| (a) Purpose. The purpose of this section is to inform
compliance with Tex. Gov't Code Ch. 2105, Administration of Block
Grants.
(b) Applicability. This rule applies to all funds administered
by the Department that are subject to Tex. Gov't Code Ch. 2105. The
activities administered by the Department that are currently subject
to Tex. Gov't Code Chapter 2105 are those funded by the Community
Services Block Grant (CSBG) funds that are required to be distributed
to Eligible Entities, the Low Income Home Energy Assistance Program
(LIHEAP) funds that are distributed to Subrecipients, and the funds
that the Department administers and distributes to Subrecipients from
the annual allocation from the Community Development Block Grant (CDBG)
Program. If additional block grant funds that would be subject to
Tex. Gov't Code Ch. 2105 by its terms are assigned to the Department,
they too would be subject to this rule. Capitalized terms used in
this section are defined in the applicable Rules or chapters of this
title or as assigned by federal or state law.
(c) Hearings required to be held by Subrecipients.
Consistent with Tex. Gov't Code §2105.058, Subrecipients that
receive more than $5,000 from one or more of the programs noted in
subsection (b) of this section must annually submit evidence to the
Department that a public meeting or hearing was held solely to seek
public comment on the needs or uses of block grant funds received
by the Subrecipient. This meeting or hearing may be held in conjunction
with another meeting or hearing if the meeting or hearing is clearly
noted as being for the consideration of the applicable block grant
funds under this subsection.
(d) Complaints. The Department will notify a Subrecipient
of any complaint received concerning the Subrecipient services. As
authorized by Tex. Gov't Code §2105.104, the Department shall
consider the history of complaints, for the preceding three year period,
regarding a Subrecipient in determining whether to award, increase,
or renew a Contract with a Subrecipient. The Department will not consider
complaints in determining whether to award, increase, or renew a Contract
with a Subrecipient that the Department has determined in accordance
with 10 TAC §1.2 (relating to Department Complaint System to
the Department) it has no authority to resolve, or that are not corroborated.
(e) Requests for Reconsideration. Subrecipient must
establish written procedures for the handling of denials of service
when the denial involves a household inquiring or applying for services/assistance.
This procedure must include, at a minimum:
(1) A written denial of assistance notice being provided
to the affected person within 10 calendar days of the determination.
Such a determination is defined as a denial of assistance, but does
not include a level of assistance lower than the possible program
limits or a reduction in assistance, as long as such process is in
accordance with the written policy. This notification shall include
written notice of the right of a hearing or secondary review of income
documentation, as applicable, the timeframe the affected person has
to respond to the decision, and specific reasons for the denial of
assistance. The Subrecipient may adopt a policy limiting the time
period during which a request for a hearing will be accepted and the
format for the request, but the Subrecipient must provide the affected
person with at least 10 calendar days to request a hearing or secondary
review.
(2) If requested by the affected person, Subrecipient
shall hold a private, recorded hearing (unless otherwise required
by law) either virtually, by phone, or in person in an accessible
location within 15 calendar days after the Subrecipient received the
hearing request from the affected person and must provide the affected
person notice in writing of the time/location of the hearing at least
seven calendar days before the hearing.
(3) The hearing shall allow time for a statement by
the Subrecipient's staff with knowledge of the case.
(4) The hearing shall allow the affected person at
least equal time, if requested, to present relevant information contesting
the decision.
(5) If a denial is based solely on income eligibility,
the provisions described in paragraphs (2) - (4) of this subsection
do not apply, however the affected person may request a secondary
review of income eligibility based on initial documentation provided
at the time of the original request for assistance. Such a secondary
review must include an analysis of the initial calculation based on
the documentation received with the initial request for services and
will be performed by an individual other than the person who performed
the initial determination. If the secondary review upholds the denial
based on income eligibility documents provided at the initial request,
the affected person must be notified in writing.
(6) If the affected person is not satisfied with the
Subrecipient's determination at a hearing or as concluded based on
a secondary income eligibility review, the affected person may request
a subsequent review of the decision by the Department if the affected
person requests a further review in writing within 10 calendar days
of notification of an adverse decision. If applicable, Subrecipient's
should hold funds aside in the amount needed to provide the services
requested by the affected person until the Department completes its
decision.
(7) Affected persons, after having followed the steps
in paragraphs (1) through (6) of this subsection, who allege that
the Subrecipient has denied all or part of a service or benefit in
a manner that is unjust, violates discrimination laws, or without
reasonable basis in law or fact, may request a contested hearing under
Tex. Gov't Code, Chapter 2001.
(8) The hearing under subsection (e)(7) of this section
shall be conducted by the State Office of Administrative Hearings
on behalf of the Department in the locality served by the Subrecipient,
for which the procedures are further described in §1.13 of this
title (relating to Contested Case Hearing Procedures).
(f) Nonrenewal or Reduction of Block Grant Funds to
a Specific Subrecipient.
(1) As required by Tex. Gov't Code §2105.202(a),
this section defines "good cause" for nonrenewal of a Subrecipient
contract or a reduction of funding. Good cause may include any one
or more of the following:
(A) Consistent and repeated corroborated complaints
about a Subrecipient's failure to follow substantive program requirements,
as provided for in subsection (d) of this section;
(B) Lack of compliance with 10 TAC §1.403 (relating
to Single Audit Requirements);
(C) Statute, rule, or contract violations that have
not been timely corrected and have prompted the Department to initiate
proceedings under 10 TAC Chapter 2, (relating to Enforcement), and
have resulted in a final order confirming such violation(s);
(D) Disallowed costs in excess of $10,000 that have
not been timely repaid;
(E) Failure by Subrecipient to select an option as
provided for in §1.410 of this title (relating to Determination
of Alien Status for Program Beneficiaries) by the deadline;
(F) The ineffective rendition of services to clients,
which may include a Subrecipient's failure to perform on a Contract,
and which may include materially failing to expend funds;
(G) A failure to address an identified material lack
of cost efficiency of programs;
(H) A material failure of the services of the Subrecipient
to meet the needs of groups or classes of individuals who are poor
or underprivileged or have a disability;
(I) Providing services that are adequately addressed
by other programs in that area;
(J) The extent to which clients and program recipients
are involved in the Subrecipient's decision making;
(K) Providing services in a manner that unlawfully
discriminates on the basis of protected class status; or
(L) Providing services outside of the designated geographic
scope of the Subrecipient.
(2) Notification of Reduction, Termination, or Nonrenewal
of a Contract and Opportunity for a Hearing. As required by Tex. Gov't
Code §2105.203 and §2105.301, the Department will send a
Subrecipient a written statement specifying the reason for the reduction,
termination, or nonrenewal of funds no later than the 30th calendar
day before the date on which block grant funds are to be reduced,
terminated, or not renewed, unless excepted for by paragraph (4) of
this subsection. After receipt of such notice for reduction or nonrenewal,
a Subrecipient may request an administrative hearing under Tex. Gov't
Code Ch. 2001 if the Subrecipient is alleging that the reduction is
not based on good cause as identified in subsection (f)(1) of this
section or is without reasonable basis in fact or law. If a Subrecipient
requests a hearing, the Department may, at its election, enter into
an interim contract with either the Subrecipient or another provider
for the services formerly provided by the provider while administrative
or judicial proceedings are pending.
Cont'd... |
