CHAPTER 2105. ADMINISTRATION OF BLOCK GRANTS

GOVERNMENT CODE

TITLE 10. GENERAL GOVERNMENT

SUBTITLE C. STATE ACCOUNTING, FISCAL MANAGEMENT, AND PRODUCTIVITY

CHAPTER 2105. ADMINISTRATION OF BLOCK GRANTS

SUBCHAPTER A. GENERAL PROVISIONS

Sec. 2105.001. DEFINITIONS. In this chapter:

(1) "Agency" means:

(A) the Texas Department of Human Services;

(B) the Texas Department of Health;

(C) the Texas Department of Housing and Community Affairs;

(D) the Texas Education Agency;

(E) the Texas Department of Mental Health and Mental

Retardation;

(F) the Texas Department on Aging; or

(G) any other commission, board, department, or state agency

designated to receive block grant funds.

(2) "Block grant" means a program resulting from the

consolidation or transfer of separate federal grant programs,

including federal categorical programs, so that the state

determines the amounts to be allocated or the method of

allocating the amounts to various agencies or programs from the

combined amounts, including a program consolidated or transferred

under the Omnibus Budget Reconciliation Act of 1981 (Pub. L. No.

97-35).

(3) "Program" means an activity designed to deliver services or

benefits provided by state or federal law.

(4) "Provider" means a public or private organization that

receives block grant funds or may be eligible to receive block

grant funds to provide services or benefits to the public,

including:

(A) a local government unit;

(B) a council of government;

(C) a community action agency; or

(D) a private new community developer or nonprofit community

association in a community originally established as a new

community development program under the Urban Growth and New

Community Development Act of 1970 (42 U.S.C. Section 4511 et

seq.).

(5) "Recipient" means an individual or a class of individuals

who receives services or benefits available through block grants.

Added by Acts 1993, 73rd Leg., ch. 268, Sec. 1, eff. Sept. 1,

1993. Amended by Acts 1995, 74th Leg., ch. 173, Sec. 1, eff. Aug.

28, 1995; Acts 1997, 75th Leg., ch. 165, Sec. 6.29, eff. Sept. 1,

1997.

Sec. 2105.002. COMBINATION OF PROGRAMS NOT INTENDED TO REDUCE

SERVICES. The process of combining categorical federal

assistance programs into block grants should not have an overall

effect of reducing the relative proportion of services and

benefits made available to low-income individuals, elderly

individuals, disabled individuals, and migrant and seasonal

agricultural workers.

Added by Acts 1993, 73rd Leg., ch. 268, Sec. 1, eff. Sept. 1,

1993.

Sec. 2105.003. CHANGE IN FEDERAL LAW OR REGULATION. If a change

in a federal law or regulation does not provide for temporary

waivers to allow compliance with state law and because of the

change an agency or provider does not have sufficient time to

comply with a procedure required by this chapter, the agency or

provider may act in compliance with federal law and shall comply

with procedures required by this chapter as soon as possible.

Added by Acts 1993, 73rd Leg., ch. 268, Sec. 1, eff. Sept. 1,

1993.

Sec. 2105.004. DISCRIMINATION PROHIBITED. An agency or provider

may not use block grant funds in a manner that discriminates on

the basis of race, color, national origin, sex, or religion.

Added by Acts 1993, 73rd Leg., ch. 268, Sec. 1, eff. Sept. 1,

1993.

Sec. 2105.005. PRIORITY TO POVERTY PROGRAMS. (a) An agency

should give priority to programs that remedy the causes and cycle

of poverty if:

(1) the alleviation of poverty is a purpose of the block grant;

and

(2) the agency has discretion over the types of programs that

may be funded with the block grant.

(b) In administering a block grant, an agency shall consult:

(1) low-income recipients;

(2) low-income intended recipients; and

(3) organizations representing low-income individuals.

(c) To the extent consistent with the purpose of the block

grant, an agency by rule shall ensure that providers use block

grant funds to the maximum benefit of low-income recipients and

intended recipients.

Added by Acts 1993, 73rd Leg., ch. 268, Sec. 1, eff. Sept. 1,

1993.

Sec. 2105.006. AGENCY AUDITS. (a) An agency's expenditure of

block grant funds is subject to audit by the state auditor in

accordance with Chapter 321.

(b) The state auditor immediately shall transmit a copy of an

audit of an agency to the governor. Not later than the 30th day

after the date on which an audit of an agency is completed, the

governor shall transmit a copy of the audit to the appropriate

federal authority.

Added by Acts 1993, 73rd Leg., ch. 268, Sec. 1, eff. Sept. 1,

1993.

Sec. 2105.007. PROVIDER AUDITS. A provider that receives block

grant funds from an agency shall provide the agency with evidence

that an annual audit of the provider has been performed.

Added by Acts 1993, 73rd Leg., ch. 268, Sec. 1, eff. Sept. 1,

1993.

Sec. 2105.008. UNIFORM MANAGEMENT. Chapter 783 applies to

agencies and providers for the purpose of block grant

administration.

Added by Acts 1993, 73rd Leg., ch. 268, Sec. 1, eff. Sept. 1,

1993.

Sec. 2105.009. PRIMARY CARE BLOCK GRANT. (a) The Texas

Department of Health shall administer the primary care block

grant if the department satisfies federal requirements relating

to the designation of an agency to administer the grant.

(b) In administering the primary care block grant, the

department may:

(1) receive the primary care block grant funds on behalf of the

state;

(2) spend primary care block grant funds and state funds

specifically appropriated by the legislature to match funds

received under a primary care block grant;

(3) make grants to, advance funds to, contract with, and take

other actions through community health centers that meet the

requirements of 42 U.S.C. Section 254c(e)(3) to provide for the

delivery of primary and supplemental health services to medically

underserved populations of the state;

(4) adopt necessary rules; and

(5) perform other activities necessary to administer the primary

care block grant.

(c) In this section:

(1) "Community health center" has the meaning assigned by 42

U.S.C. Section 254c(a).

(2) "Medically underserved population," "primary health

services," and "supplemental health services" have the meanings

assigned by 42 U.S.C. Section 254c(b).

Added by Acts 1993, 73rd Leg., ch. 268, Sec. 1, eff. Sept. 1,

1993.

SUBCHAPTER B. DEVELOPMENT OF PLAN; PUBLIC INFORMATION

Sec. 2105.051. DEFINITION. In this subchapter, "plan" means a

report submitted to the federal government that contains a

statement of activities and programs to show the intended and

actual use of block grant funds.

Added by Acts 1993, 73rd Leg., ch. 268, Sec. 1, eff. Sept. 1,

1993.

Sec. 2105.052. CONTENTS OF PLAN. A plan must describe:

(1) major changes in policy for each program;

(2) the extent of anticipated reductions or increases in

services under the block grant; and

(3) the nature of any fees a recipient must pay to receive

services funded under the block grant.

Added by Acts 1993, 73rd Leg., ch. 268, Sec. 1, eff. Sept. 1,

1993.

Sec. 2105.053. PUBLIC HEARINGS ON INTENDED USE OF FUNDS. (a)

In developing a request for appropriations before each regular

legislative session, an agency shall hold public hearings in four

locations in different areas of the state to solicit public

comment on the intended use of block grant funds.

(b) An agency must conduct at least two of the hearings required

by this section after normal agency working hours.

(c) An agency may hold a hearing required by this section in

conjunction with:

(1) another agency without regard to whether the block grants

administered by the agencies are for different purposes; or

(2) the governor's office.

Added by Acts 1993, 73rd Leg., ch. 268, Sec. 1, eff. Sept. 1,

1993.

Sec. 2105.054. NOTICE OF HEARING. (a) An agency shall:

(1) provide notice of a public hearing regarding the plan for a

block grant not later than the 15th day before the date of the

hearing;

(2) post the notice in a conspicuous place in each agency

office;

(3) include in the notice a clear and concise description of the

matters to be considered and a statement of the manner in which

written comments may be submitted;

(4) maintain lists of interested persons;

(5) mail notices of hearings to interested persons; and

(6) conduct other activities necessary to promote public

participation in the public hearing.

(b) A notice prepared under this section must be printed in

English and Spanish.

Added by Acts 1993, 73rd Leg., ch. 268, Sec. 1, eff. Sept. 1,

1993.

Sec. 2105.055. PUBLIC COMMENTS. (a) An agency shall summarize,

in a fair manner, the types of public comments received by the

agency during public hearings regarding a plan.

(b) If an agency's final decision does not reflect the

recommendations of particular classes of public comments, the

agency shall provide a reasoned response justifying the agency's

decision as to each comment.

(c) An agency shall distribute the summary of public comments

and the responses to the comments as part of the plan and shall:

(1) have the summary and response published in the Texas

Register; and

(2) make the summary and response available to the public.

Added by Acts 1993, 73rd Leg., ch. 268, Sec. 1, eff. Sept. 1,

1993.

Sec. 2105.056. PUBLIC INFORMATION. (a) An agency shall publish

information for the public:

(1) describing the manner in which the agency's staff develops

preliminary options for the use of block grants; and

(2) stating the period in which the preliminary work is usually

performed.

(b) An agency shall undertake public information activities

necessary to ensure that recipients and intended recipients are

informed of the availability of services and benefits.

(c) Information published under this section must be printed in

English and Spanish.

Added by Acts 1993, 73rd Leg., ch. 268, Sec. 1, eff. Sept. 1,

1993.

Sec. 2105.057. CONSULTATION ACTIVITIES. (a) An agency shall

consult interested members of the public to assist the agency in

developing preliminary staff recommendations on the use of block

grant funds.

(b) During preparation or amendment of a plan, an agency shall

consult:

(1) affected groups, including local governments, charitable

organizations, and businesses that provide or fund services

similar to the services that may be provided by the agency under

the block grant; and

(2) any state advisory or coordinating council that has

responsibility over programs similar to the programs that may be

provided under the block grant.

(c) An agency that is authorized to approve the allocation of

more than $10 million in block grant funds in a year by a

discretionary manner other than an objective formula required by

federal law shall provide that the consultation required by

Subsections (a) and (b)(1) must occur in each of the agency's

regions.

Added by Acts 1993, 73rd Leg., ch. 268, Sec. 1, eff. Sept. 1,

1993.

Sec. 2105.058. PUBLIC HEARING BY CERTAIN PROVIDERS. (a) This

section applies to a provider that receives more than $5,000 in

block grant funds to be used as the provider determines

appropriate.

(b) Annually, a provider shall submit evidence to the agency

that a public meeting or hearing was held in a timely manner

solely to seek public comment on the needs or uses of block grant

funds received by the provider.

(c) A provider may hold a meeting or hearing under Subsection

(b) in conjunction with another meeting or hearing of the

provider if the meeting or hearing to consider block grant funds

is clearly noted in an announcement of the other meeting or

hearing.

(d) An agency by rule may require a provider to undertake other

reasonable efforts to seek public participation.

Added by Acts 1993, 73rd Leg., ch. 268, Sec. 1, eff. Sept. 1,

1993.

Sec. 2105.059. AVAILABILITY OF RULES AND ELIGIBILITY

REQUIREMENTS. An agency shall maintain for public inspection in

each office:

(1) the rules and eligibility requirements relating to the

administration of block grant funds; and

(2) a digest or index to rules and decisions.

Added by Acts 1993, 73rd Leg., ch. 268, Sec. 1, eff. Sept. 1,

1993.

SUBCHAPTER C. COMPLAINTS

Sec. 2105.101. PUBLICATION OF PROCEDURES. An agency shall

distribute publications that describe:

(1) the block grant programs administered by the agency; and

(2) how to make public comments and complaints about the quality

of services funded by the block grant.

Added by Acts 1993, 73rd Leg., ch. 268, Sec. 1, eff. Sept. 1,

1993.

Sec. 2105.102. INVESTIGATION. (a) An agency shall have a

procedure for investigating complaints about the programs funded

by a block grant.

(b) Before the 31st day after the date on which the complaint is

received, the agency shall:

(1) complete the investigation; or

(2) notify the complainant when the investigation can be

completed, if the investigation cannot be completed within the

period provided by this subsection.

Added by Acts 1993, 73rd Leg., ch. 268, Sec. 1, eff. Sept. 1,

1993.

Sec. 2105.103. NOTICE TO PROVIDER; RESPONSE. (a) An agency

shall inform a provider of any complaint received concerning the

provider's services.

(b) An agency shall give a provider a reasonable time to respond

to a complaint.

Added by Acts 1993, 73rd Leg., ch. 268, Sec. 1, eff. Sept. 1,

1993.

Sec. 2105.104. USE OF COMPLAINTS; ANNUAL SUMMARY. (a) An

agency shall use the complaint system to monitor and ensure

compliance with applicable federal and state law.

(b) An agency shall consider the history of complaints regarding

a provider in determining whether to renew a contract or subgrant

for the use of block grant funds by the provider.

(c) An agency shall summarize annually the types of complaints

received by the agency.

Added by Acts 1993, 73rd Leg., ch. 268, Sec. 1, eff. Sept. 1,

1993.

SUBCHAPTER D. DENIAL OF SERVICES OR BENEFITS

Sec. 2105.151. RIGHT TO REQUEST HEARING ON DENIAL OF SERVICES OR

BENEFITS. Except as provided by Section 2001.223(1), an affected

person who alleges that a provider or an agency has denied all or

part of a service or benefit funded by block grant funds in a

manner that is unjust, discriminatory, or without reasonable

basis in law or fact may request an administrative hearing under

Chapter 2001.

Added by Acts 1993, 73rd Leg., ch. 268, Sec. 1, eff. Sept. 1,

1993.

Sec. 2105.152. DEPARTMENT OF HUMAN SERVICES PROCEDURES FOR FAIR

HEARING. The Texas Department of Human Services shall use

procedures for conducting a fair hearing under this subchapter.

Added by Acts 1993, 73rd Leg., ch. 268, Sec. 1, eff. Sept. 1,

1993.

Sec. 2105.153. HEARING ON DENIAL OF SERVICES OR BENEFITS BY

AGENCY. (a) An agency administering block grant funds shall

conduct a timely hearing on the denial of a service or benefit by

the agency.

(b) On determining that services were wrongfully denied, an

agency shall take appropriate action to correct the practices or

procedures of the agency.

Added by Acts 1993, 73rd Leg., ch. 268, Sec. 1, eff. Sept. 1,

1993.

Sec. 2105.154. HEARING ON DENIAL OF SERVICES OR BENEFITS BY

PROVIDER. (a) The agency that provides block grant funds to a

provider shall conduct a timely hearing on the denial of a

service or benefit by the provider.

(b) A hearing under this section must be held in the locality

served by the provider.

(c) On determining that services were wrongfully denied, an

agency shall take appropriate action to correct the practices or

procedures of the provider.

Added by Acts 1993, 73rd Leg., ch. 268, Sec. 1, eff. Sept. 1,

1993.

SUBCHAPTER E. NONRENEWAL OR REDUCTION OF BLOCK GRANT FUNDS OF

SPECIFIC PROVIDER

Sec. 2105.201. APPLICATION OF SUBCHAPTER; EXCEPTION. (a) This

subchapter applies if:

(1) an agency reduces a provider's block grant funding by 25

percent or more; and

(2) the agency provides the block grant funds to another

provider in the same geographic area to provide similar services.

(b) This subchapter does not apply if a provider's block grant

funding becomes subject to the agency's competitive bidding rules

requiring the agency to invite bids for competitive evaluation.

Added by Acts 1993, 73rd Leg., ch. 268, Sec. 1, eff. Sept. 1,

1993.

Sec. 2105.202. RULES; CONSIDERATIONS. (a) An agency shall

adopt specific rules defining good cause for nonrenewal of a

provider's contract or reduction of a provider's funding.

(b) In deciding whether to renew a provider's contract or to

reduce a provider's funding, an agency shall consider:

(1) the effectiveness of services rendered by various providers;

(2) the cost efficiency of programs undertaken by each provider;

(3) the extent to which the services of each provider meet the

needs of groups or classes of individuals who are poor or

underprivileged or have a disability;

(4) the degree to which services can be provided by other

programs in that area;

(5) the extent to which recipients are involved in the

providers' decision making; and

(6) the need to provide services in the state without

discrimination as to race, religion, or geographic region.

Added by Acts 1993, 73rd Leg., ch. 268, Sec. 1, eff. Sept. 1,

1993.

Sec. 2105.203. NOTICE TO PROVIDER OF REDUCTION. Not later than

the 30th day before the date on which block grant funds are

reduced, an agency shall send a provider a written statement

specifying the reason for reducing the funding.

Added by Acts 1993, 73rd Leg., ch. 268, Sec. 1, eff. Sept. 1,

1993.

Sec. 2105.204. HEARING ON REDUCTION OF FUNDING. (a) After

receiving notice that block grant funds are to be reduced as

provided by Section 2105.203, a provider may request an

administrative hearing under Chapter 2001 if the provider alleges

that a reduction of funding:

(1) violates the rules adopted under Section 2105.202(a);

(2) is discriminatory; or

(3) is without reasonable basis in law or fact.

(b) Not later than the 30th day after the date the request is

received, the agency shall conduct a hearing to determine whether

the funding should be reduced. The agency and the provider may

agree to postpone the hearing.

(c) An agency shall hold at least one session of the hearing in

the locality served by the provider and shall hear local public

comment on the matter at that time if requested to do so by:

(1) a local elected official; or

(2) an organization with 25 or more members.

Added by Acts 1993, 73rd Leg., ch. 268, Sec. 1, eff. Sept. 1,

1993.

Sec. 2105.205. INTERIM CONTRACT PENDING HEARING. If a provider

requests an administrative hearing under Section 2105.204, the

agency may enter into an interim contract with the provider or

another provider for the services formerly provided by the

provider while administrative or judicial proceedings are

pending.

Added by Acts 1993, 73rd Leg., ch. 268, Sec. 1, eff. Sept. 1,

1993.

SUBCHAPTER F. REDUCTION OF BLOCK GRANT FUNDS FOR GEOGRAPHIC AREA

Sec. 2105.251. APPLICATION OF SUBCHAPTER; EXCEPTION. (a) This

subchapter applies if:

(1) an agency reduces a provider's block grant funding by 25

percent or more; and

(2) the agency does not provide the block grant funds to another

provider in the same geographic area.

(b) This subchapter does not apply if the provider received

block grant funds for a specified period under a competitive

evaluation of proposals.

Added by Acts 1993, 73rd Leg., ch. 268, Sec. 1, eff. Sept. 1,

1993.

Sec. 2105.252. NOTICE TO PROVIDER. Not later than the 30th day

before the date on which the block grant funds are to be reduced,

an agency shall send a provider a written statement specifying

the reason for reducing the funding. The statement must be sent

to the provider so that the provider has sufficient time to

participate in public hearings and consultation proceedings

provided by Subchapter B.

Added by Acts 1993, 73rd Leg., ch. 268, Sec. 1, eff. Sept. 1,

1993.

Sec. 2105.253. RULES; CONSIDERATIONS. The rules adopted under

Section 2105.202(a) and the considerations provided by Section

2105.202(b) apply to a reduction of block grant funds under this

subchapter.

Added by Acts 1993, 73rd Leg., ch. 268, Sec. 1, eff. Sept. 1,

1993.

SUBCHAPTER G. TERMINATION OF BLOCK GRANT FUNDS

Sec. 2105.301. NOTICE TO PROVIDER. An agency that proposes to

terminate block grant funds of a provider that has violated the

terms of a contract or grant shall send the provider a written

statement specifying the reasons for the termination not later

than the 31st day before the termination date.

Added by Acts 1993, 73rd Leg., ch. 268, Sec. 1, eff. Sept. 1,

1993.

Sec. 2105.302. HEARING. (a) After receiving notice of

termination of a contract or subgrant from block grant funds, a

provider may request an administrative hearing under Chapter

2001.

(b) Not later than the 30th day after the date the request is

received, the agency shall conduct a hearing to determine whether

the funding should be terminated. The agency and the provider may

agree to postpone the hearing.

Added by Acts 1993, 73rd Leg., ch. 268, Sec. 1, eff. Sept. 1,

1993.

SUBCHAPTER H. JUDICIAL REVIEW

Sec. 2105.351. JUDICIAL REVIEW. A party to a hearing under

Subchapter D, E, F, or G may seek judicial review of the agency's

action as provided by Subchapter G, Chapter 2001.

Added by Acts 1993, 73rd Leg., ch. 268, Sec. 1, eff. Sept. 1,

1993.