38 TexReg 155; amended to be effective October 1, 2016, 41 TexReg 7529; amended to be effective August 1, 2018, 43 TexReg 4744; amended to be effective October 3, 2022, 47 TexReg 6437.</p></note></section><section identifier="/us/state/tx/tac/t40/p20/c809/scD/s809.78"><num value="809.78">§809.78</num><heading>Attendance Standards and Notice and Reporting Requirements</heading><content>(a) A Board shall ensure that parents are notified of the following:(1) Parents shall ensure that the eligible child attends on a regular basis consistent with the child's authorization for enrollment and attendance standards described in paragraph (2) of this subsection. Failure to meet attendance standards described in paragraph (2) of this subsection may result in termination for the child care due to excessive unexplained absences pursuant to subsection (d) of this section.(2) Meeting attendance standards for child care services consists of no more than 40 total unexplained absences in a 12-month eligibility period.(3) Unexplained absences may include:(A) Any absence that is not due to a child's documented chronic illness or disability, or to a court-ordered custody or visitation agreement; or(B) Any missed attendance recording that cannot be explained, except if the attendance reporting system is not available through no fault of the parent or provider.(4) Notwithstanding paragraph (2) of this subsection, child care providers may end a child's enrollment with the provider if the child does not meet the provider's established policy regarding attendance.(5) Parents shall report attendance and absences and adhere to Agency procedures for reporting attendance and absences, including the use of the Agency's attendance reporting system.(b) Boards shall ensure that parents sign a written acknowledgment indicating their understanding of the attendance standards and reporting requirements at each of the following stages:(1) initial eligibility determination; and(2) each eligibility redetermination, as required in §809.42 of this chapter.(c) Boards shall ensure that absences due to a child's documented chronic illness or disability or court-ordered visitation are not counted in the number of unexplained absences in subsection (a)(2) and (3) of this section.(d) Boards shall ensure that before terminating care pursuant to subsection (a)(1) of this section, the child care contractor:(1) provides written notice to the parent and the child care provider at reasonable times through established communication channels of the child's absences and the potential termination of services, at a minimum as soon as practicable after child reaches 15, and 30 general absences cumulatively within a 12-month eligibility period; and(2) documents that multiple attempts were made, as described in paragraph (1) of this subsection, to determine why the child is absent and to explain the importance of regular attendance.(e) Where a child's enrollment has been ended by a provider in subsection (a)(4) of this section, Boards shall work with the parent to place the otherwise eligible child with another eligible provider.</content><note type="source"><p>Source Note: The provisions of this §809.78 adopted to be effective January 8, 2013, 38 TexReg 155; amended to be effective October 1, 2016, 41 TexReg 7529; amended to be effective August 1, 2018, 43 TexReg 4744; amended to be effective October 3, 2022, 47 TexReg 6437.</p></note></section></subchapter><subchapter identifier="/us/state/tx/tac/t40/p20/c809/scE"><num value="E">SUBCHAPTER E</num><heading>REQUIREMENTS TO PROVIDE CHILD CARE</heading><section identifier="/us/state/tx/tac/t40/p20/c809/scE/s809.91"><num value="809.91">§809.91</num><heading>Minimum Requirements for Providers</heading><content>(a) A Board shall ensure that child care subsidies are paid only to:(1) regulated child care providers as described in §809.2 of this chapter meeting the Texas Rising Star requirements as a certified provider, or designated as an Entry Level provider for the prescribed time periods as described in §809.131 of this chapter;(2) relative child care providers, as described in §809.2 of this chapter, subject to the requirements in subsection (e) of this section; or(3) at the Board's option, child care providers licensed in a neighboring state, subject to the following requirements:(A) Boards shall ensure that the Board's child care contractor reviews the licensing status of the out-of-state provider every month, at a minimum, to confirm the provider is meeting the minimum licensing standards of the state.(B) Boards shall ensure that the out-of-state provider meets the requirements of the neighboring state to serve CCDF-subsidized children.(C) The provider shall agree to comply with the requirements of this chapter and all Board policies and Board child care contractor procedures.(b) A Board shall not prohibit a relative child care provider that is listed with CCR and meets the minimum requirements of this section from being an eligible relative child care provider.(c) Except as provided by the criteria for Texas Rising Star Provider certification or designation, a Board or the Board's child care contractor shall not place requirements on regulated providers that:(1) exceed Entry Level designation requirements or the state licensing requirements stipulated in Texas Human Resources Code, Chapter 42; or(2) have the effect of monitoring the provider for compliance with state licensing requirements stipulated in Texas Human Resources Code, Chapter 42.(d) When a Board or the Board's child care contractor, in the course of fulfilling its responsibilities, gains knowledge of any possible violation regarding regulatory standards, the Board or its child care contractor shall report the information to the appropriate regulatory agency.(e) For relative child care providers to be eligible for reimbursement for Commission-funded child care services, the following applies:(1) Relative child care providers shall list with CCR; however, pursuant to 45 CFR §98.41(e), relative child care providers listed with CCR shall be exempt from the health and safety requirements of 45 CFR §98.41(a).(2) A Board shall allow relative child care providers to care for a child in the child's home (in-home child care) only for the following:(A) A child with disabilities as defined in §809.2 of this chapter, and his or her siblings;(B) A child under 18 months of age and his or her siblings;(C) A child of a teen parent; and(D) When the parent's work schedule requires evening, overnight, or weekend child care in which taking the child outside of the child's home would be disruptive to the child.(3) A Board may allow relative in-home child care for circumstances in which the Board's child care contractor determines and documents that other child care provider arrangements are not available in the community.(f) Boards shall ensure that subsidies are not paid for a child at the following child care providers:(1) Except for foster parents authorized by DFPS pursuant to §809.49 of this chapter, licensed child care centers, including before- or after-school programs and school-age programs, in which the parent or his or her spouse, including the child's parent or stepparent, is the director or assistant director, or has an ownership interest; or(2) Licensed, registered, or listed child care homes where the parent also works during the hours his or her child is in care.</content><note type="source"><p>Source Note: The provisions of this §809.91 adopted to be effective January 29, 2007, 32 TexReg 336; amended to be effective June 24, 2007, 32 TexReg 3698; amended to be effective October 18, 2010, 35 TexReg 9359; amended to be effective November 14, 2011, 36 TexReg 7675; amended to be effective January 8, 2013, 39 TexReg 155; amended to be effective October 1, 2016, 41 TexReg 7529; amended to be effective July 6, 2020, 45 TexReg 4528; amended to be effective January 25, 2021, 46 TexReg 593; amended to be effective October 3, 2022, 47 TexReg 6437.</p></note></section><section identifier="/us/state/tx/tac/t40/p20/c809/scE/s809.92"><num value="809.92">§809.92</num><heading>Provider Responsibilities and Reporting Requirements</heading><content>(a) A Board shall ensure that providers are given written notice of and agree to their responsibilities, reporting requirements, and requirements for payment under this subchapter prior to enrolling a child.(b) Providers shall:(1) be responsible for collecting the parent share of cost as assessed under §809.19 of this chapter before child care services are delivered;(2) be responsible for collecting other child care funds received by the parent as described in §809.21 of this chapter;(3) report to the Board or the Board's child care contractor instances in which the parent fails to pay the parent share of cost; and(4) follow attendance reporting and tracking procedures required by the Commission under §809.95 of this chapter, the Board, or, if applicable, the Board's child care contractor.(c) Providers shall not charge more than the Board's payment rate as determined under §809.21 of this chapter to parents:(1) who are exempt from the parent share of cost assessment under §809.19 of this chapter;(2) whose parent share of cost is calculated to be zero pursuant to §809.19 of this chapter; or(3) parents in Child Care during Initial Job Search under §809.56 of this chapter during the initial three-month period.(d) A Board may develop a policy that allows providers to charge parents more than the assessed parent share of cost in instances where the provider's published rate exceeds the Board's payment rate (including the assessed parent share of cost) to all parents not included in subsection (c) of this section.(e) For Boards that allow providers to charge additional amounts pursuant to subsection (d) of this section, the Board must ensure the provider reports to the Board each month:(1) the specific families that were charged an additional amount above the assessed amount;(2) the frequency with which each family was charged; and(3) the amount of each additional charge.(f) Boards that develop a policy under subsection (d) of this section must:(1) provide the rationale for the Board's policy to allow providers to charge families additional amounts above the required copayment, including a demonstration of how the policy promotes affordability and access for families; and(2) describe the Board's analysis of the interaction between the additional amounts charged to families with the required parent share of cost and the ability of current payment rates to provide access to care without additional fees.(g) Providers shall not deny a child care referral based on the parent's income status, receipt of public assistance, or the child's protective service status.(h) Providers shall not charge fees to a parent receiving child care subsidies that are not charged to a parent who is not receiving subsidies.</content><note type="source"><p>Source Note: The provisions of this §809.92 adopted to be effective January 29, 2007, 32 TexReg 336; amended to be effective January 8, 2013, 38 TexReg 155; amended to be effective October 1, 2016, 41 TexReg 7529; amended to be effective October 3, 2022, 47 TexReg 6437; amended to be effective July 29, 2024, 49 TexReg 5540.</p></note></section><section identifier="/us/state/tx/tac/t40/p20/c809/scE/s809.93"><num value="809.93">§809.93</num><heading>Provider Payment</heading><content>(a) A Board shall ensure that payment for child care is made only to the provider.(b) A Board or its child care contractor shall pay a regulated provider based on a child's monthly enrollment authorization, excluding periods of suspension at the concurrence of the parent, as described in §809.51(d) of this chapter.(c) A Board shall ensure that a relative child care provider is not reimbursed for days on which the child is absent.(d) A relative child care provider shall not be reimbursed for more children than permitted by the CCR minimum regulatory standards for Registered Child Care Homes. A Board may permit more children to be cared for by a relative child care provider on a case-by-case basis as determined by the Board.(e) A Board shall not pay providers that are debarred from other state or federal programs unless and until the debarment is removed.(f) Unless otherwise determined by the Board and approved by the Commission for automated reporting purposes, the monthly enrollment authorization described in subsection (b) of this section is based on the unit of service authorized, as follows:(1) A full-day unit of service is 6 to 12 hours of care provided within a 24-hour period;(2) A part-day unit of service is fewer than 6 hours of care provided within a 24-hour period; and(3) A blended-day unit of service is for a child enrolled in a school program, pre-K, HS, or EHS in which child care is part-day with care provided occasionally on a full-day basis.(g) A Board or its child care contractor shall ensure that providers are not paid for holding spaces open without a valid contracted slots agreement, as described in §809.96 of this chapter.(h) The Board or its child care contractor shall not pay a provider retroactively for new Board maximum payment rates or new provider published rates.(i) A Board or its child care contractor shall ensure that the parent's travel time to and from the child care facility and the parent's work, school, or job training site is included in determining the enrollment authorized under subsection (f) of this section.(j) A Board shall pay regulated child care providers prospectively every two weeks based on the enrollment authorization described in subsection (b) of this section.</content><note type="source"><p>Source Note: The provisions of this §809.93 adopted to be effective January 29, 2007, 32 TexReg 336; amended to be effective January 8, 2013, 38 TexReg 155; amended to be effective October 1, 2016, 41 TexReg 7529; amended to be effective August 1, 2018, 43 TexReg 4774; amended to be effective July 6, 2020, 45 TexReg 4528; amended to be effective January 25, 2021, 46 TexReg 593; amended to be effective October 3, 2022, 47 TexReg 6437; amended to be effective July 29, 2024, 49 TexReg 5540.</p></note></section><section identifier="/us/state/tx/tac/t40/p20/c809/scE/s809.94"><num value="809.94">§809.94</num><heading>Providers Placed on Corrective or Adverse Action by Child Care Regulation</heading><content>(a) For a provider placed on probation corrective action (probationary status) by CCR, Boards shall ensure that:(1) parents with children in Commission-funded child care are notified in writing of the provider's probationary status no later than five business days after receiving notification from the Agency of CCR's decision to place the provider on probationary status; and(2) no new referrals are made to the provider while on probationary status.(b) A parent receiving notification of a provider's probationary status with CCR pursuant to subsection (a) of this section may transfer the child to another eligible provider without being subject to the Board transfer policies described in §809.71 of this chapter if the parent requests the transfer within 14 calendar days of receiving such notification.(c) For a provider placed on probationary status by CCR, Boards shall ensure that the provider is not paid at the Boards' enhanced payment rates described in §809.20 while on probationary status.(d) For a provider against whom CCR is taking adverse action, Boards shall ensure that:(1) parents with children enrolled in Commission-funded child care are notified no later than two business days after receiving notification from the Agency that CCR intends to take adverse action against the provider;(2) children enrolled in Commission-funded child care with the provider are transferred to another eligible provider no later than five business days after receiving notification from the Agency that CCR intends to take adverse action against the provider; and(3) no new referrals for Commission-funded child care are made to the provider while CCR is taking adverse action.</content><note type="source"><p>Source Note: The provisions of this §809.94 adopted to be effective June 22, 2009, 34 TexReg 4201; amended to be effective October 1, 2016, 41 TexReg 7529; amended to be effective July 6, 2020, 45 TexReg 4528; amended to be effective October 3, 2022, 47 TexReg 6437; amended to be effective July 29, 2024, 49 TexReg 5540.</p></note></section><section identifier="/us/state/tx/tac/t40/p20/c809/scE/s809.95"><num value="809.95">§809.95</num><heading>Provider Automated Attendance Agreement</heading><content>Boards shall notify providers of the following:(1) The owner, director, assistant director, or other employees of child care providers shall not:(A) possess, have on the premises, or otherwise have access to a parent's information to access the Agency's attendance system; or(B) perform the attendance or absence reporting function on behalf of the parent;(2) Providers shall report misuse of the Agency's automated attendance system to the Board or the Board's child care contractor;(3) Providers shall report to the child care contractor authorized days that do not match the referral in the Agency's automated attendance system within five days of receiving the authorization. Failure to report the discrepancy may result in withholding payment to the provider; and(4) Misuse of attendance reporting and violation of the requirements in this section are grounds for a potential fraud determination pursuant to Subchapter F of this chapter.</content><note type="source"><p>Source Note: The provisions of this §809.95 adopted to be effective January 8, 2013, 38 TexReg 155; amended to be effective October 1, 2016, 41 TexReg 7529; amended to be effective October 3, 2022, 47 TexReg 6437.</p></note></section><section identifier="/us/state/tx/tac/t40/p20/c809/scE/s809.96"><num value="809.96">§809.96</num><heading>Contracted Slots Agreements</heading><content>(a) In this section, the term "contracted slots agreement" is defined as a Board entering into a contract with a child care provider to reserve a specific number of places, or slots, for children participating in the child care subsidy program. This contract shall:(1) define the number of slots to be reserved by age group (infant, toddler, preschool, or school-age); and(2) meet the eligibility requirements as described in subsection (e) of this section.(b) Boards may enter into a contracted slots agreement with providers that agree to provide subsidized child care services to eligible children residing in the Board's workforce area.(c) A Board that enters into a contracted slots agreement shall include this strategy in the Board Plan, as described in §809.12 of this chapter.(d) Each contract between a Board and a provider must identify the number of places (slots) to be reserved for children participating in the child care subsidy program.(e) To be eligible for a contract, a child care provider must be a Texas Rising Star Three-Star or Four-Star provider and meet one of the following priorities:(1) Be located in:(A) a child care desert; or(B) an underserved area that has been identified by a Board as having an inadequate supply of child care in accordance with the parameters described in the CCDF State Plan.(2) Have a recognized partnership with local school districts to provide pre-K services;(3) Have a recognized partnership with EHS or HS;(4) Increase the number of places reserved for infants and toddlers by high-quality child care providers;(5) Increase the number of places reserved for children with disabilities; or(6) Satisfy a priority identified in the Board's plan, as described in §809.12 of this chapter.(f) A Board that enters into a contracted slots agreement may continue payment for reserved slots during times of transition between the time that one child leaves the program and another child is placed in the slot. The period of continued payment shall adhere to the Board's policy for contracted slots agreements and may not exceed one month following the month of the vacancy.(g) Except for children directly referred from recognized partnerships, as described in §809.22 of this chapter, to fill open reserved slots, Boards shall contact families in order of the Board's waiting list:(1) that requested care in the ZIP code where the provider with the open reserved slot is located; and(2) whose child is in the age group for which a slot is available.(h) In accordance with Commission guidelines, Boards that enter into contracted slots agreements shall submit a report to the Commission within six months of entering into a contract, determining the contract's effect on the:(1) financial stability of providers participating in the contract;(2) availability of high-quality child care options available to participants in the Commission's subsidy program;(3) number of high-quality providers in any part of the workforce area with a high concentration of families that need child care;(4) percentage of children participating in the Commission's subsidized child care program at each Texas Rising Star provider in the workforce area; and(5) additional information as requested by the Commission.(i) A Board shall resubmit the report every 12 months from the due date of the Board's initial report to the Commission.</content><note type="source"><p>Source Note: The provisions of this §809.96 adopted to be effective January 25, 2021, 46 TexReg 593; amended to be effective October 3, 2022, 47 TexReg 6437; amended to be effective July 29, 2024, 49 TexReg 5540.</p></note></section></subchapter><subchapter identifier="/us/state/tx/tac/t40/p20/c809/scF"><num value="F">SUBCHAPTER F</num><heading>FRAUD FACT-FINDING AND IMPROPER PAYMENTS</heading><section identifier="/us/state/tx/tac/t40/p20/c809/scF/s809.111"><num value="809.111">§809.111</num><heading>General Fraud Fact-Finding Procedures</heading><content>(a) This subchapter establishes authority for a Board to develop procedures for the prevention of fraud by a parent, provider, or any other person in a position to commit fraud consistent with fraud prevention provisions in the Agency-Board Agreement.(b) In this subchapter, a person commits fraud if, to obtain or increase a benefit or other payment, either for the person or another person, the person:(1) makes a false statement or representation, knowing it to be false; or(2) knowingly fails to disclose a material fact.(c) A Board shall ensure that procedures for researching and fact-finding for possible fraud are developed and implemented to deter and detect suspected fraud for child care services in the workforce area.(d) These procedures shall include provisions that suspected fraud is reported to the Commission in accordance with Commission policies and procedures.(e) Upon review of suspected fraud reports, the Commission may either accept the case for investigation and action at the state level, or return the case to the Board or its child care contractor for action including, but not limited to, the following:(1) further fact-finding; or(2) other corrective action as provided in this chapter or as may be appropriate.(f) The Board shall ensure that a final fact-finding report is submitted to the Commission after a case is returned to the Board or its child care contractor and all feasible avenues of fact-finding and corrective actions have been exhausted.</content><note type="source"><p>Source Note: The provisions of this §809.111 adopted to be effective January 29, 2007, 32 TexReg 336; amended to be effective October 1, 2016, 41 TexReg 7529.</p></note></section><section identifier="/us/state/tx/tac/t40/p20/c809/scF/s809.112"><num value="809.112">§809.112</num><heading>Suspected Fraud</heading><content>(a) A parent, provider, or any other person in a position to commit fraud may be suspected of fraud if the person presents or causes to be presented to the Board or its child care contractor one or more of the following items:(1) A request for reimbursement in excess of the amount charged by the provider for the child care; or(2) A claim for child care services if evidence indicates that the person may have:(A) known, or should have known, that child care services were not provided as claimed;(B) known, or should have known, that information provided is false or fraudulent;(C) received child care services during a period in which the parent or child was not eligible for services;(D) known, or should have known, that child care subsidies were provided to a person not eligible to be a provider; or(E) otherwise indicated that the person knew or should have known that the actions were in violation of this chapter or state or federal statute or regulations relating to child care services.(b) The following parental actions may be grounds for suspected fraud and cause for Boards to conduct fraud fact-finding or the Commission to initiate a fraud investigation:(1) Not reporting or falsely reporting at initial eligibility or at eligibility redetermination:(A) household composition, or income sources or amounts that would have resulted in ineligibility or a higher parent share of cost; or(B) work, training, or education hours that would have resulted in ineligibility; or(2) Not reporting during the 12-month eligibility period inclusive of the three-month initial job search period, if applicable:(A) changes in income or household composition that would cause the family income to exceed 85 percent of SMI (taking into consideration fluctuations of income); or(B) a permanent loss of job or cessation of training or education that exceeds three months; or(C) improper or inaccurate reporting of attendance.</content><note type="source"><p>Source Note: The provisions of this §809.112 adopted to be effective January 29, 2007, 32 TexReg 336; amended to be effective October 1, 2016, 41 TexReg 7529; amended to be effective October 3, 2022, 47 TexReg 6437.</p></note></section><section identifier="/us/state/tx/tac/t40/p20/c809/scF/s809.113"><num value="809.113">§809.113</num><heading>Action to Prevent or Correct Suspected Fraud</heading><content>(a) The Commission or Board may take the following actions pursuant to Commission policy if the Commission or Board finds that a provider has committed fraud:(1) Temporary withholding of payments to the provider for child care services delivered;(2) Nonpayment of child care services delivered;(3) Recoupment of funds from the provider;(4) Stop authorizing care at the provider's facility or location;(5) Prohibiting future eligibility to provide Commission-funded child care services; or(6) Any other action consistent with the intent of the governing statutes or regulations to investigate, prevent, or stop suspected fraud.(b) The Commission or Board may take the following actions pursuant to Commission policy if the Commission or Board finds that a parent has committed fraud:(1) recouping funds from the parent;(2) prohibiting future child care eligibility, provided that the prohibition does not result in a Choices or SNAP E&T participant becoming ineligible for child care;(3) limiting the enrollment of the parent's child to a regulated child care provider;(4) terminating care during the 12-month eligibility period if eligibility was determined using fraudulent information provided by the parent; or(5) any other action consistent with the intent of the governing statutes or regulations to investigate, prevent, or stop suspected fraud.</content><note type="source"><p>Source Note: The provisions of this §809.113 adopted to be effective January 29, 2007, 32 TexReg 336; amended to be effective January 8, 2013, 38 TexReg 155; amended to be effective October 1, 2016, 41 TexReg 7529.</p></note></section><section identifier="/us/state/tx/tac/t40/p20/c809/scF/s809.114"><num value="809.114">§809.114</num><heading>Failure to Comply with Commission Rules and Board Policies</heading><content>(a) The Board shall ensure that parents and providers comply with Commission rules.(b) The Commission, Board or Board's child care contractor may consider failure by a provider or parent to comply with this chapter as an act that may warrant corrective and adverse action as detailed in §809.115 (relating to Corrective Adverse Actions).(c) Failure by a provider or parent to comply with this chapter shall also be considered a breach of contract, which may also result in corrective action as detailed in this subchapter.</content><note type="source"><p>Source Note: The provisions of this §809.114 adopted to be effective January 29, 2007, 32 TexReg 336.</p></note></section><section identifier="/us/state/tx/tac/t40/p20/c809/scF/s809.115"><num value="809.115">§809.115</num><heading>Corrective Adverse Actions</heading><content>(a) When determining appropriate corrective actions, the Board or Board's child care contractor shall consider:(1) the scope of the violation;(2) the severity of the violation; and(3) the compliance history of the person or entity.(b) Corrective actions for providers may include, but are not limited to, the following:(1) Closing intake;(2) Moving children to another provider selected by the parent;(3) Withholding provider payments or reimbursement of costs incurred; and(4) Recoupment of funds.(c) When a provider violates a provision of Subchapter E of this chapter, a written Service Improvement Agreement may be negotiated between the provider and the Board or the Board's child care contractor. At the least, the Service Improvement Agreement shall include the following:(1) The basis for the Service Improvement Agreement;(2) The steps required to reach compliance including, if applicable, technical assistance;(3) The time limits for implementing the improvements; and(4) The consequences of noncompliance with the Service Improvement Agreement.(d) The Board shall develop policies and procedures to ensure that the Board or the Board's child care contractor take corrective action consistent with subsections (a) - (c) of this section against a provider when a provider performs the attendance reporting function on behalf of a parent.(e) The Board shall develop policies and procedures to require the Board's child care contractor to take corrective action consistent with subsections (a) - (c) of this section against a parent when a parent violates the Commission rules and procedures related to attendance reporting.</content><note type="source"><p>Source Note: The provisions of this §809.115 adopted to be effective January 29, 2007, 32 TexReg 336; amended to be effective January 8, 2013, 38 TexReg 155; amended to be effective October 1, 2016, 41 TexReg 7529; amended to be effective October 3, 2022, 47 TexReg 6437.</p></note></section><section identifier="/us/state/tx/tac/t40/p20/c809/scF/s809.117"><num value="809.117">§809.117</num><heading>Recovery of Improper Payments to a Provider or Parent</heading><content>(a) A Board shall attempt recovery of all improper payments as defined in §809.2.(b) Recovery of improper payments shall be managed in accordance with Commission policies and procedures.(c) The provider shall repay improper payments for child care services received in the following circumstances:(1) Instances involving fraud;(2) Instances in which the provider did not meet the provider eligibility requirements in this chapter;(3) Instances in which the provider was paid for the child care services from another source;(4) Instances in which the provider did not deliver the child care services;(5) Instances in which referred children have been moved from one facility to another without authorization from the child care contractor; and(6) Other instances when repayment is deemed an appropriate action.(d) A parent shall repay improper payments for child care only in the following circumstances:(1) Instances involving fraud as defined in this subchapter;(2) Instances in which the parent has received child care services while awaiting an appeal and the determination is affirmed by the hearing officer; or(3) Instances in which the parent fails to pay the parent share of cost and the Board's policy is to pay the provider for the parent's failure to pay the parent share of cost.(e) A Board shall ensure that a parent subject to the repayment provisions in subsection (d) of this section shall prohibit future child care eligibility until the repayment amount is recovered, provided that the prohibition does not result in a Choices or SNAP E&T participant becoming ineligible for child care.</content><note type="source"><p>Source Note: The provisions of this §809.117 adopted to be effective January 29, 2007, 32 TexReg 336; amended to be effective October 1, 2016, 41 TexReg 7529.</p></note></section></subchapter><subchapter identifier="/us/state/tx/tac/t40/p20/c809/scG"><num value="G">SUBCHAPTER G</num><heading>TEXAS RISING STAR PROGRAM</heading><section identifier="/us/state/tx/tac/t40/p20/c809/scG/s809.130"><num value="809.130">§809.130</num><heading>Short Title and Purpose</heading><content>(a) The rules contained in this subchapter may be cited as the Texas Rising Star Program rules.(b) The purpose of the Texas Rising Star Program rules is to interpret and implement Texas Government Code §2308.3155, which requires the Commission to establish rules to administer the Texas Rising Star program, including guidelines for rating a child care provider for Texas Rising Star certification and designation of an Entry Level child care provider.(c) The Texas Rising Star Program rules identify the organizational structure and categories of, and the scoring factors that shall be included in, the Texas Rising Star guidelines.(d) The Texas Rising Star guidelines shall:(1) describe measures for Texas Rising Star certification that contain, at a minimum, measures for child care providers regarding:(A) director and staff qualifications and training;(B) teacher-child interactions;(C) program administration; and(D) indoor/outdoor environments;(2) specify measures that:(A) must be met in order for a provider to be certified at each star level; and(B) are observed and have points awarded through on-site assessments;(3) specify the scoring methodology and scoring thresholds for each certified star level;(4) describe the high and medium-high CCR deficiencies points threshold pursuant to §809.131 and §809.132 of this chapter; and(5) the process for designating providers at the Entry Level.(e) The Texas Rising Star guidelines:(1) shall be reviewed and updated by the Commission at a minimum of every four years in conjunction with the rule review of this chapter, conducted pursuant to Texas Government Code §2001.039 and the Texas Rising Star guidelines review shall:(A) consider input from stakeholders; and(B) include at least one public hearing held prior to submitting the stakeholder input to the Commission;(2) shall be adopted by the Commission subject to the requirements of the Texas Open Meetings Act; and(3) may be reviewed and amended as determined necessary by the Commission in accordance with the requirements of the Texas Open Meetings Act.</content><note type="source"><p>Source Note: The provisions of this §809.130 adopted to be effective February 16, 2015, 40 TexReg 708; amended to be effective March 14, 2016, 41 TexReg 1975; amended to be effective January 25, 2021, 46 TexReg 593; amended to be effective October 3, 2022, 47 TexReg 6437; amended to be effective July 29, 2024, 49 TexReg 5540.</p></note></section><section identifier="/us/state/tx/tac/t40/p20/c809/scG/s809.131"><num value="809.131">§809.131</num><heading>Requirements for the Texas Rising Star Program</heading><content>(a) A regulated child care provider is eligible for initial certification under the Texas Rising Star program if the provider has a current agreement to serve Commission-subsidized children and:(1) has a permanent (nonexpiring) license or registration from CCR;(2) has at least 12 months of licensing history with CCR and does not exceed the points threshold for high and medium-high CCR deficiencies within the most recent 6-month period as established in the Texas Rising Star guidelines pursuant to §809.130(d)(4), and is not on:(A) corrective action with a Board pursuant to Subchapter F of this chapter;(B) a "Notice of Freeze" with the Commission pursuant to Texas Labor Code, Chapter 213 (Enforcement of the Texas Unemployment Compensation Act) or Chapter 61 (Payment of Wages); or(C) corrective or adverse action with CCR;(3) meets the criteria for star-level certification in the Texas Rising Star guidelines pursuant to §809.130(d) of this subchapter; and(4) has at minimum, a center director account registered in the Texas Early Childhood Professional Development System Workforce Registry; or(5) is regulated by and in good standing with the United States Military.(b) Regulated child care providers not meeting the Texas Rising Star certification requirements described in this subchapter and established in the Texas Rising Star guidelines shall be initially designated as Entry Level if the child care provider:(1) is not on corrective or adverse action with CCR; and(2) does not exceed the points threshold for high and medium-high CCR deficiencies within the most recent 6-month period as established in the Texas Rising Star guidelines pursuant to §809.130(d)(4).(c) A provider initially meeting the requirements in subsection (b) of this section is eligible for mentoring services through the Texas Rising Star program during the time periods described in subsections (d) - (f) of this section.(d) A provider shall be initially designated as Entry Level for no more than 24 months unless approved for a waiver under subsection (f) of this section.(e) An Entry Level provider will be reviewed for Texas Rising Star certification no later than the end of the 12th month of the 24-month period. Beginning on the 18th month, an Entry Level provider will be reviewed monthly for Texas Rising Star certification, and if it is determined that they will not be eligible by the end of their 24-month timeframe based on the 6-month licensing review time period (as described in subsection (a)(2) of this section), the provider shall not receive referrals for new families as an Entry Level provider, unless the provider is located in a child care desert or serves an underserved population and is approved by the Agency to accept new family referrals.(f) The Agency may approve a waiver to extend the time limit under subsection (d) of this section if the provider is:(1) located in a child care desert or serves an underserved population as determined by the Agency;(2) unable to meet the certification requirements due to a federal or state declared emergency/disaster; or(3) unable to meet the certification requirements due to conditions that the Agency determines are outside the provider's control.(g) Waivers approved under subsection (f) of this section shall not exceed a total of 36 months.</content><note type="source"><p>Source Note: The provisions of this §809.131 adopted to be effective February 16, 2015, 40 TexReg 708; amended to be effective January 8, 2019, 44 TexReg 114; amended to be effective January 25, 2021, 46 TexReg 593; amended to be effective October 3, 2022, 47 TexReg 6437; amended to be effective July 29, 2024, 49 TexReg 5540.</p></note></section><section identifier="/us/state/tx/tac/t40/p20/c809/scG/s809.132"><num value="809.132">§809.132</num><heading>Impacts on Texas Rising Star Certification</heading><content>(a) A Texas Rising Star-certified provider shall be placed on suspension status if the provider:(1) is placed on corrective action with a Board pursuant to Subchapter F of this chapter;(2) is under a "Notice of Freeze" with the Commission pursuant to Texas Labor Code, Chapter 213 (Enforcement of the Texas Unemployment Compensation Act) or Chapter 61 (Payment of Wages);(3) is placed on corrective or adverse action by CCR(4) exceeds the probationary status points threshold as described in the Texas Rising Star guidelines pursuant to §809.130(d)(4);(5) had more than four probationary impacts during its three-year certification period;(6) had a consecutive third probationary impact;(7) is cited for specified CCR minimum standards regarding weapons and ammunition; or(8) is not meeting at least the Two-Star level due to noncompliance with Texas Rising Star guidelines at the most recent assessment of certification.(b) Texas Rising Star-certified providers with any of the specified "star level drop" licensing deficiencies listed in the Texas Rising Star guidelines during the most recent 6-month CCR licensing history shall be placed on a six-month Texas Rising Star probationary period. Furthermore:(1) reduction of one star level for each deficiency cited, so a Four-Star certified provider is reduced to a Three-Star provider, a Three-Star provider is reduced to a Two-Star provider, and a Two-Star provider is placed on suspension status; and/or(2) if CCR does not cite any additional specified star-level drop deficiencies during the 6-month probationary period the provider shall be reinstated at the former star level.(c) Texas Rising Star-certified providers with any of the specified "probationary" licensing deficiencies listed in the Texas Rising Star guidelines during the most recent 6-month CCR licensing history shall be placed on a six-month Texas Rising Star probationary period. Furthermore:(1) Texas Rising Star-certified providers on a six-month probationary period that are cited by CCR within the probationary period for any additional specified probationary deficiencies within the probationary period shall be placed on a second, consecutive probation and lose a star level, with a Two-Star certified provider being placed on suspension status;(2) if CCR does not cite any additional specified probationary deficiencies during the probationary period, the provider can be removed from probation status and shall be reinstated at the former star level, if applicable; and(3) if any additional specified probationary deficiencies are cited by CCR during the second six-month probationary period, the provider shall be placed on suspension status.(d) Texas Rising Star-certified providers whose total points for high or medium-high deficiencies received during the most recent 6-month CCR licensing history fall within the prescribed points threshold range as described in the Texas Rising Star guidelines pursuant to §809.130(d)(4), shall be placed on a six-month Texas Rising Star program probationary period. Furthermore:(1) Texas Rising Star-certified providers on a six-month probationary period that are cited by CCR within the probationary period for any additional high or medium-high weighted deficiencies within the probationary period shall be placed on a second, consecutive probation and lose a star level, with a Two-Star certified provider being placed on suspension status;(2) if CCR does not cite any additional high or medium-high weighted deficiencies during the probationary period, the provider can be removed from probation status and shall be reinstated at the former star level, if applicable; and(3) if any additional high or medium-high weighted deficiencies are cited by CCR during the second six-month probationary period, the provider shall be placed on suspension status.(e) Certified providers in suspension status shall be eligible for a reassessment after six months following the suspension date, as long as no deficiencies described in subsections (b) - (c) of this section are cited during the previous six months.(f) Certified providers in suspension status shall achieve at least a Two-Star certification no later than 15 months following the suspension date. Failure to achieve at least a Two-Star certification within the 15-month period will result in the provider's ineligibility to provide child care services under this chapter.(g) Certified providers on suspension status:(1) shall be eligible to provide child care services under this chapter as long as the provider meets at least the Entry Level criteria described in §809.131(b) of this chapter;(2) shall not be eligible for the enhanced payment rate and shall be paid at the Board's Entry Level rate; and(3) shall not be able to receive referrals from a new family during the last six months of the 15-month period, unless the provider is located in a child care desert or serves an underserved population and is approved by the Agency to accept new family referrals.(h) Certified providers in suspension status that fail to achieve at least a Two-Star certification by the end the 15-month suspension period:(1) are not eligible to provide child care services under this chapter;(2) are not eligible for the Entry Level designation time frame described in §809.131(e) of this chapter;(3) are not eligible for the extension waiver described in §809.131(f) of this chapter; and(4) must subsequently meet at least a Two-Star certification eligibility and screening requirements to provide child care services under this subchapter.</content><note type="source"><p>Source Note: The provisions of this §809.132 adopted to be effective February 16, 2015, 40 TexReg 708; amended to be effective January 8, 2019, 44 TexReg 114; amended to be effective July 6, 2020, 45 TexReg 4528; amended to be effective January 25, 2021, 46 TexReg 593; amended to be effective October 3, 2022, 47 TexReg 6437; amended to be effective July 29, 2024, 49 TexReg 5540.</p></note></section><section identifier="/us/state/tx/tac/t40/p20/c809/scG/s809.133"><num value="809.133">§809.133</num><heading>Application and Assessments for Texas Rising Star Certification</heading><content>(a) Texas Rising Star certification applicants must complete:(1) an orientation on the Texas Rising Star guidelines, including an overview of the:(A) Texas Rising Star program application process;(B) Texas Rising Star program measures; and(C) Texas Rising Star program assessment process;(2) the creation of a continuous quality improvement plan; and(3) a Texas Rising Star program self-assessment tool.(b) The Agency's designated Texas Rising Star assessment entity shall ensure that:(1) written acknowledgment of receipt of the application and self-assessment is sent to the provider;(2) within 20 days of receipt of the application, the provider is sent an estimated time frame for scheduling the initial assessment;(3) an assessment is conducted for any provider that meets the eligibility requirements in §809.131 of this subchapter and requests certification under the Texas Rising Star program; and(4) Texas Rising Star certification is granted for any provider that is assessed and verified as meeting the Texas Rising Star provider certification criteria set forth in the Texas Rising Star guidelines.(c) The Agency's designated Texas Rising Star assessment entity shall ensure that Texas Rising Star certification assessments are conducted as follows:(1) On-site assessment of 100 percent of the provider classrooms at the initial assessment for Texas Rising Star certification and at each scheduled recertification; and(2) Recertification of all certified Texas Rising Star providers every three years.(d) The Agency's designated Texas Rising Star assessment entity shall ensure that certified Texas Rising Star providers are monitored on an annual basis and the monitoring includes:(1) at least one unannounced on-site visit; and(2) a review of the provider's licensing compliance as described in §809.132 of this chapter.(e) The Agency's designated Texas Rising Star assessment entity shall ensure compliance with the process and procedures in the Texas Rising Star guidelines for conducting assessments of nationally accredited child care facilities and child care facilities regulated by the United States Military.(f) The Agency's designated Texas Rising Star assessment entity shall ensure compliance with the process and procedures in the Texas Rising Star guidelines for conducting assessments of certified Texas Rising Star providers that have a change of ownership, move, or expand locations.(g) Boards shall ensure compliance with the process and procedures in the Texas Rising Star guidelines for implementing and supporting a continuous quality improvement framework.</content><note type="source"><p>Source Note: The provisions of this §809.133 adopted to be effective February 16, 2015, 40 TexReg 708; amended to be effective January 25, 2021, 46 TexReg 593; amended to be effective October 3, 2022, 47 TexReg 6437; amended to be effective July 29, 2024, 49 TexReg 5540.</p></note></section><section identifier="/us/state/tx/tac/t40/p20/c809/scG/s809.134"><num value="809.134">§809.134</num><heading>Minimum Qualifications for Texas Rising Star Staff</heading><content>(a) Boards and the Agency's designated Texas Rising Star assessment entity shall:(1) conduct a background check on each Texas Rising Star staff member prior to hiring and again every five years; and(2) ensure that each Texas Rising Star staff completes the Texas Rising Star standards training, as described in the Texas Rising Star guidelines.(b) Boards shall ensure that Texas Rising Star mentor staff meets the minimum requirements in subsections (c) - (f) of this section.(c) Texas Rising Star mentor staff shall meet the minimum education requirements as follows:(1) Bachelor's degree from an accredited four-year college or university in early childhood education, child development, special education, child psychology, educational psychology, elementary education, or family consumer science;(2) Bachelor's degree from an accredited four-year college or university with at least 18 credit hours in early childhood education, child development, special education, child psychology, educational psychology, elementary education, or family consumer science with at least 12 credit hours in child development; or(3) Associate's degree in early childhood education, child development, special education, child psychology, educational psychology, elementary education, or family consumer science, and two years of suitable experience in early childhood education as determined by the Board.(d) The Agency may grant a waiver of no more than two years to obtain the minimum education requirements in subsection (c) of this section if a Board can demonstrate that no applicants in its workforce area meet the minimum education requirements.(e) Texas Rising Star mentor staff shall meet the minimum work experience requirements of one year of full-time early childhood classroom experience in a child care, EHS, HS, or pre-K through third-grade school program.(f) All mentors must attain mentor microcredentialing, as described in the Texas Rising Star Guidelines.(g) The Agency's designated Texas Rising Star assessment entity shall ensure that Texas Rising Star assessor staff shall attain and maintain the Texas Rising Star Assessor Certification, as described in the Texas Rising Star Guidelines.</content><note type="source"><p>Source Note: The provisions of this §809.134 adopted to be effective February 16, 2015, 40 TexReg 708; amended to be effective January 8, 2019, 44 TexReg 114; amended to be effective January 25, 2021, 46 TexReg 593; amended to be effective October 3, 2022, 47 TexReg 6437; amended to be effective July 29, 2024, 49 TexReg 5540.</p></note></section><section identifier="/us/state/tx/tac/t40/p20/c809/scG/s809.135"><num value="809.135">§809.135</num><heading>Texas Rising Star Process for Reconsideration</heading><content>The Agency's designated Texas Rising Star assessment entity shall ensure a process for reconsideration of facility assessment for Texas Rising Star certification. Texas Rising Star assessments are not subject to Chapter 823 of this title (relating to Integrated Complaints, Hearings, and Appeals).</content><note type="source"><p>Source Note: The provisions of this §809.135 adopted to be effective February 16, 2015, 40 TexReg 708; amended to be effective October 3, 2022, 47 TexReg 6437.</p></note></section><section identifier="/us/state/tx/tac/t40/p20/c809/scG/s809.136"><num value="809.136">§809.136</num><heading>Roles and Responsibilities of Texas Rising Star Staff</heading><content>Boards and the Agency's designated Texas Rising Star assessment entity shall ensure that Texas Rising Star staff members comply with their assigned responsibilities, as applicable.(1) A mentor is defined as a Board or Board contract staff member who helps providers obtain, maintain, or achieve higher star levels of certification.(2) An assessor is defined as a staff member or contractor of the Agency's designated Texas Rising Star assessment entity who assesses and monitors providers that obtain, maintain, and achieve higher levels of quality.(3) Texas Rising Star staff members are required to complete annual professional development and continuing education consistent with the Texas Rising Star annual minimum training hours requirement for a Texas Rising Star-certified child care center director.(4) Pursuant to Texas Family Code §261.101, Texas Rising Star staff members are mandated reporters when observing serious incidents as described in the Texas Rising Star guidelines.</content><note type="source"><p>Source Note: The provisions of this §809.136 adopted to be effective January 25, 2021, 46 TexReg 593; amended to be effective October 3, 2022, 47 TexReg 6437; amended to be effective July 29, 2024, 49 TexReg 5540.</p></note></section></subchapter></chapter><chapter identifier="/us/state/tx/tac/t40/p20/c810"><num value="810">CHAPTER 810</num><heading>LONE STAR WORKFORCE OF THE FUTURE FUND</heading><subchapter identifier="/us/state/tx/tac/t40/p20/c810/scA"><num value="A">SUBCHAPTER A</num><heading>GENERAL PROVISIONS REGARDING THE LONE STAR WORKFORCE OF THE FUTURE FUND</heading><section identifier="/us/state/tx/tac/t40/p20/c810/scA/s810.1"><num value="810.1">§810.1</num><heading>Purpose and Goal</heading><content>(a) Purpose. The purpose of the Lone Star Workforce of the Future Fund is to develop workforce training programs that are administered by public junior colleges, public technical institutes, and nonprofit organizations to increase the supply of qualified workers for entry-level to mid-level jobs in high demand occupations in this state.(b) Goal. The goal of the Lone Star Workforce of the Future Fund is to ensure that the Texas workforce is capable of filling available and emerging jobs in this state that require less education than a bachelor's degree but more education than a high school diploma.</content><note type="source"><p>Source Note: The provisions of this §810.1 adopted to be effective December 11, 2023, 48 TexReg 7175.</p></note></section><section identifier="/us/state/tx/tac/t40/p20/c810/scA/s810.2"><num value="810.2">§810.2</num><heading>Definitions</heading><content>In addition to the definitions contained in §800.2 of this title, the following words and terms, when used in this chapter, shall have the following meanings unless the context clearly indicates otherwise.(1) Advisory board--the advisory board of education and workforce stakeholders created pursuant to the applicable statute.(2) Agency--the unit of state government established under Texas Labor Code Chapter 301 that is presided over by the Commission and administered by the Executive Director to operate the integrated workforce development system and administer the unemployment compensation insurance program in this state as established under the Texas Unemployment Compensation Act, Texas Labor Code, Title 4, Subtitle A, as amended. The definition of "Agency" shall apply to all uses of the term in rules contained in this part, unless otherwise defined, relating to the Texas Workforce Commission.(3) Commission--the body of governance of the Texas Workforce Commission composed of three members appointed by the governor as established under Texas Labor Code §301.002 that includes one representative of labor, one representative of employers, and one representative of the public. The definition of "Commission" shall apply to all uses of the term in rules contained in this part, unless otherwise defined, relating to the Texas Workforce Commission.(4) Eligible applicant--has the same meaning as identified under Texas Education Code §134A.007.(5) Executive Director--the Executive Director of the Texas Workforce Commission.(6) Grant recipient--a recipient of the Lone Star Workforce of the Future Fund.(7) Public junior college--any junior college certified by the Texas Higher Education Coordinating Board in accordance with Texas Education Code §61.003.(8) Public technical institute--the Lamar Institute of Technology or the Texas State Technical College System, in accordance with Texas Education Code §61.003.(9) Statute--Texas Education Code, Chapter 134A, Lone Star Workforce of the Future Fund.(10) Workforce training program--a program that provides performance-based workforce training that:(A) leads to skill development and experiences required for employment in high demand occupations;(B) are developed and provided based on consultation with and input from employers that are hiring in high demand occupations;(C) create pathways to employment for program participants; and(D) are delivered through classroom-based or online instruction, work-based experiences, internships or apprenticeships, or through a combination of those methods.</content><note type="source"><p>Source Note: The provisions of this §810.2 adopted to be effective December 11, 2023, 48 TexReg 7175.</p></note></section><section identifier="/us/state/tx/tac/t40/p20/c810/scA/s810.3"><num value="810.3">§810.3</num><heading>Uses of the Fund</heading><content>An entity may use grant money received under this chapter only for:(1) curriculum development;(2) instructor fees and certifications;(3) training materials;(4) work-related expenses;(5) work-based experience stipends;(6) support services, deemed reasonable and necessary by the Agency, to help ensure training program participants' success; and(7) administrative costs not to exceed 10 percent of the total amount of grant money received by the entity.</content><note type="source"><p>Source Note: The provisions of this §810.3 adopted to be effective December 11, 2023, 48 TexReg 7175.</p></note></section><section identifier="/us/state/tx/tac/t40/p20/c810/scA/s810.4"><num value="810.4">§810.4</num><heading>Waivers</heading><content>The Executive Director, or designee, may suspend or waive a section of this chapter, not statutorily imposed, in whole or in part, upon a showing of good cause and a finding that the public interest would be served by such a suspension or waiver.</content><note type="source"><p>Source Note: The provisions of this §810.4 adopted to be effective December 11, 2023, 48 TexReg 7175.</p></note></section></subchapter><subchapter identifier="/us/state/tx/tac/t40/p20/c810/scB"><num value="B">SUBCHAPTER B</num><heading>ADVISORY BOARD COMPOSITION, MEETING GUIDELINES</heading><section identifier="/us/state/tx/tac/t40/p20/c810/scB/s810.11"><num value="810.11">§810.11</num><heading>Advisory Board Purpose and Composition</heading><content>(a) The advisory board is created to assist the Agency in administering the Lone Star Workforce of the Future Fund.(b) The advisory board comprises six members who serve two-year terms, and are appointed as follows:(1) one member appointed by the Governor;(2) one member appointed by the Lieutenant Governor;(3) one member appointed by the Speaker of the House of Representatives;(4) one member appointed by the Texas Higher Education Coordinating Board;(5) one member appointed by the Commission; and(6) the Commission Chair, who serves as the presiding officer.</content><note type="source"><p>Source Note: The provisions of this §810.11 adopted to be effective December 11, 2023, 48 TexReg 7175.</p></note></section><section identifier="/us/state/tx/tac/t40/p20/c810/scB/s810.12"><num value="810.12">§810.12</num><heading>Meeting Requirements</heading><content>The advisory board is required to meet at least twice each calendar year, or as needed.</content><note type="source"><p>Source Note: The provisions of this §810.12 adopted to be effective December 11, 2023, 48 TexReg 7175.</p></note></section><section identifier="/us/state/tx/tac/t40/p20/c810/scB/s810.13"><num value="810.13">§810.13</num><heading>Advisory Board Responsibilities</heading><content>The advisory board shall provide advice and recommendations to the Commission on awarding grants under this chapter.</content><note type="source"><p>Source Note: The provisions of this §810.13 adopted to be effective December 11, 2023, 48 TexReg 7175.</p></note></section></subchapter><subchapter identifier="/us/state/tx/tac/t40/p20/c810/scC"><num value="C">SUBCHAPTER C</num><heading>PROGRAM ADMINISTRATION</heading><section identifier="/us/state/tx/tac/t40/p20/c810/scC/s810.21"><num value="810.21">§810.21</num><heading>Statement of Purpose</heading><content>In accordance with the statute, the Commission established the Lone Star Workforce of the Future Fund Grant Program, which shall be administered pursuant to the statute and this subchapter to award grants for the development of workforce training programs to public junior colleges, public technical institutes, and nonprofit organizations that meet the requirements of Texas Education Code, Chapter 134A, Lone Star Workforce of the Future Fund.</content><note type="source"><p>Source Note: The provisions of this §810.21 adopted to be effective December 11, 2023, 48 TexReg 7175.</p></note></section><section identifier="/us/state/tx/tac/t40/p20/c810/scC/s810.22"><num value="810.22">§810.22</num><heading>Procedure for Requesting Funding</heading><content>An eligible applicant, as defined by Texas Education Code §134A.007, shall present to the Executive Director, or designee, an application for funding to acquire grant funds for the provision of workforce training as may be identified by the eligible applicant.</content><note type="source"><p>Source Note: The provisions of this §810.22 adopted to be effective December 11, 2023, 48 TexReg 7175.</p></note></section><section identifier="/us/state/tx/tac/t40/p20/c810/scC/s810.23"><num value="810.23">§810.23</num><heading>Procedure for Proposal Evaluation</heading><content>(a) The Executive Director, or designee, shall evaluate each proposal considering the purposes listed in §810.3 of this chapter, the program objectives listed in §810.26 of this subchapter, and the reporting requirements listed in §810.28 of this subchapter, and any other unique factors that the Agency determines are appropriate.(b) If the Agency determines that a proposal is appropriate for funding through the Lone Star Workforce of the Future Fund, the Executive Director, or designee, shall enter into a contract with the grant recipient on behalf of the Agency.</content><note type="source"><p>Source Note: The provisions of this §810.23 adopted to be effective December 11, 2023, 48 TexReg 7175.</p></note></section><section identifier="/us/state/tx/tac/t40/p20/c810/scC/s810.24"><num value="810.24">§810.24</num><heading>Grant Agreement Administration</heading><content>(a) An eligible applicant, as defined by Texas Education Code §134A.007, may apply for the grant program outlined in this section.(b) The Agency shall attach a list of high-growth career fields identified by the Agency, the Texas Workforce Investment Council, or the Tri-Agency Workforce Initiative established under Texas Government Code Chapter 2308A on the Agency's website and update the list annually.(c) Grant recipients must enter into an agreement with the Agency to comply with contract requirements that include, but are not limited to:(1) submitting all required reports, including financial and performance reports, in the format and time frame required by the Agency;(2) maintaining fiscal data needed for independent verification of expenditures of funds received for the training project;(3) cooperating and complying with Agency monitoring activities as required by Chapter 802, Subchapter D, of this title (relating to Agency Monitoring Activities); and(4) submitting contract completion reports:(A) The final payment of the contract is contingent upon the Executive Director's, or designee's, determination that a project has met the performance benchmarks outlined in §810.27 of this subchapter.(B) The final payment of the contract will be withheld for 60 days after the completion of training and after receipt by the Agency of verification from the employer that the trainees are employed.</content><note type="source"><p>Source Note: The provisions of this §810.24 adopted to be effective December 11, 2023, 48 TexReg 7175.</p></note></section><section identifier="/us/state/tx/tac/t40/p20/c810/scC/s810.25"><num value="810.25">§810.25</num><heading>Limitations on Awards</heading><content>The Commission shall impose a limit per training program participant, not to exceed $15,000 per participant, on the amount of funds awarded under any specific grant.</content><note type="source"><p>Source Note: The provisions of this §810.25 adopted to be effective December 11, 2023, 48 TexReg 7175.</p></note></section><section identifier="/us/state/tx/tac/t40/p20/c810/scC/s810.26"><num value="810.26">§810.26</num><heading>Program Objectives</heading><content>The program objectives in administering the Lone Star Workforce of the Future Fund are:(1) to create and sustain a utilization-driven supply of qualified workers for entry-level to mid-level jobs in high demand occupations in this state;(2) to address skills needed by workers to obtain and retain employment;(3) to increase the interest of current and future Texans to fill the available and emerging jobs in this state that require less education than a bachelor's degree but more than a high school diploma; and(4) strengthen the state's economy by increasing competitiveness of businesses in this state and the recruitment of business of this state.</content><note type="source"><p>Source Note: The provisions of this §810.26 adopted to be effective December 11, 2023, 48 TexReg 7175.</p></note></section><section identifier="/us/state/tx/tac/t40/p20/c810/scC/s810.27"><num value="810.27">§810.27</num><heading>Performance Benchmarks</heading><content>(a) A grant recipient under this chapter must facilitate the successful transition of at least 50 percent of the entity's training program participants from low-wage work or unemployment to full-time employment in jobs offering a self-sufficient wage, as determined under Texas Government Code §2308A.012, and the opportunity for career mobility, as determined by the Agency, within six months of training program completion.(b) Should a grant recipient fail to meet the requirements of this section, the grant recipient shall reimburse the Agency on a pro rata basis based on the number of individuals successfully trained and placed.(c) A grant recipient is not required to comply with a performance benchmark required by this section if the Executive Director determines that the entity's compliance is not possible because of an act of God, force majeure, or a similar cause not reasonably within the entity's control.</content><note type="source"><p>Source Note: The provisions of this §810.27 adopted to be effective December 11, 2023, 48 TexReg 7175.</p></note></section><section identifier="/us/state/tx/tac/t40/p20/c810/scC/s810.28"><num value="810.28">§810.28</num><heading>Reporting Requirements</heading><content>(a) A grant recipient must comply with all of the contract's reporting requirements in the frequency and format determined by the Agency in order to maintain eligibility for grant payments. Failure to comply with the reporting requirements may result in termination of the grant award and the grant recipient's ineligibility for future grants under this chapter.(b) A grant recipient must submit a progress report to the Agency at least twice annually that includes:(1) the number of participants;(2) an update on its progress toward reaching its performance benchmarks;(3) a description of any key accomplishments achieved, lessons learned, or setbacks or risks incurred in administering the training program;(4) an explanation of any material changes to the training program's work plan, team, or budget; and(5) the amount of grant money spent during the reporting period.</content><note type="source"><p>Source Note: The provisions of this §810.28 adopted to be effective December 11, 2023, 48 TexReg 7175.</p></note></section></subchapter></chapter><chapter identifier="/us/state/tx/tac/t40/p20/c811"><num value="811">CHAPTER 811</num><heading>CHOICES</heading><subchapter identifier="/us/state/tx/tac/t40/p20/c811/scA"><num value="A">SUBCHAPTER A</num><heading>GENERAL PROVISIONS</heading><section identifier="/us/state/tx/tac/t40/p20/c811/scA/s811.1"><num value="811.1">§811.1</num><heading>Purpose and Goal</heading><content>(a) The purposes of Temporary Assistance for Needy Families (TANF), as set forth in Title IV, Social Security Act, §401 (42 USCA §601) are:(1) provide assistance to needy families so that children may be cared for in their own homes or in the homes of relatives;(2) end the dependence of needy parents on government benefits by promoting job preparation, work, and marriage;(3) prevent and reduce incidences of out-of-wedlock pregnancies and establish annual numerical goals for preventing and reducing these pregnancies; and(4) encourage the formation and maintenance of two-parent families.(b) The goal of Choices services is to end the dependence of needy parents on public assistance by promoting job preparation, work, and marriage. A Local Workforce Development Board (Board) may exercise flexibility in providing services to Choices-eligible individuals to meet this Choices goal. A Board is also provided the flexibility and may engage in strategies that promote the prevention and reduction of out-of-wedlock pregnancies and encourage the formation and maintenance of two-parent families if those strategies support the primary goal of Choices services, which is employment and job retention.(c) The Agency's goal is to ensure delivery of the employment and training activities as described in the TANF State Plan and the TANF Work Verification Plan.(d) Boards shall identify the workforce needs of local employers and design Choices services to ensure that local employer needs are met and that the services are consistent with the goals and purposes of Choices services as referenced in this section, and as authorized by the Personal Responsibility and Work Opportunity Reconciliation Act of 1996 (PRWORA), the applicable federal regulations at 45 CFR Parts 260 - 265, the TANF State Plan, the TANF Work Verification Plan, this chapter, and consistent with a Board's approved integrated workforce training and services plan as referenced in §801.17 of this title.</content><note type="source"><p>Source Note: The provisions of this §811.1 adopted to be effective November 18, 2003, 28 TexReg 10261; amended to be effective February 26, 2007, 32 TexReg 906; amended to be effective January 8, 2013, 38 TexReg 180; amended to be effective December 3, 2018, 43 TexReg 7801; amended to be effective May 20, 2024, 49 TexReg 3587.</p></note></section><section identifier="/us/state/tx/tac/t40/p20/c811/scA/s811.2"><num value="811.2">§811.2</num><heading>Definitions</heading><content>The following words and terms, when used in this chapter, shall have the following meanings unless the context clearly indicates otherwise.(1) Applicant--An adult, or teen head of household, in a family who applies for TANF cash assistance, who previously did not leave TANF in a sanctioned status.(2) Choices-eligible individual--An individual eligible to receive Choices services including an adult or teen head of household who is an applicant, conditional applicant, recipient, nonrecipient parent, former recipient, or sanctioned family as defined in this chapter.(3) Choices participant--A Choices-eligible individual participating in or outreached for Choices services, including:(A) Exempt Choices participant--A Choices-eligible individual who is not required under Texas Human Resources Code, Chapter 31 or Texas Health and Human Services Commission (HHSC) rules (1 TAC, Part 15, Chapter 372, Temporary Assistance for Needy Families and Supplemental Nutrition Assistance Programs) to participate in Choices services, but who may voluntarily participate in Choices services.(B) Mandatory Choices participant--A Choices-eligible individual who is required under Texas Human Resources Code, Chapter 31 or HHSC rules (1 TAC, Part 15, Chapter 372) to participate in Choices services.(4) Community service--A program that provides employment and training activities to Choices participants through unsalaried, work-based positions in the public or private nonprofit sectors. Community service programs contain structured, supervised activities that are a direct benefit to the community and are designed to improve the employability of Choices participants who have been unable to find employment.(5) Conditional applicant--An adult or teen head of household who left TANF in a sanctioned status, but who is reapplying for TANF cash assistance and must demonstrate cooperation with Choices program requirements for four consecutive weeks.(6) Earned Income Deduction (EID)--A standard work-related and income deduction, available for four months through HHSC.(7) Employment Planning Session (EPS)--A meeting with a TANF recipient to introduce Choices services.(8) Extended TANF recipient--A recipient who receives TANF cash assistance past the 60-month federal time limit because of a hardship exemption as defined in Texas Human Resources Code, Chapter 31 and HHSC rules (1 TAC, Part 15, Chapter 372).(9) Former recipient--An adult or teen head of household who no longer receives TANF cash assistance because of employment.(10) HHSC--Texas Health and Human Services Commission.(11) Job readiness--Short-term structured activities or a series of activities lasting less than six months designed to prepare a job seeker for unsubsidized employment and increase the job seeker's employability. Activities may include, but are not limited to: interviewing skills, job retention skills, personal maintenance skills, professional conduct skills, and introductory computer skills.(12) Job search--Acts of seeking or obtaining employment, or preparing to seek or obtain employment, including life skills training, substance abuse treatment, mental health treatment, or rehabilitation activities. Activities may include: information on and referral to available jobs; occupational exploration, including information on local emerging and demand occupations; job fairs; applying or interviewing for job vacancies; and contacting potential employers.(13) Job skills training--Training or education for job skills required by an employer to provide a Choices participant with the ability to obtain employment or to advance or adapt to the changing demands of the workplace.(14) Nonrecipient parent--Adults or minor heads of household not receiving TANF cash assistance but living with their own children who are receiving TANF cash assistance. Nonrecipient parents include parents who are not eligible for TANF cash assistance:(A) due to a disqualification by HHSC. These disqualifications include parents who:(i) refuse to comply with Medicaid third-party resource requirements;(ii) do not comply with Social Security number requirements;(iii) are found guilty of an intentional program violation;(iv) fail to report the temporary absence of a certified child;(v) are fugitives fleeing to avoid prosecution of, or confinement for, a felony criminal conviction, or are found by a court to be violating federal or state probation or parole;(vi) are convicted of a felony drug offense (not deferred adjudication) committed on or after April 1, 2002; or(vii) refuse to cooperate with the program integrity assessment process;(B) because they are receiving Supplemental Security Income (SSI) or Social Security Disability Insurance (SSDI); or(C) because they have exhausted their TANF state time limit.(15) PRWORA--The Personal Responsibility and Work Opportunity Reconciliation Act of 1996, Pub. L. No. 104-193, 110 Stat. 2105, as amended.(16) Recipient--An adult or teen head of household who receives TANF cash assistance.(17) Sanctioned family--An adult or teen head of household who must demonstrate cooperation for one month in order to reinstate TANF cash assistance.(18) Secondary school--Educational activities including middle school, high school leading to a high school diploma, or classes leading to the completion of a high school equivalency credential.(19) TANF cash assistance--The cash grant provided through HHSC to individuals who meet certain residency, income, and resource criteria as provided under federal and state statutes and regulations, including PRWORA, the TANF block grant statutes, the TANF State Plan, TANF cash assistance provided under Texas Human Resources Code, Chapters 31 and 34, and other related regulations.(20) The TWC case management system--The Agency's automated data processing and case management system for the Texas workforce system.(21) Vocational educational training--Organized educational programs directly related to preparing Choices participants for employment in current or emerging occupations.(22) Work-based services--Includes those employment programs defined in Texas Human Resources Code §31.0126.(23) Work-eligible individual--Work-eligible individuals are adults or minor heads of household receiving TANF cash assistance, and nonrecipient parents living with a child receiving such assistance--with the following exceptions:(A) Noncitizens who are ineligible to receive cash assistance because of their immigration status;(B) Parents caring for a disabled family member who lives in the home (provided the need for such care is supported by medical documentation), on a case-by-case basis;(C) Recipients of SSI or SSDI, on a case-by-case basis; and(D) A minor parent who is not the head-of-household.(24) Work experience--Unpaid training in the public or private sector designed to improve the employability of Choices participants who have been unable to find employment.(25) Work ready--A Choices-eligible individual is considered work ready if he or she has the skills that are required by employers in the local workforce development area. A Board must ensure immediate access to the labor market to determine whether the Choices-eligible individual has those necessary skills to obtain employment.(26) Work requirement--For the purposes of 42 USC §607 and 45 CFR §261.10, a Choices participant is deemed to be engaged in work by participating in:(A) unsubsidized employment;(B) subsidized employment;(C) on-the-job training (OJT); or(D) educational services for Choices participants who have not completed secondary school or received a high school equivalency credential as provided in §811.30 of this chapter.</content><note type="source"><p>Source Note: The provisions of this §811.2 adopted to be effective November 18, 2003, 28 TexReg 10261; amended to be effective February 26, 2007, 32 TexReg 906; amended to be effective September 29, 2008, 33 TexReg 8192; amended to be effective January 8, 2013, 38 TexReg 180; amended to be effective December 3, 2018, 43 TexReg 7801; amended to be effective May 20, 2024, 49 TexReg 3587.</p></note></section><section identifier="/us/state/tx/tac/t40/p20/c811/scA/s811.3"><num value="811.3">§811.3</num><heading>Choices Service Strategy</heading><content>(a) A Board shall ensure that its strategic planning process includes an analysis of the local labor market to:(1) determine employers' needs;(2) determine emerging and demand occupations; and(3) identify employment opportunities, which include those with a potential for career advancement that may assist a Choices-eligible individual's progression toward self-sufficiency.(b) The Choices service strategy shall include:(1) Workforce Orientation for Applicants (WOA). As a condition of eligibility, applicants and conditional applicants are required to attend a workforce orientation that includes information on options available to allow them to enter the Texas workforce.(2) Work First Design.(A) The work first design:(i) allows Choices participants to take immediate advantage of the labor market and secure employment, which is critical due to individual time-limited benefits; and(ii) meets the needs of employers by linking Choices participants with skills that match those job requirements identified by the employer.(B) Boards shall provide Choices participants access to other services and activities available through the One-Stop Service Delivery System, which includes WOA, to assist with employment in the labor market before certification for TANF cash assistance.(C) Post-employment services shall be provided in order to assist a Choices participant's progress toward self-sufficiency as described in §811.4(a)(1) of this subchapter and §811.51 of this chapter.(D) In order to assist a Choices-eligible individual's progress toward self-sufficiency:(i) Boards shall provide Choices-eligible individuals who are employed, including mandatory Choices participants coded by HHSC as working at least 30 hours per week, earning at least $700 per month, and receiving the EID, with information on available post-employment services; or(ii) Boards may provide Choices-eligible individuals with post-employment services as determined by Board policy. The length of time these services may be provided is subject to §811.51 of this chapter.(E) In order to assist employers, Boards shall coordinate with local employers to address needs related to:(i) employee post-employment education or training;(ii) employee child care, transportation, or other support services available to obtain and retain employment; and(iii) employer tax credits.(F) Boards shall ensure that a family employment plan is based on employer needs, individual skills and abilities, and individual time limits for TANF cash assistance.(3) Post-Employment Services. A Board shall ensure that post-employment services are designed to assist Choices participants with job retention, career advancement, and reemployment, as defined in §811.51 of this chapter. Post-employment services are a continuum in the Choices service strategy to support a Choices participant's job retention, wage gains, career progression, and progression to self-sufficiency.(4) Adult Services. A Board shall ensure that services for adults shall include activities individually designed to lead to employment and self-sufficiency as quickly as possible.(5) Teen Services. A Board shall ensure that services for teen heads of household shall include secondary school, as defined in §811.2(18) of this subchapter, and making the transition from school to employment, as described in §811.30 and §811.50 of this chapter.(6) Choices-Eligible Individuals with Disabilities. A Board shall ensure that services for Choices-eligible individuals with disabilities include reasonable accommodations to allow the Choices-eligible individuals to access and participate in services, where applicable by law.(7) Target Populations. A Board shall ensure that services are concentrated, as further defined in §811.4(d)(5) of this subchapter and §811.11(d) of this chapter, on the needs of recipients who:(A) have six months or less remaining of their state TANF time limit, irrespective of any extension of time due to a hardship exemption;(B) have 12 months or less remaining of their 60-month federal TANF time limit, irrespective of any extension of time due to a hardship exemption; and(C) are extended TANF recipients.(8) Local Flexibility. A Board may develop additional service strategies that are consistent with the goal and purpose of this chapter and the One-Stop Service Delivery System.</content><note type="source"><p>Source Note: The provisions of this §811.3 adopted to be effective November 18, 2003, 28 TexReg 10261; amended to be effective February 26, 2007, 32 TexReg 906; amended to be effective September 29, 2008, 33 TexReg 8192; amended to be effective December 3, 2018, 43 TexReg 7801; amended to be effective May 20, 2024, 49 TexReg 3587.</p></note></section><section identifier="/us/state/tx/tac/t40/p20/c811/scA/s811.4"><num value="811.4">§811.4</num><heading>Policies, Memoranda of Understanding, and Procedures</heading><content>(a) A Board shall establish policies regarding the following:(1) A Choices service strategy, as defined in §811.3 of this subchapter, that coordinates various service delivery approaches to:(A) assist applicants and conditional applicants in gaining employment as an alternative to public assistance;(B) use a work first design as referenced in §811.3(b)(2) of this subchapter to provide Choices participants access to the labor market; and(C) assist former TANF recipients with job retention and career advancement in order to remain independent of TANF cash assistance;(2) Limits on the amount of funds per Choices participant and the maximum duration for subsidized employment and OJT placements; and(3) The methods and limitations for provision of work-related expenses.(b) A Board may establish optional policies that:(1) require the use of the Eligible Training Provider (ETP) statewide list and Individual Training Account (ITA) system as described in Chapter 840 of this title to provide training services for Choices participants and paid for with TANF funds; and(2) make post-employment services available to:(A) former TANF recipients who are denied TANF cash assistance because of earnings; and(B) sanctioned families and conditional applicants who obtain employment during their demonstrated cooperation period.(c) A Board shall ensure that the following memoranda of understanding (MOUs) and collaborative partnerships are developed:(1) Local-level MOUs with the appropriate agencies to serve Choices-eligible individuals with disabilities to maximize their potential for success in employment;(2) A local-level MOU with HHSC for providing mental health and substance abuse services to Choices participants; and(3) A collaborative partnership with housing authorities and sponsors of local housing programs and services to address the unmet housing needs of recipients.(d) A Board shall ensure that procedures are developed:(1) to ensure that job development services are available to Choices participants. These services include:(A) contacting local employers or industry associations to request that job openings be listed with Workforce Solutions Offices and other entities in the One-Stop Service Delivery System selected by the Board;(B) identifying the hiring needs of employers;(C) assisting an employer in creating new positions for Choices participants based on the job developer's and employer's analysis of the employer's business needs; and(D) finding opportunities with an employer for a specific Choices participant or a group of Choices participants;(2) to ensure that job placement services are available to Choices participants. Job placement services shall include:(A) identifying employers' workforce needs;(B) identifying Choices participants who have sufficient skills and abilities to be successfully linked with employment; and(C) matching the skills of the Choices participant pool to the hiring needs of local employers;(3) to notify applicants and conditional applicants--in conjunction with HHSC--on the availability of regularly scheduled WOAs and alternative WOAs;(4) to notify HHSC of applicants and conditional applicants who contacted a Workforce Solutions Office to request alternative WOAs;(5) to ensure that services are concentrated on Choices-eligible individuals approaching their state or federal time limit, as identified in §811.3(b)(7)(A) and (B) of this subchapter. Concentrated services may include targeted outreach, enhanced analysis of circumstances that may limit a Choices-eligible individual's ability to participate, and targeted job development; and(6) to determine a family's inability to obtain child care.(e) If a Board elects to establish one or more of the optional policies described in subsection (b) of this section, the Board must ensure that corresponding procedures are developed for those policies.</content><note type="source"><p>Source Note: The provisions of this §811.4 adopted to be effective September 29, 2008, 33 TexReg 8192; amended to be effective January 8, 2013, 38 TexReg 180; amended to be effective December 3, 2018, 43 TexReg 7801; amended to be effective May 20, 2024, 49 TexReg 3587.</p></note></section><section identifier="/us/state/tx/tac/t40/p20/c811/scA/s811.5"><num value="811.5">§811.5</num><heading>Documentation, Verification, and Supervision of Work Activities</heading><content>(a) A Board shall ensure that all required information related to the documentation and verification of participation in Choices work activities, as described in this section, is documented in the TWC case management system.(b) A Board shall ensure that all participation in Choices is verified and documented and that self-attestation is not allowed.(c) For Choices work activities, as described in §§811.42, 811.43, 811.44, and 811.50 of this chapter, Boards shall ensure that all participation is verified and documented in the TWC case management system at least monthly.(d) For educational services, as described in §811.50 of this chapter, for teen heads of household who have not completed secondary school or received a high school equivalency credential, Boards shall ensure that:(1) good or satisfactory progress, as determined by the educational institution, is verified and documented in the TWC case management system at least monthly;(2) all participation is supervised daily; and(3) all participation is verified and documented in the TWC case management system at least monthly.</content><note type="source"><p>Source Note: The provisions of this §811.5 adopted to be effective September 29, 2008, 33 TexReg 8192; amended to be effective January 8, 2013, 38 TexReg 180; amended to be effective May 20, 2024, 49 TexReg 3587.</p></note></section></subchapter><subchapter identifier="/us/state/tx/tac/t40/p20/c811/scB"><num value="B">SUBCHAPTER B</num><heading>CHOICES SERVICES RESPONSIBILITIES</heading><section identifier="/us/state/tx/tac/t40/p20/c811/scB/s811.11"><num value="811.11">§811.11</num><heading>Board Responsibilities</heading><content>(a) A Board shall ensure that:(1) WOA is offered frequently enough to allow applicants and conditional applicants to comply with the HHSC requirement that gives applicants and conditional applicants 10 calendar days from the date of their eligibility interview to attend a WOA;(2) during a regularly scheduled WOA or alternative WOA, applicants and conditional applicants are informed of:(A) employment services available through the One-Stop Service Delivery System to assist applicants and conditional applicants in achieving self-sufficiency without the need for TANF cash assistance;(B) benefits of becoming employed;(C) impact of time-limited benefits;(D) individual and parental responsibilities; and(E) other services and activities, including education and training, available through the One-Stop Service Delivery System, including services and referrals for services available to Choices-eligible individuals with disabilities;(3) alternative WOAs are developed that allow applicants and conditional applicants with extraordinary circumstances to receive the information listed in paragraph (2) of this subsection;(4) verification that applicants and conditional applicants attend a scheduled or alternative WOA is completed and HHSC is notified in accordance with HHSC rules (1 TAC, Part 15, Chapter 372, Temporary Assistance for Needy Families and Supplemental Nutrition Assistance Programs); and(5) applicants and conditional applicants are provided with an appointment to develop a family employment plan (FEP).(b) A Board shall ensure that:(1) Choices services are offered to applicants who attend a WOA; and(2) conditional applicants who attend a WOA are immediately scheduled to begin Choices services.(c) A Board shall ensure that a Choices participant's eligibility is verified monthly.(d) A Board shall ensure that all extended TANF recipients are outreached and offered the opportunity to participate in Choices activities.(e) A Board shall ensure that post-employment services, including job retention and career advancement services, are available to Choices-eligible individuals, including mandatory Choices participants coded by HHSC as working at least 30 hours per week, earning at least $700 per month, and receiving EID.(f) A Board shall ensure that monitoring of Choices program requirements is ongoing and frequent, as determined by the Board, unless otherwise specified in this chapter, and consists of the following:(1) ensuring receipt of support services;(2) tracking and reporting all support services and entering them into the TWC case management system at least monthly;(3) tracking and reporting actual hours of participation in Choices work activities, at least monthly, unless otherwise specified in this chapter;(4) determining and arranging for any intervention needed to assist the Choices participant in complying with Choices program requirements; and(5) ensuring that the Choices participant is progressing toward achieving the goals and objectives in the FEP.(g) A Board shall ensure that:(1) no fewer than four hours of training regarding family violence is provided to staff who:(A) provide information to Choices-eligible individuals;(B) request penalties or grant good cause; or(C) provide employment planning or employment retention services; and(2) Choices-eligible individuals who are identified as being victims of family violence are referred to an individual or an agency that specializes in issues involving family violence.(h) A Board shall ensure that documentation is obtained and maintained regarding all contact with Choices participants, including verification of participation hours, and data is entered into the TWC case management system.(i) A Board shall ensure that a referral program is developed to provide Choices-eligible individuals facing higher than average barriers to employment, as described in this chapter, with referrals to pre-employment and post-employment services offered by community-based and other organizations.</content><note type="source"><p>Source Note: The provisions of this §811.11 adopted to be effective November 18, 2003, 28 TexReg 10261; amended to be effective February 26, 2007, 32 TexReg 906; amended to be effective September 29, 2008, 33 TexReg 8192; amended to be effective January 8, 2013, 38 TexReg 180; amended to be effective December 3, 2018, 43 TexReg 7801; amended to be effective May 20, 2024, 49 TexReg 3587.</p></note></section><section identifier="/us/state/tx/tac/t40/p20/c811/scB/s811.12"><num value="811.12">§811.12</num><heading>Applicant and Conditional Applicant Responsibilities</heading><content>Applicants and conditional applicants are required to attend a scheduled or an alternative WOA, in accordance with HHSC rules (1 TAC, Chapter 372, Texas Works).</content><note type="source"><p>Source Note: The provisions of this §811.12 adopted to be effective November 18, 2003, 28 TexReg 10261; amended to be effective February 26, 2007, 32 TexReg 906.</p></note></section><section identifier="/us/state/tx/tac/t40/p20/c811/scB/s811.13"><num value="811.13">§811.13</num><heading>Responsibilities of Choices Participants</heading><content>(a) A Board shall ensure that Choices participants comply with the provisions contained in this section.(b) Choices participants shall:(1) accept a job offer at the earliest possible opportunity;(2) participate in or receive ancillary services necessary to enable Choices participants to work or participate in employment-related activities, including counseling, treatment, vocational or physical rehabilitation, and medical or health services;(3) report actual hours of participation in Choices work activities, including hours of employment; and(4) attend scheduled appointments.(c) Within two-parent families, Choices participants shall participate in assessment and family employment planning sessions and assigned employment and training activities as follows:(1) participate in Choices employment and training as specified in §811.25(b) - (c) of this chapter;(2) comply with all requirements specified in the FEP; and(3) sign a form that contains all the information identified in the Agency's Family Work Requirement form, as described in §811.24 of this chapter.(d) Within single-parent families, Choices participants shall participate in assessment and employment planning sessions and assigned employment and training activities as follows:(1) participate in Choices employment and training activities as specified in §811.25(a) of this chapter; and(2) comply with all requirements specified in the FEP.(e) A Board shall ensure that mandatory Choices participants coded by HHSC as working at least 30 hours per week, earning at least $700 per month, and receiving the EID:(1) report to the Board actual hours of work, as defined in §811.34 of this chapter; and(2) are provided with information on available post-employment services.</content><note type="source"><p>Source Note: The provisions of this §811.13 adopted to be effective November 18, 2003, 28 TexReg 10261; amended to be effective February 26, 2007, 32 TexReg 906; amended to be effective January 8, 2013, 38 TexReg 180; amended to be effective May 20, 2024, 49 TexReg 3587.</p></note></section><section identifier="/us/state/tx/tac/t40/p20/c811/scB/s811.14"><num value="811.14">§811.14</num><heading>Noncooperation</heading><content>(a) A Board shall ensure that cooperation by Choices participants is verified each month to ensure that the Choices participants:(1) comply with Choices program requirements as set forth in the FEP, as described in §811.23 of this chapter; or(2) have good cause as described in §811.16 of this subchapter.(b) If Choices participants have not cooperated with Choices program requirements and do not have good cause, a Board shall ensure that:(1) a penalty is requested for mandatory Choices participants; or(2) Choices services and support services, except Commission-funded child care, are terminated for exempt Choices participants; and(3) Choices child care is provided as needed, as specified in §809.45 of this title.(c) A Board shall ensure that timely and reasonable attempts, as defined by the Agency, are made to contact a mandatory Choices participant prior to requesting a penalty to:(1) determine the reason for noncooperation and whether good cause is applicable, as described in §811.16(c) of this subchapter;(2) inform the mandatory Choices participant of:(A) the violation if good cause has not been determined;(B) the right to appeal; and(C) the necessary procedures to demonstrate cooperation.(d) A Board shall ensure that timely and reasonable attempts, as defined by the Agency, are made to contact a sanctioned family and conditional applicants upon discovery of noncooperation during their demonstrated cooperation period to determine if good cause exists.(e) A Board shall ensure that the reasonable attempts to contact a mandatory Choices participant are documented in the TWC case management system.(f) A Board shall ensure that:(1) HHSC is notified of a mandatory Choices participant's failure to comply with Choices program requirements; and(2) the notification of noncooperation is submitted as early as possible in the same month in which the noncooperation occurs.</content><note type="source"><p>Source Note: The provisions of this §811.14 adopted to be effective November 18, 2003, 28 TexReg 10261; amended to be effective February 26, 2007, 32 TexReg 906; amended to be effective September 29, 2008, 33 TexReg 8192; amended to be effective January 8, 2013, 38 TexReg 180; amended to be effective December 3, 2018, 43 TexReg 7801; amended to be effective May 20, 2024, 49 TexReg 3587.</p></note></section><section identifier="/us/state/tx/tac/t40/p20/c811/scB/s811.15"><num value="811.15">§811.15</num><heading>Demonstrated Cooperation</heading><content>(a) Conditional applicants are required to demonstrate four consecutive weeks of cooperation to be eligible for TANF cash assistance.(b) Sanctioned families are required to demonstrate one month of cooperation to reinstate TANF cash assistance.(c) A Board shall ensure that HHSC is immediately notified if:(1) a sanctioned family denied TANF cash assistance because of one month of noncooperation has demonstrated full cooperation with Choices program requirements for the program month immediately following the program month in which the family noncooperated;(2) a conditional applicant whose TANF case is closed because of two or more months of noncooperation has demonstrated full cooperation with Choices program requirements for four consecutive weeks; or(3) a sanctioned family or conditional applicant has been granted good cause during the demonstrated cooperation period.</content><note type="source"><p>Source Note: The provisions of this §811.15 adopted to be effective November 18, 2003, 28 TexReg 10261; amended to be effective February 26, 2007, 32 TexReg 906; amended to be effective January 8, 2013, 38 TexReg 180.</p></note></section><section identifier="/us/state/tx/tac/t40/p20/c811/scB/s811.16"><num value="811.16">§811.16</num><heading>Good Cause for Choices Participants</heading><content>(a) Good cause applies to Choices participants. A Board shall ensure that good cause is determined as provided in this chapter.(b) A Board shall ensure that a good cause determination:(1) is based on individual and family circumstances;(2) is based on face-to-face or telephone contact;(3) covers a temporary period when Choices participants may be unable to attend scheduled appointments or participate in ongoing work activities;(4) is made at the time the change in circumstances is made known to the Board's service provider; and(5) is conditional upon efforts to address circumstances that limit the ability to participate in Choices services as required in the family employment plan.(c) The following reasons may constitute good cause for purposes of this chapter:(1) Temporary illness or incapacitation;(2) Choices participants with disabilities or caring for a disabled family member who participate to the extent determined able, as supported by medical documentation, but less than the required participation hours, as set forth in §811.25(b) - (d) and §811.31(b);(3) Court appearance;(4) Caring for a disabled family member who requires the Choices participant's presence in the home. Boards shall ensure the need for such care is supported by medical documentation;(5) A demonstration that there is:(A) no available transportation and the distance prohibits walking; or(B) no available job within reasonable commuting distance, as defined by the Board;(6) An inability to obtain needed child care, as defined by the Board and based on the following reasons:(A) Informal child care by a relative or under other arrangements is unavailable or unsuitable. Informal child care may also be determined unsuitable by the parent;(B) Eligible child care providers are unavailable, as defined in Chapter 809 of this title;(C) Affordable child care arrangements within maximum rates established by the Board are unavailable; and(D) Appropriate child care within a reasonable distance from home or the work site is unavailable;(7) An absence of other support services necessary for participation;(8) Receipt of a job referral that results in an offer below the federal minimum wage, except when a lower wage is permissible under federal minimum wage law;(9) An individual or family crisis or a family circumstance that may preclude participation, including substance abuse, mental health, and disability-related issues, provided the Choices participant engages in problem resolution through appropriate referrals for counseling and support services; or(10) A Choices participant is a victim of family violence.(d) A Board shall ensure that mandatory Choices participants in single-parent families caring for children under age six are informed of:(1) the penalty exception to the family work requirement, including the criteria and applicable definitions for determining whether a mandatory Choices participant has demonstrated an inability to obtain needed child care, as defined in subsection (c)(6)(A) - (D) of this section.(2) a Board's policy and procedures for determining a family's inability to obtain needed child care, and any other requirements or procedures, such as fair hearings, associated with this provision, as required by 45 C.F.R. §261.56.(e) A Board shall ensure that good cause:(1) is reevaluated at least on a monthly basis;(2) is extended if the circumstances giving rise to the good cause exception are not resolved after available resources to remedy the situation have been considered;(3) that is based on the existence of family violence does not exceed a total of twelve consecutive months per occurrence; and(4) is determined separately from granting Choices participants short-term excused absences from participation, as defined in §811.34(2).</content><note type="source"><p>Source Note: The provisions of this §811.16 adopted to be effective November 18, 2003, 28 TexReg 10261; amended to be effective February 26, 2007, 32 TexReg 906; amended to be effective September 29, 2008, 33 TexReg 8192.</p></note></section></subchapter><subchapter identifier="/us/state/tx/tac/t40/p20/c811/scC"><num value="C">SUBCHAPTER C</num><heading>CHOICES SERVICES</heading><section identifier="/us/state/tx/tac/t40/p20/c811/scC/s811.21"><num value="811.21">§811.21</num><heading>General Provisions</heading><content>(a) A Board shall ensure that services are available to assist Choices-eligible individuals with obtaining employment as quickly as possible and, if employed, with retaining employment. These services may include:(1) job readiness and job search-related services;(2) work-based services;(3) post-employment services;(4) education and training services as described in this chapter; and(5) support services.(b) A Board shall ensure that employment and training activities are conducted in compliance with the Fair Labor Standards Act (FLSA) as specified in §811.29.(c) A Board shall ensure that placement in work-based services does not result in the displacement of currently employed workers or impair existing contracts for services or collective bargaining agreements.(d) A Board shall ensure that job development services identify, at a minimum, job openings for current mandatory Choices participants.</content><note type="source"><p>Source Note: The provisions of this §811.21 adopted to be effective November 18, 2003, 28 TexReg 10261; amended to be effective February 26, 2007, 32 TexReg 906; amended to be effective September 29, 2008, 33 TexReg 8192; amended to be effective December 3, 2018, 43 TexReg 7801.</p></note></section><section identifier="/us/state/tx/tac/t40/p20/c811/scC/s811.22"><num value="811.22">§811.22</num><heading>Assessment</heading><content>(a) A Board shall ensure that initial and ongoing assessments are performed to determine the employability and retention needs, including wage advancement and career development needs, of Choices participants as follows:(1) An assessment is required for Choices participants who are:(A) at least age 18; or(B) heads of household, as determined by HHSC, who are not yet age 18, have not completed secondary school or received a high school equivalency credential, and are not attending secondary school.(2) An assessment shall be provided to applicants who choose to participate in Choices services.(3) Ongoing assessments shall be provided to former recipients who choose to participate in Choices services.(b) Assessments shall include evaluations of strengths and potential barriers to obtaining and retaining employment, such as:(1) skills and abilities, employment, and educational history in relation to employers' workforce needs in the local labor market;(2) pre- and post-employment skills development needs to determine the necessity for job-specific training;(3) unmet housing needs and whether those needs are a barrier to full participation in the workforce and progression to self-sufficiency;(4) support services needs; and(5) individual and family circumstances that may affect participation, including the existence of family violence, substance use that impairs daily life, mental health, or disability-related issues, as one of the factors considered in evaluating employability.(c) A Board shall ensure that the assessment identifies Choices-eligible individuals with higher-than-average barriers to employment, as defined by the Board.(d) A Board shall ensure that if the skills assessment indicates that a Choices participant requires job-specific training for placement in a job paying wages that equal or exceed the Board's identified self-sufficiency wage, the Board shall, to the extent funds are available and to the extent allowed under this chapter, place the Choices participant in vocational educational training activities or job skills training activities that are designed to improve employment and wage outcomes and job retention.(e) A Board shall ensure that mandatory Choices participants who are at least age 18, or who are heads of household but are not yet age 18 and have not completed secondary school or received a high school equivalency credential and are not attending secondary school:(1) The assessments shall also include evaluations of the mandatory Choices participants':(A) vocational and educational skills, experience, and needs; and(B) functional educational level by using a statewide standard literacy assessment instrument unless the Choices participants are mandatory Choices participants coded by HHSC as working at least 30 hours per week, earning at least $700 per month, and receiving the EID.(2) A Board shall ensure that the grade-level results or other literacy information are provided to HHSC for use in determining the appropriateness of the initial state time-limit designation for TANF cash assistance as described in Texas Human Resources Code §31.0065, relating to state time-limited benefits.(f) Assessment Outcome. Assessments shall result in the development of a family employment plan, as described in §811.23 of this subchapter.</content><note type="source"><p>Source Note: The provisions of this §811.22 adopted to be effective November 18, 2003, 28 TexReg 10261; amended to be effective February 26, 2007, 32 TexReg 906; amended to be effective December 3, 2018, 43 TexReg 7801; amended to be effective May 20, 2024, 49 TexReg 3587.</p></note></section><section identifier="/us/state/tx/tac/t40/p20/c811/scC/s811.23"><num value="811.23">§811.23</num><heading>Family Employment Plan</heading><content>(a) Boards must ensure that prior to the development of an FEP Choices participants receive general information about services provided through the One-Stop Service Delivery Network that will assist them in obtaining employment, if the Choices participants did not receive this information during the WOA.(b) FEPs are required for all Choices participants.(c) FEPs shall be developed with applicants and former recipients who choose to participate in Choices services.(d) A Board shall ensure that an FEP is developed during the assessment and:(1) is based on assessments, as described in §811.22;(2) contains the goal of self-sufficiency through employment to meet the needs of the local labor market;(3) contains the steps and services to achieve the goal, including:(A) connecting the Choices participant immediately to the local labor market;(B) addressing potential barriers that limit the Choices participant's ability to work or participate in activities;(C) arranging support services for the Choices participant or the family to address circumstances that limit the Choices participant's ability to work or participate, including services for substance abuse, mental health, family violence, and disability-related issues;(D) developing specific post-employment service strategies with methods and time frames for reaching the goal of an identified self-sufficiency wage; and(E) requiring Choices participants to notify the Board's service provider of changes in family circumstances that may preclude participation in Choices services;(4) is signed by the Choices participant--unless the Choices participant is a mandatory Choices participant coded by HHSC as working at least 30 hours per week, earning at least $700 per month, and receiving the EID--and a Board's service provider;(5) assigns required hours and sets forth the participation agreement for compliance with Choices program requirements. FEPs for two-parent families must include a description of how the required hours of participation will be distributed between one or both adults in the two-parent household; and(6) provides information about the penalty process, good cause process, right of appeal, and the importance of immediately contacting a case manager should individual or family circumstances arise that prevent participation.(e) A Board shall regularly ensure that progress toward meeting the goals of the FEP is evaluated and the FEP is modified as appropriate to meet job seeker and employer needs in the local labor market.</content><note type="source"><p>Source Note: The provisions of this §811.23 adopted to be effective November 18, 2003, 28 TexReg 10261; amended to be effective February 26, 2007, 32 TexReg 906; amended to be effective January 8, 2013, 38 TexReg 180.</p></note></section><section identifier="/us/state/tx/tac/t40/p20/c811/scC/s811.24"><num value="811.24">§811.24</num><heading>Family Work Requirement Form for Two-Parent Families</heading><content>A Board shall ensure that a Family Work Requirement form is developed for all two-parent families that:(1) contains an agreement by both adults in the family to comply with the family work requirements through distribution of required hours of participation between one or both adults in the two-parent family; and(2) is signed by the adults in the household that are required to participate in Choices services, unless the Choices participants:(A) are mandatory Choices participants who are temporarily unable to sign the form, such as a Choices participant who is temporarily unavailable; or(B) are mandatory Choices participants coded by HHSC as working at least 30 hours per week, earning at least $700 per month, and receiving the EID whose only participation requirement is to report their hours of employment.</content><note type="source"><p>Source Note: The provisions of this §811.24 adopted to be effective November 18, 2003, 28 TexReg 10261; amended to be effective February 26, 2007, 32 TexReg 906.</p></note></section><section identifier="/us/state/tx/tac/t40/p20/c811/scC/s811.25"><num value="811.25">§811.25</num><heading>TANF Participation Requirements</heading><content>(a) Choices participants in a single-parent family are required to participate for at least a minimum weekly average of 30 hours.(b) Choices participants in two-parent families who are not receiving Commission-funded child care are required to have one or both adults in the family participate for at least a minimum weekly average of 35 hours.(c) Choices participants in two-parent families who are receiving Commission-funded child care are required to have one or both adults in the family participate for at least a minimum weekly average of 55 hours.</content><note type="source"><p>Source Note: The provisions of this §811.25 adopted to be January 8, 2013, 38 TexReg 180.</p></note></section><section identifier="/us/state/tx/tac/t40/p20/c811/scC/s811.29"><num value="811.29">§811.29</num><heading>Special Provisions Regarding the Fair Labor Standards Act</heading><content>(a) A Board shall ensure that employment and training activities are conducted in compliance with FLSA as follows.(1) The amount of time per week that a Choices participant may be required to participate in activities that are not exempt from minimum wage and overtime under FLSA shall be determined by the TANF cash assistance and SNAP benefits amount being divided by the minimum wage, so that the amount paid to the Choices participant is equal to or more than the amount required for payment of wages, including minimum wage and overtime; or(2) The amount of time per week that a sanctioned family or conditional applicant may be required to participate in activities that are not exempt from minimum wage and overtime under FLSA shall be determined by the SNAP benefits amount being divided by the minimum wage, so that the amount paid to the sanctioned family is equal to or more than the amount required for payment of wages, including minimum wage and overtime; and(3) If a Board provides activities that meet all of the following categories, the activity is considered training under FLSA and minimum wage and overtime are not required:(A) The training is similar to that given in a vocational school;(B) The training is for the benefit of the trainees;(C) The trainees do not displace regular employees;(D) The employers derive no immediate advantage from trainees' activities;(E) The trainees are not entitled to a job after training is completed; and(F) The employers and trainees understand that trainees are not paid.(b) The number of hours that a Choices participant is required to participate in community service or another unpaid work activity shall be determined in compliance with FLSA as described in subsection (a) of this section. If a Choices participant's hours of community service or other unpaid work activity are not sufficient to meet the participation requirement as set forth in §811.25(a) - (c), the Choices participant shall be enrolled in additional non-FLSA-covered activities.</content><note type="source"><p>Source Note: The provisions of this §811.29 adopted to be effective February 26, 2007, 32 TexReg 906; amended to be effective September 29, 2008, 33 TexReg 8192; amended to be effective January 8, 2013, 38 TexReg 180.</p></note></section><section identifier="/us/state/tx/tac/t40/p20/c811/scC/s811.30"><num value="811.30">§811.30</num><heading>Special Provisions for Teen Heads of Household</heading><content>(a) A Board shall ensure that teen heads of household who have not completed secondary school or received a high school equivalency credential are enrolled in educational activities as defined in §811.50 of this chapter.(b) Teen heads of household who have not completed secondary school or received a high school equivalency credential count as engaged in work if they:(1) maintain satisfactory attendance at a secondary school or the equivalent during months in which school is in session;(2) participate in allowable activities, as described in §811.25 of this subchapter, during months in which school is not in session;(3) participate in education directly related to employment for at least an average of 20 hours per week during the month; or(4) participate in Choices employment and training activities as described in §811.25 of this subchapter.</content><note type="source"><p>Source Note: The provisions of this §811.30 adopted to be effective February 26, 2007, 32 TexReg 906; amended to be effective May 20, 2024, 49 TexReg 3587.</p></note></section><section identifier="/us/state/tx/tac/t40/p20/c811/scC/s811.31"><num value="811.31">§811.31</num><heading>Special Provisions for Choices Participants in Single-Parent Families with Children under Age Six</heading><content>(a) A Board shall ensure that Choices participants in single-parent families with children under age six are notified of the penalty exception to Choices participation as described in §811.16(d).(b) A Choices participant in a single-parent family with children under age six shall count as meeting participation requirements if he or she participates in Choices activities for at least an average of 20 hours per week.</content><note type="source"><p>Source Note: The provisions of this §811.31 adopted to be effective February 26, 2007, 32 TexReg 906; amended to be effective January 8, 2013, 38 TexReg 180.</p></note></section><section identifier="/us/state/tx/tac/t40/p20/c811/scC/s811.32"><num value="811.32">§811.32</num><heading>Special Provisions Regarding Exempt Choices Participants and Choices Participants with Reduced Work Requirements</heading><content>(a) A Board may provide Choices services or support services as set forth in this subchapter to exempt Choices participants who participate to the extent determined able, as supported by medical documentation, but less than the required participation hours.(b) A Board shall ensure that a penalty is not requested for:(1) exempt Choices participants;(2) Choices participants with disabilities who participate to the extent determined able, as supported by medical documentation, but less than the required participation hours, as specified in §811.25(a) - (c) and §811.31(b); or(3) Choices participants who are caring for a disabled family member, as supported by medical documentation, when the Choices participant participates to the extent determined able, but less than the required participation hours, as specified in §811.25(a) - (c) and §811.31(b).</content><note type="source"><p>Source Note: The provisions of this §811.32 adopted to be effective February 26, 2007, 32 TexReg 906; amended to be effective January 8, 2013, 38 TexReg 180.</p></note></section><section identifier="/us/state/tx/tac/t40/p20/c811/scC/s811.34"><num value="811.34">§811.34</num><heading>Participation Provisions</heading><content>A Board shall count only actual hours of participation in Choices work activities as allowable work participation hours with the following exceptions, unless otherwise specified in this chapter:(1) For work activities set forth in §§811.42 - 811.44, Boards may count paid holidays or other paid leave as actual participation hours.(2) For self-employment, Boards shall not count more hours toward the work participation rate for a self-employed Choices participant than the number derived from dividing the participant's net self-employment income (gross self-employment earnings minus business expenses) by the federal minimum wage.</content><note type="source"><p>Source Note: The provisions of this §811.34 adopted to be effective February 26, 2007, 32 TexReg 906; amended to be effective September 29, 2008, 33 TexReg 8192; amended to be effective January 8, 2013, 38 TexReg 180.</p></note></section></subchapter><subchapter identifier="/us/state/tx/tac/t40/p20/c811/scD"><num value="D">SUBCHAPTER D</num><heading>CHOICES ACTIVITIES</heading><section identifier="/us/state/tx/tac/t40/p20/c811/scD/s811.41"><num value="811.41">§811.41</num><heading>Choices Work Activities</heading><content>(a) For purposes of the work participation rate, a Choices participant is considered to be engaged in work by participating in:(1) unsubsidized employment, as specified in §811.42;(2) subsidized employment, as specified in §811.43;(3) OJT, as specified in §811.44; or(4) educational services for Choices participants who have not completed secondary school or received a GED, as specified in §811.30.(b) Educational services, as specified in subsection (a)(4) of this section, are limited to teen heads of household, as specified in §811.30.(c) Boards may use any other Choices activity set forth in §811.52 that would reasonably be expected to assist Choices participants in obtaining and retaining employment.</content><note type="source"><p>Source Note: The provisions of this §811.41 adopted to be effective January 8, 2013, 38 TexReg 180.</p></note></section><section identifier="/us/state/tx/tac/t40/p20/c811/scD/s811.42"><num value="811.42">§811.42</num><heading>Unsubsidized Employment</heading><content>(a) Unsubsidized employment includes the following:(1) full-time or part-time employment, in which wages are paid in full by the employer;(2) unsubsidized internship with wages paid by the internship employer; and(3) self-employment.(b) Self-employment is defined as an income-producing enterprise that will lead an individual on a clear pathway to self-sufficiency by lessening the family's reliance on public benefits.</content><note type="source"><p>Source Note: The provisions of this §811.42 adopted to be effective November 18, 2003, 28 TexReg 10261; amended to be effective February 26, 2007, 32 TexReg 906; amended to be effective January 8, 2013, 38 TexReg 180.</p></note></section><section identifier="/us/state/tx/tac/t40/p20/c811/scD/s811.43"><num value="811.43">§811.43</num><heading>Subsidized Employment</heading><content>(a) Subsidized employment is full-time or part-time employment that is subsidized in full or in part and complies with this section. Subsidized employment may occur in either the private sector or public sector. A Board shall not be the employer of record for Choices participants enrolled in a subsidized employment activity. Subsidized employment includes but is not limited to the following:(1) subsidized internship with a portion of the Choices participant's wages subsidized;(2) subsidized employment with a staffing agency acting as the employer of record; and(3) subsidized employment with the actual employer acting as the employer of record.(b) Wages.(1) Wages shall be at least federal or state minimum wage, whichever is higher.(2) Employers must provide the same wages and benefits to subsidized employees as for unsubsidized employees with similar skills, experience, and position.(c) Boards shall ensure subsidized employment placements prepare and move Choices participants into unsubsidized employment.(d) Boards shall ensure subsidized employment placements are allotted to employers who expect to retain Choices participants as regular unsubsidized employees once the subsidized placement has ended, unless successful completion of the placement is expected to result in unsubsidized employment with a different employer.</content><note type="source"><p>Source Note: The provisions of this §811.43 adopted to be effective November 18, 2003, 28 TexReg 10261; amended to be effective February 26, 2007, 32 TexReg 906; amended to be effective September 29, 2008, 33 TexReg 8192; amended to be effective January 8, 2013, 38 TexReg 180.</p></note></section><section identifier="/us/state/tx/tac/t40/p20/c811/scD/s811.44"><num value="811.44">§811.44</num><heading>On-the-Job Training</heading><content>(a) OJT is training in the public or private sector for a paid employee while he or she is engaged in productive work that provides knowledge and skills essential to the full and adequate performance of the job.(b) A Board shall ensure that a determination is made on a case-by-case basis whether to authorize, arrange, or refer a Choices participant for subsidized, time-limited training activities, to assist the Choices participant with obtaining knowledge and skills that are essential to the workplace while in a job setting. OJT is training by an employer that is provided to a Choices participant on or off the work site while engaged in productive work in a job that:(1) provides knowledge or skills essential to the full and adequate performance of the job;(2) provides reimbursement to the employer of a percent of the wage rate of the Choices participant for the extraordinary costs of providing the training and additional supervision related to the training;(3) is limited in duration as appropriate to the occupation for which the Choices participant is being trained, taking into account the content of the training, the prior work experience of the Choices participant, and the service strategy of the Choices participant, as appropriate; and(4) includes training specified by the employer.(c) A Board shall not contract with employers who have previously exhibited a pattern of failing to provide Choices participants in OJT with continued long-term employment, which provides wages, benefits, and working conditions that are equal to those that are provided to regular employees who have worked a similar length of time and are doing a similar type of work.(d) Boards shall ensure OJT placements are allotted to employers who expect to retain Choices participants as regular unsubsidized employees once the OJT placement has ended, unless successful completion of the placement is expected to result in unsubsidized employment with a different employer.</content><note type="source"><p>Source Note: The provisions of this §811.44 adopted to be effective November 18, 2003, 28 TexReg 10261; amended to be effective February 26, 2007, 32 TexReg 906; amended to be effective September 29, 2008, 33 TexReg 8192; amended to be effective January 8, 2013, 38 TexReg 180.</p></note></section><section identifier="/us/state/tx/tac/t40/p20/c811/scD/s811.50"><num value="811.50">§811.50</num><heading>Educational Services for Choices Participants Who Have Not Completed Secondary School or Received a High School Equivalency Credential</heading><content>(a) Educational services are only available for Choices participants who have not completed secondary school or who have not received a high school equivalency credential.(b) A Board shall ensure that a determination is made, on a case-by-case basis, whether to authorize, arrange, or refer Choices participants who are age 20 and older for any of the following educational or other training services:(1) secondary school, as defined in §811.2(18) of this chapter, when required as a prerequisite for employment;(2) Adult Basic Education (ABE), language instruction, or literacy instruction; or(3) other educational activities that are directly related to employment.(c) A Board shall ensure educational services related to employment directly provide education, knowledge, and skills for specific occupations, work settings, jobs, or job offers.</content><note type="source"><p>Source Note: The provisions of this §811.50 adopted to be effective November 18, 2003, 28 TexReg 10261; amended to be effective February 26, 2007, 32 TexReg 906; amended to be effective September 29, 2008, 33 TexReg 8192; amended to be effective January 8, 2013, 38 TexReg 180; amended to be effective May 20, 2024, 49 TexReg 3587.</p></note></section><section identifier="/us/state/tx/tac/t40/p20/c811/scD/s811.51"><num value="811.51">§811.51</num><heading>Post-Employment Services</heading><content>(a) A Board shall ensure that post-employment services, which include job retention, career advancement, and reemployment services, are offered to Choices participants who are employed, and to applicants, conditional applicants, and former recipients who have obtained employment but require additional assistance in retaining employment and achieving self-sufficiency.(b) A Board shall ensure that post-employment services are monitored, and ensure that hours of employment are required and reported by Choices participants for at least the length of time the Choices participants receive TANF cash assistance.(c) A Board shall ensure that ongoing contact is established with Choices-eligible individuals receiving post-employment services at least monthly.(d) A Board may include mentoring techniques as part of a post-employment strategy.(e) The post-employment services may include the following:(1) assistance and support for the transition into employment through direct services or referrals to resources available in the workforce area;(2) child care, if needed, as specified in rules at Chapter 809 of this title;(3) work-related expenses, including those identified in §811.64;(4) transportation, if needed;(5) job search, job placement, and job development services to help a former recipient who loses a job to obtain employment;(6) referrals to available education or training resources to increase an employed Choices-eligible individual's skills or to help the individual qualify for advancement and long-term employment goals;(7) additional career planning and counseling; or(8) referral to support services available in the community.(f) The maximum length of time a former recipient, conditional applicant, and sanctioned family may receive services under this section is dependent upon:(1) family circumstances;(2) the risk of returning to public assistance. A person is considered at risk of returning to TANF cash assistance if he or she is a SNAP recipient, or receives Commission-funded child care;(3) the ongoing need for these services; and(4) the availability of funds for these services.(g) Post-employment service providers may include employers, community colleges, technical colleges, career schools and colleges, faith-based and community-based organizations.</content><note type="source"><p>Source Note: The provisions of this §811.51 adopted to be effective November 18, 2003, 28 TexReg 10261; amended to be effective February 26, 2007, 32 TexReg 906; amended to be effective September 29, 2008, 33 TexReg 8192; amended to be effective January 8, 2013, 38 TexReg 180; amended to be effective December 3, 2018, 43 TexReg 7801.</p></note></section><section identifier="/us/state/tx/tac/t40/p20/c811/scD/s811.52"><num value="811.52">§811.52</num><heading>Other Choices Activities</heading><content>Boards may provide any of the following activities, without restriction, if the activities are reasonably expected to assist Choices participants in obtaining and retaining employment:(1) Job readiness and job search assistance, as defined in §811.2(11) and (12), respectively;(2) Community service, as defined in §811.2(4);(3) Work experience, as defined in §811.2(24);(4) Vocational educational training, as defined in §811.2(21);(5) Job skills training, as defined in §811.2(13); and(6) Post-employment services, as set forth in §811.51.</content><note type="source"><p>Source Note: The provisions of this §811.52 adopted to be effective January 8, 2013, 38 TexReg 180.</p></note></section></subchapter><subchapter identifier="/us/state/tx/tac/t40/p20/c811/scE"><num value="E">SUBCHAPTER E</num><heading>SUPPORT SERVICES AND OTHER INITIATIVES</heading><section identifier="/us/state/tx/tac/t40/p20/c811/scE/s811.61"><num value="811.61">§811.61</num><heading>Support Services</heading><content>(a) A Board shall ensure that support services as specified in this subchapter are provided, if needed, to Choices participants to address barriers to employment or participation in Choices services, subject to availability of resources and funding. A Board shall ensure that support services provided to Choices participants are coordinated with the employer, when appropriate.(b) A Board shall ensure that support services, except Commission-funded child care, are not provided to Choices participants who fail to meet Choices program requirements set forth in §811.13, Subchapter B of this chapter. Commission-funded child care must be provided as set forth in §809.45 of this title. In applying this provision, a Board shall ensure that support services are provided to Choices participants if it is determined that support services are needed to comply with Choices program requirements set forth in §811.13, Subchapter B of this chapter.(c) A Board shall ensure that:(1) support services, except Commission-funded child care, are terminated immediately upon a determination of failure to meet Choices program requirements by Choices participants unless otherwise determined by the Board's service provider as referenced in subsection (b) of this section; and(2) Choices child care is provided as needed, as specified in §809.45 of this title.(d) A Board shall ensure that support services, classified as cash assistance, for:(1) applicants and former recipients do not extend beyond four months for those who are unemployed and not receiving TANF cash assistance; and(2) unemployed conditional applicants and sanctioned families do not extend beyond their demonstrated cooperation period.</content><note type="source"><p>Source Note: The provisions of this §811.61 adopted to be effective November 18, 2003, 28 TexReg 10261; amended to be effective February 26, 2007, 32 TexReg 906; amended to be effective January 8, 2013, 38 TexReg 180; amended to be effective December 3, 2018, 43 TexReg 7801.</p></note></section><section identifier="/us/state/tx/tac/t40/p20/c811/scE/s811.62"><num value="811.62">§811.62</num><heading>Child Care for Choices Eligibles</heading><content>(a) A Board shall ensure that child care is provided if needed, as specified in Chapter 809 of this title.(b) Transitional child care is provided as needed, as specified in §809.48 of this title.(c) Choices child care is provided as needed, as specified in §809.45 of this title.(d) TANF Applicant child care is provided as needed, as specified in §809.46 of this title.</content><note type="source"><p>Source Note: The provisions of this §811.62 adopted to be effective November 18, 2003, 28 TexReg 10261; amended to be effective February 26, 2007, 32 TexReg 906.</p></note></section><section identifier="/us/state/tx/tac/t40/p20/c811/scE/s811.63"><num value="811.63">§811.63</num><heading>Transportation</heading><content>A Board shall ensure that transportation assistance shall:(1) be provided if needed to enable a Choices individual to work, attend, and participate in required Choices services, or access necessary support services if alternative transportation resources are not available; and(2) use the most economical means of transportation that meets the Choices individual's needs.</content><note type="source"><p>Source Note: The provisions of this §811.63 adopted to be effective November 18, 2003, 28 TexReg 10261.</p></note></section><section identifier="/us/state/tx/tac/t40/p20/c811/scE/s811.64"><num value="811.64">§811.64</num><heading>Work-Related Expenses</heading><content>(a) If other resources are not available, work-related expenses necessary for Choices individuals to accept or retain specific and verified job offers that pay at least the federal minimum wage may be provided or reimbursed.(b) Work-related expenses may include: tools, uniforms, equipment, transportation, car repairs, housing or moving expenses, and the cost of vocationally required examinations or certificates.</content><note type="source"><p>Source Note: The provisions of this §811.64 adopted to be effective November 18, 2003, 28 TexReg 10261; amended to be effective September 29, 2008, 33 TexReg 8192.</p></note></section><section identifier="/us/state/tx/tac/t40/p20/c811/scE/s811.65"><num value="811.65">§811.65</num><heading>Wheels to Work</heading><content>(a) The Agency may develop a Wheels to Work initiative in which local nonprofit organizations provide automobiles for Choices-eligible individuals who have obtained employment but are unable to accept or retain the employment solely because of a lack of transportation.(b) A Board may, through local policies and procedures, establish services to assist Choices-eligible individuals who verify the need for an automobile to accept or retain employment by referring them to available providers.(c) Persons or organizations donating automobiles under a Wheels to Work initiative shall receive a charitable donation receipt for federal income tax purposes.</content><note type="source"><p>Source Note: The provisions of this §811.65 adopted to be effective November 18, 2003, 28 TexReg 10261; amended to be effective February 26, 2007, 32 TexReg 906; amended to be effective December 3, 2018, 43 TexReg 7801; amended to be effective May 20, 2024, 49 TexReg 3587.</p></note></section><section identifier="/us/state/tx/tac/t40/p20/c811/scE/s811.66"><num value="811.66">§811.66</num><heading>High School Equivalency Credential Testing Payments</heading><content>A Board shall ensure that the cost of high school equivalency credential testing and issuance is paid through direct payments to the high school equivalency credential test centers and the Texas Education Agency for Choices participants referred for testing by a Board's provider of Choices services.</content><note type="source"><p>Source Note: The provisions of this §811.66 adopted to be effective November 18, 2003, 28 TexReg 10261; amended to be effective February 26, 2007, 32 TexReg 906; amended to be effective May 20, 2024, 49 TexReg 3587.</p></note></section><section identifier="/us/state/tx/tac/t40/p20/c811/scE/s811.67"><num value="811.67">§811.67</num><heading>Individual Development Accounts</heading><content>(a) A Board may set local policy and procedures to provide for implementation and oversight of Individual Development Accounts (IDAs) under this section using TANF funds in accordance with 45 C.F.R. §§263.20 - 263.23. An IDA means an account established by, or for, an eligible individual to allow the individual to accumulate funds for specific purposes.(b) A Board shall ensure that any IDAs created and matched with TANF funds are established and administered through a contract with a private nonprofit entity or through a state or local government entity acting in cooperation with a private nonprofit entity. The private nonprofit entity, or cooperating state or local entity, must coordinate with a financial institution in administering the accounts.(c) Choices participants may be eligible for IDAs if all of the requirements of this section are met.(d) IDAs may be established for an eligible individual, and may be contributed to with the individual's earned income and up to fifty percent of the individual's federal Earned Income Tax Credit refund. Federal Earned Income Tax Credit refunds shall not be matched with TANF funds.(e) Federal TANF funds, as well as public or private funds, may be used to provide matching funds for qualified expenses and to administer IDAs, and shall be expended in a manner consistent with applicable federal and state statutes and regulations, with the exception of federal Earned Income Tax Credit refunds.(f) Use of funds in an individual's IDA, shall be in accordance with the Social Security Act §404(h) (42 U.S.C. §604(h)) and 45 C.F.R. §§263.20 - 263.23 and limited to expenses related to:(1) postsecondary educational expenses;(2) first home purchase; or(3) business capitalization.(g) A Board shall ensure that only qualified withdrawals are made by eligible individuals, and must develop policies and procedures to address unauthorized withdrawals, to include notification:(1) to the individual that unauthorized withdrawals may impact the individual's eligibility for public assistance programs;(2) to the individual of forfeiture of the entitlement to the matching funds for an unauthorized withdrawal; and(3) to HHSC within seven working days of the unauthorized withdrawal.</content><note type="source"><p>Source Note: The provisions of this §811.67 adopted to be effective November 18, 2003, 28 TexReg 10261; amended to be effective February 26, 2007, 32 TexReg 906.</p></note></section></subchapter></chapter><chapter identifier="/us/state/tx/tac/t40/p20/c813"><num value="813">CHAPTER 813</num><heading>SUPPLEMENTAL NUTRITION ASSISTANCE PROGRAM EMPLOYMENT AND TRAINING</heading><subchapter identifier="/us/state/tx/tac/t40/p20/c813/scA"><num value="A">SUBCHAPTER A</num><heading>GENERAL PROVISIONS</heading><section identifier="/us/state/tx/tac/t40/p20/c813/scA/s813.1"><num value="813.1">§813.1</num><heading>Purpose</heading><content>The purpose of Supplemental Nutrition Assistance Program Employment and Training (SNAP E&T) activities and support services is to assist SNAP recipients who are not receiving Temporary Assistance for Needy Families in entering employment and increasing their earnings through participation in allowable job search, training, education, or workfare activities that promote self-sufficiency. These rules may be cited as the SNAP E&T rules.</content><note type="source"><p>Source Note: The provisions of this §813.1 adopted to be effective September 3, 2001, 26 TexReg 6731; amended to be effective February 26, 2003, 28 TexReg 1657; amended to be effective March 29, 2005, 30 TexReg 1799; amended to be effective August 17, 2009, 34 TexReg 5589; amended to be effective May 6, 2024, 49 TexReg 3013.</p></note></section><section identifier="/us/state/tx/tac/t40/p20/c813/scA/s813.2"><num value="813.2">§813.2</num><heading>Definitions</heading><content>The following words and terms, when used in this chapter, shall have the following meanings unless the context clearly indicates otherwise.(1) ABAWD--a SNAP household member who is determined by the Texas Health and Human Services Commission to be a mandatory work registrant and is:(A) classified as an able-bodied adult;(B) within the age range specified in 7 USC §2015(o)(3);(C) without dependents; and(D) subject to a limitation on the receipt of SNAP benefits for three months out of 36 months if the person does not work at least 20 hours per week or participate in employment and training activities as specified in 7 USC §2015(o)(2)(A) - (B).(2) Exempt recipient--an individual who is part of the General Population, is not required to participate in SNAP E&T services, as set forth in 7 USC §2015(d)(2), and shall not be sanctioned for failure to cooperate with SNAP E&T requirements as set forth in §813.12 of this chapter.(3) Full-service counties--counties in which Boards ensure that:(A) ABAWDs, who are not working at least 20 hours per week, are outreached and receive SNAP E&T services;(B) the SNAP E&T General Population receives SNAP E&T services based on available funding;(C) mandatory work registrants shall be sanctioned (that is, SNAP benefits are denied) for failure to cooperate with SNAP E&T requirements; and(D) exempt recipients who voluntarily participate in SNAP E&T services shall not be sanctioned for failure to cooperate with SNAP E&T requirements.(4) General Population--a mandatory or exempt SNAP household member who is:(A) at least 16 but less than 60 years of age; and(B) not classified as an ABAWD.(5) HHSC--the Texas Health and Human Services Commission.(6) Mandatory work registrant--a SNAP household member who is required to register for SNAP E&T services, and is:(A) classified as General Population; or(B) an ABAWD.(7) Minimum-service counties--counties in which:(A) SNAP recipients (that is, mandatory or exempt) may volunteer to participate in SNAP E&T services;(B) Boards may provide services to SNAP recipients based on available funds;(C) outreach is not conducted; and(D) SNAP recipients (that is, mandatory or exempt) who voluntarily participate in SNAP E&T services shall not be sanctioned for failure to cooperate with SNAP E&T requirements.(8) Nonprofit organization--any corporation, trust, association, cooperative, or other organization that is operated primarily for scientific, educational service, charitable, or similar purpose in the public interest; is not organized primarily for profit; and uses its net proceeds to maintain, improve, or expand its operations.(9) SNAP E&T activities--Supplemental Nutrition Assistance Program Employment and Training activities as specified in §813.31 of this chapter.(10) SNAP E&T support services--Supplemental Nutrition Assistance Program Employment and Training support services as specified in §813.41 of this chapter.(11) Volunteer--an individual who is not required to participate, but who voluntarily participates, in SNAP E&T services, including:(A) exempt recipients in full-service counties; and(B) exempt recipients and mandatory work registrants in minimum-service counties.(12) Workfare--a work-based activity that consists of placement of an ABAWD with a public or private nonprofit entity in an unpaid job assignment for the number of hours per month equal to an ABAWD's monthly household SNAP allotment amount divided by the federal minimum wage.</content><note type="source"><p>Source Note: The provisions of this §813.2 adopted to be effective September 3, 2001, 26 TexReg 6731; amended to be effective March 29, 2005, 30 TexReg 1799; amended to be effective August 17, 2009, 34 TexReg 5589; amended to be effective May 6, 2024, 49 TexReg 3013.</p></note></section><section identifier="/us/state/tx/tac/t40/p20/c813/scA/s813.3"><num value="813.3">§813.3</num><heading>General Board Responsibilities</heading><content>(a) Role of Boards. A Board shall:(1) ensure that SNAP eligibility is verified monthly before providing SNAP E&T services for mandatory work registrants and exempt recipients who voluntarily participate in SNAP E&T services; and(2) ensure that mandatory work registrants, and exempt recipients who volunteer, participate in allowable SNAP E&T activities. The allowable activities shall meet the needs of employers and prepare the mandatory work registrants and exempt recipients who voluntarily participate in SNAP E&T services for unsubsidized employment.(b) Board Planning. A Board shall develop, amend, and modify its integrated workforce training and services plan to incorporate and coordinate the design and management of the delivery of SNAP E&T activities and support services with the delivery of other workforce employment, training, and educational services identified in Texas Government Code §§2308.301 - 2308.3165 as well as other training and services included in the One-Stop Service Delivery Network as set forth in Chapter 801 of this title (relating to Local Workforce Development Boards).(c) Board Management. Pursuant to this chapter, and Chapter 801 of this title (relating to Local Workforce Development Boards), a Board shall coordinate workforce employment, training, and educational services that meet the needs of employers for its local workforce development area and shall incorporate and coordinate the management and strategy for SNAP E&T activities and support services into the comprehensive One-Stop Service Delivery Network provided to help low-income families as they move toward self-sufficiency.(d) Coordination with HHSC. A Board shall coordinate with HHSC on a regular and ongoing basis, as determined by the Board, regarding referrals, good cause, sanction procedures, and fair hearings or appeals.</content><note type="source"><p>Source Note: The provisions of this §813.3 adopted to be effective September 3, 2001, 26 TexReg 6731; amended to be effective March 29, 2005, 30 TexReg 1799; amended to be effective August 17, 2009, 34 TexReg 5589.</p></note></section><section identifier="/us/state/tx/tac/t40/p20/c813/scA/s813.4"><num value="813.4">§813.4</num><heading>Board Policies and Local Procedures</heading><content>(a) A Board shall establish policies and procedures regarding the methods and limitations for the provision of the following:(1) Work-related expenses; and(2) Housing assistance.(b) A Board may establish optional policies that require the use of the Eligible Training Provider System and Individual Training Accounts, as set forth in Chapter 841 of this title (relating to the Workforce Investment Act), to provide SNAP E&T-funded services for SNAP E&T participants.(c) If a Board establishes the optional policies described in subsection (b) of this section, the Board shall ensure that corresponding procedures are developed for the policies.</content><note type="source"><p>Source Note: The provisions of this §813.4 adopted to be effective August 17, 2009, 34 TexReg 5589.</p></note></section><section identifier="/us/state/tx/tac/t40/p20/c813/scA/s813.5"><num value="813.5">§813.5</num><heading>Documentation, Verification, and Supervision of Work Activities</heading><content>(a) A Board shall ensure that all required information related to the documentation and verification of participation in SNAP E&T work activities, as described in this section, is documented in the case management system.(b) A Board shall ensure that all participation in SNAP E&T is verified and documented and that self-attestation is not allowed.(c) For the activity described in §813.31(5) of this chapter, Boards shall ensure that all participation is verified and documented in the case management system at least monthly.(d) For the activities described in §813.31(1) and (4) and §813.32(a)(4) of this chapter, Boards shall ensure that all participation is:(1) supervised daily; and(2) verified and documented in the case management system at least monthly.(e) For the activities described in §813.31(2) and (3) of this chapter, Boards shall ensure that:(1) no more than one hour of unsupervised study or homework time per each hour of class time is counted toward participation in SNAP E&T;(2) all study and homework time in excess of one hour per hour of class time is directly monitored, supervised, verified, and documented;(3) study or homework time is only counted toward participation in SNAP E&T if:(A) the study or homework time is directly correlated to the demands of the coursework for out-of-class preparation as described by the educational institution; and(B) the educational institution's policy requires a certain number of out-of-class preparation hours for the class;(4) good or satisfactory progress, as determined by the educational institution, is verified and documented in the case management system at least monthly;(5) all participation in SNAP E&T is supervised daily; and(6) all participation in SNAP E&T is verified and documented in the case management system at least monthly.</content><note type="source"><p>Source Note: The provisions of this §813.5 adopted to be effective August 17, 2009, 34 TexReg 5589; amended to be effective May 6, 2024, 49 TexReg 3013.</p></note></section></subchapter><subchapter identifier="/us/state/tx/tac/t40/p20/c813/scB"><num value="B">SUBCHAPTER B</num><heading>ACCESS TO EMPLOYMENT AND TRAINING ACTIVITIES AND SUPPORT SERVICES</heading><section identifier="/us/state/tx/tac/t40/p20/c813/scB/s813.11"><num value="813.11">§813.11</num><heading>Board Responsibilities Regarding Access to SNAP E&T Activities and Support Services</heading><content>(a) A Board shall ensure that allowable SNAP E&T activities and support services, as set forth in Subchapters D and E, respectively, of this chapter, are provided as specified in the annual state plan of operations approved by the United States Department of Agriculture (USDA), to individuals who are:(1) classified as the General Population; or(2) ABAWDs.(b) A Board shall ensure that the monitoring of SNAP E&T requirements and participant activities is ongoing and frequent, as determined appropriate by the Board, and consists of:(1) tracking and reporting SNAP E&T participation hours;(2) tracking and reporting support services hours;(3) determining and arranging for any intervention needed to assist the individual in complying with SNAP E&T service requirements;(4) monitoring and ensuring progress toward achieving the goals and objectives in the employment plan; and(5) monitoring all other requirements.(c) A Board shall ensure that all ABAWDs in full-service SNAP E&T counties are provided with an offer of a work activity within 10 calendar days from the date of referral from HHSC.(d) A Board shall ensure that HHSC is notified in a timely manner if a mandatory work registrant fails to comply with participant responsibilities, as set forth in §813.12 of this subchapter.(e) A Board shall ensure that employment and training activities are conducted in compliance with the Fair Labor Standards Act (FLSA) (29 USC §201 et seq.), as follows:(1) The amount of time per week that a mandatory work registrant or exempt recipient who voluntarily participates in SNAP E&T services may be required to participate in activities that are not exempt from minimum wage and overtime under the FLSA shall be determined by the SNAP benefits amount being divided by the minimum wage, so that the amount paid to the mandatory work registrant or exempt recipient who voluntarily participates in SNAP E&T services would be equal to or more than the amount required for payment of wages, including minimum wage and overtime.(2) If a Board provides activities that meet all the following criteria set forth in this paragraph, the activities are considered "training" under FLSA and minimum wage and overtime are not required, as follows:(A) The training is similar to that given in a vocational school.(B) The training is for the benefit of the trainees.(C) Trainees do not displace currently employed workers.(D) Employers derive no immediate advantage from trainees' activities.(E) Trainees are not entitled to a job after training is completed.(F) Employers and trainees understand that trainees are not paid.(f) A Board shall ensure that placement in work-based services does not result in the displacement of currently employed workers or impair existing contracts for services or collective bargaining agreements.</content><note type="source"><p>Source Note: The provisions of this §813.11 adopted to be effective September 3, 2001, 26 TexReg 6731; amended to be effective February 26, 2003, 28 TexReg 1657; amended to be effective March 29, 2005, 30 TexReg 1799; amended to be effective August 17, 2009, 34 TexReg 5589; amended to be effective October 26, 2020, 45 TexReg 7611.</p></note></section><section identifier="/us/state/tx/tac/t40/p20/c813/scB/s813.12"><num value="813.12">§813.12</num><heading>Participant Responsibilities</heading><content>Mandatory work registrants and exempt recipients who voluntarily participate in SNAP E&T services shall:(1) attend scheduled appointments;(2) participate in assigned SNAP E&T activities for at least a minimum weekly average of 30 hours, within the restrictions set forth in §813.14 of this subchapter;(3) report to an employer to whom they are referred;(4) accept a job offer; and(5) report activity hours, including hours of employment.</content><note type="source"><p>Source Note: The provisions of this §813.12 adopted to be effective September 3, 2001, 26 TexReg 6731; amended to be effective February 26, 2003, 28 TexReg 1657; amended to be effective March 29, 2005, 30 TexReg 1799; amended to be effective August 17, 2009, 34 TexReg 5589.</p></note></section><section identifier="/us/state/tx/tac/t40/p20/c813/scB/s813.13"><num value="813.13">§813.13</num><heading>Good Cause for Mandatory Work Registrants Who Participate in SNAP E&T Services</heading><content>(a) Good cause applies only to mandatory work registrants who are required to participate in SNAP E&T services. A Board shall ensure that all good cause claims are forwarded to HHSC for determination before SNAP benefits are denied when mandatory work registrants state that they have a reason for failing to:(1) respond to the outreach notification; and(2) participate in SNAP E&T activities.(b) For purposes of this chapter, the following are reasons a Board may consider when making a good cause recommendation to HHSC after a SNAP E&T participant fails to respond to outreach notifications or fails to participate in SNAP E&T activities:(1) temporary illness or incapacitation;(2) court appearance;(3) caring for a physically or mentally disabled household member who requires the recipient's presence in the home;(4) no available transportation and the distance prohibits walking; or no available job within reasonable commuting distance, as defined by the Board;(5) distance from the home of the mandatory work registrant who participates in SNAP E&T services, to the Workforce Solutions Office, or employment service provider requires commuting time of more than two hours a day (not including taking a child to and from a child care facility), the distance prohibits walking, and there is no available transportation;(6) farmworkers who are away from their permanent residence or home base, who travel to work in an agriculture or related industry during part of the year, and are under contract or similar agreement with an employer to begin work within 30 days of the date that the individual notified the Board of his or her seasonal farmwork assignment;(7) an inability to obtain needed child care, as defined by the Board and based on any of the following reasons:(A) informal child care by a relative or child care provided under other arrangements is unavailable or unsuitable, and based on, where applicable, Board policy regarding child care. Informal child care may also be determined unsuitable by the parent;(B) eligible formal child care providers, as defined in Chapter 809 of this title (relating to Child Care Services), are unavailable;(C) affordable formal child care arrangements within maximum rates established by the Board are unavailable; or(D) formal or informal child care within a reasonable distance from home or the work site is unavailable;(8) an absence of other support services necessary for participation;(9) receiving a job referral that results in an offer below the federal minimum wage, except when a lower wage is permissible under federal minimum wage law;(10) an individual or family crisis or a family circumstance that may preclude participation, including substance abuse and mental health and disability-related issues, provided that the mandatory work registrant who participates in SNAP E&T services engages in problem resolution through appropriate referrals for counseling and support services; or(11) a individual is a victim of family violence.(c) A Board shall ensure that good cause is monitored at least on a monthly basis and results are shared with HHSC if there is a change in the circumstances surrounding the good cause exception.</content><note type="source"><p>Source Note: The provisions of this §813.13 adopted to be effective March 29, 2005, 30 TexReg 1799; amended to be effective August 17, 2009, 34 TexReg 5589; amended to be effective August 21, 2018, 43 TexReg 5390; amended to be effective October 26, 2020, 45 Texeg 7611.</p></note></section><section identifier="/us/state/tx/tac/t40/p20/c813/scB/s813.14"><num value="813.14">§813.14</num><heading>Special Provisions Regarding Sanctions for Noncooperation</heading><content>Mandatory work registrants who are scheduled to participate more than 120 hours per month may not be sanctioned for noncooperation after 120 hours have been reached, as described in the Food and Nutrition Act, 7 USC §2015(d)(4)(F)(ii). The 120 hours include hours in all SNAP E&T activities, including any hours worked for paid or unpaid compensation.</content><note type="source"><p>Source Note: The provisions of this §813.14 adopted to be effective March 29, 2005, 30 TexReg 1799; amended to be effective August 17, 2009, 34 TexReg 5589; amended to be effective October 26, 2020, 45 TexReg 7611.</p></note></section></subchapter><subchapter identifier="/us/state/tx/tac/t40/p20/c813/scC"><num value="C">SUBCHAPTER C</num><heading>EXPENDITURE OF FUNDS</heading><section identifier="/us/state/tx/tac/t40/p20/c813/scC/s813.22"><num value="813.22">§813.22</num><heading>Use of Funds</heading><content>Boards shall ensure that the following funding provisions are followed:(1) The following SNAP E&T grant funds shall be expended on SNAP E&T activities for mandatory work registrants and exempt recipients who voluntarily participate in SNAP E&T activities listed in §813.31 and §813.32 of this chapter:(A) 100 percent federal SNAP E&T grant and 100 percent federal ABAWD-only grant (100 percent funds)(B) 50 percent federal SNAP E&T grant and 50 percent state SNAP E&T grant (50/50 funds)(2) SNAP E&T-funded support services, listed in §813.41 of this chapter, shall be funded only with 50/50 funds.(3) Job retention services for SNAP recipients who participated in SNAP E&T activities and obtained full-time employment may be provided for no more than 90 days and shall be funded with one or both of the following:(A) 100 percent funds(B) 50/50 funds(4) Job retention support services for SNAP recipients who participated in SNAP E&T activities and obtained full-time or part-time employment may be provided for no more than 90 days and shall be funded with 50/50 funds.</content><note type="source"><p>Source Note: The provisions of this §813.22 adopted to be effective September 3, 2001, 26 TexReg 6731; amended to be effective February 26, 2003, 28 TexReg 1657; amended to be effective August 17, 2009, 34 TexReg 5589.</p></note></section></subchapter><subchapter identifier="/us/state/tx/tac/t40/p20/c813/scD"><num value="D">SUBCHAPTER D</num><heading>ALLOWABLE ACTIVITIES</heading><section identifier="/us/state/tx/tac/t40/p20/c813/scD/s813.31"><num value="813.31">§813.31</num><heading>Activities for Mandatory Work Registrants and Exempt Recipients Who Voluntarily Participate in SNAP E&T Services</heading><content>The following activities may be provided for SNAP E&T mandatory work registrants and exempt recipients who voluntarily participate in SNAP E&T services, subject to the limitations specified in §813.32 of this subchapter:(1) Supervised job search services that shall:(A) incorporate job readiness, job search training, directed job search, and group job search, and may include the following:(i) Employability assessment;(ii) Counseling;(iii) Information on available jobs;(iv) Occupational exploration, including information on local emerging and demand occupations;(v) Interviewing skills and practice interviews;(vi) Assistance with applications and résumés;(vii) Job fairs;(viii) Life skills; and(ix) Guidance and motivation for development of positive work behaviors necessary for the labor market; and(B) limit the number of weeks a mandatory work registrant or exempt recipient who voluntarily participates in SNAP E&T services can spend as follows:(i) ABAWDs shall not be enrolled for more than four weeks, and the job search activity shall be provided in conjunction with the workfare activity, as described in §813.32(a)(4)(D) of this subchapter.(ii) General Population mandatory work registrants and exempt recipients who voluntarily participate in SNAP E&T services shall not be enrolled:(I) for more than four weeks of consecutive activity under this paragraph; or(II) for more than six weeks of total activity in a federal fiscal year.(iii) Job search, when offered as part of other SNAP E&T activities, is allowed for more time than the limitations set forth in clauses (i) and (ii) of this subparagraph if the job search activities comprise less than half of the required time spent in other activities.(2) Vocational training that shall:(A) relate to the types of jobs available in the labor market;(B) be consistent with employment goals identified in the employment plan, when possible; and(C) be provided only if there is an expectation that employment will be secured upon completion of the training.(3) Nonvocational education that shall increase employability, such as:(A) enrollment and satisfactory attendance in:(i) a secondary school; or(ii) a course of study leading to a high school diploma or a certificate of general equivalence;(B) basic skills and literacy;(C) English proficiency; or(D) postsecondary education, leading to a degree or certificate awarded by a training facility, career school or college, or other educational institution that prepares individuals for employment in current and emerging occupations that do not require baccalaureate or advanced degrees;(4) Work experience, as authorized by 7 USC §2015(d)(4)(B)(iv) and by 20 CFR §663.200(b), for mandatory work registrants who need assistance in becoming accustomed to basic work skills that shall:(A) occur in the workplace for a limited period of time;(B) be made in either the private for-profit, the nonprofit, or the public sectors; and(C) be paid or unpaid;(5) Unsubsidized employment(6) Other activities approved in the current SNAP E&T state plan of operations</content><note type="source"><p>Source Note: The provisions of this §813.31 adopted to be effective September 3, 2001, 26 TexReg 6731; amended to be effective February 26, 2003, 28 TexReg 1657; amended to be effective March 29, 2005, 30 TexReg 1799; amended to be effective August 17, 2009, 34 TexReg 5589; amended to be effective October 26, 2020, 45 TexReg 7611.</p></note></section><section identifier="/us/state/tx/tac/t40/p20/c813/scD/s813.32"><num value="813.32">§813.32</num><heading>SNAP E&T Activities for ABAWDs</heading><content>(a) Boards shall ensure that SNAP E&T activities for ABAWDs are limited to participating in the following:(1) Services or activities under the Trade Act of 1974, as amended by the Trade Act of 2002(2) Activities under Workforce Innovation and Opportunity Act (29 USC §3111 et seq.)(3) Education and training, which may include:(A) vocational training as described in §813.31(2) of this subchapter; or(B) nonvocational education as described in §813.31(3) of this subchapter; and(4) Workfare activities that shall:(A) be designed to improve the employability of ABAWDs through actual employment experience or training, or both;(B) be unpaid job assignments based in the public or private nonprofit sectors;(C) have hourly requirements based on the ABAWD's monthly household SNAP allotment divided by the number of ABAWDs in the SNAP household, as provided by HHSC and then divided by the federal minimum wage; and(D) include a four-week job search period before placement in a workfare activity.(5) Work experience as described in §813.31(4) of this subchapter.(b) Boards shall ensure that ABAWDs who are referred to a Workforce Solutions Office and subsequently become engaged in unsubsidized employment for at least 20 hours per week are not required to continue participation in SNAP E&T services because they have fulfilled their work requirement, as described in 7 USC §2015(o)(2)(A). Additionally, Boards shall ensure that HHSC is notified when ABAWDs obtain employment.(c) An employment and training program for veterans operated by the US Department of Labor or the US Department of Veterans Affairs, as tracked by HHSC, is an allowable SNAP E&T activity for ABAWDs.</content><note type="source"><p>Source Note: The provisions of this §813.32 adopted to be effective September 3, 2001, 26 TexReg 6731; amended to be effective February 26, 2003, 28 TexReg 1657; amended to be effective March 29, 2005, 30 TexReg 1799; amended to be effective August 17, 2009, 34 TexReg 5589; amended to be effective October 26, 2020, 45 TexReg 7611; amended to be effective May 6, 2024, 49 TexReg 3013.</p></note></section><section identifier="/us/state/tx/tac/t40/p20/c813/scD/s813.33"><num value="813.33">§813.33</num><heading>Job Retention Activities</heading><content>(a) Boards shall offer job retention activities:(1) similar to the SNAP E&T activities described in §813.31(1) - (3) of this subchapter, and as specified in the annual SNAP E&T state plan of operations and any subsequent amendments approved by USDA;(2) for a minimum of 30 days and not more than 90 days to SNAP recipients who participated in SNAP E&T activities and obtained full-time employment; and(3) in full-service or minimum-service counties as funding permits and as specified in paragraphs (1) and (2) of this subsection.(b) Boards shall ensure that SNAP eligibility is verified each month that job retention activities are provided.</content><note type="source"><p>Source Note: The provisions of this §813.33 adopted to be effective August 17, 2009, 34 TexReg 5589; amended to be effective October 26, 2020, 45 TexReg 7611.</p></note></section><section identifier="/us/state/tx/tac/t40/p20/c813/scD/s813.34"><num value="813.34">§813.34</num><heading>Job Retention Support Services</heading><content>Boards shall offer job retention support services for a minimum of 30 days and not more than 90 days to assist:(1) mandatory work registrants who obtain part-time employment while participating, or after successfully participating, in SNAP E&T activities; and(2) exempt recipients who participated in SNAP E&T activities and obtained full-time employment.</content><note type="source"><p>Source Note: The provisions of this §813.34 adopted to be effective August 17, 2009, 34 TexReg 5589; amended to be effective October 26, 2020, 45 TexReg 7611.</p></note></section></subchapter><subchapter identifier="/us/state/tx/tac/t40/p20/c813/scE"><num value="E">SUBCHAPTER E</num><heading>SUPPORT SERVICES FOR PARTICIPANTS</heading><section identifier="/us/state/tx/tac/t40/p20/c813/scE/s813.41"><num value="813.41">§813.41</num><heading>Provision of SNAP E&T Support Services</heading><content>(a) Boards shall ensure that SNAP E&T support services are provided to mandatory work registrants and exempt recipients who voluntarily participate in SNAP E&T services, if the support services are reasonable, necessary, and directly related to participation in SNAP E&T activities, as follows:(1) Mandatory Work Registrants. Boards shall ensure that:(A) support services are provided to assist mandatory work registrants with participation in SNAP E&T activities and in obtaining employment; and(B) if the monthly expenses directly related to participation by a mandatory work registrant exceed available funds, the mandatory work registrant is:(i) exempted from further participation in an assigned SNAP E&T activity; or(ii) reassigned to a SNAP E&T activity that will not require the provision of support services.(2) Exempt Recipients Who Voluntarily Participate in SNAP E&T Activities. Boards shall ensure that:(A) support services are provided to assist exempt recipients with participation in SNAP E&T activities and in obtaining employment; and(B) if the monthly expenses directly related to participation for an exempt recipient who voluntarily participates in SNAP E&T services exceed available funds, the exempt recipient is:(i) informed that assigned activities will be discontinued; or(ii) reassigned to a SNAP E&T activity that will not require the provision of support services.(b) Support services include payment or reimbursement for:(1) child care services governed by Chapter 809 of this title;(2) transportation services that may be provided for participating mandatory work registrants and exempt recipients who voluntarily participate in SNAP E&T services, if alternative transportation resources are not available to the participants. Boards shall ensure that costs to provide the transportation services are:(A) reasonable and necessary for participation in SNAP E&T activities; and(B) paid for based on the methods and amounts determined by each Board to be consistent with state policy that requires use of the most economical means of transportation to meet the SNAP E&T participant's needs;(3) training or education-related items:(A) including, but not limited to, costs for uniforms, personal safety items, or other necessary equipment, and books or training manuals provided; and(B) excluding the cost of meals away from home;(4) work-related expenses that are:(A) reasonable, necessary, and directly related to accepting or retaining employment such as tools, uniforms, equipment, transportation, and car repairs; and(B) paid for based on methods and amounts established in Boards' local policies and procedures; and(5) housing expenses that are:(A) reasonable, necessary, and directly related to participation in SNAP E&T activities or retaining employment such as assistance with rent or utility payments; and(B) paid for based on methods and amounts established in Boards' local policies and procedures.</content><note type="source"><p>Source Note: The provisions of this §813.41 adopted to be effective September 3, 2001, 26 TexReg 6731; amended to be effective February 26, 2003, 28 TexReg 1657; amended to be effective March 29, 2005, 30 TexReg 1799; amended to be effective August 17, 2009, 34 TexReg 5589.</p></note></section></subchapter><subchapter identifier="/us/state/tx/tac/t40/p20/c813/scF"><num value="F">SUBCHAPTER F</num><heading>COMPLAINTS</heading><section identifier="/us/state/tx/tac/t40/p20/c813/scF/s813.53"><num value="813.53">§813.53</num><heading>Discrimination Complaints</heading><content>(a) A mandatory work registrant alleging discrimination on the basis of age, race, color, national origin, or physical or mental disability has a right to file a written complaint of alleged discriminatory acts within 180 calendar days from the date of the alleged discriminatory act. Complaints must be submitted to the Texas Workforce Commission Equal Opportunity Department, 101 East 15th Street, Room 220, Austin, TX 78778-0001.(b) Boards shall ensure that the Board or the Board's service providers advise individuals who express an interest in filing a discrimination complaint of their right to file a complaint and the complaint procedures.</content><note type="source"><p>Source Note: The provisions of this §813.53 adopted to be effective September 3, 2001, 26 TexReg 6731; amended to be effective February 26, 2003, 28 TexReg 1657.</p></note></section></subchapter></chapter><chapter identifier="/us/state/tx/tac/t40/p20/c815"><num value="815">CHAPTER 815</num><heading>UNEMPLOYMENT INSURANCE</heading><subchapter identifier="/us/state/tx/tac/t40/p20/c815/scA"><num value="A">SUBCHAPTER A</num><heading>GENERAL PROVISIONS</heading><section identifier="/us/state/tx/tac/t40/p20/c815/scA/s815.1"><num value="815.1">§815.1</num><heading>Definitions</heading><content>The following words and terms, when used in this chapter, shall have the following meanings, unless the statute or context in which the word or phrase is used clearly indicates otherwise.(1) Act--The Texas Unemployment Compensation Act, Texas Labor Code Annotated, Title 4, Subtitle A, as amended.(2) Additional claim--A notice of new unemployment filed at the beginning of a second or subsequent series of claims within a benefit year or within a period of eligibility when a break of one week or more has occurred in the claim series with intervening employment. The employer named on an additional claim will have 14 days from the date notice of the claim is mailed to reply to the notice. The additional claim reopens a claim series and is not a payable claim since it is not a claim for seven days of compensable unemployment.(3) Adequate notification--A notification of adverse facts, including any subsequent notification, affecting a claim for benefits, as provided in the Act, Chapter 208.(A) Notification to the Commission is adequate as long as the employer or its agent gives a reason, supported by facts, directly related to the allegation raised regarding the claimant's right to benefits.(B) The employer or its agent may demonstrate good cause for failing to provide adequate notice. Good cause is established solely by showing that the employer or its agent was prevented from providing adequate notification due to compelling circumstances beyond the control of the employer or its agent.(C) Examples of adequate notification of adverse facts include, but are not limited to, the following:(i) The claimant was discharged for misconduct connected with his work because he was fighting on the job in violation of written company policy.(ii) The claimant abandoned her job when she failed to contact her supervisor in violation of written company policy and previous warnings.(D) A notification is not adequate if it provides only a general conclusion without substantiating facts. A general statement that a worker has been discharged for misconduct connected with the work is inadequate. The allegation may be supported by a summary of the events, which may include facts documenting the specific reason for the worker's discharge, such as, but not limited to:(i) policies or procedures;(ii) warnings;(iii) performance reviews;(iv) attendance records;(v) complaints; and(vi) witness statements.(4) Agency--The unit of state government that is presided over by the Commission and under the direction of the executive director, which operates the integrated workforce development system and administers the unemployment compensation insurance program in this state as established under Texas Labor Code, Chapter 301. It may also be referred to as the Texas Workforce Commission.(5) Appeal--A submission by a party requesting the Agency or the Commission to review a determination or decision that is adverse to that party. The determination or decision must be appealable and pertain to entitlement to unemployment benefits; chargeback as provided in the Act, Chapter 204, Chapter 208, and Chapter 212; fraud as provided in the Act, Chapter 214; tax coverage or contributions or reimbursements. This definition does not grant rights to a party.(6) Base period with respect to an individual--The first four consecutive completed calendar quarters within the last five completed calendar quarters immediately preceding the first day of the individual's benefit year, or any other alternate base period as allowed by the Act.(7) Benefit period--The period of seven consecutive calendar days, ending at midnight on Saturday, with respect to which entitlement to benefits is claimed, measured, computed, or determined.(8) Benefit wage credits--Wages used to determine an individual's monetary eligibility for benefits. Benefit wage credits consist of those wages an individual received for employment from an employer during the individual's base period as well as any wages ordered to be paid to an individual by a final Commission order, pursuant to its authority under Texas Labor Code, Chapter 61. Benefit wage credits awarded by a final Commission order that were due to be paid to the individual by an employer during the individual's base period shall be credited to the quarter in which the wages were originally due to be paid.(9) Board--Local Workforce Development Board created pursuant to Texas Government Code §2308.253 and certified by the Governor pursuant to Texas Government Code §2308.261. This includes a Board when functioning as the Local Workforce Investment Board as described in the Workforce Investment Act §117 (29 U.S.C.A. §2832), including those functions required of a Youth Council, as provided for under the Workforce Investment Act §117(i) (also referred to as an LWDB).(10) Commission--The three-member body of governance composed of Governor-appointed members in which there is one representative of labor, one representative of employers, and one representative of the public as established in Texas Labor Code §301.002, which includes the three-member governing body acting under the Act, Chapter 212, Subchapter D, and in Agency hearings involving unemployment insurance issues regarding tax coverage, contributions or reimbursements.(11) Day--A calendar day.(12) Landman--An individual who is qualified to do field work in the purchasing of right-of-way and leases of mineral interests, record searches, and related real property title determinations, and who is primarily engaged in performing the field work.(13) Person--May include a corporation, organization, government or governmental subdivision or agency, business trust, estate, trust, partnership, association, and any other legal entity.(14) Places accessible--Locations in which an employer shall provide required notices to an employee as provided in the Act, Chapter 208. This includes:(A) Notices providing general information about filing a claim for unemployment benefits shall be displayed in a manner reasonably calculated to be encountered by all employees; and(B) Upon separation from employment, an employer shall provide an employee individual notice of general information about filing a claim for unemployment benefits as set out in the printed notice referenced in §208.001(b) of the Act. As the notice is provided directly to the individual, the employer has significant flexibility in how this information may be made known. Such information may be provided:(i) in a paper format, including by mail or with separation paperwork;(ii) by email;(iii) by text; or(iv) by other means reasonably calculated to ensure the individual receives the required notification.(15) Reopened claim--The first claim filed following a break in claim series during a benefit year which was caused by other than intervening employment, i.e., illness, disqualification, unavailability, or failure to report for any reason other than job attachment. The reopened claim reopens a claim series and is not a payable claim since it is not a claim for seven days of compensable unemployment.(16) Week--A period of seven consecutive calendar days ending at midnight on Saturday.</content><note type="source"><p>Source Note: The provisions of this §815.1 adopted to be effective November 6, 2000, 25 TexReg 11093; amended to be effective September 20, 2010, 35 TexReg 8504; amended to be effective June 30, 2014, 39 TexReg 4965; amended to be effective October 12, 2020, 45 TexReg 7273.</p></note></section><section identifier="/us/state/tx/tac/t40/p20/c815/scA/s815.2"><num value="815.2">§815.2</num><heading>Mailing Dates and Use of Forms</heading><content>(a) Except as otherwise provided in Subchapter C of this chapter, when an individual or an employing unit reports or applies to the Agency in writing upon an Agency form, for purposes of determining the date the writing was sent, the following dates shall control, in the order listed:(1) the postmark date or the postal meter date (where there is only one or the other);(2) the postmark date if there is both a postmark date and a postal meter date, if they conflict;(3) the date the writing was delivered to a common carrier, which date is equal to a postmark date;(4) a writing received in an envelope bearing no legible postmark, postal meter date, or date of delivery to the common carrier shall be considered to have been sent three business days before receipt by the Agency, or on the date of the document, if the document date is less than three days earlier than date of receipt; or(5) if the mailing envelope is lost after delivery to the Agency, the date on the writing shall control. If the document is undated, the date the writing was sent shall be three business days before receipt by the Agency, subject to sworn testimony establishing an even earlier date.(b) Except as provided in Subchapter C of this chapter, the date and time a writing is received by the Agency shall control when that writing was sent by facsimile transmission (fax), or in an electronic form approved by the Agency in writing.(c) Except as otherwise provided in Subchapter C of this chapter, when the writing is not on an Agency form but furnishes information that is sufficient to indicate clearly the purpose or intent of the writing, the controlling date shall be determined as described in this section. However, the Agency may require that the individual or employing unit furnish the necessary information to the Agency in the manner and on a form or forms prescribed by the Agency for the particular purpose.</content><note type="source"><p>Source Note: The provisions of this §815.2 adopted to be effective November 6, 2000, 25 TexReg 11093.</p></note></section><section identifier="/us/state/tx/tac/t40/p20/c815/scA/s815.3"><num value="815.3">§815.3</num><heading>Addresses</heading><content>(a) In this chapter, each employing unit which has or had individuals in "employment" so defined in the Act shall notify the Agency of its correct address and of any change in its correct address, and each employing unit shall promptly notify the Agency of any change of address. Each individual who is a claimant for benefits, who is liable to the Agency for an overpayment pursuant to the Act, Chapter 212 or 214, or who is registered for work at an Agency office, or public employment office, including a workforce center, shall promptly notify the Agency of any change of address.(b) In this chapter, a group account, as referred to in the Act, §205.021, shall be treated as a single employing unit for the purposes of this section and the Agency shall use the address of the group representative as the official address of the group. The group representative shall notify the Agency of the correct address and shall promptly notify the Agency of any change of address.(c) In all transactions in which notice is required by the Act or this chapter, the Agency shall notify the parties at the last known address as reflected in the Agency records. However, when the Agency mails a notice of an initial claim to the employer, the Agency shall use the address of the employer for whom the claimant last worked, or if the employer has more than one branch or division at different locations, the location of the branch or division for which the claimant last worked, or a mailing address designated by the employer in the Act, § 208.003.</content><note type="source"><p>Source Note: The provisions of this §815.3 adopted to be effective November 6, 2000, 25 TexReg 11093.</p></note></section><section identifier="/us/state/tx/tac/t40/p20/c815/scA/s815.4"><num value="815.4">§815.4</num><heading>Conformity with Federal Law</heading><content>Notwithstanding any other provision of this chapter, if the US Secretary of Labor holds that a provision of this chapter does not conform with federal statute or regulation, the Agency may administer this chapter to conform with the federal statute or regulation until the Commission has a reasonable opportunity to amend the nonconforming provision.</content><note type="source"><p>Source Note: The provisions of this §815.4 adopted to be effective July 19, 2021, 46 TexReg 4372.</p></note></section></subchapter><subchapter identifier="/us/state/tx/tac/t40/p20/c815/scB"><num value="B">SUBCHAPTER B</num><heading>BENEFITS, CLAIMS, AND APPEALS</heading><section identifier="/us/state/tx/tac/t40/p20/c815/scB/s815.10"><num value="815.10">§815.10</num><heading>Appeals From Decisions on Chargebacks</heading><content>Appeals from decisions on chargebacks under the Act, §§204.021 - 204.027, 208.004(c), and §212.005(b), shall be to the appeal tribunals and to the Commission within the time prescribed by the Act. These appeals shall be heard in accordance with the provisions of §815.16 of this chapter (relating to Appeals to Appeal Tribunals from Determinations), §815.17 of this chapter (relating to Appeals to the Commission from Decisions), and §815.18 of this chapter (relating to General Rules for Both Appeal Stages), except to the extent that the referenced sections are clearly inapplicable.</content><note type="source"><p>Source Note: The provisions of this §815.10 adopted to be effective November 6, 2000, 25 TexReg 11093; amended to be effective June 30, 2014, 38 TexReg 4965.</p></note></section><section identifier="/us/state/tx/tac/t40/p20/c815/scB/s815.12"><num value="815.12">§815.12</num><heading>Waiver of Repayment and Recovery of Federal Extended Unemployment Compensation Overpayments</heading><content>(a) When conforming with an applicable federal extended unemployment compensation program, this section implements waiver of repayment requirements by setting out the process that the Agency and Commission shall use to determine whether to waive the repayment and recovery of non-fraudulent overpayments. The terms repayment and recovery will be referred to as repayment in this section, and the federal extended unemployment compensation overpayment will be referred to as overpayment.(b) When a decision of the Agency or Commission results in a federal extended unemployment compensation overpayment, the Agency or Commission will also determine whether the overpayment will be waived.(c) A claimant may appeal the underlying issue that created the overpayment determination pursuant to the provisions of Chapter 212 of the Act and the provisions set out in §815.16 of this chapter (relating to Appeals to Appeal Tribunals from Determinations), §815.17 of this chapter (relating to Appeals to the Commission from Decisions), and §815.18 of this chapter (relating to General Rules for Both Appeal Stages).(d) A claimant may also appeal a denial of a request to waive the repayment of an overpayment in the same manner as stated in subsection (c) of this section.(e) The Agency or Commission will deny a request to waive the repayment of a non-fraudulent overpayment if it determines that:(1) the payment of the federal extended unemployment compensation benefits is the fault of the claimant, or(2) the repayment is not contrary to equity and good conscience.(f) The Agency or Commission will waive the repayment of a non-fraudulent overpayment if it determines that:(1) the payment of the federal extended unemployment compensation benefits is not the fault of the claimant, and(2) the repayment is contrary to equity and good conscience.(g) In determining whether fault exists, the Agency or Commission shall consider the following:(1) whether a material statement or representation was made by the claimant in connection with the application for the federal extended unemployment compensation that resulted in an overpayment, and whether the claimant knew or should have known that the statement or representation was inaccurate;(2) whether the claimant failed or caused another to fail to disclose a material fact, in connection with an application for the federal extended unemployment compensation that resulted in an overpayment, and whether the claimant knew or should have known that the fact was material;(3) whether the claimant knew or could have been expected to know that the claimant was not entitled to the federal extended unemployment compensation payment; and(4) whether, for any other reason, the overpayment resulted directly or indirectly, and partially or totally, from any act or omission of the claimant or of which the claimant had knowledge, and which was erroneous or inaccurate or otherwise wrong.(h) In determining whether equity and good conscience exists, the Agency or Commission shall consider the following factors:(1) whether the overpayment is the result of a decision on appeal;(2) whether the Agency gave notice to the claimant that the claimant may be required to repay the overpayment in the event of a reversal of the federal extended unemployment compensation eligibility determination on appeal; and(3) whether repayment of the federal extended unemployment compensation overpayment will cause financial hardship to the claimant.(i) Hearings under this section will be conducted in a fair and impartial manner in accordance with the provisions of §815.15 of this chapter (relating to Parties with Appeal Rights), §815.16 of this chapter (relating to Appeals to Appeal Tribunals from Determinations), §815.17 of this chapter (relating to Appeals to the Commission from Decisions), and §815.18 of this chapter (relating to General Rules for Both Appeal Stages), except to the extent that the sections are clearly inapplicable.(j) For the purposes of this section, a federal extended unemployment compensation program is an unemployment compensation program enacted by Congress that provides additional federally funded benefits. It does not include Extended Benefits under Subchapter F of this chapter or Chapter 209 of the Act.</content><note type="source"><p>Source Note: The provisions of this §815.12 adopted to be effective July 16, 2002, 27 TexReg 6339; amended to be effective October 12, 2020, 45 TexReg 7273.</p></note></section><section identifier="/us/state/tx/tac/t40/p20/c815/scB/s815.15"><num value="815.15">§815.15</num><heading>Parties with Appeal Rights</heading><content>(a) This section defines the circumstances under which a party has appeal rights. For the purposes of appeals under this chapter, the term "party of interest" shall be used to denote a party with appeal rights.(b) A claimant may file an appeal from an action of the Agency and/or the Commission that affects the claimant's right to benefits subject to this chapter and the Act.(c) An employer may file an appeal from a determination that affects a claimant's entitlement to benefits if the employer is a party of interest to the determination. The paragraphs of this subsection are situations in which the Agency shall treat an employer as a party of interest in a specific proceeding. Only one employer shall be a party of interest to a proceeding.(1) An employer named as the last work on an initial claim is a party of interest to a determination(s) ruling on the merits of the claimant's separation and other specific issues raised by the employer regarding the claimant's entitlement to benefits, if the employer filed a timely response to notice of the claimant's initial claim.(2) An employer named as the last work on an additional or continued claim is a party of interest to a determination(s) ruling on the merits of that additional or continued claim separation, if the employer filed a timely response to notice of the claimant's additional or continued claim and:(A) was the employer named as the last work on the claimant's initial claim and the employer filed a timely response to notice of the claimant's initial claim; or(B) is a base period employer whose account has been ruled subject to chargeback.(3) A reimbursing employer named as the last work on an additional or continued claim is a party of interest to a determination(s) ruling on the merits of that additional or continued claim separation, if the employer filed a timely response to notice of the claimant's additional or continued claim and:(A) was the employer named as the last work on the claimant's initial claim and the employer filed a timely response to notice of the claimant's initial claim; or(B) is a base period employer.(4) If an employer, during a claimant's benefits year, provides the Agency with information that raises specific issues including, but not limited to, a potential disqualification, ineligibility, or allegations of fraud, each of which affects that claimant's entitlement to benefits, then the employer shall be a party of interest to a determination ruling on the merits of the specific issue raised by the employer as follows:(A) the employer is named as the last work on the claimant's initial claim and the employer filed a timely response to notice of the claimant's initial claim;(B) the employer is a base period taxed employer whose account has been ruled subject to chargeback (even if that employer was named as the last work on the claimant's initial claim and did not timely respond to notice of the claimant's initial claim); or(C) the employer is a base period reimbursing employer.(5) An employer against whom a claimant has alleged entitlement to additional base period wages shall be a party of interest to that issue.(6) If an employer has requested a waiver under §815.28(a)(1)(E)(v) of this subchapter and the Agency Executive Director denies the waiver, the employer shall be a party of interest to any benefits appeal where ineligibility results from that denial.</content><note type="source"><p>Source Note: The provisions of this §815.15 adopted to be effective November 6, 2000, 25 TexReg 11093; amended to be effective August 15, 2004, 29 TexReg 7738.</p></note></section><section identifier="/us/state/tx/tac/t40/p20/c815/scB/s815.16"><num value="815.16">§815.16</num><heading>Appeals to Appeal Tribunals from Determinations</heading><content>A party of interest may appeal a determination to the appeal tribunal. Appeals shall be in accordance with the terms of this section, §815.15 of this chapter (relating to Parties with Appeal Rights), §815.17 of this chapter (relating to Appeals to the Commission from Decisions), and §815.18 of this chapter (relating to General Rules for Both Appeal Stages). As used in this section and in §815.17 and §815.18, the term "party" includes a person's or individual's representative. In this section, a reference to the term "supervisor of appeals" includes the supervisor's designee.(1) Presentation of appealed claims.(A) A party appealing from a determination made by an examiner under the provisions of the Act, shall file an appeal by hand delivery, mail, common carrier, facsimile (fax) transmission, or other method approved by the Agency in writing. A written appeal that is sent to the Agency should be addressed to the Texas Workforce Commission, 101 East 15th Street, Austin, Texas, 78778-0001, or faxed to the number provided in the determination. A written appeal may be hand delivered to the Texas Workforce Commission, 101 East 15th Street, Austin, Texas 78778-0001, a local office of the Agency, or an agent state, or a workforce center or an office of a Board. The appeal should identify the determination being appealed, the basis for the appeal, the name of the party appealing, and the date of the appeal. The provisions of §815.32 of this chapter (relating to Timeliness) shall determine on what date the appeal was filed.(B) Upon the scheduling of a hearing on an appeal or a petition to reopen, notice of the hearing shall be mailed to the parties at least five days before the date of the hearing. The notice shall identify the decision or determination appealed from and shall specify the time and date of the hearing, the party appealing, and the issue to be heard. If the hearing is an in-person hearing, the notice shall also specify the location of the hearing.(2) Disqualification of appeal tribunal. The essence of a fair hearing lies in the impartiality of the appeal tribunal. An appeal tribunal should be free not only of any personal interest or bias in the appeal before it, but also of any reasonable suspicion of personal interest. No appeal tribunal shall participate in the hearing of an appeal in which that tribunal has a personal interest in the outcome of the appeal decision. The appeal tribunal may withdraw from a hearing to avoid the appearance of impropriety or partiality. Challenges to the impartiality of any appeal tribunal may be heard and decided by the supervisor of appeals.(3) Hearing of appeal.(A) Consistent with §212.106 of the Act, all hearings shall be conducted informally and in a manner to ensure the substantial rights of the parties. All issues relevant to the appeal shall be considered and ruled upon. The parties to an appeal before an appeal tribunal may present evidence that may be material and relevant as determined by an appeal tribunal. The appeal tribunal shall examine parties and witnesses, if any, and may allow cross-examination to the extent the appeal tribunal deems necessary to afford the parties due process. The appeal tribunal, with or without notice to any of the parties, may take additional evidence that it deems necessary, provided that a party shall be given an opportunity to rebut the evidence if it is to be used against the party's interest.(i) In conducting a hearing, the appeal tribunal shall actively develop the record on the relevant circumstances leading to the separation for hearings involving the issue of work separation and, for hearings involving other issues, the relevant facts to resolve those issues. It is the responsibility of the appeal tribunal to ensure that all relevant issues are thoroughly explored at the hearing.(ii) The appeal tribunal shall ask any questions necessary to obtain pertinent facts concerning all events (such as job separation) that are at issue in the hearing.(B) The parties to an appeal, with the consent of the appeal tribunal, may stipulate in writing the facts involved. The appeal tribunal may decide the appeal on the basis of a stipulation or, in its discretion, may set the appeal for hearing and take any additional evidence it deems necessary to enable it to determine the appeal.(C) Hearings shall be conducted by telephone conference call unless the supervisor of appeals determines that an in-person hearing is necessary because a party with a physical impairment cannot effectively participate by telephone, because the nature of the evidence to be presented makes a hearing by telephone impractical, or because the supervisor of appeals otherwise determines that an in-person hearing is necessary. The rules and procedures in this chapter govern both in-person and telephone hearings. A party may request an in-person hearing by informally contacting, orally or in writing or by any other reasonable method of communication, the appeal tribunal or the supervisor of appeals before the scheduled time of the hearing and presenting information to support the request. The supervisor of appeals has the discretion to determine whether the party's request for an in-person hearing will be granted.(4) Adjournment, continuance, and postponement of hearing.(A) The appeal tribunal shall use its best judgment to determine when to grant a continuance or postponement of a hearing in order to secure all the evidence that is necessary and to be fair to the parties.(B) Either prior to or during a hearing, an appeal tribunal, on its own motion or on the motion of a party of interest, may continue, adjourn, or postpone a hearing. The continuance, adjournment, or postponement shall not be for the purpose of delaying the proceeding and may be granted due to illness of the appellant, death in the immediate family of the appellant, or a pending criminal prosecution of the appellant. A continuance, adjournment or postponement may also be granted at the request of the appellant or appellee when there is a need for an interpreter, religious observance, jury duty, court appearance, active military duty, or other reasons approved by the supervisor of appeals. Prior to the hearing, requests for a continuance or a postponement of a hearing may be made informally, either orally or in writing, to the appeal tribunal designated to hear the appeal or to the supervisor of appeals.(5) Reopening of hearing before appeal tribunal.(A) If a party fails to appear for a hearing, the appeal tribunal may hear and record the evidence of the party present and the witnesses, if any, and shall proceed to decide the appeal on the basis of the record unless there appears to be good reason for continuing the hearing. A copy of the decision shall be promptly mailed to the parties of interest with an explanation of the manner in which, and time within which a request for reopening may be submitted.(B) A party of interest to the appeal who fails to appear at a hearing may, within 14 days from the date the decision is mailed, petition for a new hearing before the appeal tribunal in the manner set out in subsection (1)(A) of this section. The petition should identify the party requesting the reopening, the applicable decision of the appeal tribunal, the date of the petition, and explain the reason for the failure to appear. The provisions of §815.32 of this chapter (relating to Timeliness) shall determine on what date the petition was filed. The petition shall be granted if it appears to the appeal tribunal that the petitioner has shown good cause for the petitioner's failure to appear at the hearing. In the event that an appeal to the Commission is filed before the filing of the petition for reopening by the appeal tribunal, the appeal shall be referred to the Commission for review.(C) For purposes of this section, the term "appear" shall mean participation by a party or a party's representative in the proceeding. Actions that may be considered as participation include offering testimony, examining witnesses, or presenting oral argument. If the hearing is a telephone hearing, a party or a party's representative shall appear at a hearing by calling on the date and at the time of the hearing and participating in the hearing proceedings. If the hearing is an in-person hearing, a party or a party's representative shall appear by being at the location of the hearing on the date and at the time scheduled for the hearing and participating in the hearing proceedings. Mere submission of written documents, whether sworn or unsworn, or observation of the proceedings shall not constitute an appearance.(6) The determination of appeals.(A) As soon as possible following the conclusion of a hearing of an appeal, the appeal tribunal shall issue its findings of fact and decision with respect to the appeal. The decision shall be in writing and shall reflect the name of the appeal tribunal who conducted the hearing and who rendered the decision. In the decision, the appeal tribunal shall set forth findings of fact and conclusions of law, with respect to the matters on appeal, and the reasons for the decision. Copies of the decision shall be mailed by the appeal tribunal to the parties of interest to the appeal. Upon request, courtesy copies may be mailed to other parties to the appeal.(B) At any time during the 14-day period from the date a decision on an appeal is mailed, unless a party of interest has already appealed to the Commission, the appeal tribunal or the supervisor of appeals may assume continuing jurisdiction over the appeal for the purpose of reconsidering the issues on appeal and issuing a corrected decision. During the period in which continuing jurisdiction is assumed, the appeal tribunal, after notice to the parties, may take any additional evidence or secure any additional information it deems necessary to issue a decision.</content><note type="source"><p>Source Note: The provisions of this §815.16 adopted to be effective November 6, 2000, 25 TexReg 11093; amended to be effective January 26, 2004, 29 TexReg 664.</p></note></section><section identifier="/us/state/tx/tac/t40/p20/c815/scB/s815.17"><num value="815.17">§815.17</num><heading>Appeals to the Commission from Decisions</heading><content>(a) The presentation of an appeal to the Commission.(1) A party of interest may appeal a decision of the Appeal Tribunal. A party appealing from a decision of an appeal tribunal shall file the appeal by hand delivery, mail, common carrier, facsimile (fax) transmission, or other method approved by the Agency in writing. A written appeal that is sent to the Agency should be addressed to the Texas Workforce Commission, 101 East 15th Street, Austin, Texas, 78778-0001, or faxed to the number provided in the decision. A written appeal may be hand delivered to the Texas Workforce Commission, 101 East 15th Street, Austin, Texas 78778-0001, a local office of the Agency, or an agent state, or a workforce center or an office of a Board. The appeal should identify the decision of the appeal tribunal being appealed, the basis for the appeal, the name of the party appealing, and the date of the appeal. The provisions of §815.32 of this chapter (relating to Timeliness) shall determine on what date the appeal was filed.(2) When an appeal to the Commission is filed, all evidence and records pertaining to the appeal shall be submitted to the Commission for its review.(b) Commission action may include one or more actions as described in this subsection.(1) The Commission may, without further hearing, affirm, reverse or modify any decision of an appeal tribunal on the basis of the record made before the appeal tribunal.(2) The Commission may grant a further hearing on the matter and notify the parties to appear before the Commission, or before a representative of the Agency designated to hold hearings for the Commission, at a specified time and place for the purpose of presenting additional evidence and arguments; or the Commission may direct an appeal tribunal to take additional evidence necessary for the proper disposition of the appeal. All hearings conducted by the Commission, or before a representative of the Agency designated to hold hearings for the Commission, shall be conducted in the manner prescribed by §815.16 of this chapter (relating to Appeals to Appeal Tribunals from Determinations). Upon completion of the taking of additional evidence, the complete record involved in the appeal shall be returned to the Commission for its decision.(3) The Commission may remand a case to the appeal tribunal for the appeal tribunal to hold a de novo hearing. The appeal tribunal shall set aside the prior appeal tribunal decision and issue a new decision. The new decision shall be subject to all the provisions relating to appeals contained in the Act, in this section, in §815.15 of this chapter (relating to Parties with Appeal Rights), in §815.16 of this chapter (relating to Appeals to Appeal Tribunals from Determinations), and in §815.18 of this chapter (relating to General Rules for Both Appeal Stages), just as any other appeal tribunal decision.(c) Assumption of jurisdiction on the Commission's own motion. Within 14 days following the mailing of a decision of an appeal tribunal, and in the absence of the filing of an appeal to the Commission by a party of interest, the Commission may on its own motion acquire jurisdiction of the appeal and act as though a party of interest had filed an appeal.(d) Cases removed from an appeal tribunal. The Commission may remove to itself any appeal pending before an appeal tribunal. In that event, the Commission may proceed to decide the case on the evidence previously submitted, may schedule a hearing conducted by the Commission or its designee, or may direct the appeal tribunal to take any additional evidence the Commission deems necessary.(e) The determination of appeals.(1) The Commission shall render its decision with respect to an appeal as soon as possible after reviewing the case. The decision shall be in writing and shall reflect the names of the members of the Commission who participated in the review.(2) If a decision of the Commission is not unanimous, the decision of the majority shall control, but the minority member may file a dissent from the decision.(3) A copy of the Commission's decision shall be mailed to the parties.(f) Motions for rehearing.(1) A motion for rehearing may be filed by hand delivery, mail, common carrier, facsimile (fax) transmission, or other method approved by the Agency in writing. A motion for rehearing that is sent to the Agency should be addressed to the Texas Workforce Commission, 101 East 15th Street, Austin, Texas, 78778-0001, or faxed to the number provided in the decision. A written motion may be hand delivered to the Texas Workforce Commission, 101 East 15th Street, Austin, Texas 78778-0001, a local office of the Agency, or an agency state, or a workforce center or an office of a Board. The provisions of §815.32 of this chapter (related to Timeliness) shall determine on what date the motion was filed.(2) A motion for rehearing shall not be granted unless each of the following three criteria is met:(A) there is an offering of new evidence, which was not presented at the appeal tribunal level;(B) there is a compelling reason why the evidence was not presented earlier; and(C) there is a specific explanation of how consideration of the evidence would change the outcome of the case.(3) Notwithstanding the provisions of paragraph (2) of this subsection, a rehearing may be granted in the following two situations.(A) When a party of interest did not appear before the appeal tribunal, nevertheless won at that level, and then received an adverse ruling at the Commission level, the Commission may grant a rehearing to consider whether there was good cause for the nonappearance. If good cause is found, the rehearing shall address the merits of the case.(B) When a solely jurisdictional or procedural problem is not detected or recognized until after the Commission decision has been issued, the Commission may take appropriate action to correct the problem at the motion for rehearing level.(4) The Commission shall deny a request for rehearing unless it can be shown there are substantial reasons for the Commission to grant the rehearing.</content><note type="source"><p>Source Note: The provisions of this §815.17 adopted to be effective November 6, 2000, 25 TexReg 11093.</p></note></section><section identifier="/us/state/tx/tac/t40/p20/c815/scB/s815.18"><num value="815.18">§815.18</num><heading>General Rules for Both Appeal Stages</heading><content>This section shall be applicable to appeals both to the appeal tribunal and to the Commission.(1) Issuance of subpoenas.(A) Subpoenas to compel the attendance of witnesses and the production of records for any hearing of an appeal may be issued at the direction of the Commission or its designee or an appeal tribunal. A subpoena may be issued either at the request of a party or on the motion of the Commission or its designee or the appeal tribunal. The party requesting a subpoena shall state the nature of the information desired, including names of any witnesses and the records that the requestor feels are necessary for the proper presentation of the case. The request shall be granted only to the extent the records or the testimony of the requested witnesses appears to be relevant to the issues on appeal.(B) A witness subpoenaed to appear before an appeal tribunal, the Commission or its designee, or a court may be paid a fee and mileage for the appearance. The fee shall be $20 per day, and for miles necessarily traveled to and returning from a hearing, the rate per mile shall be at the rate provided for state employees in the State Appropriations Act, or as otherwise required by law. The fee as provided in this section and the mileage shall be paid from the unemployment compensation administration fund upon proper certification of the appeal tribunal, the Commission or its designee, or the court, and upon certification of the witness that the fees and mileage are just, true, and unpaid.(2) Provision of Agency records.(A) Upon the request of a party to a proceeding, the Agency shall provide copies of all records pertaining to that proceeding, except for records subject to privileges under state or federal law or regulation. Other Agency records shall be produced only if the party specifies the exact information desired, and the necessity of the records to allow the party to properly present its claim; the production of records shall be subject to confidentiality limitations and privileges under state or federal law or regulation.(B) The Agency shall provide copies of the relevant separation and timeliness information in the Agency's custody to both parties with the Notice of Hearing, including:(i) all information received from the parties in response to, or in protest of, a claim for unemployment insurance;(ii) all fact-finding statements relating to the work separation; and(iii) the appeal from the determination of the work separation.(3) Representation before appeal tribunal and the Commission.(A) An individual who is a party to a proceeding may appear before an appeal tribunal or the Commission or its designee.(B) A partnership may be represented by any of its members or a duly authorized representative. Any corporation or association may be represented by an officer or a duly authorized representative.(C) Any party may appear by an attorney at law or by any other individual who is qualified to represent others.(D) The Commission or its designee or an appeal tribunal may refuse to allow any individual to represent others in any proceeding before it if the individual acts or speaks in an unethical manner or if the individual intentionally and repeatedly fails to observe the provisions of the Act or the rules of the Agency.(4) Removing a party from a proceeding. The Commission or its designee or an appeal tribunal may, after an appropriate warning, expel from any proceeding any individuals, whether or not a party, who fail to comport themselves in a manner befitting the proceeding. The Commission or its designee or an appeal tribunal may then continue with the proceeding, hear evidence, and render a decision on the appeal.(5) Appeal Information. An appeal tribunal decision sent to a party of interest, or the Commission's decision sent to a party, will include or be accompanied by a notice specifying the appeal rights of the parties, the procedure for filing further appeal, and the time period within which an appeal shall be filed.(6) Retention of Decisions. Copies of decisions of the Commission and of appeal tribunals shall be kept in accordance with the approved records retention schedule.</content><note type="source"><p>Source Note: The provisions of this §815.18 adopted to be effective November 6, 2000, 25 TexReg 11093; amended to be effective July 28, 2008, 33 TexReg 5982.</p></note></section><section identifier="/us/state/tx/tac/t40/p20/c815/scB/s815.19"><num value="815.19">§815.19</num><heading>Hearings Involving Forfeiture or Cancellation of Rights to Benefits</heading><content>Hearings with respect to forfeiture or cancellation of benefits and rights to benefits in situations potentially involving willful nondisclosure or misrepresentation as provided in the Act, §214.003, shall be conducted in a fair and impartial manner in accordance with the provisions of §815.15 of this chapter (relating to Parties with Appeal Rights), §815.16 of this chapter (relating to Appeals to Appeal Tribunals from Determinations), §815.17 of this chapter (relating to Appeals to the Commission from Decisions), and §815.18 of this chapter (relating to General Rules for Both Appeal Stages), except to the extent that the sections are clearly inapplicable.</content><note type="source"><p>Source Note: The provisions of this §815.19 adopted to be effective November 6, 2000, 25 TexReg 11093.</p></note></section><section identifier="/us/state/tx/tac/t40/p20/c815/scB/s815.20"><num value="815.20">§815.20</num><heading>Claim for Benefits</heading><content>An unemployed individual who has no current benefit year and who wishes to claim benefits shall report to a representative of the Agency in a manner, including telephonic, Internet, or other means, that the Agency may approve, and file a claim for benefits. Before receiving benefits a claimant shall register for work with the public employment office, including workforce centers, serving the individual's area of residence, as provided in paragraphs (3) and (7) of this section, unless exempt from the requirement.(1) In case of a mass layoff by an employer, if the last employing unit involved makes an appropriate request, the Agency may accept, in lieu of an initial claim from each individual, a list furnished by the last employer of the individuals to be laid off and who wish to file initial claims for benefits. The list shall reflect, with respect to each individual, all information normally required on the initial claim by the Agency, except the reason for separation. If the Agency approves the request, the listing then may be used by the Agency as an initial claim for each individual on the list.(2) After an individual files a valid initial claim, which establishes the claimant's benefit year, the claimant may, during the benefit year, file subsequent continued claims, weekly or biweekly, by telephonic means, facsimile (fax) transmission, mail, common carrier, Internet, or other means as the Agency may approve in writing, but at intervals of no less than seven consecutive days. A claimant shall file all claims by telephonic means, in writing, or orally, during the hours, days, and weeks directed by Agency representatives. Internet filing is available 24 hours each day. If at any time during the benefit year, more than 30 days have elapsed since the filing of the claimant's last claim, the claimant shall file an additional or reopened claim for benefits as defined in §815.1 (relating to Definitions) and shall comply with all eligibility requirements for the claims. A claimant who exhausts regular benefits may file continued claims for extended benefits as referenced in §815.26 (relating to Extended Benefit Period Announcement) in the same manner in which the claimant filed claims for regular benefits, but the claimant's claims for extended benefits may be for benefit periods subsequent to the end of the claimant's benefit year.(3) An individual who files a claim for benefits shall comply with all requirements of the public employment office in which the claimant files an application for work that are necessary to establish a valid registration for work in that public employment office. The claimant shall comply with an Agency representative's requests, whether oral or written, that are reasonably designed to inform the claimant of the claimant's rights and responsibilities in filing a claim for benefits. The claimant also shall:(A) provide evidence, upon request, to establish the claimant's correct Social Security account number;(B) file all claims in the manner directed by the Agency, whether on Agency-provided forms or by telephonic, Internet, or other means approved by the Agency for claims purposes;(C) supply all information within the claimant's knowledge, which is necessary to determine the claimant's rights to benefits under the Act;(D) sign all provided claims forms personally for the claims that are filed in person or by mail or common carrier; and(E) submit all claims filed by mail, common carrier, hand delivery, or by other means, including telephonic or Internet, as instructed by the Agency, in accordance with the terms of this section.(4) An individual may file a claim by mail, common carrier, hand delivery, or by other means as the Agency may approve, in writing in any of the following circumstances:(A) Conditions exist that make it impracticable for the Agency representative to take claims by telephonic, Internet, or other approved means; or(B) The Agency finds that the claimant has good cause for failing to file a claim by telephonic, Internet, or other approved means.(5) If a claimant's answer to a question on a claim filed with the Agency creates uncertainty about the claimant's credibility, or a lack of understanding, or the claimant's record shows that the claimant previously filed a fraudulent claim; then the claimant may be required to file written claims on an Agency-approved form in a manner prescribed by the Agency in writing. A claimant required to file a claim under this section shall continue to file the claim in the prescribed manner, until the Agency determines that the reason no longer exists and directs otherwise in writing.(6) The following provisions shall apply to the disqualification provisions of the Act, Chapter 207, Subchapter C, concerning disqualification for benefits.(A) The term "employment" in the Act, Chapter 207, Subchapter C, shall be interpreted and applied to mean employment as defined in the Act.(B) The disqualification to be imposed against an individual who has left work to move with a spouse, as provided in the Act, §207.045(c), shall be construed to mean both a benefits (money payments) and a benefit period (time period) disqualification; and such disqualification shall be restricted in its application to apply only to the range from six weeks to 25 weeks.(C) Agency employees are authorized to administer oaths to claimants in an effort to verify that the requalifying requirements of the Act, Chapter 207, Subchapter C, concerning employment or earnings, have been satisfied.(D) An employer identified as the employer by whom the claimant was employed, for purposes of satisfying the requalifying requirements of the Act, Chapter 207, Subchapter C, shall be afforded 14 days within which to respond to notice by the Agency of the filing of an additional claim by the claimant.(E) In order to satisfy the requirement of the Act, Chapter 207, Subchapter C, concerning returning to employment and working for six weeks, a "work week" shall be defined as seven consecutive days during which the claimant has worked at least 30 hours.(F) Disqualifying separations, new benefit year, and extended benefit period.(i) A claimant filing an initial claim, continued claim, or additional claim shall be disqualified from receiving benefits if the separation from the claimant's last work is a disqualifying separation as defined in the Act, Chapter 207.(ii) If a work separation in a previous benefit year is the last separation prior to a claimant's filing an initial claim that creates a new benefit year, then that work separation may result in a disqualification in the new benefit year in accordance with the provisions of the Act, Chapter 207.(iii) A disqualification resulting from a work separation in a benefit year shall continue during the extended benefit period until:(I) the extended benefit period is terminated;(II) the claimant qualifies to file a new initial claim; or(III) the claimant requalifies in accordance with the provisions of the Act, Chapter 207, under which the disqualification was imposed.(7) A claimant shall be eligible to receive benefits with respect to any week only if the individual demonstrates the availability for work required by the Act, §207.021(a)(4), and, if required by §207.021(a)(8), by participating in reemployment services, including, but not limited to, job search assistance, if the claimant has been determined to be likely to exhaust regular benefits and needs reemployment services pursuant to a profiling system established by the Agency.(8) The following categories of claimants are exempt from the requirement to register for work:(A) individuals on temporary layoff with a definite date to return to work;(B) members in good standing in unions that maintain a hiring hall; and(C) individuals participating in a Shared Work plan as defined in the Act, Chapter 215.(9) Withholding from Benefits for Federal Income Tax.(A) An individual filing a new claim for unemployment compensation shall, at the time of filing the claim, be advised that:(i) unemployment compensation is subject to federal, state, and local income tax;(ii) requirements exist pertaining to estimated tax payments;(iii) the individual may elect to have federal income tax deducted and withheld from the individual's payment of unemployment compensation at the amount specified in the federal Internal Revenue Code; and(iv) the individual shall be permitted to change a previously elected withholding status.(B) Amounts deducted and withheld from unemployment compensation shall remain in the unemployment fund until transferred to the federal taxing authority as a payment of income tax.(C) The Agency shall follow all procedures specified by the United States Department of Labor and the federal Internal Revenue Service pertaining to deducting and withholding of income tax.(D) Amounts shall be deducted and withheld under this section only after amounts are deducted and withheld under any other provisions of the Act.(10) An employer's protest to an initial, additional, or continued claim made in accordance with the Act, §208.004, may be delivered by telephonic means, which includes a verification procedure approved by the Agency in writing, mail, common carrier, facsimile (fax), Internet, or other means approved by the Agency in writing and as prescribed in the Agency's notice of claim form.</content><note type="source"><p>Source Note: The provisions of this §815.20 adopted to be effective November 6, 2000, 25 TexReg 11093; amended to be effective February 19, 2007, 32 TexReg 628.</p></note></section><section identifier="/us/state/tx/tac/t40/p20/c815/scB/s815.21"><num value="815.21">§815.21</num><heading>Interstate Claims</heading><content>This section shall govern the Agency in its administrative cooperation with other states adopting a similar rule or regulation for the payment of benefits to interstate claimants, any provision of any other rule to the contrary notwithstanding.(1) Definitions. As used in this section, the following words and terms shall have the following meanings, unless the context clearly indicates otherwise.(A) Agent state--Any state from which or through which an individual files a claim for benefits from another state.(B) Benefits--The compensation payable to an individual with respect to the individual's unemployment, under the unemployment insurance law of any state.(C) Interstate benefit payment plan--The plan approved by the Interstate Conference of Employment Security Agencies under which benefits shall be payable to unemployed individuals absent from the state (or states) in which benefit credits have been accumulated.(D) Interstate claimant--An individual who claims benefits under the unemployment insurance law of one or more liable states through the facilities of an agent state, or directly with the liable state. The term "interstate claimant" shall not include any individual who customarily commutes from a residence in an agent state to work in a liable state unless the Agency finds that this exclusion would create undue hardship on the claimants in specified areas.(E) Liable state--Any state against which an individual files, through another state, a claim for benefits.(F) State--Includes the District of Columbia, Puerto Rico, and the Virgin Islands.(G) Week of unemployment--Includes any week of unemployment as defined in the law of the liable state from which benefits with respect to the week are claimed.(2) Registration for work.(A) The agent state shall register for work each claimant who files through the agent state, or upon notification of a claim filed directly with the liable state, as required by the law, regulations, and procedures of the agent state. The registration shall be accepted as meeting the registration requirements of the liable state.(B) Each agent state shall duly report, to the liable state in question, each interstate claimant who fails to meet the registration/re-employment assistance reporting requirements of the agent state.(3) Benefit rights of interstate claimants.(A) If a claimant files a claim against any state, and it is determined by the state that the claimant has available benefit credits in the state, then claims shall be filed only against the state as long as benefit credits are available in that state. Thereafter, the claimant may file claims against any other state in which there are available benefit credits.(B) For the purposes of this section, benefit credits shall be deemed to be unavailable whenever benefits have been exhausted, terminated, or postponed for an indefinite period or for the entire period in which benefits would otherwise be payable, or whenever benefits are affected by the applications of a seasonal restriction.(4) Claims for benefits.(A) Claims for benefits or waiting-period credit filed by an interstate claimant directly with the liable state shall be filed in accordance with the liable state's procedures. Claims shall be filed in accordance with the type of week in use in the agent state. Any adjustments required to fit the type of week used by the liable state shall be made by the liable state on the basis of consecutive claims filed.(B) Claims shall be filed in accordance with the agent state's regulations for intrastate claims in the local employment offices, affiliated sites, one-stop centers, or at an itinerant service point or by mail, common carrier or by other means, including telephonic or electronic means, as the Agency may approve.(i) With respect to claims for weeks of unemployment in which an individual was not working for the individual's regular employer, the liable state shall, under circumstances which it considers good cause, accept a continued claim filed up to one week or one reporting period late. If a claimant files more than one reporting period late, an initial interstate claim shall be used to begin a claim series, and no continued claim for a past period shall be accepted.(ii) With respect to weeks of unemployment during which an individual is attached to the individual's regular employer, the liable state shall accept any claim which is filed within the time limit applicable to the claims under the law of the agent state.(5) Determination of claims.(A) The agent state shall, in connection with each claim filed by an interstate claimant, ascertain and report to the liable state in question the facts relating to the claimant's availability for work and eligibility for benefits as are readily determinable in and by the agent state.(B) The agent state's responsibility and authority in connection with the determination of interstate claims shall be limited to investigation and reporting of relevant facts and the reporting of relevant facts pertaining to each claimant's failure to register for work or report for re-employment assistance as required by the agent state. The agent state shall not refuse to take an interstate claim.(6) Appellate procedure.(A) The agent state shall afford all reasonable cooperation in the taking of evidence and the holding of hearings in connection with appealed interstate benefit claims.(B) With respect to the time limits imposed by the law of a liable state other than Texas, upon the filing of an appeal in connection with a disputed claim, whether or not the appeal is timely shall be determined by the liable state by reference to that state's law, regulations, or policies and practices. In interstate appeals in which Texas is the liable state, whether or not the appeal is timely shall be determined by reference to relevant provisions of the Texas Unemployment Compensation Act and current Agency policies and precedent decisions applicable to intrastate appeals.(C) The liable state shall conduct hearings in connection with appealed interstate benefit claims. The liable state may contact the agent state for assistance in special circumstances.(7) Canadian claims. This section shall apply in all its provisions to claims taken in and for Canada.(8) Notification of interstate claim. The liable state shall notify the agent state of each initial claim, reopened file, claim transferred to interstate status, and each week claim filed from the agent state using uniform procedures and record format pursuant to the Interstate Benefit Payment Plan.</content><note type="source"><p>Source Note: The provisions of this §815.21 adopted to be effective November 6, 2000, 25 TexReg 11093.</p></note></section><section identifier="/us/state/tx/tac/t40/p20/c815/scB/s815.22"><num value="815.22">§815.22</num><heading>Special Claim Situations</heading><content>(a) For adequate cause shown, the Agency may permit retroactive or backdated work registrations and may permit the filing of retroactive or backdated work registrations and may permit the filing of retroactive or backdated claims in order to prevent hardship or injustice. The work registrations and claims shall have the same effect as though prepared and filed on the earlier date. In the event a request for backdating a claim is approved prior to the filing of the claim, a claimant must file the backdated claim within 60 days of the date the backdating was authorized in order for the claim to be valid.(b) On a finding by the executive director, or the executive director's designee, that a foreign conflict creates an emergency situation which prevents the filing of claims in accordance with all of the provisions of §815.20 of this chapter (relating to Claim for Benefits) and that the emergency is likely to continue for an extended period, the executive director may permit the filing and payment of claims not meeting all of the requirements of §815.20 of this chapter (relating to Claim for Benefits). However, those requirements may be relaxed only to the extent that the executive director finds necessary to prevent hardship or injustice that would otherwise be caused by the emergency.</content><note type="source"><p>Source Note: The provisions of this §815.22 adopted to be effective November 6, 2000, 25 TexReg 11093.</p></note></section><section identifier="/us/state/tx/tac/t40/p20/c815/scB/s815.23"><num value="815.23">§815.23</num><heading>Record of Work and Wages Required of Claimants</heading><content>An individual who has registered, in accordance with §815.20 of this chapter (relating to Claim for Benefits), for work and filed a claim shall keep an accurate record of any work which the claimant has performed during any day within a benefit period regardless of whether the work constitutes "employment" as defined in the Act. The record shall include the names and addresses of the individuals or persons for whom the claimant worked, the total remuneration earned, and the number of hours worked during the benefit period. All claimants shall provide the information at the time a continued or additional claim is filed, in the manner which the Agency may direct.</content><note type="source"><p>Source Note: The provisions of this §815.23 adopted to be effective November 6, 2000, 25 TexReg 11093.</p></note></section><section identifier="/us/state/tx/tac/t40/p20/c815/scB/s815.24"><num value="815.24">§815.24</num><heading>Notice of Appeal Rights</heading><content>Each notice of determination which the Agency is required to furnish to the parties shall, in addition to stating the decision and its reasons, include a notice specifying the party's appeal rights. The notice of appeal rights shall state clearly the place and manner for taking an appeal from the determination and the period within which an appeal may be taken. This section does not grant appeal rights to a party that is not a party of interest.</content><note type="source"><p>Source Note: The provisions of this §815.24 adopted to be effective November 6, 2000, 25 TexReg 11093.</p></note></section><section identifier="/us/state/tx/tac/t40/p20/c815/scB/s815.25"><num value="815.25">§815.25</num><heading>Approval of Training</heading><content>(a) The Agency shall approve training, if:(1) there is no longer substantial and recurring demand for the individual's skills, and the lack of employment opportunities in occupations requiring those skills is expected to continue for an extended period of time, and the individual has no other skill for which there is an expectation of reemployment in a reasonable period; and(2) the training will enhance the individual's ability to secure stable employment and earning potential in an occupation for which there is substantial and recurring demand.(b) An individual shall be in approved training if the Agency approves the training for the individual and the individual is attending the training as shown by the following:(1) The individual and/or the training facility agrees to furnish evidence upon request of the Agency that the individual is regularly attending the training course and is satisfactorily performing assignments as a trainee; and(2) The individual affirms at the time of the claim certification that the individual has attended the training course during the given training week or had good cause for the individual's failure to do so.(c) The funding source of the training shall not affect the approval of the training except that training under the auspices of the Workforce Investment Act; the Texas Department of Assistive and Rehabilitative Services; the Texas Department of Aging and Disability Services; federal or state veterans' services, or any other program specifically designated by the Agency shall be considered approved for the purposes of the Act §207.022.(d) The Agency shall not deny approval of training solely because the individual resides outside of the state. Agency staff may rely upon the recommendation of the agent state regarding whether the training is approved.(e) The Commission shall develop procedural guidelines for use by Agency staff and the Boards that are consistent with the requirements of this section. Procedures may include, but are not limited to:(1) using a statewide or Board-level demand or targeted occupations list to determine whether there is substantial and recurring demand for an occupation or industry; and(2) using the Agency's job-matching system to assess the individual's existing skills when determining the individual's likelihood to return to an occupation or industry requiring those skills.</content><note type="source"><p>Source Note: The provisions of this §815.25 adopted to be effective September 20, 2010, 35 TexReg 8504.</p></note></section><section identifier="/us/state/tx/tac/t40/p20/c815/scB/s815.26"><num value="815.26">§815.26</num><heading>Extended Benefit Period Announcement</heading><content>When the Agency receives official notice or determines that an extended benefit period will become effective in this state, or that an extended benefit period in effect in this state will be terminated, the Agency shall make an announcement of this fact through the available news media. The announcement shall contain:(1) the beginning or ending date of the extended benefit period, whichever is appropriate;(2) in the case of an extended benefit period that is about to begin, a statement of who may be potential beneficiaries of extended benefits during the extended benefit period; and(3) a statement to the effect that any individual who wishes to file a claim for extended benefits shall file the claim in the same manner in which the claimant would file a claim for regular benefits, except that the claimant may file retroactive claims for extended benefits during the first 21 days after the beginning date of the extended benefit period or during the first 21 days after the date of the announcement of the extended benefit period, whichever is later.</content><note type="source"><p>Source Note: The provisions of this §815.26 adopted to be effective November 6, 2000, 25 TexReg 11093.</p></note></section><section identifier="/us/state/tx/tac/t40/p20/c815/scB/s815.27"><num value="815.27">§815.27</num><heading>Provisions Applicable to Extended Benefits</heading><content>(a) Except where the result would be inconsistent with the purpose of the provisions for extended benefits in the Act, the terms and conditions of the Act and the rules in this chapter, which apply to claims for, and payment of, regular benefits shall apply to claims for, and payment of extended benefits, including, but not limited to:(1) claim filing, claimant reporting, and registration for work;(2) information to claimants;(3) notices to claimants and to employers, as appropriate, including notice to claimants as to the amount and duration of extended benefits for which they qualify;(4) determinations, redeterminations, appeals, and reviews;(5) the week for which benefits are paid;(6) ability to work, availability for work, and search for work; and(7) disqualifications, except for the provisions of the Act, Chapter 209, Subchapter C, concerning failure to accept any offer of suitable work or failure to apply for any suitable work when so directed by the Agency.(b) Provisions of the Act which are not applicable to payment of extended benefits are those relating to:(1) the waiting period;(2) monetary qualifying requirements; and(3) computation of weekly and total regular benefits.</content><note type="source"><p>Source Note: The provisions of this §815.27 adopted to be effective November 6, 2000, 25 TexReg 11093.</p></note></section><section identifier="/us/state/tx/tac/t40/p20/c815/scB/s815.28"><num value="815.28">§815.28</num><heading>Work Search Requirements</heading><content>(a) Purpose. The purpose of this rule is to describe the work search requirements and process that must be met for claimants to continue to receive unemployment compensation benefits. A claimant is required to register for work, to actively seek work and be available for work, as well as accept suitable work. The rule also describes the process to be utilized by Local Workforce Development Boards (Boards) when formulating the numerical weekly work search contact requirements. (1) A claimant shall be considered available for work during the time the claimant is making a reasonable search for suitable work as defined by this section. (A) Work registration alone does not establish that the claimant is making a reasonable search for suitable work. (B) The claimant shall make a personal and diligent search for work. (C) Unreasonable limitations by a claimant as to salary, hours, or conditions of work indicate that a claimant is not making a reasonable search for suitable work. (D) The Agency expects each claimant to act in the same manner as a prudent person who is out of work and seeking work. (E) This section shall not apply to: (i) individuals participating in a Shared Work plan, §215.041(c) of the Act; (ii) individuals participating in Agency approved or Trade Act training, §207.022 and §207.023 of the Act; (iii) individuals on temporary layoff with a definite date to return to work that is within eight weeks or less from the date of layoff; (iv) individuals on temporary layoff with a definite return to work date that is within eight to 12 weeks from the date of layoff, provided the exemption from work search requirements is explicitly requested in writing by the separating employer; (v) individuals on temporary layoff with a definite return to work date that is more than 12 weeks from the date of layoff provided that a waiver from work search requirements is requested by the separating employer and granted by the Agency Executive Director. The Executive Director's decision is subject to review in any benefits appeal where ineligibility results from the decision. The requesting employer is a party of interest to any such appeal, as described in §815.15(c)(6) of this subchapter; (vi) individuals who are members in good standing of a union that maintains a nondiscriminatory hiring hall, as that term is defined by the Landrum-Griffin Act, and who maintain contact with and use the placement services of the hiring hall; (vii) individuals who perform jury service for a period of three days or longer, during the weeks in which the individual is actively performing jury service; or (viii) individuals who are otherwise exempted by law. (F) This section shall apply to all claimants unless specifically exempted, including: (i) recipients of state extended unemployment benefits, who are required to actively seek work under Texas Labor Code §209.043; (ii) recipients of federal extended unemployment benefits, except that if the legislation establishing such benefits or administrative directives for administering such benefits include work search requirements, which are in conflict with those established herein, the federal requirements or administrative directives shall apply; or (iii) individuals who are engaged in efforts to establish themselves in a self-employment venture. (2) The reasonableness of a search for work will, in part, depend upon the employment opportunities in the claimant's labor market area. A work search that may be appropriate in a labor market area with limited opportunities may be totally unacceptable in an area with greater opportunities. (b) General Work Search Requirements. A claimant shall make the minimum number of weekly work search contacts as required by the Agency. (1) The claimant will be notified of the minimum number of weekly work search contacts required. (2) If there is a change to the minimum weekly number of work search contacts, the claimant shall be notified of the change in writing by U.S. mail. (3) Claimants are required to maintain weekly work search contact logs and may be required to submit weekly work search contact logs, using an acceptable method as determined by the Agency. (4) The Agency shall provide to and publish guidelines for claimants describing the types of activities that may constitute a work search contact for purposes of a productive search for suitable work. Examples of such activities include, but are not limited to: (A) utilizing employment resources available at Workforce Centers that directly lead to obtaining employment, such as: (i) using local labor market information; (ii) identifying skills the claimant possesses that are consistent with targeted or demand occupations in the local workforce development area; (iii) attending job search seminars, or other employment workshops that offer instruction in developing effective work search or interviewing techniques; (iv) obtaining job postings and seeking employment for suitable positions needed by local employers; (B) attending job search seminars, job clubs, or other employment workshops that offer instruction in improving individuals' skills for finding and obtaining employment; (C) interviewing with potential employers, in-person or by telephone; (D) registering for work with a private employment agency, placement facility of a school, or college or university if one is available to the claimant in his or her occupation or profession; and (E) other work search activities as may be provided in Agency guidelines. (5) Failure to comply with work search requirements, without good cause, could result in an ineligibility determination that may result in a loss of benefits. (c) Number of Work Search Requirements. The minimum number of weekly contacts assigned shall be three work search contacts for all claimants, unless otherwise provided by this section. (d) A Board, based on specific local labor market information and conditions, may advise the Agency that a claimant residing in the workforce area is required to make more than three work search contacts per week. (e) Rural Counties. In counties designated as "rural" by the Agency the Board may reduce the minimum number of weekly work search contacts in response to specific local labor market information and conditions. "Rural" counties are defined as those counties having a population estimated by the Texas State Data Center at Texas A&M University to be not more than 10,000 as of July 1 of the most recent year for which county population estimates have been published. (f) Local Boards shall have the flexibility within the guidelines provided in this section to formulate the appropriate minimum number of weekly work search contacts for their respective workforce area, using appropriate guidelines to be developed in consultation with Agency staff, and shall maintain written documentation. Boards shall review the minimum number of weekly work search contacts for each workforce area at least once per year on a date to be determined by the Agency. (g) Local Policies. A Local Board shall develop, adopt, and modify its policies to promulgate the appropriate methodology for formulating the appropriate number of work search contacts for the workforce area in a public process consistent with the procedures required for compliance with the Texas Open Meetings Act, Texas Government Code, Chapter 551 et seq. A Board shall maintain written copies of the policies that are required by federal and state law or as requested by the Agency and make such policies available to the Agency and the public upon request. A Board shall also submit any modifications, amendments, or new policies to the Agency no later than two weeks after adoption of the policy by the Board.</content><note type="source"><p>Source Note: The provisions of this §815.28 adopted to be effective December 8, 2003, 28 TexReg 10968; amended to be effective August 15, 2004, 29 TexReg 7738.</p></note></section><section identifier="/us/state/tx/tac/t40/p20/c815/scB/s815.32"><num value="815.32">§815.32</num><heading>Timeliness</heading><content>(a) Unless otherwise specified in this chapter, appeals time frames are generally determined within these guidelines:(1) as established in the Texas Unemployment Compensation Act; and(2) are extended one working day following a deadline which falls on a weekend, an official state holiday, a state holiday for which minimal staffing is required, or a federal holiday.(b) Presumption of receipt. A document mailed to a party is presumed to be received if the document was mailed to the complete, correct address of record unless:(1) there is tangible evidence of nondelivery, such as the document being returned to the Agency by the United States Postal Service; or(2) credible and persuasive evidence is submitted to the Agency to establish nondelivery, delayed delivery, or misdelivery of the document.(c) Address for proper mailing.(1) For a claimant, the proper address is the address given by the claimant to the Agency subject to later changes given by the claimant to the Agency.(2) For an employer, the proper address is determined under §815.3 of this chapter (relating to Addresses) unless the employer has specifically requested a mailing address change in a protest, appeal, or other correspondence, or at a hearing.(3) For governmental employers, the group account address shall be used, if applicable.(4) Mailing of notice to a party representative, whether or not an attorney, is required to bind parties to timeliness rules.(5) If a party provides the Agency with the party's own incorrect mailing address, an Agency mailing to that address shall be a proper mailing, even if there is proof that the document was never received by the party.(6) The Agency is not responsible for effectuating an address change when it is listed in correspondence or merely listed by a party on an appeal filed in person, unless the Agency is specifically directed by the party to mail subsequent notices to the address.(7) If the Agency improperly addresses a document, the time frame for filing an appeal shall begin to run as of the actual date of receipt by the party, even if received by the party within the statutory appeal time frame. However, this subsection does not apply if the party provided an incorrect address under subsection (c)(5) of this section.(8) Addresses shall be positively verified by hearing officers, who shall also explain to parties the importance of the address being correct and the fact that subsequent appeal deadlines run from the date of mailing, not the date of receipt by the party.(d) Receipt Date.(1) Receipt date is date of receipt at the earliest of an Agency, or agent state office, or a workforce center or a Board office.(2) If an appeal is received at an agent state office or a workforce center or a Board office(s), but the appeal is not dated by the receiving entity, and is forwarded to the appeals (or interstate) processing unit and is dated by that unit, then the appeal date shall be set at three business days earlier than receipt in appeals (or interstate).(e) Appeal Date.(1) The appeal date for a document received via United States Postal Service shall be the postmark date or the postal meter date (where there is only one or the other); but where there is both a postmark date and a postal meter date and they conflict, the postmark date controls.(2) The date a document is delivered to a common carrier (such as Federal Express, Purolator, or other common carrier) controls as the date the appeal is perfected. (Delivery to carrier is equivalent to delivery to United States Postal Service; date of delivery to carrier is equivalent to postmark date.)(3) An appeal received in an envelope bearing no legible postmark or postal meter date shall be considered to be perfected three business days before receipt by the Agency, or on the date of the document, if the document date is less than three days earlier than date of receipt.(4) If the mailing envelope is lost after delivery to the Agency, appeal document date shall control. If the document is undated, appeal date shall be three business days before receipt by the Agency, subject to sworn testimony establishing an even earlier date.(5) If a determination, decision or other written material provides for an appeal by fax, or in an electronic form approved by the Agency in writing, then the appeal date shall be the date and time the appeal is received by the Agency.(f) Sworn testimony can establish a date for an appeal being perfected, which is earlier than the dates established under subsections (d) and (e) of this section. Only in the face of extremely credible evidence shall a party be allowed to establish an appeal date earlier than a postal meter date, or the date of the document itself. When a party alleges filing an appeal which the Agency has never received, the party must present credible and persuasive testimony of timely filing corroborated by testimony of a disinterested party and/or physical evidence specifically linked to the appeal in question.(g) Credible and persuasive testimony subject to cross-examination establishing timeliness allows the Agency or the appeal tribunal to rule on the merits.(h) If a party submits an address change to the Agency during the appeal period (but after the Agency document was mailed to the old address), address change date shall control and shall be considered as the date the appeal was perfected.(i) Exceptions. The substantive nature of certain cases causes, or creates, exceptions to the general timeliness rules, even where notice is proper or response is clearly late.(1) Cases fitting into the wage credits/validity of claim category present a one-time exception to the timeliness rules. A late appeal to the appeal tribunal on the issues, if within the same benefit year, shall be deemed timely. However, once a decision has been issued by the appeal tribunal, the appeal time limits in the Act, Chapter 212, shall apply.(2) In cases dealing with the imposition of fraud and forfeiture provisions of the Act, §214.003, there is a one-time exception at the appeal tribunal stage, if:(A) the claimant is out of claim status; and(B) if the claimant has moved.(3) In cases where there is a continuing ineligibility or condition and there is a late appeal, the appeal tribunal or the Commission can assume jurisdiction 14 days before the late appeal, and rule on the merits if the facts so warrant.(4) If a chargeback ruling is required, but is omitted, the determination or decision does not become final for the employer; it does become final for the claimant.(5) In a case where it is ultimately determined that there has been no separation from employment, all rulings are void and all rulings can be set aside at any time.(6) When there has been a ruling protecting an employer's account on a separation in one benefit year, the employer is not required to timely protest or appeal a ruling on the same separation in a subsequent year.(7) Timeliness sanctions shall not apply when an Agency representative or a representative of a Board or an agent state representative has given misleading information on appeal rights to a party, if the party:(A) specifically establishes how the party was misled; or(B) specifically establishes what the party was told that was misleading and, if possible, by whom the party was misled.(8) There is no good cause exception to the timeliness rules.</content><note type="source"><p>Source Note: The provisions of this §815.32 adopted to be effective November 6, 2000, 25 TexReg 11093.</p></note></section></subchapter><subchapter identifier="/us/state/tx/tac/t40/p20/c815/scC"><num value="C">SUBCHAPTER C</num><heading>TAX PROVISIONS</heading><section identifier="/us/state/tx/tac/t40/p20/c815/scC/s815.101"><num value="815.101">§815.101</num><heading>Scope</heading><content>The purpose of this subchapter is to set forth the provisions governing employers' interaction with the Tax Department as provided by the Act. The rules contained in this subchapter may be applicable to an Unemployment Insurance function, except that to the extent of any conflict, the program-specific rule will govern.</content><note type="source"><p>Source Note: The provisions of this §815.101 adopted to be effective November 6, 2000, 25 TexReg 11093.</p></note></section><section identifier="/us/state/tx/tac/t40/p20/c815/scC/s815.102"><num value="815.102">§815.102</num><heading>Mailing Dates and Use of Forms</heading><content>(a) Whenever an individual or an employing unit reports or applies to the Agency in writing upon an Agency form, for purposes of determining the date the writing is submitted, the following dates shall control, in the order listed:(1) the United States Postal Service postmark date, if legible;(2) the postal meter date, if legible;(3) a writing received in an envelope without a legible postmark or postal meter date shall be considered to have been sent three business days before receipt by the Agency, or on the date of the writing, if the date of the writing is less than three days earlier than date of receipt; or(4) if the mailing envelope is lost after delivery to the Agency, the date on the writing shall control. If the writing is undated, the date the writing was sent shall be three business days before receipt by the Agency, subject to sworn testimony establishing the mailing date.(b) The date the payment of contributions or reimbursements are received shall be determined in accordance with the provisions of this section.(c) If the writing was filed in an electronic form approved by the Agency in writing, the date and time stamp the transmission was received by the Agency shall establish the mailing date.(d) If delivered by a common carrier (i.e., Federal Express, Purolator, or other common carrier) the receipt date shall be the date the writing is delivered to the Common Carrier.(e) If delivered in person, the date the writing is delivered to the Agency's Central Tax Office in Austin or any Agency Tax Office located throughout the state.</content><note type="source"><p>Source Note: The provisions of this §815.102 adopted to be effective November 6, 2000, 25 TexReg 11093.</p></note></section><section identifier="/us/state/tx/tac/t40/p20/c815/scC/s815.103"><num value="815.103">§815.103</num><heading>Digital Signatures</heading><content>(a) Within this subchapter a digital signature may be used to authenticate a written electronic communication sent to the Agency if it complies with the following factors:(1) it is unique to the person or individual using it;(2) it is capable of independent verification;(3) it is under the sole control of the person or individual using it; and(4) it is transmitted in a manner that shall make it infeasible to change the data in the communication without invalidating the digital signature.(b) In this section, digital signature means an electronic identifier intended by the person or individual using it to have the same force and effect as the use of a manual signature.</content><note type="source"><p>Source Note: The provisions of this §815.103 adopted to be effective November 6, 2000, 25 TexReg 11093.</p></note></section><section identifier="/us/state/tx/tac/t40/p20/c815/scC/s815.104"><num value="815.104">§815.104</num><heading>Remuneration Other than Cash</heading><content>(a) If any part of an individual's wages is received in any medium other than cash, the reasonable cash value of the remuneration other than cash shall be deemed for all purposes of the Act to be either:(1) the amount which is agreed upon between the employing unit and the individual if:(A) the terms of the agreement are reported to the Agency; and(B) the Agency determines that the agreed value or amount is reasonable; or(2) the cash value is established to the satisfaction of the Agency.(b) If the Agency determines that the amount agreed upon is unreasonable, or if the employing unit and the individual fail to agree upon an amount; or if the employing unit fails to report the terms of an agreement to the Agency, and the employing unit fails to show the cash value of the noncash remuneration prior to the due date of contributions with respect to the wages, the Agency shall fix an amount or value after considering all available information and evidence; and the amount fixed by the Agency shall be deemed for all purposes of the Act to be the cash value of the wages received in any medium other than cash.</content><note type="source"><p>Source Note: The provisions of this §815.104 adopted to be effective November 6, 2000, 25 TexReg 11093.</p></note></section><section identifier="/us/state/tx/tac/t40/p20/c815/scC/s815.105"><num value="815.105">§815.105</num><heading>Expense Reimbursements</heading><content>Allowances, advances of reimbursements paid to an individual in employment for traveling, and other bona fide expenses incurred or reasonably expected to be incurred in the business of the individual's employer shall not be treated as wages, provided a separate payment is made for the expenses, or specific accounting records are kept indicating the separate amounts where a single payment covers both wages and expenses combined, and provided further that the amount of payments for expenses excluded from wages shall not exceed the amount allowable as deductible expenses by income tax regulations under the United States Internal Revenue Code, 26 U.S.C.A. §62(2) and §162(a)(2).</content><note type="source"><p>Source Note: The provisions of this §815.105 adopted to be effective November 6, 2000, 25 TexReg 11093.</p></note></section><section identifier="/us/state/tx/tac/t40/p20/c815/scC/s815.106"><num value="815.106">§815.106</num><heading>Records of Employing Units</heading><content>(a) Each employing unit shall keep true and accurate employment and payroll records, that shall include, , the name and correct address of the employing unit, and the name and address of each branch or division or establishment operated, owned, or maintained by the employing unit at different locations in Texas, and the following information for each and every individual performing services for it:(1) the individual's name, address, and social security number;(2) the dates on which the individual performed services for the employing unit and the state or states in which the services were performed;(3) the amount of wages paid to the individual for each separate payroll period, date of payment of the wages, and amounts or remuneration paid to the individual for each separate payroll period other than "wages," as defined in the Act; and(4) whether, during any payroll period the individual worked less than full time, and if so, the hours and dates worked.(b) Each employing unit shall keep, in addition to the records required by subsection (a) of this section, the records that shall establish and reflect the ownership and any changes of ownership of the employing unit, the correct address where the headquarters of the employing unit is located, and the correct mailing address of the employing unit. The records shall also show clearly the address at which the records are available for inspection or audit by representatives of the Agency. The records shall show the addresses of owners of the employing unit; or in the event the employing unit is a corporation or an unincorporated organization, the records shall show the addresses of directors, officers, and any individuals on whom subpoenas, legal processes, or citations may be served in Texas. In the event the employing unit is a member of a group account, the records shall show the address of the group representative.(c) Wages paid for services excluded from the definition of "employment" under the Act shall be separately reflected in the employing unit's records so as to show the time of the service and remuneration for the service that is separate from taxable wages. With respect to pay periods in which an individual performs services excluded from the term "employment" as well as service which is "employment," the employing unit's record shall reflect the hours spent in the excluded service and the hours spent in "employment." If any remuneration other than monetary wages is paid to or is received by an individual with respect to services performed by the individual for the employer, the record shall show the total amount of cash wages and the cash value of any other remuneration.(d) Each reimbursing employer (including the individual component members comprising a group account) shall maintain the records prescribed in this section.(e) Each governmental employer (including the independent component employers comprising the group account) shall maintain the records prescribed in this section.(f) Component members of a group account shall furnish payroll and other information necessary to the group representative for the representative to prepare consolidated reports for the group.(g) All records shall be kept and maintained as to establish clearly the correctness of all reports which the employing unit is required to file with the Agency and shall be readily accessible to authorized representatives of the Agency within the geographical boundaries of the State of Texas; and in the event the records are not maintained or are not available within Texas, the employing unit shall pay to the Agency the expenses and costs incurred when a representative of the Agency is required to go outside the State of Texas to inspect or audit the employing unit's records.(h) Each employing unit, upon request by the Agency, shall furnish a job description of duties performed by any individual or group of individuals who are performing or have performed services for the employing unit.(i) The records prescribed by this subchapter and the Act shall be preserved for four years.</content><note type="source"><p>Source Note: The provisions of this §815.106 adopted to be effective November 6, 2000, 25 TexReg 11093.</p></note></section><section identifier="/us/state/tx/tac/t40/p20/c815/scC/s815.107"><num value="815.107">§815.107</num><heading>Reports Required and Their Due Dates</heading><content>(a) All reports and forms required by the Agency or the Act shall be filed with the Agency in one of the following formats unless a different format is approved in writing by the Agency, a hardship exemption is requested from and granted by the Agency, or as specified in this chapter.(1) General Format of Reports and Forms and Methods of Submission. The reports and forms referenced in this section shall be filed using:(A) forms printed by the Agency;(B) electronic media in a format prescribed by the Agency; or(C) any other manner approved and prescribed by the Agency in writing.(2) Content. The reports and forms shall contain all facts and information necessary to a determination of the amounts due by the employing unit. The Agency may require the furnishing of additional information as it deems necessary for the proper administration of the Act.(3) Electronic Media Reporting.(A) Required Electronic Media. All employers and their agents shall file employers' reports, including both summary and detail wage information, as described in §207.004 of the Act, on electronic media using a format prescribed by the Agency.(B) An electronic media transmission of an employer's report may contain information from more than one employer.(C) An employer's report filed in an approved medium shall contain both a wage credit report and a summary report.(b) General Deadlines for Filing Reports and Forms.(1) Unless otherwise provided in this subchapter, any report or form shall be completed and filed with the Agency within 10 days after the requested report or form is:(A) mailed to the individual or employing unit at the address on record with the Agency; or(B) personally delivered to the individual or employing unit by an Agency representative.(2) Failure to receive notice regarding the reports shall not relieve the individual or employing unit of the responsibility of filing the reports by the date the reports are due.(3) Good Cause for Extending Deadlines. When good cause is shown, the Agency may extend the due date for filing of a report required under this section; however, the extension shall be effective only if authorized in writing by an Agency representative.(c) Status Reports.(1) Status Reports in General. Each employing unit shall file with the Agency a status report within 10 days from the date upon which the employing unit becomes subject to the Act.(2) Status Reports for New Acquisitions. Any employing unit in the state of Texas that acquires another business or substantially all of the assets of another business shall file a new status report with the Agency within 10 days of the date on which the employing unit made the acquisition.(3) Status Reports for Additional Information. Each employing unit shall file additional status reports at any time upon the request of the Agency.(4) Evidence in Support of Status Reports. Employing units filing status reports with the Agency shall:(A) file with the Agency all facts necessary to a determination of the taxable status of the employing unit; and(B) if requested, file with the Agency evidence to establish the correctness of information contained in the employing unit's status reports.(d) Quarterly Reports from Taxed Employers. Each taxed employer, other than a domestic employer who has elected to report and pay annually under §201.027(b) of the Act, shall file with the Agency, within the month during which contributions for any period become due, and not later than the date on which contributions are required to be paid to the Agency, an employer's quarterly report showing for the preceding calendar quarter:(1) the total amount of remuneration paid for employment (or showing that no remuneration was paid during the quarter);(2) the total amount of wages paid for employment (as defined in the Act, §201.081 and §201.082);(3) the amount of wages for benefit wage credits (as defined in the Act, §207.004) paid to each individual employee;(4) the name and Social Security number of each individual to whom the wages were paid; and(5) any other information requested on the employer's quarterly report, including all facts and information necessary to make a determination of the amount of contributions due.(e) Quarterly Reports from Reimbursing Employers and Group Representatives of a Group Account. Each reimbursing employer and the group representative of a group account shall file an employer's quarterly report, by the end of the month following each calendar quarter, that furnishes the following information for the preceding calendar quarter, information specified in paragraphs (1) - (4) of subsection (d) of this section, and any other information necessary to make a determination of the amount of reimbursements due.(f) Benefits Financed by the Federal Government. Each employer that has employees whose benefits are to be financed by the federal government shall file a separate quarterly report furnishing the names of the employees, their Social Security numbers, and the wages paid to each. The report shall be filed by the end of the month following each calendar quarter.(g) Annual Reports from Domestic Employers.(1) Making the Election. An election to report wages paid and pay contributions on an annual basis must be made in a format or on a form authorized by the Agency by the deadline specified in §201.027 of the Act.(2) Each domestic employer that qualifies under the Act and who has made an election as referenced in paragraph (1) of this subsection, shall file with the Agency, by January 31 of the year after the wages were paid, in a format consistent with subsection (a) of this section, a domestic employer's annual report showing the following for the preceding calendar year in which wages were paid.(A) The information specified in paragraphs (1) - (4) of subsection (d) of this section subtotaled for each quarter; and(B) Other information called for on the domestic employer's annual report including all facts and information necessary to make a determination of the amount of contributions due.(3) Penalties and interest incurred under this section shall be the same as applicable to other employer reporting requirements as provided in Chapter 213 of the Act and this subchapter.</content><note type="source"><p>Source Note: The provisions of this §815.107 adopted to be effective January 28, 2002, 27 TexReg 615; amended to be effective February 19, 2007, 32 TexReg 628; amended to be effective January 6, 2014, 39 TexReg 114.</p></note></section><section identifier="/us/state/tx/tac/t40/p20/c815/scC/s815.108"><num value="815.108">§815.108</num><heading>Signatures on Reports and Forms</heading><content>(a) A report or form required by the Agency shall, if signature is called for by the report or form or instructions, be signed by:(1) the individual, if the person required to submit the report or form is an individual;(2) the president, vice-president, or other principal officer, if the employing unit required to submit the report or form is a corporation;(3) a partner, if the employing unit required to submit the report or form is a partnership;(4) a duly authorized member or officer having knowledge of its affairs, if the employing unit required to submit the report or form is an unincorporated organization;(5) the fiduciary, if the employing unit required to submit the report or form is a trust or estate;(6) the head of the department (or the department head's designee) having control of the services with respect to which contributions, reimbursements, or other payments are attributable, if the employing unit required to submit the report or form is the State of Texas or a branch, department, instrumentality, or political subdivision thereof;(7) the group representative, if the report or form is being submitted for a group account; or(8) any individual who is authorized in writing to sign for each individual or employing unit.(A) The written authority shall be: filed with the Agency; revocable by either party; and in terms which explicitly authorize the attorney or agent to transact business between the grantor of said power and the Agency. The written authority shall be filed in a manner prescribed by the Agency.(B) The written authority shall be in full force and effect until it is revoked in a manner prescribed by the Agency.(C) The Agency may reject any written authority that does not conform with this section.(b) Nothing contained in this section shall in any way affect the power and right of any representative of the Agency to prepare and sign any reports or forms required by the Agency upon the failure or refusal of any of the individuals listed in subsection (a) of this section to do so when requested.</content><note type="source"><p>Source Note: The provisions of this §815.108 adopted to be effective November 6, 2000, 25 TexReg 11093; amended to be effective June 18, 2012, 37 TexReg 4431.</p></note></section><section identifier="/us/state/tx/tac/t40/p20/c815/scC/s815.109"><num value="815.109">§815.109</num><heading>Payment of Contributions and Reimbursements</heading><content>(a) When, in any calendar year, an individual or employing unit becomes an employer (other than a reimbursing employer) subject to this Act, the employer shall, on or before the last day of the month following the month during which the employer became a subject employer, file a report as specified in §815.107 and pay contributions with respect to all completed calendar quarters in the calendar year. Contributions for the quarter during which the employer becomes a subject employer shall be due on the first day of the month immediately following the quarter and shall be paid on or before the last day of the month. Contributions shall accrue quarterly and shall become due on the first day of the month immediately following the calendar quarter. They shall be paid to the Agency on or before the last day of the month. The provisions in this subsection shall apply unless otherwise provided in §201.027 of the Act.(b) Reimbursements shall become due on the last day of the month following the end of each quarter and shall be paid to the Agency on or before the last day of the next month.(c) When the last day for payment of contributions or reimbursements falls on a Saturday, Sunday, or a legal holiday on which the Agency office is closed, the payment may be made on the next regular business day.(d) An employer or other entity, including agents paying on behalf of multiple employers, is required to transfer payment amounts of contributions by Commission-approved electronic means on or before the date the contributions are due, unless the Agency in writing has approved another method or form of payment. The transfers shall be subject to the provisions of Texas Government Code §404.095, and to rules adopted by the state comptroller pursuant to that section.(e) Additional tax resulting from a chargeback adjustment is due on the first day of the second month following the month in which the Agency mailed the statement or letter notifying the employer of the change in tax rate and additional tax due. Amounts due from such chargeback adjustments shall be paid and must be received by the Agency on or before the last day of this second month.(f) When good cause is shown, the Agency may extend the due date for the payment of contributions or reimbursements. The extension shall not be effective unless it is authorized in writing by the Agency. In the event the Agency for good cause shown extends the due date for payment of contributions or reimbursements, the payments shall be made to the Agency on or before the thirtieth day following the extended due date.(g) An agent or other entity making a payment on behalf of employers shall furnish an allocation list on electronic media using a format prescribed by this Agency, unless the Agency has approved another format and method in writing. This list shall be furnished with the remittance, and the remittance shall be allocated to the credit of the employers according to the order in which the employers appear on the list.</content><note type="source"><p>Source Note: The provisions of this §815.109 adopted to be effective November 6, 2000, 25 TexReg 11093; amended to be effective January 28, 2002, 27 TexReg 615; amended to be effective August 15, 2004, 29 TexReg 7738; amended to be effective February 19, 2007, 32 TexReg 628; amended to be effective January 6, 2014, 39 TexReg 114.</p></note></section><section identifier="/us/state/tx/tac/t40/p20/c815/scC/s815.110"><num value="815.110">§815.110</num><heading>Transfer of Surplus Credit to Successor Employing Unit</heading><content>(a) An application to transfer a surplus credit described under §204.0861 of the Act shall be filed in one of the following formats:(1) An Agency-developed form; or(2) Any other manner approved or prescribed by the Agency in writing.(b) The form shall:(1) contain all facts and information necessary to transfer a surplus credit to a successor employing unit pursuant to §204.0861 of the Act; and(2) be signed by the predecessor and successor employing units.(c) The form shall be filed with the Agency before the expiration of the surplus credit.</content><note type="source"><p>Source Note: The provisions of this §815.110 adopted to be effective June 18, 2012, 37 TexReg 4431.</p></note></section><section identifier="/us/state/tx/tac/t40/p20/c815/scC/s815.111"><num value="815.111">§815.111</num><heading>Partial Transfer of Compensation Experience</heading><content>(a) Voluntary Partial Transfer of Compensation Experience(1) An application for transfer of compensation experience pursuant to §204.084 of the Act shall be filed with the Agency in one of the following formats:(A) forms printed by the Agency;(B) magnetic or electronic media in a format prescribed by this Agency; or(C) any other manner approved and prescribed by the Agency in writing.(2) The application shall:(A) contain all facts and information and documents, including waiver, necessary to make a determination under §204.084 of the Act and in accordance with the requirements of that section; and(B) be accurate, complete, and signed by an authorized representative. Incomplete applications will be returned unprocessed.(3) An application under this section must be filed with the Agency within one year of the date the partial transfer is completed.(4) To satisfy the identifiable and segregable requirements of §204.084(c)(3):(A) the applicants shall show that the successor employer acquired a distinct and separable part of the organization, trade, or business that is capable of operating independently and separately from the predecessor employer; and(B) the wages attributable to the acquired part of the organization, trade, or business shall be separate and distinct from other wages of the predecessor employer and shall be solely attributable to services provided on behalf of the acquired part of the organization, trade, or business.(b) Mandatory Partial Transfer of Compensation Experience(1) When a partial acquisition occurs that requires transfer of compensation experience pursuant to §204.083, the employing units involved may file with the Agency, in one of the following formats, the information necessary to determine if the conditions of §204.085(a) are met:(A) Forms printed by the Agency;(B) Magnetic or electronic media in a format prescribed by the Agency; or(C) Any other manner approved and prescribed by the Agency in writing.(2) The submission shall:(A) contain all facts, information, and documents necessary to make a determination under, and in accordance with, the requirements of §204.085;(B) be accurate, complete, and signed by an authorized representative; and(C) be filed with the Agency within one year of the date the partial transfer was completed, if the partial transfer was completed prior to September 1, 2015. Otherwise, the submission is due pursuant to deadlines established in §204.085(a-1).(3) To satisfy the conditions of §204.085(a):(A) the successor employer shall have acquired a distinct and separable part of the organization, trade, or business that is capable of operating independently and separately from the predecessor employer; and(B) the wages attributable to the acquired part of the organization, trade, or business shall be separate and distinct from other wages of the predecessor employer and shall be solely attributable to services provided on behalf of the acquired part of the organization, trade, or business.</content><note type="source"><p>Source Note: The provisions of this §815.111 adopted to be effective October 7, 2002, 27 TexReg 9395; amended to be effective June 18, 2012, 37 TexReg 4431; amended to be effective April 26, 2016, 41 TexReg 2972.</p></note></section><section identifier="/us/state/tx/tac/t40/p20/c815/scC/s815.112"><num value="815.112">§815.112</num><heading>Refunds to Employing Units</heading><content>A claim for refund or adjustment shall be made on a form supplied by the Agency or by magnetic or electronic media using a format prescribed by the Agency. All grounds and details and all facts alleged in support of the claim shall be clearly set forth. The claim shall be filed by the employing unit which paid the contributions, interest, or penalty or by a duly authorized representative thereof. In addition, the Agency may require the claim to be filed under oath.</content><note type="source"><p>Source Note: The provisions of this §815.112 adopted to be effective November 6, 2000, 25 TexReg 11093.</p></note></section><section identifier="/us/state/tx/tac/t40/p20/c815/scC/s815.113"><num value="815.113">§815.113</num><heading>Commission Hearings Involving Coverage and Contributions or Reimbursements</heading><content>(a) In all situations not specifically provided for in the Act or in the rules of the Agency, a hearing may, at the discretion of the Commission, be afforded an employing unit upon its written request, in any case involving tax liability or any question relating to contributions or reimbursements. Hearings under this section shall continue to be termed Rule 13 Hearings. The written request for hearing may be filed by hand delivery, mail, common carrier, facsimile (fax) transmission, or other method approved by the Agency in writing, at a local tax office or the Texas Workforce Commission, 101 East 15th Street, Austin, Texas 78778-0001.(b) The Commission may on its own motion set a hearing to secure the facts to establish the status of any individual or employing unit under any section of the Act.(c) The Commission may designate a representative to preside over the hearing. Hearings shall be conducted by telephone conference call unless the supervisor of the hearing officers or the supervisor's designee determines that an in-person hearing is necessary. The hearings will be scheduled and, if an in-person hearing, held at a place designated by the supervisor of the hearings officers or the supervisor's designee in accordance with paragraphs (1) - (3) of this subsection and the applicable provisions in this chapter.(1) Written notice of the date and time of the hearings shall be given to the parties, and the location if it is an in-person hearing, at least 10 days before the date of the hearing; but if a setting at an earlier date is requested by an individual or employing unit, the supervisor of the hearings officers or the supervisor's designee may at the supervisor's discretion grant that request, if the granting of the request will not prejudice the rights of any other party to the proceedings, including the Agency itself. The notice shall be mailed to the parties at their last-known addresses.(2) In these proceedings before a hearings officer, all parties shall be given an opportunity for full, fair, and impartial hearing. The hearings shall be conducted in the manner deemed most suitable to ascertain the facts and to determine the rights of the parties. All testimony taken shall be under oath and subject to the right of cross-examination by any adverse party, and it shall be recorded. When necessary, the hearing officer may order the taking of depositions. The submission of written briefs, affidavits, and other written memoranda may be required.(3) A witness, whose attendance at a hearing is required, may be allowed a fee and mileage on the same basis and to the same extent as is provided for witnesses under §815.18 of this chapter (relating to General Rules for Both Appeal Stages).(d) The Commission, following each hearing, shall issue a decision, which shall resolve the questions involving tax liability or any question relating to contributions or reimbursements which arose at the hearing. Copies of written decisions of the Commission shall be furnished the parties to the hearings.(e) A decision of the Commission shall become final 30 days after the date of mailing unless, within the 30-day period, the proceeding is either reopened by a Commission order or by a party to the proceeding filing a written motion for reconsideration in accordance with the provisions of §815.17(f) of this chapter (relating to General Rules for Both Appeal Stages). The motion for reconsideration is sent to the address listed in the decision. A decision is not binding on a person who was not a party to a proceeding conducted under this section.</content><note type="source"><p>Source Note: The provisions of this §815.113 adopted to be effective November 6, 2000, 25 TexReg 11093; amended to be effective January 6, 2014, 39 TexReg 114.</p></note></section><section identifier="/us/state/tx/tac/t40/p20/c815/scC/s815.114"><num value="815.114">§815.114</num><heading>Employer Elections To Cover Multistate Workers</heading><content>(a) Scope. This section shall govern the Texas Workforce Commission in its administrative cooperation with other states subscribing to the Interstate Reciprocal Coverage Arrangement (arrangement).(b) Definitions. As used in this section, the following words and terms shall have the following meanings, unless the context clearly indicates otherwise.(1) Agency--Any officer, board, the Texas Workforce Commission, or other authority charged with the administration of the unemployment compensation law of a participating jurisdiction.(2) Interested jurisdiction--Any participating jurisdiction to which an election submitted under this section is sent for its approval; and "interested agency" means the agency of that jurisdiction.(3) Jurisdiction--Any state of the United States, the District of Columbia, Puerto Rico, the Virgin Islands, or, with respect to the federal government the coverage of any federal unemployment compensation law.(4) Participating jurisdiction--A jurisdiction whose administrative agency has subscribed to the arrangement and whose adherence thereto has not terminated.(5) Services "customarily performed" by an individual in more than one jurisdiction--Services performed in more than one jurisdiction during a reasonable period, if: the nature of the services gives reasonable assurance that the services will continue to be performed in more than one jurisdiction; or the services are required or expected to be performed in more than one jurisdiction under the election.(c) Submission and approval of coverage elections under the Interstate Reciprocal Coverage Arrangement.(1) Any employing unit may file an election, on a form provided by the Texas Workforce Commission, to cover under the law of a single participating jurisdiction all of the services performed for the employing unit by any individual who customarily works for the employing unit in more than one participating jurisdiction.(2) The employing unit's election may be filed, with respect to an individual, with any participating jurisdiction in which:(A) any part of the individual's services are performed;(B) the individual has a residence; or(C) the employing unit maintains a place of business to which the individual's services bear a reasonable relation.(3) The agency of the elected jurisdiction (thus selected and determined) shall initially approve or disapprove the election.(4) If the agency approves the election, it shall forward a copy thereof to the agency of each other participating jurisdiction named by the election under whose unemployment compensation law the individual or individuals in question might, in the absence of the election, be covered. Each interested agency shall promptly approve or disapprove the election, and shall notify the agency of the elected jurisdiction.(5) In case its law so requires, an interested agency may, before taking an action, require from the electing employing unit satisfactory evidence that the affected employees have been notified of, and have acquiesced in, the election.(6) If the agency of the elected jurisdiction, or the agency of any interested jurisdiction, disapproves the election, the disapproving agency shall notify the elected jurisdiction and the electing employing unit of its action and of its reason therefor.(7) An election shall take effect as to the elected jurisdiction only if approved by its agency and by one or more interested agencies.(8) An election that is approved shall take effect, as to any interested agency, only if it is approved by the interested agency.(9) In case an election approved only in part, or disapproved by some of the interested agencies, the electing employing unit may withdraw its election within 10 days after being notified of the action.(d) Effective period of elections.(1) Commencement.(A) An election duly approved under this section shall become effective at the beginning of the calendar quarter in which the election was submitted, unless the election, as approved, specifies the beginning of a different calendar quarter.(B) If the electing unit requests an earlier effective date than the beginning of the calendar quarter in which the election is submitted, the earlier date may be approved solely as to those interested jurisdictions in which the employer had no liability to pay contributions for the earlier period in question.(2) Termination.(A) The application of an election to any individual under this section shall terminate, if the agency of the elected jurisdiction finds that the nature of the services customarily performed by the individual for the electing unit has changed, so that they are no longer customarily performed in more than one participating jurisdiction. The termination shall be effective as of the close of the calendar quarter in which notice of the finding is mailed to all parties affected.(B) Except as provided in subparagraph (A) of this paragraph, each election approved shall remain in effect through the close of the calendar year in which it is submitted, and until the close of the calendar quarter in which the electing unit gives written notice of its termination to all affected agencies.(C) Whenever an election hereunder ceases to apply to any individual, under subparagraphs (A) or (B) of this paragraph, the electing unit shall notify the affected individual accordingly.(e) Reports and notices by the electing unit.(1) The electing unit shall promptly notify each individual affected by its approved election on a form approved by the elected jurisdiction and shall furnish the elected agency a copy of the notice.(2) Whenever an individual covered by an election hereunder is separated from employment, the electing unit shall again notify the individual, forthwith, as to the jurisdiction under whose unemployment compensation law the individual's services have been covered. If at the time of termination the individual is not located in the elected jurisdiction, the electing unit shall notify the individual as to the procedure for filing interstate benefit claims.(3) The electing unit shall immediately report to the elected jurisdiction any change which occurs in the conditions of employment pertinent to its election, such as cases where an individual's services for the employer cease to be customarily performed in more than one participating jurisdiction or where a change in the work assigned to an individual requires the individual to perform services in a new participating jurisdiction.(f) Approval of reciprocal coverage elections. The executive director, or the executive director's designee, has the authority to approve or disapprove reciprocal coverage elections in accordance with this section.</content><note type="source"><p>Source Note: The provisions of this §815.114 adopted to be effective November 6, 2000, 25 TexReg 11093.</p></note></section><section identifier="/us/state/tx/tac/t40/p20/c815/scC/s815.115"><num value="815.115">§815.115</num><heading>Contribution and Wage Reports Covering Seamen and Seamen's Wages Paid under Shipping Articles</heading><content>This section shall govern contribution and wage reports covering seamen and seamen's wages paid under shipping articles.(1) Pay period. For the purpose of this section, the term "pay period" established by "shipping articles" means the period of the voyage or engagement of the crew under "articles of agreement" pursuant to 46 U.S.C.A. §564.(2) Current reports.(A) Contribution reports and wage reports with respect to wages, including advances, allotments, and payment in kind, such as board and lodging, earned in any pay period established by "shipping articles" shall be submitted as of the calendar quarter in which any of the wages in cash were actually paid or any of the wages in kind were furnished.(B) Reports on wages falling within the purview of this section need not be filed prior to the time reports regarding wages paid at the termination of the period shall be filed. However, separate reports shall in that event be filed for each calendar quarter involved during which wages in cash were paid and wages in kind were furnished.(3) Special reports. The employer shall, upon request of the Agency, promptly furnish a statement of the wages of a seaman, whenever the statement is necessary in order to determine a seaman's eligibility for and rate of benefits. The statement shall be prepared and submitted in the manner the Agency may prescribe in each case.</content><note type="source"><p>Source Note: The provisions of this §815.115 adopted to be effective November 6, 2000, 25 TexReg 11093.</p></note></section><section identifier="/us/state/tx/tac/t40/p20/c815/scC/s815.116"><num value="815.116">§815.116</num><heading>Identification and Tracking of Transfers and/or Acquisitions of Businesses</heading><content>(a) An electronic method of tracking the reporting of employees and wages will be employed by the Agency to assist in ascertaining instances of improper reporting by employers.(b) To aid the Agency in this determination, upon request and as determined necessary by the Agency, employers shall provide information sufficient to enable the Agency to determine:(1) the status of the employing unit under investigation and whether the employer is liable under the Act;(2) the proper employer of the employees reported and whether the wages are reported by the proper entity;(3) the relationship between the predecessor or successor entity and whether a mandatory transfer of compensation experience is required under §204.083 of the Act; and(4) the correct calculation of the tax rate assigned to the employer.</content><note type="source"><p>Source Note: The provisions of this §815.116 adopted to be effective February 19, 2007, 32 TexReg 628.</p></note></section><section identifier="/us/state/tx/tac/t40/p20/c815/scC/s815.117"><num value="815.117">§815.117</num><heading>Employing Units: Common Paymaster</heading><content>(a) Scope. This section shall govern the Texas Workforce Commission in its administration of the Common Paymaster provisions authorized under §201.011(11) of the Act.(b) Definitions. The following definitions shall apply to §201.011(11) of the Act:(1) Common Paymaster--A Common Paymaster of a group of related corporations is any member thereof that disburses remuneration to employees of two or more of those corporations on their behalf and that is responsible for keeping books and records for the payroll with respect to those employees. The following are also incorporated into this definition:(A) The Common Paymaster is not required to disburse remuneration to all the employees of those two or more related corporations, but the provisions of this section do not apply to any remuneration to an employee that is not disbursed through a Common Paymaster;(B) A group of related corporations may only have one Common Paymaster for the group. A group of related corporations may not be subdivided to facilitate multiple Common Paymasters; and(C) When two or more related corporations concurrently employ the same individual and compensate that individual through a Common Paymaster, which is one of the related corporations for which the individual performs services, each of the corporations is considered to have paid only the remuneration it actually disburses to that individual, unless the disbursing corporation fails to remit the taxes due.(2) Related Corporations--Two or more corporations shall be considered related corporations for an entire calendar quarter if they satisfy any of the following tests at any time during that calendar quarter:(A) Parent-subsidiary controlled group. The common parent corporation owns stock possessing more than 50 percent of the total combined voting power of all classes of stock entitled to vote or more than 50 percent of the total value of shares of all classes of stock of at least one of its subsidiaries, AND one or more of the corporations, common parent included, owns stock possessing more than 50 percent of the total combined voting power of all classes of stock entitled to vote or more than 50 percent of the total value of shares of all classes of stock of each of the subsidiaries;(B) Brother-sister controlled group. Five or fewer persons who are individuals, estates, or trusts own more than 50 percent of the total combined voting power of all classes of stock entitled to vote or more than 50 percent of the total value of all classes of stock of each corporation, taking into account the stock ownership of each person only to the extent such stock ownership is identical with respect to each such corporation;(C) Combined group. A group of three or more corporations if:(i) Each such corporation is a member of either a parent-subsidiary controlled group of corporations or a brother-sister controlled group of corporations; and(ii) At least one of such corporations is the common parent of a parent-subsidiary controlled group and also is a member of a brother-sister controlled group;(D) When a corporation that does not issue stock is involved, either:(i) 50 percent or more of the members of one corporation's board of directors (or other governing body) are members of the other corporation's board of directors (or other governing body); or(ii) The holders of 50 percent or more of the voting power to select members of one corporation's board of directors (or other governing body) are concurrently the holders of more than 50 percent of that power with respect to the other corporation;(E) 50 percent or more of one corporation's officers are concurrently officers of the other corporation; or(F) 30 percent or more of one corporation's employees are concurrently employees of the other corporation.(3) Concurrent Employment--means the simultaneous existence of an employment relationship between an individual and two or more corporations. Such a relationship contemplates the performance of services by the individual for the benefit of the employing corporation, not merely for the benefit of the group of corporations, in exchange for remuneration. The following are also incorporated into this definition:(A) The simultaneous existence of an employment relationship with each corporation is a decisive factor. If it exists, the fact that a particular employee is on leave or otherwise temporarily inactive is immaterial;(B) Employment is not concurrent with respect to one of the related corporations if the employee's employment relationship with that corporation is completely nonexistent during the periods when the employee is not performing services for that corporation;(C) An individual who does not perform substantial services for a corporation is presumed not employed by that corporation; and(D) A corporation which has no employees performing services for it in Texas cannot be the Common Paymaster for Texas employees of its related corporations.(c) Submission and approval of Common Paymaster.(1) Related corporations which compensate their employees through a Common Paymaster shall file with the Agency the details of their plan on a form prescribed by the Agency. The details shall include the names of the related corporations, the name of the Common Paymaster corporation and the concurrently employed individuals involved. The filing shall include documentation to substantiate the corporations are related as defined in subsection (b)(2) of this section and that employees are the concurrently employed. An amendment to the plan shall be filed whenever there is a change in the related corporations participating in the plan, a change in the Common Paymaster or a change in the concurrently employed individuals involved.(2) Plans and plan amendments submitted pursuant to this rule shall be filed within the 30-day period following the end of the calendar quarter in which the plan is in effect. Eligibility of an employee to be compensated through a Common Paymaster shall be determined on a quarterly basis.(d) Allocation of employment taxes.(1) A Common Paymaster making disbursements on behalf of related corporations to employed individuals shall be responsible for taxes, interest and penalties on all wages disbursed by it.(2) If the Common Paymaster fails to remit taxes, interest and penalties on all wages disbursed by it as required:(A) the Agency may hold each of the related corporations liable for a proportionate share of the obligation. Such proportionate share may be based on sales, property, corporate payroll or any other reasonable basis that reflects the distribution of services of the pertinent employees between the related corporations; or(B) if there is no reasonable basis for allocating the amount owed, it shall be divided equally among the related corporations. If a related corporation fails to pay any amount allocated to it pursuant to this section, the Agency may hold any or all of the other related corporations liable for the full amount of the unpaid taxes, interest and penalties.(3) A Common Paymaster is not a successor corporation pursuant to Texas Labor Code Chapter 204, Subchapter E, for concurrent employees unless the related corporation ceases operations and is acquired in its entirety by the paymaster corporation.(4) Wages paid by separate employing units may not be aggregated or combined for purposes of reporting, except as provided in this rule, unless there is an actual transfer of entity and experience rating as provided by Texas Labor Code Chapter 204, Subchapter E.(e) Benefits.(1) For purposes of charging benefits paid and mailing notices to base year employers, the Common Paymaster shall be considered the employer for all wages disbursed to individuals by the Common Paymaster whether payment was for services performed for the Common Paymaster or for a related corporation.(2) An employer seeking to establish a Common Paymaster arrangement shall designate a mailing address for benefit claim notices with the Agency per §208.003 of the Act.(f) Examples.(1) Common Paymaster. S, T, U, and V are related corporations with 2,000 employees collectively. Forty of these employees are concurrently employed and perform services for S and at least one other of the related corporations, during a calendar quarter. The four corporations arrange for S to disburse remuneration to thirty of these forty employees for their services. Under these facts, S is the Common Paymaster of S, T, U, and V with respect to the thirty employees. S is not a Common Paymaster with respect to the remaining employees.(2) Related Corporations:(A) Parent-subsidiary controlled group.(i) P Corporation owns stock possessing 51 percent of the total combined voting power of all classes of stock entitled to vote of S Corporation. P is the common parent of a parent-subsidiary controlled group consisting of member corporations P and S.(ii) Assume the same facts as in clause (i) of this subparagraph. Assume further that S owns stock possessing 51 percent of the total value of shares of all classes of stock of X Corporation. P is the common parent of a parent-subsidiary controlled group consisting of member corporations P, S, and X. The result would be the same if P, rather than S, owned the X stock.(iii) P Corporation owns 51 percent of the only class of stock of S Corporation and S, in turn, owns 30 percent of the only class of stock of X Corporation. P also owns 51 percent of the only class of stock of Y Corporation and Y, in turn, owns 30 percent of the only class of stock of X. P is the common parent of a parent-subsidiary controlled group consisting of member corporations P, S, X, and Y.(B) Brother-sister controlled group. The outstanding stock of corporations X and Y, which have only one class of stock outstanding, is owned by the following unrelated individuals: A owns 40% of X and 20% of Y; B owns 10% of X and 30% of Y; C owns 30% of X and 40% of Y; D owns 20% of X; and E owns 10% of Y. The result is that Corporations X and Y have 3 common owners - A, B, and C. D and E are disregarded from the brother-sister test because they don't have ownership in both companies. A, B, and C have the following Identical Ownership (the lesser of X or Y): A has 20%; B has 10%; and C has 30%. A, B, and C meet the identical ownership test because their identical ownership is more than 50 percent of X and Y.(C) Combined group.(i) A, an individual, owns stock possessing 100 percent of the total combined voting power of all classes of the stock of corporations X and Y. Y, in turn, owns stock possessing 51 percent of the total combined voting power of all classes of the stock of corporation Z. X, Y, and Z are members of the same combined group since X, Y, and Z are each members of either a parent-subsidiary or brother-sister controlled group of corporations AND Y is the common parent of a parent-subsidiary controlled group of corporations consisting of Y and Z, and also is a member of a brother-sister controlled group of corporations consisting of X and Y.(ii) Assume the same facts as in clause (i) of this subparagraph and further assume that corporation X owns 51 percent of the total value of shares of all classes of stock of corporation S. X, Y, Z, and S are members of the same combined group.(3) Concurrent Employment. M, N, and O are related corporations which use N as a Common Paymaster. Their respective headquarters are located in three separate cities several hundred miles apart. A is an officer of M, N, and O who performs substantial services for each corporation. A does not work a set length of time at each corporate headquarters, and when A leaves one corporate headquarters, it is not known when A will return, although it is expected that A will return. Under these facts, A is concurrently employed by the three corporations.</content><note type="source"><p>Source Note: The provisions of this §815.117 adopted to be effective January 27, 2020, 45 TexReg 589.</p></note></section><section identifier="/us/state/tx/tac/t40/p20/c815/scC/s815.119"><num value="815.119">§815.119</num><heading>Payment of Voluntary Contributions</heading><content>Texas Labor Code, §204.048(a), provides that an employer that is eligible for an annual Experience Rate calculation under §204.041, Labor Code, may elect to make a voluntary payment of contributions to the agency.(1) The agency will notify employers eligible for an annual rate calculation under §204.041, Labor Code, of the experience tax rate for the following year and the amount of charges that were used in calculating that rate.(2) Voluntary contribution shall be due not later than the 60th day after the date on which the commission mails the employer's annual tax rate notice. When the last day for payment of voluntary contributions falls on a Saturday, Sunday, or a legal holiday on which the agency office is closed, the payment may be made on the next regular business day.(3) The agency may extend the due date for the payment of voluntary contributions; however, the extension may not exceed 75 days from the date on which the commission mails the employer's annual rate notice. In no situation may the extension exceed the date imposed by the deadline in §204.048(e), Labor Code.(4) If the voluntary contribution payment is insufficient to cause a decrease in the tax rate, the agency will notify the employer and grant an extension, not to exceed 75 days from the date on which the commission mails the employer's annual tax rate notice to remit additional voluntary contributions, subject to the limitations imposed by §204.048(e), Labor Code.</content><note type="source"><p>Source Note: The provisions of this §815.119 adopted to be effective October 27, 2003, 28 TexReg 9293.</p></note></section><section identifier="/us/state/tx/tac/t40/p20/c815/scC/s815.128"><num value="815.128">§815.128</num><heading>Group Accounts</heading><content>(a) Two or more eligible reimbursing employers may file a joint application with the Agency for establishment of a group account on forms furnished by the Agency, upon application being filed. The application shall be filed upon a form furnished by the Agency and shall not be valid until approved by an authorized representative of the Agency in writing.(b) The application shall identify and authorize an individual to act as the group's representative. The individual shall be authorized by all members of the group to maintain records, to prepare and sign reports, to secure and furnish a surety bond for the group when directed by the Agency, to furnish information to the Agency pertaining to the group and its members, to collect and to pay all reimbursements and other amounts due to the Agency, to specify those members that have failed to submit payments due, and to assist the Agency in securing unpaid amounts due to the Agency from a member or members of the group.(c) When the group account's application has been approved by the Agency in writing, the group account shall be established and remain active for not less than two years or until terminated. Application to terminate the group account after two years shall be made by the group representative no later than December 1 to be effective at the beginning of the next calendar year.(d) At the discretion of the Agency, the group account may be terminated at the end of a calendar year for failure to: file reports accurately and timely; furnish information pertaining to the group or its members; furnish a surety bond when requested; or pay reimbursements, penalties, and other amounts due from the group.(e) Each member shall be liable for reimbursement of benefits paid and other amounts which accrue after the group account has been terminated in accordance with total wages paid by each member and by the group during the last quarter that the group account was active and in which wages were paid.(f) Addition of a new member or members to the group shall not be valid unless a joint application, approved by all members of the group, to add the member or members is filed with the Agency. The application shall be filed upon a form furnished by the Agency, upon application being made therefor, and shall be valid if approved in writing by an authorized representative of the Agency. The application shall be effective as of the beginning of the calendar quarter in which the Agency receives the application and each new member or new members of the group shall be liable for reimbursements during that and succeeding calendar quarters to the same extent as those members previously a part of the group.(g) Withdrawal of an active member or members shall be valid as of the end of a calendar quarter provided that a joint application for withdrawal of the member or members is filed with and approved by the Agency during the quarter. The remaining member or members of the group account shall be liable for reimbursements during succeeding calendar quarters for all benefits paid which are attributable to service in the employ of withdrawn members. The application shall be filed upon a form furnished by the Agency, upon application being made therefor, and shall not be valid until approved by an authorized representative of the Agency in writing. At the discretion of the Agency, the application may be denied if the group account has failed to pay all reimbursements and other amounts due to the Agency on the date that the withdrawal application is filed.(h) "Total wages paid" with respect to determining liability for amounts due by members of a group means total payment of "wages" as defined in the Act, except that the $9,000 limitation in the Act, §201.082 shall not be applicable.</content><note type="source"><p>Source Note: The provisions of this §815.128 adopted to be effective November 6, 2000, 25 TexReg 11093.</p></note></section><section identifier="/us/state/tx/tac/t40/p20/c815/scC/s815.129"><num value="815.129">§815.129</num><heading>Surety Bond</heading><content>(a) A governmental employer, a nonprofit organization, or the group representative of a group account that elects to become liable for reimbursements shall furnish a surety bond on a form furnished or approved by the Agency within 30 days after a request by the Agency for the bond is mailed to the governmental employer, nonprofit organization, or group representative.(b) The amount of the surety bond shall be a percentage of the projected amount of wages which would be subject to tax if the employer was an employer liable for contributions under the Act. The percentage used in determining the amount of the bond shall be equal to the maximum tax rate that any employer who is liable for contributions during the year would have to pay under the Act. The amount of taxable wages which the employer is expected to pay during the next 12 months shall be determined by the Agency after considering all available information.(c) The surety bond shall be executed by a licensed surety company authorized to do business in the State of Texas, and the surety bond must be approved by the Agency.</content><note type="source"><p>Source Note: The provisions of this §815.129 adopted to be effective November 6, 2000, 25 TexReg 11093.</p></note></section><section identifier="/us/state/tx/tac/t40/p20/c815/scC/s815.130"><num value="815.130">§815.130</num><heading>Landmen Contracts</heading><content>For purposes of the Act, §201.077, a contract covering services by a landman shall contain provisions which would support a finding that the landman is to be treated as an independent contractor. A statement that the landman is to be treated as an independent contractor will not be sufficient. When the Agency determines that a written contract does not accurately reflect the relationship between the parties because the landman is being treated as an employee, then this exemption will not apply.</content><note type="source"><p>Source Note: The provisions of this §815.130 adopted to be effective November 6, 2000, 25 TexReg 11093.</p></note></section><section identifier="/us/state/tx/tac/t40/p20/c815/scC/s815.131"><num value="815.131">§815.131</num><heading>Computation of Contribution Rates</heading><content>(a) Computations of contribution rates under the Act, Chapter 204, will be made in accordance with work sheets that may be obtained from the Texas Workforce Commission, 101 East 15th Street, Austin, Texas 78778-0001.(b) In calculating the replenishment ratio and replenishment rate for a calendar year, the Agency shall determine the amount of benefits that are paid during the 12 month period ending September 30 of the preceding year that are charged to employers' accounts after the employers have reached maximum liability because of the maximum tax rate. An employer who, at the computation date at the beginning of the 12-month period, was eligible for an experience tax rate, and who had a general tax rate of 6.0% as of January 1 of the 12-month period, will be included in the calculation of benefits charged to the employers after the employers have reached maximum liability, and will be included for the entire 12-month period. Any other employer with a general tax rate of 6.0% for one or more calendar quarters within the 12-month period will be included in the calculation, but only for the quarters for which the employer has a general tax rate of 6.0%. For any employer included in this calculation, the amount charged to the employer's account after the employer has reached maximum liability because of the maximum tax rate will be the amount by which the benefits charged to the employer's account exceed 6.0% of the employer's wages (as defined in the Act, §§201.081-201.082), with both the benefits charged and the wages being for the period for which the employer is included in the calculation as previously defined.</content><note type="source"><p>Source Note: The provisions of this §815.131 adopted to be effective November 6, 2000, 25 TexReg 11093.</p></note></section><section identifier="/us/state/tx/tac/t40/p20/c815/scC/s815.132"><num value="815.132">§815.132</num><heading>Computation of Unemployment Obligation Assessment</heading><content>(a) Texas Labor Code §203.105, V.T.C.A. provides that the Commission shall collect an unemployment obligation assessment, also referred to as an assessment, from each employer eligible for an experience tax rate if, after January 1 of a year, an interest payment on an advance from the federal trust fund will be due and the estimated amount necessary to make the interest payment is not available in the obligation trust fund or available otherwise; or bond obligations are due and the amount necessary to pay in full those obligations, including bond administrative expenses, is not available in the obligation trust fund or available otherwise. (b) When the Commission determines that an assessment as referred to in the paragraph above will be due after January 1 of a year, the Commission shall compute the assessment rate using the formulas set out below in this section, before November 20th of the year prior to the year of the assessment. This rate shall be published in the Texas Register. (c) The calculation for the unemployment obligation assessment rate is the sum of subsection (d) and (e) of this section. (d) The rate for the portion of the assessment that is to be used to pay an interest payment on federal loans shall not exceed two tenths of one percent. The rate shall be calculated by dividing two hundred percent (200%) of the additional amount estimated to be needed to pay interest due, as determined by the Agency, by the estimated total taxable wages for the 1st and 2nd quarters of the year in which the interest is due, and rounded up to the next hundredth. (e) The rate for the portion of the assessment that is to be used to pay a bond obligation is a percentage of the product of the unemployment obligation assessment ratio and the sum of the employer's prior year general tax rate, the replenishment tax rate and the deficit tax rate. The percentage, to be determined by Commission resolution, shall not exceed 200%. (1) The Unemployment Obligation Assessment Ratio is computed by: (A) dividing the numerator computed under paragraph (2) of this subsection by the denominator described in paragraph (3) of this subsection; and (B) rounding that result up to the next hundredth. (2) The numerator is computed by adding the total principal, interest and administrative expenses on all outstanding bonds determined to be due during the next year. However, if the Commission determines that there will be excess funds available in the obligation trust fund that are not anticipated to be expended for the purposes set out in Texas Labor Code, §203.258 (2)-(4), the numerator may be reduced by the amount of that excess. (3) The denominator is the amount of contributions due under the general tax rate and the replenishment tax rate for the four calendar quarters ending the preceding June 30 from employers entitled to an experience rate on the tax rate computation date.</content><note type="source"><p>Source Note: The provisions of this §815.132 adopted to be effective September 15, 2003, 28 TexReg 8002.</p></note></section><section identifier="/us/state/tx/tac/t40/p20/c815/scC/s815.133"><num value="815.133">§815.133</num><heading>Professional Employer Organizations and Temporary Help Firms</heading><content>(a) A professional employer organization licensed by the Texas Department of Licensing and Regulation under Texas Labor Code Chapter 91 shall be the employer of the workers it provides to a client. If the professional employer organization is not licensed by the Texas Department of Licensing and Regulation, then the Agency shall determine that the client is the employer.(b) A temporary help firm is the employer of an individual employed by the firm as a temporary employee. As defined in the Act, §201.011(21), a temporary help firm is a person who employs individuals for the purpose of assigning those individuals to work for the clients of the temporary help firm to support or supplement a client's workforce during employee absences, temporary skill shortages, seasonal workloads, special assignments and projects, and other similar work situations.</content><note type="source"><p>Source Note: The provisions of this §815.133 adopted to be effective November 6, 2000, 25 TexReg 11093; amended to be effective January 6, 2014, 39 TexReg 114.</p></note></section><section identifier="/us/state/tx/tac/t40/p20/c815/scC/s815.134"><num value="815.134">§815.134</num><heading>Employment Status: Employee or Independent Contractor</heading><content>(a) Subject to specific inclusions and exceptions to employment enumerated in Chapter 201 of the Act, the Agency and the Commission shall use the guidelines referenced in §821.5 of this title as the official guidelines for use in determining employment status.(b) Notwithstanding subsection (a) of this section, in Title 4, Subtitle A of the Texas Labor Code, "employment" does not include a marketplace contractor that satisfies the requirements of paragraph (2) of this subsection.(1) For purposes of this subsection:(A) The term "digital network" means an online-enabled application or website offered by a marketplace platform for the public (including third-party individuals and entities) to use to find and contact a marketplace contractor to perform one or more needed services.(B) The term "marketplace platform" means a corporation, partnership, sole proprietorship, or other entity operating in this state that:(i) uses a digital network to connect marketplace contractors to the public (including third-party individuals and entities) seeking the type of service or services offered by the marketplace contractors;(ii) accepts service requests from the public (including third-party individuals and entities) only through its digital network, and does not accept service requests by telephone, by facsimile, or in person at physical retail locations; and(iii) does not perform the services offered by the marketplace contractor at or from a physical business location that is operated by the platform in the state.(C) The term "marketplace contractor" or "contractor" means any individual, corporation, partnership, sole proprietorship, or other entity that enters into an agreement with a marketplace platform to use the platform's digital network to provide services to the public (including third-party individuals or entities) seeking the type of service or services offered by the marketplace contractor.(2) A marketplace contractor shall not be treated as being in employment of the marketplace platform for the purposes of Title 4, Subtitle A of the Texas Labor Code, if in contract and in fact all of the following conditions are met:(A) That all or substantially all of the payment paid to the contractor shall be on a per-job or transaction basis;(B) The marketplace platform does not unilaterally prescribe specific hours during which the marketplace contractor must be available to accept service requests from the public (including third-party individuals or entities) submitted through the marketplace platform's digital network;(C) The marketplace platform does not prohibit the marketplace contractor from using a digital network offered by any other marketplace platform;(D) The marketplace platform does not restrict the contractor from engaging in any other occupation or business;(E) The marketplace contractor is free from control by the marketplace platform as to where and when the marketplace contractor works and when the marketplace contractor accesses the marketplace platform's digital network;(F) The marketplace contractor bears all or substantially all of the contractor's own expenses that are incurred by the contractor in performing the service or services;(G) The marketplace contractor is responsible for providing the necessary tools, materials, and equipment to perform the service or services;(H) The marketplace platform does not control the details or methods for the services performed by a marketplace contractor by requiring the marketplace contractor to follow specified instructions governing how to perform the services; and(I) The marketplace platform does not require the contractor to attend mandatory meetings or mandatory training.(3) This section shall not apply to any of the following:(A) Services performed in the employ of a state, or any political subdivision of the state, or in the employ of an Indian tribe, or any instrumentality of a state, any political subdivision of a state, or any Indian tribe that is wholly owned by one or more states or political subdivisions or Indian tribes, but only if the services are excluded from employment as defined in the Federal Unemployment Tax Act, 26 U.S.C. §3301 - 3311, solely by reason of §3306(c)(7) of that Act.(B) Services performed by an individual in the employ of a religious, charitable, educational, or other organization, but only if the services are excluded from employment as defined in the Federal Unemployment Tax Act, 26 U.S.C. §§3301 - 3311, solely by reason of §3306(c)(8) of that Act.(C) Services performed by marketplace platforms regulated as Professional Employer Organizations and professional employer services under §§91.001(14) and (15) of the Texas Labor Code.(D) Services performed by temporary employees and temporary help firms as defined in §§201.011(20) and (21) of the Texas Labor Code.(E) Services explicitly exempted under any other state law.</content><note type="source"><p>Source Note: The provisions of this §815.134 adopted to be effective February 19, 2007, 32 TexReg 628; amended to be effective April 29, 2019, 44 TexReg 2160.</p></note></section><section identifier="/us/state/tx/tac/t40/p20/c815/scC/s815.135"><num value="815.135">§815.135</num><heading>Voluntary Election by Employers</heading><content>(a) Each employer electing coverage under Chapter 206 of the Act shall make this election in writing on an Agency-specified form or electronic equivalent.(b) Each employer electing to pay reimbursements for benefits, rather than contributions, shall make this election:(1) in writing on the Agency-specified form or electronic equivalent; and(2) in compliance with the requirements of Chapter 205, Subchapter A, of the Act.</content><note type="source"><p>Source Note: The provisions of this §815.135 adopted to be effective February 19, 2007, 32 TexReg 628.</p></note></section><section identifier="/us/state/tx/tac/t40/p20/c815/scC/s815.136"><num value="815.136">§815.136</num><heading>Earned Income Tax Credit</heading><content>This section provides information to employers on the acceptable information to be provided to employees on the federal Earned Income Tax Credit (EITC) as required by Texas Labor Code, Chapter 104. The information regarding general eligibility requirements for the federal EITC in Texas Labor Code §104.002 means IRS Notice 797 or a written statement that provides the same wording as IRS Notice 797.</content><note type="source"><p>Source Note: The provisions of this §815.136 adopted to be effective September 20, 2010, 35 TexReg 8504.</p></note></section></subchapter><subchapter identifier="/us/state/tx/tac/t40/p20/c815/scD"><num value="D">SUBCHAPTER D</num><heading>FARM AND RANCH LABOR</heading><section identifier="/us/state/tx/tac/t40/p20/c815/scD/s815.150"><num value="815.150">§815.150</num><heading>Definition of Terms</heading><content>The following words and terms shall apply to the Act, §§201.028, 201.047, and 204.009, concerning farm and ranch labor, and shall have the following meanings unless the statute or context clearly indicates otherwise.(1) Agricultural association--Any nonprofit or cooperative association of farmers, growers, or ranchers incorporated or qualified under state law, which recruits, solicits, hires, employs, furnishes, or transports migrant or seasonal agricultural workers.(2) Agricultural employer--Any individual who owns or operates a farm, ranch, processing establishment, cannery, gin, packing shed, or nursery or who produces or conditions seed, and who either recruits, solicits, hires, employs, furnishes, or transports any migrant or seasonal agricultural workers.(3) Farm labor contracting activity--The recruiting, soliciting, hiring, employing, furnishing, or transporting of migrant or seasonal agricultural workers.(4) Farm labor contractor--Any individual, other than an agricultural employer, an agricultural association, or an employee of an agricultural employer or agricultural association, who, for any money or other valuable consideration paid or promised to be paid, performs any farm labor contracting activity.(5) Farm and ranch labor--Includes all services performed:(A) On a farm or ranch in the employ of an individual in connection with cultivating the soil; raising or harvesting an agricultural or horticultural commodity, including the raising, shearing, feeding, caring for, training, and management of livestock, bees, poultry, and fur bearing wildlife; or(B) In the employ of the owner, tenant, or other operator of a farm or ranch, in connection with the operation, management, conservation, improvement, or maintenance of such farm or ranch and its tools and equipment, if the major part of such service is performed on a farm or ranch.(6) Labor agent--An individual in Texas, who for a fee offers, attempts to procure, or procures employment for employees; or without a fee offers, attempts to procure, or procures employment for common or agricultural workers; or any individual, who for a fee attempts to procure or procures employees for an employer; or without a fee offers or attempts to procure common or agricultural workers for employers; or any individual, regardless of whether a fee is received or due, who offers, attempts to supply, or supplies the services of common or agricultural workers to any individual.(7) Migrant worker--An individual who is employed in farm or ranch labor of a seasonal or temporary nature and who is required to be absent overnight from his or her permanent place of residence, provided the individual is not a temporary nonimmigrant alien who is authorized to work in agricultural employment in the United States under 8 U.S.C. §1101(a)(15)(H)(ii)(a) and §1184(c).(8) Orchard--A farm devoted primarily to the planting, cultivating, growing, or harvesting of fruits or nuts.(9) Other farm or ranch laborer--An individual employed in farm or ranch labor or who is neither a seasonal worker nor a migrant worker.(10) Seasonal worker--An individual who is employed in farm or ranch labor of a seasonal or temporary nature and is not required to be absent overnight from his or her permanent place of residence, provided the individual is not a temporary nonimmigrant alien who is authorized to work in agricultural employment in the United States under 8 U.S.C. §1101(a)(15)(H)(ii)(a) and §1184(c).(11) Truck farm--A farm on which fruits, garden vegetables for human consumption, potatoes, sugar beets, or vegetable seeds are produced for market.(12) Vineyard--A farm devoted primarily to the planting, cultivating, growing, or harvesting of grapes.</content><note type="source"><p>Source Note: The provisions of this §815.150 adopted to be effective February 19, 2007, 32 TexReg 628.</p></note></section></subchapter><subchapter identifier="/us/state/tx/tac/t40/p20/c815/scE"><num value="E">SUBCHAPTER E</num><heading>CONFIDENTIALITY AND DISCLOSURE OF STATE UNEMPLOYMENT COMPENSATION INFORMATION</heading><section identifier="/us/state/tx/tac/t40/p20/c815/scE/s815.161"><num value="815.161">§815.161</num><heading>Scope and Purpose</heading><content>(a) The purpose of this subchapter is to implement the federal regulations, 20 C.F.R. Part 603, and state law, Texas Labor Code, Chapter 301, Subchapter F, regarding the confidentiality, custody, use, preservation, and disclosure of unemployment compensation information.(b) This subchapter is limited to the confidentiality requirements in federal and state laws and regulations specifically regarding unemployment information. Other laws and regulations may impose additional limitations on the release, custody, use, preservation, and disclosure of information maintained in unemployment insurance records.(c) This subchapter does not:(1) limit or waive any right or obligation of the Agency, party to a claim, employer, or third party to invoke limitations or confidentiality requirements based on such separate laws or regulations; or(2) address any right or obligation a party to an unemployment compensation claim may have to redisclose unemployment insurance information regarding his or her own claim or unemployment insurance tax records obtained lawfully from the Agency.</content><note type="source"><p>Source Note: The provisions of this §815.161 adopted to be effective July 28, 2008, 33 TexReg 5982.</p></note></section><section identifier="/us/state/tx/tac/t40/p20/c815/scE/s815.162"><num value="815.162">§815.162</num><heading>Definitions</heading><content>The following words and terms, when used in this subchapter, shall have the following meanings, unless the context clearly indicates otherwise.(1) Confidential unemployment compensation information--Unemployment compensation information in Agency records, including identifying information regarding any individual or past or present employer or employing unit, or any information that foreseeably could be combined with other publicly available information to reveal identifying information regarding the individual, employer, or employing unit.(2) Informed consent release--A written grant of authorization that meets the requirements of §815.166 of this subchapter made by an individual or employer to a third party to allow access to confidential unemployment compensation information. When a written release is impossible or impracticable to obtain, the third party may present such other form of consent as is permitted by the Agency.(3) Party--The employer or claimant to whom the confidential unemployment compensation information relates. A party includes a base period employer that has appealed a notice of chargeback regarding a specific claim. A party does not include any past or present employer or claimant who is not the subject of the particular claim, except an employer that appealed a notice of chargeback relating to an employee in the chargeback period.(4) Public official--(A) An official, agency, or public entity within the executive branch of federal, state, or local government with responsibility for administering or enforcing a law; or(B) An elected official in the federal, state, or local government.(5) Unemployment compensation information--Information in the Agency's records that pertains to the administration of the Texas Unemployment Compensation Act, including any information collected, received, developed, or maintained in the administration of unemployment compensation benefits, the unemployment compensation tax system, or the unemployment compensation benefit and tax appeal system.</content><note type="source"><p>Source Note: The provisions of this §815.162 adopted to be effective July 28, 2008, 33 TexReg 5982.</p></note></section><section identifier="/us/state/tx/tac/t40/p20/c815/scE/s815.163"><num value="815.163">§815.163</num><heading>Disclosure of Confidential Unemployment Compensation Information</heading><content>(a) The Agency shall not disclose confidential unemployment compensation information except in compliance with federal law, state law, and this subchapter.(b) Notwithstanding any other provision of this chapter, confidential unemployment compensation information shall not be disclosed if such disclosure interferes with the efficient administration of the state unemployment compensation law. In evaluating interference with efficient administration, the Agency may consider factors including, but not limited to, the burdensomeness of the request and whether the request places an employer's or individual's privacy at unacceptable risk.</content><note type="source"><p>Source Note: The provisions of this §815.163 adopted to be effective July 28, 2008, 33 TexReg 5982.</p></note></section><section identifier="/us/state/tx/tac/t40/p20/c815/scE/s815.164"><num value="815.164">§815.164</num><heading>Mandatory and Permissive Disclosures</heading><content>(a) The Agency shall disclose confidential unemployment compensation information if disclosure is necessary for the proper administration of the unemployment compensation program.(b) Disclosure necessary for the proper administration of the unemployment compensation program includes, but is not limited to, disclosure required under 20 C.F.R. §603.6 and disclosure to claimants, employers, and third parties, as necessary, for purposes of unemployment administration and adjudication processes under this chapter.</content><note type="source"><p>Source Note: The provisions of this §815.164 adopted to be effective July 28, 2008, 33 TexReg 5982.</p></note></section><section identifier="/us/state/tx/tac/t40/p20/c815/scE/s815.165"><num value="815.165">§815.165</num><heading>Exceptions to Confidentiality Requirements</heading><content>(a) The Agency may disclose public domain information. For purposes of this section, public domain information includes directory information about the organization of the state, the Commission, and appellate authorities, as well as the names and positions of officials and employees; information about the state unemployment compensation law (and applicable federal law), provisions, rules, regulations, and interpretations, including statements of general policy and interpretations of general applicability; and any agreement relating to the administration of the state unemployment compensation law. Commission-designated precedent case digests from which all individually identifiable information has been removed constitute public domain information. Public domain information does not include information historically excepted from disclosure under the Public Information Act, Chapter 552, Texas Government Code, including, but not limited to, attorney/client privileged information; interagency memoranda containing advice, opinion, or recommendation to policy makers or decision makers; or other items historically excepted from disclosure under the Public Information Act.(b) The Agency may disclose confidential unemployment compensation information about an individual or employer to that individual or employer, respectively , but in no event does this restrict the Agency from withholding information historically excepted from disclosure, including, but not limited to, confidential informant or attorney-client privileged information, or tax audit techniques.(c) The Agency may disclose confidential unemployment compensation information if the requestor provides a written release signed by the individual or the employer whose records are requested, and if the written release demonstrates informed consent.(d) The Agency may disclose confidential unemployment compensation information, based on informed consent, to the following:(1) An agent acting for or in the place of an individual or an employer by the authority of that individual or employer if the agent presents a written release signed by the party to be represented. If a written release is impossible or impracticable to obtain, the Agency may accept other documentation sufficient to establish informed consent.(2) An elected official performing constituent services provided the official presents reasonable evidence of authorization to obtain the information, such as a letter from the individual or employer requesting the elected official's assistance or a written record of a telephone request from the individual or employer that the individual or employer has authorized such disclosure.(3) A licensed attorney retained for purposes unrelated to the state's unemployment compensation law; if the attorney provides a written statement declaring that he or she has been retained to represent the individual or employer, the requirements of a written release will have been met. An attorney retained for purposes related to the state's unemployment compensation law may assert that he or she is representing the individual or employer, and such assertion need not be in writing.(4) A third party that is not acting as an agent, only if that entity provides the Commission with a copy of an informed consent release consistent with the requirements of §815.166 of this subchapter.(5) A third party seeking confidential information on an ongoing basis, only if that entity submits an informed consent release consistent with the requirements of §815.166 of this subchapter. This requirement applies even if the third party is an agent seeking information on an ongoing basis.(e) The Agency may disclose confidential unemployment compensation information to a public official for use in the performance of his or her official duties, including the administration or enforcement of law or execution of the official responsibilities of a federal, state, or local elected official. Administration of law includes research related to the law administered by the public official. Execution of official responsibilities does not include solicitation of contributions or expenditures to or on behalf of a candidate for public or political office or a political party.(f) The Agency may disclose confidential unemployment compensation information to a public official's agent or contractor if such disclosure is permissible under 20 C.F.R. §603.5(e) and only after evaluating the following factors:(1) The potential threat to the employer's or individual's privacy posed by an entity's collection, storage, maintenance, use, and possible misuse of confidential unemployment compensation information;(2) The costs associated with such disclosure;(3) The agent or contractor's ability to comply with the requirements in 20 C.F.R. §603.9 regarding safeguards and security of confidential unemployment compensation information;(4) The costs of enforcement, including investigation and assessment of penalties for misuse of data;(5) The costs to develop, monitor, and maintain systems sufficient to allow audit of the information;(6) The personnel, travel, and equipment expenses associated with periodic monitoring and on-site audits required by 20 C.F.R. §603.10; and(7) Whether the disclosure is for purposes of solicitation of contributions or expenditures to or on behalf of a candidate for public or political office or a political party.(g) The Agency may disclose confidential unemployment compensation information to parties for purposes of claims adjudications, hearings, and appeals, consistent with this chapter.(h) The Agency may disclose confidential unemployment compensation information to a federal official for purposes of UC program oversight and audits, including disclosures under 20 C.F.R. Parts 29 and 601, as well as under C.F.R. Parts 96 and 97.(i) The confidentiality requirements of this chapter do not apply to information collected exclusively for statistical purposes under a cooperative agreement with the Bureau of Labor Statistics (BLS). Further, this chapter's requirements do not restrict or impose any condition on the transfer of any other information to BLS under an agreement, or the disclosure or use of such information by BLS.</content><note type="source"><p>Source Note: The provisions of this §815.165 adopted to be effective July 28, 2008, 33 TexReg 5982.</p></note></section><section identifier="/us/state/tx/tac/t40/p20/c815/scE/s815.166"><num value="815.166">§815.166</num><heading>Informed Consent Release</heading><content>The Agency may disclose confidential unemployment compensation information upon submission of an informed consent release as set forth in this section. An informed consent release is a written release that must be signed by the individual or employer, and must specify the following:(1) The information to be disclosed;(2) That the information will be obtained through access of state government files;(3) The purpose or purposes for which the information is sought;(4) That the information obtained under the release will be used only for that purpose;(5) The individuals or entities that may receive the information; and(6) A purpose limited to assisting the individual with obtaining a service or benefit, or meeting a federal or state law requirement for the administration or evaluation of a public program to which the release pertains.</content><note type="source"><p>Source Note: The provisions of this §815.166 adopted to be effective July 28, 2008, 33 TexReg 5982.</p></note></section><section identifier="/us/state/tx/tac/t40/p20/c815/scE/s815.167"><num value="815.167">§815.167</num><heading>Subpoenas and Court Orders</heading><content>The Agency may disclose confidential unemployment compensation information in compliance with:(1) a court order specifically requiring such disclosure; or(2) a subpoena issued by a local, state, or federal official, other than a court clerk, provided the official possesses legal authority to obtain such information by subpoena under state or federal law.</content><note type="source"><p>Source Note: The provisions of this §815.167 adopted to be effective July 28, 2008, 33 TexReg 5982.</p></note></section><section identifier="/us/state/tx/tac/t40/p20/c815/scE/s815.168"><num value="815.168">§815.168</num><heading>Charges for Disclosure of Unemployment Compensation Information</heading><content>(a) The Agency shall recoup the cost of providing unemployment compensation information consistent with 20 C.F.R. §603.8. The Agency may charge actual charges and may set standardized charges for items routinely requested.(b) The Agency may only release unemployment compensation information for non-unemployment compensation purposes to the following individuals if the unemployment compensation program is reimbursed and there is a written, enforceable confidentiality agreement:(1) Third-party requestors;(2) Public officials; and(3) Contractors of a public official provided the public official remains liable for the actions of the contractor.</content><note type="source"><p>Source Note: The provisions of this §815.168 adopted to be effective July 28, 2008, 33 TexReg 5982.</p></note></section></subchapter><subchapter identifier="/us/state/tx/tac/t40/p20/c815/scF"><num value="F">SUBCHAPTER F</num><heading>EXTENDED BENEFITS</heading><section identifier="/us/state/tx/tac/t40/p20/c815/scF/s815.170"><num value="815.170">§815.170</num><heading>State "On" and "Off" Indicator Weeks: Conditional Trigger</heading><content>(a) Pursuant to §209.025 of the Act, if full federal funding for Extended Benefits is available, a week is a state "on" indicator week if:(1) the average rate of total unemployment in Texas (seasonally adjusted), as determined by the US Secretary of Labor, for the period consisting of the most recent three months for which data for all states are published before the close of such week equals or exceeds 6.5 percent; and(2) the average rate of total unemployment in Texas (seasonally adjusted), as determined by the US Secretary of Labor, for the three-month period referred to in paragraph (1) of this subsection, equals or exceeds 110 percent of such average rate for either, or both, of the corresponding three-month periods ending in the two preceding calendar years.(b) There is a state "off" indicator for a week if either the requirements of subsection (a)(1) or (a)(2) of this section are not satisfied.(c) Notwithstanding this section, any week for which there would otherwise be a state "on" indicator under §209.022 of the Act, shall continue to be such a week and shall not be determined to be a week for which there is a state "off" indicator.</content><note type="source"><p>Source Note: The provisions of this §815.170 adopted to be effective November 2, 2009, 34 TexReg 7655; amended to be effective May 2, 2011, 36 TexReg 2735; amended to be effective October 12, 2020, 45 TexReg 7273.</p></note></section><section identifier="/us/state/tx/tac/t40/p20/c815/scF/s815.171"><num value="815.171">§815.171</num><heading>High Unemployment Period: Maximum Total Extended Benefit Amount</heading><content>(a) If the conditions under §815.170(a) of this subchapter are met, and the average rate of total unemployment equals or exceeds 8 percent, a high unemployment period shall exist.(b) Effective with respect to weeks beginning in a high unemployment period, the total extended benefit amount payable to an eligible claimant for the claimant's eligibility period is the lesser of:(1) 80 percent of the total amount of regular compensation payable to the claimant during the claimant's benefit year under the Act;(2) 20 times the claimant's average weekly benefit amount; or(3) 46 times the claimant's average weekly benefit amount, reduced by the regular compensation paid, during the claimant's benefit year under the Act.(c) Pursuant to §209.025 of the Act, if the full federal funding for Extended Benefits provides for an additional extended benefit amount payable to an eligible claimant in excess of that provided for in subsection (b) of this section, that amount shall be the total extended benefit amount.</content><note type="source"><p>Source Note: The provisions of this §815.171 adopted to be effective November 2, 2009, 34 TexReg 7655; amended to be effective May 2, 2011, 36 TexReg 2735; amended to be effective October 12, 2020, 45 TexReg 7273.</p></note></section><section identifier="/us/state/tx/tac/t40/p20/c815/scF/s815.172"><num value="815.172">§815.172</num><heading>Concurrent Emergency Unemployment Compensation Programs</heading><content>The Agency may pay unemployment compensation benefits under other emergency unemployment compensation programs that may be in effect prior to paying Extended Benefits under this subchapter.</content><note type="source"><p>Source Note: The provisions of this §815.172 adopted to be effective November 2, 2009, 34 TexReg 7655; amended to be effective October 12, 2020, 45 TexReg 7273.</p></note></section><section identifier="/us/state/tx/tac/t40/p20/c815/scF/s815.174"><num value="815.174">§815.174</num><heading>Financing of Extended Benefits</heading><content>(a) Pursuant to §209.025 of the Act, if full federal funding for Extended Benefits is available, the provisions of §209.082, Charges to Reimbursing Employer, and §209.083, Charges to Taxed Employer, of the Act shall not apply.(b) The provisions of §209.084, Charges to Governmental Employer, and §209.0845, Charges to Indian Tribe, of the Act shall continue to apply.</content><note type="source"><p>Source Note: The provisions of this §815.174 adopted to be effective November 2, 2009, 34 TexReg 7655; amended to be effective October 12, 2020, 45 TexReg 7273.</p></note></section><section identifier="/us/state/tx/tac/t40/p20/c815/scF/s815.175"><num value="815.175">§815.175</num><heading>Federal Waiver to Preserve Access to Extended Benefits</heading><content>Pursuant to §209.025 of the Act, if full federal funding for Extended Benefits is available and the Agency is permitted to reduce or eliminate the number of weeks between the end of an extended benefit period and the beginning of a new extended benefit period required by §203(b)(1)(B) of the Extended Unemployment Compensation Act of 1970, the Agency shall reduce or eliminate the number of weeks accordingly to maximize the receipt of any fully funded federal Extended Benefits. This section operates retroactively, if applicable.</content><note type="source"><p>Source Note: The provisions of this §815.175 adopted to be effective July 19, 2021, 46 TexReg 4372.</p></note></section></subchapter><subchapter identifier="/us/state/tx/tac/t40/p20/c815/scG"><num value="G">SUBCHAPTER G</num><heading>CARES ACT PROVISIONS</heading><section identifier="/us/state/tx/tac/t40/p20/c815/scG/s815.180"><num value="815.180">§815.180</num><heading>Definitions</heading><content>The following definitions shall apply to this subchapter:(1) CARES Act--refers to the Coronavirus Aid, Relief, and Economic Security Act, Public Law 116 - 136; TITLE II--Assistance for American Workers, Families, and Businesses; Subtitle A--Unemployment Insurance Provisions.(2) FPUC--refers to the Federal Pandemic Unemployment Compensation provisions of §2104 of the CARES Act.(3) FRWW--refers to the Federally Reimbursed Waiting Week provisions of §2105 of the CARES Act.(4) MEUC--refers to the Mixed Earner Unemployment Compensation provisions of §2104 of the CARES Act.(5) PEUC--refers to the Pandemic Emergency Unemployment Compensation provisions of §2107 of the CARES Act.(6) PUA--refers to the Pandemic Unemployment Assistance provisions of §2102 of the CARES Act.</content><note type="source"><p>Source Note: The provisions of this §815.180 adopted to be effective October 12, 2020, 45 TexReg 7273; amended to be effective July 19, 2021, 46 TexReg 4372.</p></note></section><section identifier="/us/state/tx/tac/t40/p20/c815/scG/s815.181"><num value="815.181">§815.181</num><heading>Coordination of CARES Act Programs</heading><content>(a) For a claimant who is eligible for regular compensation, including Unemployment Compensation for Federal Employees (UCFE) and Unemployment Compensation for Ex-servicemembers (UCX), the following order of payment applies:(1) The claimant must first apply for and receive regular compensation. The amount and duration of these benefits are as defined by the Act;(2) if the claimant exhausts regular compensation, the claimant may then be eligible to receive PEUC;(3) if the claimant exhausts PEUC and the state has "triggered on" to Extended Benefits (EB) under Chapter 209 of the Act, the claimant may then be eligible to receive EB;(4) if the State is not "triggered on" to EB or the claimant exhausts EB, the claimant may then be eligible to receive PUA. If the State "triggers on" to EB during the period in which the claimant is collecting PUA and the claimant has not previously exhausted entitlement to EB for the respective benefit year, then the claimant must stop collecting PUA and file for EB; and(5) the claimant meets the qualifications to receive Trade Readjustment Allowances (TRA), such benefits will be payable after regular compensation, PEUC, and EB if "triggered on," but prior to PUA.(b) For a claimant who is not eligible for regular compensation, PEUC, EB, or TRA, and who meets the federal requirements, the claimant may be eligible to collect PUA.(c) If a claimant is receiving PEUC, EB, or PUA, and becomes eligible for regular compensation, the claimant must stop collecting PEUC, EB, or PUA and file a new claim for regular compensation, with the following exception: For a claimant whose regular compensation benefit year expires after December 27, 2020, if the claimant is entitled to, and has a remaining entitlement to, PEUC with respect to that benefit year, the Agency shall establish a new benefit year, but defer the payment of regular compensation with respect to that new benefit year until exhaustion of all PEUC payable with respect to the prior benefit year if the individual's weekly benefit amount of regular compensation in the new benefit year is at least $25 less than the individual's weekly benefit amount on the PEUC claim.(d) A claimant who is receiving EB for the week of unemployment that includes December 27, 2020, or the week ending March 13, 2021, shall not be eligible for PEUC until the individual has exhausted all rights to EB.(e) For weeks of unemployment beginning January 3, 2021, a claimant's eligibility for EB shall be considered to include any week that begins after the individual exhausts all rights to PEUC and that falls during an EB period that began after the date the individual exhausted all rights to PEUC. This applies even if the claimant's benefit year has expired, provided the state is in an EB period as of the date the individual exhausts PEUC.(f) FPUC provides for additional compensation to a claimant collecting regular compensation, PEUC, PUA, EB, a Shared Work program under Chapter 215 of the Act, TRA, and Disaster Unemployment Assistance (DUA). Claimants will receive FPUC payments concurrently with payments under these programs.(g) MEUC provides for additional compensation to a claimant collecting regular compensation, PEUC, EB, a Shared Work program under Chapter 215 of the Act, TRA, and DUA. It does not provide additional compensation to a claimant collecting PUA. Claimants will receive MEUC payments concurrently with payments under these programs.(h) In operationalizing these requirements, the Agency may further amend the dates in this section in response to federal statute or regulation.</content><note type="source"><p>Source Note: The provisions of this §815.181 adopted to be effective October 12, 2020, 45 TexReg 7273; amended to be effective July 19, 2021, 46 TexReg 4372.</p></note></section><section identifier="/us/state/tx/tac/t40/p20/c815/scG/s815.182"><num value="815.182">§815.182</num><heading>Appeals</heading><content>(a) A claimant may appeal an adverse FPUC, FRWW, MEUC, PEUC, or PUA determination pursuant to the provisions and timeframes of Chapter 212 of the Act and the provisions set out in §815.16 of this chapter (relating to Appeals to Appeal Tribunals from Determinations), §815.17 of this chapter (relating to Appeals to the Commission from Decisions), and §815.18 of this chapter (relating to General Rules for Both Appeal Stages).(b) An employer is not a "party of interest," pursuant to §815.15(c) of this chapter (relating to Parties with Appeal Rights), to an FPUC, FRWW, MEUC, PEUC, or PUA determination and therefore does not have appeal rights. An employer may appear at an FPUC, FRWW, MEUC, PEUC, or PUA hearing to offer evidence when appropriate.(c) When considering an appeal involving FPUC and/or MEUC, the Appeal Tribunal and the Commission shall look to the merits of the denial of the underlying benefit when determining eligibility for FPUC and/or MEUC payments.</content><note type="source"><p>Source Note: The provisions of this §815.182 adopted to be effective October 12, 2020, 45 TexReg 7273; amended to be effective July 19, 2021, 46 TexReg 4372.</p></note></section><section identifier="/us/state/tx/tac/t40/p20/c815/scG/s815.183"><num value="815.183">§815.183</num><heading>Waiver</heading><content>FPUC, FRWW, MEUC, PEUC, and PUA are federal extended unemployment compensation programs and therefore subject to §815.12 of this chapter (relating to Waiver of Repayment and Recovery of Federal Extended Unemployment Compensation Overpayments).</content><note type="source"><p>Source Note: The provisions of this §815.183 adopted to be effective October 12, 2020, 45 TexReg 7273; amended to be effective July 19, 2021, 46 TexReg 4372.</p></note></section><section identifier="/us/state/tx/tac/t40/p20/c815/scG/s815.184"><num value="815.184">§815.184</num><heading>Overpayments</heading><content>(a) Unless an FPUC, FRWW, MEUC, or PEUC overpayment is otherwise recovered or waived, the Agency shall, during the three-year period after the date the claimant received the payment of FPUC, FRWW, MEUC, or PEUC to which the claimant was not entitled, recover the overpayment by deductions from any sums payable to the claimant.(b) Unless a PUA overpayment is otherwise recovered or waived, the Agency shall recover the overpayment by deductions from any sums payable to the claimant. A PUA overpayment is not subject to the three-year period limitation stated in subsection (a) of this section.(c) The Agency shall deduct 50 percent per each single deduction of the amount of FPUC, FRWW, MEUC, PEUC, or PUA otherwise payable to the claimant to recover an overpayment.(d) If a claimant has an unemployment benefits overpayment with an appropriate agency in another state, and the Agency has a reciprocal arrangement with that other state agency under §211.004 of the Act, the Agency shall deduct 50 percent per each single deduction of the amount of FPUC, FRWW, MEUC, PEUC, or PUA otherwise payable to the claimant.</content><note type="source"><p>Source Note: The provisions of this §815.184 adopted to be effective October 12, 2020, 45 TexReg 7273; amended to be effective July 19, 2021, 46 TexReg 4372.</p></note></section><section identifier="/us/state/tx/tac/t40/p20/c815/scG/s815.185"><num value="815.185">§815.185</num><heading>Fraud</heading><content>(a) Unless otherwise conflicting with federal statute or regulation, a penalty for fraudulently obtaining benefits under §214.003 of the Act shall not apply to fraudulently obtained FPUC, FRWW, MEUC, and PEUC benefits forfeited.(b) The Agency and the Commission shall examine the underlying payment or statement which precipitated the fraud determination when examining FPUC and/or MEUC fraud.(c) In determining disqualification for fraud under PUA, the provisions of 20 CFR §625.14(i) shall apply.</content><note type="source"><p>Source Note: The provisions of this §815.185 adopted to be effective October 12, 2020, 45 TexReg 7273; amended to be effective July 19, 2021, 46 TexReg 4372.</p></note></section></subchapter><subchapter identifier="/us/state/tx/tac/t40/p20/c815/scH"><num value="H">SUBCHAPTER H</num><heading>COLLECTION ACTION</heading><section identifier="/us/state/tx/tac/t40/p20/c815/scH/s815.190"><num value="815.190">§815.190</num><heading>Service of a Notice of Assessment in General</heading><content>(a) This section applies to a service of a notice of assessment under §213.032(a) of the Act.(b) As used in this subchapter, service "in another manner that is reasonably calculated to give the employer notice of the assessment" shall be referred to as "substituted service."(c) The Agency may attempt all forms of service authorized by the Act. Additionally, the Agency may engage third-party designees to provide service, including a process server, sheriffs or constables, common carrier, or other courier service when attempting service, as applicable.(d) Service by personal delivery and substituted service may be attempted at addresses other than the address as shown by Agency records, including those designated under Texas Business Organizations Code, Chapter 5 and from third-party background and reporting agencies, online searches, and other government records.(e) When collecting an overpayment of benefits from a claimant through a notice of assessment, as authorized by §212.006(b) and §214.002(a)(3) of the Act, the term "claimant" shall be substituted for the terms "employer" and "defaulting employer" found in Chapter 213, Subchapters C and D of the Act, as applicable. Collection by making a claimant assessment is limited to the third anniversary after the benefit overpayment becomes final except as otherwise tolled by §213.033 of the Act.(f) A party seeking to contest service shall do so under §213.032(c) of the Act.</content><note type="source"><p>Source Note: The provisions of this §815.190 adopted to be effective January 9, 2023, 48 TexReg 54.</p></note></section><section identifier="/us/state/tx/tac/t40/p20/c815/scH/s815.191"><num value="815.191">§815.191</num><heading>Service of a Notice of Assessment by Personal Delivery or Mail</heading><content>(a) This section applies to a service of a notice of assessment under §213.032(a)(1) and (2) of the Act.(b) An "employer's address as shown by commission records" includes the employer's address as reported on its status report, as provided under §815.3 of this chapter, or other address maintained by the Agency for the purpose of corresponding with the employer.(c) Service of a notice of assessment upon a claimant shall be served upon the claimant's address as shown by Agency records. For service upon a claimant, this includes the address as provided under §815.3(c) of this chapter, or other address maintained by the Agency for the purposes of corresponding with the claimant.(d) The Agency or its designee may make multiple service attempts by personal delivery and registered or certified mail before attempting substituted service.</content><note type="source"><p>Source Note: The provisions of this §815.191 adopted to be effective January 9, 2023, 48 TexReg 54.</p></note></section><section identifier="/us/state/tx/tac/t40/p20/c815/scH/s815.192"><num value="815.192">§815.192</num><heading>Service of a Notice of Assessment by Substituted Service</heading><content>(a) This section applies to substituted service of a notice of assessment under §213.032(a)(3) of the Act.(b) The Agency may use the following methods to effectuate substituted service:(1) Those methods specifically mentioned by the Texas Rules of Civil Procedure Rule 106(b);(2) By Agency-established contact methods including the Unemployment Tax Services and the Unemployment Benefits Services portals or their equivalents;(3) Mail to another known address;(4) As set out in Texas Business Organizations Code, Chapter 5, and Civil Practice and Remedies Code, Chapter 17; and(5) Other means of service expressly permitted or prescribed by state law.(c) The Agency or its designee may make multiple substituted service attempts if there exist multiple manners reasonably calculated to give the employer notice of the assessment.</content><note type="source"><p>Source Note: The provisions of this §815.192 adopted to be effective January 9, 2023, 48 TexReg 54.</p></note></section></subchapter></chapter><chapter identifier="/us/state/tx/tac/t40/p20/c817"><num value="817">CHAPTER 817</num><heading>CHILD LABOR</heading><subchapter identifier="/us/state/tx/tac/t40/p20/c817/scA"><num value="A">SUBCHAPTER A</num><heading>GENERAL PROVISIONS</heading><section identifier="/us/state/tx/tac/t40/p20/c817/scA/s817.1"><num value="817.1">§817.1</num><heading>Title and Purpose</heading><content>(a) Title. These rules may be cited as the Texas Child Labor Rules.(b) Purpose. The purpose of these rules is to implement and interpret the provisions of the Texas Labor Code, Chapter 51, Employment of Children.</content><note type="source"><p>Source Note: The provisions of this §817.1 adopted to be effective January 12, 1998, 23 TexReg 150.</p></note></section><section identifier="/us/state/tx/tac/t40/p20/c817/scA/s817.2"><num value="817.2">§817.2</num><heading>Definitions</heading><content>The following words and terms, when used in this chapter or in Texas Labor Code, Chapter 51, shall have the following meanings.(1) Agency--The unit of state government established under Texas Labor Code, Chapter 301, that is presided over by the Commission and administered by the executive director to operate the integrated workforce development system; administer the unemployment compensation insurance program in this state as established under the Texas Unemployment Compensation Act, Texas Labor Code, Title 4, Subtitle A, as amended; and enforce child labor protections under Texas Labor Code, Chapter 51.(2) Applicant--A child or the child's parent, legal guardian, legal custodian, or prospective employer.(3) Business or enterprise operated by a parent or custodian--A business or enterprise in which a parent or custodian exerts active direct control over the entire operation of the business or enterprise by making day-to-day decisions affecting basic income and work assignments, hiring and firing employees, and exercising direct supervision of the work.(4) Business or enterprise owned by a parent or custodian--A business or enterprise owned by a parent or custodian as a sole proprietor, a partner in a partnership, or an officer or member of a corporation.(5) Casual employment--Employment that is irregular or intermittent and not on a scheduled basis.(6) Child--An individual under 18 years of age.(7) Child actor--A child under the age of 14 who is to be employed as an actor or other performer.(8) Child actor extra--A child under the age of 14 who is employed as an extra without any speaking, singing, or dancing roles, usually in the background of the performance.(9) Commission--The body of governance of the Texas Workforce Commission composed of three members appointed by the governor as established under Texas Labor Code §301.002 that includes one representative of labor, one representative of employers, and one representative of the public. The duties of the Commission include reviewing the decision of a child labor appeal tribunal under Subchapter D, Chapter 51, of the Texas Labor Code. The definition of Commission shall apply to all uses of the term in rules contained in this part, unless otherwise defined, relating to the Texas Workforce Commission.(10) Direct supervision of the parent or custodian--A child is employed under the direct supervision of a parent or custodian when the parent or custodian controls, directs, and supervises all activities of the child.(11) Employee--An individual who is employed by an employer for compensation.(12) Employer--A person who employs one or more employees or acts directly or indirectly in the interests of an employer in relation to an employee.(13) Employment--Any service, including service in interstate commerce, that is performed for compensation or under a contract of hire, whether written, oral, express, or implied.(14) Employs--To suffer or permit to work.(15) Executive director--The executive director of the Texas Workforce Commission or the executive director's designee.(16) Private school--As set forth in Texas Education Code, Chapter 5, a school that offers a course of instruction for students in one or more grades from prekindergarten through grade 12, and is not operated by a governmental entity.</content><note type="source"><p>Source Note: The provisions of this §817.2 adopted to be effective January 12, 1998, 23 TexReg 150; amended to be effective August 11, 2014, 39 TexReg 6065; amended to be effective December 30, 2024, 49 TexReg 10662.</p></note></section><section identifier="/us/state/tx/tac/t40/p20/c817/scA/s817.3"><num value="817.3">§817.3</num><heading>Employment of Children</heading><content>Employment of children not permitted by Subchapter B of this chapter (relating to Limitations on the Employment of Children), Subchapter C of this chapter (relating to Employment of Child Actors), or the Texas Labor Code, Chapter 51, is prohibited.</content><note type="source"><p>Source Note: The provisions of this §817.3 adopted to be effective January 12, 1998, 23 TexReg 150.</p></note></section><section identifier="/us/state/tx/tac/t40/p20/c817/scA/s817.4"><num value="817.4">§817.4</num><heading>Statement of Commission Intent</heading><content>(a) In adopting §817.21 of this title (relating to Limitations on the Employment of 14 and 15 Year Old Children) and §817.23 of this title (relating to Limitations on the Employment of 16 and 17 Year Old Children), the Commission intends for the federal child labor laws to govern the employment of children in Texas, unless a provision of this chapter or Texas Labor Code, Chapter 51, clearly indicates otherwise. The Commission so intends only to the extent the federal laws are consistent with Texas Labor Code, Chapter 51.(b) In adopting §817.24 of this title (relating to Limitations on the Employment of Children to Solicit), the Commission recognizes and hereby implements the legislative intent of Texas Labor Code §51.0145 to apply to the employment of children to sell or solicit products or services usually in a door-to-door manner, but which occasionally takes other forms, such as in parking lots or other common areas. The activity that is the subject of this regulation has been variously labeled over the years as candy sales, door-to-door sales, youth peddling, traveling youth crews, and other names. The activity usually involves one or more recruiters or drivers and at least one product supplier. The operation may involve taking children from lower income neighborhoods to sell in higher income neighborhoods, using a name and presentation that suggests the activity is aimed primarily at keeping the children out of gangs and off drugs.</content><note type="source"><p>Source Note: The provisions of this §817.4 adopted to be effective January 12, 1998, 23 TexReg 150; amended to be effective April 22, 1999, 24 TexReg 3111; amended to be effective November 18, 1999, 24 TexReg 10140.</p></note></section><section identifier="/us/state/tx/tac/t40/p20/c817/scA/s817.5"><num value="817.5">§817.5</num><heading>Certificate of Age</heading><content>(a) To request a certificate of age, an applicant must submit the following:(1) a completed application on a form provided by the Agency;(2) a recent photograph (color or black and white) approximately 1 1/2 inches by 1 1/2 inches, showing a full head shot of the applicant; and(3) proof of age. A copy of one of the following documents is required as proof of age:(A) birth certificate;(B) baptismal certificate showing the date of birth;(C) life insurance policy insuring the life of the child and reflecting the date of his or her birth;(D) passport or certificate of arrival in the United States issued not more than one year prior to the date of application for certificate; or(E) the school record or the school-census record of the age of the child, together with the sworn statement of a parent, guardian, or person having custody of the child as to the age of the child, and a certificate signed by a physician specifying his or her opinion as to the age of the child, and the height, weight, and other facts relating to development upon which his or her opinion concerning age is based.(b) Certificates of age are effective from the date of their issuance until the applicant reaches 18 years of age. No renewal is necessary, but lost certificates may be reissued upon new application.</content><note type="source"><p>Source Note: The provisions of this §817.5 adopted to be effective January 12, 1998, 23 TexReg 150; amended to be effective December 30, 2024, 49 TexReg 10662.</p></note></section><section identifier="/us/state/tx/tac/t40/p20/c817/scA/s817.6"><num value="817.6">§817.6</num><heading>Appeals</heading><content>Hearings conducted under Texas Labor Code, Chapter 51, are subject to the rules and hearing procedures set out in Chapter 815 of this title, except to the extent that such sections are clearly inapplicable or contrary to provisions set out under this chapter or under Texas Labor Code, Chapter 51.</content><note type="source"><p>Source Note: The provisions of this §817.6 adopted to be effective November 6, 2000, 25 TexReg 11104; amended to be effective December 30, 2024, 49 TexReg 10662.</p></note></section></subchapter><subchapter identifier="/us/state/tx/tac/t40/p20/c817/scB"><num value="B">SUBCHAPTER B</num><heading>LIMITATIONS ON THE EMPLOYMENT OF CHILDREN</heading><section identifier="/us/state/tx/tac/t40/p20/c817/scB/s817.21"><num value="817.21">§817.21</num><heading>Limitations on the Employment of 14- and 15-Year-Old Children</heading><content>The Commission adopts by reference 29 Code of Federal Regulations (CFR) §§570.31 - 570.34 and §§570.70 - 570.72 in effect on the date this section is adopted or the successor rule to any such regulation adopted by the U.S. Department of Labor, as state rules governing the employment of 14- and 15-year-old children in Texas, to the extent that they are consistent with the Fair Labor Standards Act (FLSA), 29 United States Code (USC) §201 et seq. In the event of any inconsistency between federal regulations and FLSA, FLSA shall take precedence. These rules apply to such employment whether or not that employment is subject to FLSA. The application of this section is limited to the extent it is consistent with Texas Labor Code, Chapter 51.</content><note type="source"><p>Source Note: The provisions of this §817.21 adopted to be effective January 12, 1998, 23 TexReg 150; amended to be effective April 22, 1999, 24 TexReg 3111; amended to be effective August 11, 2014, 39 TexReg 6065.</p></note></section><section identifier="/us/state/tx/tac/t40/p20/c817/scB/s817.22"><num value="817.22">§817.22</num><heading>Hardship Waiver of Hours Requirements for 14- and 15-Year-Old Children</heading><content>(a) An applicant applying for a hardship waiver from the limitations on hours worked for 14- and 15-year-old children must obtain a certificate of age under the provisions of §817.5 of this chapter and file a hardship application. The applicant may file both applications concurrently.(b) A hardship application must contain:(1) full details of the prospective employment and the proposed hours to be worked;(2) a written statement that it is necessary for the child to work to support himself or his immediate family, with supporting information;(3) a written statement from the principal of the school in which the child is enrolled as to the advisability of allowing the child to work the hours identified; and(4) a written statement from the prospective employer. The prospective employer's statement shall provide:(A) that the child will be employed; and(B) full details of the work, including rate of pay, hours to be worked, and expected duration of employment.(c) A hardship application may contain any other information the applicant believes would support granting the waiver.(d) All waivers shall be valid for one year unless established for a shorter period and may be extended at the sole discretion of the executive director.(e) After all pertinent information has been reviewed by the Agency, the waiver will be granted or denied. If additional information is needed before a decision is made, the Agency may gather additional facts and schedule a conference to review the merits of the application with interested persons.(f) At any conference, the Agency will be represented by an employee designated by the executive director, who shall make a written report to the executive director within 20 working days following the conference. The report shall contain a determination as to whether or not the waiver should be granted. Unless changed by the executive director, the initial determination shall remain in full force and effect. All interested parties will be advised in writing of the final determination of the Agency as soon as practicable. No appeal to the Commission is authorized.(g) This proceeding is not a contested case under the Texas Government Code, Chapter 2001, Administrative Procedure Act.</content><note type="source"><p>Source Note: The provisions of this §817.22 adopted to be effective January 12, 1998, 23 TexReg 150; amended to be effective December 30, 2024, 49 TexReg 10662.</p></note></section><section identifier="/us/state/tx/tac/t40/p20/c817/scB/s817.23"><num value="817.23">§817.23</num><heading>Limitations on the Employment of 16- and 17-Year-Old Children</heading><content>The Commission adopts by reference 29 CFR §§570.50 - 570.68 in effect on the date this section is adopted or the successor rule to any such regulation adopted by the U.S. Department of Labor, as state rules governing the employment of 16- and 17-year-old children in Texas, to the extent that they are consistent with FLSA, 29 USC §201 et seq. In the event of any inconsistency between federal regulations and FLSA, FLSA shall take precedence. These rules apply to such employment whether or not that employment is subject to FLSA. The application of this section is limited to the extent it is consistent with Texas Labor Code, Chapter 51.</content><note type="source"><p>Source Note: The provisions of this §817.23 adopted to be effective January 12, 1998, 23 TexReg 150; amended to be effective April 22, 1999, 24 TexReg 3111; amended to be effective August 11, 2014, 39 TexReg 6065.</p></note></section><section identifier="/us/state/tx/tac/t40/p20/c817/scB/s817.24"><num value="817.24">§817.24</num><heading>Limitations on the Employment of Children to Solicit</heading><content>(a) A person may not begin the employment of a child to solicit as defined in Texas Labor Code §51.0145 and as described in §817.4(b) of this chapter, until the Agency's Wage and Hour Department has received:(1) a copy of the signed Parental Consent Form approved by the Agency; and(2) the information required by statute to be provided to the individual who gives consent.(b) A copy of the Parental Consent Form may be obtained from the Agency's Wage and Hour Department.(c) A person employing a child under Texas Labor Code §51.0145 shall limit each solicitation trip to within a radius of no greater than thirty miles from the child's home, unless the parent or other person identified in Texas Labor Code §51.0145(c)(1) signs a Parental Consent Form in advance of the solicitation trip specifically approving a greater distance.</content><note type="source"><p>Source Note: The provisions of this §817.24 adopted to be effective November 18, 1999, 24 TexReg 10140; amended to be effective December 30, 2024, 49 TexReg 10662.</p></note></section></subchapter><subchapter identifier="/us/state/tx/tac/t40/p20/c817/scC"><num value="C">SUBCHAPTER C</num><heading>EMPLOYMENT OF CHILD ACTORS</heading><section identifier="/us/state/tx/tac/t40/p20/c817/scC/s817.31"><num value="817.31">§817.31</num><heading>Child Actor Authorization</heading><content>(a) A child under 14 years of age may be employed in Texas as a child actor only by compliance with the provisions of this subchapter.(b) Every person applying for child actor authorization must submit:(1) an application for authorization on a form provided by the Agency and signed by a parent, guardian, or person having custody of the child;(2) proof of age; and(3) a photograph that complies with §817.5 of this chapter.(c) An authorization is effective when issued and expires when the child reaches 14 years of age unless the Agency establishes a shorter time period. Lost authorization certificates may be reissued upon new application.</content><note type="source"><p>Source Note: The provisions of this §817.31 adopted to be effective January 12, 1998, 23 TexReg 150; amended to be effective December 30, 2024, 49 TexReg 10662.</p></note></section><section identifier="/us/state/tx/tac/t40/p20/c817/scC/s817.32"><num value="817.32">§817.32</num><heading>Application Exceptions</heading><content>(a) Special authorization for child actors to be employed as extras is granted without the need for filing an application if the employer or its agent:(1) communicates with the Agency prior to the actual work being performed, identifying the employer, the project, the approximate number of extras intended to be employed on the particular project, and the anticipated dates of employment;(2) prior to employment, uses reasonable efforts to establish that each prospective child actor extra is under 14 years of age;(3) secures the written consent of a parent, guardian, or person having custody of the child to his or her employment as an extra on the particular project;(4) notifies all affected school principals of the intent to employ their students as extras, furnishing such details concerning the nature and duration of the work as to give school authorities reasonable information concerning the proposed use of their students in the particular project; and(5) submits a written post-production report to the Agency, within 10 days following the last day extras are employed, identifying the name, social security number, date of birth, and inclusive dates of employment for each child actor so employed, certifying compliance with Texas Labor Code, Chapter 51 and this chapter.(b) Special authorizations for extras are deemed effective upon employment and expire as soon as one of the following events occurs:(1) the child reaches age 14;(2) the child receives a Child Actor Authorization;(3) the parent, guardian, or person having custody of the child revokes consent in writing; or(4) the child's employment on the particular project by that employer ends.</content><note type="source"><p>Source Note: The provisions of this §817.32 adopted to be effective January 12, 1998, 23 TexReg 150; amended to be effective December 30, 2024, 49 TexReg 10662.</p></note></section><section identifier="/us/state/tx/tac/t40/p20/c817/scC/s817.33"><num value="817.33">§817.33</num><heading>Limitations on Employment of Child Actors</heading><content>No child actor under 14 years of age may be employed:(1) in a manner that results in a failure to receive class credits because of unexcused class absences, or any violation of the State Compulsory School Attendance Law, Texas Education Code, §25.085, either as it is presently worded or may hereafter be amended to read, or of any rules promulgated thereunder;(2) in a position declared hazardous by the Commission;(3) during hours that would not be within the limits set by Texas Labor Code, §51.013, for 14 and 15 year old children, except that the child is permitted, with parental consent, to work during otherwise prohibited hours, so long as the child does not work again for the same employer within 12 hours after completing work for the particular session and does not by being so employed work in excess of eight hours in one day or 48 hours in one week;(4) where the child is required to use a dressing room that is simultaneously occupied by an adult or by a child of the opposite sex;(5) where the child is not provided with a suitable place to rest or play;(6) where the child is sent to wardrobe, makeup, or hair-dressing, unless the child is under the general supervision of the child's parent, guardian, or person having custody of the child if the parent, guardian or person having custody is physically present at the place of employment;(7) where the child's parent, guardian, or person having custody of the child is prevented from being present at the place of employment while the child is working;(8) where the child's parent, guardian, or person having custody of the child is prevented from being within sight and sound of the child at any time during employment; or(9) for more than two consecutive school days during a school year in which the child is legally required to attend school without being furnished a tutor for the child's continuing education. The tutor shall be certified to teach in Texas by the Texas Education Agency or the State Board for Educator Certification, and shall make reasonable efforts to coordinate subjects and assignments with the child's classroom teachers.</content><note type="source"><p>Source Note: The provisions of this §817.33 adopted to be effective January 12, 1998, 23 TexReg 150.</p></note></section></subchapter><subchapter identifier="/us/state/tx/tac/t40/p20/c817/scD"><num value="D">SUBCHAPTER D</num><heading>VIOLATIONS AND ADMINISTRATIVE PENALTIES</heading><section identifier="/us/state/tx/tac/t40/p20/c817/scD/s817.34"><num value="817.34">§817.34</num><heading>Violations</heading><content>(a) An offense under Texas Labor Code, Chapter 51, is criminal conduct and includes a requirement of culpability per Texas Penal Code, Chapter 6.(b) A person commits a violation by failing to adhere to a requirement or restriction of Texas Labor Code, Chapter 51, or this chapter. A person may commit a violation and an offense for the same activity. A violation under Texas Labor Code, Chapter 51, is administrative in nature and not criminal conduct and does not include a requirement of culpability.(c) An inspection may result in multiple violations, each with a penalty amount not to exceed $10,000.(d) The Agency has jurisdiction over violations that occurred during the five-year period preceding, up to, and including the date of an inspection under Texas Labor Code §51.016.(e) The Agency has jurisdiction over violations that occurred during the two-year period preceding, up to, and including the date of an inspection under Texas Labor Code §51.021.</content><note type="source"><p>Source Note: The provisions of this §817.34 adopted to be effective December 30, 2024, 49 TexReg 10662.</p></note></section><section identifier="/us/state/tx/tac/t40/p20/c817/scD/s817.35"><num value="817.35">§817.35</num><heading>Inspection; Collection of Information; Hinderance</heading><content>(a) The Agency has authority to inspect, request proof or records, and collect information under Texas Labor Code §51.016 and §51.021.(b) Per §51.016(h), the Agency has good reason to believe that an individual younger than 21 years of age is employed, has been employed, or has entered into a contract for the performance of work or the provision of service with a sexually oriented business based upon complaints, observations, or information obtained from law enforcement or the attorney general.(c) Per §51.021, during working hours, the Agency, or its designee, may inspect a place where there is good reason to believe that a child is employed or has been employed within the last two years. The Agency may consider location, historical data, industry characteristics, complaints, trends, or observations when determining whether good reason to believe a child is or has been employed exists.(d) Per §51.021, during working hours, the Agency, or its designee, may collect information concerning the employment of a child who works, or within the last two years has worked, at a place inspected under Texas Labor Code §51.021(a)(1). The Agency may require the person to produce any records necessary to properly administer Texas Labor Code, Chapter 51, or this chapter.(e) A person commits a violation under §51.021(b) if the person resists, delays, or obstructs the Agency's inspection or collection of information under this section, which includes, but is not limited to, preventing access to a place, failing to timely provide to the Agency requested information, or destroying records to obscure a violation.</content><note type="source"><p>Source Note: The provisions of this §817.35 adopted to be effective December 30, 2024, 49 TexReg 10662.</p></note></section><section identifier="/us/state/tx/tac/t40/p20/c817/scD/s817.36"><num value="817.36">§817.36</num><heading>Administrative Penalties</heading><content>(a) The Commission shall adopt a penalty matrix that will be used to determine the amount of an administrative penalty under Texas Labor Code §51.033.(b) When evaluating "the seriousness of the violation" under Texas Labor Code §51.033, the Commission will consider the level of risk of injury or death to a minor.(c) When evaluating "the history of previous violations" under Texas Labor Code §51.033, the Commission will look at an employer's pattern or practice of violations.</content><note type="source"><p>Source Note: The provisions of this §817.36 adopted to be effective December 30, 2024, 49 TexReg 10662.</p></note></section></subchapter></chapter><chapter identifier="/us/state/tx/tac/t40/p20/c819"><num value="819">CHAPTER 819</num><heading>CIVIL RIGHTS DIVISION</heading><subchapter identifier="/us/state/tx/tac/t40/p20/c819/scA"><num value="A">SUBCHAPTER A</num><heading>GENERAL PROVISIONS</heading><section identifier="/us/state/tx/tac/t40/p20/c819/scA/s819.1"><num value="819.1">§819.1</num><heading>Purpose</heading><content>The purpose of this chapter is to implement the following statutory provisions: Texas Labor Code, Chapter 21 (relating to employment discrimination) and Chapter 301, Subchapter I (relating to the Civil Rights Division); Texas Property Code, Chapter 301, (relating to the Texas Fair Housing Act); and Texas Government Code, Chapter 437, §437.204 and Subchapter I (relating to unlawful termination of state military members ordered to training or duty).</content><note type="source"><p>Source Note: The provisions of this §819.1 adopted to be effective September 27, 2005, 30 TexReg 6065; amended to be effective August 1, 2016, 41 TexReg 5559.</p></note></section><section identifier="/us/state/tx/tac/t40/p20/c819/scA/s819.2"><num value="819.2">§819.2</num><heading>Definitions</heading><content>In addition to the definitions contained in §800.2 of this title, the following words and terms, when used in this chapter, shall have the following meanings, unless the context clearly indicates otherwise.(1) Agency--The unit of state government established under Texas Labor Code, Chapter 301, that is presided over by the Commission.(2) Commission--The body of governance established under Texas Labor Code, Chapter 301.(3) Complainant--A person claiming to be aggrieved by a violation of Texas Labor Code, Chapter 21, or Texas Property Code, Chapter 301, and who files a complaint under one of these chapters.(4) CRD--Texas Workforce Commission Civil Rights Division.(5) CRD director--The director, or the director's authorized designee, of the Texas Workforce Commission Civil Rights Division, as established under Texas Labor Code §301.009(a). The CRD director is the authorized designee of the Agency's executive director for purposes of enforcing the statutes referenced in §819.1 of this subchapter.(6) Fair Employment Practices Agency--A state or local government agency designated by the U.S. Equal Employment Opportunity Commission (EEOC) to investigate perfected employment discrimination complaints in the state or local government agency's jurisdiction.(7) Fair Housing Assistance Program Agency--A state or local government agency designated by the U.S. Department of Housing and Urban Development (HUD) to investigate Fair Housing Act complaints in the state or local government agency's jurisdiction.(8) Party--A person who, having a justiciable interest in a matter before CRD, is admitted to full participation in a proceeding concerning that matter.(9) Person--One or more individuals or an association, corporation, joint stock company, labor organization, legal representative, mutual company, partnership, receiver, trust, trustee, trustee in bankruptcy, unincorporated organization, the state, or a political subdivision or agency of the state.(10) Respondent--A person against whom a complaint has been filed in accordance with Texas Labor Code, Chapter 21, or Texas Property Code, Chapter 301.</content><note type="source"><p>Source Note: The provisions of this §819.2 adopted to be effective September 27, 2005, 30 TexReg 6065; amended to be effective June 16, 2014, 39 TexReg 4659; amended to be effective August 1, 2016, 41 TexReg 5559.</p></note></section><section identifier="/us/state/tx/tac/t40/p20/c819/scA/s819.3"><num value="819.3">§819.3</num><heading>Roles and Responsibilities of the Texas Workforce Commission and CRD</heading><content>(a) Responsibilities of the Agency:(1) Establish policies for CRD;(2) Appoint CRD director by and through the Agency's executive director;(3) Supervise CRD director by and through the Agency's executive director in administering the activities of CRD;(4) Serve as the state Fair Employment Practices Agency (FEPA), which is authorized, with respect to unlawful employment practices, to:(A) seek relief;(B) grant relief; and(C) institute civil proceedings; and(5) Serve as the state Fair Housing Assistance Program (FHAP), which is authorized, with respect to unlawful housing practices, to:(A) seek relief;(B) grant relief; and(C) institute civil proceedings.(b) Responsibilities of CRD:(1) Administer Texas Labor Code, Chapter 21; Texas Property Code, Chapter 301; and Texas Government Code §437.204 and Subchapter I; and(2) Collect, analyze, and report statewide information regarding employment and housing discrimination complaints filed with CRD, EEOC, HUD, local commissions, and municipalities in Texas to be included in CRD's annual report to the Governor and the Texas legislature.</content><note type="source"><p>Source Note: The provisions of this §819.3 adopted to be effective September 27, 2005, 30 TexReg 6065; amended to be effective June 16, 2014, 39 TexReg 4659; amended to be effective August 1, 2016, 41 TexReg 5559.</p></note></section></subchapter><subchapter identifier="/us/state/tx/tac/t40/p20/c819/scB"><num value="B">SUBCHAPTER B</num><heading>EQUAL EMPLOYMENT OPPORTUNITY PROVISIONS</heading><section identifier="/us/state/tx/tac/t40/p20/c819/scB/s819.10"><num value="819.10">§819.10</num><heading>Purpose</heading><content>The purpose of Subchapters B - F of this chapter is to set forth the procedures for CRD to execute its responsibilities in the administration and enforcement of Texas Labor Code, Chapter 21. Texas provides, within constitutional limits, equal employment opportunities and provides rights and remedies substantially equivalent to those granted under federal law. No person shall be subject to discriminatory employment practices based on race, color, disability, religion, sex, national origin, or age.</content><note type="source"><p>Source Note: The provisions of this §819.10 adopted to be effective September 27, 2005, 30 TexReg 6065.</p></note></section><section identifier="/us/state/tx/tac/t40/p20/c819/scB/s819.11"><num value="819.11">§819.11</num><heading>Definitions</heading><content>The following words and terms, when used in Subchapter B, Equal Employment Opportunity Provisions; Subchapter C, Equal Employment Opportunity Reports, Training, and Reviews; Subchapter D, Equal Employment Opportunity Complaints and Appeals Process; Subchapter E, Equal Employment Opportunity Deferrals; and Subchapter F, Equal Employment Opportunity Records and Recordkeeping shall have the following meanings, unless the context clearly indicates otherwise.(1) Bona fide occupational qualification--A qualification:(A) that is reasonably related to the satisfactory performance of the duties of a job; and(B) for which there is a factual basis for believing that no members of the excluded group would be able to satisfactorily perform the duties of the job with safety and efficiency.(2) Civil Rights Act--The Civil Rights Act of 1964, as amended by the Equal Employment Opportunity Act of 1972 and the Civil Rights Act of 1991; the Age Discrimination in Employment Act of 1976, as amended; the Rehabilitation Act of 1973, as amended; the Americans with Disabilities Act of 1990, as amended; and Texas Labor Code, Chapter 21, regarding Employment Discrimination.(3) Complaint--A written statement made under oath stating that an unlawful employment practice has been committed, setting forth the facts on which the complaint is based, and received within 180 days or, for a complaint alleging sexual harassment, within 300 days of the alleged unlawful employment practice.(4) Conciliation--The settlement of a dispute by mutual written agreement in order to avoid litigation where a determination has been made that there is reasonable cause to believe an unlawful employment practice has occurred.(5) Disability--A mental or physical impairment that substantially limits at least one major life activity of an individual, a record of such mental or physical impairment, or being regarded as having such an impairment as set forth in §3(2) of the Americans with Disabilities Act of 1990, as amended, and Texas Labor Code, §21.002(6).(6) Employer--A person who is engaged in an industry affecting commerce and who has 15 or more employees for each working day in each of 20 or more calendar weeks in the current or preceding calendar year and any agent of that person. The term includes an individual elected to public office in Texas or a political subdivision of Texas, or a political subdivision and any state agency or instrumentality, including public institutions of higher education, regardless of the number of individuals employed. The term excludes a franchisor from being considered an employer of a franchisee or a franchisee's employees. The term also exempts the Texas Military Forces from being an employer, as claims of discrimination against the Texas Military Forces by service members on state active duty shall be processed in accordance with military regulations and procedures as authorized by Texas Government Code, §437.212. Exclusively regarding allegations of sexual harassment, the term "Employer" includes a person who employs one or more employees or acts directly in the interests of an employer in relation to an employee.(7) Local commission--Created by one or more political subdivisions acting jointly, pursuant to Texas Labor Code, §21.152, and recognized as a Fair Employment Practices Agency by EEOC pursuant to Title VII of the Civil Rights Act of 1964, §706, as amended by the Equal Employment Opportunity Act of 1972, the Civil Rights Act of 1991, and the Americans With Disabilities Act of 1990, as amended.(8) Mediation--An alternative dispute resolution process to resolve a dispute by mutual written agreement among the complainant, respondent, and CRD.(9) Perfected complaint--An employment discrimination complaint that CRD has determined meets all of the requirements of Texas Labor Code, Chapter 21, and for which CRD will initiate an investigation.(10) Sexual Harassment--An unwelcome sexual advance, a request for a sexual favor, or any other verbal or physical conduct of a sexual nature if:(A) submission to the advance, request, or conduct is made a term or condition of an individual's employment either explicitly or implicitly;(B) submission to or rejection of the advance, request, or conduct by an individual is used as the basis for a decision affecting the individual's employment;(C) the advance, request, or conduct has the purpose or effect of unreasonably interfering with an individual's work performance; or(D) the advance, request, or conduct has the purpose or effect of creating an intimidating, hostile, or offensive working environment.</content><note type="source"><p>Source Note: The provisions of this §819.11 adopted to be effective September 27, 2005, 30 TexReg 6065; amended to be effective June 16, 2014, 39 TexReg 4659; amended to be effective August 1, 2016, 41 TexReg 5559; amended to be effective December 5, 2022, 47 TexReg 8051.</p></note></section><section identifier="/us/state/tx/tac/t40/p20/c819/scB/s819.12"><num value="819.12">§819.12</num><heading>Unlawful Employment Practices</heading><content>(a) Discrimination by Employer. An employer commits an unlawful employment practice if based on race, color, disability, religion, sex, national origin, or age, the employer:(1) fails or refuses to hire an individual, discharges an individual, or discriminates in any other manner against an individual in connection with compensation or the terms, conditions, or privileges of employment; or(2) limits, segregates, or classifies an employee or applicant for employment in a manner that deprives or tends to deprive an individual of an employment opportunity or adversely affects in any other manner the status of an employee.(b) Discrimination by Employment Agency. An employment agency commits an unlawful employment practice if based on race, color, disability, religion, sex, national origin, or age, it:(1) fails or refuses to refer for employment or discriminates in any other manner against an individual; or(2) classifies or refers an individual for employment on that basis.(c) Discrimination by Labor Organization. A labor organization commits an unlawful employment practice if based on race, color, disability, religion, sex, national origin, or age, it:(1) excludes or expels from membership or discriminates in any other manner against an individual; or(2) limits, segregates, or classifies a member or an applicant for membership, or classifies or fails or refuses to refer for employment an individual in a manner that:(A) deprives or tends to deprive an individual of any employment opportunity;(B) limits an employment opportunity or adversely affects in any other manner the status of an employee or of an applicant for employment; or(C) causes or attempts to cause an employer to violate this subchapter.(d) Admission or Participation in Training Program. An employer, labor organization, or joint labor-management committee controlling an apprenticeship, on-the-job training, or other training or retraining program commits an unlawful employment practice if based on race, color, disability, religion, sex, national origin, or age, it discriminates against an individual in admission to or participation in the program, unless a training or retraining opportunity or program is provided under an affirmative action plan approved by federal or state law, rule, or court order. The prohibition against discrimination based on age applies only to individuals who are at least 40 years of age.(e) Retaliation. An employer, employment agency, or labor organization commits an unlawful employment practice based on race, color, disability, religion, sex, national origin, or age if the employer, employment agency, or labor organization retaliates or discriminates against an individual who:(1) opposes a discriminatory practice;(2) makes or files a charge;(3) files a complaint; or(4) testifies, assists, or participates in any manner in an investigation, proceeding, or hearing.(f) Aiding or Abetting Discrimination. An employer, employment agency, or labor organization commits an unlawful employment practice if it aids, abets, incites, or coerces an individual to engage in an unlawful discriminatory practice based on race, color, disability, religion, sex, national origin, or age.(g) Interference with the Agency or CRD. An employer, employment agency, or labor organization commits an unlawful employment practice if it willfully interferes with the performance of a duty or the exercise of a power by CRD or by the Agency in relation to CRD.(h) Prevention of Compliance. An employer, employment agency, or labor organization commits an unlawful employment practice if it willfully obstructs or prevents an individual from complying with Texas Labor Code, Chapter 21, or a rule adopted or order issued under Texas Labor Code, Chapter 21.(i) Discriminatory Notice or Advertisement. An employer, employment agency, labor organization, or joint labor-management committee controlling an apprenticeship, on-the-job training, or other training or retraining program commits an unlawful employment practice if it prints or publishes or causes to be printed or published a notice or advertisement relating to employment that:(1) indicates a preference, limitation, specification, or discrimination based on race, color, disability, religion, sex, national origin, or age; and(2) concerns an employee's status, employment, or admission to or membership or participation in a labor organization or training or retraining program.(j) Bona Fide Occupational Qualification. A bona fide occupational qualification is an affirmative defense to discrimination.(k) Sexual Harassment. An employer commits an unlawful employment practice if sexual harassment of an employee occurs and the employer or the employer's agents or supervisors:(1) knows or should have known that the conduct constituting sexual harassment was occurring; and(2) fails to take immediate and appropriate corrective action.</content><note type="source"><p>Source Note: The provisions of this §819.12 adopted to be effective September 27, 2005, 30 TexReg 6065; amended to be effective August 1, 2016, 41 TexReg 5559; amended to be effective July 6, 2020, 45 TexReg 4530; amended to be effective December 5, 2022, 47 TexReg 8051.</p></note></section></subchapter><subchapter identifier="/us/state/tx/tac/t40/p20/c819/scC"><num value="C">SUBCHAPTER C</num><heading>EQUAL EMPLOYMENT OPPORTUNITY REPORTS, TRAINING, AND REVIEWS</heading><section identifier="/us/state/tx/tac/t40/p20/c819/scC/s819.21"><num value="819.21">§819.21</num><heading>Civilian Workforce Composition Report</heading><content>CRD shall prepare a civilian workforce composition report pursuant to Texas Labor Code §21.0035 using the best available data from all appropriate sources.</content><note type="source"><p>Source Note: The provisions of this §819.21 adopted to be effective September 27, 2005, 30 TexReg 6065.</p></note></section><section identifier="/us/state/tx/tac/t40/p20/c819/scC/s819.23"><num value="819.23">§819.23</num><heading>Review of State Agency Policies and Procedures</heading><content>(a) Except as provided by subsection (b) of this section, CRD shall review the personnel policies and procedures system (PPPS) of each state agency once every six years on a staggered schedule to determine compliance with Texas Labor Code, Chapter 21.(b) CRD may conduct a review of the PPPS of a state agency more frequently than required by subsection (a) when such review is indicated by a risk assessment based on the following criteria:(1) Data on complaints against a state agency;(2) Previous review findings;(3) Changes in leadership of a state agency;(4) The date of the last on-site review;(5) Compliance by the state agency with submission of a self-assessment to CRD; and(6) Any other related information collected and maintained by the Agency.(c) CRD shall notify a state agency of its review of the agency's personnel policies and procedures by mail, or electronic communication upon agreement of the agency, at the beginning of the fiscal year in which CRD is to conduct the review. The review of each state agency shall be completed and recommendations issued on or before the one-year anniversary date on which CRD issued its notification letter to the agency head.</content><note type="source"><p>Source Note: The provisions of this §819.23 adopted to be effective September 27, 2005, 30 TexReg 6065; amended to be effective June 16, 2014, 39 TexReg 4659; amended to be effective August 1, 2016, 41 TexReg 5559.</p></note></section><section identifier="/us/state/tx/tac/t40/p20/c819/scC/s819.24"><num value="819.24">§819.24</num><heading>Standard Employment Discrimination Training</heading><content>(a) Each state agency shall provide its employees with standard employment discrimination training no later than the 30th day after the date the employee is hired by the agency, with supplemental training every two years thereafter. The Agency shall develop or approve the materials for use by state agencies in providing standard employment discrimination training.(b) The minimum standards for the content of standard employment discrimination training shall include, but not be limited to, requiring participants to:(1) identify an unlawful employment practice according to the Civil Rights Act;(2) apply knowledge of the applicable laws by correctly identifying whether individual case studies would be considered violations;(3) identify the protected classes under federal and state law;(4) list a complainant's rights and remedies;(5) identify the agency personnel to whom a complaint shall be addressed; and(6) describe the general stages involved in processing a complaint.</content><note type="source"><p>Source Note: The provisions of this §819.24 adopted to be effective September 27, 2005, 30 TexReg 6065; amended to be effective June 16, 2014, 39 TexReg 4659; amended to be effective August 1, 2016, 41 TexReg 5559.</p></note></section><section identifier="/us/state/tx/tac/t40/p20/c819/scC/s819.25"><num value="819.25">§819.25</num><heading>Compliance Employment Discrimination Training</heading><content>(a) For purposes of this section, the term "complaint with merit" shall mean a complaint that is resolved, either by a cause finding or through withdrawal of the complaint with a remedy favorable to the complainant, such as a negotiated settlement, withdrawal with benefits, or conciliation.(b) State agencies receiving three or more complaints with merit within a fiscal year shall provide compliance employment discrimination training. The training may be provided by the Agency or by another entity or person approved by the Agency.(c) CRD's minimum standards for the content of compliance employment discrimination training shall include, but not be limited to, requiring participants to:(1) distinguish between disparate treatment and disparate impact;(2) identify the elements of a complaint involving disparate treatment and disparate impact;(3) explain the defenses available to an employer resulting from both statute and case law involving disparate treatment and disparate impact;(4) explain the burden of proof requirements for disparate treatment and disparate impact;(5) identify criteria for accurately measuring compliance with applicable laws;(6) define the different types of employment discrimination;(7) identify the appropriate action to be taken in a situation involving a potential case of employment discrimination; and(8) describe strategies for prevention of employment discrimination.</content><note type="source"><p>Source Note: The provisions of this §819.25 adopted to be effective September 27, 2005, 30 TexReg 6065; amended to be effective August 1, 2016, 41 TexReg 5559.</p></note></section><section identifier="/us/state/tx/tac/t40/p20/c819/scC/s819.26"><num value="819.26">§819.26</num><heading>Standard and Compliance Employment Discrimination Training Delivery</heading><content>(a) The minimum standards for the delivery of standard and compliance employment discrimination training shall include, but not be limited to:(1) a determination of the effectiveness of the training;(2) the use of training that takes advantage of technological advances, such as videos, CDs, and Web-based delivery systems; and(3) the documentation of training that shall be provided to CRD, including the date the training was provided, description of the training program used, names of participants, and the agency contact person. Web-based training records may be retained electronically.(b) In addition to the minimum standards set forth in subsection (a) of this section, the delivery of compliance employment discrimination training shall be highly interactive to ensure the engagement of the trainee.</content><note type="source"><p>Source Note: The provisions of this §819.26 adopted to be effective September 27, 2005, 30 TexReg 6065.</p></note></section></subchapter><subchapter identifier="/us/state/tx/tac/t40/p20/c819/scD"><num value="D">SUBCHAPTER D</num><heading>EQUAL EMPLOYMENT OPPORTUNITY COMPLAINTS AND APPEALS PROCESS</heading><section identifier="/us/state/tx/tac/t40/p20/c819/scD/s819.41"><num value="819.41">§819.41</num><heading>Filing a Complaint</heading><content>(a) A person may telephone, write, visit, e-mail, fax, or otherwise contact CRD or a local commission office recognized by EEOC as a Fair Employment Practices Agency to obtain information on filing a complaint with CRD.(b) At the complainant's request, CRD:(1) shall confer with the complainant about the facts and circumstances that may constitute the alleged unlawful employment practice;(2) shall assist the complainant in perfecting the complaint if the facts and circumstances appear to constitute an alleged unlawful employment practice; or(3) may advise the complainant if the facts and circumstances presented to CRD do not appear to constitute an unlawful employment practice.(c) The complaint shall be filed in writing and either signed under oath or subscribed by the person making the declaration as true under penalty of perjury and in substantially the form prescribed by Texas Civil Practice and Remedies Code, Chapter 132, or its successor statute. It may be filed with CRD by mail, electronic communication, fax, or in person with:(1) the CRD office on a CRD-provided form;(2) an EEOC office; or(3) a local commission office recognized by EEOC as a Fair Employment Practices Agency.(d) The complaint shall set forth the following information:(1) Harm experienced by the complainant as a result of the alleged unlawful employment practice;(2) Explanation, if any, given by the employer to the complainant for the alleged unlawful employment practice;(3) A declaration of unlawful discrimination under federal or state law;(4) Facts upon which the complaint is based, including the date, place, and circumstances of the alleged unlawful employment practice; and(5) Sufficient information to enable CRD to identify the employer, e.g., employer ID, business address, and business phone.(e) A complaint shall be filed within 180 days or, for a complaint alleging sexual harassment, within 300 days, after the date on which the alleged unlawful employment practice occurred.(f) A complaint may be withdrawn by a complainant only with the consent of the CRD director.(g) A perfected complaint may be amended by the complainant to cure technical defects or omissions, or to clarify and amplify allegations made therein. Such amendment or amendments alleging additional acts that constitute unlawful employment practices related to or growing out of the subject matter of the original complaint shall relate back to the date the complaint was first filed. CRD shall provide a copy of the perfected complaint to the respondent. An amended perfected complaint shall be subject to the procedures set forth in applicable law.(h) A respondent shall be mailed a copy of the perfected complaint within 10 days after CRD receives the perfected complaint. If CRD receives a complaint that is not perfected within 180 days or, for a complaint alleging sexual harassment, within 300 days, of the alleged unlawful employment practice, CRD shall notify the respondent that a complaint has been filed and the process of perfecting the complaint is in progress.(i) The complainant and respondent shall be advised upon request by CRD of the status of their perfected complaint, unless doing so would jeopardize an undercover investigation by another state, federal, or local government.</content><note type="source"><p>Source Note: The provisions of this §819.41 adopted to be effective September 27, 2005, 30 TexReg 6065; amended to be effective June 16, 2014, 39 TexReg 4659; amended to be effective December 5, 2022, 47 TexReg 8051.</p></note></section><section identifier="/us/state/tx/tac/t40/p20/c819/scD/s819.42"><num value="819.42">§819.42</num><heading>Legal Representation</heading><content>The complainant and respondent may be represented by an attorney or designated agent.</content><note type="source"><p>Source Note: The provisions of this §819.42 adopted to be effective September 27, 2005, 30 TexReg 6065.</p></note></section><section identifier="/us/state/tx/tac/t40/p20/c819/scD/s819.43"><num value="819.43">§819.43</num><heading>Investigation of a Perfected Complaint</heading><content>(a) The CRD director shall determine the nature and scope of the investigation within the context of the allegations set forth in the perfected complaint.(b) CRD may, as part of a perfected complaint investigation, require a fact-finding conference with the complainant and the respondent prior to a determination on a perfected complaint. A fact-finding conference primarily is an investigative forum intended to define the issues, determine which elements are undisputed, and solicit information regarding the allegations.(c) At all reasonable times in the perfected complaint investigation, the CRD director shall have access to:(1) necessary witnesses for examination under oath or affirmation; and(2) records, documents, and other information relevant to the investigation of alleged violations of Texas Labor Code, Chapter 21, for inspection and copying.(d) As part of the perfected complaint investigation, CRD may request information relevant to the alleged violations of Texas Labor Code, Chapter 21. In obtaining this information, CRD may use, but is not limited to using, any of the following:(1) Oral and video interviews and depositions;(2) Written interrogatories;(3) Production of documents and records;(4) Requests for admissions;(5) On-site inspection of respondent's facilities;(6) Written statements or affidavits;(7) A written statement of position or information provided by the complainant or the respondent that is either under oath or subscribed in conformity with this section regarding the allegations in the complaint; or(8) Other forms of discovery authorized by the Administrative Procedure Act, Texas Government Code §§2001.081 - 2001.103, or the Texas Rules of Civil Procedure.(e) CRD may establish time requirements regarding responses to requests for information relevant to an investigation of alleged violations of Texas Labor Code, Chapter 21. The CRD director may extend such time requirements for good cause shown.</content><note type="source"><p>Source Note: The provisions of this §819.43 adopted to be effective September 27, 2005, 30 TexReg 6065; amended to be effective June 16, 2014, 39 TexReg 4659.</p></note></section><section identifier="/us/state/tx/tac/t40/p20/c819/scD/s819.44"><num value="819.44">§819.44</num><heading>Mediation</heading><content>(a) Between filing of a complaint and prior to the cause determination, CRD may invite both the complainant and the respondent to attempt to resolve their dispute through mediation. Either party to the perfected complaint may also request mediation to resolve the complaint during this period.(b) For mediation to occur, both the complainant and the respondent shall agree to the mediation. If there is no agreement, CRD shall continue with the investigation of the perfected complaint.(c) If the complainant and respondent reach a settlement and execute a written agreement disposing of the perfected complaint, the agreement is binding and enforceable in the same manner as any other written contract.(d) If mediation between the complainant and the respondent does not result in an agreement, CRD shall continue to investigate the perfected complaint.</content><note type="source"><p>Source Note: The provisions of this §819.44 adopted to be effective September 27, 2005, 30 TexReg 6065.</p></note></section><section identifier="/us/state/tx/tac/t40/p20/c819/scD/s819.45"><num value="819.45">§819.45</num><heading>Subpoena</heading><content>(a) The CRD director shall have the authority to sign and issue a subpoena to compel the attendance of necessary witnesses for examination or testimony under oath or affirmation, and to compel the production of records, documents, and other evidence relevant to the investigation of alleged violations of Texas Labor Code, Chapter 21, for inspection and copying. Neither the complainant nor the respondent shall have the right to demand that a subpoena be issued.(b) A person served with a subpoena issued by the CRD director who does not intend to comply may petition CRD in writing to revoke or modify the subpoena within five working days after receipt of the subpoena. Such petition shall identify separately each portion of the subpoena with which the petitioner does not intend to comply, and for each portion shall state the grounds upon which the petitioner relies. A copy of the subpoena shall be attached to the petition. The CRD director shall review the petition and make a final determination on revoking or modifying the subpoena. CRD shall provide a copy of the final determination on the petition to the petitioner by mail, or electronic communication upon agreement of the petitioner.(c) If a person fails to comply with a subpoena, CRD may apply to the district court of the county in which the person is found, resides, or transacts business for an order directing compliance pursuant to Texas Labor Code §21.306(b).</content><note type="source"><p>Source Note: The provisions of this §819.45 adopted to be effective September 27, 2005, 30 TexReg 6065; amended to be effective June 16, 2014, 39 TexReg 4659.</p></note></section><section identifier="/us/state/tx/tac/t40/p20/c819/scD/s819.46"><num value="819.46">§819.46</num><heading>Dismissal of Complaint</heading><content>(a) The CRD director may dismiss a complaint if:(1) it is not filed timely;(2) it fails to state a claim under Texas Labor Code, Chapter 21;(3) a complainant fails to perfect a complaint within 10 days of the receipt of the complaint; or(4) a complainant fails to cooperate, fails or refuses to appear or to be available for interviews or conferences, or fails or refuses to provide requested information. Prior to dismissing the complaint, the complainant shall be notified and given a reasonable time to respond.(b) CRD shall notify the complainant as required by law, by certified mail of its dismissal of a complaint. The respondent and any federal enforcement agency shall be notified of the dismissal of a complaint.(c) CRD shall notify the complainant, by mail, of the complainant's right to file a civil action against the respondent named in the perfected complaint pursuant to Texas Labor Code §21.208 and §21.252, and §819.50 of this subchapter.</content><note type="source"><p>Source Note: The provisions of this §819.46 adopted to be effective September 27, 2005, 30 TexReg 6065; amended to be effective June 16, 2014, 39 TexReg 4659; amended to be effective August 1, 2016, 41 TexReg 5559.</p></note></section><section identifier="/us/state/tx/tac/t40/p20/c819/scD/s819.47"><num value="819.47">§819.47</num><heading>Cause Determination</heading><content>(a) The CRD director shall review the investigation report and record of evidence to determine if there is reasonable cause to believe the respondent has engaged in an unlawful employment practice.(b) If after the review, the CRD director determines that reasonable cause exists, the CRD director shall confer with the Commission members. If at least two of the three Commission members concur with the CRD director's determination that the respondent has engaged in an unlawful employment practice, the CRD director shall issue a letter of cause determination. The cause determination letter shall be provided by mail, or electronic communication upon agreement of the person or entity, to the complainant, respondent, and any agency as required by law and shall contain the CRD director's finding that the evidence supports the perfected complaint and include an invitation to participate in conciliation.</content><note type="source"><p>Source Note: The provisions of this §819.47 adopted to be effective September 27, 2005, 30 TexReg 6065; amended to be effective June 16, 2014, 39 TexReg 4659; amended to be effective August 1, 2016, 41 TexReg 5559.</p></note></section><section identifier="/us/state/tx/tac/t40/p20/c819/scD/s819.48"><num value="819.48">§819.48</num><heading>Conciliation</heading><content>(a) When a letter of cause determination has been issued, CRD shall attempt to eliminate such unlawful employment practice by conciliation, and to secure a just resolution through a conciliation agreement signed by the complainant, respondent, and the CRD director.(b) CRD shall obtain proof of the respondent's compliance with a conciliation agreement before the case is closed.(c) CRD shall provide notification of an unsuccessful conciliation agreement to:(1) the complainant by certified mail; and(2) the respondent by mail.</content><note type="source"><p>Source Note: The provisions of this §819.48 adopted to be effective September 27, 2005, 30 TexReg 6065; amended to be effective June 16, 2014, 39 TexReg 4659.</p></note></section><section identifier="/us/state/tx/tac/t40/p20/c819/scD/s819.49"><num value="819.49">§819.49</num><heading>No Cause Determination</heading><content>A completed investigation may result in a determination that there is no reasonable cause to believe that the respondent has engaged in an unlawful employment practice as alleged in the perfected complaint. If after the review, the CRD director determines that no reasonable cause exists, the CRD director shall issue a letter of no cause determination. The no cause determination letter shall be sent by mail, or electronic communication upon agreement of the person or entity, to the complainant, respondent, and any agency as required by law and shall contain the CRD director's finding that the evidence does not support the perfected complaint.</content><note type="source"><p>Source Note: The provisions of this §819.49 adopted to be effective September 27, 2005, 30 TexReg 6065; amended to be effective June 16, 2014, 39 TexReg 4659.</p></note></section><section identifier="/us/state/tx/tac/t40/p20/c819/scD/s819.50"><num value="819.50">§819.50</num><heading>Right to File a Civil Action</heading><content>(a) CRD shall inform the complainant by certified mail of:(1) the dismissal of a complaint filed with CRD; or(2) the failure to resolve a complaint in writing that was filed with CRD 180 days previously. CRD shall inform the complainant of the complainant's right to request from CRD a notice of right to file a civil action against the respondent. Upon receipt of a written request, CRD may issue a notice of right to file a civil action.(b) Before the expiration of 180 days after filing the complaint and upon a written request from a complainant, CRD shall issue a notice of right to file a civil action if:(1) written confirmation by a physician licensed to practice medicine in Texas states that the complainant has a life threatening illness; or(2) certification by the CRD director states that the administrative processing of the perfected complaint cannot be completed before the expiration of the 180th day after the complaint was filed. The certification shall take into account the exigent circumstances of the complainant.(c) CRD shall issue notice under subsection (b) of this section by certified mail no later than the fifth business day after receipt of the complainant's request.(d) The complainant's written request shall include the respondent's name, CRD complaint number, and EEOC complaint number if the complaint has been deferred by EEOC.</content><note type="source"><p>Source Note: The provisions of this §819.50 adopted to be effective September 27, 2005, 30 TexReg 6065; amended to be effective June 16, 2014, 39 TexReg 4659; amended to be effective August 1, 2016, 41 TexReg 5559.</p></note></section><section identifier="/us/state/tx/tac/t40/p20/c819/scD/s819.51"><num value="819.51">§819.51</num><heading>Failure to Issue Notice of Right to File a Civil Action</heading><content>CRD's failure to issue a notice of right to file a civil action after 180 days from the date the complaint is received by CRD does not affect the complainant's right to bring a civil action against the respondent under Texas Labor Code §21.252(d).</content><note type="source"><p>Source Note: The provisions of this §819.51 adopted to be effective September 27, 2005, 30 TexReg 6065.</p></note></section><section identifier="/us/state/tx/tac/t40/p20/c819/scD/s819.52"><num value="819.52">§819.52</num><heading>Judicial Enforcement</heading><content>(a) On a majority vote of the Commission, CRD may bring a civil action against a respondent named in a perfected complaint pursuant to the requirements of Texas Labor Code §21.251.(b) Upon a determination by the Commission to bring a civil action, CRD shall notify the complainant by certified mail.(c) On a majority vote of the Commission, CRD may pursue intervention in a civil action pursuant to the requirements of Texas Labor Code §21.255.</content><note type="source"><p>Source Note: The provisions of this §819.52 adopted to be effective September 27, 2005, 30 TexReg 6065; amended to be effective August 1, 2016, 41 TexReg 5559.</p></note></section></subchapter><subchapter identifier="/us/state/tx/tac/t40/p20/c819/scE"><num value="E">SUBCHAPTER E</num><heading>EQUAL EMPLOYMENT OPPORTUNITY DEFERRALS</heading><section identifier="/us/state/tx/tac/t40/p20/c819/scE/s819.71"><num value="819.71">§819.71</num><heading>Equal Employment Opportunity Deferrals among Federal, State, and Local Agencies</heading><content>For the purpose of satisfying the filing requirements of Texas Labor Code §21.201, the following shall apply:(1) For a complaint filed with CRD over which EEOC has deferred jurisdiction, timeliness of the complaint shall be determined by the date the complaint is received by CRD.(2) For a complaint filed with EEOC and deferred to CRD, timeliness of the complaint shall be determined by the date on which the complaint is received by EEOC.(3) For a complaint filed with a local commission and deferred to CRD, timeliness of the complaint shall be determined by the date on which the complaint is received by the local commission.</content><note type="source"><p>Source Note: The provisions of this §819.71 adopted to be effective September 27, 2005, 30 TexReg 6065.</p></note></section><section identifier="/us/state/tx/tac/t40/p20/c819/scE/s819.72"><num value="819.72">§819.72</num><heading>Requirements for a Local Commission</heading><content>To be a local commission eligible to receive deferrals from CRD, pursuant to Texas Labor Code §§21.151 - 21.156, and this chapter, the local commission must be currently certified by the EEOC as a Fair Employment Practices Agency (FEPA).</content><note type="source"><p>Source Note: The provisions of this §819.72 adopted to be effective September 27, 2005, 30 TexReg 6065; amended to be effective August 1, 2016, 41 TexReg 5559.</p></note></section><section identifier="/us/state/tx/tac/t40/p20/c819/scE/s819.73"><num value="819.73">§819.73</num><heading>Deferral to Local Commission</heading><content>(a) Texas Labor Code, §21.155 grants to a local commission the exclusive right to take appropriate action within the scope of its power and jurisdiction to process a complaint deferred by CRD pursuant to the requirements of Texas Labor Code, §21.155, and this chapter.(b) CRD shall not assume jurisdiction over a complaint deferred to a local commission, pursuant to Texas Labor Code, §21.155, except:(1) where the local commission defers a complaint under its jurisdiction to CRD;(2) where the complaint is received by CRD within 180 days of the alleged violation or, for a complaint alleging sexual harassment, within 300 days of the alleged unlawful employment practice, but beyond the period of limitation of the appropriate local commission; and(3) where the local commission has not acted on the complaint pursuant to the requirements of Texas Labor Code, §21.155(c), and this chapter.</content><note type="source"><p>Source Note: The provisions of this §819.73 adopted to be effective September 27, 2005, 30 TexReg 6065; amended to be effective June 16, 2014, 39 TexReg 4659; amended to be effective December 5, 2022, 47 TexReg 8051.</p></note></section><section identifier="/us/state/tx/tac/t40/p20/c819/scE/s819.74"><num value="819.74">§819.74</num><heading>Deferral Procedures</heading><content>(a) CRD shall defer a complaint subject to Texas Labor Code §21.155(a) to a local commission within five working days of the date the complaint is received.(b) A local commission may waive its right to the period of exclusive processing of a complaint with respect to any complaint or category of complaint by deferring a matter under its jurisdiction to CRD, pursuant to Texas Labor Code §21.156.(c) All complaints received by CRD subject to deferral to a local commission shall be dated and time stamped upon receipt.(d) CRD shall transmit a copy of a complaint it receives that is subject to deferral to a local commission by certified mail to the appropriate local commission. Proceedings by the local commission are deemed to have commenced on the date such complaint is mailed.(e) A local commission shall transmit to CRD by certified mail, a copy of a complaint deferred to it by EEOC and over which CRD has deferral jurisdiction.(f) CRD shall notify the complainant and respondent in writing that it has forwarded the complaint to the local commission.</content><note type="source"><p>Source Note: The provisions of this §819.74 adopted to be effective September 27, 2005, 30 TexReg 6065.</p></note></section><section identifier="/us/state/tx/tac/t40/p20/c819/scE/s819.75"><num value="819.75">§819.75</num><heading>Final Determination of a Local Commission</heading><content>If a local commission does not intend to act on a complaint deferred by CRD, the local commission shall notify CRD by mail or electronic communication within 60 working days.</content><note type="source"><p>Source Note: The provisions of this §819.75 adopted to be effective June 16, 2014, 39 TexReg 4659.</p></note></section><section identifier="/us/state/tx/tac/t40/p20/c819/scE/s819.76"><num value="819.76">§819.76</num><heading>Workshare Agreements</heading><content>The Agency shall enter into workshare agreements with EEOC and local commissions to ensure an effective and integrated administrative review procedure, share information, and provide technical assistance and training.</content><note type="source"><p>Source Note: The provisions of this §819.76 adopted to be effective September 27, 2005, 30 TexReg 6065.</p></note></section></subchapter><subchapter identifier="/us/state/tx/tac/t40/p20/c819/scF"><num value="F">SUBCHAPTER F</num><heading>EQUAL EMPLOYMENT OPPORTUNITY RECORDS AND RECORDKEEPING</heading><section identifier="/us/state/tx/tac/t40/p20/c819/scF/s819.91"><num value="819.91">§819.91</num><heading>Preservation and Use</heading><content>CRD shall require a person under investigation to make and keep records pursuant to the requirements of Texas Labor Code §§21.301 - 21.303.</content><note type="source"><p>Source Note: The provisions of this §819.91 adopted to be effective September 27, 2005, 30 TexReg 6065.</p></note></section><section identifier="/us/state/tx/tac/t40/p20/c819/scF/s819.92"><num value="819.92">§819.92</num><heading>Access to CRD Records</heading><content>(a) Pursuant to Texas Labor Code §21.304 and §21.305, CRD shall, on written request of a party to a perfected complaint filed under Texas Labor Code §21.201, allow the party access to CRD's records, unless the perfected complaint has been resolved through a voluntary settlement or conciliation agreement:(1) following the final action of CRD; or(2) if a party to the perfected complaint or the party's attorney certifies in writing that a civil action relating to the perfected complaint is pending in federal court alleging a violation of federal law.(b) The information described in Texas Labor Code §21.305(c) is not public information and shall not be disclosed to a party to a complaint filed under Texas Labor Code §21.201.</content><note type="source"><p>Source Note: The provisions of this §819.92 adopted to be effective September 27, 2005, 30 TexReg 6065; amended to be effective February 12, 2007, 32 TexReg 553; amended to be effective December 10, 2012, 37 TexReg 9656.</p></note></section><section identifier="/us/state/tx/tac/t40/p20/c819/scF/s819.93"><num value="819.93">§819.93</num><heading>Disposal of Files and Related Documents</heading><content>Pursuant to a certified records retention schedule, CRD shall retain case files and related documents that have not been forwarded to EEOC for seven years after the administrative review procedures have been completed, except when a civil action has been filed in state court under Texas Labor Code, Chapter 21. When a civil action has been filed in state court, case files and related documents shall be retained until the final disposition of the lawsuit. At the end of the retention period, CRD may dispose of the case files and related documents.</content><note type="source"><p>Source Note: The provisions of this §819.93 adopted to be effective September 27, 2005, 30 TexReg 6065; amended to be effective June 16, 2014, 39 TexReg 4659.</p></note></section></subchapter><subchapter identifier="/us/state/tx/tac/t40/p20/c819/scG"><num value="G">SUBCHAPTER G</num><heading>TEXAS FAIR HOUSING ACT PROVISIONS</heading><section identifier="/us/state/tx/tac/t40/p20/c819/scG/s819.111"><num value="819.111">§819.111</num><heading>Purpose</heading><content>The purpose of Subchapters G - L of this chapter is to establish procedures for CRD to execute its responsibilities in the administration and enforcement of the Texas Fair Housing Act. Texas provides, within constitutional limitations, for fair housing throughout the state and provides rights and remedies substantially equivalent to those granted under federal law. No person shall be subject to discriminatory housing practices based on race, color, disability, religion, sex, national origin, or familial status in the sale, rental, advertising of dwellings, inspection of dwellings, entry into a neighborhood, in the provision of brokerage services, or in the availability of residential real estate-related transactions.</content><note type="source"><p>Source Note: The provisions of this §819.111 adopted to be effective September 27, 2005, 30 TexReg 6065; amended to be effective June 16, 2014, 39 TexReg 4659.</p></note></section><section identifier="/us/state/tx/tac/t40/p20/c819/scG/s819.112"><num value="819.112">§819.112</num><heading>Definitions</heading><content>The following words and terms, when used in Subchapter G, Texas Fair Housing Act Provisions; Subchapter H, Discriminatory Housing Practices; Subchapter I, Texas Fair Housing Act Complaints and Appeals Process; Subchapter J, Fair Housing Deferral to Municipalities; Subchapter K, Fair Housing Administrative Hearings and Judicial Review; and Subchapter L, Fair Housing Fund, shall have the following meanings, unless the context clearly indicates otherwise.(1) Accessible or readily accessible to and usable by--Means a public or common use area can be approached, entered, and used by individuals with disabilities, as set forth in Texas Property Code §301.025(c)(3). Compliance with the appropriate requirements of the American National Standards Institute (ANSI) for buildings and facilities providing accessibility and usability for persons having physical disabilities, commonly cited as ANSI A117.1, satisfies this requirement.(2) Accessible building entrance--A building entrance that is accessible by individuals with disabilities, as set forth in Texas Property Code §301.025(c). Compliance with the appropriate requirements of ANSI for buildings and facilities providing accessibility and usability for persons having physical disabilities, commonly cited as ANSI A117.1, satisfies this requirement.(3) Accessible route--A route that is accessible by individuals with disabilities, as set forth in Texas Property Code §301.025(c). Compliance with the appropriate requirements of ANSI for buildings and facilities providing accessibility and usability for persons having physical disabilities, commonly cited as ANSI A117.1, satisfies this requirement.(4) Building--A structure, facility, or the portion thereof that contains or serves one or more dwelling units.(5) Common use areas--Rooms, spaces, or elements inside or outside of a building that are made available for the use of residents or the guests of a building. These areas include, but are not limited to, hallways, lounges, lobbies, laundry rooms, refuse rooms, mailrooms, recreational areas, and passageways among and between buildings.(6) Complaint--A written statement made under oath stating that an unlawful housing practice has been committed, setting forth the facts on which the complaint is based, and received within one year of the date the alleged unlawful housing practice occurred or terminated, whichever is later, and for which CRD shall initiate an investigation.(7) Controlled substance--Any drug or other substance or immediate precursor as defined in the Controlled Substances Act, 21 U.S.C. §802 or the Texas Controlled Substances Act, Texas Health and Safety Code Chapter 481.(8) Disability--A mental or physical impairment that substantially limits at least one major life activity, a record of such an impairment, or being regarded as having such an impairment. The term does not include current illegal use of or addiction to any drug or illegal or controlled substance; and reference to "an individual with a disability" or perceived as "disabled" does not apply to an individual based on that individual's sexual orientation or because that individual is a transvestite.(A) Physical or mental impairment includes:(i) any physiological disorder or condition, cosmetic disfigurement, or anatomical loss affecting one or more of the following body systems: neurological, musculoskeletal, special sense organs, respiratory, including speech organs, cardiovascular, reproductive, digestive, genitourinary, hemic and lymphatic, skin, and endocrine; or(ii) any mental or psychological disorder, such as intellectual disability, organic brain syndrome, emotional or mental illness, and specific learning disabilities. The term "physical or mental impairment" includes, but is not limited to, such diseases and conditions as orthopedic, visual, speech and hearing impairments, cerebral palsy, autism, epilepsy, muscular dystrophy, multiple sclerosis, cancer, heart disease, diabetes, human immunodeficiency virus infection, intellectual disability, emotional illness, drug addiction (other than addiction caused by current, illegal use of a controlled substance) and alcoholism.(B) Major life activity means a function such as caring for one's self, performing manual tasks, walking, seeing, hearing, speaking, breathing, learning, and working.(C) A record of having such an impairment means a history of, or misclassification as having, a mental or physical impairment that substantially limits one or more major life activity.(D) Being regarded as having an impairment means having:(i) a physical or mental impairment that does not substantially limit one or more major life activity but that is treated by another person as constituting such a limitation;(ii) a physical or mental impairment that substantially limits one or more major life activity only as a result of the attitudes of others toward such impairment; or(iii) none of the impairments in subparagraph (A) of this paragraph but is treated by another person as having such an impairment.(9) Discriminatory housing practice--An action prohibited by Texas Fair Housing Act, Subchapter B, or conduct that is an offense under Texas Fair Housing Act, Subchapter I.(10) Entrance--Any access point to a building or portion of a building used by residents for the purpose of entering the building.(11) Exterior--All areas of the premises outside of an individual dwelling unit.(12) Ground floor--Within a building, any floor with an entrance on an accessible route. A building may have more than one ground floor.(13) Interior--The spaces, parts, components, or elements of an individual dwelling unit.(14) Modification--Any change to the public or common use areas of a building or any change to a dwelling unit.(15) Premises--The interior or exterior spaces, parts, components, or elements of a building, including individual dwelling units and the public and common use areas of a building.(16) Public use areas--Interior or exterior rooms or spaces of a building that are made available to the general public. Public use may be provided at a building that is privately or publicly owned.(17) Site--A parcel of land bounded by a property line or a designated portion of a public right of way.(18) Texas Fair Housing Act--Texas Property Code, Chapter 301.(19) United States Fair Housing Act--Title VIII of the Civil Rights Act of 1968, as amended by the Fair Housing Amendments Act of 1988.</content><note type="source"><p>Source Note: The provisions of this §819.112 adopted to be effective September 27, 2005, 30 TexReg 6065; amended to be effective June 16, 2014, 39 TexReg 4659; amended to be effective August 1, 2016, 41 TexReg 5559.</p></note></section></subchapter><subchapter identifier="/us/state/tx/tac/t40/p20/c819/scH"><num value="H">SUBCHAPTER H</num><heading>DISCRIMINATORY HOUSING PRACTICES</heading><section identifier="/us/state/tx/tac/t40/p20/c819/scH/s819.121"><num value="819.121">§819.121</num><heading>Discrimination Based on Familial Status</heading><content>It is an unlawful housing practice to discriminate based on familial status. Familial status includes:(1) pregnancy;(2) being domiciled with an individual younger than 18 years of age in regard to whom the person is the parent or legal custodian or has the written permission of the parent or legal custodian for domicile with that person; or(3) being in the process of obtaining legal custody of an individual younger than 18 years of age.</content><note type="source"><p>Source Note: The provisions of this §819.121 adopted to be effective September 27, 2005, 30 TexReg 6065.</p></note></section><section identifier="/us/state/tx/tac/t40/p20/c819/scH/s819.122"><num value="819.122">§819.122</num><heading>Exemptions Based on Familial Status</heading><content>(a) Discrimination prohibitions under the Texas Fair Housing Act based on familial status do not apply to housing provided under any federal or state program that the US Department of Housing and Urban Development (HUD) Secretary has determined is designed and operated specifically to assist elderly persons, as defined in the federal or state program.(b) Discrimination prohibitions under the Texas Fair Housing Act based on familial status do not apply to housing intended for and solely occupied by individuals 62 years of age or older. This exemption shall apply regardless of the fact that:(1) there were individuals residing in such housing on September 13, 1988, who were under 62 years of age, provided that all new occupants are 62 years of age or older;(2) there are unoccupied units, provided that such units are reserved for occupancy for individuals 62 years of age or older; or(3) there are units occupied by employees of the housing (and family members residing in the same unit) who are under 62 years of age provided they perform substantial duties directly related to the management or maintenance of the housing.(c) Discrimination prohibitions under the Texas Fair Housing Act based on familial status do not apply to housing intended and operated for occupancy by individuals 55 years of age or older if:(1) at least 80 percent of the units in the housing facility are occupied by at least one person 55 years of age or older. However:(A) a newly constructed housing facility for first occupancy after March 12, 1989, need not comply with this 80 percent occupancy requirement until 25 percent of the units in the facility are occupied; and(B) a housing facility or community may not evict, refuse to renew leases, or otherwise penalize families with children in order to achieve occupancy of at least 80 percent of the occupied units by at least one person 55 years of age or older;(2) the owner or manager of a housing facility publishes and adheres to policies and procedures that demonstrate an intent by the owner or manager to provide housing for individuals 55 years of age or older. The following factors, among others, are relevant in determining whether the owner or manager of a housing facility has complied with the requirements of this paragraph:(A) The manner in which the housing facility is described to prospective residents;(B) The nature of any advertising designed to attract prospective residents;(C) Age verification procedures;(D) Lease provisions;(E) Written rules and regulations;(F) Actual practices of the housing facility or community; and(G) Public posting in common areas of statements describing the facility or community as housing for individuals 55 years of age or older; and(3) the housing facility satisfies the requirements of this section regardless of the fact that:(A) as of September 13, 1988, under 80 percent of the occupied units in the housing facility were occupied by at least one person 55 years of age or older, provided that at least 80 percent of the units that were occupied by new occupants after September 13, 1988, were occupied by at least one person 55 years of age or older;(B) there are unoccupied units, provided that at least 80 percent of such units are reserved for occupancy by at least one person 55 years of age or older; and(C) there are units occupied by employees of the housing facility (and family members residing in the same unit) who are under 55 years of age provided they perform substantial duties directly related to the management or maintenance of the housing.</content><note type="source"><p>Source Note: The provisions of this §819.122 adopted to be effective September 27, 2005, 30 TexReg 6065; amended to be effective June 16, 2014, 39 TexReg 4659; amended to be effective August 1, 2016, 41 TexReg 5559; amended to be effective May 14, 2018, 43 TexReg 3119.</p></note></section><section identifier="/us/state/tx/tac/t40/p20/c819/scH/s819.123"><num value="819.123">§819.123</num><heading>Discrimination in Sale, Rental, Terms, Conditions, Privileges, Services, and Facilities</heading><content>(a) It is unlawful to discriminate based on race, color, disability, religion, sex, national origin, or familial status by imposing different terms, conditions, or privileges relating to the sale or rental of a dwelling or to deny or limit services or facilities in connection with the sale or rental of a dwelling.(b) Prohibited actions under this section include, but are not limited to:(1) using different provisions in leases or contracts of sale, such as those relating to rental charges, security deposits, and the terms of a lease and those relating to down payment and closing requirements based on race, color, disability, religion, sex, national origin, or familial status;(2) failing to maintain or repair or delaying maintenance or repairs of sale or rental dwellings based on race, color, disability, religion, sex, national origin, or familial status;(3) failing to process an offer for the sale or rental of a dwelling or to communicate an offer accurately based on race, color, disability, religion, sex, national origin, or familial status;(4) limiting the use of privileges, services, or facilities associated with a dwelling based on race, color, disability, religion, sex, national origin, or familial status; and(5) denying or limiting services or facilities in connection with the sale or rental of a dwelling because a person failed or refused to provide sexual favors.</content><note type="source"><p>Source Note: The provisions of this §819.123 adopted to be effective September 27, 2005, 30 TexReg 6065.</p></note></section><section identifier="/us/state/tx/tac/t40/p20/c819/scH/s819.124"><num value="819.124">§819.124</num><heading>Other Prohibited Sale and Rental Conduct</heading><content>(a) It is unlawful to discriminate based on race, color, disability, religion, sex, national origin, or familial status by restricting or attempting to restrict the choices of a person by word or conduct in connection with seeking, negotiating for, buying, or renting a dwelling so as to perpetuate, or tend to perpetuate, segregated housing patterns, or to discourage or obstruct choices in a community, neighborhood, or development. Prohibited practices under this section generally refer to unlawful steering practices that include, but are not limited to, discrimination by:(1) discouraging any person from inspecting, purchasing, or renting a dwelling based on race, color, disability, religion, sex, national origin, or familial status in a community, neighborhood, or development;(2) discouraging the purchase or rental of a dwelling based on race, color, disability, religion, sex, national origin, or familial status by exaggerating drawbacks or failing to inform any person of desirable features of a dwelling or of a community, neighborhood, or development;(3) communicating to a potential buyer or renter that he or she would not be comfortable or compatible with existing residents of a community, neighborhood, or development based on race, color, disability, religion, sex, national origin, or familial status; and(4) assigning any person to a particular section of a community, neighborhood, or development or to a particular floor of a building based on race, color, disability, religion, sex, national origin, or familial status.(b) It is unlawful to discriminate based on race, color, disability, religion, sex, national origin, or familial status by engaging in any conduct relating to the provision of housing or of services and facilities in connection therewith that otherwise makes unavailable or denies dwellings to individuals. Prohibited sales and rental practices under this section include, but are not limited to, discrimination by:(1) discharging or taking other adverse action against an employee, broker, or agent because he or she refused to participate in a discriminatory housing practice;(2) employing codes or other devices to segregate or reject potential buyers or renters; refusing to take or to show listings of dwellings in certain areas based on race, color, disability, religion, sex, national origin, or familial status; or refusing to deal with certain brokers or agents because they or one or more of their clients are of a particular race, color, disability, religion, sex, national origin, or familial status;(3) denying or delaying the processing of an application made by a potential buyer or renter or refusing to approve such a person for occupancy in a cooperative or condominium dwelling based on race, color, disability, religion, sex, national origin, or familial status; and(4) refusing to provide municipal services or property or hazard insurance for dwellings or providing such services or insurance differently based on race, color, disability, religion, sex, national origin, or familial status.</content><note type="source"><p>Source Note: The provisions of this §819.124 adopted to be effective September 27, 2005, 30 TexReg 6065.</p></note></section><section identifier="/us/state/tx/tac/t40/p20/c819/scH/s819.125"><num value="819.125">§819.125</num><heading>Discriminatory Advertisements, Statements, and Notices</heading><content>(a) It is unlawful to discriminate based on race, color, disability, religion, sex, national origin, or familial status by making, printing, or publishing, or causing to be made, printed, or published, any notice, statement, or advertisement with respect to the sale or rental of a dwelling that indicates any preference, limitation, or discrimination, or an intention to make any such preference, limitation, or discrimination.(b) The prohibitions in this section shall apply to all written or oral notices or statements by a person engaged in the sale or rental of a dwelling. Written notices and statements include any applications, flyers, brochures, deeds, signs, banners, posters, billboards, electronic communications, or any documents used with respect to the sale or rental of a dwelling.(c) Discriminatory notices, statements, and advertisements include, but are not limited to:(1) using words, phrases, photographs, illustrations, symbols, or forms that convey that dwellings are available or not available to a particular group of individuals based on race, color, disability, religion, sex, national origin, or familial status;(2) expressing to agents, brokers, employees, prospective sellers or renters, or any other individuals a preference for or limitation on any potential buyer or renter based on race, color, disability, religion, sex, national origin, or familial status;(3) selecting media or locations for advertising the sale or rental of dwellings that deny particular segments of the housing market information about housing opportunities based on race, color, disability, religion, sex, national origin, or familial status; and(4) refusing to publish advertising for the sale or rental of dwellings or requiring different charges or terms for such advertising based on race, color, disability, religion, sex, national origin, or familial status.</content><note type="source"><p>Source Note: The provisions of this §819.125 adopted to be effective September 27, 2005, 30 TexReg 6065.</p></note></section><section identifier="/us/state/tx/tac/t40/p20/c819/scH/s819.126"><num value="819.126">§819.126</num><heading>Discriminatory Representations on the Availability of Dwellings</heading><content>(a) It is unlawful to discriminate, based on race, color, disability, religion, sex, national origin, or familial status, by providing inaccurate or untrue information about the availability of dwellings for sale or rent.(b) Prohibited actions under this section include, but are not limited to:(1) indicating through words or conduct that a dwelling that is available for inspection, sale, or rent has been sold or rented based on race, color, disability, religion, sex, national origin, or familial status;(2) representing that covenants or other deed, trust, or lease provisions that purport to restrict the sale or rental of dwellings based on race, color, disability, religion, sex, national origin, or familial status preclude the sale or rental of a dwelling to a person;(3) enforcing covenants or other deed, trust, or lease provisions that preclude the sale or rental of a dwelling to any person based on race, color, disability, religion, sex, national origin, or familial status;(4) limiting information, through words or conduct, regarding suitably priced dwellings available for inspection, sale, or rent based on race, color, disability, religion, sex, national origin, or familial status; and(5) providing false or inaccurate information regarding the availability of a dwelling for sale or rent to any person, including testers, regardless of whether such person is actually seeking housing based on race, color, disability, religion, sex, national origin, or familial status.</content><note type="source"><p>Source Note: The provisions of this §819.126 adopted to be effective September 27, 2005, 30 TexReg 6065.</p></note></section><section identifier="/us/state/tx/tac/t40/p20/c819/scH/s819.127"><num value="819.127">§819.127</num><heading>Discriminatory Practices Regarding Entry into a Neighborhood</heading><content>(a) It is unlawful to discriminate based on race, color, disability, religion, sex, national origin, or familial status by inducing or attempting to induce for profit a person to sell or rent a dwelling by representations regarding the entry or prospective entry into the neighborhood of an individual or group of individuals.(b) Prohibited actions under this section include, but are not limited to:(1) engaging in conduct (including uninvited solicitations for listings) that conveys to a person that a neighborhood is undergoing or is about to undergo a change in the race, color, disability, religion, sex, national origin, or familial status of individuals residing in it or in order to encourage the person to offer a dwelling for sale or rent; and(2) encouraging a person to sell or rent a dwelling through assertions that the entry or prospective entry of individuals of a particular race, color, disability, religion, sex, national origin, or familial status can or will result in undesirable consequences for the project, neighborhood, or community, such as a lowering of property values, an increase in criminal or antisocial behavior, or a decline in the quality of schools or other services or facilities.</content><note type="source"><p>Source Note: The provisions of this §819.127 adopted to be effective September 27, 2005, 30 TexReg 6065.</p></note></section><section identifier="/us/state/tx/tac/t40/p20/c819/scH/s819.128"><num value="819.128">§819.128</num><heading>Discrimination in the Selling, Brokering, or Appraising of Residential Real Property</heading><content>(a) It is unlawful for a person whose business includes engaging in selling, brokering, or appraising of residential real property to discriminate based on race, color, disability, religion, sex, national origin, or familial status.(b) It is unlawful to discriminate based on race, color, disability, religion, sex, national origin, or familial status by denying any person access to or membership or participation in any multiple listing service, real estate brokers' organization, or other service, organization, or facility relating to the business of selling or renting dwellings, or to discriminate against any person in the terms or conditions of such access, membership, or participation.(c) Prohibited actions under this section include, but are not limited to:(1) setting different fees for access to or membership in a multiple listing service;(2) denying or limiting benefits accruing to members in a real estate brokers' organization;(3) imposing different standards or criteria for membership in a real estate sales or rental organization; and(4) establishing geographic boundaries or office location or residence requirements for access to, or membership or participation in, any multiple listing service, real estate brokers' organization, or other service, organization, or facility relating to the business of selling or renting dwellings.(d) For the purposes of this section, the term "appraisal" shall mean an estimate or opinion of the value of a residential real property made in a business context in connection with the sale, rental, financing, or refinancing of a dwelling or in connection with any activity that otherwise affects the availability of a residential real estate-related transaction, whether the appraisal is oral or written, or transmitted formally or informally. The appraisal includes all written comments and other documents submitted as support for the estimate or opinion of value.(e) Practices that are unlawful under this section include, but are not limited to, using an appraisal of residential real property in connection with the sale, rental, or financing of any dwelling where the person knows or reasonably should know that the appraisal improperly takes into consideration race, color, disability, religion, sex, national origin, or familial status.</content><note type="source"><p>Source Note: The provisions of this §819.128 adopted to be effective September 27, 2005, 30 TexReg 6065.</p></note></section><section identifier="/us/state/tx/tac/t40/p20/c819/scH/s819.129"><num value="819.129">§819.129</num><heading>Discrimination in Residential Real Estate Transactions</heading><content>It is unlawful for a person whose business includes engaging in residential real estate-related transactions to discriminate based on race, color, disability, religion, sex, national origin, or familial status in making such a transaction available or in the terms or conditions of such a transaction.</content><note type="source"><p>Source Note: The provisions of this §819.129 adopted to be effective September 27, 2005, 30 TexReg 6065.</p></note></section><section identifier="/us/state/tx/tac/t40/p20/c819/scH/s819.130"><num value="819.130">§819.130</num><heading>Discrimination in Making Loans and in the Provision of Other Financial Assistance</heading><content>(a) It is unlawful for a person whose business includes engaging in residential real estate-related transactions to discriminate based on race, color, disability, religion, sex, national origin, or familial status in making loans or other financial assistance available for a dwelling, or which is or is to be secured by a dwelling.(b) It is unlawful for a person engaged in making loans or in the provision of other financial assistance relating to the purchase, construction, improvement, repair, or maintenance of dwellings that are secured by residential real estate to impose different terms or conditions for the availability of such loans or other financial assistance based on race, color, disability, religion, sex, national origin, or familial status.(c) Prohibited practices under this section include, but are not limited to:(1) failing or refusing to provide to a person, in connection with a residential real estate-related transaction, information regarding the availability of loans or other financial assistance, application requirements, procedures, or standards for the review and approval of loans or financial assistance, or providing information that is inaccurate or different from that provided to others based on race, color, disability, religion, sex, national origin, or familial status;(2) using different policies, practices, or procedures in evaluating or determining creditworthiness of any person in connection with the provision of a loan or other financial assistance for a dwelling or for a loan or other financial assistance that is secured by residential real estate based on race, color, disability, religion, sex, national origin, or familial status; and(3) determining the type of loan or other financial assistance to be provided with respect to a dwelling, or fixing the amount, interest rate, duration, or other terms of a loan or other financial assistance for a dwelling or for a loan or other financial assistance that is secured by residential real estate based on race, color, disability, religion, sex, national origin, or familial status.</content><note type="source"><p>Source Note: The provisions of this §819.130 adopted to be effective September 27, 2005, 30 TexReg 6065; amended to be effective June 16, 2014, 39 TexReg 4659.</p></note></section><section identifier="/us/state/tx/tac/t40/p20/c819/scH/s819.131"><num value="819.131">§819.131</num><heading>Discrimination in Purchasing Loans</heading><content>(a) It is unlawful for a person engaged in the purchasing of loans or other debts or securities that support the purchase, construction, improvement, repair, or maintenance of a dwelling, or that are secured by residential real estate, to discriminate based on race, color, disability, religion, sex, national origin, or familial status by refusing to purchase such loans, debts, or securities, or by imposing different terms or conditions for such purchases.(b) Unlawful conduct under this section includes, but is not limited to:(1) purchasing loans or other debts or securities that relate to or are secured by dwellings in certain communities or neighborhoods but not in others based on race, color, disability, religion, sex, national origin, or familial status;(2) pooling or packaging loans or other debts or securities differently that relate to or are secured by dwellings based on race, color, disability, religion, sex, national origin, or familial status; and(3) imposing or using different terms or conditions on the marketing or sale of securities issued on the basis of loans or other debts or securities that relate to or are secured by dwellings based on race, color, disability, religion, sex, national origin, or familial status.(c) This section does not prevent consideration of factors justified by business necessity in the purchasing of loans, including requirements of state or federal law relating to a transaction's financial security or to protection against default or reduction of the value of the security. Thus, this provision does not preclude considerations employed in normal and prudent transactions provided that no such factor may in any way relate to race, color, disability, religion, sex, national origin, or familial status.</content><note type="source"><p>Source Note: The provisions of this §819.131 adopted to be effective September 27, 2005, 30 TexReg 6065.</p></note></section><section identifier="/us/state/tx/tac/t40/p20/c819/scH/s819.132"><num value="819.132">§819.132</num><heading>Discrimination Based on Disability</heading><content>(a) It is unlawful to discriminate by refusing to sell or rent, or otherwise make unavailable, or deny a dwelling to a potential buyer or renter based on a disability of:(1) the potential buyer or renter;(2) a person residing in or intending to reside in that dwelling after it is so sold, rented, or made available; or(3) any person associated with that person.(b) It is unlawful to discriminate against any person in the terms, conditions, or privileges of the sale or rental of a dwelling, or in the provision of services or facilities in connection with such dwelling, because of a disability of:(1) that buyer or renter;(2) a person residing in or intending to reside in that dwelling after it is so sold, rented, or made available; or(3) any person associated with that person.(c) It is unlawful to make an inquiry to determine whether a potential buyer or renter of a dwelling, a person intending to reside in that dwelling after it is sold, rented, or made available, or any person associated with that potential buyer or renter has a disability. However, this section does not prohibit the following inquiries, provided they are made of each potential buyer or renter, whether or not the person has a disability:(1) Whether the potential buyer or renter is able to meet the requirements of ownership or tenancy;(2) Whether the potential buyer or renter qualifies for a dwelling available only to individuals with disabilities or to people with a particular type of disability;(3) Whether the potential buyer or renter qualifies for a priority available to individuals with disabilities or to people with a particular type of disability;(4) Whether the potential buyer or renter is a current illegal abuser or addict of a controlled substance; or(5) Whether the potential buyer or renter has been convicted of the illegal manufacture or distribution of a controlled substance.</content><note type="source"><p>Source Note: The provisions of this §819.132 adopted to be effective September 27, 2005, 30 TexReg 6065; amended to be effective June 16, 2014, 39 TexReg 4659.</p></note></section><section identifier="/us/state/tx/tac/t40/p20/c819/scH/s819.133"><num value="819.133">§819.133</num><heading>Discrimination in Refusing Reasonable Modifications of Existing Premises</heading><content>(a) It is unlawful for a person to refuse to allow, at the expense of an individual with a disability, reasonable modifications of existing premises, occupied or to be occupied by an individual with a disability, if the proposed modifications may be necessary to afford the individual with a disability full enjoyment of the premises of a dwelling. In the case of a rental, the landlord may, where it is reasonable to do so, condition permission for a modification on the renter agreeing to restore the interior of the premises to the condition that existed before the modification, reasonable wear and tear excepted. The landlord may not increase a customarily required security deposit for individuals with disabilities. However, where it is necessary to ensure with reasonable certainty that funds are available to pay for the restorations at the end of the tenancy, the landlord may negotiate as part of such a restoration agreement a provision requiring that the tenant pay into an interest-bearing escrow account, over a reasonable period, a reasonable amount of money not to exceed the cost of the restorations. The interest in any such account shall accrue to the benefit of the tenant.(b) As a condition for granting a renter permission for a modification, a landlord may require a reasonable description of the proposed modifications, reasonable assurances that the work will be done in a workmanlike manner, and assurances that required building permits will be obtained.</content><note type="source"><p>Source Note: The provisions of this §819.133 adopted to be effective September 27, 2005, 30 TexReg 6065.</p></note></section><section identifier="/us/state/tx/tac/t40/p20/c819/scH/s819.134"><num value="819.134">§819.134</num><heading>Discrimination in Refusing Reasonable Accommodations</heading><content>It is unlawful for a person to refuse to make reasonable accommodations in rules, policies, practices, or services, when such accommodations may be necessary to afford an individual with a disability equal opportunity to use and enjoy a dwelling unit, including public and common use areas.</content><note type="source"><p>Source Note: The provisions of this §819.134 adopted to be effective September 27, 2005, 30 TexReg 6065.</p></note></section><section identifier="/us/state/tx/tac/t40/p20/c819/scH/s819.135"><num value="819.135">§819.135</num><heading>Discrimination in Design and Construction Requirements</heading><content>(a) It is unlawful to design and construct covered multifamily dwellings for first occupancy after March 13, 1991, that do not have at least one building entrance on an accessible route, unless it is impractical to do so because of the terrain or unusual characteristics of the site. For purposes of this section, covered multifamily dwellings shall be deemed to be designed and constructed for first occupancy on or before March 13, 1991, if they are occupied by that date or if the last building permit or renewal for the covered multifamily dwellings is issued by a state, county, or local government on or before January 13, 1990. The burden of establishing impracticality because of terrain or unusual site characteristics is on the person who designed or constructed the housing facility.(b) It is unlawful to design and construct covered multifamily dwellings for first occupancy after March 13, 1991, with a building entrance on an accessible route that do not provide:(1) public and common use areas readily accessible to and usable by individuals with disabilities;(2) doors that are sufficiently wide to allow passage into and within the entire premises by individuals in wheelchairs; or(3) interior premises with the following features of adaptable design:(A) accessible routes into and through the covered dwelling unit;(B) light switches, electrical outlets, thermostats, and other environmental controls in accessible locations;(C) reinforcements in bathroom walls to allow later installation of grab bars around the toilet, tub, shower, stall, and shower seat, where such facilities are provided; and(D) usable kitchens and bathrooms to allow an individual in a wheelchair to maneuver.(c) Compliance with the appropriate requirements of ANSI A117.1 suffices to satisfy the requirements of subsection (b)(3) of this section.(d) Compliance with a duly enacted law of a state or unit of general local government that includes the requirements of subsections (a) and (b) of this section satisfies the requirements of subsections (a) and (b) of this section.(e) This section does not invalidate or limit the laws of a state or political subdivision of a state that require dwellings to be designed and constructed in a manner that affords individuals with disabilities greater access than is required by this section.</content><note type="source"><p>Source Note: The provisions of this §819.135 adopted to be effective September 27, 2005, 30 TexReg 6065.</p></note></section><section identifier="/us/state/tx/tac/t40/p20/c819/scH/s819.136"><num value="819.136">§819.136</num><heading>Prohibited Interference, Coercion, Intimidation, Retaliation, or Harassment</heading><content>(a) It is unlawful to interfere, coerce, intimidate, retaliate against, or harass any person in the exercise or enjoyment of, or on account of that person having exercised or enjoyed, or on account of that person having aided or encouraged any other person in the exercise or enjoyment of, any right granted or protected by the Texas Fair Housing Act.(b) Prohibited conduct made unlawful under this section includes, but is not limited to:(1) coercing a person, either orally, in writing, or by other means, to deny or limit the benefits provided that person in connection with the sale or rental of a dwelling or in connection with a residential real estate-related transaction based on race, color, disability, religion, sex, national origin, or familial status;(2) threatening, intimidating, or interfering with individuals in their enjoyment of a dwelling based on race, color, disability, religion, sex, national origin, or familial status of such individuals, or of visitors or associates of such individuals;(3) threatening an employee or agent with dismissal or an adverse employment action, or taking such adverse employment action, for any effort to assist a person seeking access to the sale or rental of a dwelling or seeking access to any residential real estate-related transaction, based on the race, color, disability, religion, sex, national origin, or familial status of that person or of any person associated with that individual;(4) intimidating or threatening any person because that person is engaging in activities designed to make other individuals aware of, or encouraging such other individuals to exercise rights granted or protected by this chapter;(5) retaliating against any person because that person has made a complaint, testified, assisted, or participated in any manner in a proceeding under the Texas Fair Housing Act;(6) retaliating against any person because that person reported a discriminatory housing practice to a housing provider or other authority; and(7) harassing any person because of race, color, religion, sex, familial status, national origin, or disability:(A) Quid pro quo harassment. Quid pro quo harassment refers to an unwelcome request or demand to engage in conduct where submission to the request or demand, either explicitly or implicitly, is made a condition related to the sale, rental, or availability of a dwelling; the terms, conditions, or privileges of the sale or rental, or the provision of services or facilities in connection therewith; or the availability, terms, or conditions of a residential real estate-related transaction. An unwelcome request or demand may constitute quid pro quo harassment even if a person acquiesces in the unwelcome request or demand.(B) Hostile environment harassment. Hostile environment harassment refers to unwelcome conduct that is sufficiently severe or pervasive as to interfere with the availability, sale, rental, or use or enjoyment of a dwelling; the terms, conditions, or privileges of the sale or rental, or the provision or enjoyment of services or facilities in connection therewith; or the availability, terms, or conditions of a residential real estate-related transaction. Hostile environment harassment does not require a change in the economic benefits, terms, or conditions of the dwelling or housing-related services or facilities, or of the residential real-estate transaction.</content><note type="source"><p>Source Note: The provisions of this §819.136 adopted to be effective August 1, 2016, 41 TexReg 5559; amended to be effective May 14, 2018, 43 TexReg 3119.</p></note></section></subchapter><subchapter identifier="/us/state/tx/tac/t40/p20/c819/scI"><num value="I">SUBCHAPTER I</num><heading>TEXAS FAIR HOUSING ACT COMPLAINTS AND INVESTIGATIONS PROCESS</heading><section identifier="/us/state/tx/tac/t40/p20/c819/scI/s819.151"><num value="819.151">§819.151</num><heading>Filing a Complaint</heading><content>(a) A person may telephone, write, visit, e-mail, fax, or otherwise contact CRD to obtain information on filing a complaint with CRD.(b) At the complainant's request, CRD:(1) shall confer with the complainant about the facts and circumstances that may constitute the alleged unlawful housing practice; and(2) shall assist the complainant with preparation of the complaint if the facts and circumstances constitute an alleged unlawful housing practice; or(3) may advise the complainant if the facts and circumstances presented to CRD do not appear to constitute an unlawful housing practice.(c) The complaint shall be filed in writing and under oath with CRD by electronic communication, mail, fax, or in person with:(1) the CRD office on a CRD-provided form;(2) a HUD office; or(3) a local municipality certified by HUD.(d) The CRD director may require complaints to be made in writing, under oath, on a prescribed form. The complaint shall include the following information:(1) The name and address of the complainant;(2) The name and address of the respondent;(3) A description and address of the dwelling that is involved, if appropriate;(4) The basis for the alleged discriminatory housing practices, which may include any of the following: race, color, disability, religion, sex, national origin, or familial status;(5) A concise statement of the facts and circumstances that constitute alleged discriminatory housing practices under the Texas Fair Housing Act, including identification of personal harm, reason given to complainant by respondent for the action taken; and(6) A declaration of unlawful discrimination under federal or state law.(e) A complaint shall be filed on or before the first anniversary of the date the alleged discriminatory housing practice occurs or terminates, whichever is later.(f) The date of the filing of the complaint is the date when it is received by CRD or dual-filed with HUD, except when the CRD director determines that a complaint is timely filed for the purposes of the one-year period for filing of complaints upon submission of written information (including information provided by telephone by the complainant and documented by CRD) that is substantially equivalent to the information identified in subsection (d) of this section. When a complaint alleges discriminatory housing practices that are continuing, as manifested in a number of incidents of such conduct, the complaint shall be timely when filed within one year of the last alleged occurrence.(g) A complaint may be amended to cure technical defects or omissions, or to clarify and amplify allegations made therein. Such amendment or amendments alleging additional acts that constitute unlawful housing practices related to or growing out of the subject matter of the original complaint shall relate back to the date the complaint was first filed. CRD shall provide a copy of the complaint to the respondent. An amended complaint shall be subject to the procedures set forth in applicable law.(h) The CRD director may file a complaint when the CRD director receives information from a credible source that one or more individuals may have violated the rights of one or more individuals protected by the Texas Fair Housing Act. A complaint filed by the CRD director shall be considered for approval by the Commission at a meeting following the filing of the complaint. Upon a majority vote of the Commission, the complaint is approved and any investigation of the complaint shall continue. If a majority of the Commission does not approve the complaint, such complaint shall be withdrawn by CRD.(i) The complainant and respondent shall be notified periodically by CRD of the status of their complaint, unless the notice would jeopardize an undercover investigation by another state, federal, or local government.(j) Upon the acceptance of a complaint, the CRD director shall notify by mail, or electronic communication upon agreement of the complainant, each complainant on whose behalf the complaint was filed. The notice shall:(1) acknowledge the filing of the complaint and state the date that the complaint was accepted for filing;(2) include a copy of the complaint;(3) advise the complainant of the time limits applicable to complaint processing and of the procedural rights and obligations of the complainant under the Texas Fair Housing Act and this chapter;(4) advise the complainant of his or her right to commence a civil action under the Texas Fair Housing Act, Subchapter H, and federal law, not later than two years after the occurrence or termination of the alleged discriminatory housing practice. The notice shall state that the computation of this two-year period excludes any time during which an administrative hearing is pending under this chapter and Texas Fair Housing Act, Subchapter E, with respect to a complaint or charge based on the alleged discriminatory housing practice; and(5) advise the complainant that retaliation against any person because he or she made a complaint or testified, assisted, or participated in an investigation, conciliation, or an administrative proceeding under this chapter is a discriminatory housing practice that is prohibited under the Texas Fair Housing Act and this chapter.</content><note type="source"><p>Source Note: The provisions of this §819.151 adopted to be effective September 27, 2005, 30 TexReg 6065; amended to be effective June 16, 2014, 39 TexReg 4659; amended to be effective August 1, 2016, 41 TexReg 5559.</p></note></section><section identifier="/us/state/tx/tac/t40/p20/c819/scI/s819.152"><num value="819.152">§819.152</num><heading>Legal Representation</heading><content>The complainant and respondent may be represented by an attorney or designated agent.</content><note type="source"><p>Source Note: The provisions of this §819.152 adopted to be effective September 27, 2005, 30 TexReg 6065.</p></note></section><section identifier="/us/state/tx/tac/t40/p20/c819/scI/s819.153"><num value="819.153">§819.153</num><heading>Investigation of a Complaint</heading><content>(a) Upon the acceptance of a complaint under this chapter, CRD shall initiate an investigation. The CRD director may initiate an investigation to determine whether a complaint should be filed under this chapter and the Texas Fair Housing Act, Subchapter E. Such investigations shall be conducted in accordance with the procedures set forth in this chapter. CRD also may invite the parties to participate in a voluntary mediation program in an effort to conciliate the dispute.(b) The CRD director shall determine the scope and nature of the investigation within the context of the allegations set forth in the complaint.(c) At all reasonable times in the complaint investigation, the CRD director shall have access to:(1) necessary witnesses for examination under oath or affirmation; and(2) records, documents, and other information relevant to the investigation of alleged violations of the Texas Fair Housing Act, for inspection and copying.(d) Within 20 days of the acceptance of a complaint or amended complaint under this chapter, the CRD director shall serve a notice on each respondent by regular mail, or electronic communication upon agreement of the respondent. A person who is not named as a respondent in a complaint, but who is identified in the course of the investigation under the Texas Fair Housing Act, Subchapter E, and this chapter, as a person who is alleged to be engaged or to have engaged in the discriminatory housing practice upon which the complaint is based, may be joined as an additional or substitute respondent by service of a notice on the person under this section.(e) The notice to a respondent shall include, but not be limited to, the following:(1) Identification of the alleged discriminatory housing practice upon which the complaint is based, and a copy of the complaint;(2) Date that the complaint was accepted for filing;(3) Time limits applicable to complaint processing under this chapter and the procedural rights and obligations of the respondent under the Texas Fair Housing Act, and this chapter, including the opportunity to submit an answer to the complaint within 10 days of the receipt of the notice;(4) Complainant's right to commence a civil action under the Texas Fair Housing Act, Subchapter H, and federal law, not later than two years after the occurrence or termination of the alleged discriminatory housing practice; an explanation that the computation of the two-year period excludes any time during which an administrative hearing is pending under this chapter or the Texas Fair Housing Act, Subchapter E, with respect to a complaint or charge based on the alleged discriminatory housing practice;(5) If the person is not named in the complaint, but is being joined as an additional or substitute respondent, an explanation of the basis for the CRD director's belief that the joined person is properly joined as a respondent;(6) Instruction that retaliation against any person because he or she made a complaint or testified, assisted, or participated in an investigation, conciliation, or an administrative proceeding under this chapter is a discriminatory housing practice that is prohibited under the Texas Fair Housing Act;(7) Invitation to enter into a conciliation agreement for the purpose of resolving the complaint; and(8) Initial request for information and documentation concerning the facts and circumstances surrounding the alleged discriminatory housing practice set forth in the complaint.(f) The respondent may file an answer not later than 10 days after receipt of the notice described in this section. The respondent may assert any defense that might be available to a defendant in a court of law. The written answer shall either be signed under oath or subscribed by the person making the declaration as true under penalty of perjury and in substantially the form prescribed by Texas Civil Practice and Remedies Code, Chapter 132, or its successor statute.(g) An answer may be reasonably and fairly amended at any time.(h) CRD may conduct discovery in aid of the investigation by the same methods and to the same extent that parties may conduct discovery in an administrative proceeding under the Texas Fair Housing Act, Subchapter E. The CRD director shall have the power to issue subpoenas described under the Texas Fair Housing Act, Subchapter D, in support of the investigation.(i) As part of the complaint investigation, CRD may request information relevant to the alleged violations of the Texas Fair Housing Act. In obtaining this information, CRD may use, but is not limited to using, any of the following:(1) Oral and video interviews and depositions;(2) Written interrogatories;(3) Production of documents and records;(4) Requests for admissions;(5) On-site inspection of respondent's facilities;(6) Written statements or affidavits;(7) A written statement of position or information provided by the complainant or the respondent that is either under oath or subscribed in conformity with this section regarding the allegations in the complaint; or(8) Other forms of discovery authorized by the Administrative Procedure Act, Texas Government Code §§2001.081 - 2001.103, or the Texas Rules of Civil Procedure.(j) CRD may establish time requirements regarding responses to requests for information relevant to an investigation of alleged violations of the Texas Fair Housing Act. The CRD director may extend such time requirements for good cause shown.(k) CRD shall complete the initial investigation of the alleged discriminatory housing practice within 100 days of the filing of the complaint, unless it is impracticable to do so.(l) The complaint shall remain open until a no reasonable cause determination is made, a charge is made, or a conciliation agreement is executed and approved under this chapter and the Texas Fair Housing Act, Subchapter E.(m) At the end of each investigation under this chapter, CRD shall prepare a final investigative report. The investigative report shall contain:(1) the names and dates of contacts with witnesses. The report shall not disclose the names of witnesses that request anonymity; however, the names of such witnesses may be required to be disclosed in the course of an administrative hearing or a civil action;(2) a summary and the dates of correspondence and other contacts with the complainant and the respondent;(3) a summary description of other pertinent records;(4) a summary of witness statements; and(5) answers to interrogatories.(n) A final investigative report may be amended if additional evidence is discovered.(o) CRD shall provide a summary of the final determination and shall make available the full investigative report to the complainant and the respondent.</content><note type="source"><p>Source Note: The provisions of this §819.153 adopted to be effective September 27, 2005, 30 TexReg 6065; amended to be effective June 16, 2014, 39 TexReg 4659; amended to be effective August 1, 2016, 41 TexReg 5559.</p></note></section><section identifier="/us/state/tx/tac/t40/p20/c819/scI/s819.154"><num value="819.154">§819.154</num><heading>Pattern and Practice Complaints</heading><content>When the CRD director determines that the alleged discriminatory practices contained in a complaint are pervasive or institutional in nature, or that the processing of the complaint may involve complex issues, questions of first impression, or may affect a large number of people, the CRD director may identify it as a pattern and practice complaint. This determination can be based on the face of the complaint or on information gathered in connection with an investigation. Pattern and practice investigations may focus not only on documenting facts involved in the complaint but also on review of other policies and procedures to ensure compliance with the nondiscrimination requirements of the Texas Fair Housing Act.</content><note type="source"><p>Source Note: The provisions of this §819.154 adopted to be effective September 27, 2005, 30 TexReg 6065.</p></note></section><section identifier="/us/state/tx/tac/t40/p20/c819/scI/s819.155"><num value="819.155">§819.155</num><heading>Conciliation</heading><content>(a) During the period beginning with the filing of the complaint and ending with the filing of a charge or the dismissal of the complaint by the CRD director, CRD shall attempt to conciliate the complaint.(b) In conciliating a complaint, CRD shall attempt to achieve a just resolution of the complaint and to obtain assurances that the respondent will satisfactorily remedy any violations of the rights of the complainant, and take such action that will assure the elimination of discriminatory housing practices, or the prevention of their occurrence, in the future.(c) The terms of a settlement of a complaint shall be reduced to a written conciliation agreement. The conciliation agreement shall protect the interests of the complainant, other people similarly situated, and the public interest.(d) The agreement is subject to the approval of the CRD director, who shall indicate approval by signing the agreement. The CRD director shall approve an agreement and execute the agreement, only if:(1) the complainant and the respondent agree to the relief; and(2) the provisions of the agreement shall adequately protect the public interest.(e) CRD may issue a charge under the Texas Fair Housing Act and this chapter if the complainant and the respondent have executed an agreement that has not been approved by the CRD director.(f) CRD may terminate its efforts to conciliate the complaint if:(1) the complainant or the respondent fails or refuses to confer with CRD;(2) the complainant or the respondent fails to make a good faith effort to resolve any dispute; or(3) the CRD director finds, for any reason, that voluntary agreement is not likely to result.(g) When the complainant has commenced a civil action under federal or state law seeking relief for the alleged discriminatory housing practice, the CRD director shall terminate conciliation.(h) The CRD director may review compliance with the terms of any conciliation agreement. If the CRD director has reasonable cause to believe that a complainant or a respondent has breached a conciliation agreement, the CRD director may refer the matter to the Office of the Attorney General with a recommendation for the filing of a civil action under the Texas Fair Housing Act, Subchapter G, for the enforcement of the terms of the conciliation agreement.</content><note type="source"><p>Source Note: The provisions of this §819.155 adopted to be effective September 27, 2005, 30 TexReg 6065.</p></note></section><section identifier="/us/state/tx/tac/t40/p20/c819/scI/s819.156"><num value="819.156">§819.156</num><heading>Reasonable Cause Determination and Issuance of a Charge</heading><content>(a) If a conciliation agreement under this chapter and the Texas Fair Housing Act, Subchapter E, has not been executed by the complainant and the respondent, and approved by the CRD director, the CRD director on behalf of the Agency, within the time limits set forth in subsection (f) of this section, shall determine whether, based on the totality of the factual circumstances known at the time of the decision, reasonable cause exists to believe that a discriminatory housing practice has occurred. The reasonable cause determination shall be based solely on the facts concerning the alleged discriminatory housing practice, provided by complainant and respondent or otherwise disclosed during the investigation. In making the reasonable cause determination, the CRD director shall consider whether the facts concerning the alleged discriminatory housing practice are sufficient to warrant the initiation of a civil action in state district court.(b) If the CRD director determines that reasonable cause exists, the CRD director shall immediately issue a charge under the Texas Fair Housing Act, Subchapter E, and this chapter on behalf of the complainant, and shall notify the complainant and the respondent of this determination by certified mail or personal service.(c) If the CRD director determines that no reasonable cause exists, the CRD director shall issue a short written statement of the facts upon which the CRD director has based the no reasonable cause determination; dismiss the complaint; notify the complainant and the respondent of the dismissal (including the written statement of facts) by certified mail or personal service; and make public disclosure of the dismissal.(d) If the CRD director determines that the matter involves the legality of local zoning or land use laws or ordinances, the CRD director, in lieu of making a determination regarding reasonable cause, shall refer the investigative materials to the Office of the Attorney General for appropriate action under the Texas Fair Housing Act, Subchapter G, and shall notify the complainant and the respondent of this action by certified mail or personal service.(e) The CRD director shall not issue a charge under this chapter and the Texas Fair Housing Act, Subchapter E, regarding an alleged discriminatory housing practice, if a complainant has commenced the trial of a civil action under federal or state law seeking relief with respect to the alleged discriminatory housing practice. If a charge is not issued because of the commencement of a trial of a civil action, the CRD director shall notify the complainant and the respondent by certified mail or personal service.(f) The CRD director shall make a reasonable cause determination within 100 days after filing of the complaint.(g) If the CRD director is unable to make the determination within the 100-day period, the CRD director shall notify the complainant and the respondent, by certified mail or personal service, of the reasons for the delay.(h) The CRD director shall notify the complainant and respondent, and any aggrieved person on whose behalf a complaint has been filed, that they may elect to have the claims asserted in the charge decided in a civil action, as provided in Texas Property Code §301.131, or an administrative hearing pursuant to §819.191 of this chapter.</content><note type="source"><p>Source Note: The provisions of this §819.156 adopted to be effective September 27, 2005, 30 TexReg 6065; amended to be effective June 16, 2014, 39 TexReg 4659; amended to be effective August 1, 2016, 41 TexReg 5559.</p></note></section></subchapter><subchapter identifier="/us/state/tx/tac/t40/p20/c819/scJ"><num value="J">SUBCHAPTER J</num><heading>FAIR HOUSING DEFERRAL TO MUNICIPALITIES</heading><section identifier="/us/state/tx/tac/t40/p20/c819/scJ/s819.171"><num value="819.171">§819.171</num><heading>Deferral</heading><content>Pursuant to Texas Fair Housing Act §301.068, CRD may defer proceedings and refer complaints to a municipality that is currently certified by HUD as a Fair Housing Assistance Program (FHAP) to investigate fair housing complaints and enforce violations.</content><note type="source"><p>Source Note: The provisions of this §819.171 adopted to be effective September 27, 2005, 30 TexReg 6065; amended to be effective August 1, 2016, 41 TexReg 5559.</p></note></section></subchapter><subchapter identifier="/us/state/tx/tac/t40/p20/c819/scK"><num value="K">SUBCHAPTER K</num><heading>FAIR HOUSING ADMINISTRATIVE HEARINGS AND JUDICIAL REVIEW</heading><section identifier="/us/state/tx/tac/t40/p20/c819/scK/s819.191"><num value="819.191">§819.191</num><heading>Administrative Hearings</heading><content>(a) Administrative hearings shall be conducted by the Agency's Special Hearings Department pursuant to the procedures set forth in this Subchapter K, which incorporates the procedures set forth in Texas Government Code, Chapter 2001, Subchapters C - D, F - H, and Z, and adapts such procedures specifically for fair housing administrative hearings. If any procedures under this Subchapter K are in conflict with Texas Government Code, Chapter 2001, Subchapters C - D, F - H, or Z, such subchapters under Chapter 2001 shall control.(b) Hearings may be conducted by electronic means, including but not limited to telephonic hearings, unless the hearing officer determines that an in-person hearing is necessary.(c) Parties needing special accommodations, including the need for a bilingual or sign language interpreter, shall make this request before the hearing is set, if possible, or as soon as practical.</content><note type="source"><p>Source Note: The provisions of this §819.191 adopted to be effective August 1, 2016, 41 TexReg 5559.</p></note></section><section identifier="/us/state/tx/tac/t40/p20/c819/scK/s819.192"><num value="819.192">§819.192</num><heading>Parties</heading><content>(a) Parties to proceedings under this section are the Agency, respondent(s) and any intervenors. Respondents include persons named as such in a charge issued under §819.156.(b) An aggrieved person as defined under Texas Property Code §301.003(1) is not a party but may file a motion to intervene. Requests for intervention shall be filed within 50 days after the issuance of the charge; however, the hearing officer may allow intervention beyond that time. An intervenor's right to participate as a party may be restricted by order of the hearing officer.(c) Intervention shall be permitted if the person requesting intervention is:(1) The aggrieved person on whose behalf the charge is issued; or(2) An aggrieved person who claims an interest in the property or transaction that is the subject of the charge and the disposition of the charge may, as a practical matter, impair or impede this person's ability to protect that interest, unless the aggrieved person is adequately represented by the existing parties.(d) If an aggrieved person does not intervene within 50 days after issuance of the charge, and the parties have reached a settlement, the hearing officer shall dismiss the case.</content><note type="source"><p>Source Note: The provisions of this §819.192 adopted to be effective August 1, 2016, 41 TexReg 5559.</p></note></section><section identifier="/us/state/tx/tac/t40/p20/c819/scK/s819.193"><num value="819.193">§819.193</num><heading>Evidence and Pre-hearing Conference</heading><content>(a) Evidence Generally. Evidence, including hearsay evidence, shall be admitted if it is relevant and if in the judgment of the hearing officer it is the kind of evidence on which reasonably prudent persons are accustomed to rely in conducting their affairs. However, the hearing officer may exclude evidence if its probative value is outweighed by the danger of unfair prejudice, by confusion of the issues, or by reasonable concern for undue delay, waste of time, or needless presentation of cumulative evidence.(b) Exchange of Exhibits. To be considered as evidence in a decision, any document or physical evidence must be entered as an exhibit at the hearing. Any documentary evidence to be presented during a telephonic hearing shall be exchanged with all parties in advance of the hearing and a copy shall be provided to the hearing officer in advance of the hearing. Upon consideration of a party's proffered reason for failure to exchange documentary evidence in advance of the hearing, the hearing officer may admit or exclude same, or grant a postponement of the hearing, in the discretion of the hearing officer.(c) Stipulations. The parties, with the consent of the hearing officer, may agree in writing to facts that are not in controversy. The hearing officer may decide the appeal on the basis of such stipulations or, at the hearing officer's discretion, may set the appeal for hearing and take such further evidence as the hearing officer deems necessary.(d) The hearing officer may, on the hearing officer's own motion or at the request of any party, set an informal prehearing conference and require that all parties attend. Notice of the conference shall be in writing to each party. The conference will be held in accordance with §819.191 of these Rules, and will be an official part of the hearing record. Pursuant to the conference, the hearing officer may consider:(1) establishing the identities of parties and witnesses;(2) the agreement of the parties on facts that are not in controversy;(3) conciliation of the dispute;(4) clarification of the issues;(5) procedures for scheduling and conduct of the hearing;(6) exchange of documents; and(7) any other matter that promotes the orderly and prompt conduct of the hearing.</content><note type="source"><p>Source Note: The provisions of this §819.193 adopted to be effective August 1, 2016, 41 TexReg 5559.</p></note></section><section identifier="/us/state/tx/tac/t40/p20/c819/scK/s819.194"><num value="819.194">§819.194</num><heading>Notice of Hearing</heading><content>(a) The Agency shall assign a hearing officer and mail a notice of hearing to the parties and/or their designated representatives. The notice of hearing shall be in writing and include:(1) a statement of the date, time, place, and nature of the hearing;(2) a statement of the legal authority and jurisdiction under which the hearing is to be held;(3) a reference to the sections of the statutes and rules involved; and(4) either:(A) a short, plain statement of the factual matters asserted; or(B) an attachment that incorporates by reference the factual matters asserted in the complaint.(b) The notice of hearing shall be issued at least 10 calendar days before the date of the hearing by sending it to each party's last known address, as shown by Agency records, by first-class mail.</content><note type="source"><p>Source Note: The provisions of this §819.194 adopted to be effective August 1, 2016, 41 TexReg 5559; amended to be effective May 14, 2018, 43 TexReg 3119.</p></note></section><section identifier="/us/state/tx/tac/t40/p20/c819/scK/s819.195"><num value="819.195">§819.195</num><heading>Postponement and Continuance</heading><content>On the hearing officer's own motion, or for good cause, at a party's request, the hearing officer may postpone or continue a hearing.</content><note type="source"><p>Source Note: The provisions of this §819.195 adopted to be effective August 1, 2016, 41 TexReg 5559.</p></note></section><section identifier="/us/state/tx/tac/t40/p20/c819/scK/s819.196"><num value="819.196">§819.196</num><heading>Default</heading><content>If a party to whom a notice of hearing is served or provided under this section fails to appear for hearing, the hearing officer may proceed in that party's absence on a default basis. If a proposal for decision or final decision is issued, the factual allegations listed in the notice of hearing may be deemed admitted. If a party fails to appear at a hearing, the hearing officer will issue a notice of default to that party. A party may file a motion no later than 15 calendar days after the notice of default is mailed to set aside a default announced at the hearing and to reopen the record. If a timely motion to set aside a default is filed, the hearing officer may grant the motion, set aside the default, and reopen the hearing for good cause shown, or in the interests of justice.</content><note type="source"><p>Source Note: The provisions of this §819.196 adopted to be effective August 1, 2016, 41 TexReg 5559.</p></note></section><section identifier="/us/state/tx/tac/t40/p20/c819/scK/s819.197"><num value="819.197">§819.197</num><heading>Ex Parte Communications</heading><content>(a) Except as provided in this chapter, and unless required for the disposition of ex parte matters authorized by law, neither the hearing officer nor a Commission member may communicate, directly or indirectly, in connection with any issue of fact or law with a party or representative of a party, except on notice and opportunity for all parties to participate.(b) The hearing officer or a Commission member may communicate concerning the case with an Agency employee who has not participated in the hearing, but may do so only for the purpose of using the special skills or knowledge of the Agency and its staff in evaluating the evidence.(c) For purposes of this section, the Agency is considered to be a party to the case.</content><note type="source"><p>Source Note: The provisions of this §819.197 adopted to be effective August 1, 2016, 41 TexReg 5559.</p></note></section><section identifier="/us/state/tx/tac/t40/p20/c819/scK/s819.198"><num value="819.198">§819.198</num><heading>Proposal for Decision</heading><content>(a) The hearing officer shall prepare a proposal for decision containing a statement of the reasons for the proposed decision and of each finding of fact and conclusion of law.(b) The hearing officer shall submit a copy of the proposal for decision to each party by first-class mail. The parties may submit to the hearing officer exceptions to the proposal for decision and replies to exceptions to the proposal for decision.(c) Exceptions shall be filed within 15 calendar days after the date of service of the proposal for decision. A reply to the exceptions shall be filed within 15 calendar days of the filing of the exceptions. The date of service shall be presumed to be on the third day after the date on which the proposal for decision is mailed. The hearing officer may extend or shorten the time to file exceptions or replies.(d) The hearing officer shall review all exceptions and replies and notify the parties as to whether the hearing officer recommends any changes to the proposal for decision.(e) The hearing officer will not issue a proposal for decision during the 15-day period referenced in §819.196 within which a defaulting party may file a motion to set aside a default and to reopen the record.</content><note type="source"><p>Source Note: The provisions of this §819.198 adopted to be effective August 1, 2016, 41 TexReg 5559.</p></note></section><section identifier="/us/state/tx/tac/t40/p20/c819/scK/s819.199"><num value="819.199">§819.199</num><heading>Commission Decision</heading><content>(a) After the time for filing exceptions and replies to exceptions has expired, the Commission shall consider the hearing officer's report and the proposal for decision. The Commission may adopt the proposal for decision, modify and adopt it, reject it and issue a Commission decision, or remand the matter to the hearing officer. The Commission shall issue its decision within 60 calendar days of the end of the exceptions period. The hearing officer may extend the period in which the decision may be signed and prepare the decision for the Commission.(b) A Commission decision that is adverse to one or more parties shall be in writing and signed after a majority vote of the Commission. Such a decision shall include findings of fact and conclusions of law separately stated. Findings of fact, if set forth in statutory language, shall be accompanied by a concise and explicit statement of the underlying facts supporting the findings. Findings of fact shall be based exclusively on the evidence and on matters officially noticed.(c) The Agency shall notify each party to a contested case of any decision or order of the Commission by using at least one of the following methods of service:(1) personal service;(2) if agreed to by the party to be notified, service by electronic means sent to the current email address or facsimile number of the party's attorney of record or of the party if the party is not represented by counsel; or(3) first-class, certified, or registered mail sent to the last known address of the party's attorney of record or of the party if the party is not represented by counsel.(d) A Commission decision becomes final:(1) if a motion for rehearing is not filed on time, on the expiration of the period for filing a motion for rehearing;(2) if a motion for rehearing is filed on time, on the date:(A) the order overruling the latest filed motion for rehearing is signed; or(B) the latest filed motion for rehearing is overruled by operation of law;(3) if the Commission finds that an imminent peril to the public health, safety, or welfare requires immediate effect of a decision on the date the decision is signed, provided that the Commission incorporates in the decision a factual and legal basis establishing such imminent peril; or(4) on the date specified in the decision for a case in which all parties agree to the specified date in writing or on the record, if the specified date is not before the date the decision is signed or later than the 20th day after the date the decision was issued.</content><note type="source"><p>Source Note: The provisions of this §819.199 adopted to be effective August 1, 2016, 41 TexReg 5559; amended to be effective May 14, 2018, 43 TexReg 3119.</p></note></section><section identifier="/us/state/tx/tac/t40/p20/c819/scK/s819.200"><num value="819.200">§819.200</num><heading>Motion for Rehearing</heading><content>(a) A motion for rehearing is required to exhaust all administrative remedies. A motion for rehearing must be filed not later than the 25th calendar day after the date the Commission decision is signed, unless the time for filing the motion has been modified by agreement between the parties and approved by the Commission. Any reply to a motion for rehearing shall be filed with the Commission not later than the 40th calendar day after the date the Commission decision is signed. A party filing a motion for rehearing or a reply to a motion for rehearing shall serve a copy on each party within the filing deadline using the notification methods set forth in §819.199(c).(b) The Commission may, by written order, extend the time for filing motions and replies and for taking Commission action. No extension may extend the period for Commission action beyond 100 days after the date the decision is signed. In the event of an extension, a motion for rehearing is denied on the date fixed by the written order or, in the absence of a fixed date, 100 days from the date the decision is signed.(c) If a party files a motion for rehearing, the Commission may:(1) grant such motion and remand for rehearing;(2) deny such motion, either expressly or by operation of law; or(3) render a decision and issue an order that no rehearing shall be necessary because imminent peril to the public health, safety, or welfare requires immediate effect be given to the final order.(d) If the Commission does not act on the motion for rehearing within 55 calendar days after the date the decision was signed, the motion is denied by operation of law and the decision is final.(e) A motion for rehearing must identify with particularity findings of fact or conclusions of law that are the subject of the complaint and any evidentiary or legal ruling claimed to be erroneous. The motion must also state the legal and factual basis for the claimed error.</content><note type="source"><p>Source Note: The provisions of this §819.200 adopted to be effective August 1, 2016, 41 TexReg 5559; amended to be effective May 14, 2018, 43 TexReg 3119.</p></note></section><section identifier="/us/state/tx/tac/t40/p20/c819/scK/s819.201"><num value="819.201">§819.201</num><heading>Judicial Review</heading><content>(a) A person who has exhausted all administrative remedies available under the Texas Fair Housing Act and who is aggrieved by a final decision of the Commission is entitled to judicial review under the substantial evidence rule as set forth in Administrative Procedure Act §2001.001, et seq.(b) Proceedings for judicial review are instituted by filing a petition in a Travis County district court within 30 calendar days after the final decision is mailed.</content><note type="source"><p>Source Note: The provisions of this §819.201 adopted to be effective August 1, 2016, 41 TexReg 5559.</p></note></section></subchapter><subchapter identifier="/us/state/tx/tac/t40/p20/c819/scL"><num value="L">SUBCHAPTER L</num><heading>FAIR HOUSING FUND</heading><section identifier="/us/state/tx/tac/t40/p20/c819/scL/s819.221"><num value="819.221">§819.221</num><heading>Fair Housing Fund</heading><content>(a) A fair housing fund is a fund in the state treasury in the custody of the Texas Comptroller of Public Accounts.(b) Civil penalties assessed against a respondent under the Texas Fair Housing Act, Subchapters E and G, shall be deposited to the credit of the fair housing fund.(c) The Agency may use monies deposited to the credit of the fair housing fund for the administration of the Texas Fair Housing Act.(d) Gifts and grants received as authorized by the Texas Fair Housing Act, Subchapter D, shall be deposited to the credit of the fair housing fund.</content><note type="source"><p>Source Note: The provisions of this §819.221 adopted to be effective September 27, 2005, 30 TexReg 6065; amended to be effective August 1, 2016, 41 TexReg 5559.</p></note></section></subchapter></chapter><chapter identifier="/us/state/tx/tac/t40/p20/c821"><num value="821">CHAPTER 821</num><heading>TEXAS PAYDAY RULES</heading><subchapter identifier="/us/state/tx/tac/t40/p20/c821/scA"><num value="A">SUBCHAPTER A</num><heading>GENERAL PROVISIONS</heading><section identifier="/us/state/tx/tac/t40/p20/c821/scA/s821.1"><num value="821.1">§821.1</num><heading>Title and Purpose</heading><content>(a) Title. These rules may be cited as the Texas Payday Rules.(b) Purpose. The purpose of these rules is to implement and interpret the provisions of the Texas Labor Code, Chapter 61, Payment of Wages.</content><note type="source"><p>Source Note: The provisions of this §821.1 adopted to be effective June 1, 1998, 23 TexReg 5732.</p></note></section><section identifier="/us/state/tx/tac/t40/p20/c821/scA/s821.2"><num value="821.2">§821.2</num><heading>Definitions</heading><content>The following words and terms, when used in this chapter, shall have the following meanings, unless the context clearly indicates otherwise.(1) Act--Texas Labor Code, Chapter 61, also known as the Texas Payday Act or the Texas Payday Law.(2) Claimant--A person who has filed a wage claim under the Act.(3) Commission--The Texas Workforce Commission.(4) Court of competent jurisdiction--A court authorized to issue an order including, but not limited to, a legislative or statutory county court at law, district court, small claims court, or federal court that acts within the appropriate jurisdiction over the amount in controversy, the person, and other appropriate subject matter.</content><note type="source"><p>Source Note: The provisions of this §821.2 adopted to be effective June 1, 1998, 23 TexReg 5732.</p></note></section><section identifier="/us/state/tx/tac/t40/p20/c821/scA/s821.3"><num value="821.3">§821.3</num><heading>Jurisdiction</heading><content>(a) The Commission shall exercise jurisdiction over wage claims in which:(1) the work is performed exclusively in Texas;(2) the work is performed in part in Texas and in part in other states within the United States and where the wages would be reportable to Texas for Unemployment Insurance purposes pursuant to Texas Labor Code §201.043; or(3) the work is performed by an individual who is a Texas resident at the time the work is performed and the work is performed outside Texas for a Texas employer or a non-resident employer over whom Texas exercises jurisdiction pursuant to subsection (b) of this section.(b) The Commission shall exercise jurisdiction over a non-resident employer pursuant to the Texas Civil Practice & Remedies Code, Chapter 17, Subchapter C, also known as the "Texas Long-Arm Statute," when all three of the following are met:(1) the employer purposely does some act or consummates some transaction in Texas;(2) the wage claim arises from the employer's act or the employer's contact with Texas is continuing and systematic; and(3) exercising jurisdiction is consistent with:(A) fair play and justice as determined by the quality, nature and extent of the employer's activities in Texas including the extent to which the employer avails itself of the benefits and protections of Texas law; and(B) the relative convenience of the parties.(c) The Commission shall not exercise jurisdiction over wage claims to the extent the wages are for work performed outside the United States.</content><note type="source"><p>Source Note: The provisions of this §821.3 adopted to be effective June 1, 1998, 23 TexReg 5732.</p></note></section><section identifier="/us/state/tx/tac/t40/p20/c821/scA/s821.4"><num value="821.4">§821.4</num><heading>Political Subdivision</heading><content>(a) An entity is a political subdivision of the state, and therefore not an employer under the Act, if it meets the criteria in either subsections (b) or (c) of this section.(b) An entity is a political subdivision of this state if it is a governmental unit having:(1) the power to tax real and tangible personal property;(2) limited geographic and jurisdictional boundaries;(3) locally elected or locally appointed governing members; and(4) the authority to provide a general public service or benefit.(c) An entity is a political subdivision of this state if the entity is so designated by Texas statute.(d) Entities that are political subdivisions of this state include, but are not limited to:(1) cities;(2) counties;(3) school districts;(4) junior college districts;(5) levee improvement districts;(6) drainage districts;(7) irrigation districts;(8) water improvement districts;(9) water control and improvement districts;(10) water control and preservation districts;(11) freshwater supply districts;(12) navigation districts;(13) conservation and reclamation districts;(14) soil conservation districts;(15) municipal utility districts;(16) river authorities;(17) housing authorities;(18) hospital authorities; and(19) other similar entities.</content><note type="source"><p>Source Note: The provisions of this §821.4 adopted to be effective June 1, 1998, 23 TexReg 5732; amended to be effective September 20, 2010, 35 TexReg 8506.</p></note></section><section identifier="/us/state/tx/tac/t40/p20/c821/scA/s821.5"><num value="821.5">§821.5</num><heading>Employment Status: Employee or Independent Contractor</heading><content>The Commission adopts the following form, Form C-8, as its official guideline for use in determining employment status.Attached Graphic</content><note type="source"><p>Source Note: The provisions of this §821.5 adopted to be effective June 1, 1998, 23 TexReg 5732; amended to be effective March 13, 2007, 32 TexReg 1328.</p></note></section><section identifier="/us/state/tx/tac/t40/p20/c821/scA/s821.6"><num value="821.6">§821.6</num><heading>Wage Claims Involving Minimum Wage or Overtime</heading><content>(a) The Commission shall consider any applicable minimum wage and overtime requirement in determining if wages are due and unpaid.(b) In determining an employee's entitlement to federal minimum wage or overtime, the Commission shall look to the Fair Labor Standards Act (FLSA) of 1938 as amended, 29 U.S.C. 201 et seq., and the regulations promulgated by the United States Department of Labor thereunder. In determining an employee's entitlement to state minimum wage, the Commission shall look to the Texas Minimum Wage Act, located at Texas Labor Code, Chapter 62.</content><note type="source"><p>Source Note: The provisions of this §821.6 adopted to be effective June 1, 1998, 23 TexReg 5732.</p></note></section><section identifier="/us/state/tx/tac/t40/p20/c821/scA/s821.7"><num value="821.7">§821.7</num><heading>Notice of Paydays</heading><content>For purposes of posting notices indicating an employer's paydays, electronic posting is sufficient to meet the requirements of §61.012(c) of the Act as long as the electronic posting otherwise meets the requirements of the Act.</content><note type="source"><p>Source Note: The provisions of this §821.7 adopted to be effective September 20, 2010, 35 TexReg 8506.</p></note></section></subchapter><subchapter identifier="/us/state/tx/tac/t40/p20/c821/scB"><num value="B">SUBCHAPTER B</num><heading>PAYMENT OF WAGES</heading><section identifier="/us/state/tx/tac/t40/p20/c821/scB/s821.21"><num value="821.21">§821.21</num><heading>Complete and Unconditional Payment of Wages</heading><content>(a) An employer has paid an employee's wages for purposes of the Act if the employer has delivered the wages to the employee:(1) in a form authorized by §61.016 of the Act; and(2) by a method authorized by §61.017 of the Act.(b) An employer has not paid an employee's wages for purposes of the Act if the employee has received the wages subject to a third party claim because:(1) the paycheck has been dishonored due to insufficient funds, a stop-payment order or any other reason attributable to the employer;(2) the employer has caused a direct deposit of the wages to be reversed; or(3) the employer has taken other similar action to undo the payment of wages.</content><note type="source"><p>Source Note: The provisions of this §821.21 adopted to be effective June 1, 1998, 23 TexReg 5732.</p></note></section><section identifier="/us/state/tx/tac/t40/p20/c821/scB/s821.22"><num value="821.22">§821.22</num><heading>Payment Other Than on Payday</heading><content>(a) For purposes of §61.013 of the Act, the Commission interprets "another regular business day" to mean any regular business day, which is designated as being such within the customary practice of the employer, following the employer's designated payday.(b) When an employee leaves employment other than by discharge on a payday, payment of wages in full will be due the following scheduled payday. The Commission shall consider "discharge" as dismissal or release from employment initiated by the employer including, but not limited to, layoff.</content><note type="source"><p>Source Note: The provisions of this §821.22 adopted to be effective June 1, 1998, 23 TexReg 5732.</p></note></section><section identifier="/us/state/tx/tac/t40/p20/c821/scB/s821.25"><num value="821.25">§821.25</num><heading>Fringe Benefits</heading><content>(a) For purposes of §61.001(7)(B) of the Act, vacation pay and sick leave pay are payable to an employee upon separation from employment only if a written agreement with the employer or a written policy of the employer specifically provides for payment.(b) For purposes of §61.001(7)(B) of the Act, severance pay is payment by an employer to an employee beyond the employee's wages on termination of employment, based on the employee's prior service. Severance pay does not include payments for liquidated damages, payments in exchange for a release of claims, or payments made because of a lack of notice of separation.(c) For purposes of §61.001(7)(B) of the Act, the sale of an employer's business is a termination of employment with all of the employer's employees. At the time of termination, the employer becomes liable for the payment of vacation pay, holiday pay, sick leave pay, parental leave pay, or severance pay if owed pursuant to a written agreement or written policy between the employer and its employees.(d) For purposes of §61.001(7)(B) of the Act, expense reimbursements paid to employees are not wages. Expense reimbursements are payments to the employee for costs expended by the employee directly related to the employer's business.(e) Absent the inclusion of definitions of terms in a written agreement with the employer or under a written policy of the employer, a term will be given its ordinary meaning unless a party establishes that it is defined in another way.(f) For purposes of §61.001(7)(B) of the Act, accrued leave time of an employee shall carry over to subsequent years only if a written agreement with the employer or a written policy of the employer specifically provides for it.(g) For purposes of §61.001(7)(B) of the Act, paid time off (PTO) or paid days off (PDO) are wages unless the employer's written policy defines PTO or PDO as something other than a combination of vacation pay, holiday pay, sick leave pay, parental leave pay, or severance pay. PTO or PDO is payable to an employee upon separation from employment only if a written agreement with the employer or a written policy of the employer specifically provides for payment.</content><note type="source"><p>Source Note: The provisions of this §821.25 adopted to be effective June 1, 1998, 23 TexReg 5732; amended to be effective September 20, 2010, 35 TexReg 8506.</p></note></section><section identifier="/us/state/tx/tac/t40/p20/c821/scB/s821.26"><num value="821.26">§821.26</num><heading>Commissions or Bonuses</heading><content>(a) For purposes of §61.015 of the Act:(1) Commissions or bonuses are earned when the employee has met all the required conditions set forth in the applicable agreement with the employer. To change an agreement, there must be prior notice as to the nature and effective date of the changes. Changes to written agreements shall be in writing.(2) Commissions or bonuses are due to be paid, in a timely manner, according to the terms specified in an agreement between an employer and an employee. The terms should specify the time intervals or circumstances (or combinations thereof) that would cause commissions or bonuses to become payable, such as, but not limited to, weekly, monthly, quarterly, when sales transactions are recorded, upon buyer's remittance, etc.(b) Unless otherwise agreed, the employer shall pay, after separation, commissions or bonuses earned as of the time of separation.(c) Commissions or bonuses due after separation from employment are payable based on the routine or practice specified in the agreement when the employee was employed, or on any special agreement made between the employee and the employer upon separation.(d) Draws against commissions or bonuses may be recovered from the current or any subsequent pay period until fully reconciled.</content><note type="source"><p>Source Note: The provisions of this §821.26 adopted to be effective June 1, 1998, 23 TexReg 5732; amended to be effective September 20, 2010, 35 TexReg 8506.</p></note></section><section identifier="/us/state/tx/tac/t40/p20/c821/scB/s821.27"><num value="821.27">§821.27</num><heading>Loans</heading><content>(a) An employer must comply with §61.018 of the Act and this chapter to recoup a loan the employer made to an employee, unless the loan is an advance under §821.29.(b) In recouping a loan made to an employee, an employer may count the loan repayment toward any applicable minimum or overtime wages the employer is obligated to pay to the employee.(c) In recouping a loan made to an employee from any of the employee's paychecks, including the employee's final paycheck, the employer may not withhold or divert more than the agreed amount. The agreed amount is the amount:(1) identified as the amount to be withheld from any one paycheck in the written loan agreement between the employer and employee; or(2) otherwise authorized in writing by the employee for repayment of the loan.</content><note type="source"><p>Source Note: The provisions of this §821.27 adopted to be effective June 1, 1998, 23 TexReg 5732; amended to be effective September 20, 2010, 35 TexReg 8506.</p></note></section><section identifier="/us/state/tx/tac/t40/p20/c821/scB/s821.28"><num value="821.28">§821.28</num><heading>Deductions</heading><content>(a) The Commission provides the following guidance in determining whether an employer is entitled to withhold or divert wages under court order, by law or with written authorization under §61.018 of the Act:(1) A court is presumed to be a court of competent jurisdiction with respect to issuing court orders. The burden shall be on the party opposing a court order to challenge the court's authority by appealing to the issuing court or court of appropriate review as the Commission will presume full faith and credit applies to court orders.(2) State or federal law includes statutes and codes enacted by Congress or the Texas Legislature, rules promulgated by a Texas or federal agency, and regulations promulgated by a Texas or federal agency.(3) A lawful purpose is one that is authorized, sanctioned, or not forbidden, by law.(b) Written authorization for deductions shall be specific as to the lawful purpose for which the employee has accepted the responsibility or liability. Written authorizations shall be:(1) sufficient to give the employee a reasonable expectation of the amount to be withheld from pay; and(2) a clear indication that the deduction is to be withheld from wages.(c) If an employer uses a handbook, policy manual or other similar document instead of a separate writing, the employee's signed acknowledgment of receipt of company policies can be authorization to withhold wages if the acknowledgment meets the requirements of subsection (b) of this section and specifically informs the employee of the deduction. The signed acknowledgment of receipt shall also include language that states that the employee agrees to abide by or be bound to the authorization for deduction.(d) The employer shall ensure that properly withheld wages are applied toward their authorized purpose. Properly withheld wages not applied toward their authorized purpose will be considered unlawful deductions.(e) The employer shall obtain written authorization as required under the Act to deduct credit card service charges from an employee's tips.</content><note type="source"><p>Source Note: The provisions of this §821.28 adopted to be effective June 1, 1998, 23 TexReg 5732.</p></note></section><section identifier="/us/state/tx/tac/t40/p20/c821/scB/s821.29"><num value="821.29">§821.29</num><heading>Wage Advances</heading><content>(a) A wage advance occurs when an employer advances to an employee a monetary sum that represents wages not yet earned, or wages that have been earned but are not yet due for payment.(b) An employer may recoup the wage advance from the employee's next regularly scheduled paycheck directly following the advance if:(1) the employer provides the employee with notice that the amount is an advance that will be recovered from the next paycheck; and(2) the employee agrees to the amount to be recouped.(c) If the wage advance is not recouped in the next regularly scheduled paycheck following the advance, the employer shall comply with §61.018 of the Act.</content><note type="source"><p>Source Note: The provisions of this §821.29 adopted to be effective September 20, 2010, 35 TexReg 8506.</p></note></section></subchapter><subchapter identifier="/us/state/tx/tac/t40/p20/c821/scC"><num value="C">SUBCHAPTER C</num><heading>WAGE CLAIMS</heading><section identifier="/us/state/tx/tac/t40/p20/c821/scC/s821.41"><num value="821.41">§821.41</num><heading>Validity of Claim/Filing and Investigative Procedures</heading><content>(a) A wage claim may be filed in person at an office of the Commission, by mailing the claim to an address designated by the Commission, by faxing the claim to a fax number designated by the Commission, or by electronic submission by way of web-based submission points identified through the Commission's Internet pages related to filing a wage claim.(b) A wage claim must be filled out completely, legibly, and sufficiently to identify and allow the Commission to attempt contact with the employer.</content><note type="source"><p>Source Note: The provisions of this §821.41 adopted to be effective June 1, 1998, 23 TexReg 5732; amended to be effective September 20, 2010, 35 TexReg 8506; amended to be effective December 5, 2017, 42 TexReg 6813.</p></note></section><section identifier="/us/state/tx/tac/t40/p20/c821/scC/s821.42"><num value="821.42">§821.42</num><heading>Timeliness</heading><content>(a) The Commission shall determine the filing date of a wage claim as the date delivered in person to the Commission, the date faxed to and received by the Commission at a fax number designated by the Commission, the date received by the Commission through electronic submission, or the date of a mailed wage claim based on the following:(1) The postmark date of a wage claim properly addressed shall establish by a rebuttable presumption, the date upon which the wage claim was filed unless the party opposing this presumption presents evidence to establish some other filing date.(2) Absent a postmark or evidence establishing some other filing date, the date of receipt by the Commission shall control.(b) The Commission shall suspend the time limit for filing a wage claim only for those reasons required by law including, but not limited to, bankruptcy stays.</content><note type="source"><p>Source Note: The provisions of this §821.42 adopted to be effective June 1, 1998, 23 TexReg 5732; amended to be effective March 13, 2007, 32 TexReg 1328; amended to be effective September 20, 2010, 35 TexReg 8506; amended to be effective December 5, 2017, 42 TexReg 6813.</p></note></section><section identifier="/us/state/tx/tac/t40/p20/c821/scC/s821.43"><num value="821.43">§821.43</num><heading>Wage Claim Withdrawal</heading><content>(a) The Commission shall allow a claimant to withdraw a wage claim at any time before the date when the Commission's written decision becomes final.(b) A claimant withdrawing a wage claim shall submit a form as prescribed by the Commission.(c) The Commission shall apply the withdrawal of a wage claim to both administrative penalties and wages.</content><note type="source"><p>Source Note: The provisions of this §821.43 adopted to be effective June 1, 1998, 23 TexReg 5732; amended to be effective September 20, 2010, 35 TexReg 8506; amended to be effective July 6, 2020, 45 TexReg 4631.</p></note></section><section identifier="/us/state/tx/tac/t40/p20/c821/scC/s821.44"><num value="821.44">§821.44</num><heading>Bad Faith</heading><content>(a) An employer acts in bad faith in not paying wages as required by the Act when that employer acts:(1) with the knowledge that the failure to pay wages is in violation of the Act or this chapter; or(2) in reckless disregard for the requirements of the Act or this chapter.(b) An employee brings a wage claim in bad faith when the employee does so:(1) with the knowledge that the claim is groundless; or(2) solely to harass the employer against whom the claim is brought.(c) An employee brings a wage claim by filing the claim with the Texas Workforce Commission.</content><note type="source"><p>Source Note: The provisions of this §821.44 adopted to be effective June 1, 1998, 23 TexReg 5732.</p></note></section><section identifier="/us/state/tx/tac/t40/p20/c821/scC/s821.46"><num value="821.46">§821.46</num><heading>Void Determination Orders and Decisions</heading><content>A preliminary wage determination order and a decision shall be void from its inception when it orders a nonexistent entity to pay wages or orders a nonliable entity to pay wages.</content><note type="source"><p>Source Note: The provisions of this §821.46 adopted to be effective June 1, 1998, 23 TexReg 5732; amended to be effective September 20, 2010, 35 TexReg 8506.</p></note></section><section identifier="/us/state/tx/tac/t40/p20/c821/scC/s821.47"><num value="821.47">§821.47</num><heading>Amendment of Wage Claims</heading><content>(a) At the discretion of the Commission, a wage claim may be amended for expediency or to prevent injustice.(b) Wage claim amendments are subject to the rules and hearing procedures set forth in Chapter 815 (relating to Unemployment Insurance) of this title, except to the extent that such sections are clearly inapplicable or contrary to provisions set out under this chapter or under the Act.</content><note type="source"><p>Source Note: The provisions of this §821.47 dopted to be effective March 13, 2007, 32 TexReg 1328.</p></note></section><section identifier="/us/state/tx/tac/t40/p20/c821/scC/s821.48"><num value="821.48">§821.48</num><heading>Corrected Preliminary Wage Determination Order</heading><content>(a) If an examiner discovers an error in connection with a preliminary wage determination order or discovers additional information not previously available, the examiner, within the period specified in §61.054 of the Act may reconsider and reissue the preliminary wage determination order, unless a party has already filed an appeal.(b) An examiner's reissued preliminary wage determination order voids and replaces the order requiring correction. A reissued preliminary wage determination order becomes final unless a party files an appeal from the reissued preliminary wage determination order within the period specified in §61.054 of the Act. The period to request an appeal shall begin on the date the examiner mails the reissued preliminary wage determination order.(c) Notwithstanding subsection (a) of this section, if an examiner mails a preliminary wage determination order to a party's incorrect address solely because of the examiner's own error, the examiner may reissue a preliminary wage determination order to the party's correct address at any time.</content><note type="source"><p>Source Note: The provisions of this §821.48 adopted to be effective November 28, 2022, 47 TexReg 7927.</p></note></section><section identifier="/us/state/tx/tac/t40/p20/c821/scC/s821.49"><num value="821.49">§821.49</num><heading>Appeals</heading><content>(a) If either party files an appeal to a preliminary wage determination order, the Commission shall consider all issues, including the amount of wages in controversy.(b) The Commission shall hear all timely requests for reopening and grant such requests if it appears the petitioner has shown good cause for the petitioner's failure to appear at the prior hearing.(c) Hearings conducted under the Act are subject to the rules and hearing procedures set out in Chapter 815 of this title (relating to Unemployment Insurance), except to the extent that such sections are clearly inapplicable or contrary to provisions set out under this chapter or under the Act.</content><note type="source"><p>Source Note: The provisions of this §821.49 adopted to be effective November 28, 2022, 47 TexReg 7927.</p></note></section></subchapter><subchapter identifier="/us/state/tx/tac/t40/p20/c821/scD"><num value="D">SUBCHAPTER D</num><heading>COLLECTION ACTION</heading><section identifier="/us/state/tx/tac/t40/p20/c821/scD/s821.61"><num value="821.61">§821.61</num><heading>Proof of Payment</heading><content>(a) When the employer submits proof of payment, the Commission shall afford the claimant the opportunity to contest the information submitted.(b) A claimant who submits proof of payment shall do so in writing by a signature verifiable by the Commission.</content><note type="source"><p>Source Note: The provisions of this §821.61 adopted to be effective June 1, 1998, 23 TexReg 5732.</p></note></section><section identifier="/us/state/tx/tac/t40/p20/c821/scD/s821.62"><num value="821.62">§821.62</num><heading>Collection Pending Judicial Review</heading><content>The Commission may initiate or continue collection on a final order unless a party complies with the payment provision of §61.063 of the Act.</content><note type="source"><p>Source Note: The provisions of this §821.62 adopted to be effective June 1, 1998, 23 TexReg 5732.</p></note></section><section identifier="/us/state/tx/tac/t40/p20/c821/scD/s821.63"><num value="821.63">§821.63</num><heading>Assignment of Lien to Claimant</heading><content>(a) Upon written request by the claimant, the Commission shall execute an assignment of lien to the claimant. The claimant shall bear responsibility for recording the assignment of lien.(b) Any partial assignment shall leave in full force and effect the lien regarding the remaining claimants.(c) The Commission's assignment of lien is final and irrevocable.</content><note type="source"><p>Source Note: The provisions of this §821.63 adopted to be effective June 1, 1998, 23 TexReg 5732.</p></note></section></subchapter><subchapter identifier="/us/state/tx/tac/t40/p20/c821/scE"><num value="E">SUBCHAPTER E</num><heading>BONDS</heading><section identifier="/us/state/tx/tac/t40/p20/c821/scE/s821.81"><num value="821.81">§821.81</num><heading>Bonding</heading><content>(a) When authorized by §61.031 of the Act, the Commission may require a bond of an employer if the Commission reasonably believes the employer would otherwise fail to comply with the Act.(b) The Commission shall consider the following factors in determining the amount of the bond:(1) the seriousness of the violation, including nature, circumstances, extent and gravity of any prohibited acts;(2) the history of previous violations;(3) the amount necessary to deter future violations;(4) efforts to pay past due wages and penalties;(5) the total amount of wages not paid in accordance with the Act; and(6) any other matter that justice may require.(c) The bond shall be in an amount not less than the cumulative total amount of wages finally determined to be due and unpaid by the employer in the past. The maximum bond shall be in an amount not more than five times the cumulative total amount of wages finally determined to be due and unpaid by the employer in the past.</content><note type="source"><p>Source Note: The provisions of this §821.81 adopted to be effective June 1, 1998, 23 TexReg 5732.</p></note></section></subchapter></chapter><chapter identifier="/us/state/tx/tac/t40/p20/c823"><num value="823">CHAPTER 823</num><heading>INTEGRATED COMPLAINTS, HEARINGS, AND APPEALS</heading><subchapter identifier="/us/state/tx/tac/t40/p20/c823/scA"><num value="A">SUBCHAPTER A</num><heading>GENERAL PROVISIONS</heading><section identifier="/us/state/tx/tac/t40/p20/c823/scA/s823.1"><num value="823.1">§823.1</num><heading>Short Title and Purpose</heading><content>(a) This chapter provides an appeals process to the extent authorized by federal and state law and by rules administered by the Texas Workforce Commission (Agency).(b) This section applies only to complaints or determinations regarding federal- or state-funded workforce services administered by the Agency or Local Workforce Development Boards (Boards), as follows:(1) Child care;(2) Temporary Assistance for Needy Families (TANF) Choices;(3) Supplemental Nutrition Assistance Program (SNAP) Employment and Training (E&T);(4) Workforce Innovation and Opportunity Act (WIOA) adult, dislocated worker, and youth programs; and(5) Eligible Training Providers (ETPs) receiving WIOA funds or other funds for training services.(c) Determinations or complaints relating to the following matters are not governed by this chapter:(1) Across-the-board reductions of services, benefits, or assistance to a class of recipients;(2) Matters governed by hearing procedures otherwise provided for in this title;(3) Alleged violations of nondiscrimination and equal opportunity requirements;(4) Denial of benefits as related to mandatory work requirements for individuals receiving TANF and SNAP E&T services and is administered through the Texas Health and Human Services Commission (HHSC);(5) Matters governing job service-related complaints as referenced in 20 CFR Part 658, Subpart E, §§658.400, 658.410, 658.411, 658.417, and 658.418 and the federal Employment Service law;(6) Services provided by the Commission pursuant to Texas Labor Code §301.023, relating to Complaints Against Commission;(7) Alleged criminal violations of any services referenced in subsection (b) of this section;(8) Disputes between contractors and Boards;(9) Contract disputes; or(10) Any other determination or complaint not listed in subsection (b) of this section.</content><note type="source"><p>Source Note: The provisions of this §823.1 adopted to be effective November 26, 2007, 32 TexReg 8546; amended to be effective January 25, 2021, 46 TexReg 607.</p></note></section><section identifier="/us/state/tx/tac/t40/p20/c823/scA/s823.2"><num value="823.2">§823.2</num><heading>Definitions</heading><content>The following words and terms, when used in this chapter, have the following meanings, unless the context clearly indicates otherwise.(1) Adverse action--Any denial or reduction in benefits or services to a party or displacement of an individual from current employment by a Workforce Solutions Office customer.(2) Agency decision--The written finding issued by an Agency hearing officer following a hearing before that hearing officer.(3) Appeal--A written request for a review filed with the Board or the Agency by an individual in response to a determination or decision.(4) Board adjudicator--An impartial individual designated by the Board to participate in informal dispute resolutions and to review and issue Board decisions.(5) Board decision--The written finding issued by a Board adjudicator following a hearing before that adjudicator in response to an appeal or complaint.(6) Complaint--A written statement alleging a violation of any law, regulation, or rule relating to any federal- or state-funded workforce service covered by this chapter.(7) Determination--A written order issued to a Workforce Solutions Office customer by a Board, its designee, or the Agency relating to an adverse action, or to a provider or contractor relating to denial or termination of eligibility under programs administered by the Agency or a Board listed in §823.1(b) of this subchapter (relating to Short Title and Purpose).(8) Hearing officer--An impartial individual designated by the Agency to conduct hearings and issue Agency decisions.(9) Informal resolution--Any procedure that results in an agreed final settlement between all parties to a complaint.(10) Party--An individual who files a complaint or who appeals a determination or the entity against which the complaint is filed or that issued the determination.</content><note type="source"><p>Source Note: The provisions of this §823.2 adopted to be effective November 26, 2007, 32 TexReg 8546; amended to be effective January 25, 2021, 46 TexReg 607.</p></note></section><section identifier="/us/state/tx/tac/t40/p20/c823/scA/s823.3"><num value="823.3">§823.3</num><heading>Timeliness</heading><content>(a) A properly addressed determination or decision is final for all purposes unless the party to whom it is mailed files an appeal no later than 14 calendar days after the mailing date.(b) Each party to a complaint, adjudication, or appeal shall promptly notify, in writing, the Board, Board's designee, or the Agency with which the complaint or appeal was filed of any change of mailing address. Determinations and decisions shall be mailed to the new address.(1) A copy of the determination or decision must be mailed to a properly designated party representative in order for it to become final.(2) The Board or Agency is responsible for making an address change only if the Board or Agency is specifically directed by the party to mail subsequent correspondence to the new address.(3) If the Board, Board's designee, or Agency addresses a document incorrectly, but the party receives the document, the time frame for filing an appeal shall begin as of the actual date of receipt by the party, whether or not the party receives the document within the appeal time frame set forth in subsection (a) of this section. However, this does not apply if the party fails to provide a current address or provides an incorrect address.(c) A determination or decision mailed to a party shall be presumed to have been delivered if the document was mailed as specified in subsection (b) of this section.(1) A determination or decision shall not be presumed to have been delivered:(A) if there is tangible evidence of nondelivery, such as being returned to the sender by the US Postal Service; or(B) if credible and persuasive evidence is submitted to establish nondelivery or delayed delivery to the proper address.(2) If a party provides the Board or Agency with an incorrect mailing address, a mailing to that address shall be considered a proper mailing, even if there is proof that the party never received the document.(d) A complaint or an appeal shall be in writing. Complaints or appeals may be filed electronically only if filed in a form approved by the Agency in writing. The filing date for a complaint or an appeal shall be:(1) the postmark date or the postal meter date (where there is only one or the other);(2) the postmark date, if there is both a postmark date and a postal meter date;(3) the date the document was delivered to a common carrier, which is equivalent to the postmark date;(4) three business days before receipt by the Board or Agency, if the document was received in an envelope bearing no legible postmark, postal meter date, or date of delivery by a common carrier;(5) the date of the document itself, if the document date is fewer than three days earlier than the date of receipt and if the document was received in an envelope bearing no legible postmark, postal meter date, or date of delivery by a common carrier;(6) the date of the document itself, if the mailing envelope containing the complaint or appeal is lost after delivery to the Board or Agency. If the document is undated, the filing date shall be deemed to be three business days before receipt by the Board or Agency; or(7) the date of receipt by the Board or Agency, if the document was filed by fax.(e) Credible and persuasive testimony under oath, subject to cross-examination, may establish a filing date that is earlier than the dates established under subsection (d) of this section. A party shall be allowed to establish a filing date earlier than a postal meter date or the date of the document itself only upon a showing of extremely credible and persuasive evidence. Likewise, when a party alleges that a complaint or appeal has been filed that the Board or Agency has never received, the party must present credible and persuasive evidence to support the allegation.(f) A decision or determination shall not be deemed final if a party shows that a representative of the Board, the Board's designee, or Agency has given misleading information on appeal rights to the party. The party shall specifically establish:(1) how the party was misled; or(2) what misleading information the party was given, and, if possible, by whom the party was misled.(g) There is no good cause exception to the timeliness rules.</content><note type="source"><p>Source Note: The provisions of this §823.3 adopted to be effective November 26, 2007, 32 TexReg 8546; amended to be effective January 25, 2021, 46 TexReg 607.</p></note></section><section identifier="/us/state/tx/tac/t40/p20/c823/scA/s823.4"><num value="823.4">§823.4</num><heading>Representation</heading><content>A party may authorize a representative to assist with participating in an informal resolution or in presenting a complaint or an appeal on behalf of the party under this chapter. The Agency or Board may require the authorization to be in writing. On behalf of the party, the representative may exercise any of the party's rights under this chapter.</content><note type="source"><p>Source Note: The provisions of this §823.4 adopted to be effective November 26, 2007, 32 TexReg 8546; amended to be effective January 25, 2021, 46 TexReg 607.</p></note></section></subchapter><subchapter identifier="/us/state/tx/tac/t40/p20/c823/scB"><num value="B">SUBCHAPTER B</num><heading>BOARD COMPLAINT AND APPEAL PROCEDURES</heading><section identifier="/us/state/tx/tac/t40/p20/c823/scB/s823.10"><num value="823.10">§823.10</num><heading>Board-Level Complaints</heading><content>(a) Individuals who may file a complaint include:(1) Workforce Solutions Office customers;(2) other interested individuals affected by the One-Stop Service Delivery System, including subrecipients and eligible training providers; and(3) previously employed individuals who believe they were displaced by a Workforce Solutions Office customer participating in work-based services such as subsidized employment, work experience, or workfare.(b) Complaints shall be in writing and filed within 180 calendar days of the alleged violation.(c) The complaint shall include:(1) the complainant's name and current mailing address; and(2) a brief statement of the alleged violation stating the facts on which the complaint is based.(d) Each Board shall ensure that information about complaint procedures is provided to individuals, eligible training providers, and subrecipients. The information provided shall be presented in such a manner as to be understood by the affected individuals, including youth, individuals with disabilities, and individuals with limited English proficiency. This information shall be:(1) posted in a conspicuous public location at each Workforce Solutions Office;(2) provided in writing to any customer;(3) made available in writing to any individual upon request; and(4) placed in each Workforce Solutions Office customer's file.</content><note type="source"><p>Source Note: The provisions of this §823.10 adopted to be effective November 26, 2007, 32 TexReg 8546; amended to be effective January 25, 2021, 46 TexReg 607.</p></note></section><section identifier="/us/state/tx/tac/t40/p20/c823/scB/s823.11"><num value="823.11">§823.11</num><heading>Determinations</heading><content>(a) A determination affecting the type and level of services or benefits to be provided by a Board or its designee shall be promptly provided to any individual directly affected.(b) The determination shall include the following:(1) a brief statement of the adverse action;(2) the mailing date of the determination;(3) an explanation of the individual's right to an appeal;(4) the procedures for requesting informal resolution with the Board and for filing an appeal to the Board, including applicable time frames as required in §823.3 of this chapter (Timeliness);(5) the right to have a representative, including legal counsel; and(6) the address and fax number to which a request for informal resolution or appeal may be sent.(c) Boards shall allow training service providers the opportunity to appeal a determination related to the:(1) denial of eligibility as a training provider under WIOA, §122(b), (c), or (d);(2) termination of eligibility as a training provider or other action under WIOA, §122(f); or(3) denial of eligibility as a training provider of on-the-job or customized training by the operator of a Workforce Solutions Office under WIOA, §122(h).(d) An individual who receives a determination from a Board or a Board's designee may file an appeal with the Board requesting a review of the determination. The appeal must be submitted in writing, be filed within 14 calendar days of the mailing date of the determination, and include the party's proper mailing address.</content><note type="source"><p>Source Note: The provisions of this §823.11 adopted to be effective November 26, 2007, 32 TexReg 8546; amended to be effective January 25, 2021, 46 TexReg 607.</p></note></section><section identifier="/us/state/tx/tac/t40/p20/c823/scB/s823.12"><num value="823.12">§823.12</num><heading>Board Informal Resolution Procedure</heading><content>(a) Each Board shall provide an opportunity for informal resolution of a complaint or appeal.(b) Informal resolution may include, but is not limited to:(1) informal meetings with case managers or their supervisors;(2) second reviews of the case file;(3) telephone calls or conference calls to the affected parties;(4) in-person interviews with all affected parties; or(5) written explanations or summaries of the laws or regulations involved in the complaint.</content><note type="source"><p>Source Note: The provisions of this §823.12 adopted to be effective November 26, 2007, 32 TexReg 8546; amended to be effective January 25, 2021, 46 TexReg 607.</p></note></section><section identifier="/us/state/tx/tac/t40/p20/c823/scB/s823.13"><num value="823.13">§823.13</num><heading>Board Reviews</heading><content>(a) If the informal resolution procedure results in a final agreement between the parties, no hearing shall be held.(b) If no informal resolution is reached, Boards shall provide an opportunity for a formal review to resolve an appeal or complaint.(c) Either a final agreement resulting from an informal resolution or a hearing and Board decision shall be completed within 60 calendar days of the original filing of the appeal or complaint.(d) Boards shall provide a process that allows an individual alleging a labor standards violation to submit a complaint to a binding arbitration procedure if a collective bargaining agreement covering the parties to the complaint so provides.(e) Within 60 calendar days of the filing of the appeal or complaint, the Board shall send the parties a decision setting forth the results of the hearing. The decision shall be issued by a Board adjudicator, include findings of fact and conclusions of law, and provide information about appeal rights to the parties.(f) If no Board decision is mailed within the 60 calendar-day time frame described in subsection (e) of this section, or if any party disagrees with a timely Board decision, a party may file an appeal with the Agency.(g) An appeal to the Agency shall be filed in writing by mail, fax, or hand delivery with the TWC Commission Appeals Department at its state office, 101 E. 15th Street, CA Hearings Unit, Room 678, Austin, Texas, 78778, or faxed to the number provided in the determination or decision within 14 calendar days after the mailing date of the Board's decision. If the Board does not issue a decision within 60 calendar days of the date of the filing of the original appeal or complaint, an appeal to the Agency must be filed no later than 90 calendar days after the filing date of the original appeal or complaint.</content><note type="source"><p>Source Note: The provisions of this §823.13 adopted to be effective November 26, 2007, 32 TexReg 8546; amended to be effective January 25, 2021, 46 TexReg 607.</p></note></section><section identifier="/us/state/tx/tac/t40/p20/c823/scB/s823.14"><num value="823.14">§823.14</num><heading>Board Policies for Resolving Complaints and Appeals of Determinations</heading><content>(a) Each Board shall establish written policies to handle complaints and appeals of determinations, provide the opportunity for informal resolution, and conduct reviews in compliance with this subchapter for individuals, eligible training providers, and other individuals affected by the One-Stop Service Delivery System, including subrecipients.(b) A Board shall maintain written copies of these policies and make them available to the Agency, Workforce Solutions Office customers, and other interested individuals upon request. A Board shall require that its subrecipients provide these policies to Workforce Solutions Office customers and other interested individuals upon request.(c) At a minimum, a Board shall:(1) develop and approve policies to ensure that determinations are provided as specified in §823.11 of this subchapter (relating to Determinations);(2) develop and approve policies to ensure that information about complaint procedures is available as described in §823.10(d) of this subchapter (Board-Level Complaints);(3) notify individuals that complaints must be submitted in writing and set forth the facts on which the complaint is based, and notify them of the time limit in which to file a complaint;(4) maintain a complaint log and all complaint-related materials in a secure file for a period of three years after final resolution;(5) designate an individual to be responsible for investigating, documenting, monitoring, and following up on complaints;(6) inform individuals of the:(A) right to file a complaint;(B) right to appeal a determination;(C) opportunity for informal resolution and a Board review;(D) time frame in which to either reach informal resolution or to issue a Board decision; and(E) right to file an appeal to the Agency, including providing information on where to file the appeal;(7) designate adjudicators to conduct Board hearings, document actions taken, and render decisions; and(8) ensure that complaints remanded from the Agency to the Board for resolution are handled in a timely fashion and follow established Board policies and time frames.(d) Complaints filed directly with the Agency may be remanded to the appropriate Board to be processed in accordance with the Board's policies for resolving complaints.</content><note type="source"><p>Source Note: The provisions of this §823.14 adopted to be effective November 26, 2007, 32 TexReg 8546; amended to be effective January 25, 2021, 46 TexReg 607.</p></note></section></subchapter><subchapter identifier="/us/state/tx/tac/t40/p20/c823/scC"><num value="C">SUBCHAPTER C</num><heading>AGENCY COMPLAINT AND APPEAL PROCEDURES</heading><section identifier="/us/state/tx/tac/t40/p20/c823/scC/s823.20"><num value="823.20">§823.20</num><heading>State-Level Complaints</heading><content>(a) A Workforce Solutions Office customer or other interested individual affected by the statewide One-Stop Service Delivery System, including service providers that allege a noncriminal violation of the requirements of any federal- or state-funded workforce services, may file a complaint with the Agency.(b) Complaints shall be in writing and filed within 180 calendar days of the alleged violation. The complaint shall include the party's name, current mailing address, and a brief statement of the alleged violation identifying the facts on which the complaint is based.(c) The complaint shall be filed with the TWC Commission Appeals Department at its state office, 101 E. 15th Street, CA Hearings Unit, Room 678, Austin, Texas, 78778.(d) The Agency shall provide an opportunity for informal resolution.(e) If the informal resolution procedure results in a final agreement between the parties, no hearing shall be held.(f) If no final informal resolution is reached, the complaint shall be promptly set for a hearing and a decision shall be issued in accordance with the procedures for appeals under this subchapter.(g) Complaints filed directly with the Agency may be remanded to the appropriate Board to be processed in accordance with the Board's hearing policies.</content><note type="source"><p>Source Note: The provisions of this §823.20 adopted to be effective November 26, 2007, 32 TexReg 8546; amended to be effective January 25, 2021, 46 TexReg 607.</p></note></section><section identifier="/us/state/tx/tac/t40/p20/c823/scC/s823.21"><num value="823.21">§823.21</num><heading>Hearings</heading><content>(a) A WIOA-funded training provider or other provider certified by the Agency and later found to be ineligible to receive funding as a training provider may file an appeal directly with the Agency.(b) Upon receipt of an appeal from a Board decision, an appeal pursuant to subsection (a) of this section, or if no informal resolution of a complaint is successfully reached pursuant to §823.20 of this subchapter (relating to State-Level Complaints), the Agency shall promptly assign a hearing officer and mail a notice of hearing to the parties and/or their designated representatives. The hearing shall be set and held promptly and in no case later than as provided by applicable statute or rule.(c) The notice of hearing shall be in writing and include a:(1) statement of the date, time, place, and nature of the hearing;(2) statement of the legal authority under which the hearing is to be held; and(3) short and plain statement of the issues to be considered during the hearing.(d) The notice of hearing shall be issued at least 10 calendar days before the date of the hearing unless a shorter period is permitted by statute.(e) Hearings shall be conducted by telephonic means, unless an in-person hearing is required by applicable statute or the Agency determines that an in-person hearing is necessary.(f) Parties may request accommodations, including interpreters, through the hearing officer or Agency staff.</content><note type="source"><p>Source Note: The provisions of this §823.21 adopted to be effective November 26, 2007, 32 TexReg 8546; amended to be effective January 25, 2021, 46 TexReg 607.</p></note></section><section identifier="/us/state/tx/tac/t40/p20/c823/scC/s823.22"><num value="823.22">§823.22</num><heading>Postponement and Continuance</heading><content>(a) The hearing officer shall use his or her best judgment to determine when to grant a continuance of postponement of a hearing in order to secure all the evidence that is necessary and to be fair to the parties.(b) Before the hearing, requests for a continuance or a postponement of a hearing may be made informally, either orally or in writing, to the hearing officer.</content><note type="source"><p>Source Note: The provisions of this §823.22 adopted to be effective November 26, 2007, 32 TexReg 8546; amended to be effective January 25, 2021, 46 TexReg 607.</p></note></section><section identifier="/us/state/tx/tac/t40/p20/c823/scC/s823.23"><num value="823.23">§823.23</num><heading>Evidence</heading><content>(a) Evidence Generally. Evidence, including hearsay evidence, shall be admitted if it is relevant and if in the judgment of the hearing officer it is the kind of evidence on which reasonably prudent persons are accustomed to rely in the conduct of their affairs. However, the hearing officer may exclude evidence if its probative value is outweighed by the danger of unfair prejudice, by confusion of the issues, or by reasonable concern for undue delay, waste of time, or needless presentation of cumulative evidence.(b) Exchange of Exhibits. To be considered as evidence in a decision, any document or physical evidence must be entered as an exhibit at the hearing. Any documentary evidence to be presented during a telephonic hearing shall be exchanged with all parties and a copy shall be provided to the hearing officer in advance of the hearing. Any documentary evidence to be presented at an in-person hearing shall be exchanged at the hearing.(c) Stipulations. The parties, with the consent of the hearing officer, may agree in writing to relevant facts. The hearing officer may decide the appeal on the basis of such stipulations or, at the hearing officer's discretion, may set the appeal for hearing and take such further evidence as the hearing officer deems necessary.(d) Experts and Evaluations. If relevant and useful, testimony from an independent expert or a professional evaluation from a source satisfactory to the parties and the Agency may be ordered by hearing officers, on their own motion or at a party's request. The cost of any such expert or evaluation ordered by the hearing officer shall be borne equally by the parties.(e) Subpoenas.(1) The hearing officer may issue subpoenas to compel the attendance of witnesses and the production of records. A subpoena may be issued either at the request of a party or on the hearing officer's own motion.(2) A party requesting a subpoena shall state the nature of the information desired, including names of any witnesses and the records that the requestor feels are necessary for the proper presentation of the case.(3) The request shall be granted only to the extent the records or the testimony of the requested witnesses appears to be relevant to the issues on appeal.(4) A denial of a subpoena request shall be made in writing or on the record, stating the reasons for such denial.</content><note type="source"><p>Source Note: The provisions of this §823.23 adopted to be effective November 26, 2007, 32 TexReg 8546.</p></note></section><section identifier="/us/state/tx/tac/t40/p20/c823/scC/s823.24"><num value="823.24">§823.24</num><heading>Hearing Procedures</heading><content>(a) General Procedure. All hearings shall be conducted de novo. The hearing shall be conducted informally and in such manner as to ascertain the substantive rights of the parties. The hearing officer shall develop the evidence. All issues relevant to the appeal shall be considered and addressed.(1) Presentation of Evidence. The parties to an appeal may present evidence that is material and relevant, as determined by the hearing officer. In conducting a hearing, the hearing officer shall actively develop the record on the relevant circumstances and facts to resolve all issues. To be considered as evidence in a decision, any document or physical evidence must be entered as an exhibit at the hearing. A party has the right to object to evidence offered at the hearing by the hearing officer or other parties.(2) Examination of Witnesses and Parties. The hearing officer shall examine parties and any witnesses under oath and shall allow cross-examination to the extent the hearing officer deems necessary to afford the parties due process.(3) Additional Evidence. The hearing officer, with or without notice to any of the parties, may take additional evidence deemed necessary, provided that a party shall be given an opportunity to rebut the evidence if it is to be used against the party's interest.(4) Appropriate Hearing Behavior. All parties shall conduct themselves in an appropriate manner. The hearing officer may expel any individual, including a party, who fails to correct behavior the hearing officer identifies as disruptive. After an expulsion, the hearing officer may proceed with the hearing and render a decision.(b) Records.(1) The hearing record shall include the audio recording of the proceeding and any other relevant evidence relied on by the hearing officer, including documents and other physical evidence entered as exhibits.(2) The hearing record shall be maintained in accordance with federal or state law.(3) Confidentiality of information contained in the hearing record shall be maintained in accordance with federal and state law.(4) Upon request, a party has the right to obtain a copy of the hearing record, including recordings of the hearing and file documents at no charge.</content><note type="source"><p>Source Note: The provisions of this §823.24 adopted to be effective November 26, 2007, 32 TexReg 8546; amended to be effective January 25, 2021, 46 TexReg 607.</p></note></section><section identifier="/us/state/tx/tac/t40/p20/c823/scC/s823.25"><num value="823.25">§823.25</num><heading>Withdrawal of Complaint or Appeal</heading><content>A party may request a withdrawal of its own complaint or appeal at any time before a final Agency decision is issued. The hearing officer may grant the request for withdrawal in writing and issue an order of dismissal.</content><note type="source"><p>Source Note: The provisions of this §823.25 adopted to be effective November 26, 2007, 32 TexReg 8546.</p></note></section><section identifier="/us/state/tx/tac/t40/p20/c823/scC/s823.26"><num value="823.26">§823.26</num><heading>Hearing Officer Independence and Impartiality</heading><content>(a) A hearing officer presiding over a hearing shall have all powers necessary and appropriate to conduct a full, fair, and impartial hearing. Hearing officers shall remain independent and impartial in all matters regarding the handling of any issues during the pendency of a case and in issuing their written decisions.(b) A hearing officer shall be disqualified if the hearing officer has a personal interest in the outcome of the appeal or if the hearing officer directly or indirectly participated in the determination or Board decision on appeal. Any party may present facts to the Agency in support of a request to disqualify a hearing officer.(c) A hearing officer may withdraw from a hearing to avoid the appearance of impropriety or partiality.(d) Following any disqualification or withdrawal of a hearing officer, the Agency shall assign an alternate hearing officer to the case. The alternate hearing officer shall not be bound by any findings or conclusions made by the disqualified or withdrawn hearing officer.</content><note type="source"><p>Source Note: The provisions of this §823.26 adopted to be effective November 26, 2007, 32 TexReg 8546.</p></note></section><section identifier="/us/state/tx/tac/t40/p20/c823/scC/s823.27"><num value="823.27">§823.27</num><heading>Ex Parte Communications</heading><content>(a) The hearing officer shall not participate in ex parte communications, directly or indirectly, in any matter in connection with any substantive issue, with any interested person or party. Likewise, no person shall attempt to engage in ex parte communications with the hearing officer on behalf of any interested person or party.(b) If the hearing officer receives any such ex parte communication, the other parties shall be given an opportunity to review that communication.(c) Nothing shall prevent the hearing officer from communicating with parties or their representatives about routine matters such as requests for continuances or opportunities to inspect the file.(d) The hearing officer may initiate communications with an impartial Agency employee who has not participated in a hearing or any determination in the case for the limited purpose of using the special skills or knowledge of the Agency and its staff in evaluating the evidence.</content><note type="source"><p>Source Note: The provisions of this §823.27 adopted to be effective November 26, 2007, 32 TexReg 8546.</p></note></section></subchapter><subchapter identifier="/us/state/tx/tac/t40/p20/c823/scD"><num value="D">SUBCHAPTER D</num><heading>AGENCY-LEVEL DECISIONS, REOPENINGS, AND REHEARINGS</heading><section identifier="/us/state/tx/tac/t40/p20/c823/scD/s823.30"><num value="823.30">§823.30</num><heading>Hearing Decision</heading><content>(a) Following the conclusion of the hearing, the hearing officer shall promptly issue a written decision on behalf of the Agency. Decisions issued on state-level complaints and grievances, or appeals of local-level complaints and grievances, made pursuant to provisions of WIOA, must be issued within 60 calendar days of the filing of the complaint, grievance or appeal, whichever comes later.(b) The Agency decision shall be based exclusively on the evidence of record in the hearing and on matters officially noticed in the hearing. The Agency decision shall include:(1) a list of the individuals who appeared at the hearing, including representatives and observers;(2) the findings of fact and conclusions of law reached on the issues; and(3) the affirmation, reversal, or modification of a determination or Board decision.(c) Unless a party files a timely motion for rehearing, the Agency may assume continuing jurisdiction to reconsider the issues on appeal, take additional evidence, and issue a corrected decision until the expiration of 14 calendar days from the mailing date of the hearing decision.</content><note type="source"><p>Source Note: The provisions of this §823.30 adopted to be effective November 26, 2007, 32 TexReg 8546; amended to be effective January 25, 2021, 46 TexReg 607.</p></note></section><section identifier="/us/state/tx/tac/t40/p20/c823/scD/s823.31"><num value="823.31">§823.31</num><heading>Petition for Reopening</heading><content>(a) If a party fails to appear for a hearing, the hearing officer may hear and record the evidence of the party present and the witnesses, if any, and shall proceed to decide the appeal on the basis of the record unless there appears to be good reason for continuing the hearing. A copy of the decision shall be promptly mailed to the parties with an explanation of the manner in which, and time within which, a request for reopening may be submitted.(b) A party that fails to appear at a hearing may, within 14 calendar days from the date the decision is mailed, petition in writing for a new hearing before the hearing officer. The petition should identity the party requesting the reopening and explain the reason for the failure to appear. The timeliness rules in §823.3 of this chapter (relating to Timeliness) apply to the petition. The petition shall be granted if it appears to the hearing officer that the petitioner has shown good cause for the petitioner's failure to appear at the hearing.(c) The hearing officer may schedule a hearing on whether to grant the reopening.(d) The hearing officer may deny the petition if no good cause is alleged for the party's nonappearance at the prior hearing.</content><note type="source"><p>Source Note: The provisions of this §823.31 adopted to be effective November 26, 2007, 32 TexReg 8546; amended to be effective January 25, 2021, 46 TexReg 607.</p></note></section><section identifier="/us/state/tx/tac/t40/p20/c823/scD/s823.32"><num value="823.32">§823.32</num><heading>Motion for Rehearing and Decision</heading><content>(a) A party has 14 calendar days from the date the decision is mailed to file a motion for rehearing. A rehearing may be granted only for the presentation of new evidence.(b) Motions for rehearing shall be in writing and allege the new evidence to be considered. The appellant must show a compelling reason why the evidence was not presented at the hearing and explain how consideration of the evidence would alter the outcome of the case.(c) If the hearing officer determines that the motion does not meet the criteria in subsection (b) of this section, the hearing officer may issue a decision indicating that they have not been met and that no hearing will be set on the motion.(d) If the hearing officer determines that the appellant has met the requirements of subsection (b) of this section, the hearing officer shall grant the motion and schedule a hearing to consider the new evidence on the record.(e) The hearing officer shall issue a written decision following the hearing to consider the evidence on the Motion for Rehearing.(f) After the hearing on the Motion for Rehearing, the hearing officer shall issue a written decision granting or denying the Motion for Rehearing and may affirm, reverse, leave in effect, void, or modify the prior decision.</content><note type="source"><p>Source Note: The provisions of this §823.32 adopted to be effective November 26, 2007, 32 TexReg 8546; amended to be effective January 25, 2021, 46 TexReg 607.</p></note></section><section identifier="/us/state/tx/tac/t40/p20/c823/scD/s823.33"><num value="823.33">§823.33</num><heading>Finality of Decision</heading><content>(a) The decision of the hearing officer is the final decision of the Agency after the expiration of 14 calendar days from the mailing date of the decision unless within that time:(1) a request for reopening is filed with the Agency;(2) a request for rehearing is filed with the Agency; or(3) the Agency assumes continuing jurisdiction to modify or correct a decision.(b) Any decision issued in response to a request for reopening or rehearing or a modification or correction issued by the Agency shall be final on the expiration of 14 calendar days from the mailing date of the decision, modification, or correction.</content><note type="source"><p>Source Note: The provisions of this §823.33 adopted to be effective November 26, 2007, 32 TexReg 8546.</p></note></section><section identifier="/us/state/tx/tac/t40/p20/c823/scD/s823.34"><num value="823.34">§823.34</num><heading>Federal Appeals</heading><content>(a) Participants and interested or affected parties have a right to appeal to the US Secretary of Labor when decisions are not issued within the time prescribed or when an adverse final Agency decision is issued.(b) The US Secretary of Labor will investigate appeals under the following circumstances:(1) A decision on a grievance or complaint has not been reached:(A) within 60 calendar days of receipt of the grievance or complaint; or(B) within 60 calendar days of receipt of the request for appeal of a local level grievance and either party appeals to the US Secretary of Labor; or(2) A state level decision on a grievance or complaint has been reached and the party to which such decision is adverse appeals to the US Secretary of Labor.(c) Participants and interested or affected parties that wish to appeal to the US Secretary of Labor must adhere to the following time parameters:(1) Appeals that are based on subsection (b)(1) of this section must be filed within 120 calendar days of filing the grievance or timely appeal with the state.(2) Appeals that are based upon subsection (b)(2) of this section must be filed within 60 calendar days of receipt of the state-level decision.(d) Appeals to the US Secretary of Labor must be submitted by certified mail with a return receipt requested. In addition to sending an appeal to the US Secretary of Labor, the party must also simultaneously provide a copy of the appeal to the opposing party and the US Department of Labor Employment and Training Administration regional administrator.(e) This federal appeals process applies solely to noncriminal grievances and complaints under WIOA, Title I.(f) This process does not apply to filing appeals regarding discrimination, or denial or termination of training provider eligibility, for inclusion on the Texas Eligible Training Provider List.</content><note type="source"><p>Source Note: The provisions of this §823.34 adopted to be effective January 25, 2021, 46 TexReg 607.</p></note></section></subchapter></chapter><chapter identifier="/us/state/tx/tac/t40/p20/c835"><num value="835">CHAPTER 835</num><heading>SELF-SUFFICIENCY FUND</heading><subchapter identifier="/us/state/tx/tac/t40/p20/c835/scA"><num value="A">SUBCHAPTER A</num><heading>GENERAL PROVISIONS REGARDING THE SELF-SUFFICIENCY FUND</heading><section identifier="/us/state/tx/tac/t40/p20/c835/scA/s835.1"><num value="835.1">§835.1</num><heading>Purpose and Goal</heading><content>(a) The purpose of the Self-Sufficiency Fund is to provide training for targeted employment opportunities for individuals who are identified as low-income, youth up to the age of 24 who are part of a low-income family, or individuals at risk of becoming dependent on public assistance.(b) The goal of the fund is to help individuals who have been identified as low-income, youth up to the age of 24 who are part of a low-income family, or individuals at risk of becoming dependent on public assistance to receive training leading to a job that allows them to become and remain independent of financial assistance provided under Texas Human Resources Code, Chapter 31.(c) Priority shall also be given to proposals containing evidence of established referral procedures or agreements with Board contractors, Workforce Solutions Offices, or other entities.(d) The goal of the Self-Sufficiency Fund may also be accomplished by providing funds for support services as necessary for participants to prepare for and participate in training activities and to make the transition from training activities to employment.</content><note type="source"><p>Source Note: The provisions of this §835.1 adopted to be effective January 7, 2003, 28 TexReg 357; amended to be effective September 12, 2022, 47 TexReg 5499.</p></note></section><section identifier="/us/state/tx/tac/t40/p20/c835/scA/s835.2"><num value="835.2">§835.2</num><heading>Definitions</heading><content>The following words and terms, when used in this chapter, shall have the following meanings, unless the context clearly indicates otherwise.(1) Business Partner--An individual, sole proprietorship, partnership, corporation, or association.(2) Community-based organization (CBO)--A private nonprofit organization that is representative of a community or a significant segment of a community and that provides education, vocational education or rehabilitation, job training, or internship services or programs. The term includes a neighborhood group or corporation, union-related organization, employer-related organization, faith-based organization, tribal government, or organization serving Native Americans. The CBO must be certified as a 501(c)(3) nonprofit organization under the IRS Code of 1986, as amended. A CBO providing services, which are regulated by the state, must provide evidence of required certification, license, or registration.(3) Executive director--The executive director of the Texas Workforce Commission.(4) Grant recipient--A public community or technical college, CBO, or state extension service awarded a grant from the Self-Sufficiency Fund.(5) Individual at risk of becoming dependent on public assistance--An individual who is a member of a Supplemental Nutrition Assistance Program (SNAP) benefits household with dependent children, a youth up to the age of 24 who is a part of a low-income family, or a parent, including a noncustodial parent, whose income does not exceed the income limit established by the Commission. To establish the income limit, the Commission will consider the Temporary Assistance for Needy Families (TANF) and SNAP income limits, and other relevant data, including economic indicators such as the state unemployment rate and inflation. The Commission may periodically review the income limit established and may update the level as necessary to reflect changes in the economic conditions in the state and the factors used to establish the income limit.(6) Low-income--An individual whose family:(A) receives any one of the following benefits:(i) TANF;(ii) SNAP;(iii) Children's Health Insurance Program; or(iv) income-based subsidized child care through the Child Care and Development Fund;(B) is eligible for or receives subsidized public housing assistance;(C) participates in:(i) the United States Department of Agriculture Food and Nutrition Service's Special Supplemental Nutrition Program for Women, Infants and Children program; or(ii) free or reduced-cost school lunch based on income;(D) is eligible for, or enrolled in, Workforce Innovation and Opportunity Act youth services; or(E) income does not exceed the income limit established by the Commission. To establish the income limit, the Commission will consider the TANF and SNAP income limits, and other relevant data, including economic indicators such as the state unemployment rate and inflation. The Commission may periodically review the income limit established and may update the level as necessary to reflect changes in the economic conditions in the state and the factors used to establish the income limit.(7) Participant--An individual who meets the eligibility criteria to engage in the Self-Sufficiency Fund's training program by being either low-income, at risk of becoming dependent on public assistance, or a youth up to the age of 24 who is a part of a low-income family.(8) Public community college--A state-funded two-year educational institution primarily serving its local taxing district and service area in Texas and offering vocational, technical, and academic courses for certification or associate degrees.(9) Public technical college--A state-funded coeducational institution of higher education offering courses of study in vocational and technical education, for certification or associate degrees.(10) Self-Sufficiency--Employment with wages reasonably calculated to make the employee independent of financial assistance under Texas Human Resources Code, Chapter 31.(11) State extension service--An education service that provides technical and vocational training and is sponsored by a higher education agency regulated by the Texas Higher Education Coordinating Board.(12) TANF recipient--An individual who receives financial assistance under Texas Human Resources Code, Chapter 31.(13) Trade union--An organization, agency, or employee committee, in which employees participate and which exists for the purpose of dealing with employers concerning grievances, labor disputes, wages, pay rates, employment hours, or work conditions.(14) Training provider--Any public community or technical college, CBO, or state extension service that provides training; or any individual, sole proprietorship, partnership, corporation, association, consortium, governmental subdivision, or public or private organization with whom a public community or technical college, CBO, or state extension service has subcontracted to provide training.</content><note type="source"><p>Source Note: The provisions of this §835.2 adopted to be effective January 7, 2003, 28 TexReg 357; amended to be effective September 29, 2003, 28 TexReg 8385; amended to be effective September 12, 2022, 47 TexReg 5499.</p></note></section><section identifier="/us/state/tx/tac/t40/p20/c835/scA/s835.3"><num value="835.3">§835.3</num><heading>Uses of the Fund</heading><content>(a) The Self-Sufficiency Fund may be used by a public community or technical college, CBO, or state extension service:(1) to develop training projects in which participants, as defined by §835.2(7) of this chapter, are provided job training by:(A) an entity that develops a job-training program under Texas Labor Code, §309.002;(B) a small- or medium-sized business or trade union; or(C) an informal partnership between an entity that develops a job-training program under this section and a small- or medium-sized business network; and(2) for support services, deemed reasonable and necessary by the Agency, for participants to prepare and participate in training activities and to make the transition from training activities to employment.(b) Only those support services specifically described in a contract under this section may be charged to a contract funded with Self-Sufficiency Fund monies.(c) The Self-Sufficiency Fund may not be used for the purchase of any proprietary or production equipment for the training project.</content><note type="source"><p>Source Note: The provisions of this §835.3 adopted to be effective January 7, 2003, 28 TexReg 357; amended to be effective September 12, 2022, 47 TexReg 5499.</p></note></section><section identifier="/us/state/tx/tac/t40/p20/c835/scA/s835.4"><num value="835.4">§835.4</num><heading>Waivers</heading><content>The Director may suspend or waive a section of this chapter, not statutorily imposed, in whole or in part, upon a showing of good cause and a finding that the public interest would be served by such a suspension or waiver. For purposes of this section, the Director, and not a designee of the Director, is the only person who may approve a waiver.</content><note type="source"><p>Source Note: The provisions of this §835.4 adopted to be effective January 7, 2003, 28 TexReg 357.</p></note></section></subchapter><subchapter identifier="/us/state/tx/tac/t40/p20/c835/scB"><num value="B">SUBCHAPTER B</num><heading>PROJECT ADMINISTRATION</heading><section identifier="/us/state/tx/tac/t40/p20/c835/scB/s835.11"><num value="835.11">§835.11</num><heading>Project Objectives</heading><content>The objectives of the Self-Sufficiency Fund are to:(1) provide training for targeted employment to allow individuals identified as low-income, youth up to the age of 24 who are part of a low-income family, or individuals at risk of becoming dependent on public assistance benefits to achieve self-sufficiency;(2) the extent practicable, provide Self-Sufficiency Fund services in all areas of the state;(3) develop projects that place individuals in a position of employment that is on a career pathway or in employment in local workforce development areas in which participants will earn wages sufficient to enable them to become independent of, or to avoid becoming dependent on, public assistance benefits;(4) collaborate with Board contractors, Workforce Solutions Offices, or other entities to establish referrals of eligible trainees;(5) develop projects that at the completion of training will result in employment benefits, including medical insurance, for training project participants;(6) develop projects that include contributions from other resources, including the business partners, that are supporting the training project; and(7) develop projects that at completion of the training will result in the greatest economic benefit to the public, in the form of enhanced occupational skills and positive economic impact within the local community.</content><note type="source"><p>Source Note: The provisions of this §835.11 adopted to be effective January 7, 2003, 28 TexReg 357; amended to be effective September 12, 2022, 47 TexReg 5499.</p></note></section><section identifier="/us/state/tx/tac/t40/p20/c835/scB/s835.12"><num value="835.12">§835.12</num><heading>Grant Administration</heading><content>(a) The Agency shall administer the Self-Sufficiency Fund.(1) The Director, or his or her designee who is knowledgeable in the administration of grants, shall be responsible for the distribution of money from the Fund.(2) The Director, or his or her designee, shall ensure that employers and training providers work together to propose training and employment for a specific number of trainees.(b) Proposals requesting funding for a project may be submitted from any area of the state. Proposals must be reasonable in scope and utilize all available resources, including private contributions as well as local, state and federal funds.</content><note type="source"><p>Source Note: The provisions of this §835.12 adopted to be effective January 7, 2003, 28 TexReg 357.</p></note></section><section identifier="/us/state/tx/tac/t40/p20/c835/scB/s835.13"><num value="835.13">§835.13</num><heading>Limitations on Awards</heading><content>The Agency may impose any or all of the following limitations on the funds awarded under any specific grant:(1) a limit of $500,000 for training projects;(2) a limit of 10 percent of the grant award for the allowable purchase of any nonproprietary equipment required for the training project; and(3) a limit of the grant award for administrative costs related to direct training needs, as defined in the grant contract.</content><note type="source"><p>Source Note: The provisions of this §835.13 adopted to be effective January 7, 2003, 28 TexReg 357; amended to be effective September 12, 2022, 47 TexReg 5499.</p></note></section><section identifier="/us/state/tx/tac/t40/p20/c835/scB/s835.14"><num value="835.14">§835.14</num><heading>Procedure for Requesting Funding</heading><content>(a) After obtaining the Board's review and comments in the applicable local workforce development areas, a public community or technical college, CBO, state extension service, or any other training provider, shall present to the executive director, or his or her designee, a joint proposal requesting funding for a project that meets Self-Sufficiency Fund objectives.(b) The proposal shall contain evidence of established referral procedures or agreements with Board contractors, Workforce Solutions Offices, or other entities for referral of eligible trainees.(c) Proposals shall be written and contain the following information:(1) The number of trainees to be trained and placed in related employment;(2) A summary of the proposed training project, including:(A) a description of how the applicant determined industry training needs;(B) skills to be taught;(C) strategies for successfully meeting the needs of eligible trainees; and(D) a list of the measurable training objectives and outcomes, including the industry-based certifications that trainees will receive upon completion;(3) A budget summary identifying all sources of funding for the project and specifying the amount requested from the Self-Sufficiency Fund;(4) A completed checklist of information on the training provider's financial management system;(5) Names of the entities that will provide support services to project participants and a description of the services they will provide, including an explanation of why the support services are necessary for the trainees, and a description of how the services provided will prepare the trainees for employment;(6) A description of how the proposed training will link participants to employers upon completion, including a career pathway with a timeline and wage data to show how the proposed training will enable participants to become independent or avoid becoming dependent on public assistance benefits; and(7) Any other factors unique to the circumstances of the project that should be considered.</content><note type="source"><p>Source Note: The provisions of this §835.14 adopted to be effective January 7, 2003, 28 TexReg 357; amended to be effective September 12, 2022, 47 TexReg 5499.</p></note></section><section identifier="/us/state/tx/tac/t40/p20/c835/scB/s835.15"><num value="835.15">§835.15</num><heading>Procedure for Evaluation</heading><content>(a) The Director's, or his or her designee's, evaluation of each proposal shall include consideration of the:(1) information contained in the written proposal;(2) project objectives and outcome measures as referenced in §835.11 of this subchapter;(3) prior experience and performance in the provision of direct training and education by the entity providing training and education services; and(4) verification of good standing for any required certification, license, or registration for training providers.(b) Priority shall be given to proposals which utilize all available resources, including private contributions as well as local, state and federal funds.(c) The Agency will notify the Board in the applicable local workforce development area(s) when the Agency is evaluating a proposal so as to inform the Board of potential workforce activities in the workforce area(s).(d) If the Agency determines that a proposal is appropriate for funding through the Self-Sufficiency Fund and funding is available, the Director, or his or her designee, may enter into a contract with the grant recipient.</content><note type="source"><p>Source Note: The provisions of this §835.15 adopted to be effective January 7, 2003, 28 TexReg 357.</p></note></section></subchapter><subchapter identifier="/us/state/tx/tac/t40/p20/c835/scC"><num value="C">SUBCHAPTER C</num><heading>PROJECT ADMINISTRATION AFTER AWARD OF CONTRACT</heading><section identifier="/us/state/tx/tac/t40/p20/c835/scC/s835.31"><num value="835.31">§835.31</num><heading>Grant Recipient's Responsibilities</heading><content>(a) The grant recipient shall serve as fiscal agent, shall administer the contract, and submit financial and performance reports to the Agency as specified in the contract.(b) The grant recipient shall maintain fiscal data needed for independent verification of expenditures of funds received for the training project for seven years after the termination of the contract.(c) All requests for contract amendments must be made in writing by the grant recipient. Contract amendments must be written and must be executed by the executive director, or his or her designee, before the implementation of a change to the contract.(d) The grant recipient shall cooperate with and comply with the Agency monitoring activities as required by Chapter 802, Subchapter D of this title.(e) The grant recipient shall submit all required reports in electronic format required by the Agency unless otherwise approved by the Agency.</content><note type="source"><p>Source Note: The provisions of this §835.31 adopted to be effective January 7, 2003, 28 TexReg 357; amended to be effective September 12, 2022, 47 TexReg 5499.</p></note></section><section identifier="/us/state/tx/tac/t40/p20/c835/scC/s835.32"><num value="835.32">§835.32</num><heading>Contract Completion Reports</heading><content>No later than 60 days following the end of the contract period for the customized job training project, the grant recipient shall provide the Agency with the following information:(1) a copy of any audit performed on the customized job training project;(2) the number of trainees placed in jobs, in which occupations they were placed, the wages for those occupations, and the number of trainees who have achieved self-sufficiency at the completion of the customized job training project;(3) a narrative report by the grant recipient summarizing the customized job training project results, which shall include documentation that the training objectives and outcomes specified in the contract have been achieved, and may include brief narratives by employers evaluating the customized job training project's effectiveness in meeting their needs;(4) a detailed accounting of the expenditure of funds received under the contract; and(5) the grant recipient shall provide the Agency one of the following:(A) payroll records and/or reports certified by an independent auditor or verified by the employer that provides the name, the social security number, the occupation, and the trainee's wage at the completion of the training; or(B) a statement from the employer that the wages at the time of job placement for each individual who successfully completes customized training is comparable to the wage for that occupation in the local labor market area.</content><note type="source"><p>Source Note: The provisions of this §835.32 adopted to be effective January 7, 2003, 28 TexReg 357.</p></note></section><section identifier="/us/state/tx/tac/t40/p20/c835/scC/s835.33"><num value="835.33">§835.33</num><heading>Contract Payment</heading><content>(a) Payment under a contract will be contingent upon the executive director's, or his or her designee's, determination that the project has met the training objectives, outcomes, and requirements specified in the contract.(b) The final payment of the grant amount will be withheld for 60 days after the completion of training and after receipt by the Agency of verification that the trainees are employed in jobs leading to self-sufficiency.(c) The executive director, or his or her designee, may allow an attrition rate, as specified in the contract, based on the total number of trainees.</content><note type="source"><p>Source Note: The provisions of this §835.33 adopted to be effective January 7, 2003, 28 TexReg 357; amended to be effective September 12, 2022, 47 TexReg 5499.</p></note></section><section identifier="/us/state/tx/tac/t40/p20/c835/scC/s835.34"><num value="835.34">§835.34</num><heading>Notice to Local Workforce Development Board</heading><content>The Agency will inform the Board in the applicable local workforce development area(s) when the Agency awards a grant from the Self-Sufficiency Fund that impacts the local workforce development area.</content><note type="source"><p>Source Note: The provisions of this §835.34 adopted to be effective January 7, 2003, 28 TexReg 357.</p></note></section></subchapter></chapter><chapter identifier="/us/state/tx/tac/t40/p20/c837"><num value="837">CHAPTER 837</num><heading>APPRENTICESHIP TRAINING PROGRAM</heading><subchapter identifier="/us/state/tx/tac/t40/p20/c837/scA"><num value="A">SUBCHAPTER A</num><heading>GENERAL PURPOSE AND DEFINITIONS</heading><section identifier="/us/state/tx/tac/t40/p20/c837/scA/s837.1"><num value="837.1">§837.1</num><heading>Scope and Purpose</heading><content>The purpose of these rules is to implement the provisions of Texas Education Code, Chapter 133, related to state-funded apprenticeship training programs. These rules may be cited as the apprenticeship training rules.</content><note type="source"><p>Source Note: The provisions of this §837.1 adopted to be effective January 26, 2005, 30 TexReg 277.</p></note></section><section identifier="/us/state/tx/tac/t40/p20/c837/scA/s837.2"><num value="837.2">§837.2</num><heading>Definitions</heading><content>In addition to the definitions contained in §800.2 of this title, and the definitions contained in Texas Education Code, §133.001 and 29 C.F.R. §29.2 relating to apprenticeship training, the following words and terms when used in this chapter shall have the following meanings, unless the context clearly indicates otherwise.(1) Administrator's Guide--The Administrator's Guide supplements this chapter by providing all required operational details and procedures for planning and submitting an application for apprenticeship training program funding, as well as the annual timeline for submission. The Administrator's Guide may be accessed on the Agency's website at www.texasworkforce.org.(2) Apprentice--A full-time paid worker, at least 16 years of age except where a higher minimum age standard is otherwise fixed by law, who is employed in the private sector, registered with the US Department of Labor (DOL) Office of Apprenticeship, and receives related instruction training to learn a skill in a certified apprenticeable occupation.(3) Apprenticeship committee--An autonomous local group consisting of members appointed by one or more employers of apprentices, or by one or more bargaining agents representing members of an apprenticeable trade, or by a combination of the two. An apprenticeship committee, approved by the DOL Office of Apprenticeship, operates independently as a designated sponsor for an apprenticeship training program to establish instruction standards and goals for a particular craft or crafts, interview and select applicants, and monitor the program and apprentices as described in Texas Education Code §133.003.(4) Apprenticeship training program--A training program that provides on-the-job training, preparatory instruction, supplementary instruction, or related instruction in a trade that has been certified as an apprenticeable occupation by the DOL Office of Apprenticeship. As required by Texas Education Code §133.002(c), an apprenticeship training program shall be under the direction of an apprenticeship committee. The program is a structured system of training designed to prepare individuals for occupations, including but not limited to those in skilled trades and crafts, by combining training under the supervision of an experienced journey worker with job-related classroom instruction.(5) Office of Apprenticeship--The DOL Office of Apprenticeship.(6) Contact-hour rate--A method used to distribute apprenticeship training funds to grant recipients. The total available funds are divided by the statewide total number of contact hours of apprenticeship training instruction classes submitted to the Agency.(7) Grant recipient--A recipient of the state-funded Apprenticeship Training Program that is an apprenticeship committee or a local education agency. Grant recipients must cooperate and comply with Agency monitoring activities as required by Chapter 802, Subchapter D, of this title (relating to Agency Monitoring Activities).(8) Local education agency--For purposes of Chapter 837, a public school district or state postsecondary institution, under Texas Education Code, Chapter 133, that serves as a sponsor for an apprenticeship training program pursuant to a contract between the local education agency and an apprenticeship committee.</content><note type="source"><p>Source Note: The provisions of this §837.2 adopted to be effective January 26, 2005, 30 TexReg 277; amended to be effective June 16, 2014, 39 TexReg 4664; amended to be effective April 23, 2018, 43 TexReg 2452.</p></note></section></subchapter><subchapter identifier="/us/state/tx/tac/t40/p20/c837/scB"><num value="B">SUBCHAPTER B</num><heading>FUNDING</heading><section identifier="/us/state/tx/tac/t40/p20/c837/scB/s837.21"><num value="837.21">§837.21</num><heading>Notice of Available Funds</heading><content>The Commission, following receipt of recommendation by the Texas Workforce Investment Council, shall provide public notice of the amount of funds that will be available to support apprenticeship training programs. The fiscal year for apprenticeship training programs begins on September 1 and ends on August 31 of each year.</content><note type="source"><p>Source Note: The provisions of this §837.21 adopted to be effective January 26, 2005, 30 TexReg 277.</p></note></section><section identifier="/us/state/tx/tac/t40/p20/c837/scB/s837.22"><num value="837.22">§837.22</num><heading>Eligible Applicants</heading><content>(a) Grant recipients are the entities eligible to apply to the Agency for apprenticeship training funding.(b) Approved grant recipients shall:(1) be the fiscal agents for the funds and are subject to the audit procedures set forth in Texas Education Code §133.005;(2) apply for funds for each apprenticeship training program, specifically for related classroom training, supplementary instruction, or preparatory instruction from only one of the following entities:(A) the Commission; or(B) the Texas Higher Education Coordinating Board.(c) Local education agencies that fund job-related classroom instruction for a registered apprenticeship training program shall contract with the local, independently operated apprenticeship committee.(d) Apprenticeship committees that fund job-related classroom instruction for a registered apprenticeship training program shall contract directly with the Agency.</content><note type="source"><p>Source Note: The provisions of this §837.22 adopted to be effective January 26, 2005, 30 TexReg 277; amended to be effective June 16, 2014, 39 TexReg 4664; amended to be effective April 23, 2018, 43 TexReg 2452.</p></note></section><section identifier="/us/state/tx/tac/t40/p20/c837/scB/s837.23"><num value="837.23">§837.23</num><heading>Local Workforce Development Board Review</heading><content>The grant recipient shall provide one copy of the application for apprenticeship training program funding to the Local Workforce Development Board (Board) for review and comment and one copy to the Agency. Boards may submit comments to the Agency and the grant recipient concurrently.</content><note type="source"><p>Source Note: The provisions of this §837.23 adopted to be effective January 26, 2005, 30 TexReg 277; amended to be effective April 23, 2018, 43 TexReg 2452.</p></note></section><section identifier="/us/state/tx/tac/t40/p20/c837/scB/s837.24"><num value="837.24">§837.24</num><heading>Funding Qualifications for Apprenticeship Training Programs</heading><content>(a) To qualify for funding, each apprenticeship training program shall be:(1) conducted by an independently operated apprenticeship committee; or(2) sponsored by a local education agency pursuant to a contract between the local education agency and an apprenticeship committee.(b) The apprenticeship training program must be certified and registered by the US Department of Labor (DOL) Office of Apprenticeship prior to the applicable fiscal year.(c) Each apprenticeship training program shall:(1) provide the local education agency with a validated copy of its written, national standards as approved by the DOL Office of Apprenticeship (or where national standards do not exist, individual program standards approved by the DOL Office of Apprenticeship); or(2) adhere to apprenticeship committee procedures for maintaining individual program standards as approved by the DOL Office of Apprenticeship.(d) A funded apprenticeship training program must comply with Commission rules and Texas Education Code, Chapter 133.</content><note type="source"><p>Source Note: The provisions of this §837.24 adopted to be effective January 26, 2005, 30 TexReg 277; amended to be effective June 16, 2014, 39 TexReg 4664; amended to be effective April 23, 2018, 43 TexReg 2452.</p></note></section><section identifier="/us/state/tx/tac/t40/p20/c837/scB/s837.25"><num value="837.25">§837.25</num><heading>Priority for Distributing Funds</heading><content>The purpose of the apprenticeship training funds is to supplement the costs of the job-related classroom instruction for eligible registered apprenticeship training programs. Funds for apprenticeship training classes are distributed based on the following priority, unless otherwise determined by the Commission:(1) related instruction, or "apprenticeship," classes that consist of organized, off-the-job instruction in theoretical or technical subjects required for the completion of an apprenticeship program for a particular apprenticeable trade;(2) supplementary instruction, or "journeyworker," classes that consist of instruction designed to provide new skills, or upgrade current skills, for persons employed as journeyworkers in apprenticeable trades; and(3) preparatory instruction classes that consist of instruction lasting six months or less that teach the basic skills required for an individual to comply with the terms of the individual's apprenticeship agreement.</content><note type="source"><p>Source Note: The provisions of this §837.25 adopted to be effective January 26, 2005, 30 TexReg 277.</p></note></section><section identifier="/us/state/tx/tac/t40/p20/c837/scB/s837.26"><num value="837.26">§837.26</num><heading>Funding Distribution Process</heading><content>(a) Funds are distributed to the eligible grant recipients by the Commission in a two-step process consisting of planning estimates and final distributions. Details of the annual distribution process, including the timeline, are set forth in the Administrator's Guide located on the Agency's website at www.texasworkforce.org.(b) Planning Estimates.(1) Each grant recipient shall report to the Agency the number of approved class hours, estimated number of registered apprentices, and estimated number of contact hours of job-related instruction classes for the prospective fiscal year. The estimated contact hours are determined by the number of registered apprentices anticipated to enroll in a class, multiplied by the number of approved hours that the class will be conducted during the year.(2) The estimated number of contact hours must be submitted by the grant recipient and received by the Agency on or before the respective due dates as annually prescribed by the Agency.(3) The Agency, after determining the preliminary contact-hour rate, shall notify each grant recipient of its planning estimates for the prospective fiscal year.(c) Final Distributions.(1) Each grant recipient shall report to the Agency the number of approved class hours, number of registered apprentices, and number of contact hours of job-related instruction classes for the fiscal year.(2) The approved number of contact hours must be submitted by the grant recipient and received by the Agency on or before the respective due dates as annually prescribed by the Agency.(3) The Agency, after determining the final contact-hour rate, shall notify each grant recipient of its final distribution based on the final contact-hour rate.</content><note type="source"><p>Source Note: The provisions of this §837.26 adopted to be effective January 26, 2005, 30 TexReg 277; amended to be effective April 23, 2018, 43 TexReg 2452.</p></note></section><section identifier="/us/state/tx/tac/t40/p20/c837/scB/s837.27"><num value="837.27">§837.27</num><heading>Administrative Costs Limitation</heading><content>Costs that are allowable, necessary, and reasonably incurred by a grant recipient to properly administer and manage the funds, such as salaries for grant recipient supervisors and administrative supplies, are considered administrative costs. Administrative costs may not exceed 15 percent of the total contract.</content><note type="source"><p>Source Note: The provisions of this §837.27 adopted to be effective January 26, 2005, 30 TexReg 277; amended to be effective April 23, 2018, 43 TexReg 2452.</p></note></section><section identifier="/us/state/tx/tac/t40/p20/c837/scB/s837.28"><num value="837.28">§837.28</num><heading>Performance</heading><content>The Commission may:(1) develop and adopt annual performance measures and targets for apprenticeship training programs; and(2) consider past performance of apprenticeship training programs in determining eligibility for funding.</content><note type="source"><p>Source Note: The provisions of this §837.28 adopted to be effective June 16, 2014, 39 TexReg 4664.</p></note></section></subchapter><subchapter identifier="/us/state/tx/tac/t40/p20/c837/scC"><num value="C">SUBCHAPTER C</num><heading>COMPLIANCE</heading><section identifier="/us/state/tx/tac/t40/p20/c837/scC/s837.41"><num value="837.41">§837.41</num><heading>Funds Management and Accountability</heading><content>Grant recipients shall comply with the applicable rules in Chapter 802 of this title, relating to the Integrity of the Texas Workforce System, specifically:(1) Subchapter D, relating to Agency Monitoring Activities;(2) Subchapter F, relating to Performance and Accountability;(3) Subchapter G, relating to Corrective Actions; and(4) Subchapter H, relating to Remedies.</content><note type="source"><p>Source Note: The provisions of this §837.41 adopted to be effective June 16, 2014, 39 TexReg 4664; amended to be effective April 23, 2018, 43 TexReg 2452.</p></note></section></subchapter></chapter><chapter identifier="/us/state/tx/tac/t40/p20/c838"><num value="838">CHAPTER 838</num><heading>TEXAS INDUSTRY-RECOGNIZED APPRENTICESHIP GRANT PROGRAM</heading><subchapter identifier="/us/state/tx/tac/t40/p20/c838/scA"><num value="A">SUBCHAPTER A</num><heading>GENERAL PURPOSE AND DEFINITIONS</heading><section identifier="/us/state/tx/tac/t40/p20/c838/scA/s838.1"><num value="838.1">§838.1</num><heading>Scope and Purpose</heading><content>(a) Purpose. The purpose of this chapter is to implement the provisions of Texas Labor Code, Chapter 302, related to the Texas Industry-Recognized Apprenticeship Programs Grant Program. These rules may be cited as the Texas Industry-Recognized Apprenticeship Grant Program fund rules.(b) Goal. The goal of the Texas Industry-Recognized Apprenticeship (TIRA) fund is to address Texas' immediate industrial workforce needs resulting from the impact of hurricanes, other natural disasters, and overall workforce shortages.</content><note type="source"><p>Source Note: The provisions of this §838.1 adopted to be effective December 28, 2020, 45 TexReg 9573; amended to be effective November 20, 2023, 48 TexReg 6746.</p></note></section><section identifier="/us/state/tx/tac/t40/p20/c838/scA/s838.2"><num value="838.2">§838.2</num><heading>Definitions</heading><content>The following words and terms, when used in this chapter, shall have the following meanings, unless the context clearly indicates otherwise.(1) Grant Recipient--An entity within Texas that is awarded TIRA funds by the Agency. Grant recipients must cooperate and comply with all contract requirements and Agency monitoring activities, as required by Chapter 802, Subchapter D of this title (relating to Agency Monitoring Activities).(2) Eligible Grant Applicant--An entity, as specified in state law, that is eligible to receive TIRA funding. Eligible grant applicants may include, but are not limited to, the following:(A) Trade and industry groups(B) Corporations(C) Nonprofit organizations(D) Educational institutions(E) Unions(F) Joint labor-management organizations(3) Texas Industry-Recognized Apprenticeship--A training program that:(A) provides on-the-job training, preparatory instruction, supplementary instruction, or related instruction:(i) in an occupation that has been recognized as an apprenticeable occupation; and(ii) under an industry-recognized and accredited training curriculum;(B) guarantees employment to participants during and upon successful completion of the training period;(C) pays each participant a progressive wage and provides eligibility for participants to receive full-time employee benefits during and upon successful completion of the training period, equal to or above the impacted local workforce development area's (workforce area) self-sufficiency wage;(D) requires participants to advance their skills, at a minimum, to a credentialed, performance-verified mid-level status in a field related to the TIRA;(E) has a duration of no longer than 26 weeks; and(F) gives preference to training and hiring:(i) unemployed Texans who have registered with the Agency;(ii) veterans of the United States armed forces;(iii) formerly incarcerated individuals; and(iv) underemployed individuals who are working without industry-recognized certifications or other credentials.(4) Participant--An individual training in a TIRA under an apprenticeship agreement who:(A) is a full-time paid worker, receiving benefits and employed in the private sector during training;(B) maintains suitable employment for at least 12 consecutive months immediately following completion of the training program; and(C) receives related instructional training to learn a skill in a certified apprenticeable occupation that advances his or her skills to a credentialed, performance-verified mid-level status in the occupation, as identified by the Agency.</content><note type="source"><p>Source Note: The provisions of this §838.2 adopted to be effective December 28, 2020, 45 TexReg 9573; amended to be effective November 20, 2023, 48 TexReg 6746.</p></note></section></subchapter><subchapter identifier="/us/state/tx/tac/t40/p20/c838/scB"><num value="B">SUBCHAPTER B</num><heading>GRANT PROGRAM</heading><section identifier="/us/state/tx/tac/t40/p20/c838/scB/s838.11"><num value="838.11">§838.11</num><heading>General Statement of Purpose</heading><content>In accordance with Texas Labor Code, Chapter 302, the Agency establishes the TIRA Grant Program, which shall be administered pursuant to Texas Labor Code, Chapter 302, and the rules in this chapter, to award grants from the TIRA fund to encourage the private sector to develop specialized TIRA programs in Texas that meet the requirements of Texas Labor Code §302.255.</content><note type="source"><p>Source Note: The provisions of this §838.11 adopted to be effective December 28, 2020, 45 TexReg 9573; amended to be effective November 20, 2023, 48 TexReg 6746.</p></note></section><section identifier="/us/state/tx/tac/t40/p20/c838/scB/s838.12"><num value="838.12">§838.12</num><heading>Notice of Grant Availability and Application</heading><content>(a) From time to time, the Agency may publish a Notice of Availability (NOA) of grant funds under this chapter. The notice shall be published on the Agency's website. In addition to the respective purpose for each grant program under this chapter, the notice may include:(1) the total amount of grant funds available for the award;(2) the geographical workforce areas that are eligible;(3) the specific industries or occupations targeted;(4) the maximum number of grants to be awarded;(5) the special populations to be served;(6) the application process and requirements; and(7) any other grant requirements necessary and appropriate for awarding grants in addition to those set forth in this chapter.(b) To be eligible for a grant award, an applicant meeting the eligibility criteria identified in the NOA shall submit an application to the Agency in the form and manner as prescribed in subsection (d) of this section.(1) The Agency's executive director, or designee, shall evaluate each application, considering the requirements and purpose of the NOA for which the application is submitted, the financial stability of the private sector employer, the regional economic impact, and any other factors the Agency determines appropriate.(2) If the Agency determines that an application is appropriate for funding, the executive director or designee shall enter into a contract with the grant recipient on behalf of the Agency.(3) Any applicants currently on corrective action pursuant to Chapter 802, Subchapter G of this title (relating to Corrective Actions), or not meeting any requirements of this chapter, shall not be eligible to receive a grant.(c) The Agency may request additional information at any time before the grant award in order to effectively evaluate any application.(d) Form and manner of application:(1) Applications shall be in writing and contain the following information:(A) The number of proposed jobs created, and retention plans to meet the requirements of §838.21(a)(1) of this chapter;(B) A brief outline of the proposed project, including the skills acquired through training and the employer's involvement in the planning and design;(C) A brief description of the measurable training objectives aligned with §838.22 of this chapter;(D) The occupation and wages for participants who complete the project as set forth in §838.22(3) of this chapter;(E) A budget summary, disclosing anticipated project costs and resource contributions, including the dollar amount the private partner is willing to commit to the project;(F) A signed agreement between all partners that outlines each entity's roles and responsibilities if a grant is awarded;(G) A statement explaining the basis for the determination by the TIRA that the application meets the requirements of the NOA applied for and identifying the targeted actual or projected labor shortages in the occupation in which the proposed training project will be provided;(H) A statement identifying that the proposed cost of training included in the application is consistent with costs recorded on the Eligible Training Provider List (ETPL), as defined in Chapter 840, Subchapter A of this title (relating to General Provisions), if the applicant's program(s) are included on the ETPL;(I) A statement describing the eligible applicant's equal employment opportunity policy;(J) A list of the proposed employment benefits;(K) A statement, supported by adequate documentation, establishing that the applicant's proposed training program is a TIRA as defined by §838.2(3) of this chapter; and(L) Any additional information contained in §838.13 of this chapter and deemed necessary by the Agency to complete an evaluation of an application.(2) Applications shall disclose other grant funds sought or awarded from the Agency or other state and federal sources for the project proposed in the application.(3) Applicants shall submit their application to the Agency's executive director or designee as specified in the NOA for which the applicant is applying.(4) An applicant may, with the approval of the executive director or designee, submit an application for funding that does not contain or identify all of the required elements under paragraph (1) of this subsection. The release of any funding is contingent upon the applicant's submission, and the Agency's approval, of all the required elements in this subsection.</content><note type="source"><p>Source Note: The provisions of this §838.12 adopted to be effective December 28, 2020, 45 TexReg 9573; amended to be effective November 20, 2023, 48 TexReg 6746.</p></note></section><section identifier="/us/state/tx/tac/t40/p20/c838/scB/s838.13"><num value="838.13">§838.13</num><heading>Eligible and Approved Applicants</heading><content>(a) Eligible applicants are the TIRA entities who submit a complete application demonstrating that the TIRA meets the criteria specified in the NOA for which the TIRA is applying.(b) Approved applicants must:(1) be the fiscal agents for the funds and are subject to the annual report procedures set forth in Texas Labor Code §302.258;(2) be in good standing under the laws of the state, as evidenced by a certificate issued by the secretary of state; and(3) not owe delinquent taxes to a taxing unit of Texas.</content><note type="source"><p>Source Note: The provisions of this §838.13 adopted to be effective December 28, 2020, 45 TexReg 9573; amended to be effective November 20, 2023, 48 TexReg 6746.</p></note></section><section identifier="/us/state/tx/tac/t40/p20/c838/scB/s838.14"><num value="838.14">§838.14</num><heading>Funding Qualifications for Texas Industry-Recognized Apprenticeship Grant Program</heading><content>To qualify for funding, each TIRA must:(1) meet the requirements listed in §838.13 of this chapter;(2) meet the definition prescribed in §838.2(3) of this chapter;(3) provide the Agency with a copy of its written training plan for validation; and(4) comply with Agency rules and Texas Labor Code, Chapter 302.</content><note type="source"><p>Source Note: The provisions of this §838.14 adopted to be effective December 28, 2020, 45 TexReg 9573; amended to be effective November 20, 2023, 48 TexReg 6746.</p></note></section></subchapter><subchapter identifier="/us/state/tx/tac/t40/p20/c838/scC"><num value="C">SUBCHAPTER C</num><heading>PROGRAM ADMINISTRATION</heading><section identifier="/us/state/tx/tac/t40/p20/c838/scC/s838.21"><num value="838.21">§838.21</num><heading>Texas Industry-Recognized Apprenticeship Grants</heading><content>(a) Grants received under this subchapter may be used to:(1) reimburse an eligible grant recipient for costs incurred while training a participant who:(A) completes a program operated by the grant recipient and achieves the required skill level set forth in Texas Labor Code §302.255(4)(D); and(B) maintains suitable employment for at least 12 consecutive months immediately following completion of the program;(2) be awarded on a TIRA-participant basis; and(3) not exceed the lesser of:(A) the total cost for training the participant, excluding wages and benefits; or(B) $10,000.(b) In awarding a grant under this subchapter, the Agency may consider:(1) the anticipated economic value to the state upon participants' program completion;(2) the increased tax revenue generated by participants' wages; and(3) the decrease in participants' use of state-funded benefits, attributable to the participants' job placements and earning projections.</content><note type="source"><p>Source Note: The provisions of this §838.21 adopted to be effective December 28, 2020, 45 TexReg 9573; amended to be effective November 20, 2023, 48 TexReg 6746.</p></note></section><section identifier="/us/state/tx/tac/t40/p20/c838/scC/s838.22"><num value="838.22">§838.22</num><heading>Program Objectives</heading><content>The following are the program objectives in administering the TIRA fund:(1) To ensure that funds from the program are spent in workforce areas that are impacted by hurricanes and other natural disasters and to respond to immediate workforce needs and overall workforce shortages;(2) To encourage the private sector to develop specialized apprenticeships in Texas;(3) To develop projects that, at completion of the training, will result in wages equal to or greater than the mid-level status of the apprenticeable occupation related to that TIRA; and(4) To promote advancing participant skills, at a minimum, to obtaining an industry credential in the related field of the TIRA.</content><note type="source"><p>Source Note: The provisions of this §838.22 adopted to be effective December 28, 2020, 45 TexReg 9573; amended to be effective November 20, 2023, 48 TexReg 6746.</p></note></section><section identifier="/us/state/tx/tac/t40/p20/c838/scC/s838.23"><num value="838.23">§838.23</num><heading>Administrative Costs Limitation</heading><content>Costs that are allowable, necessary, and reasonably incurred by a grant recipient to properly administer and manage the funds, such as salaries for grant recipient staff and administrative supplies, are considered administrative costs. Administrative costs may not exceed 10 percent of the total grant award.</content><note type="source"><p>Source Note: The provisions of this §838.23 adopted to be effective December 28, 2020, 45 TexReg 9573.</p></note></section><section identifier="/us/state/tx/tac/t40/p20/c838/scC/s838.24"><num value="838.24">§838.24</num><heading>Performance</heading><content>The Agency may:(1) develop and adopt annual performance measures and targets for TIRAs; and(2) consider past performance of TIRAs in determining eligibility for funding.</content><note type="source"><p>Source Note: The provisions of this §838.24 adopted to be effective December 28, 2020, 45 TexReg 9573; amended to be effective November 20, 2023, 48 TexReg 6746.</p></note></section></subchapter><subchapter identifier="/us/state/tx/tac/t40/p20/c838/scD"><num value="D">SUBCHAPTER D</num><heading>COMPLIANCE</heading><section identifier="/us/state/tx/tac/t40/p20/c838/scD/s838.31"><num value="838.31">§838.31</num><heading>Funds Management and Accountability</heading><content>Grant recipients shall comply with the applicable rules in Chapter 802 of this title (relating to Integrity of the Texas Workforce System), specifically:(1) Chapter 802, Subchapter D of this title (relating to Agency Monitoring Activities);(2) Chapter 802, Subchapter F of this title (relating to Performance and Accountability);(3) Chapter 802, Subchapter G of this title (relating to Corrective Actions); and(4) Chapter 802, Subchapter H of this title (relating to Remedies).</content><note type="source"><p>Source Note: The provisions of this §838.31 adopted to be effective December 28, 2020, 45 TexReg 9573.</p></note></section></subchapter></chapter><chapter identifier="/us/state/tx/tac/t40/p20/c839"><num value="839">CHAPTER 839</num><heading>APPRENTICESHIP PROGRAMS - ADDITIONAL</heading><subchapter identifier="/us/state/tx/tac/t40/p20/c839/scA"><num value="A">SUBCHAPTER A</num><heading>TAX REFUND PILOT PROGRAM FOR CERTAIN PERSONS WHO EMPLOY APPRENTICES</heading><section identifier="/us/state/tx/tac/t40/p20/c839/scA/s839.10"><num value="839.10">§839.10</num><heading>Purpose and Goal</heading><content>(a) The purpose of this subchapter is to establish rules for the Tax Refund Pilot Program in accordance with Texas Tax Code, §151.4292.(b) The goal of this subchapter is to implement a tax refund pilot program to provide a sales and use tax refund to certain persons who employ apprentices enrolled in a qualifying apprenticeship, as set forth in Texas Tax Code, §151.4292.</content><note type="source"><p>Source Note: The provisions of this §839.10 adopted to be effective October 3, 2022, 47 TexReg 6467.</p></note></section><section identifier="/us/state/tx/tac/t40/p20/c839/scA/s839.11"><num value="839.11">§839.11</num><heading>Definitions</heading><content>The following words and terms, when used in this subchapter, shall have the following meanings, unless the context clearly indicates otherwise.(1) Agency--The unit of state government established under Texas Labor Code, Chapter 301 that is presided over by the Commission and administered by the executive director to operate the integrated workforce development system and administer the unemployment compensation insurance program in this state as established under the Texas Unemployment Compensation Act, Texas Labor Code, Title 4, Subtitle A, as amended. The definition of "Agency" shall apply to all uses of the term in this subchapter.(2) Apprentice--A participant in a qualifying apprenticeship as defined in this section.(3) Commission--The body of governance of the Texas Workforce Commission composed of three members appointed by the governor as established under Texas Labor Code, §301.002 that includes one representative of labor, one representative of employers, and one representative of the public. The definition of Commission shall apply to all uses of the term in this subchapter.(4) Comptroller--The comptroller of public accounts of the State of Texas, as defined under Texas Government Code, Chapter 403.(5) Executive director--The individual appointed by the Commission to administer the daily operations of the Agency, which may include an individual delegated by the executive director to perform a specific function on behalf of the executive director.(6) Military spouse--A person who is married to a military service member, as defined under Texas Occupations Code, Chapter 55.(7) Military veteran--A person who has served on active duty and who was discharged or released from active duty, as defined under Texas Occupations Code, Chapter 55.(8) Non-metro area--Any area that is not included in a metropolitan statistical area designated by the United States Office of Management and Budget.(9) Person--A "person" is:(A) a resident of this state;(B) a business entity located in this state;(C) a governmental subdivision located in this state; or(D) a public or private organization located in this state that is not a state agency.(10) Qualifying apprenticeship--An apprenticeship training program registered with United States Department of Labor (DOL) and qualified to receive funding provided through the Agency as set forth in Texas Education Code, Chapter 133, or certified as an Industry-Recognized Apprenticeship Program (IRAP) by a Standards Recognition Entity.(11) Standards Recognition Entity--A third-party entity recognized by DOL as qualified to recognize apprenticeship programs as IRAPs.(12) Transitioning foster youth--A youth who has or is currently transitioning to independent living as described in Texas Family Code, §264.121.</content><note type="source"><p>Source Note: The provisions of this §839.11 adopted to be effective October 3, 2022, 47 TexReg 6467.</p></note></section><section identifier="/us/state/tx/tac/t40/p20/c839/scA/s839.12"><num value="839.12">§839.12</num><heading>Tax Refund Pilot Program Provisions</heading><content>(a) The Tax Refund Pilot Program for Certain Persons Who Employ Apprentices is jointly carried out by the comptroller, executive director, and the Agency.(b) The executive director shall provide certificates to eligible persons, in accordance with §§839.13 - 839.15 of this subchapter (relating to Eligibility for Persons Employing Apprentices; Application for Certification; and Certification of Eligibility). Such certificates must be included by eligible persons who apply for a tax refund with the comptroller in accordance with Texas Tax Code, §151.4292.(c) Subject to the limitations in subsection (d) of this section and §839.16(a) of this subchapter (relating to Limitations), the amount of the refund available to eligible persons in a calendar year in connection with each apprentice is $2,500.(d) The total amount an eligible person may be refunded through the Tax Refund Pilot Program in a calendar year shall be equal to the lesser of:(1) the amount of sales and use taxes paid by the person during the calendar year; or(2) the amount listed in subsection (c) of this section for each eligible apprentice employed.</content><note type="source"><p>Source Note: The provisions of this §839.12 adopted to be effective October 3, 2022, 47 TexReg 6467.</p></note></section><section identifier="/us/state/tx/tac/t40/p20/c839/scA/s839.13"><num value="839.13">§839.13</num><heading>Eligibility for Persons Employing Apprentices</heading><content>(a) A person may apply to the Agency for certification if the person employs at least one apprentice in a qualifying apprenticeship for not less than seven months in the calendar year.(b) A person shall not be determined eligible for certification by the executive director for any apprentice first employed prior to January 1, 2022.(c) An apprentice is not considered to be employed for purposes of this subchapter:(1) after the earlier of:(A) the fourth anniversary of employment in the position; or(B) the conclusion of the term of the qualifying apprenticeship position; or(2) if the apprentice was employed in another position by the employer immediately before beginning employment in the qualifying apprenticeship position.</content><note type="source"><p>Source Note: The provisions of this §839.13 adopted to be effective October 3, 2022, 47 TexReg 6467.</p></note></section><section identifier="/us/state/tx/tac/t40/p20/c839/scA/s839.14"><num value="839.14">§839.14</num><heading>Application for Certification</heading><content>(a) The Agency shall develop an application for certification under the Tax Refund Pilot Program.(b) The application shall include such information determined necessary by the executive director to certify eligible persons under this subchapter.(c) To be considered for certification under this subchapter by the executive director, eligible persons shall submit the application in such manner as required by the Agency.(d) Beginning in 2023, the Agency shall accept applications for certification from eligible persons employing apprentices between January 1 and December 31 of the previous calendar year. Only applications received between January 1 and March 31 each year shall be accepted by the Agency for the previous calendar year.</content><note type="source"><p>Source Note: The provisions of this §839.14 adopted to be effective October 3, 2022, 47 TexReg 6467.</p></note></section><section identifier="/us/state/tx/tac/t40/p20/c839/scA/s839.15"><num value="839.15">§839.15</num><heading>Certification of Eligibility</heading><content>(a) The executive director shall adopt merit-based criteria, described in subsection (b) of this section, for the selection of eligible persons. These criteria shall be used if more than 100 eligible applicants are received by the Agency in a calendar year.(b) When determining those persons who will be certified in a calendar year from a group larger than 100 applicants, the executive director shall give preference to applicants who:(1) offer qualifying apprenticeships in non-metro areas of this state; and(2) provide training and skills development in fields defined by the Agency as emerging or developing in Texas.(c) In addition to those criteria identified in subsection (b) of this section, the executive director may give preference to applicants who:(1) employ at least one apprentice who is included in one or more population identified in §839.16(a)(2)(A) - (D) of this subchapter (relating to Limitations); and(2) submit applications for apprentices who have not been previously certified under this section.(d) Applications received in accordance with §839.14 of this subchapter (relating to Application for Certification) will be reviewed beginning April 1 through May 31. Persons will be informed of certification or denial of eligibility in a manner determined by the Agency.(e) The executive director, or appropriate designated staff, shall issue a report to the comptroller each year on June 1 that identifies each person certified under this subchapter as eligible to apply for the tax refund described in §839.13 of this subchapter (relating to Eligibility for Persons Employing Apprentices). The report shall be delivered in a manner determined by the Agency.</content><note type="source"><p>Source Note: The provisions of this §839.15 adopted to be effective October 3, 2022, 47 TexReg 6467.</p></note></section><section identifier="/us/state/tx/tac/t40/p20/c839/scA/s839.16"><num value="839.16">§839.16</num><heading>Limitations</heading><content>(a) The maximum number of apprentices employed by a person who may be certified under this subchapter to apply to the comptroller for a tax refund in a calendar year is:(1) one; or(2) up to six apprentices, provided at least half of those individuals are:(A) transitioning foster youth;(B) military veterans;(C) military spouses; or(D) women.(b) The executive director may certify up to 100 persons in a calendar year.</content><note type="source"><p>Source Note: The provisions of this §839.16 adopted to be effective October 3, 2022, 47 TexReg 6467.</p></note></section><section identifier="/us/state/tx/tac/t40/p20/c839/scA/s839.17"><num value="839.17">§839.17</num><heading>Tax Refund Pilot Program Expiration</heading><content>Texas Tax Code, §151.4292, Tax Refund Pilot Program for Certain Persons Who Employ Apprentices, expires on December 31, 2026.</content><note type="source"><p>Source Note: The provisions of this §839.17 adopted to be effective October 3, 2022, 47 TexReg 6467.</p></note></section></subchapter><subchapter identifier="/us/state/tx/tac/t40/p20/c839/scB"><num value="B">SUBCHAPTER B</num><heading>GRANTS TO FACILITATE PARTICIPATION IN REGISTERED APPRENTICESHIP PROGRAMS BY CERTAIN VETERANS AND MILITARY PERSONNEL</heading><section identifier="/us/state/tx/tac/t40/p20/c839/scB/s839.20"><num value="839.20">§839.20</num><heading>Purpose and Goal</heading><content>(a) The purpose of this subchapter is to establish the grant program in Texas Labor Code, §302.00341, Grants to Facilitate Participation in Apprenticeship Training Programs by Certain Veterans and Military Personnel.(b) The goal of this subchapter is to establish a program to award grants to facilitate the participation of certain veterans and military personnel in apprenticeship training programs, as set forth in Texas Labor Code, §302.00341.</content><note type="source"><p>Source Note: The provisions of this §839.20 adopted to be effective October 3, 2022, 47 TexReg 6468.</p></note></section><section identifier="/us/state/tx/tac/t40/p20/c839/scB/s839.21"><num value="839.21">§839.21</num><heading>Definitions</heading><content>The following words and terms, when used in this subchapter, shall have the following meanings.(1) Active duty--As defined under Texas Occupations Code, Chapter 55, active duty means current full-time military service in the armed forces of the United States or active-duty military service as a member of the Texas military forces, as defined in Texas Government Code, §437.001, or similar military service of another state.(2) Agency--The unit of state government established under Texas Labor Code, Chapter 301 that is presided over by the Commission and administered by the executive director to operate the integrated workforce development system and administer the unemployment compensation insurance program in this state as established under the Texas Unemployment Compensation Act, Texas Labor Code, Title 4, Subtitle A, as amended. The definition of "Agency" shall apply to all uses of the term in this subchapter.(3) Assistance--Provision of services designed to promote continued participation in a registered apprenticeship program by military veterans or transitioning service members.(4) Commission--The body of governance of the Texas Workforce Commission composed of three members appointed by the governor as established under Texas Labor Code, §301.002, that includes one representative of labor, one representative of employers, and one representative of the public. The definition of Commission shall apply to all uses of the term in this subchapter.(5) Grant recipient--A nonprofit organization that is awarded funding under this subchapter.(6) Military veteran--An individual who has served on active duty and who was discharged or released from active duty, as defined under Texas Occupations Code, Chapter 55.(7) Nonprofit organization--An organization exempt from federal income taxation under Internal Revenue Code, §501(a), as an organization described by Internal Revenue Code, §501(c)(3).(8) Recruitment--Provision of services to promote enrollment in a registered apprenticeship program by military veterans or transitioning service members.(9) Registered apprenticeship program--A training program that provides on-the-job training, preparatory instruction, supplementary instruction, or related instruction in a trade that has been certified as an apprenticeable occupation by the United States Department of Labor Office of Apprenticeship, as defined under Texas Education Code, Chapter 133.(10) Transitioning service member (TSM)--An individual in active duty status (including separation leave) who is within 24 months of retirement or 12 months of separation from military service.</content><note type="source"><p>Source Note: The provisions of this §839.21 adopted to be effective October 3, 2022, 47 TexReg 6468.</p></note></section><section identifier="/us/state/tx/tac/t40/p20/c839/scB/s839.22"><num value="839.22">§839.22</num><heading>Grants to Facilitate Participation in Registered Apprenticeship Programs</heading><content>(a) The Commission may award grants to one or more nonprofit organizations that facilitate the participation in registered apprenticeship programs of military veterans and TSMs.(b) A nonprofit organization may apply to the Agency for a grant award under this subchapter. An application, developed by the Agency for the purpose of this subchapter, shall include such information necessary to determine eligibility for such award.(c) A grant awarded under this subchapter may only be used to recruit or assist veterans who have received an honorable discharge or a general discharge under honorable conditions and TSMs whose statement of service letter indicates an honorable discharge or a general discharge under honorable conditions to participate in a registered apprenticeship program in accordance with §839.23 of this subchapter (relating to Recruitment and Assistance Services).(d) A grant recipient shall provide such information determined by the Agency to be necessary to determine that the grant funds are used in compliance with subsection (c) of this section. Such information shall be provided in a manner and at a frequency determined by the Agency.(e) If funds awarded under this subchapter are not used in accordance with subsection (c) of this section, the grant recipient shall be required to repay any funds not used in accordance with subsection (c) of this section.</content><note type="source"><p>Source Note: The provisions of this §839.22 adopted to be effective October 3, 2022, 47 TexReg 6468.</p></note></section><section identifier="/us/state/tx/tac/t40/p20/c839/scB/s839.23"><num value="839.23">§839.23</num><heading>Recruitment and Assistance Services</heading><content>(a) A nonprofit organization that applies under §839.22(b) of this subchapter (relating to Grants to Facilitate Participation in Registered Apprenticeship Programs) shall include cost estimates for services included in this section.(b) A nonprofit organization shall provide actual costs and receipts for any services included in this section in accordance with §839.22(d) of this subchapter.(c) Recruitment services, specific to military veterans and TSMs, allowable under this subchapter, may include:(1) outreach materials and services, which may include flyers, web services, or other promotional services; or(2) other costs related to recruitment, if such costs are approved by the Agency prior to those costs being incurred.(d) Assistance services, provided to military veterans and TSMs, allowable under this subchapter, may include:(1) tuition payments for the education portion of registered apprenticeship programs;(2) mentoring services;(3) support services, as set forth in Texas Government Code, §2308.312(c)(6); or(4) other assistance services, if such costs are approved by the Agency prior to those costs being incurred.(e) Funds may be used for staffing costs only if:(1) staff time is dedicated to subsections (c) and (d) of this section; and(2) such costs do not exceed 15 percent of the total grant awarded under this subchapter.</content><note type="source"><p>Source Note: The provisions of this §839.23 adopted to be effective October 3, 2022, 47 TexReg 6468.</p></note></section></subchapter></chapter><chapter identifier="/us/state/tx/tac/t40/p20/c840"><num value="840">CHAPTER 840</num><heading>WIOA ELIGIBLE TRAINING PROVIDERS</heading><subchapter identifier="/us/state/tx/tac/t40/p20/c840/scA"><num value="A">SUBCHAPTER A</num><heading>GENERAL PROVISIONS</heading><section identifier="/us/state/tx/tac/t40/p20/c840/scA/s840.1"><num value="840.1">§840.1</num><heading>Short Title and Purpose</heading><content>(a) The rules contained in this chapter may be cited as the WIOA Eligible Training Provider (ETP) Rules.(b) The purpose of this chapter governing the provision of training services funded through the Agency is to interpret and implement the requirements of federal statutes and regulations to include:(1) the following sections of the Workforce Innovation and Opportunity Act (WIOA), PL 113-128:(A) Eligible Training Providers as described in WIOA §122;(B) contents of ETP performance reports as described in WIOA §116(d)(4);(C) data validation as described in WIOA §116(d)(5);(D) publication of performance reports as described in WIOA §116(d)(6)(B); and(E) training services for adults and dislocated workers as described in WIOA §134(c)(3);(2) 20 CFR Part 680, Subparts B - D, which describe training services, training providers, and individual training accounts;(3) 20 CFR §681.550, which allows the provision of training services to out-of-school youth, ages 16 to 24, through Individual Training Accounts (ITA); and(4) the Family Educational Rights and Privacy Act (described in 20 CFR 99) audit or evaluation exception to disclose Personally Identifiable Information (PII) from education records for WIOA performance accountability purposes. This authority is further clarified in joint guidance released by the US Department of Labor (DOL) and the US Department of Education (ED).(c) The rules contained in this chapter shall apply to the Agency, Local Workforce Development Boards (Boards), and providers of training services for WIOA Adults and Dislocated Workers. At the discretion of the Board, the Eligible Training Provider System (ETPS) may be applied to the delivery of training services funded through the Commission, including WIOA Youth Program out-of-school youth and in-school youth, Choices, Supplemental Nutrition Assistance Program - Employment and Training (SNAP E&T), and Trade Adjustment Assistance (TAA).</content><note type="source"><p>Source Note: The provisions of this §840.1 adopted to be effective January 4, 2021, 46 TexReg 195.</p></note></section><section identifier="/us/state/tx/tac/t40/p20/c840/scA/s840.2"><num value="840.2">§840.2</num><heading>Definitions</heading><content>The following words and terms, when used in this chapter, shall have the following meanings, unless the context clearly indicates otherwise.(1) Address of record--In addition to the mailing address contained in the application for approval, each provider shall establish an email address of record, with the format of the address to be "ProviderName.Director@xdomain." This email address of record must consistently include a minimum of two current recipients. Providers currently licensed with TWC's Career Schools and Colleges (CSC) program must use their CSC-approved email of record.(2) Agency--The unit of state government established under Texas Labor Code, Chapter 301, that is presided over by the Commission and administered by the executive director to operate the integrated workforce development system and administer the unemployment compensation insurance program in this state as established under the Texas Unemployment Compensation Act, Texas Labor Code Annotated, Title 4, Subtitle A, as amended. The definition of Agency shall apply to all uses of the term in this chapter.(3) Community-Based Organization--As defined in WIOA §3(10), a private nonprofit organization (which may include a faith-based organization), that is representative of a community or a significant segment of a community and that has demonstrated expertise and effectiveness in the field of workforce development.(4) Customized Training--As defined in WIOA §3(14), means training:(A) that is designed to meet the specific requirements of an employer (including a group of employers);(B) that is conducted with a commitment by the employer to employ an individual upon successful completion of the training; and(C) for which the employer pays:(i) a significant portion of the cost of training, as determined by the local Board, taking into account the size of the employer and such other factors that the local Board determines to be appropriate, which may include the number of employees participating in training, wage, and benefit levels of those employees (at present and anticipated upon completion of the training), relation of the training to the competitiveness of a participant, and other employer-provided training and advancement opportunities; and(ii) in the case of customized training (as defined in subparagraphs (A) and (B) of this paragraph) involving an employer located in multiple local areas in the state, a significant portion of the cost of the training, as determined by the Commission, taking into account the size of the employer and such other factors that the Commission determines to be appropriate.(5) Eligible Training Provider (ETP)--A training provider as defined by this chapter with one or more programs included on the statewide ETPL.(6) Eligible Training Provider List (ETPL)--The statewide list of ETPs that may receive funds through individual training accounts for training services at the discretion of Boards and as defined by this chapter.(7) Individual Training Account (ITA)--Payment agreement established by a local Board on behalf of a participant with a training provider. ITAs may be used only to pay for a training program included on the statewide ETPL, except where an out-of-state program is approved by the Board in accordance with §840.53 of this chapter (relating to Compliance Violations).(8) LWDA--Local Workforce Development Area (workforce area) designated by the governor as provided in Texas Government Code, §2308.252.(9) LWDB--Local Workforce Development Board (Board) created pursuant to Texas Government Code, §2308.253, and certified by the governor pursuant to Texas Government Code, §2308.261.(10) On-the-Job Training (OJT)--As defined by WIOA §3(44), a training by an employer that is provided to a paid participant while engaged in productive work in a job that:(A) provides knowledge or skills essential to the full and adequate performance of the job;(B) is made available through a program that provides the employer with partial reimbursement of the wage rate of the participant for the extraordinary costs of providing the training and additional supervision related to the training; and(C) is limited in duration as appropriate to the occupation for which the participant is being trained, taking into account the content of the training, the prior work experience of the participant, and the service strategy of the participant, as appropriate.(11) Target Occupations--As determined by LWDA, include:(A) occupations that:(i) are in-demand, as defined by WIOA §3(23);(ii) have a dedicated training component; and(iii) provide wages that meet self-sufficiency requirements in the LWDA; or(B) occupations that are included in career pathway leading to an occupation described in subparagraph (A) of this paragraph.(12) Training Provider--As set out in WIOA §122(a)(2), provides a program containing one or more training services, as defined by this chapter, and must be one of the following entities:(A) an institution of higher education that provides a program that leads to a recognized postsecondary credential;(B) an entity that carries out programs registered under the Act of August 16, 1937 (commonly known as the "National Apprenticeship Act"; 50 Stat. 664, Chapter 663; 29 USC §50 et seq.); or(C) another public or private provider of a program of training services, which may include:(i) community-based organizations;(ii) joint labor-management organizations; and(iii) eligible providers of adult education and literacy activities under WIOA Title II, if such activities are provided in combination with occupational skills training.(13) Training Services--As provided in WIOA §134(c)(3)(D), may include:(A) occupational skills training, including training for nontraditional employment;(B) OJT;(C) incumbent worker training;(D) programs that combine workplace training with related instruction, which may include cooperative education programs;(E) training programs operated by the private sector;(F) skill upgrading and retraining;(G) entrepreneurial training;(H) transitional jobs;(I) job readiness training provided in combination with any services described in subparagraphs (A) - (H) of this paragraph;(J) adult education and literacy activities, including activities of English language acquisition and integrated education and training programs, provided concurrently or in combination with any services described in subparagraphs (A) - (H) of this paragraph;(K) customized training conducted with a commitment by an employer or group of employers to employ an individual upon successful completion of the training.(14) WIOA--Workforce Innovation and Opportunity Act, PL 113 - 128, 29 USCA §3101, et seq., enacted July 22, 2014.</content><note type="source"><p>Source Note: The provisions of this §840.2 adopted to be effective January 4, 2021, 46 TexReg 195; amended to be effective July 18, 2022, 47 TexReg 4142.</p></note></section></subchapter><subchapter identifier="/us/state/tx/tac/t40/p20/c840/scB"><num value="B">SUBCHAPTER B</num><heading>TRAINING PROVIDER ELIGIBILITY</heading><section identifier="/us/state/tx/tac/t40/p20/c840/scB/s840.10"><num value="840.10">§840.10</num><heading>Appropriate Licensure</heading><content>(a) Training providers, as defined by this chapter, shall provide evidence of appropriate licensure or exemption from licensure or regulation in a manner determined by the Commission.(b) Institutions and agencies included in Texas Education Code, §61.003 shall be considered appropriately licensed for the purposes of this section.(c) Proprietary Schools in compliance with the requirements of Texas Education Code Chapter 132 shall be considered appropriately licensed for the purposes of this section.(d) Registered Apprenticeship Programs (RAPs) approved by the DOL are exempt from all requirements of this section. Industry Recognized Apprenticeship Programs (IRAPs) must comply with licensure and eligibility requirements described in this section.</content><note type="source"><p>Source Note: The provisions of this §840.10 adopted to be effective January 4, 2021, 46 TexReg 195.</p></note></section><section identifier="/us/state/tx/tac/t40/p20/c840/scB/s840.11"><num value="840.11">§840.11</num><heading>Eligibility of Training Providers</heading><content>(a) Training providers shall provide one or more training services, as defined in this chapter, to be considered eligible for the statewide ETPL.(b) Training providers shall submit information required by the Agency for determination of eligibility. This information shall be submitted in a manner determined by the Agency.(c) Boards and the Agency shall review information submitted by training providers in order to determine eligibility.</content><note type="source"><p>Source Note: The provisions of this §840.11 adopted to be effective January 4, 2021, 46 TexReg 195.</p></note></section></subchapter><subchapter identifier="/us/state/tx/tac/t40/p20/c840/scC"><num value="C">SUBCHAPTER C</num><heading>TRAINING PROGRAM ELIGIBILITY</heading><section identifier="/us/state/tx/tac/t40/p20/c840/scC/s840.20"><num value="840.20">§840.20</num><heading>Initial Eligibility Consideration</heading><content>(a) All training programs that have not previously been determined eligible for the statewide ETPL shall submit such eligibility criteria and performance information required by the Agency. This information shall be submitted in a manner determined by the Agency.(b) Eligibility criteria shall include:(1) a connection to statewide targeted occupations;(2) a partnership with businesses in Texas, in accordance with Agency guidance; and(3) other criteria required by the Commission.(c) Performance information shall include such requirements as determined necessary by the Agency.(d) The Agency may exempt a program from the performance information requirement for initial eligibility determination. Such exemption may be applied when a program has not been connected to any students or when such connection is of insufficient duration to calculate performance.(e) The Commission may determine minimum performance targets for initial eligibility for the statewide ETPL.(f) Boards and the Agency shall review program eligibility criteria and aggregated performance information submitted by training programs in order to determine eligibility.(g) Training programs determined eligible under this subchapter shall be approved for inclusion on the statewide ETPL for up to 12 months following approval by the Agency.(h) Following the initial eligibility period, training programs shall be subject to continued eligibility determination.</content><note type="source"><p>Source Note: The provisions of this §840.20 adopted to be effective January 4, 2021, 46 TexReg 195.</p></note></section><section identifier="/us/state/tx/tac/t40/p20/c840/scC/s840.21"><num value="840.21">§840.21</num><heading>Continued Eligibility Consideration</heading><content>(a) Training programs shall be subject to continued eligibility determination within 12 to 24 months following previous eligibility determination, as determined by the Agency.(b) The Agency shall use such information provided during the most recent annual performance reporting period, including provider and program eligibility and student performance outcomes, for continued eligibility consideration.(c) Eligibility criteria shall include:(1) such information required for Initial Eligibility determination;(2) such additional criteria included in 20 CFR §680.460; and(3) other criteria required by the Agency deemed necessary to determine a provider's eligibility.(d) Training programs shall submit, through annual reporting, required performance information, which shall include, but may not be limited to, the following:(1) Information on recognized postsecondary credentials received by participants; and(2) Such information required by and developed from annual reporting.(e) The Commission shall determine minimum performance targets for continued eligibility for the statewide ETPL. The Commission may review and adjust established minimum performance targets as determined necessary for the efficient operation of the program.(f) Boards and the Agency shall review aggregated performance information submitted by training programs to determine whether the information meets or exceeds the program eligibility criteria and shall notify providers of any adverse determination in accordance with Subchapter F of this chapter (relating to Adverse Actions).(g) Training programs determined eligible under this subchapter shall be approved for inclusion on the statewide ETPL for up to 24 months following approval by the Agency.</content><note type="source"><p>Source Note: The provisions of this §840.21 adopted to be effective January 4, 2021, 46 TexReg 195.</p></note></section><section identifier="/us/state/tx/tac/t40/p20/c840/scC/s840.22"><num value="840.22">§840.22</num><heading>Registered Apprenticeship Programs</heading><content>(a) DOL-approved RAPs shall submit the following information to the Agency for program inclusion on the statewide ETPL:(1) Name and address of the RAP sponsor;(2) Name and address of related technical instruction provider, if different from sponsor;(3) Cost of instruction, where instruction is not provided directly by sponsor;(4) Related occupations;(5) Method and length of instruction;(6) Number of active apprentices; and(7) Other information required by the Agency not expressly prohibited by DOL.(b) RAPs are exempt from all other requirements of this subchapter.(c) RAPs may voluntarily provide performance and other information to the Agency. Such information will be included on the statewide ETPL as appropriate.</content><note type="source"><p>Source Note: The provisions of this §840.22 adopted to be effective January 4, 2021, 46 TexReg 195.</p></note></section><section identifier="/us/state/tx/tac/t40/p20/c840/scC/s840.23"><num value="840.23">§840.23</num><heading>Additional Eligibility Requirements</heading><content>(a) The Commission may apply additional requirements to training programs for inclusion on the statewide ETPL.(b) Additional requirements developed under this subsection shall be applied to ETP programs during Initial or Continued Eligibility determinations.</content><note type="source"><p>Source Note: The provisions of this §840.23 adopted to be effective January 4, 2021, 46 TexReg 195.</p></note></section></subchapter><subchapter identifier="/us/state/tx/tac/t40/p20/c840/scD"><num value="D">SUBCHAPTER D</num><heading>ANNUAL REPORTING</heading><section identifier="/us/state/tx/tac/t40/p20/c840/scD/s840.30"><num value="840.30">§840.30</num><heading>Annual Performance Reporting Requirement</heading><content>(a) Each year, all training providers and programs included on the statewide ETPL shall submit all information determined necessary by the Agency. Such information shall include, at a minimum, student-level data for each program.(b) Required student-level data may include the following:(1) First name of student;(2) Last name of student;(3) Student's Social Security number (SSN), except where unavailable;(4) Student's first date of attendance;(5) Student's last date of attendance, when applicable;(6) Type of recognized credential earned and the date on which it was received, when applicable; and(7) Other information as determined by the Agency.(c) The Agency shall use student-level data submitted by providers to determine performance outcomes for provider programs. The student SSN shall be used to verify employment-related outcomes. Such performance outcomes shall include for WIOA participants and students in general:(1) Program completion rate;(2) Percentage in unsubsidized employment during the second quarter after exit from the program;(3) Percentage in unsubsidized employment during the fourth quarter after exit from the program;(4) Median earnings of those in unsubsidized employment during the second quarter after exit from the program;(5) Percentage obtaining a recognized postsecondary credential or high school equivalency during participation in or within one year after exit from the program; and(6) Other performance outcomes required by the Agency.</content><note type="source"><p>Source Note: The provisions of this §840.30 adopted to be effective January 4, 2021, 46 TexReg 195.</p></note></section><section identifier="/us/state/tx/tac/t40/p20/c840/scD/s840.31"><num value="840.31">§840.31</num><heading>Notification of Annual Reporting Requirement</heading><content>(a) The Agency shall determine the date and method of reporting.(b) Boards and training providers shall be notified of the annual reporting requirements not less than 30 days prior to the deadline set by the Agency.(c) The Agency shall determine the method of notification, which may include public release, formal guidance, address of record email notification, or other methods.(d) Providers are responsible for maintaining accurate contact information for locations and programs in order that the Agency may provide such notifications. This includes, but may not be limited to, email address of record.(e) Providers of training programs unable to report prior to the annual reporting deadline set by the Agency may request an extension or exemption from reporting caused by circumstances beyond the provider's control, which may include:(1) natural disaster or other state emergency;(2) unexpected personnel transitions;(3) unexpected technology-related issues; or(4) other circumstances determined acceptable by the Agency.(f) Providers shall request an extension for, or exemption from, annual performance reporting within 30 days of the occurrence reason--but no later than the required reporting date--for consideration by the Agency.(g) Failure to submit required information in accordance within Agency-determined time lines shall result in removal of affected training programs from the statewide ETPL for not less than two years (24 months).</content><note type="source"><p>Source Note: The provisions of this §840.31 adopted to be effective January 4, 2021, 46 TexReg 195.</p></note></section></subchapter><subchapter identifier="/us/state/tx/tac/t40/p20/c840/scE"><num value="E">SUBCHAPTER E</num><heading>STATEWIDE ELIGIBLE TRAINING PROVIDER LIST</heading><section identifier="/us/state/tx/tac/t40/p20/c840/scE/s840.40"><num value="840.40">§840.40</num><heading>Statewide ETPL</heading><content>(a) The statewide ETPL shall contain all eligible programs submitted by training providers, once approved, to provide services through ITAs to WIOA participants.(b) In order to provide usable information for WIOA participants, and students in general, the statewide ETPL shall contain such program information required by the Agency.(c) Performance information provided to the Agency on an eligible provider's programs shall be included with the statewide ETPL provided that such information does not reveal personally identifiable information of students.(d) The statewide ETPL shall include such RAPs approved by the Agency in accordance with this chapter.</content><note type="source"><p>Source Note: The provisions of this §840.40 adopted to be effective January 4, 2021, 46 TexReg 195.</p></note></section><section identifier="/us/state/tx/tac/t40/p20/c840/scE/s840.41"><num value="840.41">§840.41</num><heading>Distribution of the Statewide ETPL</heading><content>(a) The Agency shall make the statewide ETPL available to the public, secondary, and postsecondary educational systems and its other partners through the Agency's website.(b) Updates to the statewide ETPL will be published at a frequency determined by the Agency, but not less than monthly.(c) The Agency shall provide the statewide ETPL in a format accessible to individuals with disabilities.(d) Boards shall ensure that the statewide ETPL is locally available in a current and accessible format.(e) Boards shall make the statewide ETPL available to the following:(1) Local Workforce Solutions Offices and staff;(2) Local partners, including those providing training or related services;(3) Program participants; and(4) The public.(f) Boards shall ensure that the statewide ETPL is made available to WIOA program participants eligible for training even when local information is developed, in accordance with §840.61 of this chapter (relating to Individual Training Accounts).</content><note type="source"><p>Source Note: The provisions of this §840.41 adopted to be effective January 4, 2021, 46 TexReg 195.</p></note></section><section identifier="/us/state/tx/tac/t40/p20/c840/scE/s840.42"><num value="840.42">§840.42</num><heading>Removal from the Statewide ETPL</heading><content>(a) Voluntary Removal. Providers may request that a program be removed from the statewide ETPL. Such requests shall:(1) be submitted by a provider in a manner determined by the Agency; and(2) be processed in a manner determined by the Agency.(b) Programs voluntarily removed from the statewide ETPL may be redetermined for inclusion following such request from an eligible provider.(c) Removal for Cause. Providers and programs may be removed from the statewide ETPL in accordance with Subchapter F of this chapter (relating to Adverse Actions).(d) Programs involuntarily removed from the statewide ETPL may be redetermined for inclusion following the removal period included in Subchapter F of this chapter. At such time, programs shall submit such information required by the Commission to determine current eligibility for reentry on the statewide ETPL.(e) Removed programs that are provided reentry to the statewide ETPL will need to meet the continued eligibility requirements for purposes of eligibility determination and performance reporting.</content><note type="source"><p>Source Note: The provisions of this §840.42 adopted to be effective January 4, 2021, 46 TexReg 195.</p></note></section></subchapter><subchapter identifier="/us/state/tx/tac/t40/p20/c840/scF"><num value="F">SUBCHAPTER F</num><heading>ADVERSE ACTIONS</heading><section identifier="/us/state/tx/tac/t40/p20/c840/scF/s840.50"><num value="840.50">§840.50</num><heading>Eligibility Actions</heading><content>(a) Removal of a program for failure to meet eligibility criteria shall occur following the end of the initial or continued eligibility period for such program, except where otherwise described in this subchapter.(b) The Board or Agency may review or reverse previous decisions if the provider submits new information that may affect the eligibility of such programs.(c) RAPs shall be removed under this section only if such programs become deregistered under the National Apprenticeship Act.</content><note type="source"><p>Source Note: The provisions of this §840.50 adopted to be effective January 4, 2021, 46 TexReg 195.</p></note></section><section identifier="/us/state/tx/tac/t40/p20/c840/scF/s840.51"><num value="840.51">§840.51</num><heading>Reporting Actions</heading><content>(a) Failure to submit required annual reporting information, including performance outcomes, in accordance with Agency-determined timelines shall result in removal of affected programs from the statewide ETPL for not less than two years.(b) Failure to submit information for any individual program shall result in the removal of such program.(c) Removal shall occur following the end of the reporting period, as determined by the Agency.(d) Registered Apprenticeship Programs shall be exempt from actions taken under this section.</content><note type="source"><p>Source Note: The provisions of this §840.51 adopted to be effective January 4, 2021, 46 TexReg 195; amended to be effective July 18, 2022, 47 TexReg 4142.</p></note></section><section identifier="/us/state/tx/tac/t40/p20/c840/scF/s840.52"><num value="840.52">§840.52</num><heading>Performance Actions</heading><content>(a) Failure to meet or exceed any performance requirements set by the Commission may result in:(1) removal of a program from the statewide ETPL, for a period of time determined by the Agency; or(2) placement in a temporary performance improvement plan at the Agency's discretion.(b) Removal shall occur following the end of the reporting period or performance improvement plan, as determined by the Agency.(c) RAPs, including those voluntarily providing performance information to the Commission, shall be exempt from actions taken under this section.</content><note type="source"><p>Source Note: The provisions of this §840.52 adopted to be effective January 4, 2021, 46 TexReg 195.</p></note></section><section identifier="/us/state/tx/tac/t40/p20/c840/scF/s840.53"><num value="840.53">§840.53</num><heading>Compliance Violations</heading><content>(a) Training providers shall comply with all nondiscrimination protections included in WIOA §188.(b) Training providers shall designate the Agency as an authorized representative under the Family Educational Rights and Privacy Act regarding the disclosure of education records to be used for audit and/or evaluation purposes and for performance reporting and program evaluation under WIOA and in accordance with 34 Code of Federal Regulations, Part 99.(c) The Agency shall require providers to submit an acknowledgment of compliance requirements, addressed in subsections (a) and (b) of this section, at initial eligibility determination in electronic format, or by such other means determined by the Agency.(d) The Agency shall require providers to submit an acknowledgment of compliance requirements, addressed in subsections (a) and (b) of this section, during annual report submission in electronic format or by such other means determined by the Agency.(e) A local Board or the Agency may determine if a provider has violated any protection provided by WIOA §188. If such determination is made, the provider will be considered to have substantially violated the rules of this chapter.(f) Providers determined to have substantially violated the rules of this chapter shall have their programs removed from the statewide ETPL immediately. Removal for such violation shall be for not less than two years.(g) Providers that are no longer licensed in accordance with §840.10 of this chapter (relating to Appropriate Licensure) shall have their programs immediately removed from the statewide ETPL.(h) The Agency may require providers that have been determined to have violated the rules of this chapter to repay any funds provided under this chapter during the period of such violation.</content><note type="source"><p>Source Note: The provisions of this §840.53 adopted to be effective January 4, 2021, 46 TexReg 195; amended to be effective July 18, 2022 47 TexReg 4142.</p></note></section><section identifier="/us/state/tx/tac/t40/p20/c840/scF/s840.54"><num value="840.54">§840.54</num><heading>Continuation of Students in Removed Programs</heading><content>(a) Students enrolled in a program removed under this subchapter, except §840.53 of this subchapter (relating to Compliance Violations), shall be allowed to continue in training when the ITA was encumbered before such removal.(b) For programs removed under §840.53 of this subchapter, the Agency may require that students be discontinued following removal. Boards may place a student affected by program removal into a similar program, in accordance with local policies, when available.</content><note type="source"><p>Source Note: The provisions of this §840.54 adopted to be effective January 4, 2021, 46 TexReg 195; amended to be effective July 18, 2022, 47 TexReg 4142.</p></note></section><section identifier="/us/state/tx/tac/t40/p20/c840/scF/s840.55"><num value="840.55">§840.55</num><heading>Right of Appeal</heading><content>(a) Providers or programs, as defined by this chapter, shall have the right to appeal adverse actions included in this subchapter, in accordance with Chapter 823 of this title (relating to Integrated Complaints, Hearing, and Appeals).(b) Providers subject to removal as a result of any adverse action described in this chapter shall receive notice by the Agency of pending action and their rights to appeal such decision.</content><note type="source"><p>Source Note: The provisions of this §840.55 adopted to be effective January 4, 2021, 46 TexReg 195.</p></note></section></subchapter><subchapter identifier="/us/state/tx/tac/t40/p20/c840/scG"><num value="G">SUBCHAPTER G</num><heading>STATE AND LOCAL FLEXIBILITY</heading><section identifier="/us/state/tx/tac/t40/p20/c840/scG/s840.60"><num value="840.60">§840.60</num><heading>Determining Target Occupations</heading><content>(a) Annually, each Board shall adopt a list of target occupations in the LWDA.(b) In adopting the list of target occupations, the Board:(1) shall consider labor market information provided by the Agency; and(2) may consider additional local information which may include, but is not limited to:(A) information provided by businesses and business organizations;(B) information provided by workers and worker organizations; or(C) information provided by economic development or occupational organization partners.(c) The Agency shall maintain the target occupation lists for each LWDA, including any updates provided by Boards. The target occupation list from each Board shall be compiled into a single statewide target occupation list.</content><note type="source"><p>Source Note: The provisions of this §840.60 adopted to be effective January 4, 2021, 46 TexReg 195.</p></note></section><section identifier="/us/state/tx/tac/t40/p20/c840/scG/s840.61"><num value="840.61">§840.61</num><heading>Individual Training Accounts</heading><content>(a) A participant determined eligible for training may use an ITA to pay for the cost of training programs that are:(1) included on the statewide ETPL; or(2) locally approved out-of-state programs.(b) ITAs shall include only those costs required for successful completion of training programs, which are paid directly to providers of programs on the statewide ETPL or locally approved out-of-state programs.(c) All changes to a program, including any increase in program costs, must be included on the ETPL prior to issuance of an ITA.(d) Boards shall ensure that the ITA allowance does not exceed training costs listed on the ETPL for programs at the time of student enrollment.(e) Additional costs related to training programs may be paid using support services funds, in accordance with existing guidance.(f) Boards may apply additional criteria to training programs beyond those included in this chapter. Such additional criteria may include limitations on the:(1) cost of training programs; and(2) length of training programs.(g) Boards shall ensure that participants and training providers are informed that WIOA training funds are not available unless the Board has approved and issued an ITA to the training provider or eligible participant.</content><note type="source"><p>Source Note: The provisions of this §840.61 adopted to be effective January 4, 2021, 46 TexReg 195; amended to be effective July 18, 2022, 47 TexReg 4142.</p></note></section><section identifier="/us/state/tx/tac/t40/p20/c840/scG/s840.62"><num value="840.62">§840.62</num><heading>Training Contracts</heading><content>(a) Training contracts may be used to fund training programs, listed in this section, for participants instead of ITAs.(b) Boards shall provide participants with access to the statewide ETPL and training contracts as applicable to ensure consumer choice.(c) When the Local Plan describes the process to be used in selecting providers under such contract, a Board may contract with training programs under the following circumstances:(1) The training program is an OJT, customized training, incumbent worker training, or transitional jobs training; or(2) The Board determines that:(A) there is an insufficient number of ETPs in the workforce area to accomplish the purposes of a system of ITAs;(B) there is a training program with demonstrated effectiveness offered in Board area by a community-based organization or other private organization to serve individuals with barriers to employment;(C) it would be most appropriate to award a contract to an institution of higher education or other provider of training services to facilitate the training of multiple individuals in one or more in-demand industry sectors or occupations; or(D) the Board enters into a pay-for-performance contract for training services.(3) When funded through contracts, training programs listed in subsection (b) of this section shall be considered exempt from the information and performance requirements required by this chapter.(4) Training programs listed in this subchapter that request access to the statewide ETPL must comply with licensure and eligibility requirements described in this chapter for such inclusion.</content><note type="source"><p>Source Note: The provisions of this §840.62 adopted to be effective January 4, 2021, 46 TexReg 195.</p></note></section><section identifier="/us/state/tx/tac/t40/p20/c840/scG/s840.63"><num value="840.63">§840.63</num><heading>Local Training Program Information</heading><content>(a) Boards may develop and maintain supplementary information for local programs eligible for Board ITA funds.(b) The following programs may be included:(1) Any programs included on the statewide ETPL; and(2) Out-of-state programs, in accordance with §840.64 of this subchapter (relating to Out-of-State Training Programs).(c) Such local information shall:(1) not limit consumer choice;(2) not restrict participant access to RAPs included on the statewide ETPL; and(3) be provided to participants and the public in addition to the statewide ETPL, in accordance with §840.41 of this chapter (relating to Distribution of the Statewide ETPL).</content><note type="source"><p>Source Note: The provisions of this §840.63 adopted to be effective January 4, 2021, 46 TexReg 195.</p></note></section><section identifier="/us/state/tx/tac/t40/p20/c840/scG/s840.64"><num value="840.64">§840.64</num><heading>Out-of-State Training Programs</heading><content>(a) The Agency shall not include out-of-state providers without any physical training locations in Texas on the statewide ETPL.(b) The Agency may allow Boards to fund out-of-state programs through ITAs when the following conditions are met:(1) The training program is included on an ETPL in another state or US territory at the time of student enrollment;(2) The training program is aligned with a local target occupation, or target occupation in an area to which the participant is willing to commute or relocate, provided that such location is in Texas;(3) The training program provides performance information, in such a manner as determined by the Agency, that demonstrates the program meets or exceeds any Commission-established minimum performance standards;(4) The training program has an existing partnership with a local employer in the workforce area, as documented by a letter of support or existence of an employer advisory committee;(5) The Board has submitted such required information for the out-of-state program in such manner determined by the Agency;(6) The Agency executive director has reviewed and approved the out-of-state program for ITA eligibility;(7) The out-of-state provider and related programs meet ETP eligibility requirements in accordance with Subchapter B of this chapter (relating to Training Provider Eligibility);(8) Other conditions as required by the Agency; and(9) Board policy exists that sufficiently addresses such requirements described in this section.(c) A Board may fund out-of-state training programs through training contracts in accordance with §840.61 of this subchapter (relating to Individual Training Accounts).</content><note type="source"><p>Source Note: The provisions of this §840.64 adopted to be effective January 4, 2021, 46 TexReg 195.</p></note></section></subchapter></chapter><chapter identifier="/us/state/tx/tac/t40/p20/c842"><num value="842">CHAPTER 842</num><heading>WIOA NONDISCRIMINATION AND EQUAL OPPORTUNITY</heading><subchapter identifier="/us/state/tx/tac/t40/p20/c842/scA"><num value="A">SUBCHAPTER A</num><heading>WIOA NONDISCRIMINATION AND EQUAL OPPORTUNITY</heading><section identifier="/us/state/tx/tac/t40/p20/c842/scA/s842.1"><num value="842.1">§842.1</num><heading>Scope and Purpose</heading><content>All recipients of Workforce Innovation and Opportunity Act (WIOA) funds received under a contract with the Agency are responsible for meeting the nondiscrimination and equal opportunity requirements included in WIOA §188 (29 USCA §3248), 29 CFR Part 38, the Agency's Nondiscrimination Plan (NDP), and this chapter. WIOA recipients are prohibited from discriminating on the basis of race, color, religion, sex, national origin, age, disability, political affiliation or belief, and, for beneficiaries only, citizenship or participation in a WIOA Title I financially assisted activity.</content><note type="source"><p>Source Note: The provisions of this §842.1 adopted to be effective January 4, 2021, 46 TexReg 202.</p></note></section><section identifier="/us/state/tx/tac/t40/p20/c842/scA/s842.2"><num value="842.2">§842.2</num><heading>Definitions</heading><content>The following words and terms when used in this subchapter, shall have the following meanings, unless the context clearly indicates otherwise.(1) Babel notice--As defined by 29 CFR §38.4(i), a short notice included in a document or electronic medium (for example, website, app, email) in multiple languages informing the reader that the communication contains vital information and explaining how to access language services to have the contents of the communication provided in other languages.(2) Beneficiary--An individual or individuals intended by Congress to receive aid, benefits, services, or training from a recipient.(3) Complainant--An individual alleging a violation of WIOA §188 (29 USCA §3248) or 29 CFR Part 38.(4) CRC--The Civil Rights Center of the US Department of Labor (DOL).(5) EO Officer--The individual responsible for coordinating a recipient's responsibilities under the nondiscrimination and equal opportunity provisions of WIOA §188 (29 USCA §3248) and 29 CFR Part 38.(6) NDP--The Nondiscrimination Plan developed by the Agency and described in 29 CFR Part 38.(7) Recipient--Any entity to which financial assistance under WIOA Title I is extended directly from DOL, through the governor or through another recipient (including any successor, assignee, or transferee of a recipient), but excluding the ultimate beneficiaries of the WIOA Title I--funded services or activities. The term "recipient" includes, but is not limited to, Boards; workforce area grant recipients; one-stop operators; service providers, including eligible training providers; and employers that provide on-the-job training. One-stop partners (Workforce Solutions Office partners) are also considered recipients to the extent that they participate in the one-stop delivery system. A complete definition of "recipient" can be found in 29 CFR §38.4(zz). When used in this subchapter, the term "recipient" does not include the Commission or Agency.(8) Respondent--A grant applicant or recipient (including the governor) against which a complaint has been filed under the nondiscrimination and equal opportunity provisions of WIOA §188 (29 USCA §3248) or 29 CFR Part 38.(9) Service provider--As defined in 29 CFR §38.4, any operator or provider of WIOA aid, benefits, services, or training when used in this subchapter, does not include one-stop operators.(10) Small recipient--A recipient that serves a total of fewer than 15 beneficiaries during the entire grant year and employs fewer than 15 employees on any given day during the grant year.</content><note type="source"><p>Source Note: The provisions of this §842.2 adopted to be effective January 4, 2021, 46 TexReg 202.</p></note></section><section identifier="/us/state/tx/tac/t40/p20/c842/scA/s842.3"><num value="842.3">§842.3</num><heading>Assurances</heading><content>(a) Recipients shall comply with the assurances requirements of 29 CFR §§38.25 - 38.27. All applications for financial assistance under Title I of WIOA shall include the assurances required by 29 CFR §38.25. Recipients shall ensure that all contracts, agreements, grants, cooperative agreements, or other arrangements under which WIOA Title I funds are available shall include or incorporate by reference the assurances contained in 29 CFR §38.25.(b) Recipients shall include in any instrument effecting or recording a transfer of property acquired or improved under a WIOA Title I program the covenant required by 29 CFR §38.27 assuring nondiscrimination and equal opportunity.</content><note type="source"><p>Source Note: The provisions of this §842.3 adopted to be effective January 4, 2021, 46 TexReg 202.</p></note></section><section identifier="/us/state/tx/tac/t40/p20/c842/scA/s842.4"><num value="842.4">§842.4</num><heading>EO Officers</heading><content>(a) Each recipient, except small recipients and service providers, shall designate a senior-level employee (29 CFR §38.29) to act as EO Officer and to report directly to the recipient's administrative officer. The recipient's executive director shall not be designated as the recipient's EO Officer.(b) Each recipient's EO Officer shall:(1) serve as the recipient's liaison with the State-Level EO Officer; the Board EO Officer, if appropriate; and the CRC, if necessary;(2) conduct annual monitoring and investigate the recipient's WIOA Title I--funded subrecipients to ensure that the recipient and its subrecipients are not violating nondiscrimination and equal opportunity provisions of WIOA §188 (29 USCA §3248), 29 CFR Part 38, and the state NDP;(3) review the recipient's written policies to ensure that those policies are nondiscriminatory;(4) coordinate the recipient's compliance activities under WIOA §188 (29 USCA §3248) and 29 CFR Part 38;(5) assist complainants in completing complaint forms;(6) be responsible for accepting discrimination complaints, and forwarding such complaints to the Agency or other jurisdictional entity;(7) conduct outreach and education about equal opportunity and nondiscrimination requirements; and(8) undergo, at the recipient's expense, nondiscrimination and equal opportunity training to maintain competency when such training is required by CRC or the Agency.(c) Each recipient shall provide to the State-Level EO Officer the name, position title, address, and telephone number of the individual appointed as the recipient's EO Officer, as well as the job description of the position detailing the EO Officer's responsibilities and the staff and resources available.(d) Although small recipients are not required to designate EO Officers who have the full range of responsibilities, each small recipient must designate an individual who will be responsible for developing and publishing complaint procedures and processing complaints as required by 29 CFR §§38.69 - 38.76.</content><note type="source"><p>Source Note: The provisions of this §842.4 adopted to be effective January 4, 2021, 46 TexReg 202.</p></note></section><section identifier="/us/state/tx/tac/t40/p20/c842/scA/s842.5"><num value="842.5">§842.5</num><heading>Notice and Communication</heading><content>(a) Each recipient shall comply with the notice and communication requirements of 29 CFR §§38.34 - 38.40.(b) The notice required by 29 CFR §38.35 shall be made available to each participant and made part of each participant's file. A copy of an acknowledgment of receipt of notice, in a format determined by the State-Level Agency EO Officer and signed by the participant, must be maintained in each participant's file. This information must be communicated in appropriate languages as required by 29 CFR §38.9 and in formats accessible for individuals with disabilities as required in 29 CFR §38.15.(c) The notice shall be posted prominently, in reasonable numbers and places, in physical locations and on the recipient's website.(d) Each recipient shall comply with the tagline requirements of 29 CFR §38.38 for recruitment brochures and other materials as described in 29 CFR §38.38.(e) When communicating vital information to participants, recipients must incorporate a Babel notice into the communication as required by 29 CFR §38.9(g)(3). The notice must indicate in appropriate languages that language assistance is available free of charge.(f) For information and services accessed electronically, each recipient shall establish a procedure that ensures that the notice requirements of 29 CFR Part 38 are met.(g) Each Board shall ensure compliance with and dissemination of information regarding the requirements of 29 CFR Part 38 by assuring that training regarding the nondiscrimination and equal opportunity requirements of WIOA is provided to the Board, the operator of the Workforce Solutions Office, other workforce area recipients, and recipients' staffs.</content><note type="source"><p>Source Note: The provisions of this §842.5 adopted to be effective January 4, 2021, 46 TexReg 202.</p></note></section><section identifier="/us/state/tx/tac/t40/p20/c842/scA/s842.6"><num value="842.6">§842.6</num><heading>Data and Information Collection and Maintenance</heading><content>(a) Each recipient shall collect such data and maintain such records, in accordance with the requirements of 29 CFR §§38.41 - 38.45 and the procedures prescribed by the Director of CRC, as the Director finds necessary to determine whether the recipient has complied or is complying with the nondiscrimination and equal opportunity provisions of WIOA and 29 CFR Part 38.(b) Each recipient shall permit access by the Agency or its designated agent during normal business hours to its premises and to its employees and participants for the purpose of conducting complaint investigations, compliance reviews, and monitoring activities, and for inspecting and copying such books, records, accounts, and other materials as may be pertinent to ascertain compliance with and ensure enforcement of the nondiscrimination and equal opportunity provisions of WIOA.(c) Each recipient shall notify the State-Level EO Officer within five business days of receipt of any complaint, administrative enforcement action, or lawsuit filed against the recipient alleging discrimination on the ground of race, color, religion, sex, national origin, age, disability, political affiliation or belief, and, for WIOA beneficiaries only, citizenship or participation in a WIOA Title I financially assisted program or activity. This notification shall include:(1) the names of the parties to the complaint, action, or lawsuit;(2) the forum in which each case was filed; and(3) the relevant case numbers or, if applicable, other identifying information.(d) A recipient that is also a subrecipient of a Board shall provide the Board with the same notice described in subsection (c) of this section.(e) To enable the Agency to effectively monitor recipients' efforts to provide equal access to WIOA Title I-assisted programs as provided in 29 CFR §38.41, all recipient requests for proposals, proposals, and contracts shall contain information regarding the proposed levels of service to different sexes, various racial and ethnic groups, individuals with disabilities, and individuals in differing age groups.</content><note type="source"><p>Source Note: The provisions of this §842.6 adopted to be effective January 4, 2021, 46 TexReg 202.</p></note></section><section identifier="/us/state/tx/tac/t40/p20/c842/scA/s842.7"><num value="842.7">§842.7</num><heading>Affirmative Outreach</heading><content>As required in 29 CFR §38.40, recipients shall take appropriate steps to ensure that they are providing equal access to WIOA Title I financially assisted programs and activities. These steps must involve reasonable efforts to include the various groups protected by these regulations, including, but not limited to, different sexes, various racial and ethnic/national origin groups, various religions, individuals with limited English proficiency, individuals with disabilities, and individuals in differing age groups. Such efforts may include, but are not limited to:(1) advertising the recipient's programs and/or activities in media, such as newspapers or radio programs, that specifically target various populations;(2) sending notices about openings in the recipient's programs and/or activities to schools or community service groups that serve various populations; and(3) consulting with appropriate community service groups about ways in which the recipient may improve its outreach and service to various populations.</content><note type="source"><p>Source Note: The provisions of this §842.7 adopted to be effective January 4, 2021, 46 TexReg 202.</p></note></section><section identifier="/us/state/tx/tac/t40/p20/c842/scA/s842.8"><num value="842.8">§842.8</num><heading>Filing Complaints of Discrimination</heading><content>(a) Any individual who believes that they or any specific class of individuals have been or is being subjected to discrimination prohibited by WIOA or 29 CFR Part 38 may file a written complaint, either alone or through a representative.(b) A complainant may file a complaint with:(1) the local Board EO Officer;(2) the State-Level EO Officer at: Texas Workforce Commission, 101 E. 15th Street, Room 504, Austin, Texas 78778; or(3) the Director of the Civil Rights Center at: US Department of Labor, 200 Constitution Ave. NW, Room N-4123, Washington, DC 20210, or the address listed in 29 CFR Part 38.(c) Complaints shall be filed within 180 calendar days of the alleged violation unless such time limitation is waived by the Director of CRC for good cause shown.(d) All complaints shall be submitted in writing, either electronically or in hard copy. A complainant may file a complaint by:(1) completing and submitting a CRC Complaint Information and Privacy Act Consent Form;(2) completing and submitting a Texas Workforce Commission Discrimination Complaint form; or(3) submitting a written document containing the information required by 29 CFR §38.70, which includes:(A) the complainant's name and address, or other means of contacting the complainant;(B) the identity of the respondent;(C) a description of the complainant's allegations with sufficient detail to allow the EO Officer to determine whether the Board or the Agency has jurisdiction, whether the complaint was filed on time, and whether the complaint has apparent merit; and(D) the complainant's signature or the signature of the complainant's representative.(e) Both the complainant and the respondent have the right to representation by an attorney or other individual of his or her choice. The Agency shall not be responsible for any costs incurred by either the complainant or the respondent in obtaining representation.(f) For the purposes of this subchapter, filing with the Agency shall be deemed to have occurred on the date that the written notice is received by the Agency.</content><note type="source"><p>Source Note: The provisions of this §842.8 adopted to be effective January 4, 2021, 46 TexReg 202.</p></note></section><section identifier="/us/state/tx/tac/t40/p20/c842/scA/s842.9"><num value="842.9">§842.9</num><heading>Notice of Receipt of Complaint of Discrimination</heading><content>The receiving EO Officer shall issue a written acknowledgment of receipt of a complaint alleging discrimination by a WIOA recipient and shall include a notice of the complainant's right to representation in the complaint process.</content><note type="source"><p>Source Note: The provisions of this §842.9 adopted to be effective January 4, 2021, 46 TexReg 202.</p></note></section><section identifier="/us/state/tx/tac/t40/p20/c842/scA/s842.10"><num value="842.10">§842.10</num><heading>Jurisdiction of Complaints of Discrimination</heading><content>(a) The EO Officer shall accept and investigate only those discrimination complaints alleging a violation of WIOA §188 (29 USCA §3248) or 29 CFR Part 38 by a respondent.(b) If a complaint filed with the Agency alleges discrimination by a recipient on a basis that is both prohibited by WIOA §188 (29 USCA §3248) and by a federal law enforced by a federal grant-making agency other than DOL, and the recipient is funded in whole or in part by that other federal agency, the State-Level EO Officer shall refer the complaint to the other federal agency for processing under the other federal agency's procedures.(c) If the EO Officer determines that the Board or Agency does not have jurisdiction over the complaint, the EO Officer shall provide written notification to the complainant which includes:(1) a statement of the reasons for the determination; and(2) a notice that the complainant may file a complaint with CRC within 30 days of the receipt of the notification.</content><note type="source"><p>Source Note: The provisions of this §842.10 adopted to be effective January 4, 2021, 46 TexReg 202.</p></note></section><section identifier="/us/state/tx/tac/t40/p20/c842/scA/s842.11"><num value="842.11">§842.11</num><heading>Acceptance of Complaints of Discrimination</heading><content>(a) The EO Officer shall issue to the complainant a statement of the issues raised in the complaint and a statement regarding each issue of whether the Board or Agency will accept the issue for investigation or reject the issue with the reasons for any rejection.(b) The statement of acceptance of issues raised in the complaint shall include a notice informing the complainant that the complainant may choose to participate in an alternative dispute resolution process rather than the customary process described in 29 CFR §38.72 and §842.13 of this subchapter (relating to Processing of Accepted Complaints of Discrimination).</content><note type="source"><p>Source Note: The provisions of this §842.11 adopted to be effective January 4, 2021, 46 TexReg 202.</p></note></section><section identifier="/us/state/tx/tac/t40/p20/c842/scA/s842.12"><num value="842.12">§842.12</num><heading>Alternative Dispute Resolution of Complaint of Discrimination</heading><content>(a) Each Board shall establish a written alternative dispute resolution (ADR) procedure. The Board EO Officer shall be responsible for implementing the ADR procedure in the case of a complaint within the workforce area.(b) A complainant within the workforce area may choose to use the Board's ADR procedure rather than the complaint processing procedure described in 29 CFR §38.72 and §842.13 of this subchapter (relating to Processing of Accepted Complaints of Discrimination). If the complainant elects to use the Board's ADR procedure, the complainant shall file notice of this election within seven calendar days of the complainant's receipt of the Board's initial written notice. The ADR process shall be completed within 40 days from the date of the initial written notice.(c) The Board EO Officer shall coordinate the scheduling of mediation with a qualified mediator at a location convenient to the complainant and respondent.(d) The Board EO Officer shall file with the Agency a copy of the final agreement or the notice of failure to reach an agreement within 10 days of reaching that determination.(e) If the parties do not reach an agreement under the ADR process, the EO Officer shall process the complaint as described in 29 CFR §38.72 and §842.13 of this subchapter.</content><note type="source"><p>Source Note: The provisions of this §842.12 adopted to be effective January 4, 2021, 46 TexReg 202.</p></note></section><section identifier="/us/state/tx/tac/t40/p20/c842/scA/s842.13"><num value="842.13">§842.13</num><heading>Processing of Accepted Complaints of Discrimination</heading><content>(a) If a complainant elects not to participate in the alternative dispute resolution (ADR) process or if an agreement is not achieved through an ADR process, the EO Officer shall investigate the circumstances underlying the complaint.(b) The EO Officer shall attempt to resolve the complaint. At any point in the investigation of a complaint, the complainant, respondent, or the EO Officer may request that the parties attempt conciliation. The EO Officer shall act to facilitate such conciliation efforts.(c) Within 90 days of the date of receipt of the complaint, the EO Officer shall issue a Notice of Final Action that shall include:(1) for each issue raised, the decision on the issue and reasons for the decision, or a description of the way the parties resolved the issue; and(2) notice that the complainant has the right to file a complaint with CRC within 30 days of the date on which the Notice of Final Action is issued, if the complainant is dissatisfied with the final action on the complaint.(d) If the complainant is dissatisfied with the EO Officer's decision in the Notice of Final Action, the complainant or the complainant's representative may file a complaint with the Director of CRC within 30 days of the date on which the complainant received the Notice of Final Action.</content><note type="source"><p>Source Note: The provisions of this §842.13 adopted to be effective January 4, 2021, 46 TexReg 202.</p></note></section><section identifier="/us/state/tx/tac/t40/p20/c842/scA/s842.14"><num value="842.14">§842.14</num><heading>Corrective Actions and Remedies</heading><content>(a) As part of the Notice of Final Action, the Board may impose any corrective or remedial action, which may be imposed by the Director of CRC, under 29 CFR §38.90.(b) In addition to the corrective actions and remedies described in 29 CFR §38.90, the Agency may require that the respondent complete one or more of the following:(1) development of an appropriate equal opportunity policy;(2) removal of any discriminatory information from the complainant's records; and(3) delivery of equal opportunity training to all staff members.(c) The respondent shall file a notice with the State-Level and Board EO Officers within 10 calendar days of receipt of the Notice of Final Action that it has accepted the resolution of the complaint and that it will complete the required corrective actions listed in the Notice.(d) Monetary relief may not be paid from federal funds.</content><note type="source"><p>Source Note: The provisions of this §842.14 adopted to be effective January 4, 2021, 46 TexReg 202.</p></note></section><section identifier="/us/state/tx/tac/t40/p20/c842/scA/s842.15"><num value="842.15">§842.15</num><heading>Sanctions</heading><content>If the Agency finds a recipient to be in violation of the nondiscrimination and equal opportunity provisions of WIOA, or such entity has not accepted a suggested resolution or conciliation agreement, or has breached an established resolution or conciliation agreement, sanctions may be imposed pursuant to Chapter 802, Subchapter G of this title (relating to Sanctions).</content><note type="source"><p>Source Note: The provisions of this §842.15 adopted to be effective January 4, 2021, 46 TexReg 202.</p></note></section></subchapter></chapter><chapter identifier="/us/state/tx/tac/t40/p20/c843"><num value="843">CHAPTER 843</num><heading>JOB MATCHING SERVICES</heading><subchapter identifier="/us/state/tx/tac/t40/p20/c843/scA"><num value="A">SUBCHAPTER A</num><heading>GENERAL PROVISIONS</heading><section identifier="/us/state/tx/tac/t40/p20/c843/scA/s843.1"><num value="843.1">§843.1</num><heading>Employer and Job Seeker Services</heading><content>(a) Purpose. Job matching services provide the public with a clearinghouse for exchanging information on job postings and job seekers. This section sets forth for employers and job seekers the methods available for accessing the clearinghouse of employer and job seeker information.(b) Employer Postings of Job Openings. Employers may obtain access to the job matching services, including information to assist employers in posting job openings in the job matching system, by one or more of the following methods:(1) registering directly using the Internet-based job matching system at www.workintexas.com;(2) calling or visiting any Workforce Solutions Office in Texas; or(3) through any other means approved by the Local Workforce Development Board (Board) in consultation with Workforce Solutions Office staff located in the local workforce development area (workforce area) in which the open position exists, including sending or requesting information by mail or facsimile.(c) Job Seeker Access to Job Opening Information and Posting Résumé. Job seekers can obtain access to the job matching services, including information to assist job seekers in posting a résumé, obtaining information on job openings posted in the job matching system, labor market information, and employment and training opportunities by one or more of the following methods:(1) viewing online information available on the Internet;(2) registering directly using the Internet-based job matching system at www.workintexas.com;(3) calling or visiting any Workforce Solutions Office in Texas; or(4) through any other means approved by the Board in consultation with Workforce Solutions Office staff located in the workforce area in which the open position exists, including sending or requesting information by mail or facsimile.(d) Confidentiality and Disclosure of Job Matching Services Information.(1) "Job matching services information" is information in the records of the Agency that pertains to the job matching services system provided to employers, employing units, and job seekers through the Internet, Workforce Solutions Offices, or other means, that is maintained by the Agency and Boards and their workforce service providers.(2) Job matching services information is not public information and shall be maintained as confidential to the same degree as unemployment compensation information as set forth in Chapter 815, Subchapter E, of this title.(3) This subsection does not limit or waive the Agency's rights or obligations to invoke limitations or confidentiality requirements based on separate laws or regulations.(4) Disclosure of job matching services information is permissible:(A) for the purposes of administering job matching services;(B) when disclosing information about a job seeker or employer to that job seeker or employer;(C) when there is a written information release signed by the job seeker or employer;(D) when the information is provided to a public official for use in the performance of his or her official duties; and(E) in other situations that do not violate the confidentiality of the job seeker or employer and that have been approved by the Agency's Open Records Unit.</content><note type="source"><p>Source Note: The provisions of this §843.1 adopted to be effective April 1, 2002, 27 TexReg 2537; amended to be effective October 1, 2012, 37 TexReg 7752.</p></note></section><section identifier="/us/state/tx/tac/t40/p20/c843/scA/s843.2"><num value="843.2">§843.2</num><heading>Public Employer Requirements Regarding Military Employment Preference</heading><content>(a) A public entity or public work shall provide information to the Agency, as specified in Texas Government Code §657.009, regarding any open position subject to the military employment preferences set forth in Texas Government Code Chapter 657, unless specifically exempted under the state statute.(b) A public entity or public work shall provide information by one or more of the methods indicated in §843.1(b)(1) - (3) relating to the Employer Postings of Job Openings and submit basic information regarding the opening to the Agency as soon as practical, including the following:(1) the name of the public entity;(2) the location where the job is to be performed including city and state;(3) a description of the job opening;(4) the minimum educational and work experience required for the position; and(5) contact information regarding the opening.</content><note type="source"><p>Source Note: The provisions of this §843.2 adopted to be effective April 1, 2002, 27 TexReg 2537; amended to be effective May 20, 2024, 49 TexReg 3589.</p></note></section><section identifier="/us/state/tx/tac/t40/p20/c843/scA/s843.3"><num value="843.3">§843.3</num><heading>Public Employer Requirements Regarding E-Verify</heading><content>(a) State agencies and institutions of higher education, as defined by Texas Education Code §61.003, shall register and participate in the federal electronic verification of employment authorization program, E-Verify, for all newly hired employees, as specified in Texas Government Code §673.002, unless specifically exempted under the state statute.(b) In accordance with Texas Government Code §673.002, the Agency:(1) shall provide notice, registration information, and online forms for the E-Verify program to state agencies; and(2) may provide technical assistance, upon request.</content><note type="source"><p>Source Note: The provisions of this §843.3 adopted to be effective March 14, 2016, 41 TexReg 1976.</p></note></section></subchapter></chapter><chapter identifier="/us/state/tx/tac/t40/p20/c844"><num value="844">CHAPTER 844</num><heading>PROHIBITED CORONAVIRUS VACCINE MANDATES BY PRIVATE EMPLOYER</heading><subchapter identifier="/us/state/tx/tac/t40/p20/c844/scA"><num value="A">SUBCHAPTER A</num><heading>GENERAL PROVISIONS</heading><section identifier="/us/state/tx/tac/t40/p20/c844/scA/s844.1"><num value="844.1">§844.1</num><heading>Purpose</heading><content>The purpose of this chapter is to implement and interpret the provisions of Texas Health and Safety Code, Chapter 81D, Prohibited Coronavirus Virus Vaccine Mandates by Private Employer.</content><note type="source"><p>Source Note: The provisions of this §844.1 adopted to be effective December 30, 2024, 49 TexReg 10664.</p></note></section><section identifier="/us/state/tx/tac/t40/p20/c844/scA/s844.2"><num value="844.2">§844.2</num><heading>Definitions</heading><content>The following words and terms, when used in this chapter, shall have the following meanings, unless the statute or context in which the word or phrase is used clearly indicates otherwise.(1) "Adverse Action" means an action taken by an employer that a reasonable person would consider was for the purpose of punishing, alienating, or otherwise adversely affecting an employee, contractor, applicant for employment, or applicant for a contract position.(2) "Agency" shall have the meaning established under §800.2 of this title.(3) "Applicant for employment" means a person who has submitted a formal application for an employment position for which the person meets the minimum qualifications and who has a genuine interest in the position.(4) "Applicant for a contract position" means a person who has submitted a formal application or proposal for a contract position for which the person meets the minimum qualifications and who has a genuine interest in the contract position.(5) "Complainant" means an employee, contractor, applicant for employment, or applicant for a contract position who files a complaint against an employer alleging an adverse action by the employer against the person in violation of Texas Health and Safety Code, Chapter 81D.(6) "Complaint Form" means the COVID-19 Vaccine Complaint Form approved by the Agency.(7) "Contractor" means a person who undertakes specific work for an employer in exchange for a benefit without submitting to the control of the employer over the manner, methods, or details of the work.(8) "COVID-19" means the 2019 novel coronavirus disease and any variants of the disease.(9) "Day" means calendar day.(10) "Department" means the Department of State Health Services.(11) "Employee" means an individual who is employed by an employer, whether or not for compensation. The term does not include:(A) a person related to the employer or the employer's spouse within the first or second degree by consanguinity or affinity, as determined under Texas Government Code, Chapter 573; or(B) a contractor.(12) "Employer" means a person, other than a governmental entity, who employs one or more employees.(13) "Governmental Entity" means this state, an agency of this state, a local government entity, or a political subdivision of this state as defined in §821.4 of this title. This definition includes the definition of governmental entity as provided by Texas Health and Safety Code §81B.001(2).(14) "Party" means the agency, a complainant or employer.(15) "Person" includes corporation, organization, government or governmental subdivision or agency, business trust, estate, trust, partnership, association, and any other legal entity.</content><note type="source"><p>Source Note: The provisions of this §844.2 adopted to be effective December 30, 2024, 49 TexReg 10664.</p></note></section></subchapter><subchapter identifier="/us/state/tx/tac/t40/p20/c844/scB"><num value="B">SUBCHAPTER B</num><heading>COMPLAINTS</heading><section identifier="/us/state/tx/tac/t40/p20/c844/scB/s844.25"><num value="844.25">§844.25</num><heading>Complaint Requirements</heading><content>(a) A complaint must be filed in writing by the complainant completing the Complaint Form.(b) A Complaint Form may only be submitted by online submission as identified through the Agency's website page related to COVID-19 mandate complaints or by other means authorized in writing by the Agency.(c) The complainant must provide the following information on the Complaint Form:(1) the name of the complainant;(2) the name of the employer;(3) the nature and description of any alleged adverse action the employer took against the complainant; and(4) any other information specifically requested by the Agency on the Complaint Form that is necessary to resolve the complaint.(d) The complainant must declare that the information provided in the completed Complaint Form is true and correct.</content><note type="source"><p>Source Note: The provisions of this §844.25 adopted to be effective December 30, 2024, 49 TexReg 10664.</p></note></section><section identifier="/us/state/tx/tac/t40/p20/c844/scB/s844.26"><num value="844.26">§844.26</num><heading>Valid Complaints</heading><content>(a) A complaint may only be filed for an adverse action that occurred after the effective date of Senate Bill (SB) 7, 88th Texas Legislature, Third Special Session (2023), which was February 6, 2024.(b) The complaint must be received by the Agency within 90 days of the date of the adverse action. For adverse actions that occurred after the effective date of SB 7, and before the effective date of this chapter, a complaint must be received by the Agency within 90 days of the date this chapter becomes effective.(c) A contractor or applicant for a contract position may only file a complaint if the contractor or applicant for a contract position was or would have been a party to the contract with the employer.(d) A complaint must name an employer that is a non-governmental entity that satisfies the definition of employer in §844.02(12) of this chapter.(e) A complaint may only be filed by a complainant for an adverse action that was taken against the complainant for a refusal to be vaccinated against COVID-19.(f) A Complaint Form must be filled out completely and sufficiently to allow the Agency to attempt contact with the employer to investigate the adverse action.(g) A complainant may not file an additional complaint for an adverse action that has already been the basis of another complaint that is still pending or resulted in the issuance of a preliminary determination order, other than a dismissal under §844.28 of this subchapter, or for a complaint that was withdrawn under §844.54 of this chapter.(h) During the course of an investigation, a complainant or an employer may provide additional information to the Agency prior to the issuance of a preliminary determination order, which the Agency will consider in addition to evidence offered in the original complaint.</content><note type="source"><p>Source Note: The provisions of this §844.26 adopted to be effective December 30, 2024, 49 TexReg 10664.</p></note></section><section identifier="/us/state/tx/tac/t40/p20/c844/scB/s844.27"><num value="844.27">§844.27</num><heading>Jurisdiction</heading><content>(a) The Agency may exercise jurisdiction over complaints under this chapter in which:(1) the work was performed or would have been performed in Texas; and:(2) the employer:(A) is a resident employer; or(B) is a non-resident employer pursuant to the Texas Civil Practice & Remedies Code, Chapter 17, Subchapter C, also known as the "Texas Long-Arm Statute," when the following are met:(i) the employer employs the complainant in Texas at the time of the adverse action or the employer's contact with Texas is continuing and systematic; and(ii) exercising jurisdiction is consistent with:(I) fair play and justice as determined by the quality, nature, and extent of the employer's activities in Texas including the extent to which the employer avails itself of the benefits and protections of Texas law; and(II) the relative convenience of the parties.(b) The Agency shall not exercise jurisdiction over complaints based on work performed or intended to be performed outside the United States.</content><note type="source"><p>Source Note: The provisions of this §844.27 adopted to be effective December 30, 2024, 49 TexReg 10664.</p></note></section><section identifier="/us/state/tx/tac/t40/p20/c844/scB/s844.28"><num value="844.28">§844.28</num><heading>Dismissal</heading><content>(a) The Agency may dismiss a complaint that is incomplete or does not meet the requirements of §844.26 of this subchapter.(b) A dismissal under subsection (a) of this section becomes final unless a complainant refiles the complaint within the period to file a complaint or within 30 days of the mailing of the dismissal, whichever is later.</content><note type="source"><p>Source Note: The provisions of this §844.28 adopted to be effective December 30, 2024, 49 TexReg 10664.</p></note></section><section identifier="/us/state/tx/tac/t40/p20/c844/scB/s844.29"><num value="844.29">§844.29</num><heading>Adverse Action</heading><content>(a) To support a finding of a violation under this chapter, the adverse action must cause a result that a reasonable person would regard as an objective and demonstrated harm to the complainant.(b) If an adverse action was taken, the Agency will consider the reason(s) provided by an employer when determining whether the adverse action was taken due to a refusal to be vaccinated against COVID-19 in violation of Texas Health and Safety Code, Chapter 81D.</content><note type="source"><p>Source Note: The provisions of this §844.29 adopted to be effective December 30, 2024, 49 TexReg 10664.</p></note></section><section identifier="/us/state/tx/tac/t40/p20/c844/scB/s844.30"><num value="844.30">§844.30</num><heading>Investigation of Complaints in Health Care</heading><content>If a complaint against a health care facility, health care provider, or physician alleges an adverse action that involved an employer policy that includes requiring the use of protective medical equipment, as described in Texas Health and Safety Code §81D.0035(b), the Agency will consult with the Department to determine whether the policy was reasonable.</content><note type="source"><p>Source Note: The provisions of this §844.30 adopted to be effective December 30, 2024, 49 TexReg 10664.</p></note></section></subchapter><subchapter identifier="/us/state/tx/tac/t40/p20/c844/scC"><num value="C">SUBCHAPTER C</num><heading>DETERMINATIONS</heading><section identifier="/us/state/tx/tac/t40/p20/c844/scC/s844.50"><num value="844.50">§844.50</num><heading>Preliminary Determination Order, Determination on Remedial Action, and Penalty and Cost Order</heading><content>(a) After an investigation, the Agency will mail a preliminary determination order to each party stating whether the Agency determined the employer took an adverse action against the complainant for a refusal to be vaccinated against COVID-19 in violation of Texas Health and Safety Code, Chapter 81D.(b) If the Agency determines that a violation exists, but no remedial action has occurred prior to the preliminary determination order being issued, the preliminary determination will notify the parties that:(1) a violation has occurred;(2) an administrative penalty will be imposed;(3) the employer may remediate the violation;(4) the amount of reasonable investigative costs, if any, the Agency will seek to recover from the employer; and(5) each party has the right to file an appeal.(c) If the Agency determines that a violation exists, and the employer has taken remedial action prior to the preliminary determination order being issued, the preliminary determination will notify the parties:(1) that a violation has occurred;(2) whether the remediation was sufficient to remove the administrative penalty;(3) whether an administrative penalty will be imposed;(4) of the amount of reasonable investigative costs, if any, the Agency will seek to recover from the employer; and(5) that each party has the right to file an appeal.(d) If an employer submits proof of remedial action after the preliminary determination order is issued, the Agency will issue to each party a separate determination on remedial action with separate appeal rights. An employer has 30 days to submit proof of remedial action from the mailing date of the preliminary determination order. If the employer does not submit proof of remediation within 30 days, and/or does not appeal, the Agency will not consider any proof of remediation. An employer's timely submission of proof of remedial action will be considered an employer appeal of the preliminary determination order and the appeal will be abated until the appeal period for the determination resolving the sufficiency of the remedial action has expired.(e) If the employer files a timely appeal to the preliminary determination order, the employer may remediate at any time up until the hearing officer issues his or her decision, after which the employer must comply with the requirements of §844.85(e) of this chapter.(f) After a preliminary determination order, a determination on remedial action, or decision becomes final, the Agency will issue a penalty and cost order to the employer detailing the final amount owed to the Agency by the employer with instructions for submitting payment.(g) Determinations shall be mailed to each party at the best address available as required by §815.3 of this title, or at the location each party usually receives mail.(h) A penalty and cost order shall be mailed to the employer at the best address available as required by §815.3 of this title, or at a location the employer usually receives mail.(i) An administrative penalty under this chapter is not an award of damages to the complainant and no funds will be issued to the complainant by the Agency.</content><note type="source"><p>Source Note: The provisions of this §844.50 adopted to be effective December 30, 2024, 49 TexReg 10664.</p></note></section><section identifier="/us/state/tx/tac/t40/p20/c844/scC/s844.51"><num value="844.51">§844.51</num><heading>Remedial Action</heading><content>(a) Under Texas Health and Safety Code §81D.006(a)(1) and (2), an administrative penalty will not be assessed if prescribed remedial action is taken in response to a complaint. The remedial action required to avoid a penalty depends upon the specific facts that resulted in a violation. Depending upon the circumstances of the violation, remedial action may require:(1) if the complainant applied for an employment or contract position with the employer, and was not offered such position based upon his or her refusal to be vaccinated against COVID-19, the employer must offer the complainant the position applied for;(2) if the complainant is currently, or was recently, an employee or contractor of the employer, the employer shall take the following remedial steps as applicable to the violation. Not all steps may be applicable to remedy the adverse action that resulted in a violation:(A) reinstatement of the employee or contractor;(B) providing the employee or contractor with back pay from the date the employer took the adverse action; and/or(C) the employer must take every reasonable effort to reverse the effects of the adverse action. Reasonable efforts include, but are not limited to, reestablishing employee benefits for which the employee or contractor otherwise would have been eligible if the adverse action had not been taken.(b) Acceptable proof of a remedial action may include an offer or hiring letter on company letterhead, a signed new hire paperwork, a signed settlement letter, or completion of an Agency form by the complainant attesting to the remedial action.(c) Proof of remedial action shall be submitted online as identified through the Agency's website page related to COVID-19 mandate complaints, by other means authorized in writing by the Agency, or to the assigned hearing officer in accordance with §844.85(e) of this chapter.</content><note type="source"><p>Source Note: The provisions of this §844.51 adopted to be effective December 30, 2024, 49 TexReg 10664.</p></note></section><section identifier="/us/state/tx/tac/t40/p20/c844/scC/s844.52"><num value="844.52">§844.52</num><heading>Investigative Costs</heading><content>(a) If the Agency determines that the employer violated this chapter, the Agency may recover from the employer reasonable investigative costs incurred in conducting the investigation into whether the employer violated Texas Health and Safety Code, Chapter 81D, regardless of whether the employer took remedial action.(b) The Agency may not recover from the employer investigative costs incurred in conducting an investigation into whether the employer took remedial action.(c) The preliminary determination order will inform the employer of the investigative costs calculated by the Agency.(d) The investigative costs may, at the discretion of the Agency, be included in the amount owed in the penalty and cost order even if the employer took remedial action.</content><note type="source"><p>Source Note: The provisions of this §844.52 adopted to be effective December 30, 2024, 49 TexReg 10664.</p></note></section><section identifier="/us/state/tx/tac/t40/p20/c844/scC/s844.53"><num value="844.53">§844.53</num><heading>Corrected Determinations and Decisions</heading><content>(a) If Agency staff discover a clerical error of a non-substantive nature in connection with a determination or decision issued under this chapter, within the applicable appeal period, the Agency may reconsider and reissue the determination unless an appeal has already been filed.(b) A reissued determination voids and replaces the determination or decision issued under this chapter requiring correction and becomes final unless an appeal is filed from the determination within 30 days of the date the reissued determination is mailed.(c) Notwithstanding subsection (a) of this section, if a determination or decision issued under this chapter is mailed to a party's incorrect address, the Agency may reissue the determination to the party's correct address at any time.</content><note type="source"><p>Source Note: The provisions of this §844.53 adopted to be effective December 30, 2024, 49 TexReg 10664.</p></note></section><section identifier="/us/state/tx/tac/t40/p20/c844/scC/s844.54"><num value="844.54">§844.54</num><heading>Withdrawal of Complaint</heading><content>(a) A complainant may withdraw a complaint at any time before the date the preliminary determination order becomes final.(b) A complainant withdrawing a complaint shall submit a form as prescribed by the Agency.(c) A complaint that is withdrawn may not be refiled and a new complaint cannot be filed for the same adverse action as the withdrawn complaint.</content><note type="source"><p>Source Note: The provisions of this §844.54 adopted to be effective December 30, 2024, 49 TexReg 10664.</p></note></section><section identifier="/us/state/tx/tac/t40/p20/c844/scC/s844.55"><num value="844.55">§844.55</num><heading>Appeal and Determination Finality</heading><content>(a) Appealable Determinations:(1) An employer determined to have violated this chapter may appeal the preliminary determination order, within 30 days of the mailing date of the determination, to dispute whether a violation of Texas Health and Safety Code, Chapter 81D occurred, or the amount of the assessed investigative costs.(2) An employer determined to have not met the remedial action requirements under §844.51 of this subchapter may appeal the determination on remedial action within 30 days of the mailing date of the determination.(3) An employer may appeal a combined determination under §844.50(c) of this subchapter to dispute any of the issues contained therein within 30 days of the mailing date of the determination.(b) A determination becomes final unless a party files an appeal before the appeal deadline.(c) An appeal must be filed in writing by mail, common carrier, facsimile (fax), or other method approved by the Agency on the preliminary determination order or on the determination on remedial action.(d) A penalty and cost order is not an appealable document.(e) A complainant may appeal any determination or decision issued under this subchapter, regardless of the finding, within 30 days of the mailing date of the determination.</content><note type="source"><p>Source Note: The provisions of this §844.55 adopted to be effective December 30, 2024, 49 TexReg 10664.</p></note></section></subchapter><subchapter identifier="/us/state/tx/tac/t40/p20/c844/scD"><num value="D">SUBCHAPTER D</num><heading>ADMINISTRATIVE HEARINGS AND JUDICIAL REVIEW</heading><section identifier="/us/state/tx/tac/t40/p20/c844/scD/s844.75"><num value="844.75">§844.75</num><heading>Administrative Hearings</heading><content>(a) Administrative hearings shall be conducted subject to the rules and hearing procedures set out in Chapter 815 of this title, except to the extent that such sections are clearly inapplicable or contrary to provisions set out under this chapter.(b) The hearing is not subject to Texas Government Code, Chapter 2001.(c) Hearings may be conducted by electronic means, including but not limited to telephonic hearings, unless the hearing officer determines that an in-person hearing is necessary.(d) Accommodations may be requested, including the need for an in-person hearing or interpreters, through the hearing officer or Agency staff.</content><note type="source"><p>Source Note: The provisions of this §844.75 adopted to be effective December 30, 2024, 49 TexReg 10664.</p></note></section><section identifier="/us/state/tx/tac/t40/p20/c844/scD/s844.76"><num value="844.76">§844.76</num><heading>Parties</heading><content>The parties to proceedings under this chapter are the Agency, the complainant, and the employer named in the preliminary determination order or determination on remedial action.</content><note type="source"><p>Source Note: The provisions of this §844.76 adopted to be effective December 30, 2024, 49 TexReg 10664.</p></note></section><section identifier="/us/state/tx/tac/t40/p20/c844/scD/s844.77"><num value="844.77">§844.77</num><heading>Hearing Scheduling and Notice</heading><content>(a) Upon receipt of an appeal, the Agency shall assign an impartial hearing officer and mail a notice of hearing to the employer and complainant and/or their designated representatives.(b) The notice of hearing shall be in writing and include:(1) a statement of the date, time, place, and nature of the hearing;(2) a statement of the legal authority and jurisdiction under which the hearing is to be held;(3) a reference to the sections of the statutes and rules involved;(4) a statement of the issues to be considered during the hearing; and(5) either:(A) a short, plain statement of the factual matters asserted; or(B) an attachment that incorporates by reference the factual matters asserted in the complaint.(c) The notice of hearing shall be issued at least 10 days before the date of the hearing unless all parties agree to waive this requirement.</content><note type="source"><p>Source Note: The provisions of this §844.77 adopted to be effective December 30, 2024, 49 TexReg 10664.</p></note></section><section identifier="/us/state/tx/tac/t40/p20/c844/scD/s844.78"><num value="844.78">§844.78</num><heading>Representation</heading><content>Parties have the right to be represented by an attorney or other individual of their choice in accordance with §815.18(3) of this title.</content><note type="source"><p>Source Note: The provisions of this §844.78 adopted to be effective December 30, 2024, 49 TexReg 10664.</p></note></section><section identifier="/us/state/tx/tac/t40/p20/c844/scD/s844.79"><num value="844.79">§844.79</num><heading>Ex Parte Communications</heading><content>(a) Except as provided in this chapter, and unless required for the disposition of ex parte matters authorized by law, the hearing officer may not communicate, directly or indirectly, in connection with any issue of fact or law with a party, representative of a party, witness, or individual providing testimony except on notice and opportunity for each party to participate.(b) The hearing officer may communicate concerning the case with an Agency employee who has not participated in the hearing but may do so only for the purpose of using the special skills or knowledge of the Agency and its staff in evaluating the evidence.</content><note type="source"><p>Source Note: The provisions of this §844.79 adopted to be effective December 30, 2024, 49 TexReg 10664.</p></note></section><section identifier="/us/state/tx/tac/t40/p20/c844/scD/s844.80"><num value="844.80">§844.80</num><heading>Hearing Procedures</heading><content>(a) General Procedure. The hearing shall be conducted informally and, in such manner, as to ascertain the substantive rights of the parties. The hearing officer shall develop the evidence. All issues relevant to the appeal shall be considered and addressed.(1) Presentation of Evidence. The parties may present evidence that is material and relevant, as determined by the hearing officer. In conducting a hearing, the hearing officer shall actively develop the record on the relevant circumstances and facts to resolve all issues. To be considered as evidence in a decision, any document or physical evidence must be entered as an exhibit at the hearing. A party has the right to object to evidence offered at the hearing by the hearing officer or other parties.(2) Evidence Generally. Evidence, including hearsay evidence, shall be admitted if it is relevant and if in the judgment of the hearing officer it is the kind of evidence on which reasonably prudent persons are accustomed to relying on in conducting their affairs. However, the hearing officer may exclude evidence if its probative value is outweighed by the danger of unfair prejudice, by confusion of the issues, or by reasonable concern for undue delay, waste of time, or needless presentation of cumulative evidence.(3) Examination of Witnesses and Parties. The hearing officer shall examine parties and any witnesses under oath and shall allow cross-examination to the extent the hearing officer deems necessary to afford the parties due process.(4) Additional Evidence. The hearing officer, with or without notice to any of the parties, may take additional evidence deemed necessary, provided that a party shall be given an opportunity to rebut the evidence if it is to be used against the party's interest.(5) Appropriate Hearing Behavior. All parties shall conduct themselves in an appropriate manner. The hearing officer may expel any individual, including a party, who fails to correct behavior the hearing officer identifies as disruptive. After an expulsion, the hearing officer may proceed with the hearing and render a decision.(b) Records.(1) The hearing record shall include the audio recording of the proceeding and any other relevant evidence relied on by the hearing officer, including documents and other physical evidence entered as exhibits.(2) The hearing record shall be maintained in accordance with federal or state law.(3) Confidentiality of information contained in the hearing record shall be maintained in accordance with federal and state law.(4) Upon request, a party has the right to obtain one copy of the hearing record, including recordings of the hearing and file documents at no charge.</content><note type="source"><p>Source Note: The provisions of this §844.80 adopted to be effective December 30, 2024, 49 TexReg 10664.</p></note></section><section identifier="/us/state/tx/tac/t40/p20/c844/scD/s844.81"><num value="844.81">§844.81</num><heading>Postponement and Continuance</heading><content>(a) On the hearing officer's own motion, or for good cause, at a party's request, the hearing officer may postpone or continue a hearing.(b) Requests for a continuance or postponement may be made informally by a party, either orally or in writing, to the hearing officer.(c) The hearing officer shall use his or her best judgement to determine when to grant a continuance or postponement of a hearing to secure all necessary evidence and to be fair to the parties.(d) The notice of the hearing must indicate the times and places at which the hearing may be continued unless waived by the parties.</content><note type="source"><p>Source Note: The provisions of this §844.81 adopted to be effective December 30, 2024, 49 TexReg 10664.</p></note></section><section identifier="/us/state/tx/tac/t40/p20/c844/scD/s844.82"><num value="844.82">§844.82</num><heading>Default</heading><content>If a party to whom a notice of hearing provided under this chapter fails to appear for a hearing, the hearing officer may proceed in that party's absence on a default basis. If a final decision is issued, the factual allegations listed in the notice of hearing may be deemed admitted. If a party fails to appear at a hearing, the hearing officer will issue a notice of default to that party. A party may file a motion no later than 14 days after the notice of default is mailed to set aside a default announced at the hearing and to reopen the record. If a timely motion to set aside a default is filed, the hearing officer may grant the motion, set aside the default, and reopen the hearing for good cause shown, or in the interests of justice. The hearing officer may issue a decision denying the motion to set aside a default without a hearing if the motion fails to allege a reason for the party's failure to appear or if a party has failed to appear at three or more scheduled hearings.</content><note type="source"><p>Source Note: The provisions of this §844.82 adopted to be effective December 30, 2024, 49 TexReg 10664.</p></note></section><section identifier="/us/state/tx/tac/t40/p20/c844/scD/s844.83"><num value="844.83">§844.83</num><heading>Timeliness</heading><content>(a) Parties shall promptly notify, in writing or during the recorded hearing, the Agency of any change of mailing address. Determinations and decisions shall be mailed to the new address.(1) If a party properly designates a party representative, a determination or decision must be mailed to the designated party representative for it to become final.(2) The Agency is responsible for making an address change only if the Agency is specifically directed by the party to mail subsequent correspondence to the new address.(3) If the Agency addresses a document incorrectly, but the party receives the document, the time frame for filing an appeal shall begin as of the actual date of receipt by the party, whether or not the party receives the document within the appeal time frame. However, this does not apply if the party fails to provide a current address or provides an incorrect address.(b) A determination or decision mailed to a party shall be presumed to have been delivered if the document was mailed as specified in subsection (a) of this section.(1) A determination or decision shall not be presumed to have been delivered:(A) if there is tangible evidence of nondelivery, such as being returned to the sender by the US Postal Service; or(B) if credible and persuasive evidence is submitted to establish nondelivery or delayed delivery to the proper address.(2) If a party provides the Agency with an incorrect mailing address, a mailing to that address shall be considered a proper mailing, even if there is proof that the party never received the document.(c) The filing date for a complaint or an appeal shall be:(1) the postmark date or the postal meter date (where there is only one or the other);(2) the postmark date if there is both a postmark date and a postal meter date;(3) the date the document was delivered to a common carrier, which is equivalent to the postmark date;(4) three business days before receipt by the Agency, if the document was received in an envelope bearing no legible postmark, postal meter date, or date of delivery by a common carrier;(5) the date of the document itself, if the document date is fewer than three days earlier than the date of receipt and if the document was received in an envelope bearing no legible postmark, postal meter date, or date of delivery by a common carrier;(6) the date of the document itself, if the mailing envelope containing the complaint or appeal is lost after delivery to the Board or Agency. If the document is undated, the filing date shall be deemed to be three business days before receipt by the Board or Agency; or(7) the date of receipt by the Agency if the document was filed online or by fax.(d) Credible and persuasive testimony under oath, subject to cross-examination, may establish a filing date that is earlier than the dates established under subsection (c) of this section. A party shall be allowed to establish a filing date earlier than a postal meter date or the date of the document itself only upon a showing of extremely credible and persuasive evidence. Likewise, when a party alleges that a complaint or appeal has been filed that the Agency has never received, the party must present credible and persuasive evidence to support the allegation.(e) A decision or preliminary determination order shall not be deemed final if a party shows that a representative of the Agency has given misleading information on appeal rights to the party. The party shall specifically establish:(1) how the party was misled; or(2) what misleading information the party was given, and, if possible, by whom the party was misled.(f) Appeal and complaint deadlines are extended one working day following a deadline which falls on a weekend, an official state holiday, a state holiday for which minimal staffing is required or a federal holiday.(g) There is no good cause exception to the timeliness rules.</content><note type="source"><p>Source Note: The provisions of this §844.83 adopted to be effective December 30, 2024, 49 TexReg 10664.</p></note></section><section identifier="/us/state/tx/tac/t40/p20/c844/scD/s844.84"><num value="844.84">§844.84</num><heading>Withdrawal of an Appeal</heading><content>A party may request a withdrawal of its appeal at any time before the hearing officer's decision is issued. The hearing officer may grant the request for withdrawal in writing and issue an order of dismissal.</content><note type="source"><p>Source Note: The provisions of this §844.84 adopted to be effective December 30, 2024, 49 TexReg 10664.</p></note></section><section identifier="/us/state/tx/tac/t40/p20/c844/scD/s844.85"><num value="844.85">§844.85</num><heading>Decision</heading><content>(a) The hearing officer shall issue a written decision as soon as possible after the hearing is finally closed.(b) The Agency shall notify each party to a contested case of any decision of the hearing officer by mailing the decision to the parties or the parties designated representative if requested.(c) The decision shall include findings of fact and conclusions of law separately stated and a list of the individuals who appeared at the hearing. Findings of fact, if set forth in statutory language, shall be accompanied by a concise and explicit statement of the underlying facts supporting the findings. Findings of fact shall be based exclusively on the evidence and on matters officially noticed and any issues the parties waived notice of. The hearing officer shall rule on any contested determinations issued as a result of the complaint.(d) If the decision rules that the employer violated Texas Health and Safety Code, Chapter 81D or this chapter and if no remediation determination has been issued prior to the hearing, the hearing officer's decision shall indicate the amount of the administrative penalty, any applicable investigative costs, and inform the employer of the ability to avoid the administrative penalty by taking remedial action and submitting proof thereof.(e) If no decision has ruled on remedial action and the employer intends to take remedial action in response to a decision issued under subsection (d) of this section, the employer must notify the hearing officer of their intent to remedy within 14 days of the decision being issued. Notice of intent to remedy must be filed in accordance with the instructions provided in the decision. Upon notification, the hearing officer's decision will be reopened for 30 days for the employer to provide proof of remedial action to the hearing officer.(f) The hearing officer may hold an additional hearing to consider additional evidence of remediation. After consideration of any evidence of proof of remediation, the hearing officer shall issue a combined decision addressing all issues in front of the hearing officer resulting from the complaint.</content><note type="source"><p>Source Note: The provisions of this §844.85 adopted to be effective December 30, 2024, 49 TexReg 10664.</p></note></section><section identifier="/us/state/tx/tac/t40/p20/c844/scD/s844.86"><num value="844.86">§844.86</num><heading>Finality of Decision</heading><content>The decision of the hearing officer becomes final 14 days after the date the decision is mailed unless before that date the hearing officer reopens the decision, a party files a timely appeal to the Commission, or the Commission by order removes to itself the proceedings pending before the hearing officer.</content><note type="source"><p>Source Note: The provisions of this §844.86 adopted to be effective December 30, 2024, 49 TexReg 10664.</p></note></section><section identifier="/us/state/tx/tac/t40/p20/c844/scD/s844.87"><num value="844.87">§844.87</num><heading>Commission</heading><content>The duties of the Commission include reviewing the order of a hearing officer under this chapter. The member of the Commission who represents the public shall serve as chair when the Commission acts under this chapter.</content><note type="source"><p>Source Note: The provisions of this §844.87 adopted to be effective December 30, 2024, 49 TexReg 10664.</p></note></section><section identifier="/us/state/tx/tac/t40/p20/c844/scD/s844.88"><num value="844.88">§844.88</num><heading>Removal of Order Pending Before a Hearing Officer</heading><content>(a) The Commission by order may remove to itself the proceedings pending before a hearing officer.(b) The Commission promptly shall mail to the parties to the proceedings a notice of the order under subsection (a) of this section.(c) A quorum of the Commission shall hear a proceeding removed to the Commission under subsection (a) of this section.</content><note type="source"><p>Source Note: The provisions of this §844.88 adopted to be effective December 30, 2024, 49 TexReg 10664.</p></note></section><section identifier="/us/state/tx/tac/t40/p20/c844/scD/s844.89"><num value="844.89">§844.89</num><heading>Commission Review of Hearing Officer Order</heading><content>(a) The Commission may, on its own motion:(1) affirm, modify, or set aside a decision issued under §844.85 of this subchapter on the basis of the evidence previously submitted in the case; or(2) direct the taking of additional evidence.(b) The Commission may permit the parties to initiate a further appeal before the Commission.</content><note type="source"><p>Source Note: The provisions of this §844.89 adopted to be effective December 30, 2024, 49 TexReg 10664.</p></note></section><section identifier="/us/state/tx/tac/t40/p20/c844/scD/s844.90"><num value="844.90">§844.90</num><heading>Notice of Commission Action</heading><content>(a) The Commission shall mail to each party notice of:(1) the Commission's decision;(2) the violation;(3) the amount of any penalty assessed;(4) if applicable, the amount of any investigative costs; and(5) the parties' right to file a motion for rehearing.(b) The notice shall be mailed to the party's last known address, as shown by the Agency's records.(c) The Commission shall enter a written penalty order for the payment of any penalty or investigative costs the Commission has assessed.</content><note type="source"><p>Source Note: The provisions of this §844.90 adopted to be effective December 30, 2024, 49 TexReg 10664.</p></note></section><section identifier="/us/state/tx/tac/t40/p20/c844/scD/s844.91"><num value="844.91">§844.91</num><heading>Finality of Commission Order</heading><content>An order of the Commission becomes final 14 days after the date the order is mailed unless before that date:(1) the Commission by order reopens the appeal; or(2) a party files a written motion for rehearing.</content><note type="source"><p>Source Note: The provisions of this §844.91 adopted to be effective December 30, 2024, 49 TexReg 10664.</p></note></section><section identifier="/us/state/tx/tac/t40/p20/c844/scD/s844.92"><num value="844.92">§844.92</num><heading>Judicial Review</heading><content>(a) If a final decision or order imposes an administrative penalty or the recovery of investigative costs, a party may obtain judicial review of the decision by filing a petition in a Travis County district court against the Agency on or after the date on which the decision or order is final, and not later than the 14th day after that date.(b) Judicial review under this subchapter is by trial de novo based on the substantial evidence rule.(c) A party may not obtain judicial review of the decision unless the party has exhausted the party's remedies as provided by this subchapter.</content><note type="source"><p>Source Note: The provisions of this §844.92 adopted to be effective December 30, 2024, 49 TexReg 10664.</p></note></section></subchapter></chapter><chapter identifier="/us/state/tx/tac/t40/p20/c845"><num value="845">CHAPTER 845</num><heading>TEXAS WORK & FAMILY POLICIES RESOURCES</heading><subchapter identifier="/us/state/tx/tac/t40/p20/c845/scA"><num value="A">SUBCHAPTER A</num><heading>GENERAL PROVISIONS</heading><section identifier="/us/state/tx/tac/t40/p20/c845/scA/s845.1"><num value="845.1">§845.1</num><heading>Goals and Purpose</heading><content>The purpose of the Texas Work and Family Policies Resources is to provide technical assistance and information on dependent care and other employment-related family issues to public and private employers, state agencies, policymakers, and individuals.</content><note type="source"><p>Source Note: The provisions of this §845.1 adopted to be effective January 25, 2000, 25 TexReg 395; amended to be effective March 13, 2006, 31 TexReg 1726; amended to be effective February 26, 2024, 49 TexReg 1103.</p></note></section><section identifier="/us/state/tx/tac/t40/p20/c845/scA/s845.2"><num value="845.2">§845.2</num><heading>Definitions</heading><content>The following words and terms, when used in this chapter, shall have the following meanings unless the context clearly indicates otherwise.(1) Dependent care--Care for a child, adult, or disabled relative who is claimed as a dependent for federal income tax purposes, that has an impact on employment-related family issues.(2) Grant applicant--A public or private person as defined in the request for proposal or request for application published by the Agency.(3) Grant recipient--A public or private person awarded a grant from the Agency.</content><note type="source"><p>Source Note: The provisions of this §845.2 adopted to be effective January 25, 2000, 25 TexReg 395; amended to be effective March 13, 2006, 31 TexReg 1726; amended to be effective February 26, 2024, 49 TexReg 1103.</p></note></section></subchapter><subchapter identifier="/us/state/tx/tac/t40/p20/c845/scB"><num value="B">SUBCHAPTER B</num><heading>DEPENDENT CARE GRANTS</heading><section identifier="/us/state/tx/tac/t40/p20/c845/scB/s845.11"><num value="845.11">§845.11</num><heading>Submission of Grant Requests</heading><content>(a) A grant applicant may submit a grant request to the Agency in response to requests for proposals or requests for applications.(b) The Request for Proposal or Request for Application will include a deadline for submission if applicable, a statement of work related to the use of the funds, any information related to the use of the funds and any other requirements established by the Agency.</content><note type="source"><p>Source Note: The provisions of this §845.11 adopted to be effective January 25, 2000, 25 TexReg 395; amended to be effective February 26, 2024, 49 TexReg 1103.</p></note></section><section identifier="/us/state/tx/tac/t40/p20/c845/scB/s845.12"><num value="845.12">§845.12</num><heading>Criteria for Awarding Grants</heading><content>The Agency may consider the following factors in awarding grants:(1) the purpose for which the specific grant is intended;(2) coordination requirements with employer organizations, employee organizations, child health agencies, and the category of dependent care to be addressed;(3) reporting and monitoring requirements;(4) the appeal process applicable to the grant; and(5) other criteria included by the Agency.</content><note type="source"><p>Source Note: The provisions of this §845.12 adopted to be effective January 25, 2000, 25 TexReg 395; amended to be effective February 26, 2024, 49 TexReg 1103.</p></note></section><section identifier="/us/state/tx/tac/t40/p20/c845/scB/s845.13"><num value="845.13">§845.13</num><heading>Cancellation or Other Corrective Action</heading><content>(a) Cancellation. The Agency may cancel a grant if the Agency determines that the grant recipient has failed to perform as required in the grant request or award, or for circumstances that lead the Agency to believe the grant recipient will fail to substantially comply with the terms set forth in the request for proposal, request for application, contract, or interagency agreement. Grounds for cancellation may also include: failure to ensure a program's intended results; waste, fraud or abuse of resources; and failure to timely capture, report, or use information to improve decision making.(b) Corrective Action. The Agency may take corrective action in lieu of cancellation if it is determined by the Agency to be the best course of action to facilitate the maximum use of funds.</content><note type="source"><p>Source Note: The provisions of this §845.13 adopted to be effective January 25, 2000, 25 TexReg 395; amended to be effective February 26, 2024, 49 TexReg 1103.</p></note></section></subchapter></chapter><chapter identifier="/us/state/tx/tac/t40/p20/c849"><num value="849">CHAPTER 849</num><heading>EMPLOYMENT AND TRAINING SERVICES FOR DISLOCATED WORKERS ELIGIBLE FOR TRADE BENEFITS</heading><subchapter identifier="/us/state/tx/tac/t40/p20/c849/scA"><num value="A">SUBCHAPTER A</num><heading>GENERAL PROVISIONS</heading><section identifier="/us/state/tx/tac/t40/p20/c849/scA/s849.1"><num value="849.1">§849.1</num><heading>Purpose</heading><content>(a) The purpose of this chapter is to ensure:(1) statewide availability of services under the federal and state statutes and regulations relating to services to dislocated workers eligible for Trade benefits through the Workforce Solutions Offices consistent with Chapter 801 of this title (relating to Local Workforce Development Boards);(2) coordination and integration of services to dislocated workers eligible for Trade benefits through the Workforce Solutions Offices consistent with state law, the Trade Act, and the Workforce Innovation and Opportunity Act. For the purposes of this chapter, references to the "Trade Act" include references to the federal statutes relating to the Trade Act of 1974, as amended; and(3) provision of Rapid Response services, as set forth in §849.21(b) of this chapter, following an announcement or notification of a permanent closure or mass layoff or the filing of a Trade Adjustment Assistance petition with the United States Department of Labor.(b) The purposes of services to dislocated workers eligible for Trade benefits under the Trade Act are to:(1) ensure that dislocated workers eligible for Trade benefits obtain suitable employment whenever possible and to return to employment as quickly as possible;(2) fund such services to develop or enhance the vocational skills necessary to meet employers' needs when suitable employment cannot be obtained; and(3) provide other such services, as may be funded under state or federal programs, for post-employment activities, as needed.</content><note type="source"><p>Source Note: The provisions of this §849.1 adopted to be effective November 24, 2003, 28 TexReg 10510; amended to be effective January 12, 2015, 40 TexReg 270; amended to be effective July 18, 2022, 47 TexReg 4143.</p></note></section><section identifier="/us/state/tx/tac/t40/p20/c849/scA/s849.2"><num value="849.2">§849.2</num><heading>Definitions</heading><content>The following words and terms, when used in this chapter, shall have the following meanings unless the context clearly indicates otherwise.(1) Adversely affected employment--Employment in which workers are eligible to apply for Trade Adjustment Assistance (TAA).(2) Adversely affected incumbent worker--An individual who:(A) is a member of a worker group certified as eligible to apply for the TAA Program;(B) has not been totally or partially separated from adversely affected employment; and(C) is threatened with total or partial separation, as determined by the United States Department of Labor (DOL).(3) Adversely affected worker--An individual, including an employer, who because of lack of work in adversely affected employment, has been totally or partially separated from such employment.(4) Alternative Trade Adjustment Assistance for Older Workers/Reemployment Trade Adjustment Assistance--Benefits available to workers in an eligible worker group who are at least 50 years of age and who obtain different, full-time employment following separation from adversely affected employment, at wages less than those earned in the adversely affected employment. These workers may receive up to half of the difference between the worker's old wage and the new wage, as set forth in the Trade Act.(5) Benchmarking--A process conducted no less often than once every 60 days and designed to monitor and ensure the worker progresses toward completing the approved training based on two criteria:(A) Maintaining satisfactory academic standing; and(B) Staying on schedule to complete training within the time frame identified in the approved training plan.(6) Bona fide application for training--Any document developed by a Board or provided by the Agency that meets the requirements of 20 Code of Federal Regulations (CFR) §617.3(h)(1)(i), and is signed and dated by the participant, which includes the participant's name, Trade petition number, and specific occupational training.(7) Contextualized learning--Learning, which includes English and basic skills, presented in the context of the selected vocational skills training.(8) Individual employment plan (IEP)--A revisable document containing an ongoing strategy, jointly developed by the trade-affected worker and the case worker, identifying the worker's employment goals and appropriate achievement objectives.(9) Job search allowance--Benefit provided to trade-affected workers to support out-of-area job search when employment is not available within the Commission-established local commuting area.(10) Labor market information--Information used to measure expected job market conditions that include, but are not limited to, job order activity, short-term projections data, job vacancy surveys, business visitation programs, and local and regional strategic plans.(11) Rapid Response services--As defined by Workforce Innovation and Opportunity Act §3(51); 20 CFR Part 652, Subpart C; 20 CFR §§665.300, 665.310, and 665.320; and the Trade Act.(12) Relocation allowance--A benefit provided to a trade-affected worker to support relocation of the worker's household and family when suitable employment or employment that pays a wage of at least the 75th percentile of national wages is not available to the worker within the Commission-established local commuting area and relocation is necessary to secure suitable employment.(13) Suitable employment--Any employment that meets the requirements of 19 United States Code (USC) §2296, as referenced in 20 CFR Part 618, Subpart F, Reemployment Services, and in particular §618.610(a)(1), which is employment that results in work of an equal or higher skill level as compared to the worker's past adversely affected employment, with wages of not less than 80 percent of the worker's average weekly wage.(14) Trade Act--The federal statutes relating to Trade Adjustment Assistance and Trade Readjustment Allowances. For purposes of this chapter, references to the "Trade Act" shall include references to the federal statutes relating to the Trade Act of 1974, as amended, which include the Trade Adjustment Assistance Reform Act of 2002; the Trade and Globalization Adjustment Assistance Act of 2009; the Omnibus Trade Act of 2010; the Trade Adjustment Assistance Extension Act of 2011; the sunset provisions of the Trade Adjustment Assistance Extension Act of 2011, referred to as Reversion 2014; and reversion provisions of the Trade Adjustment Assistance Reauthorization Act of 2015, referred to as Reversion 2021.(15) Traded-affected worker--A category including both adversely affected workers and adversely affected incumbent workers.(16) Trade benefits--Benefits available to any member of a worker group certified by DOL as trade-affected.(17) Trade Readjustment Allowances (TRA)--A weekly allowance payable to an adversely affected worker who meets the requirements of 20 CFR Part 618, Subpart G.(18) Unemployment Insurance (UI)--UI program as set forth in Texas Labor Code, §201.001 et seq.(19) Waiver of the training requirement--A document developed by the Agency, which may be adapted by a Board, that meets the requirements of the Trade Act, and is approved by state merit staff, waiving the requirement to be enrolled in Trade-funded training in order to receive TRA.(20) WARN--The Worker Adjustment and Retraining Notification Act, as set forth in 29 USC Chapter 23.(21) Work-based training--Training services specifically designed to meet an employer's staffing and skill needs, as set forth by 20 CFR §618.635, including on-the-job and customized training, and apprenticeship programs.</content><note type="source"><p>Source Note: The provisions of this §849.2 adopted to be effective November 24, 2003, 28 TexReg 10510; amended to be effective January 12, 2015, 40 TexReg 270; amended to be effective July 18, 2022, 47 TexReg 4143.</p></note></section><section identifier="/us/state/tx/tac/t40/p20/c849/scA/s849.3"><num value="849.3">§849.3</num><heading>Trade Service Strategy</heading><content>(a) Boards shall ensure that their strategic planning process includes an analysis of the local labor market to:(1) determine employer needs;(2) determine emerging, targeted, and in-demand occupations and the earning potential of those occupations;(3) determine skill requirements of local in-demand occupations; and(4) identify job vacancy listings and the skills necessary to obtain the jobs identified in the listings, which include those with a potential for career advancement.(b) Boards shall set local policies for a Trade service strategy to:(1) assist dislocated workers eligible for Trade benefits in obtaining suitable employment as an alternative to referral to training;(2) promote the use of Workforce Innovation and Opportunity Act (WIOA) career services to support successful reemployment; and(3) assist in employment retention and career advancement.(c) Boards shall ensure that dislocated workers eligible for Trade benefits receive the following services:(1) Explanation of benefits and services available under the Trade Act, to include applicable deadlines;(2) Assessment of education, skills, and service needs;(3) Information on training available locally and regionally, including information on how to apply for financial aid supported under the Higher Education Act of 1965;(4) Individual and group career counseling, including job search and placement counseling during the period the trade-affected worker is receiving TRA or training;(5) Short-term prevocational services;(6) Issuance of a waiver of the training requirement where suitable work is unavailable, training is determined not to be feasible or appropriate, and the worker meets applicable eligibility criteria;(7) Development of an IEP;(8) Referral to training services where suitable employment is unavailable;(9) Assistance in filing requests for job search and/or relocation allowances;(10) Support services available under the WIOA Title I dislocated worker program;(11) Employment and case management services;(12) Follow-up services during and upon completion of training; and(13) Provision of employment statistics information, including the provision of accurate information relating to local, regional, and national labor market areas.</content><note type="source"><p>Source Note: The provisions of this §849.3 adopted to be effective November 24, 2003, 28 TexReg 10510; amended to be effective January 12, 2015, 40 TexReg 270; amended to be effective July 18, 2022, 47 TexReg 4143.</p></note></section></subchapter><subchapter identifier="/us/state/tx/tac/t40/p20/c849/scB"><num value="B">SUBCHAPTER B</num><heading>TRADE SERVICES RESPONSIBILITIES</heading><section identifier="/us/state/tx/tac/t40/p20/c849/scB/s849.11"><num value="849.11">§849.11</num><heading>General Board Responsibilities</heading><content>(a) Board Planning. A Board shall amend and modify its integrated workforce training and services plan to incorporate and coordinate the design, policy development, and management of the delivery of Trade activities and support services with the delivery of other workforce employment, training, and educational services identified in Texas Government Code, §2308.251 et seq., as well as other training and services included in the One-Stop Service Delivery Network as set forth in Chapter 801 of this title.(b) Reporting. Boards shall ensure that documentation is maintained as required by the Agency, including documentation required in the Agency's automated reporting system.(c) Monitoring. A Board shall ensure that the monitoring of program requirements and trade-affected worker activities is part of the monitoring required under Chapter 802, Subchapter D of this title (relating to Agency Monitoring Activities) and, in particular, that the monitoring is ongoing and frequent, as determined appropriate by the Board, and consists of the following:(1) timely and accurate reporting of data required for the provision of services to the trade-affected worker;(2) tracking and reporting of participation;(3) tracking and reporting of support services;(4) ensuring progress toward achieving the goals and objectives through benchmarking, as established in the worker's IEP and defined in §849.2(8) of this chapter; and(5) monitoring other requirements, as prescribed by the Commission.</content><note type="source"><p>Source Note: The provisions of this §849.11 adopted to be effective November 24, 2003, 28 TexReg 10510; amended to be effective January 12, 2015, 40 TexReg 270; amended to be effective July 18, 2022, 47 TexReg 4143.</p></note></section><section identifier="/us/state/tx/tac/t40/p20/c849/scB/s849.12"><num value="849.12">§849.12</num><heading>Trade-Affected Worker Responsibilities</heading><content>As required by the Trade Act, dislocated workers eligible for Trade benefits shall:(1) apply for UI and TRA benefits in the manner, and pursuant to the time limits, prescribed by federal and state statutes and regulations;(2) contact the local Workforce Solutions Office and register for work by enrolling in the Agency's automated job matching system;(3) attend Rapid Response and Trade orientation activities;(4) report to the employer to whom they are referred for suitable employment;(5) accept a job offer and/or retain employment, if it meets the criteria for suitable employment;(6) attend scheduled appointments with the case manager, if no suitable employment is available;(7) review labor market information and expected wage of the new occupation;(8) fully participate in Trade-approved training as defined by the training provider and/or the Agency;(9) notify the case manager prior to modifying Trade-approved training by adding or dropping coursework;(10) maintain satisfactory academic standing and progressing in Trade-approved training as stipulated in the IEP; and(11) report to employers, as referred by case managers, upon completing training.</content><note type="source"><p>Source Note: The provisions of this §849.12 adopted to be effective November 24, 2003, 28 TexReg 10510; amended to be effective January 12, 2015, 40 TexReg 270; amended to be effective July 18, 2022, 47 TexReg 4143.</p></note></section></subchapter><subchapter identifier="/us/state/tx/tac/t40/p20/c849/scC"><num value="C">SUBCHAPTER C</num><heading>TRADE SERVICES</heading><section identifier="/us/state/tx/tac/t40/p20/c849/scC/s849.21"><num value="849.21">§849.21</num><heading>Activities Prior to Certification of a Trade Petition</heading><content>(a) Boards shall develop intervention strategies for providing Workforce Solutions Office services, which ensure rapid and suitable employment for trade-affected workers and dislocated workers eligible for Trade benefits.(b) Boards shall ensure that Rapid Response assistance is provided consistent with Workforce Innovation and Opportunity Act (WIOA) Title I Rapid Response services, including the following:(1) contacting the employer immediately upon the filing of a Trade petition, receipt of a WARN letter, the announcement of a layoff involving 50 or more workers, other notification of pending layoff, or a mass job dislocation that results from a natural disaster;(2) scheduling a meeting with the employer and workers to ensure notification of Rapid Response services, including availability of UI mass claims;(3) scheduling services for workers, including:(A) orientation to Trade Act benefits, which includes the following:(i) TRA; and(ii) Trade Act-funded employment and training activities; and(B) orientation to labor market information, including wage data and the availability of demand and targeted occupations as defined by the Board;(4) assisting employers, workers, and labor unions with filing Trade petitions with the United States Department of Labor;(5) providing initial assessment of the trade-affected worker's skill levels, (including literacy, numeracy, and English language proficiency), abilities (including skill gaps), and need for support services;(6) helping affected workers register in the state's labor exchange system; and(7) coordinating with the appropriate UI field specialist.(c) Boards shall ensure that:(1) Trade-affected workers are coenrolled in the WIOA Dislocated Worker program if they are eligible; and(2) Workforce Solutions Office staff completes the Trade Adjustment Assistance Coenrollment Declination Form if a trade-affected worker declines coenrollment.</content><note type="source"><p>Source Note: The provisions of this §849.21 adopted to be effective November 24, 2003, 28 TexReg 10510; amended to be effective January 12, 2015, 40 TexReg 270; amended to be effective July 18, 2022, 47 TexReg 4143.</p></note></section><section identifier="/us/state/tx/tac/t40/p20/c849/scC/s849.22"><num value="849.22">§849.22</num><heading>Postcertification of a Trade Petition</heading><content>(a) Boards shall ensure that:(1) trade-affected workers are referred to Workforce Innovation and Opportunity Act (WIOA) career and training services, consistent with WIOA eligibility criteria, the needs of the worker, and a Board's policies and procedures; and(2) the coenrollment of Trade-certified workers in WIOA Title I dislocated worker services shall not interfere with the timely provision of TAA services.(b) Boards shall ensure that prior to referring a trade-affected worker to WIOA career or training services, each of the following criteria are met and documented in the IEP:(1) An employment goal, including the targeted occupation and industry;(2) The proposed training program, if applicable;(3) Services that the worker will need to obtain suitable employment, including career services, support services provided through partner programs, and post-training case management services;(4) Supplemental assistance required for participation in training and the basis for cost calculation; and(5) The worker's responsibilities under the plan.(c) Boards shall ensure that the approval of Trade benefits and services is accomplished by state merit staff, including approval of training, waiver issuance, and the associated review and approval of waiver continuation.(d) Boards shall ensure that any denial of Trade benefits or services is accomplished by forwarding a recommendation to the Agency's TAA State Office unit for issuance of a formal appealable decision.</content><note type="source"><p>Source Note: The provisions of this §849.22 adopted to be effective November 24, 2003, 28 TexReg 10510; amended to be effective January 12, 2015, 40 TexReg 270; amended to be effective July 18, 2022, 47 TexReg 4143.</p></note></section><section identifier="/us/state/tx/tac/t40/p20/c849/scC/s849.23"><num value="849.23">§849.23</num><heading>Training</heading><content>(a) Boards shall ensure that Trade-funded training is approved as set forth in this subsection. Training must:(1) meet the criteria established in 20 Code of Federal Regulations §618.610;(2) use training providers that are licensed under applicable state law or exempt from such requirements, or possessing accreditation recognized by the United States Department of Education;(3) be specific to the worker's occupational goals;(4) meet the needs of employers and ensure the trade-affected worker has a reasonable expectation of employment; and(5) be capable of being completed and a degree or credential secured within the maximum time frame.(b) Boards shall ensure that the following types of career and training services are considered:(1) work-based training, including on-the-job training, customized training, and apprenticeship programs;(2) occupational training;(3) labor market information;(4) contextualized occupational training, particularly for Limited English Proficiency customers; and(5) remedial training, including literacy, particularly English as a Second Language, Adult Education and Literacy, or high school equivalency certificate training.</content><note type="source"><p>Source Note: The provisions of this §849.23 adopted to be effective November 24, 2003, 28 TexReg 10510; amended to be effective January 12, 2015, 40 TexReg 270; amended to be effective July 18, 2022, 47 TexReg 4143.</p></note></section></subchapter><subchapter identifier="/us/state/tx/tac/t40/p20/c849/scD"><num value="D">SUBCHAPTER D</num><heading>SUPPORT SERVICES</heading><section identifier="/us/state/tx/tac/t40/p20/c849/scD/s849.41"><num value="849.41">§849.41</num><heading>Support Services for Dislocated Workers Eligible for Trade Benefits</heading><content>(a) Boards shall ensure that support services available under Workforce Innovation and Opportunity Act Title I dislocated worker services are made available to dislocated workers eligible for Trade benefits under existing Board policies and procedures.(b) Support services may include payment or reimbursement from sources other than Trade Act funds for:(1) child care services that are governed by rules contained in Chapter 809 of this title;(2) local transportation services;(3) housing assistance, if necessary; and(4) dependent care.</content><note type="source"><p>Source Note: The provisions of this §849.41 adopted to be effective November 24, 2003, 28 TexReg 10510; amended to be effective July 18, 2022, 47 TexReg 4143.</p></note></section></subchapter><subchapter identifier="/us/state/tx/tac/t40/p20/c849/scE"><num value="E">SUBCHAPTER E</num><heading>COMPLAINTS AND APPEALS</heading><section identifier="/us/state/tx/tac/t40/p20/c849/scE/s849.51"><num value="849.51">§849.51</num><heading>Appeals of Commission Determinations on Trade Act Activities</heading><content>(a) A Commission determination or decision may be appealed by the party who is adversely affected by the decision. The decision shall include the information necessary to appeal the decision. Decisions that may be appealed include determinations pertaining to eligibility for Trade Act activities, services, and monetary allowances regarding a trade-affected worker's application for:(1) waivers of training;(2) job search allowances;(3) job relocation allowances;(4) Trade Readjustment Allowances;(5) training; and(6) any other appealable action allowable under the Trade Act.(b) Appeals under the Trade Act shall be in accordance with Texas Labor Code, Chapter 212, and Chapter 815 of this title, and as provided with the determination or decision.(c) Boards shall ensure that trade-affected workers are informed of their rights to appeal a determination related to certain non-Trade-funded activities and the procedures for an appeal of the determination, and for requesting a hearing from the Commission as specified in the applicable statutes and regulations relating to the services, including but not limited to Chapter 823 of this title.(d) Boards shall ensure that trade-affected workers are informed that if they fail without good cause to complete training, a job search, or a relocation, then a portion of the payment for the respective benefit may result in an overpayment. Boards must submit overpayment requests to the Agency's TAA State Office for a final determination.</content><note type="source"><p>Source Note: The provisions of this §849.51 adopted to be effective November 24, 2003, 28 TexReg 10510; amended to be effective July 18, 2022, 47 TexReg 4143.</p></note></section><section identifier="/us/state/tx/tac/t40/p20/c849/scE/s849.52"><num value="849.52">§849.52</num><heading>Discrimination Complaints</heading><content>(a) A trade-affected worker alleging discrimination on the basis of age, race, color, national origin, or physical or mental disability has a right to file a written complaint of alleged discriminatory acts within 180 calendar days from the date of the alleged discriminatory acts. Complaints shall be submitted to the Texas Workforce Commission Equal Opportunity Department, 101 East 15th Street, Room 220, Austin, Texas 78778-0001.(b) Boards shall ensure that the Board or the Board's service providers advise individuals who express an interest in filing a discrimination complaint of their right to file a complaint and the complaint procedures.</content><note type="source"><p>Source Note: The provisions of this §849.52 adopted to be effective November 24, 2003, 28 TexReg 10510; amended to be effective July 18, 2022, 47 TexReg 4143.</p></note></section></subchapter></chapter><chapter identifier="/us/state/tx/tac/t40/p20/c850"><num value="850">CHAPTER 850</num><heading>VOCATIONAL REHABILITATION SERVICES ADMINISTRATIVE RULES AND PROCEDURES</heading><subchapter identifier="/us/state/tx/tac/t40/p20/c850/scA"><num value="A">SUBCHAPTER A</num><heading>VOCATIONAL REHABILITATION GENERAL RULES</heading><section identifier="/us/state/tx/tac/t40/p20/c850/scA/s850.3"><num value="850.3">§850.3</num><heading>Definitions</heading><content>The following words and terms, when used in this chapter, have the following meanings, unless the context clearly indicates otherwise:(1) Agency--The unit of state government established under Texas Labor Code, Chapter 301, that is presided over by the Commission and administered by the executive director to operate the integrated workforce development system and administer the unemployment compensation insurance program in the State of Texas. The definition of "Agency" shall apply to all uses of the term in this chapter.(2) State Plan--The plan for vocational rehabilitation services submitted by the Vocational Rehabilitation Division in compliance with Title I of the Rehabilitation Act of 1973, as amended.(3) Vocational rehabilitation counselor--An Agency employee who is trained to provide vocational guidance and counseling and meets the minimum qualifications designated in a functional job description.</content><note type="source"><p>Source Note: The provisions of this §850.3 adopted to be effective March 12, 2012, 37 TexReg 1713; duplicated effective September 1, 2016, as published in the Texas Register September 2, 2016, 41 TexReg 6773; amended to be effective May 13, 2019, 44 TexReg 2364; amended to be effective December 26, 2022, 47 TexReg 8738.</p></note></section><section identifier="/us/state/tx/tac/t40/p20/c850/scA/s850.4"><num value="850.4">§850.4</num><heading>Opportunities for Citizen Participation</heading><content>In addition to other procedures listed in Part 2 of this title (relating to Department of Assistive and Rehabilitative Services), individuals with disabilities, parents of infants and toddlers with disabilities, and other citizens have the opportunity to:(1) voice concerns through public representation on Agency committees, councils, and boards;(2) attend and make public comments at open meetings (notices of all open meetings and agenda items are published in accordance with the Texas Open Meetings Act);(3) comment on all proposed rules; and(4) submit a petition requesting the adoption of rules pursuant to Chapter 800, Subchapter G of this title (relating to Petition for Adoption of Rules).</content><note type="source"><p>Source Note: The provisions of this §850.4 adopted to be effective March 12, 2012, 37 TexReg 1713; duplicated effective September 1, 2016, as published in the Texas Register September 2, 2016, 41 TexReg 6773; amended to be effective May 13, 2019, 44 TexReg 2364; amended to be effective December 26, 2022, 47 TexReg 8738.</p></note></section><section identifier="/us/state/tx/tac/t40/p20/c850/scA/s850.5"><num value="850.5">§850.5</num><heading>Complaints</heading><content>(a) Complaints may be filed with the Agency either through mail, email, phone, facsimile, or by videotape for individuals who use sign language to communicate. Complaints should be directed to the customer's local vocational rehabilitation office or may be submitted to the Agency's Customer Relations staff as indicated on the Agency's website.(b) For the purpose of directing complaints to the Agency, the Agency may notify customers and service recipients of its name, mailing address, and telephone number by including the information:(1) on each registration form, application, or written contract relating to participation in a program that is funded in any part by money derived from or through the Agency;(2) on a sign that is prominently displayed in the place of business of each individual or entity engaging in a program that is funded in any part by money derived from or through the Agency;(3) in a bill for service provided by an individual or entity engaging in a program that is funded in any part by money derived from or through the Agency; or(4) in other media for dissemination of information as determined by the Agency.(c) Ordinarily, the Agency resolves complaints within 60 days.</content><note type="source"><p>Source Note: The provisions of this §850.5 adopted to be effective March 12, 2012, 37 TexReg 1713; duplicated effective September 1, 2016, as published in the Texas Register September 2, 2016, 41 TexReg 6773; amended to be effective May 13, 2019, 44 TexReg 2364; amended to be effective December 26, 2022, 47 TexReg 8738.</p></note></section><section identifier="/us/state/tx/tac/t40/p20/c850/scA/s850.6"><num value="850.6">§850.6</num><heading>Cooperation with Other Public Agencies</heading><content>The Agency enters into appropriate cooperative arrangements with, and uses the services and facilities of, other federal, state, and local public agencies providing services related to rehabilitation of individuals with disabilities. The Agency also works toward maximum coordination and consultation with programs for and relating to rehabilitation of veterans with disabilities.</content><note type="source"><p>Source Note: The provisions of this §850.6 adopted to be effective March 12, 2012, 37 TexReg 1713; duplicated effective September 1, 2016, as published in the Texas Register September 2, 2016, 41 TexReg 6773; amended to be effective May 13, 2019, 44 TexReg 2364.</p></note></section><section identifier="/us/state/tx/tac/t40/p20/c850/scA/s850.7"><num value="850.7">§850.7</num><heading>Monitoring and Oversight of Vocational Rehabilitation Counselor Performance and Decision Making</heading><content>(a) The Vocational Rehabilitation Division will provide specific guidance to vocational rehabilitation (VR) counselors as required by Texas Labor Code, §352.104.(b) VR counselor supervisors shall ensure that VR counselors complete all required and necessary training.(c) VR counselor supervisors shall monitor VR counselor performance through case reviews, offer required training, and use other tools, as appropriate, to provide guidance and enhance VR counselor performance and decision making.</content><note type="source"><p>Source Note: The provisions of this §850.7 adopted to be effective December 26, 2022, 47 TexReg 8738.</p></note></section><section identifier="/us/state/tx/tac/t40/p20/c850/scA/s850.11"><num value="850.11">§850.11</num><heading>Qualified Vocational Rehabilitation Counselor</heading><content>(a) The Vocational Rehabilitation Division (VRD) develops and maintains a Comprehensive System of Personnel Development (CSPD). This system includes procedures to ensure VRD maintains an adequate supply of qualified personnel, referred to as Qualified Vocational Rehabilitation Counselors (QVRCs).(b) To classify as a QVRC, staff must meet specific state requirements related to education and experience. Standards for QVRCs serve as an internal control to ensure staff are sufficiently trained and prepared to effectively serve Texans with disabilities.(c) VR counselors are considered qualified to perform non-delegable duties upon meeting the minimum initial standards for hire, successful completion of required training, and an initial probationary period that allows demonstration of performance. The minimum initial standards for hire are aligned with 34 CFR §361.18(c)(1)(ii)(A) and the State of Texas VR Counselor Classification Schedule.(d) Minimum initial standards for hire as a VR counselor include the following education and experience requirements:(1) A bachelor's degree in a field of study reasonably related to vocational rehabilitation, to indicate a level of competency and skill demonstrating basic preparation in a field of study such as vocational rehabilitation counseling, social work, psychology, disability studies, business administration, human resources, special education, supported employment, customized employment, economics, or another field that reasonably prepares individuals to work with customers and employers; and(2) Demonstrated paid or unpaid experience, for not less than one year, consisting of:(A) Direct work with individuals with disabilities in a setting such as an independent living center;(B) Direct service or advocacy activities that provide such individual with experience and skills in working with individuals with disabilities; or(C) Direct experience in competitive integrated employment environments as an employer, as a small business owner or operator, or in self-employment, or other experience in human resources or recruitment, or experience in supervising employees, training, or other activities.(e) Within seven years from completion of the initial training year, a VR counselor is expected to achieve one or more of the following graduate education requirements:(1) A master's degree in rehabilitation counseling or clinical rehabilitation counseling;(2) A master's degree in counseling or a counseling-related field with required completion of specified coursework identified by the VR division;(3) A master's, specialist, or doctoral degree in specific majors with required specified coursework identified by the Agency's VR division;(4) A current certified rehabilitation counselor (CRC) certificate from the Commission on Rehabilitation Counselor Certification (CRCC); or(5) Current licensure for a licensed professional counselor (LPC).(f) VRD must conduct transcript reviews and/or confirm certifications to determine compliance with standards or to outline coursework to be completed by the VR counselor to meet graduate education requirements.(g) VRD helps VR counselors to advance as QVRCs by making funds available through the Qualified Vocational Rehabilitation Counselor (QVRC) program for the required graduate education except when:(1) unforeseen circumstances occur that may restrict or prohibit the funding; or(2) VRD management discontinues a VR counselor's participation in the program in the best interests of VRD.(h) The VRD director or designee must approve QVRC financial assistance. This financial assistance is contingent on:(1) funding;(2) VRD management approval; and(3) compliance with qualifications for participation.(i) Qualifications for participation in the QVRC program require that VR counselors and transition VR counselors applying for assistance must:(1) have completed the initial training year;(2) be meeting or exceeding job performance expectations;(3) obtain the appropriate approvals to pursue a graduate degree or prescribed coursework;(4) apply for Rehabilitation Services Administration scholarship and university stipend funding, if applicable; and(5) be accepted by an appropriate institution of higher education.(j) A VR counselor participating in the QVRC program is expected to pay all costs or expenses:(1) associated with the college application, admission, and GRE exam (reimbursement of one GRE exam is allowed);(2) related to tuition, fees, and books for any coursework that must be repeated because of failure to successfully complete; and(3) related to completing work necessary to remove any grade of "I" (Incomplete) unless compelling reasons exist and payment is approved by the VR division director or designee (for example, serious illness, or university regulations to the contrary).</content><note type="source"><p>Source Note: The provisions of this §850.11 adopted to be effective September 2, 2024, 49 TexReg 6751.</p></note></section></subchapter><subchapter identifier="/us/state/tx/tac/t40/p20/c850/scC"><num value="C">SUBCHAPTER C</num><heading>COUNCILS, BOARD, AND COMMITTEES</heading><section identifier="/us/state/tx/tac/t40/p20/c850/scC/s850.33"><num value="850.33">§850.33</num><heading>Tasks</heading><content>The Rehabilitation Council of Texas (RCT) shall:(1) review, analyze, and advise the Vocational Rehabilitation Division (VRD) about its performance of responsibilities, particularly those relating to:(A) eligibility determination (including order of selection);(B) the extent, scope, and effectiveness of services provided; and(C) functions performed by VRD that potentially affect the ability of individuals with disabilities to achieve rehabilitation goals and objectives;(2) advise VRD and, at its discretion, help prepare the State Plan for Vocational Rehabilitation Services; amendments to the plan; and applications, reports, needs assessments, and evaluations required;(3) to the extent feasible, review and analyze the effectiveness of, and customer satisfaction with:(A) the functions performed by state agencies and other public and private entities responsible for performing functions for individuals with disabilities; and(B) vocational rehabilitation services:(i) provided, or paid for from funds made available, under 29 United States Code (USC) §725, or through other public or private sources; and(ii) provided by state agencies and other public and private entities responsible for providing vocational rehabilitation services to individuals with disabilities; and(C) the employment outcomes achieved by individuals who receive services under 29 USC §725, including the availability of health and other employment benefits in connection with those employment outcomes;(4) coordinate with other councils in the state, including the State Independent Living Council established under 29 USC §796d; the advisory panel established under the Individuals with Disabilities Education Act, 20 USC §1412(a)(21); the State Council on Developmental Disabilities described in 42 USC §15025; the State Mental Health Planning Council established under 42 USC §300x-3(a); and the state workforce investment board;(5) advise VRD and coordinate working relationships between VRD and the State Independent Living Council and centers for independent living within the state; and(6) perform other comparable functions consistent with the Rehabilitation Act of 1973, as amended, that the RCT determines to be appropriate.</content><note type="source"><p>Source Note: The provisions of this §850.33 adopted to be effective March 12, 2012, 37 TexReg 1706; duplicated effective September 1, 2016, as published in the Texas Register September 2, 2016, 41 TexReg 6773; amended to be effective May 13, 2019, 44 TexReg 2364; amended to be effective December 26, 2022, 47 TexReg 8738.</p></note></section><section identifier="/us/state/tx/tac/t40/p20/c850/scC/s850.34"><num value="850.34">§850.34</num><heading>Reports</heading><content>The Rehabilitation Council of Texas shall:(1) prepare and submit an annual report to the governor or appropriate state entity and the Commission on the status of vocational rehabilitation programs operated within the state, and make the report available to the public; and(2) submit to the commissioner of the Rehabilitation Services Administration, United States Department of Education, periodic reports that the commissioner may reasonably request, and keep records that the commissioner finds necessary to verify those reports.</content><note type="source"><p>Source Note: The provisions of this §850.34 adopted to be effective March 12, 2012, 37 TexReg 1706; duplicated effective September 1, 2016, as published in the Texas Register September 2, 2016, 41 TexReg 6773; amended to be effective May 13, 2019, 44 TexReg 2364; amended to be effective December 26, 2022, 47 TexReg 8738.</p></note></section><section identifier="/us/state/tx/tac/t40/p20/c850/scC/s850.35"><num value="850.35">§850.35</num><heading>Funding</heading><content>The Rehabilitation Council of Texas is funded primarily by federal funds, and its existence is required in order for the Agency to receive and expend federal funds.</content><note type="source"><p>Source Note: The provisions of this §850.35 adopted to be effective March 12, 2012, 37 TexReg 1706; duplicated effective September 1, 2016, as published in the Texas Register September 2, 2016, 41 TexReg 6773; amended to be effective May 13, 2019, 44 TexReg 2364; amended to be effective December 26, 2022, 47 TexReg 8738.</p></note></section></subchapter><subchapter identifier="/us/state/tx/tac/t40/p20/c850/scD"><num value="D">SUBCHAPTER D</num><heading>PRIVACY AND CONFIDENTIALITY</heading><section identifier="/us/state/tx/tac/t40/p20/c850/scD/s850.50"><num value="850.50">§850.50</num><heading>Privacy Policies</heading><content>In accordance with Chapter 559, Government Code, the Agency adheres to the following privacy policies.(1) Right to be informed about information collected. An individual has the right to be informed about information that the Agency collects about the individual unless the Agency is allowed to withhold the information from the individual under Government Code, §552.023(b).(2) Right to receive notice about certain information laws and practices.(A) When the Agency collects information about an individual by means of a form that the individual completes and files with the Agency, the Agency informs the individual of his or her rights related to the information collected. If the form is in a paper format, the Agency posts a prominent notice of the individual's rights on the form. Or if the form is in an electronic format on an Internet site, the Agency prominently posts the notice on the Internet site in connection with the electronic form. The notice states that:(i) with few exceptions, the individual is entitled on request to be informed about the information that the Agency collects about the individual;(ii) under the Government Code, §552.021 and §552.023, the individual may receive and review the information; and(iii) under the Government Code, §559.004, the individual may have the Agency correct information about the individual that is incorrect.(B) When Agency staff uses an Internet site to collect information about an individual or about the computer network location or identity of a user of the site, the Agency prominently posts on the site what information the Agency is collecting, including such information being collected by means that are not obvious.(3) Right to correction of incorrect information. The Agency has established a procedure under which an individual may have the Agency correct information that the Agency possesses about the individual and that is incorrect. The individual should send a written request to the Agency, including his or her full name and mailing address; identify the incorrect information; and provide the correct information. If the information to be corrected is related to a vocational rehabilitation case, or to an Agency personnel or employment record, documentation establishing the individual's identity should be included. The individual should attach to the request any additional material needed to identify the incorrect information or verify the correct information. The individual should include with the request contact information such as address, a daytime telephone number and an email address in case the Agency needs to clarify the request. The individual must sign and mail the request to Records Management Center, ATTN: Records Management Officer, 4405A Springdale Road, Austin, Texas 78723-6050. The Agency will acknowledge receipt of the request, and will notify the individual of final action taken.(4) Applicability of Public Information Law. Government Code, Chapter 552, governs the charges that the Agency may impose on an individual who requests information that the Agency collects about himself or herself. However, the Agency does not charge an individual to correct information about the individual.</content><note type="source"><p>Source Note: The provisions of this §850.50 adopted to be effective March 12, 2012, 37 TexReg 1706; duplicated effective September 1, 2016, as published in the Texas Register September 2, 2016, 41 TexReg 6773; amended to be effective May 13, 2019, 44 TexReg 2364.</p></note></section><section identifier="/us/state/tx/tac/t40/p20/c850/scD/s850.51"><num value="850.51">§850.51</num><heading>Confidentiality of Customer Information in Vocational Rehabilitation Services Program</heading><content>(a) Customer records.(1) All personal information available to Agency employees as they administer rehabilitation services programs, including names, addresses, and records of customer evaluations, is confidential.(2) The Agency may use such information and records only for purposes directly connected with administering the vocational rehabilitation programs.(3) The Agency may directly or indirectly disclose information only in administering the rehabilitation programs, except with the customer's written consent, in compliance with a court order, or in accordance with a federal or state law or regulation. The Agency may not share information containing identifiable personal information with advisory or other bodies that do not have official responsibilities for administration of the programs.(4) Upon a customer's request, the Agency releases information to the customer or, as appropriate, his or her parent, guardian, or other representative. If, in the opinion of the counselor, release to the customer of a particular document in the customer case file will have a harmful effect on the customer, the customer will be notified that there is information in the case file that can be released only to an appropriate representative designated in writing by the customer.(5) All customer information is the property of the Agency.(b) Other records.(1) Release of customer records must be made in accordance with federal law and regulations.(2) The Agency may provide to and receive from any state agency other nonconfidential information for the purpose of increasing and enhancing services to customers and improving agency operations.</content><note type="source"><p>Source Note: The provisions of this §850.51 adopted to be effective March 12, 2012, 37 TexReg 1706; duplicated effective September 1, 2016, as published in the Texas Register September 2, 2016, 41 TexReg 6773; amended to be effective May 13, 2019, 44 TexReg 2364.</p></note></section></subchapter><subchapter identifier="/us/state/tx/tac/t40/p20/c850/scE"><num value="E">SUBCHAPTER E</num><heading>VOCATIONAL REHABILITATION SERVICES APPEALS AND HEARING PROCEDURES</heading><section identifier="/us/state/tx/tac/t40/p20/c850/scE/s850.60"><num value="850.60">§850.60</num><heading>Scope</heading><content>(a) The following statutes and regulations authorize the procedures established by this subchapter:(1) The Rehabilitation Act of 1973, as amended, 29 United States Code §701 et seq., and regulations of the United States Department of Education, Rehabilitation Services Administration, 34 Code of Federal Regulations (CFR) Part 361, as amended, relating to the State Vocational Rehabilitation Services Program;(2) 34 CFR Part 367, as amended, relating to the Independent Living Services for Older Individuals Who Are Blind (ILS-OIB); and(3) 34 CFR Part 370, as amended, relating to the Client Assistance Program.(b) The procedures in this subchapter apply to those determinations made by Agency personnel that affect the provision of vocational rehabilitation (VR) services and ILS-OIB.(1) Unless the determination concerns the denial, reduction, suspension, or termination of VR services or ILS-OIB, it is not subject to review under the procedures of this subchapter.(2) The following decisions or determinations are not subject to review under this subchapter:(A) Administrative decisions that are made by Agency supervisors or managers without reference to any specific applicant or customer and that apply generally to the provision of VR services to applicants or customers, including to decisions concerning the assignment of personnel;(B) Decisions, diagnoses, judgments, actions, or omissions of third-party vendors or service providers;(C) Decisions concerning the content of an applicant's or customer's record of service for which remedies are provided under 34 CFR §361.38(c)(4) and §361.47(a)(12); and(D) Decisions allegedly violating any state or federal antidiscrimination or civil rights statute (as amended), including the provisions of Texas Labor Code, Chapter 21; the Rehabilitation Act of 1973, as amended; the Americans with Disabilities Act, Section 504; or the Age Discrimination in Employment Act.(c) Ineligibility. The following may challenge a determination of ineligibility through the procedures of this subchapter:(1) Applicants who are found not to be eligible for VR services; and(2) Previously eligible individuals who have been determined no longer eligible for VR services under 34 CFR §361.43.(d) An individual's decision to seek an informal resolution of matters about which the individual is dissatisfied shall not prevent, compromise, or delay the individual's access to formal resolution procedures in this subchapter.(e) The Agency shall not suspend, reduce, or terminate VR services being provided to an applicant or customer, including evaluation and assessment services and the development of an Individualized Plan for Employment, pending a resolution of the applicant's or customer's appeal by mediation or hearing, unless:(1) the applicant or customer requests a suspension, reduction, or termination of services; or(2) the Agency has evidence that the applicant or customer obtained the services through misrepresentation, fraud, collusion, or criminal conduct.</content><note type="source"><p>Source Note: The provisions of this §850.60 adopted to be effective May 13, 2019, 44 TexReg 2364; amended to be effective December 26, 2022, 47 TexReg 8738.</p></note></section><section identifier="/us/state/tx/tac/t40/p20/c850/scE/s850.61"><num value="850.61">§850.61</num><heading>Definitions</heading><content>The following words and terms, when used in this subchapter, have the following meanings unless the context clearly indicates otherwise. The use of the singular or plural case is not meant to be limiting unless the context clearly indicates otherwise.(1) Act--The Rehabilitation Act of 1973 as amended, 29 United States Code §701, et seq. (2) Appellant--An applicant, eligible individual, authorized representative, or parent who has initiated formal procedures under this subchapter.(3) Applicant--An individual who submits an application for vocational rehabilitation services in accordance with 34 Code of Federal Regulations Part 361.(4) Authorized representative--An attorney authorized to practice law in the State of Texas, or an individual designated by a party to represent the party in hearing procedures. The term includes a parent or an individual made legally responsible for a child by a court of competent jurisdiction.(5) Customer--An applicant or an individual with a disability who is receiving vocational rehabilitation services.(6) Discovery--The process by which a party, before any final hearing on the merits, may obtain evidence and other information that is relevant to a claim or defense in the appeal.(7) Eligible individual--Any individual with a disability determined to be eligible to receive vocational rehabilitation services.(8) Hearing--A formal review conducted under this subchapter. This term includes prehearing conferences.(9) Impartial hearing officer (IHO)--An individual who is appointed to conduct a hearing under this subchapter.(10) Individualized Plan for Employment--A plan developed for each individual determined to be eligible for vocational rehabilitation services, in accordance with 34 Code of Federal Regulations Part 361.(11) Parent--The term "parent," whether singular or plural, means a minor child's natural or adoptive parent, the spouse of the minor child's natural or adoptive parent, the minor child's surrogate or foster parent, the spouse of the surrogate or foster parent, or other individual made legally responsible for the minor child by a court.(12) Party--An individual or agency named or admitted to participate in a formal hearing.(13) Record--The official record of a hearing, including all arguments, briefs, pleadings, motions, intermediate rulings, orders, evidence received or considered, statements of matters officially noticed, questions and offers of proof, objections and rulings on objections, proposed findings of fact, conclusions of law, and IHO decision; any other decision, opinion, or report by the IHO or Commission; and all memoranda or data, including customer and applicant files, submitted to or considered by the IHO.</content><note type="source"><p>Source Note: The provisions of this §850.61 adopted to be effective May 13, 2019, 44 TexReg 2364; amended to be effective December 26, 2022, 47 TexReg 8738.</p></note></section><section identifier="/us/state/tx/tac/t40/p20/c850/scE/s850.62"><num value="850.62">§850.62</num><heading>Filing a Request for Review</heading><content>(a) Any applicant or eligible individual who is dissatisfied with a determination made by the Agency, as described in §850.60 of this subchapter (relating to Scope), may request, or, if appropriate, may request through the individual's authorized representative, a review of the determination. Although no prescribed form is required to file a request, preprinted forms for this purpose are available on request within the Agency's Office of General Counsel or at any Agency vocational rehabilitation office.(b) The request for a review shall be filed within 180 calendar days from the date of the determination and shall be filed in writing with the hearings coordinator within the Agency's Office of General Counsel. A request shall be considered filed on the day that it is received by the hearings coordinator within the Agency's Office of General Counsel.(c) On receiving a request for review, the hearings coordinator within the Agency's Office of General Counsel shall, within five working days, mail the appellant:(1) the name, address, and telephone number of the Client Assistance Program established under federal law that can, among other things, assist and advocate for customers during an appeal and informal dispute resolution;(2) the name of the IHO appointed to hear the appeal, and the date, time, and place of any prehearing;(3) a copy of applicable hearing procedures; and(4) notice that the appellant has the right to request mediation procedures.</content><note type="source"><p>Source Note: The provisions of this §850.62 adopted to be effective May 13, 2019, 44 TexReg 2364; amended to be effective December 26, 2022, 47 TexReg 8738.</p></note></section><section identifier="/us/state/tx/tac/t40/p20/c850/scE/s850.63"><num value="850.63">§850.63</num><heading>Informal Dispute Resolution</heading><content>(a) The Agency shall provide an opportunity for informal resolution of an appeal.(b) Informal resolution may include, but is not limited to:(1) informal meetings with VR counselors or their supervisors;(2) second reviews of the case file and case decisions by VR management;(3) telephone calls to or conference calls that include the affected parties; or(4) written explanations or summaries of the policies, laws, or regulations involved in the complaint.(c) If the informal resolution procedure results in a final agreement between the parties, no hearing shall be held.(d) If no final informal resolution is reached, the Agency shall provide an opportunity for a hearing to resolve an appeal.(e) Either a final agreement resulting from informal resolution or a hearing and impartial hearing officer decision shall be completed within 60 calendar days of the original filing of the appeal, unless the parties agree to a specific extension of time.</content><note type="source"><p>Source Note: The provisions of this §850.63 adopted to be effective May 13, 2019, 44 TexReg 2364.</p></note></section><section identifier="/us/state/tx/tac/t40/p20/c850/scE/s850.64"><num value="850.64">§850.64</num><heading>Time for Hearing</heading><content>A hearing conducted under this chapter by an IHO selected in accordance with §850.65 of this subchapter (relating to Mediation Procedures), will be held within 60 days of an applicant's or eligible individual's request for review of an Agency determination that affects the provision of VR services to the individual, unless informal resolution or a mediation agreement is achieved before the 60th day or the parties agree to a specific extension of time.</content><note type="source"><p>Source Note: The provisions of this §850.64 adopted to be effective May 13, 2019, 44 TexReg 2364.</p></note></section><section identifier="/us/state/tx/tac/t40/p20/c850/scE/s850.65"><num value="850.65">§850.65</num><heading>Mediation Procedures</heading><content>(a) An applicant or eligible individual who has initiated a proceeding under this subchapter, may request, or may request through the individual's authorized representative, mediation to resolve the dispute. The Agency, with the consent of the applicant, eligible individual, or the authorized representative, as appropriate, may also originate the request for mediation.(b) Mediation is voluntary on the part of the parties. At any point during the mediation process, either party or the mediator may elect to terminate the mediation. In the event that mediation is terminated, either party may pursue resolution through an impartial hearing. Mediation shall not be used to deny or delay the right of an individual to a hearing under this subchapter, or to deny any other right afforded by the Act. Mediation shall be conducted by a qualified and impartial mediator who is trained in effective mediation techniques.(c) The Agency shall bear all costs related to the mediation process, consistent with this subchapter.(d) The request for mediation shall be filed in writing with the hearings coordinator within the Agency's Office of General Counsel. On receiving a request for mediation from the parties, the hearings coordinator shall randomly select an individual from a list of qualified mediators who are knowledgeable in laws and regulations relating to the provision of VR services, ILS-OIB, or the Business Enterprises of Texas program, whichever may apply to the dispute.(e) Sessions in the mediation process shall be coordinated by the mediator in a timely manner at a location convenient to both parties in the dispute. Parties shall be provided an opportunity to submit evidence and other information that supports their positions.(f) All discussions that occur during the mediation sessions are confidential and shall not be used as evidence in any subsequent due process hearing or civil proceeding. The mediator may require the parties to sign a confidentiality pledge before the start of the mediation process.(g) Any agreement reached through the mediation process shall be documented in a written mediation agreement and signed by the parties to the dispute. Copies shall be provided to both parties. The agreement then becomes a part of the customer record.</content><note type="source"><p>Source Note: The provisions of this §850.65 adopted to be effective May 13, 2019, 44 TexReg 2364.</p></note></section><section identifier="/us/state/tx/tac/t40/p20/c850/scE/s850.66"><num value="850.66">§850.66</num><heading>Assignment of Impartial Hearing Officer</heading><content>(a) The hearings coordinator, as described in §850.62 of this subchapter (relating to Filing a Request for Review), shall select, on a random basis, or by agreement between the Agency and the appellant, or if appropriate, the appellant's authorized representative or a parent, an IHO from a list of qualified IHOs maintained by the Agency.(b) The IHO shall be an individual who:(1) is not an employee of a public agency (other than an administrative law judge, hearing examiner, or employee of an institution of higher education);(2) has knowledge of the delivery of VR services, the state plan, and the federal and state regulations governing appeals under this chapter;(3) has received training specified by the Agency with respect to the performance of official duties; and(4) has no personal, professional, or financial interest that would conflict with his or her objectivity in the hearing.(c) An individual is not considered to be an employee of a public agency for the purposes of subsection (b) of this section solely because the individual is paid by the Agency to serve as a hearing officer.(d) Despite the provisions in subsection (a) of this section, if in a subsequent appeal, the appellant raises factual issues or claims that were previously adjudicated or could have been adjudicated in a prior appeal:(1) the hearings coordinator may appoint the same IHO that heard the prior appeal to hear the subsequent appeal; or(2) the IHO, on Agency motion, reassigns the appeal to the IHO who heard the prior appeal.</content><note type="source"><p>Source Note: The provisions of this §850.66 adopted to be effective May 13, 2019, 44 TexReg 2364.</p></note></section><section identifier="/us/state/tx/tac/t40/p20/c850/scE/s850.67"><num value="850.67">§850.67</num><heading>Powers and Duties of Impartial Hearing Officer</heading><content>(a) The IHO has the authority and duty to:(1) conduct a full and impartial hearing;(2) take action to avoid unnecessary delay in the disposition of the proceeding; and(3) maintain order.(b) The IHO has the power to regulate the course of the hearing, including the power to:(1) administer oaths;(2) take testimony;(3) rule on questions of evidence;(4) rule on discovery issues;(5) issue orders relating to hearing and prehearing matters, including orders granting motions to subpoena witnesses and imposing nonmonetary sanctions regarding discovery;(6) admit or deny party status;(7) limit irrelevant, immaterial, and unduly repetitious testimony and reasonably limit the time for presentations;(8) grant continuances;(9) request parties to submit legal memoranda, proposed findings of fact, and conclusions of law; and(10) issue decisions based on findings of fact and conclusions of law.(c) Unless required for the disposition of ex parte matters authorized by law, the IHO shall not directly or indirectly communicate in connection with any issue of fact or law with any party or a party's authorized representative, except on notice and opportunity for each party to participate.(d) Discovery conducted under subsection (b) of this section is subject to these rules and the Texas Administrative Procedure Act, Texas Government Code, Chapter 2001, Subchapter D.</content><note type="source"><p>Source Note: The provisions of this §850.67 adopted to be effective May 13, 2019, 44 TexReg 2364.</p></note></section><section identifier="/us/state/tx/tac/t40/p20/c850/scE/s850.68"><num value="850.68">§850.68</num><heading>Substitution of Impartial Hearing Officer</heading><content>(a) If for any reason an IHO is unable to continue presiding over a pending hearing, or issue a decision after the conclusion of the hearing, another IHO shall be designated as a substitute to complete the hearing and render a decision in accordance with these rules. Reasons may include, but are not limited to, withdrawal or reassignment to avoid the appearance of impropriety or partiality.(b) The substitute IHO may use the existing record and may conduct further proceedings as necessary and proper to conclude the hearing and render a decision.</content><note type="source"><p>Source Note: The provisions of this §850.68 adopted to be effective May 13, 2019, 44 TexReg 2364.</p></note></section><section identifier="/us/state/tx/tac/t40/p20/c850/scE/s850.69"><num value="850.69">§850.69</num><heading>Reasonable Accommodations</heading><content>(a) Any hearing or proceedings conducted under this subchapter shall be held, whenever feasible, by telephone (directly or by relay), at a time and place reasonably accessible to the appellant and any witnesses, and convenient for parties. In considering the physical location of a hearing or proceeding, the IHO shall consider, among other factors:(1) the suitability of any proposed facilities for a hearing, including the ability of the appellant and any witnesses to gain physical access to the proceedings and facilities; and(2) the comparative distances and times required to travel from places of work or residence to a proposed hearing location by parties and witnesses.(b) The Agency shall, upon reasonable notice, provide the appellant with readers or interpreters. Reasonable notice shall be considered to be no fewer than five working days prior to the proceeding, unless good cause for a shorter period exists in the judgment of the IHO.(c) A copy of a transcript prepared during hearing proceedings and all notices and documents shall be provided to the appellant in an accessible format on request.(d) The Agency shall bear the costs related to providing reasonable accommodations for hearings or proceedings conducted under this subchapter.</content><note type="source"><p>Source Note: The provisions of this §850.69 adopted to be effective May 13, 2019, 44 TexReg 2364; amended to be effective December 26, 2022, 47 TexReg 8738.</p></note></section><section identifier="/us/state/tx/tac/t40/p20/c850/scE/s850.70"><num value="850.70">§850.70</num><heading>Appearance of Parties at Hearings; Representation</heading><content>(a) An individual may represent himself or herself.(b) A party may be represented by an attorney authorized to practice law in Texas or by any other representative authorized by the party to represent the party.(c) A party's authorized representative shall be copied on all notices, pleadings, and other correspondence.(d) A party's authorized representative remains the representative of record in absence of a formal request to withdraw and an order approving such withdrawal issued by the IHO.(e) The Agency is not responsible for expenses incurred by appellants seeking remedy under this subchapter and representation and attorney fees and related expenses are the responsibility of the individual parties.</content><note type="source"><p>Source Note: The provisions of this §850.70 adopted to be effective May 13, 2019, 44 TexReg 2364.</p></note></section><section identifier="/us/state/tx/tac/t40/p20/c850/scE/s850.71"><num value="850.71">§850.71</num><heading>Failure to Attend Hearing and Default</heading><content>If, after receiving notice of a hearing, a party or the party's authorized representative fails to attend the hearing, the IHO may proceed and, when appropriate, issue a default decision against the absent party.</content><note type="source"><p>Source Note: The provisions of this §850.71 adopted to be effective May 13, 2019, 44 TexReg 2364.</p></note></section><section identifier="/us/state/tx/tac/t40/p20/c850/scE/s850.72"><num value="850.72">§850.72</num><heading>Witness Fees</heading><content>(a) Any witness or deponent who is not a party to, and who is subpoenaed or otherwise appears at, any hearing or proceeding at the request of the Agency is entitled to receive reimbursement as provided under Texas Government Code §2001.103.(b) The Agency is not responsible for expenses incurred by any witness or deponent who is not a party to, and who is subpoenaed or otherwise appears at, any hearing or proceeding at the request of the appellant.(c) The party calling or deposing an expert witness is responsible for all fees and expenses charged by the expert witness.</content><note type="source"><p>Source Note: The provisions of this §850.72 adopted to be effective May 13, 2019, 44 TexReg 2364.</p></note></section><section identifier="/us/state/tx/tac/t40/p20/c850/scE/s850.73"><num value="850.73">§850.73</num><heading>Prehearing Conferences</heading><content>(a) The IHO may hold a prehearing conference to resolve matters preliminary to the hearing. At the discretion of the IHO, a prehearing conference may be held by telephone (directly or by relay). A prehearing conference may be convened to address any or all of the following matters:(1) notice of jurisdiction or the IHO's authority;(2) scope or party status;(3) the date and location of the final hearing;(4) factual and legal issues;(5) motions;(6) issuance of subpoenas;(7) discovery disputes;(8) scheduling;(9) stipulations;(10) settlement conferences;(11) requests for official notice;(12) identification and exchange of documentary evidence;(13) admissibility of evidence;(14) identification and qualification of witnesses;(15) order of presentation; and(16) other matters that promote the orderly and prompt conduct of the hearing.(b) Within five business days of the date on which the IHO receives the appellant's petition or request for review, the IHO shall notify the appellant in writing of any other matters that the IHO considers expedient for an orderly conduct of the prehearing, including the following:(1) the final or merits hearing will be held within 60 days after the date when the hearings coordinator received the petition or request for review;(2) the appellant's right to request mediation;(3) the reasons for the prehearing conference;(4) the way the appellant might request a continuance of the prehearing conference;(5) the effect of failing to participate in a prehearing conference; and(6) the appellant's right to be represented.</content><note type="source"><p>Source Note: The provisions of this §850.73 adopted to be effective May 13, 2019, 44 TexReg 2364.</p></note></section><section identifier="/us/state/tx/tac/t40/p20/c850/scE/s850.74"><num value="850.74">§850.74</num><heading>Dismissal without Hearing</heading><content>(a) The IHO may entertain motions for dismissal without a hearing for the following reasons:(1) failure to pursue the hearing;(2) unnecessary duplication of proceedings, res judicata, or collateral estoppel;(3) withdrawal of the request for hearing;(4) moot questions;(5) lack of jurisdiction;(6) failure to raise a material issue in the pleading;(7) failure of a party or authorized representative to appear at a scheduled hearing;(8) failure to respond to a discovery request; and(9) failure to respond to any order by the IHO, including an order to disclose the identities of witnesses and exhibits.(b) If the IHO finds that a motion for dismissal should be granted, he or she may enter a final order of dismissal.</content><note type="source"><p>Source Note: The provisions of this §850.74 adopted to be effective May 13, 2019, 44 TexReg 2364.</p></note></section><section identifier="/us/state/tx/tac/t40/p20/c850/scE/s850.75"><num value="850.75">§850.75</num><heading>Conduct of Hearing</heading><content>(a) On a genuine issue in a contested case, each party or authorized representative is entitled to:(1) call witnesses, including other parties;(2) offer evidence;(3) cross-examine any witness called by another party; and(4) make opening and closing statements.(b) Once the hearing has begun, the parties and authorized representatives shall only be off the record when the IHO permits. If the discussion off the record is pertinent, then the IHO summarizes the discussion for the record.(c) Objections shall be noted in the record in a timely manner.(d) The IHO may continue a hearing from time to time and from place to place. If the time and place for the hearing to reconvene are not announced at the hearing, a notice shall be mailed stating the time and place of the hearing.(e) The IHO may question witnesses and parties and/or direct the submission of supplemental evidence.</content><note type="source"><p>Source Note: The provisions of this §850.75 adopted to be effective May 13, 2019, 44 TexReg 2364.</p></note></section><section identifier="/us/state/tx/tac/t40/p20/c850/scE/s850.76"><num value="850.76">§850.76</num><heading>Order of Proceedings</heading><content>(a) A case shall be called to order by the IHO.(b) Proceedings under this subchapter are conducted according to the following provisions:(1) The appellant may briefly state the nature of the claim or defense, what the appellant expects to prove, and the relief sought. Immediately thereafter, the Agency may make a similar statement, and any other parties are afforded similar rights as determined by the IHO. The IHO may limit the time available for each party or authorized representative with respect to such statement.(2) Evidence is introduced by the appellant. The Agency, or its authorized representative, and any other parties may cross-examine each of the appellant's witnesses.(3) Cross-examination is not limited solely to matters raised on direct examination. Parties or authorized representatives are entitled to redirect and recross-examination.(4) Unless the statement has already been made, the Agency or its authorized representative may briefly state the nature of the claim or defense, what the Agency expects to prove, and the relief sought.(5) Evidence, if any, is introduced by the Agency. The appellant and any other parties may cross-examine each of the Agency's witnesses.(6) Any other parties may make statements and introduce evidence. The appellant and the Agency may cross-examine the other parties' witnesses.(7) The parties may present rebuttal evidence.(8) The parties may be allowed to make either oral or written closing statements at the discretion of the IHO.(9) The IHO may examine any witness and party.(c) The IHO may permit deviations from this order of procedure in the interest of justice or to expedite the proceedings.(d) Parties shall provide four copies of each exhibit offered.(e) Burden of proof. The party seeking affirmative relief, either on the case as a whole or on an issue, bears the burden of proof to prove the affirmative of the issue, or the party's case as a whole, by a preponderance of the evidence.</content><note type="source"><p>Source Note: The provisions of this §850.76 adopted to be effective May 13, 2019, 44 TexReg 2364.</p></note></section><section identifier="/us/state/tx/tac/t40/p20/c850/scE/s850.77"><num value="850.77">§850.77</num><heading>Rules of Evidence</heading><content>(a) The rules of evidence as applied in nonjury civil cases by the district courts of the State of Texas apply to a hearing under this subchapter.(b) Exceptions--evidence inadmissible under the rules of evidence applied in nonjury civil cases by the district courts of the State of Texas may be admitted:(1) if it consists of any documents contained in any Agency file related to the appellant; or(2) if it is:(A) necessary to ascertain the facts not reasonably susceptible of proof under those rules;(B) not precluded by statute; and(C) of a type on which reasonably prudent individuals commonly rely in the conduct of their affairs.(c) Irrelevant, immaterial, or unduly repetitious evidence shall be excluded.</content><note type="source"><p>Source Note: The provisions of this §850.77 adopted to be effective May 13, 2019, 44 TexReg 2364.</p></note></section><section identifier="/us/state/tx/tac/t40/p20/c850/scE/s850.78"><num value="850.78">§850.78</num><heading>Transcription of Proceedings</heading><content>(a) Unless precluded by law, the hearing shall be recorded electronically by tape recorder or similar device either by the IHO or by someone designated by the IHO. The recording is the official record of the testimony offered as evidence during the hearing. Any party, however, may request, at the party's expense, that the hearing be recorded by a court reporter if the request is made no later than 10 days before the date of the hearing.(b) In lieu of a recording of the testimony electronically or of the reporting of testimony by a court reporter, the parties to a hearing may agree upon a statement of the evidence, agree to use recorded transcriptions as a statement of the testimonial evidence, or agree to the summarization of testimony before the IHO, provided, however, that proceedings or any part of them shall be transcribed on written request of any party.(c) Unless otherwise provided in this subchapter, the party requesting a transcription of any electronic recording of the proceedings shall bear the cost for transcribing any such electronically recorded testimony. Nothing provided for in this section limits the Agency to a stenographic record of the proceedings.</content><note type="source"><p>Source Note: The provisions of this §850.78 adopted to be effective May 13, 2019, 44 TexReg 2364.</p></note></section><section identifier="/us/state/tx/tac/t40/p20/c850/scE/s850.79"><num value="850.79">§850.79</num><heading>Prepared Testimony</heading><content>In all proceedings and after all parties of record have been given copies, the prepared testimony of a witness on direct examination may be incorporated in the record as if read or received as an exhibit. The prepared testimony may be in narrative or question-and-answer form. The witness shall be sworn and shall identify the testimony. The witness is subject to cross-examination, and the prepared testimony is subject to a motion to strike in whole or in part.</content><note type="source"><p>Source Note: The provisions of this §850.79 adopted to be effective May 13, 2019, 44 TexReg 2364.</p></note></section><section identifier="/us/state/tx/tac/t40/p20/c850/scE/s850.80"><num value="850.80">§850.80</num><heading>Pleadings</heading><content>(a) In a formal appeal, all pleadings, for which no other form is prescribed, shall contain:(1) the name of the party making the pleading;(2) the names of all other known parties;(3) a concise statement of the facts alleged and relied upon;(4) a request stating the type of relief, action, or order desired;(5) any other matter required by law;(6) a certificate of service, as required by these rules; and(7) the signature of the party or the party's authorized representative making the pleading.(b) Any pleading filed in a formal appeal may be amended up to 14 days before the date of the hearing. Amendments filed after that time may be accepted at the discretion of the IHO.(c) Any pleading may adopt and incorporate, by specific reference, any part of any document or entry in the official files and records of the Agency.(d) All pleadings relating to any matter pending before the Agency shall be sent to Texas Workforce Commission, Office of General Counsel, 101 E. 15th Street, Room 608, Austin, Texas 78778-0001, with the notation "Attention: Hearings Coordinator," or delivered to the Agency at that address to be filed with the IHO and all parties.(e) All pleadings shall be in a format and medium reasonably calculated to provide the required information and must be clear and legible.(f) Pleadings shall contain the name, address, and telephone number of the party filing the document or the name, telephone number, and business address of the authorized representative.(g) A certificate of service shall be contained in or attached to all filings. The certificate shall be signed by the individual making the filing, show the manner of service, state that the filing has been served on all other parties, and identify those parties. The certificate is prima facie evidence of service.</content><note type="source"><p>Source Note: The provisions of this §850.80 adopted to be effective May 13, 2019, 44 TexReg 2364.</p></note></section><section identifier="/us/state/tx/tac/t40/p20/c850/scE/s850.81"><num value="850.81">§850.81</num><heading>Discovery and Mandatory Disclosures</heading><content>(a) Written Discovery. Requests for disclosure of information shall be the only form of written discovery that the parties are entitled to make. Unless a party is ordered by the IHO during a pretrial conference to disclose other information in addition to the items in this section, a party may request in writing that the other party disclose or produce the following:(1) the names, addresses, and telephone numbers of individuals having knowledge of relevant facts, including those who might be called as witnesses and any expert who might be called to testify;(2) for any testifying expert:(A) the subject matter on which the expert will testify;(B) the expert's summary; and(C) a brief summary of the substance of the expert's mental impressions and opinions and the basis for them, along with all documents and tangible items reflecting such information;(3) the issues and the factual basis for a party's claims and defenses in the appeal; and(4) information concerning the appellant's employment, including the appellant's job application with the appellant's current employer and any personnel evaluations.(b) Subject to the provisions in this section, parties may obtain discovery regarding any matter that is relevant to a claim or defense in the appeal.(c) All discovery requests shall be directed to the party from which discovery is being sought.(d) All disputes with respect to any discovery matter shall be filed with and resolved by the IHO.(e) All parties shall be afforded a reasonable opportunity to file objections and motions to compel the IHO regarding any discovery requests.(f) Copies of discovery requests and documents filed in response thereto shall be filed on all parties, but should not be filed with the IHO or the hearings coordinator unless directed to do so by the IHO or when in support of objections, motions to compel, motions for protective order, or motions to quash.(g) Any documents contained in any Agency file that are related to the appellant are considered to be admissible. The Agency shall, without awaiting either an order or a discovery request under subsection (a) of this section, provide to the appellant a complete copy of the appellant's record of services, as described at 34 CFR §361.47, including any electronically stored or preserved records, to the extent pertinent to the determination that is the subject of the request for review.</content><note type="source"><p>Source Note: The provisions of this §850.81 adopted to be effective May 13, 2019, 44 TexReg 2364.</p></note></section><section identifier="/us/state/tx/tac/t40/p20/c850/scE/s850.82"><num value="850.82">§850.82</num><heading>Documentary Evidence and Official Notice</heading><content>(a) Documentary evidence may be received in the form of copies or excerpts if the original is not readily available. On request, parties shall be given an opportunity to compare the original and the copy or excerpt.(b) When numerous similar documents that are otherwise admissible are offered into evidence, the IHO may limit the documents received to those that are typical and representative. The IHO may also require that an abstract of relevant data from the documents be presented in the form of an exhibit, provided that all parties are given the right to examine the documents from which such abstracts were made.(c) The following laws, rules, regulations, and policies are officially noticed:(1) The Rehabilitation Act of 1973, as amended, 29 United States Code §701, et seq. ;(2) United States Department of Education regulations, 34 Code of Federal Regulations Parts 361 and 367;(3) The Agency's State Plan for Vocational Rehabilitation Services;(4) The Agency's Vocational Rehabilitation and Independent Living for Older Individuals Who Are Blind policy manuals; and(5) Texas Administrative Code, Title 40, Part 20, Texas Workforce Commission.(d) Official notice also may be taken of:(1) all facts that are judicially cognizable; and(2) generally recognized facts within the area of the Agency's specialized knowledge.</content><note type="source"><p>Source Note: The provisions of this §850.82 adopted to be effective May 13, 2019, 44 TexReg 2364; amended to be effective December 26, 2022, 47 TexReg 8738.</p></note></section><section identifier="/us/state/tx/tac/t40/p20/c850/scE/s850.83"><num value="850.83">§850.83</num><heading>Continuance</heading><content>(a) The IHO, at his or her discretion, may grant a continuance to further the interests of justice. No motion for continuance shall be granted, unless it is made in writing or stated in the record, and the motion shall set forth the specific grounds upon which the party seeks the continuance.(b) Unless made during a prehearing or hearing, a party seeking a continuance, cancellation of a scheduled proceeding, or extension of an established deadline shall file such motion no later than 10 days before the date or deadline in question. A motion filed fewer than 10 days before the date or deadline in question shall contain a certification that the requestor contacted the other party or party's authorized representative and whether the request is opposed by the party or party's authorized representative. Further, if a continuance to a certain date is sought, the motion shall include a proposed date or dates and must indicate whether the other party or party's authorized representative contacted agrees on the proposed new date or dates.</content><note type="source"><p>Source Note: The provisions of this §850.83 adopted to be effective May 13, 2019, 44 TexReg 2364.</p></note></section><section identifier="/us/state/tx/tac/t40/p20/c850/scE/s850.84"><num value="850.84">§850.84</num><heading>Impartial Hearing Officer Decision</heading><content>(a) Within 30 days of the hearing completion date, the IHO shall issue a decision that is based on the evidence and consistent with the provisions of the approved State Plan; the Act, as amended; federal vocational rehabilitation regulations, state regulations, and policies that are consistent with federal requirements, and shall provide to the appellant or, if appropriate, the appellant's authorized representative, and the Agency's authorized representative or the Agency's Office of General Counsel, as appropriate, a full written report of the findings of fact, conclusions of law, and any other grounds for the decision.(b) The decision shall address each issue considered by the IHO.(c) The IHO may prescribe such remedies as are appropriate within the scope of, and permitted by, as applicable, Texas Labor Code, Chapter 352; the Act, as amended; the regulations of the Rehabilitation Services Administration of the United States Department of Education, 34 Code of Federal Regulations Parts 361 and 365; and the Agency's policies and rules.(1) The IHO shall not award restitutionary, compensatory, or monetary relief, including monetary damages, to any party.(2) The IHO shall not prescribe an action affecting the employment of an Agency employee.</content><note type="source"><p>Source Note: The provisions of this §850.84 adopted to be effective May 13, 2019, 44 TexReg 2364; amended to be effective December 26, 2022, 47 TexReg 8738.</p></note></section><section identifier="/us/state/tx/tac/t40/p20/c850/scE/s850.85"><num value="850.85">§850.85</num><heading>Finality of the Hearing Officer's Decision</heading><content>The decision of the IHO is the final decision of the Agency, and, if no timely motion for reconsideration is filed, becomes the final decision.</content><note type="source"><p>Source Note: The provisions of this §850.85 adopted to be effective May 13, 2019, 44 TexReg 2364.</p></note></section><section identifier="/us/state/tx/tac/t40/p20/c850/scE/s850.86"><num value="850.86">§850.86</num><heading>Implementation of Final Decision</heading><content>If a party brings a civil action to challenge a final decision of an IHO, the final decision involved shall be implemented pending review by the court.</content><note type="source"><p>Source Note: The provisions of this §850.86 adopted to be effective May 13, 2019, 44 TexReg 2364.</p></note></section><section identifier="/us/state/tx/tac/t40/p20/c850/scE/s850.87"><num value="850.87">§850.87</num><heading>Motion for Reconsideration</heading><content>(a) Any party to a hearing may file a motion for reconsideration within 20 days after the party is notified of the issuance of the IHO's decision. The motion shall be filed with the hearings coordinator within the Agency's Office of General Counsel.(b) The motion for reconsideration shall specify the matters in the IHO's decision that the party considers to be erroneous. Any response to the motion for reconsideration shall be filed no later than 30 days after a party, or a party's attorney or representative, is notified of the IHO's issuance of the decision.(c) The IHO shall rule on the motion for reconsideration no later than 15 days after receipt of the motion for reconsideration, or after receipt of the response to the motion for reconsideration, whichever comes later. If the motion for reconsideration is granted, the IHO issues a decision upon reconsideration within an additional 15 days. If the IHO fails to rule on the motion for reconsideration within 15 days, the motion for reconsideration is denied as a matter of law.(d) Service. Service of the IHO's decision or of a motion for reconsideration or response under this section shall be made by any of the following means to a party, a party's attorney, or a party's representative:(1) hand-delivery;(2) courier-receipted delivery;(3) regular first-class mail, certified mail, or registered mail;(4) e-mail or facsimile transmission before 5:00 p.m. on a business day to the recipient's current e-mail address or telecopier number; or(5) such other means as the IHO may direct.(e) Date of service. The date of service is the date of hand-delivery, delivery by courier, mailing, e-mailing, or facsimile transmission, unless otherwise required by law. Unless the contrary is shown, a decision, motion, or response that is sent by regular first-class mail is presumed to have been received within three days of the date of postmark, if enclosed in a wrapper addressed to the recipient's last known address with return address to the sender, stamped with the appropriate first-class postage, and deposited with the US Postal Service on the date postmarked.</content><note type="source"><p>Source Note: The provisions of this §850.87 adopted to be effective May 13, 2019, 44 TexReg 2364.</p></note></section><section identifier="/us/state/tx/tac/t40/p20/c850/scE/s850.88"><num value="850.88">§850.88</num><heading>Civil Action</heading><content>(a) Any party that disagrees with the findings and decision of an IHO has a right to bring a civil action in any court of competent jurisdiction without regard to the amount in controversy, consistent with 34 CFR §361.57(i).(b) An individual must initiate a civil action for review of an IHO's decision by filing a petition not later than the 30th day after the date on which the decision that is the subject of complaint is final and appealable.</content><note type="source"><p>Source Note: The provisions of this §850.88 adopted to be effective May 13, 2019, 44 TexReg 2364.</p></note></section><section identifier="/us/state/tx/tac/t40/p20/c850/scE/s850.89"><num value="850.89">§850.89</num><heading>Computation of Time</heading><content>(a) In computing any period of time prescribed or allowed by the rules in this subchapter, by order of an IHO, or by any applicable statute, the day of the act, event, or default after which the designated period of time begins to run is not included.(b) Unless otherwise provided by the rules in this subchapter, the last day of the period so computed is included, unless it is a Saturday, Sunday, or legal holiday, in which event the period runs until the end of the next day that is not a Saturday, Sunday, or legal holiday. Saturdays, Sundays, and legal holidays shall not be counted for any purpose in any time period of five days or fewer.(c) In computing the time periods required for filing a motion for reconsideration, as set forth at §850.87 of this subchapter (relating to Motion for Reconsideration), and for appealing a final decision of an IHO to a court, as set forth at §850.88 of this subchapter (relating to Civil Action), Saturdays, Sundays, and legal holidays are included.</content><note type="source"><p>Source Note: The provisions of this §850.89 adopted to be effective May 13, 2019, 44 TexReg 2364.</p></note></section></subchapter><subchapter identifier="/us/state/tx/tac/t40/p20/c850/scF"><num value="F">SUBCHAPTER F</num><heading>MEMORANDUM OF UNDERSTANDING</heading><section identifier="/us/state/tx/tac/t40/p20/c850/scF/s850.130"><num value="850.130">§850.130</num><heading>Memorandum of Understanding Regarding Continuity of Care for Physically Disabled Inmates</heading><content>(a) The Agency adopts by reference the memorandum of understanding (MOU) between the Texas Department of Criminal Justice, Texas Department of Aging and Disability Services, and Texas Department of State Health Services. The MOU contains the agreement required by Texas Health and Safety Code §§614.014 - 614.015 to establish the respective responsibilities of these agencies to institute a continuity of care and service program for offenders in the criminal justice system who are physically disabled, terminally ill, or significantly ill.(b) The text of the MOU is in rule 37 TAC, Part 6, §159.19 (relating to Continuity of Care and Services Program for Offenders who are Elderly, Terminally Ill, Significantly Ill or with a Physical Disability or Having a Mental Illness).</content><note type="source"><p>Source Note: The provisions of this §850.130 adopted to be effective December 10, 2012, 37 TexReg 9643; duplicated effective September 1, 2016, as published in the Texas Register September 2, 2016, 41 TexReg 6773; amended to be effective May 13, 2019, 44 TexReg 2364.</p></note></section><section identifier="/us/state/tx/tac/t40/p20/c850/scF/s850.131"><num value="850.131">§850.131</num><heading>Memorandum of Understanding Regarding the Exchange and Distribution of Public Awareness Information</heading><content>(a) The Agency adopts by reference the memorandum of understanding (MOU) between the Texas Health and Human Services Commission, the Texas Department of Aging and Disability Services, and the Texas Department of State Health Services.(b) The MOU is the agreement required by Texas Human Resources Code §22.013, which authorizes and requires the exchange and distribution among the agencies of public awareness information relating to services provided by or through the agencies.(c) The text of the MOU is located in 40 TAC, Part 1, §72.301 (relating to Authorization and Requirement to Exchange and Distribute Public Awareness Information).</content><note type="source"><p>Source Note: The provisions of this §850.131 adopted to be effective December 10, 2012, 37 TexReg 9643; duplicated effective September 1, 2016, as published in the Texas Register September 2, 2016, 41 TexReg 6773; amended to be effective May 13, 2019, 44 TexReg 2364.</p></note></section><section identifier="/us/state/tx/tac/t40/p20/c850/scF/s850.132"><num value="850.132">§850.132</num><heading>Memorandum of Understanding Concerning Coordination of Services to Individuals with Disabilities</heading><content>(a) The Agency adopts by reference the memorandum of understanding (MOU) between the Texas Health and Human Services Commission, the Texas Department of Aging and Disability Services, the Texas Department of State Health Services, the Texas Department of Family and Protective Services, and the Texas Education Agency.(b) The MOU is the agreement required by Texas Human Resources Code §22.011, to facilitate the coordination of services to individuals with disabilities by establishing the respective responsibilities of the agencies regarding the coordination of services to individuals with disabilities.(c) The text of the MOU is located in 40 TAC Part 1, §§72.201 - 72.212 (relating to Memorandum of Understanding Concerning Coordination of Services to Persons With Disabilities).</content><note type="source"><p>Source Note: The provisions of this §850.132 adopted to be effective December 10, 2012, 37 TexReg 9643; duplicated effective September 1, 2016, as published in the Texas Register September 2, 2016, 41 TexReg 6773; amended to be effective May 13, 2019, 44 TexReg 2364.</p></note></section></subchapter></chapter><chapter identifier="/us/state/tx/tac/t40/p20/c853"><num value="853">CHAPTER 853</num><heading>INDEPENDENT LIVING SERVICES FOR OLDER INDIVIDUALS WHO ARE BLIND</heading><subchapter identifier="/us/state/tx/tac/t40/p20/c853/scA"><num value="A">SUBCHAPTER A</num><heading>INDEPENDENT LIVING SERVICES FOR OLDER INDIVIDUALS WHO ARE BLIND</heading><section identifier="/us/state/tx/tac/t40/p20/c853/scA/s853.1"><num value="853.1">§853.1</num><heading>Definitions</heading><content>In addition to the definitions contained in Texas Labor Code §352.001, 34 CFR §361.5, and §856.3 of this title (relating to Definitions) of the Agency's Vocational Rehabilitation Division rules, the following words and terms, when used in this chapter, shall have the following meanings:(1) Act--The Rehabilitation Act of 1973, as amended (29 USC 701 et seq.). (2) Adjusted income--The dollar amount that is equal to a household's annual gross income, minus allowable deductions. (3) Applicant--An individual who applies for Older Individuals Who Are Blind (OIB) services.(4) Attendant care--A personal assistance service provided to an individual with significant disabilities to aid in performing essential personal tasks, such as bathing, communicating, cooking, dressing, eating, homemaking, toileting, and transportation.(5) Blind--An individual having not more than 20/200 visual acuity in the better eye with correcting lenses or visual acuity greater than 20/200 but with a limitation in the field of vision such that the widest diameter of the visual field subtends an angle no greater than 20 degrees.(6) Center for Independent Living (CIL)--Has the meaning assigned by §702 of the Act (29 USC §796a).(7) Client Assistance Program (CAP)--A federally funded program under 34 CFR Part 370 that provides information, assistance, and advocacy for individuals with disabilities who are seeking or receiving services from programs funded under the Act. In Texas, the designated agency is Disability Rights Texas (DRTx).(8) Comparable services or benefits--Services and benefits that are provided or paid for, in whole or part, by other federal, state, or local public programs, or by health insurance, third-party payers, or other private sources.(9) Customer--An individual who is eligible for and receiving OIB services under this chapter.(10) Customer participation system--The system for determining and collecting the financial contribution that a customer may be required to pay for receiving OIB services. (11) Customer representative--Any individual chosen by a customer, including the customer's parent, guardian, other family member, or advocate. If a court has appointed a guardian or representative, that individual is the customer's representative. (12) Federal Poverty Guidelines--The poverty guidelines updated periodically in the Federal Register by the US Department of Health and Human Services under the authority of 42 USC §9902(2), found at https://aspe.hhs.gov/poverty-guidelines. (13) Independent Living Plan (ILP)--A written plan in which the customer and OIB staff have collaboratively identified the services that the customer needs to achieve the goal of living independently.(14) Low vision--A condition of having a visual acuity not more than 20/70 in the better eye with correcting lenses, or visual acuity greater than 20/70 but with a limitation in the field of vision such that the widest diameter of the visual field subtends an angle no greater than 30 degrees, or having a combination of both.(15) Older Individuals Who Are Blind (OIB)--The independent living services program that serves individuals ages 55 and over who are blind or visually impaired.(16) Significant disability--A significant physical, mental, cognitive, or sensory impairment that substantially limits an individual's ability to function independently in the family or community.(17) Significant visual impairment--A disease or condition of the eye that does not meet the definitions of Blind or Low Vision but does create a significant impediment to independent living and cannot be corrected with glasses or contact lenses.(18) Transition services--Services that:(A) facilitate the transition of individuals with significant disabilities from nursing homes and other institutions to home and community-based residences, with the requisite supports and services; and(B) provide assistance to individuals with significant disabilities who are at risk of entering institutions so that the individuals may remain in the community.</content><note type="source"><p>Source Note: The provisions of this §853.1 adopted to be effective August 21, 2018, 43 TexReg 5392; amended to be effective May 6, 2024, 49 TexReg 3014.</p></note></section><section identifier="/us/state/tx/tac/t40/p20/c853/scA/s853.2"><num value="853.2">§853.2</num><heading>Referral</heading><content>(a) An individual may be referred for OIB services in a variety of ways, including, but not limited to:(1) a physician's office;(2) a community organization;(3) the Center for Independent Living (CIL);(4) a senior community organization;(5) family, customer representative, and friends;(6) contract providers; or(7) online self-referral portal.(b) A referral shall include the name of the individual seeking services, the address where the individual resides, and an email address and telephone number, if available.(c) During the referral process, OIB staff may determine the level of services needed by the customer, provide minimal services, or verify the customer's eligibility criteria. Minimal services may include information and referral, a guide to independent living, bump dots for kitchen appliances, and low-cost magnifiers. If minimal services are all that a customer requires, the case may be closed as a minimal services successful closure.(d) For service delivery to begin, an individual shall submit a complete application and document that all eligibility requirements are met.</content><note type="source"><p>Source Note: The provisions of this §853.2 adopted to be effective August 21, 2018, 43 TexReg 5392; amended to be effective May 6, 2024, 49 TexReg 3014.</p></note></section><section identifier="/us/state/tx/tac/t40/p20/c853/scA/s853.3"><num value="853.3">§853.3</num><heading>Accessible Communication</heading><content>(a) The Agency shall provide all members of the public with disabilities who are seeking information or other services from the Agency access to and use of electronic and information resources comparable to the access and use provided to members of the public without disabilities, unless compliance with this section imposes a significant difficulty or expense to the Agency under Texas Government Code §2054.460.(b) The Agency may use alternate methods or formats to provide timely access by individuals with disabilities to Agency electronic and information resources.(c) The Agency shall ensure that OIB applicants and customers are given the opportunity to request and receive communication from the Agency in an alternate format or by alternate methods.</content><note type="source"><p>Source Note: The provisions of this §853.3 adopted to be effective August 21, 2018, 43 TexReg 5392; amended to be effective May 6, 2024, 49 TexReg 3014.</p></note></section><section identifier="/us/state/tx/tac/t40/p20/c853/scA/s853.4"><num value="853.4">§853.4</num><heading>Application</heading><content>An individual is considered to have completed the application process when:(1) the individual or the individual's representative has completed and signed the OIB application form and an OIB staff member has entered the electronic PIN into the case management system;(2) the individual or the individual's representative has provided the information necessary to initiate an assessment to determine eligibility and service delivery; and(3) the individual or the individual's representative is available to complete the assessment process to determine eligibility.</content><note type="source"><p>Source Note: The provisions of this §853.4 adopted to be effective August 21, 2018, 43 TexReg 5392; amended to be effective May 6, 2024, 49 TexReg 3014.</p></note></section><section identifier="/us/state/tx/tac/t40/p20/c853/scA/s853.5"><num value="853.5">§853.5</num><heading>Eligibility</heading><content>(a) To be eligible for OIB, a customer must:(1) be age 55 or older;(2) be blind or have low vision or a significant visual impairment, as defined in §853.1, of this subchapter (relating to Definitions);(3) be an individual for whom independent living goals are feasible; and(4) be present in Texas.(b) Eligibility for blindness, low vision, or a significant visual impairment is determined by OIB staff based on the documented diagnosis of a licensed practitioner.(c) Individuals shall establish eligibility through existing data and information, including, but not limited to, medical records and information used by the Social Security Administration. The information may be obtained from the applicant, the applicant's family members, or the applicant's representative. OIB staff may assist in locating or obtaining existing documentation.(d) The Agency shall substantively evaluate the documentation and application to determine whether eligibility requirements are met.(e) OIB staff shall endeavor to make an eligibility determination within 60 days from the time a completed and signed application for services has been received. The eligibility determination is conditional on the applicant's availability to complete the assessment process, as set forth in §853.4(3) of this subchapter (relating to Application). When an applicant is unavailable to complete such assessment process in a timely manner due to unforeseen circumstances, which may include, but are not limited to, medical conditions or hospitalizations, the 60-day period shall be abated until the applicant is available to complete the necessary assessment process to determine eligibility.(f) Eligibility cannot be established unless and until all required elements under subsection (a) of this section have been completed and documented, including any assessment to establish eligibility.(g) Eligibility requirements are applied without regard to an individual's age, color, creed, gender, national origin, race, religion, or length of time present in Texas.</content><note type="source"><p>Source Note: The provisions of this §853.5 adopted to be effective August 21, 2018, 43 TexReg 5392; amended to be effective May 6, 2024, 49 TexReg 3014.</p></note></section><section identifier="/us/state/tx/tac/t40/p20/c853/scA/s853.6"><num value="853.6">§853.6</num><heading>Ineligibility Determination</heading><content>(a) A determination of ineligibility shall be based only on a substantive evaluation of an applicant's completed and signed application, including all documentation required to establish eligibility under §853.5(a) of this subchapter (relating to Eligibility).(b) Before making a determination of ineligibility, OIB staff shall provide the applicant or the applicant's representative, as appropriate, an opportunity to consult with OIB staff. OIB staff shall notify the applicant, or the applicant's representative, as appropriate, of an ineligibility determination. Notice shall be provided in accessible format and through accessible methods and in compliance with Texas Government Code §2054.460, if applicable. The notice shall include the following:(1) A brief statement of the ineligibility determination, with reference to the requirements under this chapter and any deficiencies;(2) The mailing date of the determination;(3) An explanation of the individual's right to an appeal;(4) The procedures for filing an appeal with the Agency, including applicable time frames;(5) The right to have a hearing representative, including legal counsel;(6) How to contact the Texas CAP, which is DRTx; and(7) The contact information to which the appeal must be sent.(c) When appropriate, OIB staff may refer the applicant to other agencies and facilities.</content><note type="source"><p>Source Note: The provisions of this §853.6 adopted to be effective August 21, 2018, 43 TexReg 5392; amended to be effective May 6, 2024, 49 TexReg 3014.</p></note></section></subchapter><subchapter identifier="/us/state/tx/tac/t40/p20/c853/scB"><num value="B">SUBCHAPTER B</num><heading>SERVICES</heading><section identifier="/us/state/tx/tac/t40/p20/c853/scB/s853.10"><num value="853.10">§853.10</num><heading>Independent Living Plan</heading><content>(a) Once an individual is determined eligible, the ILP is developed within 90 days of the eligibility date. If the ILP cannot be completed within 90 days, then OIB staff must document the reason for the delay in a case note.(b) OIB staff must jointly develop the ILP and all subsequent amendments in writing, through consultation with the customer or the customer's representative, as appropriate.(c) A customer may waive receipt of the written plan by signing the Agency Waiver of Independent Living Plan (VR 5154).(d) Through consultation, OIB staff and the customer, or the customer's representative, as appropriate, determine how services shall be delivered and document service delivery methods in the electronic record of the ILP, which OIB staff must maintain.(e) The Agency shall ensure that the customer or the customer's representative, as appropriate, is advised of procedures and requirements affecting the development and review of the ILP.(f) To receive a copy of the ILP and its amendments in a medium other than print, the customer must inform OIB staff of the preferred medium.(g) OIB staff shall review the ILP at least annually with the customer or the customer's representative, as appropriate, to assess the customer's progress in meeting the objectives identified in the ILP.(h) OIB staff shall incorporate any revisions to the ILP that are necessary to reflect changes in the customer's goals, intermediate objectives, or needs.(i) The customer must inform the Agency in a timely manner of changes that will affect the provision of services, including, but not limited to, the customer's unavailability to receive services.</content><note type="source"><p>Source Note: The provisions of this §853.10 adopted to be effective August 21, 2018, 43 TexReg 5392; amended to be effective May 6, 2024, 49 TexReg 3014.</p></note></section><section identifier="/us/state/tx/tac/t40/p20/c853/scB/s853.11"><num value="853.11">§853.11</num><heading>Scope of Services</heading><content>(a) All services provided under this section shall be subject to budget constraints of the program.(b) OIB staff shall provide each service in accordance with a customer's ILP.(c) OIB staff may directly provide the following services under this chapter:(1) Information and referral services;(2) Independent living skills training;(3) Peer counseling (including cross-disability peer counseling);(4) Individual and systems advocacy;(5) Orientation and mobility training;(6) Diabetes education;(7) Braille training; and(8) Transition services.(d) OIB staff may purchase goods or services with an approved provider as identified and agreed upon with the customer in the ILP, including:(1) counseling services, to include psychological and psychotherapeutic services;(2) orientation and mobility training;(3) diabetes awareness training;(4) rehabilitation technology (for example, a video magnifier); and(5) related visual aid tools, such as magnifiers and low vision eyeglasses.(e) OIB staff may refer customers to other services to meet their needs. Such other services may include, but are not limited to:(1) CIL services;(2) housing services, including supportive living;(3) accessible transportation services;(4) medical services;(5) personal assistance services, including attendant care and the training of individuals to provide such services;(6) education and training necessary for living in a community and participating in community activities; and(7) social and recreational services.</content><note type="source"><p>Source Note: The provisions of this §853.11 adopted to be effective August 21, 2018, 43 TexReg 5392.</p></note></section></subchapter><subchapter identifier="/us/state/tx/tac/t40/p20/c853/scC"><num value="C">SUBCHAPTER C</num><heading>CUSTOMER FINANCIAL PARTICIPATION</heading><section identifier="/us/state/tx/tac/t40/p20/c853/scC/s853.20"><num value="853.20">§853.20</num><heading>Individuals Who Receive Social Security Income or Social Security Disability Insurance</heading><content>(a) Customers who are recipients of either Social Security Income (SSI) or Social Security Disability Insurance (SSDI) are not required to participate in the cost of services.(b) OIB staff shall ensure that each customer or the customer's representative, as appropriate, is informed of the services that require customer participation in the cost of services and the services that do not require customer participation.</content><note type="source"><p>Source Note: The provisions of this §853.20 adopted to be effective August 21, 2018, 43 TexReg 5392.</p></note></section><section identifier="/us/state/tx/tac/t40/p20/c853/scC/s853.21"><num value="853.21">§853.21</num><heading>Customer Participation in the Cost of Services</heading><content>(a) Some independent living services, as set forth in §853.11 or this chapter (relating to Scope of Services), may be subject to customer participation in cost of service as defined in OIB policy.(b) OIB staff shall administer the customer participation system in accordance with the rules in this chapter, the OIB policy manual, and 34 CFR §367.67(b)(1).(c) OIB staff shall provide those independent living services not requiring customer participation in cost of services as set forth in §853.11 of this chapter at no cost to the customer.(d) OIB staff shall determine the customer's adjusted gross income and the percentage of the Federal Poverty Guidelines at https://aspe.hhs.gov/poverty-guidelines for that income, based on documentation provided by the customer.(e) OIB staff is required to apply the Federal Poverty Guidelines at https://aspe.hhs.gov/poverty-guidelines to determine customer participation.(f) The customer or customer's representative shall sign an ILP acknowledging the customer's contribution for services and providing written agreement that:(1) the information provided by the customer or the customer's representative about the customer's household size, annual gross income, allowable deductions, and comparable services or benefits is true and accurate; or(2) the customer or the customer's representative chooses not to provide information about the customer's household size, annual gross income, allowable deductions, and comparable services or benefits.(g) If the customer or the customer's representative, as appropriate, chooses not to provide information on the customer's household size, annual gross income, allowable deductions, and comparable services or benefits, the customer shall pay the entire cost of applicable services.(h) The customer shall report to OIB staff as soon as possible all changes to household size, annual gross income, allowable deductions, and comparable services or benefits and sign an amended ILP.(i) When the customer amends the ILP, the new customer's contribution for services takes effect the beginning of the following month. The new contribution shall not be applied retroactively.(j) OIB staff shall develop a process to reconsider and adjust the customer's contribution for services based on circumstances that are both extraordinary and documented. This may include assessing the customer's ability to pay the customer's participation amount. Extraordinary circumstances include:(1) an increase or decrease in income;(2) unexpected medical expenses;(3) unanticipated disability-related expenses;(4) a change in family size;(5) catastrophic loss, such as fire, flood, or tornado;(6) short-term financial hardship, such as a major repair to the customer's home or personally owned vehicle; or(7) other extenuating circumstances for which the customer makes a request and provides supporting documentation.(k) The customer's contribution for services remains in effect during the reconsideration and adjustment process.(l) OIB staff shall:(1) use program income that is received from the customer only to provide services outlined in §853.11 of this chapter; and(2) report fees collected as program income.(m) The Agency may not use program income received from the customer to supplant any other fund sources.(n) The Agency may not pay any portion of the customer's contribution.(o) The customer's ILP and all financial information collected by OIB staff are subject to subpoena.</content><note type="source"><p>Source Note: The provisions of this §853.21 adopted to be effective August 21, 2018, 43 TexReg 5392; amended to be effective May 6, 2024, 49 TexReg 3014.</p></note></section><section identifier="/us/state/tx/tac/t40/p20/c853/scC/s853.22"><num value="853.22">§853.22</num><heading>Availability of Comparable Services and Benefits</heading><content>(a) The Agency shall determine whether comparable services or benefits are available to the customer under any other program and if comparable services or benefits are available to the customer under any other program, the customer shall use those benefits first. This includes services that are included under the customer's medical and dental insurance, including government insurance.(b) The Agency shall not make this determination in cases in which comparable services or benefits exist under any other program, but are not available to the customer at the time needed, and:(1) determining the availability of comparable services and benefits under any other program would delay the provision of services to customers who could be at medical risk, based on medical evidence provided by an appropriate, qualified medical professional; or(2) the determination would interrupt or delay progress toward achieving the goals in the ILP.</content><note type="source"><p>Source Note: The provisions of this §853.22 adopted to be effective August 21, 2018, 43 TexReg 5392.</p></note></section></subchapter><subchapter identifier="/us/state/tx/tac/t40/p20/c853/scD"><num value="D">SUBCHAPTER D</num><heading>CASE DOCUMENTATION</heading><section identifier="/us/state/tx/tac/t40/p20/c853/scD/s853.30"><num value="853.30">§853.30</num><heading>Case Closure</heading><content>(a) The Agency closes a case when minimal services have been provided enhancing the applicant's independence and the applicant does not need the full array of OIB services, or when the customer's ILP has been completed, typically within 18 months of plan development. The case will be closed sooner without completion of services if:(1) the customer does not meet eligibility criteria;(2) the customer is unavailable, for an extended period of time, to complete an assessment of independent living needs and staff has made repeated efforts to contact and encourage the applicant to participate;(3) the customer has refused services or further services;(4) the customer is no longer present in Texas;(5) the customer's whereabouts are unknown;(6) the customer's medical condition is rapidly progressive or terminal;(7) the customer has refused to cooperate with the Agency; or(8) the customer's case has been transferred to another agency.(b) A customer or the customer's representative, as appropriate, shall be notified of any case closure except when the customer's whereabouts are unknown.</content><note type="source"><p>Source Note: The provisions of this §853.30 adopted to be effective August 21, 2018, 43 TexReg 5392; amended to be effective May 6, 2024, 49 TexReg 3014.</p></note></section></subchapter><subchapter identifier="/us/state/tx/tac/t40/p20/c853/scE"><num value="E">SUBCHAPTER E</num><heading>CUSTOMER'S RIGHTS</heading><section identifier="/us/state/tx/tac/t40/p20/c853/scE/s853.40"><num value="853.40">§853.40</num><heading>Rights of Customers</heading><content>(a) In accordance with applicable legal provisions, the Agency does not, directly or through contractual or other arrangements, exclude, deny benefits to, limit the participation of, or otherwise discriminate against any individual on the basis of age, color, disability, national origin, political belief, race, religion, sex, or sexual orientation. For the purposes of receiving OIB services, the customer must be blind or have a low vision diagnosis or a significant visual impairment as defined in §853.1 of this chapter (relating to Definitions); however, that requirement is not considered discrimination against any individual on the basis of disability.(b) OIB staff shall ensure the customer or the customer's representative, as appropriate, is notified in an accessible format about the rights included in subsection (a) of this section, and §853.21 of this chapter (relating to Customer Participation in the Cost of Services), when:(1) the customer applies for services;(2) OIB staff determines that a customer is ineligible for services; and(3) OIB staff intends to terminate services.(c) Filing a complaint with DRTx:(1) A customer has the right to appeal a determination to the state's CAP. The CAP in Texas is implemented by DRTx.(2) DRTx advocates are not employees of the Agency. There are no fees for CAP services, which are provided by advocates and attorneys when necessary. Services are confidential.(3) A customer who is enrolled in OIB services, or the customer's representative, may file a complaint with DRTx alleging that a requirement of OIB was violated. The complaint does not need to be filed with OIB.</content><note type="source"><p>Source Note: The provisions of this §853.40 adopted to be effective August 21, 2018, 43 TexReg 5392; amended to be effective May 6, 2024, 49 TexReg 3014.</p></note></section><section identifier="/us/state/tx/tac/t40/p20/c853/scE/s853.41"><num value="853.41">§853.41</num><heading>Right to Appeal</heading><content>A customer has the right to appeal, as set forth in Chapter 850 of this title, relating to Vocational Rehabilitation Services Administrative Rules and Procedures.</content><note type="source"><p>Source Note: The provisions of this §853.41 adopted to be effective August 21, 2018, 43 TexReg 5392.</p></note></section></subchapter></chapter><chapter identifier="/us/state/tx/tac/t40/p20/c854"><num value="854">CHAPTER 854</num><heading>BUSINESS ENTERPRISES OF TEXAS</heading><subchapter identifier="/us/state/tx/tac/t40/p20/c854/scA"><num value="A">SUBCHAPTER A</num><heading>GENERAL PROVISIONS AND PROGRAM OPERATIONS</heading><section identifier="/us/state/tx/tac/t40/p20/c854/scA/s854.10"><num value="854.10">§854.10</num><heading>Definitions</heading><content>The following words and terms, when used in this chapter, shall have the following meanings, unless the context clearly indicates otherwise. Unless expressly provided otherwise, words in the present or past tense include the future tense, and the singular includes the plural, and the plural includes the singular.(1) Act--Randolph-Sheppard Act (20 USC, Chapter 6A, §107 et seq. ).(2) Agency--The Texas Workforce Commission, which is the state licensing agency for the Randolph-Sheppard program titled the Business Enterprises of Texas.(3) Application for Training--The "BET Application for Training" form used by VR customers to apply for prerequisite trainings that is a required prerequisite to be considered for a license. (4) Assignment Application--The "BET Facility Assignment Application" form used by licensees to apply for a facility.(5) BET--Business Enterprises of Texas.(6) BET assignment--The document that sets forth the terms and conditions for management of a BET facility by the individual named as manager.(7) BET director--The administrator of Business Enterprises of Texas; or, if there is no individual in that capacity, the individual designated by the VRD director to perform that function; or if there is none, the VRD director.(8) BET facility--Automatic vending machines, cafeterias, snack bars, cart service, shelters, counters, and other equipment that may be operated by BET managers and that are necessary for the sale of newspapers, periodicals, confections, tobacco products, foods, beverages, and other articles or services dispensed automatically or manually and prepared on or off the premises in accordance with all applicable health laws, and including the vending or exchange of tickets for any lottery authorized by state law.(9) BET manual--"Business Enterprises of Texas Manual of Operations," which contains this subchapter adopted by the Agency and related instructions and procedures by which BET facilities are to be managed.(10) Blind (individual who is)--An individual whose central visual acuity does not exceed 20/200 in the better eye with correcting lenses or whose visual acuity, if better than 20/200, is accompanied by a limit to the field of vision in the better eye to such a degree that its widest diameter subtends an angle of no greater than 20 degrees. In determining whether an individual is blind, there shall be an examination by a physician skilled in diseases of the eye, or by an optometrist, whichever the individual shall select.(11) Business day--A day on which state agencies are officially required to be open during their normal business hours.(12) ECM--Elected Committee of Managers--A committee representative of BET licensees pursuant to 20 USC §107b-1(3) of the Randolph-Sheppard Act.(13) Expendables--Items that require a low capital outlay and have a short life expectancy, including, but not limited to, small wares, thermometers, dishes, glassware, flatware, sugar and napkin dispensers, salt and pepper shakers, serving trays, kitchen knives, spreaders, serving spoons, and ladles.(14) Immediate family--Any individual related within the first degree of affinity (marriage) or consanguinity (blood) to the individual involved.(15) Individual with a significant disability--An individual who has a severe physical or mental impairment that seriously limits one or more functional capacities (such as mobility or communication).(16) Initial assignment--The first BET facility to which a manager is assigned after being licensed.(17) Instruction by Agency staff members--Instructions that are proper and authorized and in accordance with applicable statutes and program rules, regulations, and procedures.(18) Level 1 facility--A BET facility that in the previous year generated a net income after set-aside fees equal to or less than 170 percent of the median net income after set-aside fees of all BET managers for the previous year or, in the case of a new BET facility, is reasonably expected to generate that income.(19) Level 2 facility--A BET facility that in the previous year generated a net income after set-aside fees greater than 170 percent of the median net income after set-aside fees of all BET managers for the previous year or, in the case of a new BET facility, is reasonably expected to generate that income.(20) Licensee--A blind individual who has been licensed by the Agency as qualified to apply for and operate a BET facility, and which shall have the same meaning assigned to "blind licensee" in 34 CFR §395.1.(21) Manager--A licensee who is operating a BET facility, and which shall have the same meaning assigned to "vendor" in 34 CFR §395.1. (22) Net sales--All sales, excluding sales tax.(23) Other income--Money received by a manager from sources other than direct sales, such as vending commissions or subsidies. (24) Sanitation and cleaning supplies--Items that require a low capital outlay and have a short life expectancy, such as, by way of illustration and not limitation, mops, brooms, detergents, bleach, gloves, oven mitts, trash bags, food wrapping supplies, foil, and cleaning supplies for food equipment.(25) State property--Lands and buildings owned, leased, or otherwise controlled by the State of Texas; and equipment and facilities purchased and/or owned by the State of Texas.(26) Substantial interest--An individual has a substantial interest if:(A) in an assignment decision:(i) the individual will benefit financially from the assignment decision; and(ii) funds received by the individual from the business exceed 10 percent of the individual's gross income for the previous year; or(B) if he or she is related to an individual in the first degree of affinity or consanguinity who has a substantial interest as defined in subparagraph (A) of this paragraph.(27) Vending machine--For the purpose of assigning vending machine income, a coin- or currency-operated machine that dispenses articles or services, except those machines operated by the United States Postal Service for the sale of postage stamps or other postal products and services. Machines providing services of a recreational nature and telephones shall not be considered to be vending machines.(28) VRD director--The director of the Agency's designated state unit titled the Vocational Rehabilitation Division.</content><note type="source"><p>Source Note: The provisions of this §854.10 adopted to be effective September 1, 2019, 44 TexReg 3294; amended to be effective July 4, 2022, 47 TexReg 3823.</p></note></section><section identifier="/us/state/tx/tac/t40/p20/c854/scA/s854.11"><num value="854.11">§854.11</num><heading>General Policies</heading><content>(a) Objectives. BET objectives shall be:(1) to provide employment opportunities for qualified individuals; and(2) to provide an ongoing training program for managers that encourages them to advance their upward mobility career opportunities within the program.(b) Relationship of BET to VRD Services. The intent of BET, as authorized by the Act and the Texas Labor Code, is to stimulate and enlarge the economic opportunities for legally blind individuals who reside or are physically present in Texas to operate BET facilities in Texas by establishing a vending facility program in which individuals who need employment are given priority in the operation of vending facilities selected and installed by the Agency. The Agency is required to administer BET in accordance with the Agency's vocational rehabilitation objectives. Therefore, a customer receiving services from VRD whose employment goal is to be a licensed manager shall have reached an employment outcome, as that term is used in the Rehabilitation Act of 1973, as amended, when the customer is licensed by the Agency and is managing a BET facility. The licensed manager shall not be considered an employee of the Agency or of state or federal government.(c) Full-time employment. Managing a BET facility shall constitute full-time employment. "Full-time" shall mean "being actively engaged in the management of a BET facility for the number of hours necessary to achieve satisfactory operation of the facility." The manager shall be available for necessary visits by Agency staff to allow inspection, advice, and consultation as may be required to ensure satisfactory operation. "Management" means "being physically present to perform the personal supervision of the day-to-day operation of the assigned BET facility by the assigned manager."(d) Subcontracting. The management of a BET facility shall not be subcontracted by a licensed manager except for temporary periods of time approved by the Agency and in those circumstances in which the Agency considers that subcontracting the operation of some parts of the facility is in the best interest of BET. Potential justifications for subcontracting include the following: business strategies in which a portion of the facility operation may be subcontracted so that the assigned manager may focus on another aspect of the facility; temporary events not to exceed six months in which the assigned manager is not capable of management duties due to illness, injury, or other events, as approved by the Agency; and the need for business expertise and resources beyond that available from BET. Any subcontracting shall require the prior written approval of the Agency. The approval of any subcontract is at the discretion of the Agency. This subsection does not apply to equipment or machines allowed to be placed within the facility and not owned by or arranged for by the Agency.(e) Availability of funds. The administration of BET and the implementation of these policies are contingent upon the availability of funds for the purposes stated in this subchapter.(f) BET manual. All BET policies adopted by the Agency shall be included in the BET manual. The BET director shall ensure that the manual and any revisions to it are provided to each licensee electronically or in the format requested by the licensee. The licensee shall be responsible for reading the manual and acknowledging in writing that he or she has read and understands its contents. The BET director shall ensure that the BET manual contains procedures from which licensees may obtain assistance in understanding BET policies and procedures.(g) Accessibility of BET materials. All information produced by and provided to licensees by the Agency shall be in an accessible format. When possible, these materials are sent in the format requested by the licensee.(h) Nondiscrimination.(1) VR and BET participants. the Agency shall not discriminate against any blind individual who is participating in or who may wish to participate in BET on the basis of sex, age, religion, race, color, creed, national origin, political affiliation, or physical or mental impairment, if the impairment does not preclude satisfactory performance.(2) BET facilities. Managers shall operate BET facilities without discriminating against any present or prospective supplier, customer, employee, or other individual who might come into contact with the facility on the basis of sex, age, religion, race, color, creed, national origin, political affiliation, or physical or mental impairment.(i) Emergencies. The BET director is authorized to expend funds on an emergency basis to protect the state's investment in a BET facility not to exceed $50,000 in a fiscal year or $5,500 per facility incident due to riot, war, fire, earthquake, hurricane, tornado, flood, or other disasters, governmental restrictions, labor disturbances, declared emergencies, or strikes.(j) Temporary management. From time to time it becomes necessary to designate a temporary manager to an unassigned facility to ensure uninterrupted service to the host and customers. Temporary assignments shall be for the period stated in the assignment document. After the time frame stated in the assignment expires, the BET director shall review the temporary assignment and shall review the assignment every 90 days to determine the need for continuation of the temporary assignment. The temporary assignment shall terminate when a new manager is assigned to the facility. The Agency shall choose temporary managers from licensees; if a licensee is not available, the Agency may contract with a private entity. Before the Agency offers a licensee or a private entity a temporary opportunity, the regional BET staff, at a minimum, shall evaluate the following: the individual's willingness to serve for the stated temporary term; the qualifications and experience relevant to the current opportunity; and the documented management compliance history, along with other factors set out in Agency rules. The geographic BET staff shall provide its findings to the local ECM and seek a joint recommendation to BET management. BET management shall make the final determination. When more than one individual is recommended at the local level, BET management shall first give preference to managers available within the local ECM region and thereafter to the individual manager with a lower average historical income, to improve his or her income temporarily.(k) Compliance with tax laws. Licensees and managers shall comply with state and federal tax laws and shall not have a tax lien against them.</content><note type="source"><p>Source Note: The provisions of this §854.11 adopted to be effective September 1, 2019, 44 TexReg 3294; amended to be effective July 4, 2022, 47 TexReg 3823.</p></note></section></subchapter><subchapter identifier="/us/state/tx/tac/t40/p20/c854/scB"><num value="B">SUBCHAPTER B</num><heading>LICENSE AND ASSIGNMENTS</heading><section identifier="/us/state/tx/tac/t40/p20/c854/scB/s854.20"><num value="854.20">§854.20</num><heading>Eligibility and Application Process</heading><content>(a) Prerequisites for training. To be eligible for BET training, a customer desiring a career with BET as an employment outcome in the vocational rehabilitation program shall:(1) be at least 18 years of age;(2) be a United States citizen physically present in Texas (a birth certificate or other appropriate documentation must be submitted with the application);(3) be legally blind as defined by these rules;(4) be proficient in math, reading, and writing, as demonstrated through CCRC testing, as well as in adaptive technology, including word processing spreadsheet use and e-mail communication, as demonstrated through a CCRC final assessment;(5) have the physical capability required to perform safely the basic functions of a manager;(6) have mobility skills to operate a BET facility safely, as documented by a VR counselor or assessment verified by an orientation and mobility instructor;(7) satisfactorily perform a Work Evaluation Training conducted with a current BET operator;(8) not have engaged in substance abuse for the previous 12 months; and(9) be in compliance with state and federal tax laws and not be subject to any tax liens.(b) Application process. Each eligible customer interested in applying for BET training must obtain approval and an application from the regional VR manager. The application must be submitted to the BET director. An eligible customer has successfully participated in the CCRC program. Interviews will be conducted by the BET director and an appointed panel. An e-mail notification of the results will be sent to the applicant. Notification may be provided by mail if the applicant does not have access to email services.</content><note type="source"><p>Source Note: The provisions of this §854.20 adopted to be effective September 1, 2019, 44 TexReg 3294; amended to be effective July 4, 2022, 47 TexReg 3823.</p></note></section><section identifier="/us/state/tx/tac/t40/p20/c854/scB/s854.21"><num value="854.21">§854.21</num><heading>BET Licenses and Continuing Education Requirement</heading><content>(a) Natural persons. Licenses to manage a BET facility shall be issued only to natural persons.(1) Prerequisites. No individual may be licensed until the individual has satisfactorily completed all required BET training and otherwise continues to satisfy the criteria for entry into BET.(2) Issuance. A license issued by the Agency shall contain the name of the licensee and the date of issue. The license shall be signed by the VRD director and the BET director on behalf of the Agency and the State of Texas.(3) Display. The license or a copy of the license shall be displayed prominently in each BET facility to which the manager is assigned.(4) Property right. A license shall not create any property right for the licensee to state or federal property including state- or federally-owned equipment.(5) Transferability. A license is not transferable.(6) Term. A license issued by the Agency shall be valid for an indefinite period, subject, however, to termination or revocation under conditions specified in these rules that pertain to termination of a license for reasons other than unsatisfactory performance or administrative action.(b) Annual continuing education requirements for licensees:(1) The Agency and ECM conduct an annual training conference for all licensees to inform them of new BET developments and to provide instruction on relevant topics to enhance licensees' business competence and upward mobility in the program. Licensees must attend the Agency's training conference or an Agency-approved alternative training event every year to maintain their licenses and eligibility to bid on available facilities. They must document their attendance at the Agency training conference by signing attendance records provided at the conference. A licensee who is unable to attend the Agency training conference may satisfy the continuing education requirement by attending a BET-approved course or training conference. Such training includes, but is not limited to, attending the national training conferences for blind vendors conducted by the Randolph-Sheppard Vendors of America or by the National Association of Blind Merchants, or by completing a business-related course from the Hadley Institute for the Blind and Visually Impaired or a business-related course offered by an accredited community college.(2) Licensees wishing to attend an alternative training course or conference must request approval through their local Agency staff. The local Agency staff forwards the request to the BET director for approval. The licensee must also provide proof of successful completion of any business-related course or attendance at a training conference through the local Agency staff to the BET director to receive credit for attendance. All costs associated with travel, lodging, meals, and registration when attending any training other than the Agency training conference will be the responsibility of the licensee.(3) Licensees may use an alternative approved training course or training conference to satisfy the continuing education requirement only if they are unable to attend the Agency training conference because of personal medical reasons, the death of a family member, a medical emergency or serious medical condition of an immediate family member, or if there is not an Agency training conference offered during the licensee's 12-month evaluation period. Licensees must provide written documentation of the medical issues or death of a family member to their local Agency staff.(4) Licensees who fail to complete continuing education requirements may be subject to administrative action up to and including termination of their licenses.</content><note type="source"><p>Source Note: The provisions of this §854.21 adopted to be effective September 1, 2019, 44 TexReg 3294; amended to be effective July 4, 2022, 47 TexReg 3823.</p></note></section><section identifier="/us/state/tx/tac/t40/p20/c854/scB/s854.22"><num value="854.22">§854.22</num><heading>Initial Assignment Procedures</heading><content>(a) This section defines the process for the initial assignments of managers. It is the goal of the process to provide a fair, unbiased, and impartial process for selection, transfer, and promotion.(b) Initial assignment. When an individual completes BET training, the BET director shall make the initial assignment for the newly licensed individual. The initial assignment shall be for a minimum of 12 months. The BET director shall make the assignment based on the following factors, including, but not limited to:(1) availability of a Level 1 facility;(2) recommendations from the BET training specialist and the ECM chair;(3) licensee's training records;(4) licensee's geographical concerns; and(5) licensee's compliance with state and federal tax laws and not be subject to any tax liens.</content><note type="source"><p>Source Note: The provisions of this §854.22 adopted to be effective September 1, 2019, 44 TexReg 3294; amended to be effective July 4, 2022, 47 TexReg 3823.</p></note></section><section identifier="/us/state/tx/tac/t40/p20/c854/scB/s854.23"><num value="854.23">§854.23</num><heading>Career Advancement Assignment Procedures</heading><content>(a) Career advancement assignments. This section defines the process for the career advancement assignments of managers. It is the goal of the process to provide a fair, unbiased, and impartial process for selection, transfer, and promotion.(1) Availability. All career advancement opportunities depend on the availability of BET facilities. No facility with a projected annual income equal to the annual median income level of all managers after set-aside fees shall be used for an initial assignment unless it has been advertised and made available to all licensees in the BET program and no one has been assigned to the facility as a result of the advertising process.(2) Notice. As BET facilities become available and ready for permanent assignment, written notice of the availability shall be given to all licensees within 30 business days.(3) On-site visits. An advertised facility shall be available for on-site visits upon reasonable notice by licensees interested in that facility assignment.(b) Eligibility. To apply for an available facility, a licensee must meet the following requirements:(1) The licensee shall have successfully managed a BET facility for a minimum of one year.(2) The licensee shall be current on all accounts payable for the 12 months before the date of the facility announcement. Accounts payable include known debts to state and federal entities as well as any BET business-related debt. "Current" means "performing in accordance with written established or alternate payment plans associated with the accounts payable debts."(3) The licensee shall be in compliance with state and federal tax laws and not be subject to any tax liens.(4) The licensee shall not be on probation under §854.81 of this title (relating to Administrative Action Based on Unsatisfactory Performance).(5) The licensee shall meet eligibility requirements of the facility's host organization, including, but not limited to:(A) criminal background checks; and(B) drug tests.(6) The licensee shall not have submitted more than one insufficient funds check to the Agency within the 12 months before the date of the facility announcement.(7) The licensee shall not have submitted more than one late report within the 12 months before the date of the facility announcement.(8) If unassigned, the licensee shall have fulfilled all resignation requirements in the licensee's most recent facility assignment or be displaced and eligible to apply for a facility.(9) The manager shall have an inventory of merchandise and expendables in the manager's current facility that the Agency has determined sufficient for its satisfactory operation.(10) The licensee shall satisfy the Agency that he or she can maintain the merchandise and expendables required for the available facility.(11) A licensee who has been placed on probation is not eligible for promotion and transfer for 30 days from the effective date of the most recent release from probation.(12) A licensee who has been placed on probation twice within a 12-month period is not eligible for promotion or transfer for six months from the effective date of the most recent release from probation.(13) A licensee who has been placed on probation three times within a two-year period is not eligible for promotion or transfer for one year from the effective date of the most recent release from probation.</content><note type="source"><p>Source Note: The provisions of this §854.23 adopted to be effective September 1, 2019, 44 TexReg 3294; amended to be effective July 4, 2022, 47 TexReg 3823.</p></note></section><section identifier="/us/state/tx/tac/t40/p20/c854/scB/s854.24"><num value="854.24">§854.24</num><heading>Career Advancement Assignment Application</heading><content>(a) BET application deadline. A licensee may apply for an available facility by applying electronically, by hand, or by mail not later than the 12th business day (exclusive of date of mailing) after the date the facility notice was published. The submission date shall be:(1) the date the application is delivered electronically or by hand to the Agency; or(2) three days after postmark of the application in the US postal service, whichever is earlier; or(3) the date the application is delivered to an overnight courier.(b) BET application contents. A copy of the current form of the application shall be included in the BET manual. The substance of the application form shall not be modified except by action of the Agency. Modifications shall be provided to all licensees before their effective date. Upon request by the manager and before the submission deadline, assistance is available from the local BET staff and ECM representative in completing the BET application form.(c) Preliminary review of applications. The Agency staff and the ECM representative in each geographic area in which the applying licensees are located shall review all applications from their areas and shall verify the applicants' eligibility. If an ECM representative is an applicant for an available BET facility, the ECM chair shall appoint another ECM member for the review. Completed applications shall then be forwarded to the BET director, who shall provide copies to the ECM and Agency staff in the area in which the available facility is located.(d) Level 1 assignments. Assignments to Level 1 facilities shall be made by the BET director after reviewing the assessments of all applicants conducted by the ECM representative and Agency staff, and the subsequent recommendations, for the regions in which the available facilities are located. Panel members shall rank all eligible applicants using a worksheet that weights the applicant's performance by 50 percent for the applicant's most recent annual performance evaluation completed before the date of the facility advertisement, 25 percent for interview performance, and 25 percent for the submitted BET application form. Any other materials submitted by the applicants shall be provided by the same deadline as the BET application form and will be included in the 25 percent interview performance weighting component.(e) Level 2 assignments. For Level 2 assignments, the following procedures, in addition to Level 1 procedures, shall apply:(1) Business plan. An applicant shall submit a business plan to the BET director no later than the 20th business day after the postmark date on the notice of facility availability. Upon request by an applicant, Agency staff in the area in which the available facility is located shall provide the applicant with a standard packet of information that is necessary to prepare the business plan. Agency staff shall deliver the packet to the applicant no later than the third business day after receiving a request.(2) Establishment of a pool of impartial and qualified individuals. The Agency shall establish and maintain a pool of qualified individuals who:(A) have no personal, professional, or financial interest that would conflict with the objectivity of the individual;(B) neither have nor have had any association with the Agency or BET before being considered as a pool member; and(C) have at least five years' experience in business at a managerial or executive level, including experience in budget preparation and administration, personnel supervision or management, and administration of business plans or equivalents to business plans in the sector of business in which the individual has experience.(3) Evaluation of business plans. All business plans shall be reviewed and evaluated by an individual chosen at random from the pool of impartial and qualified individuals. Business plans shall be evaluated and scored based on a scoring system of 100 points. The evaluations and scores shall then be forwarded to the BET director for consideration by the selection panel in the selection process.(4) Selection panel. A selection panel consisting of one representative from the ECM, one Agency staff member, and one individual from the pool of impartial and qualified individuals shall be chosen by means of a computer program that selects randomly from a database. The selection of each panel member shall be from among all individuals within their respective categories, except that the impartial member may not be the individual who evaluated the business plans. If the member of a category of panel members who is selected is unable or refuses to serve, the BET director shall use the same method of random selection until three members are chosen.(5) Presiding officer. The impartial panel member shall serve as the presiding officer of the selection panel.(6) Interview notices. At least 10 business days before the convening of the selection panel, applicants shall be notified electronically, or, upon request, by first-class mail, of the date, place, and time of the selection panel interview.(7) Selection panel materials. Completed applications, business plans, and each applicant's most recent performance evaluation completed before the date of the facility advertisement shall be provided to the selection panel members at least five business days before the date that the selection panel is to convene.(8) Duties of selection panel. The selection panel shall review the documents provided and interview the applicants. The panel shall prepare a tabulation sheet for each applicant on which the panel member shall enter the business plan score and performance evaluation score previously received by the applicant. A third score shall be awarded by each panel member for the interview performance of the applicant. Each interview shall be rated on a maximum score of 100, based on such areas as the quality of the applicant's presentation, knowledge of the submitted business plan, and preparation for the assignment. Each applicant shall be interviewed on the same areas and given a similar amount of time to present his or her case. While questions must be tailored to each applicant's business plan, presentation, and knowledge, the panel should strive to conduct the interviews as similarly as possible. The selection panel shall then rank the top three applicants. An applicant's ranking shall be determined after weighting each applicant's business plan score by 25 percent, weighting each applicant's most recent performance evaluation completed before the date of the facility advertisement by 50 percent, and weighting the average interview score awarded by panel members by 25 percent. If there is a tie between applicants, the panel awards one point to the applicant who has the greater length of accumulated service as an assigned manager in a BET facility according to BET records. The selections shall be transmitted to the BET director, who shall in turn notify the highest ranked eligible applicant of the decision of the selection panel. The available facility shall be offered to the eligible applicants in order of ranking.(9) Reports of improper contact. Members of the selection panel shall report alleged improper contacts to the BET director or VRD director. Improper contact is defined as communication with a member of the selection panel to influence or manipulate the selection of an applicant for the facility being considered for assignment by offering a thing or act of value, including promises of future benefit, or by threat. Nothing contained in this section, however, prohibits any licensee from endorsing or supporting any candidate for selection by furnishing a letter or other document to that effect to be included with the applying licensee's application. After the selection panel concludes its responsibilities, each panel member shall be required to sign a statement certifying whether the member had, or had knowledge of, improper contact during the selection proceedings.(10) Process for investigating reports of improper contact. When alleged improper contact is reported, each applicant for the facility under consideration and the ECM chair shall be informed of the occurrence of an alleged improper contact. The information provided to the applicants shall describe the nature of the alleged improper contact but shall not divulge the identities of any individuals allegedly participating in such improper contact. Each applicant may object to continuation of the existing panel and request that a new panel be formed to select the manager for the available facility. The BET director, upon the request of any applicant for the facility, shall determine whether the improper contact requires that the panel be disbanded and a new panel formed. In making that decision, the BET director shall consider all relevant factors, including the objections, if any, of the applicants, to determine whether the improper contact is likely to influence the decision of the selection panel. If the BET director determines that the improper contact occurred and is likely to influence the selection process, the BET director shall direct the panel to disband and a new panel be formed to consider the selection for the available facility. The BET director shall inform all applicants of the decision to continue the selection process with the existing panel, or to form a new panel, and shall state the basis of the decision. The actions prescribed as a consequence of improper contact set forth in rules pertaining to administrative actions shall apply whether or not any improper contact results in the panel being disbanded.(11) Exceptions to assignment and selection procedures. Unusual circumstances may require exceptions to assignment and selection procedures. Exceptions to these procedures shall be made only if the circumstance is not covered by assignment procedures and failure to react to the circumstance would be detrimental to BET or a licensee. Notwithstanding anything in this section, no exceptional procedure shall result in the removal of a manager from a facility except for reasons contained in rules pertaining to administrative actions. Assignment and selection decisions that are exceptions to these procedures shall be made by the BET director after discussing relevant information with the ECM chair and receiving the chair's recommendation. If a decision contrary to the ECM chair's recommendation is made, the BET director shall provide a written explanation of the decision to the ECM chair.</content><note type="source"><p>Source Note: The provisions of this §854.24 adopted to be effective September 1, 2019, 44 TexReg 3294.</p></note></section></subchapter><subchapter identifier="/us/state/tx/tac/t40/p20/c854/scC"><num value="C">SUBCHAPTER C</num><heading>EXPECTATIONS OF TWC AND MANAGERS</heading><section identifier="/us/state/tx/tac/t40/p20/c854/scC/s854.40"><num value="854.40">§854.40</num><heading>Fixtures, Furnishings, and Equipment; Initial Inventory; and Expendables</heading><content>(a) Survey. When a BET facility becomes available for assignment, Agency staff shall conduct a survey of the site to determine the fixtures, furnishings, and equipment required to allow the facility to operate in accordance with projections by Agency staff of the potential business model for the facility. When the facility is an existing one, the survey shall consider the need for replacement or repair of fixtures, furnishings, and equipment.(b) Facility plan. Agency staff shall prepare a detailed listing of the requirements for fixtures, furnishings, and equipment for the facility, including specifications for each item required and a site plan of the facility depicting the placement of the fixtures, furnishings, and equipment within the facility. The facility shall be consistent with local ordinances as well as state and federal requirements.(c) Acquisition, placement, and installation. When satisfied with the plan for the fixtures, furnishings, and equipment required for the facility, Agency staff shall procure the necessary fixtures, furnishings, and equipment to be placed or installed in the facility in accordance with the approved plans. The Agency may also purchase necessary fixtures, furnishings, and equipment for placement away from the facility for off-site storage.(d) Ownership.(1) All state fixtures, furnishings, and equipment within the facility shall at all times remain the property of the State of Texas. The facility manager's use of all such fixtures, furnishings, and equipment shall be as a licensee only and in accordance with the BET Equipment Loan Agreement.(2) The Agency shall have the sole authority to direct, control, transfer, and dispose of the fixtures, furnishings, and equipment.(e) Modifications. No modifications or alterations shall be made to state-owned fixtures, furnishings, or equipment by any individual, firm, or entity without the express prior written approval of the Agency.(f) Upkeep and maintenance.(1) The manager assigned to a facility shall be provided with manuals, instructions, and guides electronically or in a format requested by the manager. These documents for state-owned fixtures, furnishings, and equipment within the facility should be in an accessible format.(2) It shall be the responsibility of the manager to keep fixtures, furnishings, and equipment clean and sanitary and to perform maintenance required or recommended by the manufacturers or vendors of the fixtures, furnishings, and equipment. This must be in accordance with the BET instructions and equipment manuals.(3) The Agency has the right to perform required maintenance and require the manager to reimburse the Agency for that maintenance.(4) The manager shall keep and maintain accurate records of all maintenance performed on fixtures, furnishings, and equipment. Any failure or refusal of the manager to perform the maintenance referred to in this section shall result in the manager being required to reimburse the Agency for the cost or expense resulting from the failure or refusal and may result in further administrative action.(g) Repairs and replacements.(1) Upon notification, the Agency shall be responsible for all necessary repairs of any of the state-owned fixtures, furnishings, and equipment located within the facility except for repairs necessitated by the negligence, abuse, or misuse of the fixtures, furnishings, or equipment by the manager or the manager's employees. Failure to comply with manufacturer's or BET's maintenance and preventive care requirements shall be considered negligence, abuse, or misuse. The cost of repairs necessitated by negligence, abuse, or misuse by the manager or the manager's employees shall be the sole responsibility of the manager. Failure to make such repairs may result in administrative action under §854.81 of this title (relating to Administrative Action Based on Unsatisfactory Performance).(2) The manager shall follow the instructions as established by BET to facilitate the timely necessary repairs and for the payment for such services. The instructions provide specific procedures for initiating repairs by the manager and a list of approved vendors for repairs. The instructions provided to each manager are published revised from time to time.(3) Under no circumstances is a manager authorized to have the cost of repairs charged to the Agency or to have repairs made by anyone other than approved vendors unless Agency staff has given the manager authority to do so in writing. Each vendor included in the approved list of vendors for repairs shall be informed by Agency staff of this prohibition and of the procedures for authorized repairs.(4) Agency staff members on their own initiative or upon request shall determine the need for replacement of any fixtures, furnishings, or equipment, and they shall report it to the BET director. If the BET director authorizes the expense, the replacement fixtures, furnishings, and/or equipment shall be purchased, contingent upon availability of BET funds.(5) Fixtures, furnishings, and equipment shall not include sanitation and cleaning supplies. Each manager of a facility shall be responsible for replacing all such items with items of a quality comparable to those being replaced and originally furnished by the Agency.(h) Initial inventory of merchandise and expendables for newly licensed managers. The Agency shall furnish without charge the initial inventory of merchandise and expendables for the initial assignment of a newly licensed licensee. The initial inventory of merchandise and expendables shall be sufficient to assist the manager with starting the business.(i) Subsequent inventory of merchandise, sanitation and cleaning supplies, and expendables.(1) The manager shall maintain an inventory of merchandise, sanitation and cleaning supplies, and expendables in the same quantities as were transferred to the manager upon assignment to the facility. If the Agency determines that changed circumstances require different quantities of merchandise, sanitation and cleaning supplies, and expendables, the Agency shall communicate in writing to the manager the new quantities required. If the new quantities of merchandise, sanitation and cleaning supplies, and expendables are necessary to provide for the satisfactory operation of the facility, those new quantities of inventory must be maintained by the manager.(2) Managers assigned to any facility other than their initial assignment in Texas shall acquire the merchandise, sanitation and cleaning supplies, and expendables as determined by the Agency to be sufficient to satisfactorily operate the facility. To effectively expedite the changeover in facilities, when a facility is already stocked with merchandise, sanitation and cleaning supplies, and expendables, the existing stock shall become part of the required inventory stock level of the incoming manager. The amount owed by the incoming manager for the existing stock shall be the amount agreed to by the affected parties. If the existing inventory is the property of the state, the amount owed by the incoming manager shall be the amount paid with state funds.(j) Purchases on credit. During the first three years of being in the program, managers must notify the Agency in advance of any purchase on credit of merchandise, sanitation and cleaning supplies, and expendables.(k) Obtaining an advance from the Agency for initial inventory. A manager may apply to the Agency for an advance to purchase an initial inventory of merchandise, sanitation and cleaning supplies, and expendables. The manager must satisfy an advance received from the Agency to purchase merchandise on subsequent assignments within a 12-month period and must make monthly payments in the amount established by the Agency. The granting of an advance is discretionary and may be done only under the following conditions:(1) The manager shall justify to the Agency, in writing, the need for the advance and why the funds are not available from other sources.(2) The manager shall submit evidence satisfactory to the Agency that the financing has been sought from at least two commercial financial institutions.(3) The manager shall demonstrate to the Agency his or her ability to repay the advance within 12 months.(4) Managers with outstanding balances on advances are not eligible for transfer to another assignment.(l) Transfer of fixtures, furnishings, equipment, and inventory of merchandise, sanitation and cleaning supplies, and expendable items. When a manager is assigned to an existing BET facility, the responsibility for the fixtures, furnishings, and equipment of that facility as well as its inventory of merchandise, sanitation and cleaning supplies, and expendable items shall be transferred to the incoming manager. The BET director shall follow the procedures for transferring the equipment between the incoming and outgoing managers to ensure that the managers have full knowledge of the nature and condition of the items being transferred.</content><note type="source"><p>Source Note: The provisions of this §854.40 adopted to be effective September 1, 2019, 44 TexReg 3294; amended to be effective July 4, 2022, 47 TexReg 3823.</p></note></section><section identifier="/us/state/tx/tac/t40/p20/c854/scC/s854.41"><num value="854.41">§854.41</num><heading>Set-Aside Fees</heading><content>(a) The Agency requires managers to pay a set-aside fee based on the monthly net proceeds of their BET facilities. The purposes of requiring this payment are:(1) to promote to the greatest possible extent the concept of a manager being an independent business individual;(2) to cause BET to be, to the greatest extent possible, self-supporting;(3) to encourage and stimulate growth in BET; and(4) to provide incentives for the increased employment opportunities for blind individuals physically present in Texas.(b) Use of funds. To the extent permitted or required by applicable laws, rules, and regulations, the funds collected as set-aside fees shall be used by the Agency for the following purposes:(1) maintenance and replacement of equipment for use in BET;(2) purchase of new equipment for use in BET;(3) management services;(4) ensuring a fair minimum return to managers; and(5) the establishment and maintenance of retirement or pension funds, health insurance contributions, and provision for paid sick leave and vacation time, if it is so determined by a majority vote of licensed managers, after the Agency provides to each such manager information on all matters relevant to these proposed purposes.(c) Method of computing net proceeds.(1) Net proceeds are the amount remaining from the sale of merchandise of a BET facility, all vending machine income, and other income accruing to the manager from the facility after deducting the reasonable and necessary cost of such sale, but excluding set-aside charges required to be paid by the manager. The manager shall not remove any items from the inventory or other stock items of the facility unless the manager pays for those items at the actual cost.(2) Costs of sales that may be deducted from net sales to calculate net proceeds in a reporting period shall be limited to:(A) cost of merchandise sold;(B) wages paid to employees;(C) payroll taxes; and(D) the following reasonable miscellaneous operating expenses that are directly related to the operation of the BET facility. Discretionary expenses, not to exceed 1.5 percent of the monthly net sales, or $150, whichever is greater. Expenses must be verifiable, invoiced, and directly related to the operation of the facility. Acceptable expenses include:(i) rent and utilities authorized in the permit or contract;(ii) business taxes, licenses, and permits;(iii) telecommunication services;(iv) liability, property damage, and fire insurance;(v) worker's compensation insurance;(vi) employee group hospitalization or health insurance;(vii) employee retirement contributions (the plans must be IRS-approved and not for the manager);(viii) janitorial services, supplies, and equipment;(ix) bookkeeping and accounting services;(x) trash removal and disposal services;(xi) service contracts on file with the Agency;(xii) legal fees directly related to the operation of the facility (legal fees directly or indirectly related to actions against governmental entities are not deductible);(xiii) medical expenses directly related to accidents that occur to employees at the facility, not to exceed $500;(xiv) purchase of personally owned or leased equipment that has been approved by the Agency for placement in the facility;(xv) repairs and maintenance to personally owned or leased equipment that has been approved by the Agency to be placed in the facility;(xvi) consumable office supplies;(xvii) exterminator or pest control services; and(xviii) mileage expenses for vehicles required for the direct operation of vending facilities at the rate and method allowed by the Internal Revenue Service at the time the expenses are incurred.(3) All reports by managers shall be accompanied by supporting documents required by the Agency.(d) Method of computing monthly set-aside fee. The monthly set-aside fee of each manager shall be a percentage of the net proceeds of the facility as determined in accordance with this section. The provisions relative to the percentage required to be paid as set-aside fees shall be reviewed by the BET director with the active participation of ECM at least annually each state fiscal year. The purpose of the review shall be to determine whether the percentage needs to be adjusted in order to meet the financial needs of the program. The percentage assessed against the net proceeds of facilities may be lowered or raised to meet the needs of the program. ECM shall be provided with all relevant financial and other information concerning the financial requirements of the program no fewer than 60 days before a review by the BET director in which the percentage is to be considered. For the period from the effective date of this amended rule until BET director undertakes his or her first annual review of the set-aside fee, the percentage shall be 5 percent.(e) If ECM disagrees with the action taken to establish a new set-aside fee rate after the annual review, then ECM may choose to use the appeal process.(f) Payment of set-aside fee. The set-aside fee shall be submitted with the manager's monthly statement of facility operations. The manager shall use BET Monthly Facility Report, BE-117, to report monthly activities.(g) Adjustments to monthly set-aside fee.(1) To encourage managers to hire individuals with disabilities, managers shall deduct from their set-aside payment up to 50 percent of the wages or salary paid to an employee who is blind or who has another disability or disabilities (as defined by the Americans with Disabilities Act) during any month up to an amount not to exceed 5 percent of the set-aside payment amount for that month, or $250, whichever is less. A manager may make this deduction for any number of employees who are blind or have another disability as long as that deduction from the set-aside payment amount does not exceed 25 percent of the total set-aside payment that is due, or $1,250, whichever is less. The manager shall provide documentation to BET as required by the Agency to verify such employment and the right to the reduction in set-aside fees. For the purposes of this paragraph, "who is blind or who has another disability" does not include:(A) the manager;(B) an individual who is blind or who has another disability at the first degree of consanguinity or affinity to the manager; or(C) an individual who is blind or who has another disability claimed as a dependent, either in whole or in part, on the manager's federal income tax return.(2) Adjustments provided for in paragraph (1) of this subsection shall not apply for any month in which the set-aside fee is not paid in a timely manner.(3) To encourage managers to file their monthly statement of facility operations and pay their monthly set-aside fee promptly, managers shall have their monthly set-aside fee increased by 5 percent of the total amount due if either their monthly statement or the monthly set-aside fee is not received in a timely manner, pursuant to these rules. None of the terms of this rule shall be construed to create a contract to pay interest, as consideration for the use, forbearance, or detention of money, at a rate more than the maximum rate permitted by applicable laws and rules. This adjustment to the set-aside fee is not imposed as interest.</content><note type="source"><p>Source Note: The provisions of this §854.41 adopted to be effective September 1, 2019, 44 TexReg 3294; amended to be effective July 4, 2022, 47 TexReg 3823.</p></note></section><section identifier="/us/state/tx/tac/t40/p20/c854/scC/s854.42"><num value="854.42">§854.42</num><heading>Duties and Responsibilities of Managers</heading><content>(a) Managers shall comply with applicable law, the rules contained in this chapter, written agreements with hosts, the BET assignment, the requirements of the BET manual, and instruction by BET staff.(b) Managers shall comply with procedures prescribed by the Comptroller of Public Accounts for the payment of sales taxes and provide evidence to the Agency of timely sales tax remittances.(c) Managers shall not engage in conduct that demonstrably jeopardizes the Agency's right, title, and interest in the BET facility, its equipment, or the lease or agreement with the property managers.(d) While managing or present at their assigned BET facility, managers shall dress and act in an appropriate manner consistent with the environment in which they are operating, health and safety regulations, and anti-discrimination provisions under §854.11(h) of this title (relating to General Policies).(e) Managers shall open a commercial business account in which they maintain sufficient funds to operate the BET facility.(f) Managers shall hire sufficient employees to ensure the efficient operation of the BET facility and to provide satisfactory service to customers. If the facility is remodeled or if operational areas change, the manager must have sufficient employees on hand for the necessary shutdown and reopen cleanup.(g) Managers shall be actively engaged in the management of a BET facility and be actively working the number of hours necessary to achieve satisfactory operation of the facility. With prior notice from the Agency, managers shall be available for all necessary visits to the facilities for advice, consultation, and inspections of the facility. If the business is closed for remodel or improvement, the manager shall be available for the opening, closing, and overall security of the business and assets.(h) Managers shall take appropriate actions to correct deficiencies noted on BET facility audits or reviews within seven business days.(i) Managers shall provide satisfactory service to the BET facility host and customers.(j) Managers shall notify the Agency in advance if they intend to be absent from their assigned facility for more than two days.(k) Managers shall provide BET staff with the following information and shall notify BET staff of changes to any item no more than 10 business days after a change occurs:(1) the BET facility telephone number;(2) a mailing address and an e-mail address;(3) a phone number for use in emergencies; and(4) the manager's preferred accessibility format.(l) Managers are accountable to the Agency for the proceeds of the business.(m) Managers shall keep all records supporting the monthly facility report for three calendar years.(n) Managers shall report the actual value of resale inventory by taking a physical count in the facility each month and submitting a written quarterly inventory (March, June, September, and December) with the monthly facility report.(o) Managers, upon request by the Agency, shall make available all records pertinent to the facilities to which they have been assigned for audit or review. Any materials removed from the facility will be returned within 90 business days, unless evidence needs to be preserved. Copies of preserved evidence will be supplied by the Agency to the manager within 90 business days.(p) Managers shall maintain liability insurance coverage sufficient to indemnify the Agency if Agency funding is not available or insufficient for such purposes.</content><note type="source"><p>Source Note: The provisions of this §854.42 adopted to be effective September 1, 2019, 44 TexReg 3294; amended to be effective July 4, 2022, 47 TexReg 3823.</p></note></section><section identifier="/us/state/tx/tac/t40/p20/c854/scC/s854.43"><num value="854.43">§854.43</num><heading>Responsibilities of the Texas Workforce Commission</heading><content>(a) Management services. The Agency shall provide each manager with regular and systematic management services, which shall, at a minimum, include:(1) explanations of Agency rules, procedures, policies, and standards;(2) recommendations on how the facility can be made more profitable for the manager;(3) techniques to develop positive relationships with customers, assistants, and management of the host organization;(4) possible solutions to problems recognized by the manager or brought to the manager's attention by Agency staff or the facility host;(5) continuing education and training courses and opportunities for managers designed to enhance skills, productivity, and profitability; and(6) information about laws, rules, and regulations affecting the operation of a BET facility.(b) Training. The Agency shall assist ECM in conducting a special training seminar for all licensees each year to inform them of new BET developments and to provide instruction on new, relevant topics to enhance upward mobility.(c) Facility operating conditions. The Agency shall establish the conditions for operation of a BET facility in accordance with this subchapter and any requirements of the host. The operating conditions shall include, among other things, pricing-ranges requirements, hours of operation, and menu items or product lines. The Agency may revise the operating conditions from time to time as market conditions warrant. The ECM will actively participate in the setting of price ranges charged in the facilities. The final authority and ultimate responsibility for determining the price ranges to be charged for products sold through BET facilities shall rest with the Agency.(d) BET financial data. Upon request, the Agency shall provide licensees with access to BET financial data. Also upon request, Agency staff shall assist the licensee in interpreting the data.(e) Inventory payment. When a manager leaves the manager's initial assignment, the Agency shall pay the manager or the manager's heirs the value of the usable stock and supplies above the amount provided to the manager upon initial assignment.</content><note type="source"><p>Source Note: The provisions of this §854.43 adopted to be effective September 1, 2019, 44 TexReg 3294; amended to be effective July 4, 2022, 47 TexReg 3823.</p></note></section></subchapter><subchapter identifier="/us/state/tx/tac/t40/p20/c854/scD"><num value="D">SUBCHAPTER D</num><heading>BET ELECTED COMMITTEE OF MANAGERS</heading><section identifier="/us/state/tx/tac/t40/p20/c854/scD/s854.60"><num value="854.60">§854.60</num><heading>BET Elected Committee of Managers' Duties and Responsibilities</heading><content>(a) Authority. The Elected Committee of Managers (ECM) is created and shall operate under 20 USC §107b(1) of Chapter 6A of Title 20, known as the Randolph-Sheppard Act.(b) Relationship to the Agency. ECM shall be presumed as the sole representative of all licensees to the Agency in matters contained in the Randolph-Sheppard Act and implementing regulations requiring the active participation of the ECM. Active participation means an ongoing process of good-faith negotiations between ECM and the Agency in the development of BET policies and procedures before implementation. The Agency shall have the ultimate responsibility for the administration and operation of all aspects of BET and has final authority in decisions affecting BET.(c) Relationship to licensees.(1) It shall be the sole responsibility of the licensees who elect the members of ECM to ensure that the individuals elected represent all licensees.(2) ECM shall, in addition to all other matters set forth in this subchapter or by law or regulation affecting the administration of BET, act as an advocate for licensees and shall strive to improve and expand BET and make it profitable and successful to the greatest extent possible for the mutual benefit of the Agency and of the legally blind individuals physically present in Texas who participate in the program.(d) BET policies, rules, and procedures. In all matters related to policies and rules, the Agency has the ultimate responsibility and the ultimate authority for their establishment and adoption. ECM shall actively participate in the consideration of significant BET decisions and in deliberations of rules and policies affecting BET. Whenever the Agency or ECM wishes to consider policies or rules related to BET, the Agency shall request that ECM participate in the Agency rule-drafting workshops to be conducted by the BET director. The BET director will work with ECM in a good-faith effort to agree in matters related to rule and policy changes.(e) BET administrative decisions. In matters concerning the administration of BET, the Agency holds the ultimate responsibility and authority for making administrative decisions affecting BET. The BET director shall establish and maintain a continuing dialogue and exchange of information with ECM about decisions regarding the administration of BET and shall seek ECM input and advice on all significant decisions affecting the administration of the program. In cooperation with the ECM chair and other members of ECM that the ECM chair considers necessary and appropriate, the BET director shall develop and implement methods of establishing and maintaining the dialogue and exchange of information. The methods developed shall be set out in detail in a written format and shall be included in the BET manual.(f) Exclusions from participation. ECM, its members, and BET managers are not employees, officers, or officials of the State of Texas. Therefore, ECM shall not participate in any decision-making process regarding Agency personnel, personnel policies, or personnel administration.(g) Structure. ECM shall, to the extent possible, be composed of licensees who are representative of all licensees in BET based on such factors as geography and facility type and size. Two representatives shall be elected from each designated ECM region created by the Agency with the active participation of ECM and as regions may be revised or modified.(h) Qualifications. ECM shall establish qualifications for candidates as well as the procedures for voting, tabulating, and announcing results. The Agency shall provide such advice and counsel as may be requested by ECM to accomplish all elections of representatives to ECM.(i) Term of office. The term of office for ECM members shall be two years, beginning on January 1 following the election. Even- and odd-numbered districts shall alternate election years. Any ECM member elected to fill a vacancy shall serve the remainder of the unexpired term of the manager who vacated a position.(j) Meetings. ECM shall meet once during each calendar year to elect officers and additionally as it may establish by bylaw. The ECM chair shall provide a written meeting agenda to the BET director 10 business days before each meeting.(k) Internal procedures of ECM. ECM shall establish bylaws to govern its internal operation and order of business and shall provide the Agency with a copy.(l) Travel expenses.(1) Expenses for travel, meals, lodging, or other related expenses incurred by ECM representatives must be preapproved by the Agency.(2) When representing a manager at a full evidentiary hearing, the ECM representative shall be reimbursed for travel, meals, and lodging at the rate allowed for travel by Agency staff members.</content><note type="source"><p>Source Note: The provisions of this §854.60 adopted to be effective September 1, 2019, 44 TexReg 3294; amended to be effective July 4, 2022, 47 TexReg 3823.</p></note></section><section identifier="/us/state/tx/tac/t40/p20/c854/scD/s854.61"><num value="854.61">§854.61</num><heading>BET Elected Committee of Managers' Conflict of Interest</heading><content>(a) The ECM representative shall immediately disclose any conflict of interest to all parties and shall withdraw from all matters related to the conflict. Final determination of a conflict of interest shall be made by the Agency.(b) The ECM representative shall not use the position for private gain or act in a manner that creates the appearance of impropriety.(c) The ECM representative may not vote or make recommendation on any BET promotion or transfer matter that would provide direct financial benefit to the ECM representative individually or the ECM representative's immediate family or on matters of the provision of services by the member or the entity the member represents.(d) Before a discussion, vote, recommendation, or decision on any promotion or transfer matter before ECM, if a representative or an individual in the immediate family of such representative has a substantial interest in the assignment being considered, that ECM representative shall disclose the nature and extent of the interest or relationship and shall abstain from voting or making a recommendation on or in any other way participating in the decision on the matter.</content><note type="source"><p>Source Note: The provisions of this §854.61 adopted to be effective September 1, 2019, 44 TexReg 3294.</p></note></section></subchapter><subchapter identifier="/us/state/tx/tac/t40/p20/c854/scE"><num value="E">SUBCHAPTER E</num><heading>ACTION AGAINST A LICENSE</heading><section identifier="/us/state/tx/tac/t40/p20/c854/scE/s854.80"><num value="854.80">§854.80</num><heading>Termination of License for Reasons Other Than Unsatisfactory Performance</heading><content>(a) Causes for termination. The license of a licensee shall be terminated upon the occurrence of any one of the following:(1) The licensee's visual acuity is improved by any means to the point at which the licensee no longer satisfies the definition of legally blind.(2) The licensee becomes otherwise permanently disabled and as a result of such permanent disability is unable to perform the essential functions of operating and maintaining a BET facility with or without reasonable accommodations. Being permanently disabled is having a condition that is medically documented and has existed or is expected to exist for at least 12 months. The determination of permanently disabled shall be made by the VRD director or designee after review of medical documentation and other information relevant to the issue. Other information relevant to the issue shall include recommendations from Agency staff and ECM, pertinent information from the licensee's BET file or provided by the licensee, and reports of examinations or evaluations, if any, obtained by the Agency and the licensee.(3) The licensee is unassigned and has not accepted assignment offers or applied for an assignment when facilities are available for a period of six consecutive months. The six-month deadline may be extended by periods of 30 days when facilities are not available for assignment. Any unassigned period of 12 months or more requires retraining for the licensee to become eligible to bid for, or be assigned to, available facilities.(b) Examination and evaluation. In any situation in which the vision or other disability of a licensee is at issue with respect to termination of a license, the Agency or the licensee may require an examination or evaluation by professionals to determine whether the licensee is otherwise permanently disabled and because of the permanent disability is unable to perform the essential functions of operating and maintaining a BET facility. The reports of such professionals shall be furnished to the Agency and the licensee. Any failure of the licensee to participate in required examinations or evaluations shall be grounds for administrative action.(c) Restoration of license. A license terminated under the provisions of this section may be restored at the discretion of the Agency if the condition or conditions causing the termination were resolved satisfactorily. In considering a decision with respect to whether to restore a license that was terminated according to this section, the VRD director shall consult with appropriate BET staff members, the ECM chair, and any advocate for the licensee and shall consider all pertinent information and documentation provided by any of the individuals described in this subsection.(d) Conditional restoration. If the VRD director determines that a license that was terminated according to this section should be restored, the VRD director may authorize the restoration of the license on any reasonable basis, such as participation in continued medical treatment or therapy, or completion of refresher or other courses of training.</content><note type="source"><p>Source Note: The provisions of this §854.80 adopted to be effective September 1, 2019, 44 TexReg 3294; amended to be effective July 4, 2022, 47 TexReg 3823.</p></note></section><section identifier="/us/state/tx/tac/t40/p20/c854/scE/s854.81"><num value="854.81">§854.81</num><heading>Administrative Action Based on Unsatisfactory Performance</heading><content>(a) Causes for administrative action based on unsatisfactory performance. One or more of the following acts or omissions by a manager shall subject a manager to administrative action for unsatisfactory performance:(1) Failing to operate the assigned facility as set forth in the permit or contract with the host and/or in the manager's record of assignment unless prior written approval to operate the facility in another manner has been obtained from the Agency.(2) Failing to pay money that is due from the operation of the facility, including, but not limited to, taxes, fees, advances, or assessments to a governmental entity or supplier, or knowingly giving false or deceptive information to or failing to disclose required information to or misleading in any manner a governmental entity, including the Agency or a supplier.(3) Failing to file required financial and other records with the Agency or preserve them for the time required by this subchapter.(4) Failing to cooperate with audits conducted by the Agency or other state or federal agencies.(5) Failing to comply with filing and reporting requirements established under state and federal tax laws relating to the operation of the facility.(6) Failing to maintain insurance coverage required by these rules.(7) Using BET equipment or facility premises to operate another business.(8) Failing to properly maintain facility equipment in a clean and operable condition within the scope of the manager's level of maintenance authorization.(9) Intentionally abusing, neglecting, using, or removing facility equipment without prior written Agency authorization.(10) Operating a facility under the influence of substances that interfere with the operation of the facility, including alcohol and illegal or prescription drugs.(11) Operating a BET facility in a manner that demonstrably jeopardizes the Agency's investment in the facility.(12) Using privileged information about an existing facility to compete with the Agency for the facility.(13) Failing to comply with any federal or state law prohibiting violation of human rights or discrimination and failure to ensure that services are provided without distinction on the basis of race, gender, color, national origin, religion, age, political affiliation, creed, or disability.(14) Failing to maintain the necessary skills and abilities for effectively managing a facility.(15) Using a facility to conduct unlawful activities.(16) Failing to comply with the manager's responsibilities under applicable law, this subchapter, the requirements of the BET manual, or any instruction by Agency staff.(17) Communicating or causing another individual to communicate with a member of a selection panel or an applicant for a facility then being considered for assignment for the purpose of influencing or manipulating the selection of an applicant by offering to give a thing or act of value, including promises of future benefit, or by threat.(18) Failing to complete annual continuing education requirements.(b) Types of administrative actions. The five types of administrative actions that are based on unsatisfactory performance are as follows:(1) Written reprimand. Written reprimand is a formal statement describing violations of applicable law, this subchapter, the requirements of the BET manual, or any instruction by Agency staff.(2) Probation. Probation is allowing a licensee to continue in BET to satisfactorily remedy a condition that is not acceptable under this subchapter. If the condition causing probation is satisfactorily remedied within the time periods specified in the written notice of probation, the probation will be lifted. If the unacceptable condition is not remedied within the time specified, additional and more serious administrative actions may ensue. When a licensee who has been on probation two times in a three-year period qualifies for probation for the third time within those three years, the licensee's license may be revoked according to Agency rules.(3) Loss of facility. Loss of facility is the removal of a manager from the manager's current facility for administrative reasons when the manager's actions or inactions endanger the Agency's investment in the facility.(4) Termination. Termination is the revocation of a license and the removal of the licensee from BET.(5) Emergency removal of manager.(A) A manager may be summarily removed from a facility in an emergency. An emergency shall be considered to exist when the Agency, in consultation with the ECM chair, determines that some act or acts or some failure to act of that manager or any individual who is an employee, server, or agent of such manager, will, if such removal does not occur:(i) result in a clear danger to the health, safety, or welfare of any individual or to the property of any individual in or around the facility; or(ii) result in a deterioration of the existing or future relationship with the host, thereby putting the continuation of the facility in jeopardy; or(iii) present a clear potential of substantial loss or damage to the property of the State of Texas.(B) In any case in which a manager has been summarily removed from a facility on an emergency basis for any of the reasons set forth in subparagraph (A) of this paragraph, the manager shall be entitled to have a hearing about the necessity of the removal within 10 days after the removal has occurred.(C) The time period for the hearing may be extended only by mutual agreement of the manager and the Agency under the following circumstances: if an official holiday of the State of Texas falls within the period, then the period shall be extended by the time of the holiday; or, if the services of an arbitrator cannot be obtained in time to hold the hearing within the period, then the period shall be extended by the time necessary to obtain the services of an arbitrator and schedule the hearing.(D) If the manager desires to have a hearing, the manager shall notify the Agency in writing via mail or electronically via email within 48 hours following the removal. The written notification need state only the name of the manager, the location of the facility, and that the manager desires to have a hearing about the need for summary removal. The request may be delivered to the BET director, the VRD director, or any local BET staff member in the geographic region in which the facility is located.(E) Upon receipt of any such request, the BET director shall obtain the services of an arbitrator from the American Arbitration Association (AAA) or other similar organization to conduct the hearing.(F) The manager shall be notified of the date, time, and place of the hearing. To the extent possible, the hearing shall be conducted in an area near the location of the facility.(G) The hearing shall be conducted in accordance with the rules of AAA, except that the arbitrator shall be requested to announce orally a decision at the conclusion of the hearing.(H) If the arbitrator determines that no emergency necessitating the removal of the manager exists, then the manager shall be immediately restored to the operation of the facility.(I) No determination made as a result of the hearing shall operate to prejudice the rights of the manager to proceed with a grievance in accordance with the terms of this subchapter and the Act.(c) Administrative procedures.(1) The Agency shall decide what administrative action to take based on the seriousness of the violation, the damage to BET facilities and/or equipment, and the licensee's record.(2) Upon receipt of information that indicates that administrative action may be appropriate, the Agency shall take the following actions before deciding whether to take administrative action:(A) The Agency shall notify the licensee in writing via mail or electronically via email of the allegations and reasons that administrative action is being considered. The notice shall either be hand-delivered and read to the licensee, or be delivered to the licensee's work, e-mail address, or home address.(B) The licensee shall have five business days to respond to the notice, either in person or in writing. The response shall be made to the individual designated in the notice. After receiving the licensee's response, the Agency shall decide what administrative action, if any, is appropriate. If no response is received from the licensee in a timely manner, the Agency shall decide without the licensee's response what administrative action, if any, will be taken.(C) If a decision is made to issue a written reprimand, the written reprimand will be accompanied by a summary of the evidence justifying the reprimand, suggested steps for correcting the violation, and the consequences of not correcting the violation. All reprimands shall contain notice of the licensee's right to appeal the reprimand and a statement that failure to correct the violation may result in further administrative action.(D) If a decision is made to place a licensee on probation, the Agency shall deliver to the licensee a letter of probation containing the following:(i) the specific reasons for probation;(ii) the remedial action required to remove the licensee from probation;(iii) the time within which the remedial action must take place;(iv) the consequences of failure to take remedial action within the prescribed time frame; and(v) notice of the licensee's right to appeal.(E) Upon satisfactory completion of the remedial action outlined in the letter of probation, a licensee shall be removed from probation.(F) Failure of the licensee to complete remedial requirements within the prescribed time frame shall result in one or more of the following actions:(i) required training;(ii) extension of probation;(iii) restrictions on applying for another facility;(iv) removal from the facility; or(v) termination of license.(G) If, after the manager has had an opportunity to respond, a decision is made that sufficient grounds exist to remove the manager from a facility, the Agency shall notify the manager in writing by hand delivery or certified mail with a return receipt requested that the manager's assignment to the BET facility has been terminated and the manager must vacate the facility. The removal letter shall contain the following information:(i) specific reasons for removal from the facility;(ii) actions required by the manager, if any;(iii) requirements for obtaining reassignment; and(iv) notice of the manager's right to appeal under the Act.(H) If, after the manager has had an opportunity to respond, a decision is made that sufficient grounds exist for termination, the Agency shall notify the manager in writing by hand delivery, e-mail, or certified mail with a return receipt requested that the Agency has decided that sufficient cause exists to terminate the manager's license and the manager must vacate the facility. The termination letter shall contain:(i) specific reasons for termination;(ii) actions required by the licensee, if any;(iii) procedures for applying for any other Agency services for which the individual may be eligible; and(iv) notice of the licensee's rights under the Randolph-Sheppard Act.(3) The provisions of paragraph (2) of this subsection notwithstanding, pending a determination with respect to administrative action, a manager may be removed from a facility if the Agency considers such removal to be in the best interest of BET and if efforts to correct the deficiencies have been unsuccessful.(4) During the license termination process, the manager shall not be eligible for assignment to any other BET facility.(d) Before termination of a license, the Agency shall afford the licensee an opportunity for a full evidentiary hearing as described in §854.82(e) of this title (relating to Procedures for Resolution of Manager's Dissatisfaction).</content><note type="source"><p>Source Note: The provisions of this §854.81 adopted to be effective September 1, 2019, 44 TexReg 3294; amended to be effective July 4, 2022, 47 TexReg 3823.</p></note></section><section identifier="/us/state/tx/tac/t40/p20/c854/scE/s854.82"><num value="854.82">§854.82</num><heading>Procedures for Resolution of Manager's Dissatisfaction</heading><content>(a) Appealable actions. This section provides the procedures for licensees who are dissatisfied with the Agency's action arising from the operation of BET.(b) Actions not subject to appeal. The phrase "the Agency's action arising from the operation of BET" in subsection (a) of this section does not include the Agency's hiring, firing, or discipline of Agency employees.(c) Remedies. Remedies available to resolve dissatisfaction shall correct the action complained of from the earlier time of:(1) agreement by the parties about an appropriate remedy; or(2) a final resolution under the Randolph-Sheppard Act that the Agency acted in violation of applicable law, this subchapter, the requirements of the BET manual, or any instruction by Agency personnel, or acted unreasonably.(d) Informal procedures to review dissatisfactions. At the request of a licensee, the Agency shall arrange for and participate in informal meetings to quickly resolve a matter of dissatisfaction arising from the operation or administration of BET. The informal process is for resolving an issue in controversy quickly and amicably. It is not for the purpose of denying or delaying the manager's right to pursue resolution of a matter through a full evidentiary hearing. At any point during the informal process, either party may elect to terminate the following informal process procedures:(1) A licensee may initiate informal procedures by notifying the Agency in writing, via mail or electronically via email, through the BET director that the licensee is dissatisfied with a matter arising from the operation or administration of BET. The written notice must describe with reasonable particularity the specific matter in controversy, the date the action occurred, or an approximate date if the exact date is not known, and the licensee's desired relief or remedy. If the licensee is dissatisfied with a series of the same or related actions over a period, the notice shall describe, to the best of the licensee's ability, the time frame of the events and include the date of the most recent event about which the licensee is dissatisfied. (2) To ensure that informal resolution is possible in a timely manner, the licensee's request to initiate informal proceedings must be filed with the Agency no later than 20 business days after the most recent event specified in the request. The Agency shall, within a reasonable time, arrange a meeting at a location, date, and time satisfactory to all parties.(3) The licensee must notify the Agency when filing a request for informal proceedings if the licensee is an attorney or will be represented by legal counsel during mediation. The Agency may be represented by legal counsel only when the licensee is an attorney or is represented by legal counsel.(4) Meetings shall take place in an informal environment and shall be attended by the licensee, a BET staff member with decision-making authority, and a neutral third party who shall serve as an informal mediator during the discussions.(5) The neutral third party shall be an individual certified in conducting mediations.(6) The neutral third party's responsibility is to report to the Agency only that the effort to resolve the matter to the licensee's satisfaction was or was not successful. If an agreement is reached, then the actions agreed to with respect to the facility or licensee shall, prior to the conclusion of the mediation, be reduced to writing and signed by the licensee and the BET attendee. The parties shall expeditiously complete all actions called for in the signed agreement.(7) The provisions concerning mediation under Chapter 850 of this title (relating to Vocational Rehabilitation Services Administrative Rules and Procedures) shall not apply to or control the informal resolution procedures in this subchapter.(e) Full evidentiary hearing. A manager has the right to request a full evidentiary hearing to resolve dissatisfaction according to the following:(1) A manager has the right to request a full evidentiary hearing without first going through mediated meetings described in subsection (d) of this section.(2) A request for an evidentiary hearing must be made no later than the 20th business day after the occurrence of the Agency action about which the manager complains. The VRD director, upon request of the complaining party, may extend the period for filing a grievance upon the showing of good cause by the complaining party for such additional period if such request is made no later than the 20th business day after the occurrence of the Agency action about which the manager complains.(3) A manager requesting a full evidentiary hearing after the conduct of mediated meetings described in subsection (d) of this section must request such hearing in writing no later than the 20th business day after the date on which the neutral third party in subsection (d) of this section reports an unsuccessful informal mediation or a party terminates the informal mediation process, whichever is earlier in time.(4) A request for a full evidentiary hearing must be in writing and transmitted to the VRD director by mail or by email. A request that is postmarked within the designated time frame shall be considered delivered in a timely manner if properly posted.(5) The request for a full evidentiary hearing must describe the specific action with reasonable particularity sufficient to provide notice as to the action that is alleged to be unreasonable or in violation of applicable law, this subchapter, the requirements of the BET manual, or any instruction by Agency personnel. The request must, to the best of the complainant's knowledge, contain the date the action occurred, and the law or regulation must be reasonably identified if an action is alleged to be in violation of law, this subchapter, the requirements of the BET manual, or regulation. The request must also identify the desired relief or remedy.(6) The manager may be represented in the evidentiary hearing by legal counsel or other representative of the manager's choice, at the manager's expense.(7) The Agency shall arrange reader or other communication services for the manager, if needed, upon request by the manager at least three business days prior to the hearing date.(8) The manager shall be notified in writing of the time and place fixed for the hearing and of the manager's right to be represented by legal or other counsel.(9) Selection of the hearing officer.(A) The hearings coordinator, the Agency's Office of General Counsel, shall select, on a random basis, a hearing officer from a pool of individuals qualified according to this section.(B) The hearing officer shall be an impartial and qualified individual who:(i) is not involved either with the Agency's action that is at issue or with the administration or operation of BET;(ii) is not an employee of a public agency (other than an administrative law judge, hearing examiner, or employee of an institution of higher education); (iii) has knowledge of the Randolph-Sheppard Act and any applicable state and federal regulations governing the appeal;(iv) has received training specified by the Agency with respect to the performance of official duties; and(v) has no personal, professional, or financial interest that would compromise his or her impartiality.(C) An individual is not considered to be an employee of a public agency for the purposes of subparagraph (B)(ii) of this paragraph if the only consideration is that the individual is paid by the agency to serve as a hearing officer.(10) Hearings shall be conducted in accordance with the Randolph-Sheppard Act, Texas Government Code, §2001.051 et seq. , and this subchapter to the extent that those procedures do not conflict with the Act and its implementing regulations or this subchapter.(11) Licensees bringing complaints shall have the burden of proving their cases by means of a preponderance of the evidence. Licensees shall present their evidence first. When a hearing is requested because of administrative action by the Agency against a licensee, the Agency shall have the burden of proving its case by a preponderance of the evidence and shall present its evidence first.(12) Transcription of Proceedings.(A) Unless precluded by law, the hearing shall be recorded electronically either by the hearing officer or by someone designated by the hearing officer. Such recording shall be the official record of the testimony recorded during the hearing. Any party, however, may request, at the party's expense, that the hearing be recorded by a court reporter if the request is made within 10 days of the date for the hearing.(B) In lieu either of a recording of the testimony electronically or of the reporting of testimony by a court reporter, the parties to a hearing may agree upon a statement of the evidence to use transcription as a statement of the testimonial evidence, or agree to the summarization of testimony before the hearing officer, provided, however, that proceedings or any part of them must be transcribed on written request of any party.(C) Unless otherwise provided in this subchapter, the party requesting a transcription of any electronic recording of the proceedings shall bear the cost for transcribing the testimony. Nothing provided for in this section limits the Agency to an electronic record of the proceedings.(D) The record of the proceedings, including exhibits and any transcription, shall be made available to the parties by the Agency no later than the 30th business day after the close of the hearing.(13) The hearing officer shall issue a recommendation that shall set forth the principal issues and relevant facts that were stated at the hearing and the applicable provisions of law, rule, the requirements of the BET manual, or any instruction by Agency personnel. The recommendation shall contain findings of fact and conclusions with respect to each of the issues, and the reasons and bases for the conclusions.(14) In formulating a recommendation, the hearing officer shall not evaluate whether the Agency's actions were wise, efficient, or effective. Rather, the hearing officer is limited to determining whether the Agency's actions were unreasonable, or if they violated applicable law, this subchapter, the requirements of the BET manual, or any instruction by Agency personnel.(15) If the hearing officer finds that the actions taken by the Agency were unreasonable or violated applicable law, this subchapter, the requirements of the BET manual, or any instruction by Agency personnel, the hearing officer shall also recommend any prospective action necessary to correct the violations.(16) The hearing officer's recommendation shall be made no later than the 30th business day after the receipt of the official transcript. The recommendation shall be delivered promptly to the VRD director.(17) The VRD director shall review the recommendation of the hearing officer and forward a decision to the manager no later than the 20th business day after receipt of the hearing officer's recommendation. The VRD director's decision shall include findings of fact and conclusions of law based on the evidence in the record and separately stated.(18) Subject to the provisions of Texas Government Code, §2001.144 and §2001.146, the VRD director's decision shall be the final decision of the Agency. Any such decision becomes the final decision of the Agency if a timely motion for rehearing or reconsideration is not filed.(f) Arbitration. A manager appealing the Agency's decision must file a complaint with the US Secretary of Education in conformity with the provisions of the implementing regulations at 34 CFR §395.13 of the Act, pertaining to arbitration of vendor complaints.</content><note type="source"><p>Source Note: The provisions of this §854.82 adopted to be effective September 1, 2019, 44 TexReg 3294; amended to be effective July 4, 2022, 47 TexReg 3823.</p></note></section><section identifier="/us/state/tx/tac/t40/p20/c854/scE/s854.83"><num value="854.83">§854.83</num><heading>Establishing and Closing Facilities</heading><content>(a) Establishing facilities. On its own initiative, at the request of an agency that controls federal or state property, of the ECM, or of a private organization, the Agency shall survey the property, blueprints, or other available information concerning the property to determine whether the installation of a BET facility is feasible and consonant with applicable laws and regulations and with VRD objectives. If the installation of a BET facility is determined to be feasible, the Agency shall proceed to develop plans for the establishment of a facility in accordance with procedures promulgated and implemented by Agency staff and, when the facility is developed, shall assign a manager to the facility.(b) Closing facilities. Except for temporary closings by Agency staff, no BET facility shall be closed by the Agency until both of the following have occurred:(1) The BET director has certified to the VRD director that the facility is no longer a feasible or viable BET facility and provides reasons for that opinion.(2) The VRD director has approved the proposed closing of the facility.</content><note type="source"><p>Source Note: The provisions of this §854.83 adopted to be effective September 1, 2019, 44 TexReg 3294; amended to be effective July 4, 2022, 47 TexReg 3823.</p></note></section></subchapter></chapter><chapter identifier="/us/state/tx/tac/t40/p20/c856"><num value="856">CHAPTER 856</num><heading>VOCATIONAL REHABILITATION SERVICES</heading><subchapter identifier="/us/state/tx/tac/t40/p20/c856/scA"><num value="A">SUBCHAPTER A</num><heading>PROGRAM AND PURPOSE</heading><section identifier="/us/state/tx/tac/t40/p20/c856/scA/s856.1"><num value="856.1">§856.1</num><heading>Purpose</heading><content>The Vocational Rehabilitation Services Program is a joint state- and federal-funded program administered by the Agency's Vocational Rehabilitation Division (VRD) to assess, plan, develop, and provide vocational rehabilitation services for eligible individuals with disabilities, consistent with their unique strengths, resources, priorities, concerns, abilities, capabilities, interests, and informed choice so that these individuals can prepare for and engage in competitive integrated employment and achieve economic self-sufficiency. The Vocational Rehabilitation Services Program seeks to empower individuals with disabilities to maximize employment, economic self-sufficiency, independence, and inclusion in and integration into society. In accordance with the Rehabilitation Act of 1973, as amended, VRD is the single designated state unit for the Vocational Rehabilitation Services Program.</content><note type="source"><p>Source Note: The provisions of this §856.1 adopted to be effective December 10, 2012, 37 TexReg 9651; duplicated effective September 1, 2016, as published in the Texas Register September 2, 2016, 41 TexReg 6773; amended to be effective November 8, 2017, 42 TexReg 6195; amended to be effective December 26, 2022, 47 TexReg 8740.</p></note></section><section identifier="/us/state/tx/tac/t40/p20/c856/scA/s856.3"><num value="856.3">§856.3</num><heading>Definitions</heading><content>In addition to the definitions contained in Texas Labor Code, §352.001 and 34 Code of Federal Regulations §361.5, the following words and terms, when used in this chapter, shall have the following meanings.(1) Academic training--A postsecondary program of organized instruction or study that may lead to an academic, professional, or vocational degree, certificate, or other recognized educational credential. Academic training does not include continuing education required for maintaining certification in a field in which the customer is already gainfully employed.(2) Applicant--An individual who applies to the Vocational Rehabilitation Division for vocational rehabilitation services.(3) Blind--An individual having not more than 20/200 visual acuity in the better eye with correcting lenses or visual acuity greater than 20/200 but with a limitation in the field of vision such that the widest diameter of the visual field subtends an angle no greater than 20 degrees.(4) Customer--An individual with a disability who has applied for or is receiving vocational rehabilitation services.(5) Visually Impaired--A visual acuity of not more than 20/70 in the better eye with correcting lenses, or visual acuity greater than 20/70 but with a limitation in the field of vision such that the widest diameter of the visual field subtends an angle no greater than 30 degrees.(6) Vocational rehabilitation counselor--An Agency employee who is trained to provide vocational guidance and counseling and meets the minimum qualifications designated in a functional job description.</content><note type="source"><p>Source Note: The provisions of this §856.3 adopted to be effective December 10, 2012, 37 TexReg 9651; duplicated effective September 1, 2016, as published in the Texas Register September 2, 2016, 41 TexReg 6773; amended to be effective November 8, 2017, 42 TexReg 6195; amended to be effective December 26, 2022, 47 TexReg 8740.</p></note></section><section identifier="/us/state/tx/tac/t40/p20/c856/scA/s856.4"><num value="856.4">§856.4</num><heading>Statewideness</heading><content>The state plan for vocational rehabilitation services is effective in all political subdivisions of the state.</content><note type="source"><p>Source Note: The provisions of this §856.4 adopted to be effective December 10, 2012, 37 TexReg 9651; duplicated effective September 1, 2016, as published in the Texas Register September 2, 2016, 41 TexReg 6773.</p></note></section><section identifier="/us/state/tx/tac/t40/p20/c856/scA/s856.5"><num value="856.5">§856.5</num><heading>Consultation Regarding the Administration of the State Plan</heading><content>(a) The state plan must ensure that, in connection with developing and administering general policy in the administration of the state plan, VRD seeks and takes into account the views of:(1) individuals who receive vocational rehabilitation services or, as appropriate, the individuals' representatives;(2) personnel working in the field of vocational rehabilitation;(3) providers of vocational rehabilitation services;(4) the Client Assistance Program (CAP) director; and(5) the Rehabilitation Council of Texas.(b) The state plan must specifically describe the manner in which VRD will take into account the views regarding state policy and administration of the state plan that are expressed in the customer satisfaction surveys conducted by the Rehabilitation Council of Texas under 34 CFR §361.17(h)(4) or by VRD.</content><note type="source"><p>Source Note: The provisions of this §856.5 adopted to be effective December 10, 2012, 37 TexReg 9651; duplicated effective September 1, 2016, as published in the Texas Register September 2, 2016, 41 TexReg 6773; amended to be effective November 8, 2017, 42 TexReg 6195.</p></note></section></subchapter><subchapter identifier="/us/state/tx/tac/t40/p20/c856/scB"><num value="B">SUBCHAPTER B</num><heading>ELIGIBILITY AND PROVISION OF SERVICES</heading><section identifier="/us/state/tx/tac/t40/p20/c856/scB/s856.19"><num value="856.19">§856.19</num><heading>Application</heading><content>An individual is considered to have submitted an application when the individual or the individual's representative, as appropriate:(1) has completed and signed the VRD application form or has otherwise requested services;(2) has provided the information necessary to initiate an assessment to determine eligibility and priority for services; and(3) is available to complete the assessment process.</content><note type="source"><p>Source Note: The provisions of this §856.19 adopted to be effective November 8, 2017, 42 TexReg 6195.</p></note></section><section identifier="/us/state/tx/tac/t40/p20/c856/scB/s856.20"><num value="856.20">§856.20</num><heading>Eligibility</heading><content>(a) The Vocational Rehabilitation Division (VRD) bases eligibility for vocational rehabilitation (VR) services on the following requirements only.(b) Within 60 days of application, a VR counselor must:(1) determine that the applicant has a physical or mental impairment;(2) determine that the impairment constitutes or results in a substantial impediment to employment for the applicant;(3) establish that the applicant requires VR services to prepare for, secure, retain, advance in, or regain employment that is consistent with the applicant's unique strengths, resources, priorities, concerns, abilities, capabilities, interests, and informed choice; and(4) presume that the applicant is capable of achieving an employment outcome unless there is a demonstration by clear and convincing evidence in trial work that the applicant is incapable of achieving an employment outcome because of the severity of the applicant's disability.(c) Social Security disability recipients and beneficiaries are presumed eligible for VR services unless there is a demonstration by clear and convincing evidence in trial work that the applicant is incapable of achieving an employment outcome because of the severity of the applicant's disability.(d) Eligibility or ineligibility must be determined no later than 60 days after the applicant, or the applicant's representative, as appropriate, has signed and submitted an application for VR services in accordance with the provisions of §856.19 of this subchapter (relating to Application).(e) Exceptions to the 60-day time frame for determining eligibility or ineligibility may occur only when:(1) VRD notifies the applicant that unforeseen circumstances beyond the control of VRD preclude it from completing the determination in 60 days;(2) the applicant, or the applicant's representative, as appropriate, agrees to a specific extension of time; or(3) VRD requires further time exploring an applicant's abilities, capabilities, and capacity to perform in work situations through trial work.(f) Eligibility must be determined before applying Subchapter F of this chapter (relating to Methods of Administration of Vocational Rehabilitation), if appropriate, and Subchapter D of this chapter (relating to Customer Participation).</content><note type="source"><p>Source Note: The provisions of this §856.20 adopted to be effective December 10, 2012, 37 TexReg 9651; duplicated effective September 1, 2016, as published in the Texas Register September 2, 2016, 41 TexReg 6773; amended to be effective November 8, 2017, 42 TexReg 6195; amended to be effective December 26, 2022, 47 TexReg 8740.</p></note></section><section identifier="/us/state/tx/tac/t40/p20/c856/scB/s856.21"><num value="856.21">§856.21</num><heading>Prohibited Factors</heading><content>(a) VRD does not impose, as part of determining eligibility under this subchapter, a duration-of-residence requirement that excludes from services any applicant who is present in the state.(b) In determining eligibility under this subchapter, VRD ensures that:(1) No applicant or group of applicants is excluded or found ineligible solely on the basis of the type of disability; and(2) The eligibility requirements are applied without regard to the:(A) age, sex, race, color, or national origin of the applicant;(B) type of expected employment outcome;(C) source of referral for vocational rehabilitation services;(D) particular service needs or anticipated cost of services required by an applicant or the income level of an applicant or applicant's family;(E) applicants' employment history or current employment status; and(F) applicants' educational status or current educational credential.</content><note type="source"><p>Source Note: The provisions of this §856.21 adopted to be effective December 10, 2012, 37 TexReg 9651; duplicated effective September 1, 2016, as published in the Texas Register September 2, 2016, 41 TexReg 6773; amended to be effective November 8, 2017, 42 TexReg 6195.</p></note></section><section identifier="/us/state/tx/tac/t40/p20/c856/scB/s856.22"><num value="856.22">§856.22</num><heading>Trial Work</heading><content>(a) Trial work is used only to determine whether an applicant with a significant disability is capable of achieving an employment outcome.(b) VRD provides only the vocational rehabilitation services necessary to determine if the applicant is capable of achieving an employment outcome. Services are provided in the most integrated setting possible, consistent with the informed choice of the applicant.(c) VRD may terminate trial work services when:(1) there is sufficient evidence to conclude that the applicant can achieve an employment outcome;(2) the applicant is found ineligible for any additional vocational rehabilitation services on the basis of clear and convincing evidence that the applicant cannot be expected to benefit in terms of an employment outcome from vocational rehabilitation services; or(3) the applicant is unavailable for services.(d) When an applicant is determined ineligible for vocational rehabilitation services after trial work, VRD conducts a periodic review at least annually of the ineligibility decision in which the applicant is afforded a clear opportunity for full consultation in the reconsideration of the decision. A periodic review is not required when the applicant has refused services, the applicant has refused a periodic review, the applicant is no longer present in the state, the applicant's whereabouts are unknown, or the applicant's medical condition is rapidly progressive or terminal.</content><note type="source"><p>Source Note: The provisions of this §856.22 adopted to be effective December 10, 2012, 37 TexReg 9651; duplicated effective September 1, 2016, as published in the Texas Register September 2, 2016, 41 TexReg 6773; amended to be effective November 8, 2017, 42 TexReg 6195.</p></note></section><section identifier="/us/state/tx/tac/t40/p20/c856/scB/s856.23"><num value="856.23">§856.23</num><heading>Determination of Ineligibility</heading><content>When an applicant is determined ineligible for vocational rehabilitation services or a customer receiving services under an individualized plan of employment (IPE) is no longer eligible for services, VRD must:(1) make the determination only after providing an opportunity for full consultation with the individual or the individual's representative, as appropriate;(2) inform the individual in writing of the ineligibility determination. The written determination, to be supplemented as necessary by other appropriate modes of communication consistent with the individual's informed choice, must include the reasons for that determination and the means by which the individual may express and seek remedy for any dissatisfaction, including the procedures for review of a determination by the VR counselor;(3) provide the individual with a description of services available from the Client Assistance Program established under 34 CFR Part 370 and information on how to contact that program;(4) refer the individual to:(A) other programs that are part of the one-stop service delivery system under the Workforce Innovation and Opportunity Act that can address the individual's training or employment-related needs; or(B) local extended employment providers if the ineligibility determination is based on a finding that the individual is incapable of achieving, or has chosen not to pursue, an employment outcome; and(5) review within 12 months and annually thereafter, if requested by the individual or, if appropriate, by the individual's representative, any ineligibility determination that is based on a finding that the individual is incapable of achieving an employment outcome. It is not necessary that the review be conducted in situations in which the individual has refused it, the individual is no longer present in the state, the individual's whereabouts are unknown, or the individual's medical condition is rapidly progressive or terminal.</content><note type="source"><p>Source Note: The provisions of this §856.23 adopted to be effective December 10, 2012, 37 TexReg 9651; duplicated effective September 1, 2016, as published in the Texas Register September 2, 2016, 41 TexReg 6773; amended to be effective November 8, 2017, 42 TexReg 6195.</p></note></section><section identifier="/us/state/tx/tac/t40/p20/c856/scB/s856.24"><num value="856.24">§856.24</num><heading>Case Closure</heading><content>(a) VRD closes a case when the customer's rehabilitation plan has been completed and the customer has achieved and maintained continuous employment commensurate with the established employment outcome for a minimum of 90 days. VRD closes the case sooner if:(1) VRD is unable to locate or contact the customer;(2) the customer's disability is so severely limiting that there is little chance the customer can be vocationally rehabilitated, as demonstrated by clear and convincing evidence in trial work, or the customer's medical condition is expected to progress to such a severely limiting degree in a fairly short period that rehabilitation services will be of little or no help;(3) the customer has refused services or further services;(4) the customer has died;(5) the customer has been institutionalized;(6) the customer has been determined to have no disabling condition;(7) the customer has refused to cooperate with VRD;(8) transportation is not feasible or available;(9) the customer has been determined to have no impediment to employment;(10) extended services for supported employment are not available;(11) the customer has chosen extended employment (for example, sheltered workshop); or(12) the customer's case has been transferred to another agency.(b) Case closure is made with the customer's full knowledge, when the customer is available.</content><note type="source"><p>Source Note: The provisions of this §856.24 adopted to be effective December 10, 2012, 37 TexReg 9651; duplicated effective September 1, 2016, as published in the Texas Register September 2, 2016, 41 TexReg 6773; amended to be effective November 8, 2017, 42 TexReg 6195.</p></note></section><section identifier="/us/state/tx/tac/t40/p20/c856/scB/s856.40"><num value="856.40">§856.40</num><heading>Provision of Goods and Services</heading><content>(a) The Vocational Rehabilitation Division, as appropriate to the vocational rehabilitation needs of each eligible individual, provides goods and services necessary to render a customer employable, subject to certain limitations prescribed in this subchapter and Subchapters D and E of this chapter (relating to Customer Participation; and Comparable Benefits).(b) Services are provided only as planned in advance and set forth in the customer's individualized plan for employment (IPE). The IPE must be designed to achieve a specific employment outcome that is selected by the individual consistent with the individual's unique strengths, resources, priorities, concerns, abilities, capabilities, interests, and informed choice.</content><note type="source"><p>Source Note: The provisions of this §856.40 adopted to be effective December 10, 2012, 37 TexReg 9651; duplicated effective September 1, 2016, as published in the Texas Register September 2, 2016, 41 TexReg 6773; amended to be effective November 8, 2017, 42 TexReg 6195; amended to be effective December 26, 2022, 47 TexReg 8740.</p></note></section><section identifier="/us/state/tx/tac/t40/p20/c856/scB/s856.41"><num value="856.41">§856.41</num><heading>Comprehensive Assessment</heading><content>(a) After a customer has been determined eligible for vocational rehabilitation services, the Vocational Rehabilitation Division (VRD) conducts assessments using the criteria in subsection (b) of this section for vocational rehabilitation needs and, if necessary, rehabilitation technology needs for each customer in order to develop an individualized plan for employment (IPE) that is designed to achieve the customer's employment outcome.(b) To determine the appropriate employment outcome and services required to achieve it, VRD, as appropriate in each case, may conduct an assessment of the customer's unique strengths, resources, priorities, concerns, abilities, capabilities, interests, and needs, including the need for supported employment services, in the most integrated setting possible, consistent with the informed choice of the customer.(c) The assessment is limited to information that is necessary to identify the customer's rehabilitation needs and develop the IPE and may, to the extent needed, include:(1) an analysis of medical, psychological, vocational, educational, and other related factors that bear on the customer's impediment to employment and rehabilitation needs. Additional examinations are authorized after services are initiated when conditions arise that jeopardize the customer's IPE;(2) an analysis of the customer's personality, career interests, interpersonal skills, intelligence and related functional capacities, educational achievement, work experience, vocational aptitudes, personal and social adjustments, and employment opportunities;(3) an appraisal of the customer's patterns of work behavior and services needed to acquire occupational skills and to develop work attitudes, work habits, work tolerance, and social and behavioral patterns suitable for successful job performance; and(4) an assessment, through provision of rehabilitation technology services, of the customer's capacities to perform in a work environment, including in an integrated setting, to the maximum extent feasible and consistent with the customer's informed choice.(d) VRD uses, to the maximum extent possible and appropriate and in accordance with confidentiality requirements, existing information, including information that is provided by the customer, the family of the customer, and education agencies.</content><note type="source"><p>Source Note: The provisions of this §856.41 adopted to be effective December 10, 2012, 37 TexReg 9651; duplicated effective September 1, 2016, as published in the Texas Register September 2, 2016, 41 TexReg 6773; amended to be effective November 8, 2017, 42 TexReg 6195; amended to be effective December 26, 2022, 47 TexReg 8740.</p></note></section><section identifier="/us/state/tx/tac/t40/p20/c856/scB/s856.42"><num value="856.42">§856.42</num><heading>Counseling, Guidance, and Referral</heading><content>VRD provides counseling, guidance, and referral services as necessary for the customer's vocational rehabilitation. Counseling is a process in which a VR counselor works with the customer to help the customer understand both problems and vocational potential. Counseling is a continuous process throughout the rehabilitation program to help the customer make the best possible vocational, personal, and social adjustment. Referral means referral of the customer to other agencies for assistance not available from VRD.</content><note type="source"><p>Source Note: The provisions of this §856.42 adopted to be effective December 10, 2012, 37 TexReg 9651; duplicated effective September 1, 2016, as published in the Texas Register September 2, 2016, 41 TexReg 6773; amended to be effective November 8, 2017, 42 TexReg 6195.</p></note></section><section identifier="/us/state/tx/tac/t40/p20/c856/scB/s856.43"><num value="856.43">§856.43</num><heading>Physical Restoration Services</heading><content>VRD provides physical restoration services that are necessary to correct or substantially modify the customer's physical condition within a reasonable period. The physical conditions for which the services are rendered must be stable or slowly progressive.</content><note type="source"><p>Source Note: The provisions of this §856.43 adopted to be effective December 10, 2012, 37 TexReg 9651; duplicated effective September 1, 2016, as published in the Texas Register September 2, 2016, 41 TexReg 6773; amended to be effective November 8, 2017, 42 TexReg 6195.</p></note></section><section identifier="/us/state/tx/tac/t40/p20/c856/scB/s856.44"><num value="856.44">§856.44</num><heading>Mental Restoration Services</heading><content>(a) VRD provides mental restoration services for mental conditions that are stable or slowly progressive.(b) VRD provides psychiatric treatment as a limited service on a short-term basis only to support achievement of the employment outcome.(c) VRD provides psychotherapy as a limited service on a short-term basis only to support achievement of the employment outcome.</content><note type="source"><p>Source Note: The provisions of this §856.44 adopted to be effective December 10, 2012, 37 TexReg 9651; duplicated effective September 1, 2016, as published in the Texas Register September 2, 2016, 41 TexReg 6773; amended to be effective November 8, 2017, 42 TexReg 6195.</p></note></section><section identifier="/us/state/tx/tac/t40/p20/c856/scB/s856.45"><num value="856.45">§856.45</num><heading>Vocational and Other Training Services</heading><content>(a) The Vocational Rehabilitation Division (VRD) purchases vocational and other training services for customers who require additional knowledge or skills to enter employment consistent with their aptitudes and ability, and compatible with their physical or mental impairments.(b) VRD purchases vocational and other training services through an appropriate facility. These facilities include accredited colleges and universities, certified public or private businesses, technical and vocational schools, on-the-job training, correspondence course training, tutorial training, and community rehabilitation program training.(c) Academic training in institutions of higher education (universities, colleges, community or junior colleges, vocational schools, technical institutes, or hospital schools of nursing) is subject to the following:(1) Academic training in proprietary vocational schools and technical institutes must be provided only in schools that are licensed or certified by the Agency on the Licensed Career Schools and Colleges Directory website, the Eligible Training Provider System website, or another regulatory agency, before including the training on the individualized plan for employment.(2) No vocational rehabilitation (VR) funds may be used to pay for academic training unless VRD and the customer have made maximum efforts to secure grant assistance in whole or in part from other sources to pay for the training.(3) The PELL grant, like any other comparable services and benefits, must be applied to the educational process before the expenditure of VRD funds for services under this section. Services must not be denied pending receipt of a PELL grant, but must be contingent upon the customer's making application if eligible.(4) Academic training must be provided through public, tax-supported colleges and universities in Texas unless:(A) a specific curriculum related to the customer's academic major is not available at a Texas public institution;(B) academic training elsewhere is determined to be more economical; or(C) academic training elsewhere provides specialized services needed by the customer.(5) If the customer chooses to obtain academic training at a private college or university in Texas or at a college or university outside Texas and the provisions in paragraph (4) of this subsection do not apply, academic support must be limited to that which the customer would receive if he or she attended a state-supported college or university in Texas, unless the customer is a recipient of Social Security benefits, either Supplemental Security Income (SSI) or Social Security Disability Insurance (SSDI).(6) A customer who is blind, does not meet the residency requirements of a particular institution, and is not eligible for tuition exemption under Texas Education Code, §54.364 may receive VRD tuition assistance based on the customer's economic need. Unless the customer is a recipient of Social Security benefits, either SSI or SSDI, payments must not exceed the tuition paid for a customer who does meet the residency requirements.(7) Tuition and fee exemption is an exemption from payment of tuition and/or required fees normally charged by a state-supported college or university. Required fees include student services, building use, health center use, lab fees, and property deposits not reimbursable to the student. Required fees do not include optional fees.(8) Any equipment purchased for the customer during academic training must be needed by the customer to help maintain academic success so that the customer can meet the employment outcome.(9) Once admitted to academic training:(A) the customer must maintain and complete a full-time course load as defined by the school or educational institution. This requirement may be waived if:(i) the customer is a graduating senior;(ii) the customer is an incoming freshman (first two semesters or quarters);(iii) the customer is a returning adult (first academic year only);(iv) the customer is in summer school; or(v) other extenuating circumstances prevent the customer from participating in a full-time course load; and(B) the customer is required to meet with the VR counselor at least once each semester, to submit add or drop slips as changes occur, and to provide grade slips or transcripts to the VR counselor at the end of each semester.(d) VRD requires that each customer who is provided with vocational or other training services by VRD apply for financial assistance where reasonably available. This assistance can include federal, state, or local grants-in-aid and private scholarships where applicable. If the customer has not done so before the time of application for vocational rehabilitation services, the VR counselor assists the customer in doing so.</content><note type="source"><p>Source Note: The provisions of this §856.45 adopted to be effective December 10, 2012, 37 TexReg 9651; duplicated effective September 1, 2016, as published in the Texas Register September 2, 2016, 41 TexReg 6773; amended to be effective November 8, 2017, 42 TexReg 6195; amended to be effective December 26, 2022, 47 TexReg 8740.</p></note></section><section identifier="/us/state/tx/tac/t40/p20/c856/scB/s856.46"><num value="856.46">§856.46</num><heading>Maintenance</heading><content>VRD may pay maintenance to the customer. Maintenance is a payment to the customer made during any stage of the rehabilitation process to cover basic living expenses, such as food, shelter, clothing, and other subsistence expenses that are in excess of the customer's normal expenses, and are necessary for the customer to derive the full benefit of other vocational rehabilitation services.</content><note type="source"><p>Source Note: The provisions of this §856.46 adopted to be effective December 10, 2012, 37 TexReg 9651; duplicated effective September 1, 2016, as published in the Texas Register September 2, 2016, 41 TexReg 6773; amended to be effective November 8, 2017, 42 TexReg 6195.</p></note></section><section identifier="/us/state/tx/tac/t40/p20/c856/scB/s856.47"><num value="856.47">§856.47</num><heading>Transportation</heading><content>VRD may pay for transportation services for the customer in connection with other vocational rehabilitation services.</content><note type="source"><p>Source Note: The provisions of this §856.47 adopted to be effective December 10, 2012, 37 TexReg 9651; duplicated effective September 1, 2016, as published in the Texas Register September 2, 2016, 41 TexReg 6773; amended to be effective November 8, 2017, 42 TexReg 6195.</p></note></section><section identifier="/us/state/tx/tac/t40/p20/c856/scB/s856.48"><num value="856.48">§856.48</num><heading>Services for Customers Who Are Deaf, Hard of Hearing, or Deafblind</heading><content>(a) VRD may provide interpreter services for a customer who is deaf, hard of hearing, or deafblind when the services will help the customer to attain the employment outcome.(b) VRD may provide telecommunications, sensory, and other technological aids and devices to facilitate training, employability, and job opportunities for customers with significant disabilities, particularly customers who are deaf, deafblind, or have profound hearing or speech impairments.(c) When delivering interpreter services, note-taking services, or tactile interpreting to individuals who are deaf, hard of hearing, or deafblind, VRD uses interpreters, if available, certified by one of the following:(1) Texas Health and Human Services Commission, Board for Evaluation of Interpreters; or(2) The Registry of Interpreters for the Deaf.</content><note type="source"><p>Source Note: The provisions of this §856.48 adopted to be effective December 10, 2012, 37 TexReg 9651; duplicated effective September 1, 2016, as published in the Texas Register September 2, 2016, 41 TexReg 6773; amended to be effective November 8, 2017, 42 TexReg 6195.</p></note></section><section identifier="/us/state/tx/tac/t40/p20/c856/scB/s856.49"><num value="856.49">§856.49</num><heading>Job Development, Placement and Retention</heading><content>(a) The principal objective of vocational rehabilitation services is a competitive integrated employment outcome for each customer that is consistent with the individual's strengths, resources, priorities, concerns, abilities, capabilities, interests, and informed choice.(b) Employment outcomes include entering, advancing in, or retaining full-time or, if appropriate, part-time competitive employment in the integrated labor market; supported employment; or any other type of employment in an integrated setting, including self-employment, telecommuting, or business ownership.</content><note type="source"><p>Source Note: The provisions of this §856.49 adopted to be effective December 10, 2012, 37 TexReg 9651; duplicated effective September 1, 2016, as published in the Texas Register September 2, 2016, 41 TexReg 6773; amended to be effective November 8, 2017, 42 TexReg 6195.</p></note></section><section identifier="/us/state/tx/tac/t40/p20/c856/scB/s856.50"><num value="856.50">§856.50</num><heading>Post-Employment Services</heading><content>(a) The Vocational Rehabilitation Division may provide post-employment services to customers in order to maintain or strengthen the customer's employment. A customer may be considered for post-employment services if he or she has an employment-related problem that does not entail a complex rehabilitation effort or address a new and distinct substantial impediment to employment.(b) Post-employment services are services that are necessary for the customer to maintain, regain, or advance in an employment outcome that is consistent with the customer's strengths, resources, priorities, concerns, abilities, capabilities, interests, and informed choice.</content><note type="source"><p>Source Note: The provisions of this §856.50 adopted to be effective December 10, 2012, 37 TexReg 9651; duplicated effective September 1, 2016, as published in the Texas Register September 2, 2016, 41 TexReg 6773; amended to be effective November 8, 2017, 42 TexReg 6195; amended to be effective December 26, 2022, 47 TexReg 8740.</p></note></section><section identifier="/us/state/tx/tac/t40/p20/c856/scB/s856.51"><num value="856.51">§856.51</num><heading>Occupational Licenses, Tools, Equipment, Initial Stocks, and Supplies</heading><content>(a) VRD may engage in or contract for activities to provide the customer with occupational licenses, including any license, permit, or other written authority that a state, city, or other governmental unit requires an individual to obtain before entering an occupation or self-employment.(b) VRD may provide the customer with tools, equipment, initial stocks, goods, and supplies necessary to enter an occupation or self-employment.(c) Customers must safeguard and maintain in a serviceable condition nonconsumable supplies, tools, and equipment and will not sell, give away, or otherwise wrongfully dispose of them.(d) The customer must sign a prescribed form agreeing to the terms of subsection (c) of this section at the time that the customer receives tools and equipment.</content><note type="source"><p>Source Note: The provisions of this §856.51 adopted to be effective December 10, 2012, 37 TexReg 9651; duplicated effective September 1, 2016, as published in the Texas Register September 2, 2016, 41 TexReg 6773; amended to be effective November 8, 2017, 42 TexReg 6195.</p></note></section><section identifier="/us/state/tx/tac/t40/p20/c856/scB/s856.52"><num value="856.52">§856.52</num><heading>Individualized Plan for Employment</heading><content>(a) The Vocational Rehabilitation Division (VRD) initiates and continuously develops an individualized plan for employment (IPE) for each individual eligible for vocational rehabilitation (VR) services and for each individual being provided such services in trial work. All IPEs must be written using the form prescribed by VRD for this purpose.(b) VRD advises the customer or, the customer's parent, guardian, or other representative, as appropriate, of the customer's options and all VRD procedures and requirements affecting the development and review of an IPE, including the availability of special modes of communication.(c) The VR counselor and customer or, as appropriate, the customer's parent, guardian, or other representative, uses information obtained during the assessment to help the customer make informed choices about VR needs, employment outcome, intermediate rehabilitation objectives, and the nature and scope of VR services and the service providers to be included in the IPE.(d) The VR counselor must provide the customer or, as appropriate, the customer's representative, with a copy of the IPE and its amendments, in the mode of communication specified by the customer or representative.(e) All substantive revisions necessary to reflect changes in the customer's employment outcome, specific VR services, service providers, and the methods used to procure services must be incorporated into the customer's IPE.(f) The customer may develop all or part of the IPE with assistance from the VR counselor, a qualified vocational rehabilitation counselor not employed by VRD, or another resource outside VRD. VRD does not pay for non-VRD assistance with IPE development. The IPE is not final until approved by the VR counselor. A copy of the plan and any amendments are provided to the customer or the customer's parent, guardian, or other representative, as appropriate.(g) The data used to prepare the IPE must include the information necessary to satisfy federal requirements and to adequately document the customer's plan of services. Regardless of the approach selected by the customer to develop the IPE, the IPE must, at a minimum, contain the following mandatory components:(1) a description of the customer's specific employment outcome;(2) a description of the specific VR services that are needed to achieve the employment outcome, including, as appropriate, the provision of assistive technology devices and assistive technology services; personal assistance services, including training in the management of those services; and timelines for initiating the services and for achieving the employment outcome;(3) a description of the entity chosen by the customer or, as appropriate, the customer's representative, that will provide the VR services, and the methods used to procure the services;(4) a description of criteria to evaluate progress toward achievement of the employment outcome;(5) the terms and conditions of the IPE, including, as appropriate, information describing:(A) VRD responsibilities; and(B) customer responsibilities, including:(i) the customer's responsibilities related to his or her employment outcome;(ii) if applicable, the customer's participation in paying for the costs of the plan;(iii) the customer's responsibility to apply for and secure comparable benefits; and(iv) the responsibilities of other entities resulting from arrangements made under comparable services or benefits;(6) for a customer with the most significant disabilities for whom an employment outcome in a supported employment setting has been determined to be appropriate, information identifying:(A) the extended services that the customer needs; and(B) the source of extended services or, if the source of the extended services cannot be identified at the time that the IPE is developed, a description of the basis for a reasonable expectation that a source will become available; and(7) as determined to be necessary, a statement of projected need for post-employment services.(h) In developing an IPE for a student with a disability who is receiving special education services, VRD must consider the student's individualized education program.(i) The VR counselor must advise the customer of the customer's rights and the means by which the customer may express and seek remedy for dissatisfaction with the plan, including the opportunity for an administrative review of VRD action and a fair hearing in accordance with the Administrative Procedure Act, Texas Government Code, Chapter 2001, and the rules in Chapter 850 of this title (relating to Vocational Rehabilitation Services Administrative Rules and Procedures).(j) The VR counselor reviews the IPE as often as necessary, but on at least an annual basis, at which time the customer or the customer's parent, guardian, or other representative, as appropriate, is afforded an opportunity to review the plan and, if necessary, jointly redevelop its terms.(k) The IPE is a joint commitment that must be signed by both the VR counselor and the customer.(l) VRD may provide only goods and services that are reasonable and necessary to achieve the employment outcome identified in the customer's IPE.(m) VRD provides services in the most integrated setting that is appropriate for the services involved and is consistent with the informed choice of the eligible individual.(n) Before suspending, reducing, or terminating any planned service in the IPE, VRD shall provide notification of intent to the customer.(o) VRD must suspend, reduce, or terminate the customer's planned services no sooner than 10 working days after notice has been provided to the customer.</content><note type="source"><p>Source Note: The provisions of this §856.52 adopted to be effective December 10, 2012, 37 TexReg 9651; duplicated effective September 1, 2016, as published in the Texas Register September 2, 2016, 41 TexReg 6773; amended to be effective November 8, 2017, 42 TexReg 6195; amended to be effective December 26, 2022, 47 TexReg 8740.</p></note></section><section identifier="/us/state/tx/tac/t40/p20/c856/scB/s856.53"><num value="856.53">§856.53</num><heading>Customers Determined to Have Achieved Employment Outcome</heading><content>(a) The Vocational Rehabilitation Division (VRD) determines a customer to have achieved an employment outcome when the following requirements are met:(1) the provision of services under the customer's individualized plan for employment (IPE) has contributed to the achievement of the employment outcome;(2) the customer has achieved the employment outcome that is described in the customer's IPE and that is consistent with the customer's strengths, resources, priorities, concerns, abilities, capabilities, interests, and informed choice;(3) the employment outcome is in an integrated setting;(4) the customer has maintained the employment outcome for at least 90 days; and(5) the customer and the vocational rehabilitation counselor consider the employment outcome to be satisfactory and agree that the customer is performing well on the job.(b) After a customer has been determined to have achieved an employment outcome, VRD informs the customer of the availability of post-employment services as required to maintain, regain, or advance in employment.</content><note type="source"><p>Source Note: The provisions of this §856.53 adopted to be effective December 10, 2012, 37 TexReg 9651; duplicated effective September 1, 2016, as published in the Texas Register September 2, 2016, 41 TexReg 6773; amended to be effective November 8, 2017, 42 TexReg 6195; amended to be effective December 26, 2022, 47 TexReg 8740.</p></note></section><section identifier="/us/state/tx/tac/t40/p20/c856/scB/s856.54"><num value="856.54">§856.54</num><heading>Services to Family Members</heading><content>(a) VR services are provided to family members only if without the services the applicant or customer would be unable to begin or continue the rehabilitation program, and the customer's employment would be unnecessarily delayed or could not be achieved.(b) Only family members whose receipt of services would further the applicant's or customer's vocational adjustment or rehabilitation may receive services.(c) Family member, for purposes of receiving vocational rehabilitation services in accordance with this section, means an individual:(1) who either:(A) is a relative or guardian of the applicant or customer; or(B) lives in the same household as the applicant or customer;(2) who has a substantial interest in the well-being of the applicant or customer; and(3) whose receipt of services is necessary to enable the applicant or customer to achieve an employment outcome.</content><note type="source"><p>Source Note: The provisions of this §856.54 adopted to be effective November 8, 2017, 42 TexReg 6195.</p></note></section><section identifier="/us/state/tx/tac/t40/p20/c856/scB/s856.55"><num value="856.55">§856.55</num><heading>Reader Services</heading><content>(a) Reader services are available only to customers who are blind and who are receiving vocational or academic training.(b) The customer must use all other available reading sources to the greatest extent possible before seeking reimbursement from VRD for reader services.(c) The maximum amount allowed per month for reader services is calculated according to the number of semester hours the customer is taking, whether during a fall, spring, or summer semester, and whether the customer is an undergraduate or graduate student. The rate of reimbursement is available from any VRD office during business hours.(d) VRD does not pay for reader services rendered by a member of the customer's family.(e) To receive reimbursement for reader services, the customer must submit the information required by VRD using the prescribed form.</content><note type="source"><p>Source Note: The provisions of this §856.55 adopted to be effective November 8, 2017, 42 TexReg 6195.</p></note></section><section identifier="/us/state/tx/tac/t40/p20/c856/scB/s856.56"><num value="856.56">§856.56</num><heading>Assistive Technology Devices</heading><content>(a) Assistive technology devices are purchased only after evaluation of the customer's need. Simple and less expensive alternatives must be considered first.(b) The customer must return to the Vocational Rehabilitation Division any assistive technology device no longer needed for training, employment, or pursuit of employment.</content><note type="source"><p>Source Note: The provisions of this §856.56 adopted to be effective November 8, 2017, 42 TexReg 6195; amended to be effective December 26, 2022, 47 TexReg 8740.</p></note></section></subchapter><subchapter identifier="/us/state/tx/tac/t40/p20/c856/scC"><num value="C">SUBCHAPTER C</num><heading>RATES FOR MEDICAL SERVICES</heading><section identifier="/us/state/tx/tac/t40/p20/c856/scC/s856.57"><num value="856.57">§856.57</num><heading>Alternative Purchasing Methods - Rates for Medical Services</heading><content>Under Texas Labor Code, §352.054, this section sets forth the standards governing the determination of rates paid for medical services provided by the Agency. The rates determined under these standards are reevaluated annually:(1) Rates shall be established based on Medicare and Medicaid schedules for current procedural terminology. Where Medicare and Medicaid schedules are not applicable, rates that represent best value shall be established based on factors that include reasonable and customary industry standards for each specific service.(2) Rates shall be established at a level adequate to ensure that enough qualified providers are available to provide assessment and treatment within a geographic distribution that reflects customer or claimant distribution.(3) Notification of the proposed schedule of rates shall be published in the Texas Register to allow interested persons to present comments to the Agency before the rates are established. (4) After the reevaluation process is completed in accordance with the requirements in paragraphs (1) and (2) of this section, the Agency's executive director or deputy executive director may establish the rates for medical services. (5) Exceptions to established rates may be made on a case-by-case basis by the Vocational Rehabilitation counselor after consultation with the Agency's medical director or optometric consultant. Exceptions contrary to the Agency's medical director's or optometric consultant's recommendation require approval by the Vocational Rehabilitation Division (VRD) deputy director or VRD director.</content><note type="source"><p>Source Note: The provisions of this §856.57 adopted to be effective August 21, 2018, 43 TexReg 5398; amended to be effective December 26, 2022, 47 TexReg 8740.</p></note></section></subchapter><subchapter identifier="/us/state/tx/tac/t40/p20/c856/scD"><num value="D">SUBCHAPTER D</num><heading>CUSTOMER PARTICIPATION</heading><section identifier="/us/state/tx/tac/t40/p20/c856/scD/s856.59"><num value="856.59">§856.59</num><heading>Purpose of Customer Participation</heading><content>(a) Establishing customer participation in service costs encourages customer commitment to an employment outcome, creates a cooperative relationship between the customer and the Vocational Rehabilitation Division (VRD), and maximizes VRD's limited funds.(b) VRD may require customers to participate in the cost of services based on financial need, unless the customer is a recipient of Social Security benefits, either Supplemental Security Income or Social Security Disability Insurance.</content><note type="source"><p>Source Note: The provisions of this §856.59 adopted to be effective November 8, 2017, 42 TexReg 6195; amended to be effective December 26, 2022, 47 TexReg 8740.</p></note></section><section identifier="/us/state/tx/tac/t40/p20/c856/scD/s856.60"><num value="856.60">§856.60</num><heading>Basic Living Requirements (BLR)</heading><content>(a) The purpose of basic living requirements (BLR) is to establish a framework for determining whether the customer should pay any of the service cost. VRD does not consider BLR in determining eligibility for vocational rehabilitation services, but VRD does apply BLR to determine whether the customer must contribute to the cost of certain services. VRD applies BLR uniformly to ensure that all customers in similar circumstances receive equitable treatment.(b) All services are subject to required customer participation except for the following:(1) services paid for, or reimbursed by, a source other than VRD;(2) counseling, guidance, and referral provided by VRD;(3) employment assistance services provided by VRD;(4) diabetes education training;(5) VR teacher services (including consumable supplies);(6) orientation and mobility services;(7) assessment services, to determine eligibility and rehabilitation needs;(8) interpreter services;(9) reader services;(10) translator services;(11) personal assistant services; and/or(12) job-related services: job placement, services leading to supported employment, and job coach services.(c) Customers who are recipients of Social Security disability benefits, either SSI or SSDI, are not required to participate in the cost of services.(d) The VR counselor informs each customer of the services that require customer participation in the cost of services and the services that do not require customer participation.(e) If a customer declines to provide financial information to determine BLR, it is assumed that the customer has resources that exceed the BLR and therefore must fully participate in the cost of planned services.</content><note type="source"><p>Source Note: The provisions of this §856.60 adopted to be effective December 10, 2012, 37 TexReg 9651; duplicated effective September 1, 2016, as published in the Texas Register September 2, 2016, 41 TexReg 6773; amended to be effective November 8, 2017, 42 TexReg 6195.</p></note></section></subchapter><subchapter identifier="/us/state/tx/tac/t40/p20/c856/scE"><num value="E">SUBCHAPTER E</num><heading>COMPARABLE BENEFITS</heading><section identifier="/us/state/tx/tac/t40/p20/c856/scE/s856.71"><num value="856.71">§856.71</num><heading>Availability of Comparable Services and Benefits</heading><content>(a) If comparable services or benefits exist under any other program and are available to the customer at the time needed to achieve the employment outcome in the customer's individualized plan for employment (IPE), the Vocational Rehabilitation Division (VRD) must use those comparable services or benefits to meet, in whole or in part, the cost of vocational rehabilitation (VR) services.(b) If comparable services or benefits exist under any other program, but are not available to the customer at the time necessary to satisfy the employment outcome in the consumer's IPE, VRD must provide VR services until those comparable services and benefits become available.(c) The following services are exempt from determination of the availability of comparable services and benefits:(1) assessment for determining eligibility and priority for services;(2) assessment for determining VR needs;(3) VR counseling, guidance, and referral services;(4) placement services;(5) rehabilitation technology services; and(6) post-employment services consisting of the services listed under paragraphs (1) - (5) of this subsection.(d) The requirements of subsection (a) of this section also do not apply if such a determination would interrupt or delay:(1) the progress of the individual toward achieving the employment outcome identified in the IPE;(2) an immediate job placement; or(3) the provision of VR services to any individual who is determined to be at extreme medical risk, based on medical evidence provided by an appropriate qualified medical professional.</content><note type="source"><p>Source Note: The provisions of this §856.71 adopted to be effective December 10, 2012, 37 TexReg 9651; duplicated effective September 1, 2016, as published in the Texas Register September 2, 2016, 41 TexReg 6773; amended to be effective November 8, 2017, 42 TexReg 6195; amended to be effective December 26, 2022, 47 Texreg 8740.</p></note></section></subchapter><subchapter identifier="/us/state/tx/tac/t40/p20/c856/scF"><num value="F">SUBCHAPTER F</num><heading>METHODS OF ADMINISTRATION OF VOCATIONAL REHABILITATION</heading><section identifier="/us/state/tx/tac/t40/p20/c856/scF/s856.80"><num value="856.80">§856.80</num><heading>Statewide Studies and Program Evaluation</heading><content>(a) VRD conducts continuing statewide studies of the needs of individuals with disabilities within the state and the methods by which these needs may be most effectively met.(b) The studies are directed toward:(1) assessing the rehabilitation needs of individuals with significant disabilities who reside in the state;(2) reviewing the effectiveness of outreach procedures used to identify and serve individuals with disabilities who are minorities and individuals with disabilities who are unserved or underserved by the vocational rehabilitation system;(3) reviewing a broad variety of methods to provide, expand, and improve vocational rehabilitation services to individuals with the most significant disabilities, including individuals receiving supported employment services;(4) ensuring the orderly and effective development of vocational rehabilitation services; and(5) reviewing the efficacy of the criteria employed by VRD in making ineligibility decisions with respect to applicants for vocational rehabilitation services.(c) Reports of the studies are available to the public for review.</content><note type="source"><p>Source Note: The provisions of this §856.80 adopted to be effective December 10, 2012, 37 TexReg 9651; duplicated effective September 1, 2016, as published in the Texas Register September 2, 2016, 41 TexReg 6773; amended to be effective November 8, 2017, 42 TexReg 6195.</p></note></section><section identifier="/us/state/tx/tac/t40/p20/c856/scF/s856.81"><num value="856.81">§856.81</num><heading>Annual Evaluation</heading><content>(a) VRD conducts an annual comprehensive evaluation of the effectiveness of the state's vocational rehabilitation program in achieving:(1) service goals and priorities established in the state plan and annual amendments to the state plan; and(2) compliance with the performance accountability measures established by the Act.(b) The evaluation measures the adequacy of VRD performance in providing vocational rehabilitation services, especially to individuals with the most significant disabilities, considering the state's vocational rehabilitation program financial resources. The evaluation has the following minimum objectives:(1) to ensure that the rehabilitation program is serving the target population and that the services are provided in an equitable manner;(2) to ensure that customers are placed in gainful employment suitable to their capabilities, interests, and informed choice;(3) to measure the extent to which undue delays are avoided in providing customers with services;(4) to ensure that available resources are used effectively to achieve maximum efficiency;(5) to ensure that VR counselors maintain manageable-sized caseloads and provide timely and adequate services to individual customers;(6) to ensure that customers retain the benefits obtained from the rehabilitation process;(7) to ensure that the need for post-employment services is satisfied;(8) to identify reasons why customers are not successfully rehabilitated; and(9) to ensure that the customer is satisfied with the individualized plan for employment.</content><note type="source"><p>Source Note: The provisions of this §856.81 adopted to be effective December 10, 2012, 37 TexReg 9651; duplicated effective September 1, 2016, as published in the Texas Register September 2, 2016, 41 TexReg 6773; amended to be effective November 8, 2017, 42 TexReg 6195.</p></note></section><section identifier="/us/state/tx/tac/t40/p20/c856/scF/s856.82"><num value="856.82">§856.82</num><heading>Order of Selection</heading><content>(a) An order of selection is authorized in Rehabilitation Act of 1973 §101, as amended, to ensure that in times of limited funding customers with the most severe disabilities are selected for service before other customers.(b) In determining whether to invoke an order of selection, the director for VR services applies the criteria set out in 34 CFR §361.36, as amended, and the state plan.(c) The order of selection, if invoked, is applied after eligibility for services is determined.</content><note type="source"><p>Source Note: The provisions of this §856.82 adopted to be effective December 10, 2012, 37 TexReg 9651; duplicated effective September 1, 2016, as published in the Texas Register September 2, 2016, 41 TexReg 6773; amended to be effective November 8, 2017, 42 TexReg 6195.</p></note></section></subchapter><subchapter identifier="/us/state/tx/tac/t40/p20/c856/scG"><num value="G">SUBCHAPTER G</num><heading>CRISS COLE REHABILITATION CENTER</heading><section identifier="/us/state/tx/tac/t40/p20/c856/scG/s856.83"><num value="856.83">§856.83</num><heading>Definitions</heading><content>The following words and terms, when used in this subchapter, have the following meanings, unless the context clearly indicates otherwise:(1) Blind--An individual whose visual acuity with best correction is 20/200 or less in the better eye; or an individual with a limitation in the field of vision such that the widest diameter of the visual field subtends an angle no greater than 20 degrees, which means a visual field of no greater than 20 degrees in the better eye.(2) Customer--An individual with a disability who has applied for or who is receiving VR services.(3) Deafblind--An individual:(A) who has a central visual acuity of 20/200 or less in the better eye with corrective lenses, or a field defect such that the peripheral diameter of visual field subtends an angular distance no greater than 20 degrees, or a progressive visual loss having a prognosis leading to one or both of these conditions;(B) who has a chronic hearing impairment so severe that most speech cannot be understood with optimum amplification, or a progressive hearing loss having a prognosis leading to this condition; and(C) for whom the combination of impairments described in subparagraphs (A) and (B) of this paragraph cause extreme difficulty in attaining independence in daily life activities, achieving psychosocial adjustment, or obtaining a vocation;(D) who, despite the inability to be measured accurately for hearing and vision loss due to cognitive or behavioral constraints, or both, can be determined through functional and performance assessment to have severe hearing and visual disabilities that cause extreme difficulty in attaining independence in daily life activities, achieving psychosocial adjustment, or obtaining vocational objectives; or(E) who meets such other requirements as the Secretary of Education may prescribe by regulation.</content><note type="source"><p>Source Note: The provisions of this §856.83 adopted to be effective August 21, 2018, 43 TexReg 5398.</p></note></section><section identifier="/us/state/tx/tac/t40/p20/c856/scG/s856.84"><num value="856.84">§856.84</num><heading>Initial Eligibility</heading><content>(a) To be eligible for vocational rehabilitation (VR) services at the Criss Cole Rehabilitation Center (CCRC), an individual must be:(1) at least 18 years of age;(2) legally blind or deafblind;(3) a current VR customer; and(4) referred by a VR counselor for services at CCRC.(b) Any individual described in subsection (a) of this section shall be subject to a computerized criminal history (CCH) check, and the results of the CCH will be evaluated as to the individual's eligibility for VR services at CCRC. A risk evaluation must be completed if the CCH check identifies a criminal history. The Agency will perform a risk evaluation to include the following factors, but not be limited to the:(1) severity of the offense;(2) time frame of the offense;(3) rehabilitation of the customer; and(4) parole and community supervision terms.(c) A customer who is receiving services from an entity in another state and who otherwise meets the requirements set out in subsections (a) and (b) of this section may be considered for admission and training on a space-available basis, subject to an agreement between the out-of-state entity and the Agency on payment of cost of services provided to the individual.</content><note type="source"><p>Source Note: The provisions of this §856.84 adopted to be effective August 21, 2018, 43 TexReg 5398; amended to be effective December 26, 2022, 47 TexReg 8740.</p></note></section><section identifier="/us/state/tx/tac/t40/p20/c856/scG/s856.85"><num value="856.85">§856.85</num><heading>Continuing Eligibility</heading><content>(a) To maintain eligibility while receiving CCRC services, the customer (student) must comply with:(1) the Student Handbook; and(2) relevant state and federal laws.(b) Upon finding that the customer no longer complies with subsection (a) of this section, continuing eligibility for services may be revoked and CCRC services discontinued.</content><note type="source"><p>Source Note: The provisions of this §856.85 adopted to be effective August 21, 2018, 43 TexReg 5398.</p></note></section><section identifier="/us/state/tx/tac/t40/p20/c856/scG/s856.86"><num value="856.86">§856.86</num><heading>Services</heading><content>(a) CCRC may provide services such as:(1) assessment;(2) individualized and small-group training;(3) home and personal-management training;(4) orientation and mobility training;(5) braille training;(6) low-vision assessment and training;(7) recreation activities;(8) social skills training;(9) communication systems and tools;(10) technology; and(11) career guidance.(b) This list should not be interpreted as comprehensive; ancillary services may also be available.(c) Services are provided in accordance with VR as listed on the customer's individualized plan for employment.</content><note type="source"><p>Source Note: The provisions of this §856.86 adopted to be effective August 21, 2018, 43 TexReg 5398.</p></note></section><section identifier="/us/state/tx/tac/t40/p20/c856/scG/s856.87"><num value="856.87">§856.87</num><heading>Customer Participation and Comparable Services and Benefits</heading><content>For information about customer participation and comparable benefits, refer to §856.59, relating to Purpose of Customer Participation, and §856.71, relating to Comparable Services and Benefits.</content><note type="source"><p>Source Note: The provisions of this §856.87 adopted to be effective August 21, 2018, 43 TexReg 5398.</p></note></section><section identifier="/us/state/tx/tac/t40/p20/c856/scG/s856.88"><num value="856.88">§856.88</num><heading>Payment of Shift Differentials</heading><content>(a) The Agency's VR Division (VRD) director is authorized to pay a shift differential to eligible VR employees. The shift differential is paid in addition to the employee's regular base pay, exclusive of longevity and benefit replacement pay.(b) The VRD director is authorized to determine the VR positions that are eligible to receive shift differential payments. The rate of payment is a percentage of the employee's monthly regular base pay, not to exceed the maximum allowed by state law, in relation to the number of hours the employee regularly works outside the work hours of Monday through Friday, 8:00 a.m. to 5:00 p.m.(c) This section does not apply to employees whose work hours have been adjusted according to Agency policies that concern staggered work hours.</content><note type="source"><p>Source Note: The provisions of this §856.88 adopted to be effective August 21, 2018, 43 TexReg 5398.</p></note></section></subchapter><subchapter identifier="/us/state/tx/tac/t40/p20/c856/scH"><num value="H">SUBCHAPTER H</num><heading>CERTIFICATE OF BLINDNESS FOR TUITION WAIVER</heading><section identifier="/us/state/tx/tac/t40/p20/c856/scH/s856.90"><num value="856.90">§856.90</num><heading>Purpose</heading><content>The purpose of this subchapter is to set out the administration and general procedures governing the Certificate of Blindness for Tuition Waiver established in Texas Education Code §54.364. VRD provides a certificate of blindness to an individual who applies for a tuition waiver at a state-supported postsecondary school in Texas.</content><note type="source"><p>Source Note: The provisions of this §856.90 adopted to be effective November 8, 2017, 42 TexReg 6195.</p></note></section><section identifier="/us/state/tx/tac/t40/p20/c856/scH/s856.91"><num value="856.91">§856.91</num><heading>Definitions</heading><content>The following words and terms, when used in this subchapter, have the following meanings.(1) Applicant--An individual applying to VRD for a Certificate of Blindness for Tuition Waiver.(2) Certificate of Blindness for Tuition Waiver--The certificate issued by VRD to certify that the applicant is blind. The applicant may use the certificate to apply for a tuition waiver at any Texas state institution of higher education using public funds, as set forth in Texas Education Code §54.364.</content><note type="source"><p>Source Note: The provisions of this §856.91 adopted to be effective November 8, 2017, 42 TexReg 6195.</p></note></section><section identifier="/us/state/tx/tac/t40/p20/c856/scH/s856.92"><num value="856.92">§856.92</num><heading>Eligibility</heading><content>(a) To obtain a certificate, a VRD customer must make a request through his or her VR counselor.(b) For an individual who is not a VRD customer to obtain a certificate, the individual must submit a request in person or by mail to any VRD office, and present visual diagnostic information confirming that the individual is blind.(c) Visual diagnostic information must include eye exams from an optometrist, ophthalmologist, or low-vision specialist.(d) VRD does not pay for diagnostic exams for the sole purpose of obtaining this record.(e) Eligibility for a Certificate of Blindness for Tuition Waiver is determined by VRD, and the determination is final.(f) The Certificate of Blindness for Tuition Waiver issued by VRD is not a determination that an applicant satisfies the residency requirement, or any other requirement set forth under Texas Education Code §54.364, for tuition waiver at any eligible institution.</content><note type="source"><p>Source Note: The provisions of this §856.92 adopted to be effective November 8, 2017, 42 TexReg 6195.</p></note></section></subchapter></chapter><chapter identifier="/us/state/tx/tac/t40/p20/c858"><num value="858">CHAPTER 858</num><heading>PROCUREMENT AND CONTRACT MANAGEMENT REQUIREMENTS FOR PURCHASE OF GOODS AND SERVICES FOR VOCATIONAL REHABILITATION SERVICES</heading><subchapter identifier="/us/state/tx/tac/t40/p20/c858/sc"><num value="">SUBCHAPTER </num><heading></heading><section identifier="/us/state/tx/tac/t40/p20/c858/sc/s858.1"><num value="858.1">§858.1</num><heading>Definitions</heading><content>In addition to the definitions contained in §800.2 of this title, the following words and terms, when used in this chapter, have the following meanings, unless the context clearly indicates otherwise.(1) Amendment--A formal revision or addition to a contract.(2) Bid--An offer to contract with the state submitted in response to a bid invitation.(3) Contract--A written agreement between the Agency and a contractor by the terms of which the contractor agrees to provide goods or services, by sale or lease to or for the Agency for Vocational Rehabilitation (VR) customers.(4) Contract records--All financial and programmatic records, supporting documents, papers, statistical data, or any other written or electronic materials that are pertinent to each specific contract instrument.(5) Contractor--An individual holding a written contract.(6) Corrective action plan--Specific steps to be taken by a contractor to resolve identified deficiencies and/or to address concerns that the contracting agency has regarding the contractor's compliance with contract terms or other applicable laws, rules, or regulations. The corrective action plan may also focus on improving contractor performance (as it relates to service delivery, reporting, and/or financial stability).(7) Debarment--The termination of the ability to continue an existing contract, to receive a new contract, to participate as a contractor or subcontractor, to provide goods or services to Agency Vocational Rehabilitation (VR) customers either directly or indirectly while working for an Agency contractor, or to make a bid, offer, application, or proposal for an Agency contract.(8) Effective date--The date of complete execution of the contract or the date upon which the parties agree that the contract takes effect.(9) Individual--Any individual, corporation, partnership, association, unit of government, or legal entity, however organized, or any portion thereof.(10) Program--Agency activities that are designed to deliver services or benefits provided by statute.(11) Respondent--An individual against whom the Agency has initiated a debarment or suspension action.(12) Subcontract--A written agreement between the original contractor and a third party to provide all or a specified part of the goods, services, work, and/or materials required in the original contract.(13) Suspension--The temporary discontinuance of a contractor's authorization to conduct business with the Agency.</content><note type="source"><p>Source Note: The provisions of this §858.1 adopted to be effective July 6, 2020, 45 TexReg 4532.</p></note></section><section identifier="/us/state/tx/tac/t40/p20/c858/sc/s858.2"><num value="858.2">§858.2</num><heading>Noncompetitive Open Enrollment Solicitation</heading><content>General. The Agency may acquire goods or services through a noncompetitive open enrollment solicitation and enter into enrollment contracts with qualified contractors.(1) An open enrollment solicitation must be conducted in an open and fair manner that reasonably provides interested, qualified contractors with an equal opportunity to obtain a contract or do business with the Agency.(2) The Agency may consider past performance when determining whether to award a contract to an applicant.</content><note type="source"><p>Source Note: The provisions of this §858.2 adopted to be effective July 6, 2020, 45 TexReg 4532.</p></note></section><section identifier="/us/state/tx/tac/t40/p20/c858/sc/s858.3"><num value="858.3">§858.3</num><heading>General Requirements for Contracting</heading><content>(a) To contract with the Agency for VR goods and services, the contractor must:(1) ensure that:(A) staff members meet all qualification requirements established by Agency policy and regulations;(B) all staff members meet minimum qualifications at application and throughout the term of the contract;(C) staff credentials supporting qualifications are on file at the time of hire and maintained throughout the term of the contract; and(D) staff credentials are made available to Agency staff upon request;(2) provide for such fiscal control and fund accounting as may be necessary to ensure proper disbursement and accounting of funds provided by the Agency in accordance with Agency policies and maintain financial and other contract records according to recognized fiscal and accounting practices such as the Generally Accepted Accounting Principles (GAAP);(3) certify on or before the effective date of the contract that the contractor has and will maintain adequate operating funds for conducting business;(4) have and maintain adequate staff to provide services on the effective date of the contract;(5) notify the Agency in writing of changes to contact information according to the requirements of the contract. Unless otherwise specified in the contract, the contractor must notify the Agency:(A) within 10 calendar days after any address change, including of the location of the contractor's office, physical address, or mailing address;(B) immediately of any change in administrator or director; and(C) within seven working days of any change in the contact telephone number designated in the contract;(6) report any suspected violation of rules or laws to the appropriate investigative authority. This includes reporting to the Agency any abuse, neglect, or exploitation.(b) A contractor may not offer, give, or agree to give an Agency employee anything of value.(c) A contractor or applicant may not engage in any activity that presents a real or apparent conflict of interest and must provide written attestation that no real or apparent conflicts of interest exist before execution of a contract with the Agency.(d) Pursuant to Texas Government Code §572.054(b), certain Agency employees may not represent or receive compensation from any individual concerning any contractual matter in which the former employee participated during his or her employment with the state.(e) The Agency may choose not to enter into a contract:(1) when, in the Agency's opinion, the contractor or a controlling party has a documented, unsatisfactory history in contracting with the Agency or with another state agency;(2) if the contractor:(A) subcontracts any direct care services without specific authorization from the Agency ; and/or(B) assigns or transfers the contract without the Agency's prior written approval.(f) The Agency may obtain criminal history information from the Texas Department of Public Safety and may use this information in awarding and administering Agency contracts. When the Agency uses the information, the terms and conditions of use are included in the affected contracts.(g) Goods or services purchased or reimbursed by the Agency may be inspected or monitored at the discretion of the Agency.(h) The Agency may require corrective action, remove or reassign active customers to other contractors for services, and/or impose an adverse action against a contractor for failure to comply with the terms of the contract and/or Agency rules, policies, and procedures.(i) A contractor shall participate in orientation relating to Agency contract requirements before providing goods or services under a contract for the first time.(j) A contractor shall ensure that any facility in which services are provided includes individuals able to communicate in the native language of applicants, recipients of service, and other eligible individuals who have limited English proficiency.(k) Contractors shall take affirmative action to employ and advance in employment qualified individuals with disabilities.</content><note type="source"><p>Source Note: The provisions of this §858.3 adopted to be effective June 17, 2015, 40 TexReg 3638; duplicated effective September 1, 2016, as published in the Texas Register September 2, 2016, 41 TexReg 6773; amended to be effective July 6, 2020, 45 TexReg 4532.</p></note></section><section identifier="/us/state/tx/tac/t40/p20/c858/sc/s858.4"><num value="858.4">§858.4</num><heading>Complaints</heading><content>Upon request from a customer, the contractor must provide the customer with the appropriate name, mailing address, and telephone number to direct complaints to the Agency. The contractor must verify that the name, mailing address, and telephone number it provides to the customer are current and correct.</content><note type="source"><p>Source Note: The provisions of this §858.4 adopted to be effective June 17, 2015, 40 TexReg 3638; duplicated effective September 1, 2016, as published in the Texas Register September 2, 2016, 41 TexReg 6773; amended to be effective July 6, 2020, 45 TexReg 4532.</p></note></section><section identifier="/us/state/tx/tac/t40/p20/c858/sc/s858.7"><num value="858.7">§858.7</num><heading>Contract Monitoring</heading><content>(a) Any service purchased or reimbursed by the Agency may be monitored at the discretion of the Agency.(b) The Agency may conduct compliance monitoring reviews of the contractor's services to determine if the contractor is in compliance with the contract and with program rules and requirements. These reviews are conducted at the location where the contractor is providing the services unless the Agency specifies a different location. The Agency shall assess contractor performance based on contract standards.(c) The Agency may expand a compliance monitoring review period or any requested review sample at any time.(d) The Agency may conduct a fiscal monitoring review:(1) in conjunction with a compliance monitoring review;(2) independent of a compliance monitoring review;(3) when a contract is terminated;(4) as a result of a complaint; or(5) at other times, as the Agency considers necessary.(e) The Agency may use sampling methods in monitoring and auditing contracts.(f) The contractor has the burden of proof in establishing entitlement to payments made under the contract.</content><note type="source"><p>Source Note: The provisions of this §858.7 adopted to be effective June 17, 2015, 40 TexReg 3638; duplicated effective September 1, 2016, as published in the Texas Register September 2, 2016, 41 TexReg 6773; amended to be effective July 6, 2020, 45 TexReg 4532.</p></note></section><section identifier="/us/state/tx/tac/t40/p20/c858/sc/s858.8"><num value="858.8">§858.8</num><heading>Corrective Action Plan</heading><content>If requested by the Agency, the contractor shall prepare and implement a corrective action plan to address and remedy all deficiencies or violations in a timely manner in response to findings of deficiencies by the Agency or other federal or state oversight authorities. The corrective action plan must be acceptable to the Agency. The Agency may subsequently monitor and document the contractor's compliance with the corrective action plan as accepted.</content><note type="source"><p>Source Note: The provisions of this §858.8 adopted to be effective June 17, 2015, 40 TexReg 3638; duplicated effective September 1, 2016, as published in the Texas Register September 2, 2016, 41 TexReg 6773; amended to be effective July 6, 2020, 45 TexReg 4532.</p></note></section><section identifier="/us/state/tx/tac/t40/p20/c858/sc/s858.9"><num value="858.9">§858.9</num><heading>Adverse Actions</heading><content>(a) The Agency may impose an adverse action when the contractor fails to follow the terms of the contract or fails to comply with Agency rules, policies, and procedures. The Agency may impose adverse actions for reasons including, but not limited to:(1) the Agency's determination that one or more customers' health and safety has been or is jeopardized;(2) the contractor's failure to submit an acceptable written corrective action plan as requested by the Agency or failure to comply with an accepted corrective action plan;(3) the contractor's failure to follow an agreed-upon audit resolution payment plan;(4) the contractor's failure to submit an acceptable cost report, if applicable;(5) the contractor's failure to comply with the contract requirements;(6) the contractor's failure to maintain a current required license or the contractor allowing the expiration of any required license, if applicable;(7) the contractor's relocation to a new facility address that does not have the appropriate license, if applicable;(8) the contractor's exclusion from contracting with the Agency or any health and human services program;(9) debarment or exclusion from a federal program;(10) a validated report or reports of abuse, neglect, or exploitation where an owner, employee, or volunteer who has direct access to customers is the perpetrator of, or enables, the abuse, neglect, or exploitation of a customer;(11) substantiated claims of fraud against a contractor; and(12) any other cause of so serious or compelling a nature that it affects the contractor's ability to perform under the contract or presents an imminent risk of harm to or liability for the Agency.(b) The Agency may take the following adverse actions:(1) Recoup money that the contractor owes as a result of overpayments or other billing irregularities;(2) Place a vendor hold on one or all the contractor's contracts, which must be released when the Agency determines that the contractor has resolved the issue or issues causing the hold;(3) Deny all or part of a claim;(4) Direct the contractor to suspend or terminate a subcontractor's participation in the provision of goods or services;(5) Terminate a contract for cause before its expiration date;(6) Suspend the contractor's right to conduct business with the Agency;(7) Debar the contractor's right to contract or conduct business with the Agency, in any capacity, for a specified period of time; or(8) Take any other less severe action or actions that the Agency determines necessary to ensure the contractor's compliance with the underlying contract, after considering the circumstances of a particular case.</content><note type="source"><p>Source Note: The provisions of this §858.9 adopted to be effective June 17, 2015, 40 TexReg 3638; duplicated effective September 1, 2016, as published in the Texas Register September 2, 2016, 41 TexReg 6773; amended to be effective July 6, 2020, 45 TexReg 4532.</p></note></section><section identifier="/us/state/tx/tac/t40/p20/c858/sc/s858.10"><num value="858.10">§858.10</num><heading>Debarment and Suspension of Contractors</heading><content>(a) Debarment and suspension apply to contracts.(b) Debarment shall be imposed for a period commensurate with the seriousness of the cause(s). Generally, debarment should not exceed three years, except for violations of 41 USC Chapter 81 Drug Free Workplace. If a suspension precedes a debarment, the suspension period shall be considered in determining the debarment period. The Agency may extend the debarment for an additional period, if the Agency determines that an extension is necessary to protect the Agency's interest. However, a debarment may not be extended solely upon the facts and circumstances upon which the initial debarment action was based. If debarment for an additional period is determined to be necessary, the same procedures to impose an initial debarment shall be followed to extend the debarment.(c) A suspension is in effect until an investigation, hearing, or trial is concluded and the Agency determines the contractor's future ability to contract or subcontract with the Agency.(d) The Agency may suspend a contractor's contract if the Agency suspects that grounds may exist for debarment.(e) For purposes of both debarment and suspension of a contract, the Agency may impute the conduct of an individual even though the underlying conduct may have occurred while the respondent was not associated with the contractor.</content><note type="source"><p>Source Note: The provisions of this §858.10 adopted to be effective June 17, 2015, 40 TexReg 3638; duplicated effective September 1, 2016, as published in the Texas Register September 2, 2016, 41 TexReg 6773; amended to be effective July 6, 2020, 45 TexReg 4532.</p></note></section><section identifier="/us/state/tx/tac/t40/p20/c858/sc/s858.11"><num value="858.11">§858.11</num><heading>Causes and Conditions of Debarment</heading><content>(a) The Agency may debar a contractor for reasons including the following:(1) Being adjudicated as guilty, pleading guilty, pleading nolo contendere, or receiving a deferred adjudication in a criminal court relating to:(A) Obtaining, attempting to obtain, or performing a public or private contract or subcontract;(B) Engaging in embezzlement, theft, forgery, bribery, falsification or destruction of records, fraud, receipt of stolen property, making false statements or claims, tax evasion, or any other offense indicating moral turpitude or a lack of business integrity or honesty;(C) Use or possession of controlled or illegal substances, or other drug-related offense;(D) Violating federal antitrust statutes arising from submitting bids or proposals;(E) Committing an offense involving physical or sexual abuse or neglect; or(F) Committing an offense involving the direct support or promotion of human trafficking;(2) Being debarred from contracting by any unit of the federal or state government;(3) Violating Agency contract provisions, including failing to perform according to the terms, conditions, and specifications, or within the time specified, in an Agency contract, including, but not limited to, the following:(A) Failing to abide by applicable federal and state statutes, rules, regulations, policies, and procedures, such as those regarding individuals with disabilities and those regarding civil rights;(B) Having a record of failure to perform or of unsatisfactory performance according to the terms of one or more contracts or subcontracts, if that failure or unsatisfactory performance has occurred within five years preceding the determination to debar. Failure to perform and unsatisfactory performance include, but are not limited to, the following:(i) Failing to correct contract performance deficiencies after receiving written notice about them from the Agency or its authorized agents;(ii) Failing to repay or make and complete arrangements satisfactory to the Agency to repay identified overpayments or other erroneous payments, or assessed liquidated damages or penalties;(iii) Failing to meet standards that are required for licensure or certification, or that are required by state or federal law, Agency rules, or Agency policy concerning contractors;(iv) Failing to execute contract amendments required by the Agency;(v) Billing for services or goods not provided to the customer;(vi) Submitting a false report or misrepresentation that, if used, may increase individual or statewide rates or fees;(vii) Charging customers fees contrary to Agency rules or policy;(viii) Failing to notify and reimburse the Agency or its agents for services that the Agency paid for when the contractor received reimbursement from a liable third party;(ix) Failing to disclose or make available, upon demand, to the Agency or its representatives (including appropriate federal and state agencies) records that the contractor is required to maintain;(x) Failing to provide and maintain services within standards required by statute, regulations, or contract; or(xi) Violating the Texas Human Resources, Government, or Labor Code provisions applicable to the contractor or any rule or regulation issued under the referenced Codes;(4) Submitting an offer, bid, proposal, or application that contains a false statement or misrepresentation or omits pertinent facts or documents that are material to the procurement;(5) Engaging in an abusive or neglectful practice that results in or could result in death or injury to the customer served by the contractor;(6) Knowingly and willfully using a debarred individual as an employee, independent contractor, or agent associated with any service provided in performance of a contract with the Agency;(7) Failure to pay a substantial debt or debts, including disallowed costs and overpayments, owed to any federal or state agency instrumentality, provided the debt is uncontested by the debtor or, if contested, provided that the debtor's legal and administrative remedies have been exhausted; or(8) Any other cause of a serious or compelling nature that affects a contractor's present or future ability to perform under the contract or that presents an imminent risk of harm to or liability for the Agency.(b) In accordance with terms specified by the Agency, an individual that has been debarred may not:(1) receive a contract;(2) be allowed to retain a contract that has been awarded before debarment;(3) participate as a vendor in Agency programs that do not require the individual to sign a contract or agreement;(4) provide goods or services to Agency customers either directly or indirectly while working for an Agency contractor; or(5) either directly or through an intermediary, bill to or receive payment from the Agency for any services or supplies provided by the debarred individual on or after the effective date of the debarment. The Agency will not pay for any services ordered, prescribed, or delivered by the debarred individual to Agency customers after the date of debarment. No costs associated with a debarred individual, including the salary, fringe benefits, overhead, payments to, or any other costs associated with an individual who was debarred may be included in an Agency cost report or any other document that will be used to determine an individual payment rate, a statewide payment rate, or a fee. Nothing in this provision shall be construed in a manner that would prevent a debarred individual, who is also a VR customer, from receiving VR services as a VR customer.(c) A single occurrence of a violation may result in debarment or suspension.</content><note type="source"><p>Source Note: The provisions of this §858.11 adopted to be effective June 17, 2015, 40 TexReg 3638; duplicated effective September 1, 2016, as published in the Texas Register September 2, 2016, 41 TexReg 6773; amended to be effective July 6, 2020, 45 TexReg 4532.</p></note></section><section identifier="/us/state/tx/tac/t40/p20/c858/sc/s858.12"><num value="858.12">§858.12</num><heading>Causes and Results of Suspension</heading><content>(a) The Agency may suspend a contract whenever grounds for debarment exist.(b) Suspension will result in one or more of the following:(1) The Agency may withhold payments, wholly or partly, to the contractor during the period of suspension.(2) The Agency may refuse to accept a bid, offer, application, or proposal from, or to award a contract to, the affected contractor during the period of suspension.(3) The Agency may remove existing customers referred from or cease referring customers to a suspended contractor and may transfer existing customers to other contractors.(c) If the Agency determines that the underlying reasons for suspension have been resolved in favor of the respondent, the Agency must, if applicable:(1) pay the withheld payments for services that were provided during the suspension and that met the terms of an existing contract; and(2) resume contract payments and customer referrals.(d) If the Agency determines that the underlying reasons for suspension are not resolved in favor of the respondent, the Agency shall institute debarment proceedings.(e) In accordance with terms specified by the Agency, an individual whose contract has been placed in suspension may not:(1) receive a contract;(2) submit an offer, bid, application, or proposal for a contract; or(3) provide goods or services to Agency customers either directly or indirectly while working for an Agency contractor.(f) A suspension may be applied against an individual, an entire legal entity, or a specified part of a legal entity.</content><note type="source"><p>Source Note: The provisions of this §858.12 adopted to be effective June 17, 2015, 40 TexReg 3638; duplicated effective September 1, 2016, as published in the Texas Register September 2, 2016, 41 TexReg 6773; amended to be effective July 6, 2020, 45 TexReg 4532.</p></note></section><section identifier="/us/state/tx/tac/t40/p20/c858/sc/s858.13"><num value="858.13">§858.13</num><heading>Evidence for Debarment</heading><content>In making a debarment decision, the Agency may consider the following factors:(1) The actual or potential harm or impact that results or may result from the wrongdoing.(2) The frequency of incidents and/or duration of the wrongdoing.(3) Whether there is a pattern or history of wrongdoing.(4) Whether an individual is or has been disqualified by an agency of the federal government or has not been allowed to participate in state or local contracts or assistance agreements based on conduct similar to one or more of the causes for debarment specified in this part.(5) Whether and to what extent the individual planned, initiated, or carried out the wrongdoing.(6) Whether the individual accepted responsibility for the wrongdoing and recognized the seriousness of the misconduct that led to the cause for debarment.(7) Whether the individual paid or agreed to pay all criminal, civil, and administrative liabilities for the improper activity, including any investigative or administrative costs incurred by the government, and has made or agreed to make full restitution.(8) Whether the individual cooperated fully with the government agencies during the investigation and with any court or administrative action. In determining the extent of cooperation, the Agency may consider when the cooperation began and whether the individual disclosed all pertinent information known to the individual.(9) Whether the wrongdoing was pervasive within the individual's organization.(10) The types of positions held by the individuals involved in the wrongdoing.(11) Whether the individual's organization took appropriate corrective action or remedial measures.(12) Whether the individual's principals tolerated the offense.(13) Whether the individual brought the activity cited as a basis for the debarment to the attention of the appropriate Agency representative in a timely manner.(14) Whether the individual fully investigated the circumstances surrounding the cause for debarment and, if so, made the result of the investigation available to the Agency.(15) Whether the individual had effective standards of conduct and internal control systems in place at the time the questioned conduct occurred.(16) Whether the individual took appropriate disciplinary action against the individuals responsible for the activity that constitutes the cause for debarment.(17) Whether the individual had adequate time to eliminate the circumstances within the individual's organization that led to the cause for the debarment.(18) Other factors related to the contractor's required performance under the contract that the Agency determines are appropriate to the circumstances of a particular case.</content><note type="source"><p>Source Note: The provisions of this §858.13 adopted to be effective June 17, 2015, 40 TexReg 3638; duplicated effective September 1, 2016, as published in the Texas Register September 2, 2016, 41 TexReg 6773; amended to be effective July 6, 2020, 45 TexReg 4532.</p></note></section><section identifier="/us/state/tx/tac/t40/p20/c858/sc/s858.14"><num value="858.14">§858.14</num><heading>Notice for Debarment or Suspension</heading><content>Written notices of suspension or debarment must include the following, as applicable:(1) the grounds for the action;(2) the length of the debarment;(3) the conditions that might cause a suspension to be released;(4) a statement explaining the effect of the suspension or debarment; and(5) a statement as to whether the suspension or debarment is in effect for all Agency contracts or just for a particular Agency contract.</content><note type="source"><p>Source Note: The provisions of this §858.14 adopted to be effective June 17, 2015, 40 TexReg 3638; duplicated effective September 1, 2016, as published in the Texas Register September 2, 2016, 41 TexReg 6773; amended to be effective July 6, 2020, 45 TexReg 4532.</p></note></section><section identifier="/us/state/tx/tac/t40/p20/c858/sc/s858.15"><num value="858.15">§858.15</num><heading>Appeals</heading><content>(a) A contractor may appeal an initial adverse action rendered by the Agency under §858.9 of this chapter by hand delivery, mail, common carrier, facsimile (fax) transmission, or other method approved by the Agency in writing. A contractor shall only submit an appeal by hand delivery, mail, or common carrier to the Agency as directed on the Contractor Notice of Appeal Rights (VR 1309). An appeal sent by unapproved methods or to a different address will not be considered by the Agency as a valid appeal.(b) The Agency's initial adverse action is final for all purposes unless the contractor files an appeal not later than 28 calendar days after the date on which the initial adverse action is mailed, sent by electronic mail, or sent by facsimile to the contractor. The timeliness of an appeal is subject to the rules and procedures set out in the Unemployment Insurance rules at 40 TAC Chapter 815, except to the extent that such sections are clearly inapplicable or contrary to provisions set out under these Chapter 858 rules or the contract between the parties.(c) To be considered, the appeal must include the following:(1) A statement of facts describing how an Agency decision, action, or inaction deviated from contract terms, published policy, or state or federal laws or regulations;(2) The contractor's claim, including pertinent contract sections;(3) A statement of the issue or issues in dispute;(4) A brief statement about why the Agency's initial adverse action is wrong;(5) Copies of evidence or documentation supporting the appeal; and(6) The action requested.(d) The contractor may supplement its appeal after being perfected but before the Agency rendering a decision on the merits.(e) As part of the appeal, the contractor may also request a meeting with the Agency. Whether a meeting will be granted is at the Agency's discretion. The meeting request should include a description of any special accommodations needed for the contractor, witnesses, or representatives. At the meeting, the contractor may:(1) be represented by an individual of the contractor's selection; and(2) present evidence and information to support the contractor's position.(f) The Agency will notify the contractor whether its appeal has been perfected and has met the requirements in subsection (c) of this section for consideration on its merits. If the appeal does not meet the requirements, the appeal will be denied, and the initial adverse action will be the Agency's final decision.(g) An Agency appeal decision becomes final 14 days after the date the appeal decision is mailed, unless the contractor files a written request for reconsideration before that date.</content><note type="source"><p>Source Note: The provisions of this §858.15 adopted to be effective June 17, 2015, 40 TexReg 3638; duplicated effective September 1, 2016, as published in the Texas Register September 2, 2016, 41 TexReg 6773; amended to be effective July 6, 2020, 45 TexReg 4532.</p></note></section><section identifier="/us/state/tx/tac/t40/p20/c858/sc/s858.16"><num value="858.16">§858.16</num><heading>Request for Reconsideration</heading><content>(a) The contractor may submit a request for reconsideration following the Agency's issuance of the appeal decision by hand delivery, mail, common carrier, facsimile (fax) transmission, or other method approved by the Agency in writing:(1) A request for reconsideration shall only be hand delivered, mailed, or sent by common carrier to the Agency as directed on the Contractor Notice of Rights (VR 1309). A request for reconsideration sent by unapproved methods or to a different address will not be considered a valid request for reconsideration by the Agency.(2) The timeliness of a request for reconsideration is subject to the rules and procedures set out in the Unemployment Insurance rules at Chapter 815 of this title, except to the extent that such sections are clearly inapplicable or contrary to provisions set out under these Chapter 858 rules or the contract between the parties.(b) A request for reconsideration shall not be granted unless each of the following three criteria are met:(1) there is an offering of new evidence, which was not presented as part of the original appeal pursuant to §858.15 of this chapter;(2) there is a compelling reason why the evidence was not presented earlier; and(3) there is a specific explanation of how consideration of the evidence would change the outcome of the decision.(c) The Agency's decision on the request for reconsideration is the final decision of the Agency.</content><note type="source"><p>Source Note: The provisions of this §858.16 adopted to be effective June 17, 2015, 40 TexReg 3638; duplicated effective September 1, 2016, as published in the Texas Register September 2, 2016, 41 TexReg 6773; amended to be effective July 6, 2020, 45 TexReg 453.</p></note></section></subchapter></chapter></part><part identifier="/us/state/tx/tac/t40/p21"><num value="21">PART 21</num><heading>TEXAS COUNCIL FOR DEVELOPMENTAL DISABILITIES</heading><chapter identifier="/us/state/tx/tac/t40/p21/c876"><num value="876">CHAPTER 876</num><heading>GENERAL PROVISIONS</heading><subchapter identifier="/us/state/tx/tac/t40/p21/c876/sc"><num value="">SUBCHAPTER </num><heading></heading><section identifier="/us/state/tx/tac/t40/p21/c876/sc/s876.1"><num value="876.1">§876.1</num><heading>Definitions</heading><content>The following words and terms, when used in these sections, shall have the following meanings, unless the context clearly indicates otherwise.(1) Council--Texas Council for Developmental Disabilities.(2) Designated State agency--The State agency designated by the governor to provide administrative support to the Council.(3) Developmental disability--The term "developmental disability" has the meaning as defined in federal law, the Developmental Disabilities Assistance and Bill of Rights Act as amended (42 USC 6000 et seq).(4) Executive director--Chief administrative officer of the Texas Council for Developmental Disabilities.(5) Grant--An award of financial assistance, including cooperative agreements, in the form of money, property provided in lieu of money, or other financial assistance paid or furnished by the Council to an eligible recipient to carry out a program in accordance with the rules, regulations and guidance provided by the Council.</content><note type="source"><p>Source Note: The provisions of this §876.1 adopted to be effective January 30, 1985, 10 TexReg 175; amended to be effective July 5, 1998, 23 TexReg 6723; transferred to be effective September 1, 1999, as published in the October 8, 1999 issue of the Texas Register, 24 TexReg 8761; amended to be effective December 14, 2003, 28 TexReg 10972.</p></note></section><section identifier="/us/state/tx/tac/t40/p21/c876/sc/s876.2"><num value="876.2">§876.2</num><heading>Legal Authority</heading><content>(a) These rules are adopted under provisions of the Texas Human Resources Code, Title 40, Chapter 112.(b) The following federal laws and regulations are adopted by reference into this part:(1) Developmental Disabilities Assistance and Bill of Rights Act as Amended (U.S.C. 6000 et. seq.); and(2) Developmental Disabilities Program, 45 Code of Federal Regulations, Parts 1385-1387.</content><note type="source"><p>Source Note: The provisions of this §876.2 adopted to be effective January 30, 1985, 10 TexReg 175; amended to be effective December 4, 1985, 10 TexReg 4479; amended to be effective July 5, 1998, 23 TexReg 6723; transferred to be effective September 1, 1999, as published in the October 8, 1999 issue of the Texas Register, 24 TexReg 8761; amended to be effective December 14, 2003, 28 TexReg 10972.</p></note></section><section identifier="/us/state/tx/tac/t40/p21/c876/sc/s876.3"><num value="876.3">§876.3</num><heading>Administration</heading><content>(a) The Texas Council for Developmental Disabilities is a joint state-federal program designed to assist people with developmental disabilities and their families to participate in the design of and access to needed community services and supports, and to promote the development of a consumer and family-centered, comprehensive system and a coordinated array of culturally competent services, supports, and other assistance designed to achieve independence, productivity, and integration and inclusion into the community for individuals with developmental disabilities.(b) The Council performs its responsibilities through staff activities, grants or contracts to public, or nonprofit, or private for-profit organizations and in other ways as determined by the Council to carry out the state plan.(c) The Council shall enter into a memorandum of understanding with the designated state agency which sets forth their respective roles.(d) The designated state agency carries out the functions set forth in applicable federal and state laws and regulations and the memorandum of understanding with the Council.</content><note type="source"><p>Source Note: The provisions of this §876.3 adopted to be effective January 30, 1985, 10 TexReg 175; amended to be effective December 4, 1985, 10 TexReg 4479; amended to be effective July 5, 1998, 23 TexReg 6723; transferred to be effective September 1, 1999, as published in the October 8, 1999 issue of the Texas Register, 24 TexReg 8761; amended to be effective December 14, 2003, 28 TexReg 10972; amended to be effective August 28, 2012, 37 TexReg 6686.</p></note></section><section identifier="/us/state/tx/tac/t40/p21/c876/sc/s876.4"><num value="876.4">§876.4</num><heading>Responsibilities of the Council</heading><content>The Council is an agency within the executive branch, but functions independently within its statutory authority to serve the long-term public interest. The Council is responsible for establishing the policy framework through which the agency carries out its statutory responsibilities. Specifically, the Council shall:(1) exercise the authority provided by law to adopt policies and rules governing Council activities;(2) develop and implement policies that clearly separate the policymaking authority of the Council and the management responsibilities of the executive director and staff of the Council;(3) approve the state plan and amendments;(4) serve as an advocate for state and federal legislation, appropriations and policies on behalf of individuals with developmental disabilities as authorized by federal law;(5) oversee operations of the Council for integrity, effectiveness, and efficiency;(6) approve personnel policies that provide for the selection, supervision, and evaluation of the executive director and staff;(7) ensure projects and activities comply with all applicable federal and state requirements; and(8) carry out other responsibilities as provided by Council policies.</content><note type="source"><p>Source Note: The provisions of this §876.4 adopted to be effective December 14, 2003, 28 TexReg 10972; amended to be effective August 28, 2012, 37 TexReg 6686.</p></note></section><section identifier="/us/state/tx/tac/t40/p21/c876/sc/s876.5"><num value="876.5">§876.5</num><heading>TCDD State Plan</heading><content>The Council develops and submits the "TCDD State Plan for Texans with Developmental Disabilities" in a manner consistent with federal law and regulations. The state plan may be revised and updated after public review and comment as provided by the federal requirements. The plan is available from the offices of the Texas Council for Developmental Disabilities.</content><note type="source"><p>Source Note: The provisions of this §876.5 adopted to be effective December 14, 2003, 28 TexReg 10972.</p></note></section><section identifier="/us/state/tx/tac/t40/p21/c876/sc/s876.6"><num value="876.6">§876.6</num><heading>Powers and Duties of the Executive Director</heading><content>The executive director is responsible for the effective and efficient administration of the affairs of the Council subject to applicable laws and this chapter and under the general direction of the Council. The director shall select, supervise and evaluate staff to implement Council approved activities consistent with policies approved by the Council. The director may delegate responsibilities to Council staff as appropriate.</content><note type="source"><p>Source Note: The provisions of this §876.6 adopted to be effective December 14, 2003, 28 TexReg 10972.</p></note></section><section identifier="/us/state/tx/tac/t40/p21/c876/sc/s876.7"><num value="876.7">§876.7</num><heading>Committees of the Council</heading><content>The Council may establish standing and special committees of Council members to expedite the work of the Council. Members shall be appointed to Committees in the manner provided by Council policies.</content><note type="source"><p>Source Note: The provisions of this §876.7 adopted to be effective December 14, 2003, 28 TexReg 10972.</p></note></section><section identifier="/us/state/tx/tac/t40/p21/c876/sc/s876.8"><num value="876.8">§876.8</num><heading>Standards of Conduct</heading><content>(a) Standards of conduct of members and employees of the council are governed by Texas Government Code Annotated, Chapter 572, and by Human Resources Code Chapter 112.0161.(b) Council members and staff shall adhere to the conflict of interest policy approved by the Council.</content><note type="source"><p>Source Note: The provisions of this §876.8 adopted to be effective December 14, 2003, 28 TexReg 10972.</p></note></section><section identifier="/us/state/tx/tac/t40/p21/c876/sc/s876.9"><num value="876.9">§876.9</num><heading>Charges for Access to Public Records</heading><content>(a) The charge to any person requesting copies of any public record of the Council will be the charge established by the Texas Government Code, Chapter 552 - Public Information Act(b) The Council may reduce or waive these charges at the discretion of the executive director if there is a public benefit.</content><note type="source"><p>Source Note: The provisions of this §876.9 adopted to be effective December 14, 2003, 28 TexReg 10972; amended to be effective April 13, 2022, 47 TexReg 1892.</p></note></section><section identifier="/us/state/tx/tac/t40/p21/c876/sc/s876.10"><num value="876.10">§876.10</num><heading>Petition for Rules or Changes to Rules</heading><content>Any interested person may petition the Council for a rule or rule change by submitting a request to the executive director in a manner and form as directed by the Council, consistent with state law.</content><note type="source"><p>Source Note: The provisions of this §876.10 adopted to be effective December 14, 2003, 28 TexReg 10972.</p></note></section><section identifier="/us/state/tx/tac/t40/p21/c876/sc/s876.11"><num value="876.11">§876.11</num><heading>Applicability of Open Meetings Act</heading><content>(a) The official minutes of all Council and committee meetings are kept in TCDD staff offices, are posted on the TCDD website, and are available for public review as authorized by the Open Meetings Act.(b) Opportunities to provide public comments are provided at each Council and committee meeting. The chair of the Council or committee may limit each person presenting public comments or public testimony on any agenda item to a certain number of minutes by announcing the period when comments or testimony are given.</content><note type="source"><p>Source Note: The provisions of this §876.11 adopted to be effective December 14, 2003, 28 TexReg 10972.</p></note></section><section identifier="/us/state/tx/tac/t40/p21/c876/sc/s876.12"><num value="876.12">§876.12</num><heading>Alternative Dispute Resolution</heading><content>The dispute resolution process provided for in Chapter 2260 of the Government Code shall be used by the State and any other party to attempt to resolve any claim for breach of contract made by any party against the State as applicable.</content><note type="source"><p>Source Note: The provisions of this §876.12 adopted to be effective December 14, 2003, 28 TexReg 10972.</p></note></section></subchapter></chapter><chapter identifier="/us/state/tx/tac/t40/p21/c877"><num value="877">CHAPTER 877</num><heading>GRANT AWARDS</heading><subchapter identifier="/us/state/tx/tac/t40/p21/c877/sc"><num value="">SUBCHAPTER </num><heading></heading><section identifier="/us/state/tx/tac/t40/p21/c877/sc/s877.1"><num value="877.1">§877.1</num><heading>General</heading><content>(a) As authorized by Texas Human Resources Code, Title 7, Chapter 112, §112.020(a)(3), the Council may contract or provide grants to public or private organizations to implement the TCDD State Plan for Texans with Developmental Disabilities, if funds are available.(b) The Council may solicit applications from state agencies, non-profit organizations, or private for profit organizations that have organizational expertise related to the requirements of the solicitation.(c) The Council may accept unsolicited ideas for future projects consistent with Council policies and procedures.(d) The Council may develop projects with organizations without competitive applications as allowed by state and federal requirements and Council policies.(e) All grantees shall comply with applicable state and federal requirements including the Texas Uniform Grant Management Standards. Office of Management and Budget (OMB) circulars, and Council grants procedures.(f) Independent audits of grantees are required for each year of funding in accordance with the requirements of OMB Circulars and Texas Uniform Grant Management Standards. Project specific independent reviews and other procedures may be required of grantees not subject to annual independent audit requirements of OMB or UGMS consistent with Council policies. The Council shall reimburse the grantees for the reasonable cost of the required audit activities.(g) Grant awards shall contain appropriate provisions for program and fiscal monitoring and for collection and submission of evaluation data and related reports.(h) The Council may limit by policy the amount of Council funds allowed to reimburse indirect costs of projects. Any indirect costs of a grantee above those amounts may be allowed as part of the required non-federal participant share.(i) The Council may by policy reduce reimbursements to grantees when required reports or final expenditure reports are not submitted within at least 60 days following the established due date.(j) Donated time and services may be included as a financial match contribution unless otherwise restricted by a specific request for applications or by state or federal requirements.(k) No organization shall receive more than three (3) direct grants from the Council at one time.</content><note type="source"><p>Source Note: The provisions of this §877.1 adopted to be effective December 14, 2003, 28 TexReg 10972; amended to be effective March 20, 2008, 33 TexReg 2321; amended to be effective August 28, 2012, 37 TexReg 6686; amended to be effective June 14, 2016, 41 TexReg 4292; amended to be effective April 13, 2022, 47 TexReg 1892; amended to be effective December 21, 2025, 50 TexReg 8340.</p></note></section><section identifier="/us/state/tx/tac/t40/p21/c877/sc/s877.2"><num value="877.2">§877.2</num><heading>Application and Review Process</heading><content>(a) All requests for applications will be published in the Texas Register and posted on the Council's website, and a notice will be provided to interested parties.(b) Application instructions for each request for application shall be available upon request from Council offices and will be made available at the Council's website.(c) Applications received after the closing date will not be considered unless an exception is approved in a manner consistent with Council policies.(d) Projects seeking continuation funding may have separate application forms, instructions, and procedures, as determined by Council staff.(e) Grants shall be awarded based on guidelines that reflect state and federal mandates. Selection criteria shall be designed to select applications that provide best overall value to the state and to the Council and meet the requirements and intent of the Council as provided in the request for applications.(f) Final approval of organizations to receive grant funding shall be determined by the Council consistent with Council policies.(g) Council staff may negotiate with selected applicants to determine the final terms of the award.</content><note type="source"><p>Source Note: The provisions of this §877.2 adopted to be effective December 14, 2003, 28 TexReg 10972; amended to be effective April 13, 2022, 47 TexReg 1892; amended to be effective December 21, 2025, 50 TexReg 8340.</p></note></section><section identifier="/us/state/tx/tac/t40/p21/c877/sc/s877.3"><num value="877.3">§877.3</num><heading>Payment Withhold, Suspension or Termination of Funding</heading><content>(a) If a grantee fails to comply with the terms of the grant, the Council may withhold payment, suspend authority to obligate or receive grant funding pending the result of corrective measures.(b) The Council, in its complete discretion, may terminate authority to obligate or receive grant funding prior to the end of the funding period if corrective actions are not taken during the suspension period, or if the deficiency is serious enough to warrant immediate termination.(c) A grant, or portion thereof, may also be terminated at the grantee's request by approval of the Council executive director.(d) The procedure to request reconsideration of a suspension or termination of funding shall be included in grant award materials.</content><note type="source"><p>Source Note: The provisions of this §877.3 adopted to be effective December 14, 2003, 28 TexReg 10972; amended to be effective March 20, 2008, 33 TexReg 2321; amended to be effective June 14, 2016, 41 TexReg 4292.</p></note></section><section identifier="/us/state/tx/tac/t40/p21/c877/sc/s877.4"><num value="877.4">§877.4</num><heading>Appeal of Funding Decisions</heading><content>Appeals may be submitted from applicants for grants who did not receive funding, or from grantees whose grants have not been awarded continuation funding. The appeals process adopted by the Council shall be included in the agency grants manual.</content><note type="source"><p>Source Note: The provisions of this §877.4 adopted to be effective December 14, 2003, 28 TexReg 10972; amended to be effective March 20, 2008, 33 TexReg 2321; amended to be effective April 13, 2022, 47 TexReg 1892.</p></note></section><section identifier="/us/state/tx/tac/t40/p21/c877/sc/s877.5"><num value="877.5">§877.5</num><heading>Confidentiality of Records</heading><content>A grantee that provides direct services to individuals under a Council grant must have a system to protect client records from inappropriate disclosure. Disclosure of confidential information must be in accordance with applicable law.</content><note type="source"><p>Source Note: The provisions of this §877.5 adopted to be effective December 14, 2003, 28 TexReg 10972.</p></note></section></subchapter></chapter></part><part identifier="/us/state/tx/tac/t40/p22"><num value="22">PART 22</num><heading>TEXAS WORKFORCE INVESTMENT COUNCIL</heading><chapter identifier="/us/state/tx/tac/t40/p22/c901"><num value="901">CHAPTER 901</num><heading>DESIGNATION AND REDESIGNATION OF LOCAL WORKFORCE DEVELOPMENT AREAS</heading><subchapter identifier="/us/state/tx/tac/t40/p22/c901/sc"><num value="">SUBCHAPTER </num><heading></heading><section identifier="/us/state/tx/tac/t40/p22/c901/sc/s901.1"><num value="901.1">§901.1</num><heading>Procedures for Considering Redesignation of Workforce Development Areas</heading><content>(a) Definitions. "Chief Elected Officials" means the officials designated by state law as the Chief Elected Officials for the purposes of establishing agreements to form local workforce development boards.(b) Initiation of Redesignation. The Texas Workforce Investment Council may submit a written proposal or a local area or proposed local area may submit a written request to initiate the process to consider redesignation of workforce areas.(c) Requirements for a request by a local area or proposed local area.(1) Written Request. A request for redesignation of workforce development areas must be signed by the Chief Elected Officials (CEO) of the proposed new area to be designated. These must be the same officials who would be able to create a local workforce development board if the request is granted. The request must designate one of the officials as the lead CEO.(2) Acknowledgment and Summary Action. The director will notify the lead CEO and the Governor of receipt of the request and any deficiencies in the written request. The lead CEO has 30 days to correct any deficiencies.(3) Contents of Written Request.(A) The written request must show that each proposed area complies with state requirements for a local workforce development area and include information on the following factors:(i) geographic areas served by local educational agencies and intermediate educational agencies;(ii) geographic areas served by postsecondary educational institutions and area vocational education schools;(iii) the extent to which such local areas are consistent with labor market areas;(iv) the distance that individuals will need to travel to receive services provided in such local areas;(v) the resources of such local areas that are available to effectively administer the activities carried out under Texas and federal law;(vi) the total population of the proposed area;(vii) any prior designation of the area as a Job Training Partnership Act Service Delivery Area or Substate Area or service as a rural concentrated employment program; and(viii) other information required by the Council to make a determination.(B) If one or more of the proposed areas is identified in the request as a local labor market area, the request must also contain sufficient evidence that each such area is an economically integrated geographic area within which people may reside and find employment within a reasonable distance.(4) Further Division of Areas. If one or more of the existing areas would be further divided, the request must also contain the following:(A) a description of how services of all programs under the local board's purview will be coordinated with other local boards and workforce development areas within the region;(B) if applicable, documentation that justifies the designation of an area that has less than 200,000 population; and(C) an analysis of costs associated with dividing the region, with particular emphasis on administrative costs.(d) Splitting Designated Areas. If a proposal or request is made to split a designated area into two or more areas, the director shall notify all current workforce development board members of the affected areas.(e) Notification of Proposal or Request. When a proposal is made by the Governor or the Council to redesignate workforce development areas or when a complete request to redesignate such areas is received from a local area or proposed local area, notice of the proposal or request shall be published in the Texas Register with a statement inviting input, specifying the deadline for submitting written input, and setting an open meeting at which oral comments will be accepted.(f) Consideration of Proposal or Request. The Council may consider a proposal or request or may designate a committee to do so and make a report to the Council. In considering a proposal or request, all relevant information may be reviewed in addition to the information submitted with the proposal or request and the information obtained during the public comment process.(g) Recommendation. After considering a proposal or request, the Council shall make a recommendation to the Governor.</content><note type="source"><p>Source Note: The provisions of this §901.1 adopted to be effective February 14, 2000, 25 TexReg 1139; amended to be effective January 6, 2005, 29 TexReg 12238.</p></note></section><section identifier="/us/state/tx/tac/t40/p22/c901/sc/s901.2"><num value="901.2">§901.2</num><heading>Appeal of Decision on Designation or Redesignation</heading><content>(a) Time Limit for Appeal. An appeal of a designation or redesignation of a workforce area must be delivered to the Council no later than 30 days after the date the designation or redesignation was made. (b) Contents of Appeal. An appeal shall be in writing and shall include the specific reasons for appealing the designation or redesignation. The request shall also include any new information the requestor seeks to have considered in the appeal process. (c) Notice of Appeal. When an appeal is received, notice of the appeal shall be published in the Texas Register with a statement inviting input, specifying the deadline for submitting written input. The council, at its discretion, may also schedule a public meeting at which oral comments on the appeal will be accepted. (d) Consideration of Proposal or Request. The Council may consider an appeal or may designate a committee to do so and make a report to the Council. In considering an appeal, all relevant information may be reviewed in addition to the information submitted with the appeal and the information obtained during the public comment process. (e) Recommendation. After considering an appeal, the Council shall make a recommendation to the Governor within 120 days of the date of receipt of the appeal request.</content><note type="source"><p>Source Note: The provisions of this §901.2 adopted to be effective February 14, 2000, 25 TexReg 1139.</p></note></section></subchapter></chapter></part>