Current through Reg. 49, No. 38; September 20, 2024
(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 §
RSA
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 §
RSA
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 §
RSA
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 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 §
RSA
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 §
RSA
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 §
RSA
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 §
RSA
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 §
RSA
2105.203 and §
RSA
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 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.
(3) Notification of Reduction of Block Grant
funds for a Geographical Area. If required by Tex. Gov't Code §
RSA
2105.251 and §
RSA
2105.252, the Department will send a
Subrecipient a written statement specifying the reason for the reduction of
funds no later than the 30th day before the date on which block grant funds are
to be reduced.
(4) Exceptions. As
authorized by Tex. Gov't Code §
RSA
2105.201(b), the
notification and hearing requirements for reduction or nonrenewal of funding
provided for in paragraphs (2) and (3) of this subsection do not apply if a
Subrecipient's block grant funding becomes subject to the Department's
competitive bidding rules. The Department will require such competitive bidding
for awarding block grant funding subject to Tex. Gov't Code Ch. 2105 for
Subrecipients and in the Department's procuring of Subrecipients or contractors
to administer or assist in administering such block grant funds, which includes
the competitive release of Notices of Funding Availability and competitive
Requests for Subrecipients or Providers. The criteria for evaluation of
competitive responses shall be set forth in the applicable notices of funds
availability, requests, or other procurement invitation document.
(5) Nothing in this section supersedes or is
intended to conflict with the rights and responsibilities outlined in §
RSA
2.203 of this title (relating to Termination
and Reduction of Funding for CSBG Eligible Entities).
