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.