Proposed Rules Title 40

TITLE 40. SOCIAL SERVICES AND ASSISTANCE

The Texas Veterans Commission (Commission) finds it necessary to propose the repeal of §§455.1 - 455.5 relating to Taps Program codified under Title 40, Texas Administrative Code, Part 15.

PURPOSE AND BACKGROUND

The proposed repeal is made to eliminate a rule that is no longer applicable.

EXPLANATION OF SECTIONS

Sections 455.1 - 455.5

The purpose of the repeal is to remove a rule that no longer has purpose, as the TAPS Program has been terminated by passage of Senate Bill (SB) 1859 during the 88th Legislature, which repealed Section 54.344 (Participation in Military Funerals), Education Code, and Section 434.0072 ("TAPS" Tuition Voucher Program), Government Code, effective September 1, 2023.

IMPACT STATEMENTS

FISCAL NOTE

Kenneth Biddle, Chief Financial Officer, Texas Veterans Commission, has determined for each year of the first five years the proposed rule repeal will be in effect, there will not be an increase in expenditures or revenue for state and local government as a result of administering the rule repeal.

COSTS TO REGULATED PERSONS

Kenneth Biddle, Chief Financial Officer, has also determined there will not be anticipated economic costs to persons required to comply with the proposed rule repeal.

LOCAL EMPLOYMENT IMPACT

Anna Baker, Director, Veterans Employment Services of the Texas Veterans Commission, has determined that there will not be a significant impact upon employment conditions in the state because of the proposed rule repeal.

SMALL BUSINESS, MICRO BUSINESS AND RURAL COMMUNITIES IMPACT

Megan Tamez, Director of the Veterans Entrepreneur Program of the Texas Veterans Commission, has determined that the proposed rule repeal will not have an adverse economic effect on small businesses, micro businesses or rural communities as defined in Texas Government Code §2006.001. As a result, an Economic Impact Statement and Regulatory Flexibility Analysis is not required.

PUBLIC BENEFIT

Shawn Deabay, Deputy Executive Director of the Texas Veterans Commission, has determined that for each year of the first five years the proposed rule repeal is in effect, the public benefit anticipated as a result of administering the repealed rule will reduce the need for formal disputes and settle disputes at the lowest level possible.

GOVERNMENT GROWTH IMPACT STATEMENT

Mr. Deabay has also determined that for each year of the first five years that the proposed rule repeals are in effect, the following statements will apply:

(1) The proposed rule repeal will not create or eliminate a government program.

(2) Implementation of the proposed rule repeal will not require creation of new employee positions, or elimination of existing employee positions.

(3) Implementation of the proposed rule repeal will not require an increase or decrease in future legislative appropriations to the agency.

(4) No fees will be created by the proposed rule repeal.

(5) The proposed rule repeal will not require new regulations.

(6) The proposed rule repeal has no effect on existing regulations.

(7) The proposed rule repeal has no effect on the number of individuals subject to the rule's applicability.

(8) The proposed rule repeal has no effect on this state's economy.

COMMENTS

Comments on the proposed rule repeal may be submitted to Texas Veterans Commission, Attention: General Counsel, P.O. Box 12277, Austin, Texas 78711; faxed to (512) 475-2395; or emailed to rulemaking@tvc.texas.gov. For comments submitted electronically, please include "Chapter 455 Rules" in the subject line. The Commission must receive comments postmarked no later than 30 days from the date this proposal is published in the Texas Register.

STATUTORY AUTHORITY

The rule repeal is proposed under Texas Government Code §434.010 which authorizes the Commission to establish rules it considers necessary for its administration.

No other statutes, articles, or codes are affected by this proposal.

§455.1.Purpose.

§455.2.Application.

§455.3.Definitions.

§455.4.Process.

§455.5.Adoption of Standard Form.

The agency certifies that legal counsel has reviewed the proposal and found it to be within the state agency's legal authority to adopt.

Filed with the Office of the Secretary of State on February 15, 2024.

TRD-202400653

Kathleen Cordova

General Counsel

Texas Veterans Commission

Earliest possible date of adoption: March 31, 2024

For further information, please call: (737) 320-4167

CHAPTER 456. CONTRACT NEGOTIATION AND MEDIATION

40 TAC §456.8, §456.13

The Texas Veterans Commission (Commission) proposes amendments to Chapter 456, Contract Negotiation and Mediation, Sections 456.8, and 456.13.

PART I. PURPOSE AND BACKGROUND

The proposed amendments are made to reflect the change of the title of this position from "Chief Administrative Officer" to "Director of Resource Management."

PART II. EXPLANATION OF SECTIONS

Section 456.8 Negotiation Timetable

In Subsection (a): Deletes the title "Chief Administrative Officer" and adds "Director of Resource Management."

Section 456.13

In Subsection (b): Deletes the title "Chief Administrative Officer" and adds "Director of Resource Management."

PART III. IMPACT STATEMENTS

FISCAL NOTE

Kenneth Biddle, Chief Financial Officer, Texas Veterans Commission, has determined for each year of the first five years the proposed rule amendment will be in effect, there will not be an increase in expenditures or revenue for state and local government as a result of administering the proposed rule.

COSTS TO REGULATED PERSONS

Kenneth Biddle, Chief Financial Officer, has also determined there will not be anticipated economic costs to persons required to comply with the proposed rule.

LOCAL EMPLOYMENT IMPACT

Anna Baker, Director, Veterans Employment Services, Texas Veterans Commission, has determined that there will not be a significant impact upon employment conditions in the state as a result of the proposed rule.

SMALL BUSINESS, MICRO BUSINESS AND RURAL COMMUNITIES IMPACT

Megan Tamez, Director, Veterans Entrepreneur Program, Texas Veterans Commission, has determined that the proposed rule will not have an adverse economic effect on small businesses, micro businesses or rural communities as defined in Texas Government Code §2006.001. As a result, an Economic Impact Statement and Regulatory Flexibility Analysis is not required.

PUBLIC BENEFIT

Shawn Deabay, Deputy Executive Director, Texas Veterans Commission, has determined that for each year of the first five years the proposed rules are in effect, the public benefit anticipated as a result of administering the amended rule will reduce the need for formal disputes and settle disputes at the lowest level possible.

GOVERNMENT GROWTH IMPACT STATEMENT

Mr. Deabay has also determined that for each year of the first five years that the proposed rule amendments are in effect, the following statements will apply:

(1) The proposed rule amendments will not create or eliminate a government program.

(2) Implementation of the proposed rule amendments will not require creation of new employee positions, or elimination of existing employee positions.

(3) Implementation of the proposed rule amendments will not require an increase or decrease in future legislative appropriations to the agency.

(4) No fees will be created by the proposed rule amendments.

(5) The proposed rule amendments will not require new regulations.

(6) The proposed rule amendments have no effect on existing regulations.

(7) The proposed rule amendments have no effect on the number of individuals subject to the rule's applicability.

(8) The proposed rule amendments have no effect on this state's economy.

PART IV. COMMENTS

Comments on the proposed amended rules may be submitted to Texas Veterans Commission, Attention: General Counsel, P.O. Box 12277, Austin, Texas 78711; faxed to (512) 475-2395; or emailed to rulemaking@tvc.texas.gov. For comments submitted electronically, please include "Chapter 456 Rules" in the subject line. The Commission must receive comments postmarked no later than 30 days from the date this proposal is published in the Texas Register.

PART V. STATUTORY AUTHORITY

The rule amendment is proposed under Texas Government Code §434.010 which authorizes the commission to establish rules it considers necessary for its administration.

No other statutes, articles, or codes are affected by this proposal.

§456.8.Negotiation Timetable.

(a) Following receipt of a contractor's notice of claim, the agency's Director of Resource Management [~~chief administrative officer~~] or [~~his~~] 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.

§456.13.Request for Contested Case Hearing.

(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 [~~chief administrative officer, his designee,~~] 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.