TITLE 40 SOCIAL SERVICES AND ASSISTANCEPART 1 DEPARTMENT OF AGING AND DISABILITY SERVICESCHAPTER 41 CONSUMER DIRECTED SERVICES OPTIONSUBCHAPTER A INTRODUCTIONRULES §§41.103, 41.108

Legend:• Single Underline = Proposed new language• [Strikethrough and brackets] = Current language proposed for deletion• Regular print = Current language• (No change.) = No changes are being considered for the designated subdivision.

§41.103. Definitions.

The following words and terms, when used in this chapter, have the following meanings unless the context clearly indicates otherwise:

(1) Adult--A person who is 18 years of age or older.

(2) Actively involved--Involvement with an individual that the individual's service planning team deems to be of a quality nature based on the following:

(A) observed interactions of the person with the individual;

(B) a history of advocating for the best interests of the individual;

(C) knowledge and sensitivity to the individual's preferences, values, and beliefs;

(D) ability to communicate with the individual; and

(E) availability to the individual for assistance or support when needed.

(3) Allowable cost--A billable service or item that is within the rate and spending limits of the rate established by the Health and Human Services Commission and that meets the requirements of an individual's program.

(4) Applicant--Depending on the context, an applicant is:

(A) a person applying for employment with an employer;

(B) a person or legal entity applying for a contract with an employer to deliver services to an individual; or

(C) a person enrolling in [applying for services through] a [DADS] program or service in which the CDS option is available to the individual as described in §41.108 of this subchapter.

(5) Budget--A written projection of expenditures for each [program] service delivered through the CDS option.

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(6) Budgeted unit rate--The unit rate calculated for employee compensation (wages and benefits) in the budgeting process for services delivered through the CDS option. The rate is calculated after employer support services have been budgeted.

(7) Case manager--A person who provides case management services to an individual. The case manager assists an individual who receives [program] services in gaining access to needed services, regardless of the funding source for the services, and assists with other duties in accordance with the rules of [as required by] the individual's program or service.

(8) CDS option--Consumer Directed Services option. A service delivery option in which an individual or LAR employs and retains service providers and directs the delivery of program services.

(9) CDSA--An FMSA.

(10) CFC--Community First Choice. T he CFC Option described in 1 Texas Administrative Code (TAC) Chapter 354, Subchapter A, Division 27 (relating to Community First Choice).

(11) CFC PAS/HAB--CFC personal assistance services/habilitation. A Medicaid state plan service provided through CFC.

(12) CFC support management--Training on how to select, manage, and dismiss an unlicensed service provider of CFC PAS/HAB.

(13) [(10)] Contractor--A person, who performs one or more program services, offers service to the general public, performs services for payment, and with whom the CDS employer has a written service agreement. A contractor directs and controls when and how the work is performed as well as the business aspect of the job including expenses and the business relationship. A contractor may be a sole proprietor.

(14) [(11)] DADS--The Department of Aging and Disability Services.

(15) [(12)] DR--Designated representative. A willing adult appointed by the employer to assist with or perform the employer's required responsibilities to the extent approved by the employer.

(16) [(13)] Employee--A person employed by an employer through a service agreement to deliver program services and who is paid an hourly wage for those services.

(17) [(14)] Employer--An individual or LAR who chooses to participate in the CDS option, and, therefore, is responsible for hiring and retaining service providers to deliver program services.

(18) [(15)] Entity--An organization that has a legal identity such as a corporation, limited partnership, limited liability company, professional association, or cooperative.

(19) [(16)] Employer support services--Services and items the employer needs to perform employer and employment responsibilities as described in §41.507(a)(1) of this chapter (relating

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to Employer Support Services Budgeting) [, such as office equipment and supplies, recruitment, and payment of Hepatitis B vaccinations for employees and support consultation].

(20) [(17)] EVV system--Electronic visit verification system. As defined in §68.102 [§68.102(7)] of this title (relating to Definitions), an electronic visit verification system that:

(A) allows a service provider to electronically report:

(i) the service recipient's identity;

(ii) the service provider's identity;

(iii) the date and time the service provider begins and ends the delivery of services;

(iv) the location of service delivery; and

(v) tasks performed by the service provider; and

(B) meets other guidelines described on the DADS website at www.dads.state.tx.us.

(21) [(18)] FMS--Financial management services. Services delivered by an [the] FMSA to an employer or DR as described in §41.309(a) of this chapter (relating to Financial Management Services, CFC Support Management, and Vendor Fiscal/Employer Agent Responsibilities) [such as orientation, training, support, assistance with and approval of budgets, and processing payroll and payables on behalf of the employer].

(22) [(19)] FMSA--A financial management services agency. A person, as defined in §49.102 of this title (relating to Definitions), [An entity] that contracts with DADS to provide FMS [financial management services (FMS)].

(23) [(20)] Individual--A person enrolled in a DADS program or service in which the CDS option is available as described in §41.108 of this subchapter.

(24) [(21)] LAR--Legally authorized representative. A person authorized or required by law to act on behalf of an individual with regard to a matter described in this chapter, including a parent of a minor, guardian of a minor, managing conservator of a minor, or the guardian of an adult.

(25) [(22)] LIDDA [Local authority]--Local intellectual and developmental disability authority. An entity designated by [as described in Texas Health and Safety Code §531.002(11) to which] the executive commissioner of the Health and Human Services Commission, [has delegated authority and responsibility] in accordance with Texas Health and Safety Code §533A.035 [§533.035(a)].

(26) [(23)] Minor--A person who is 17 years of age or younger.

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(27) [(24)] Non-program resource--A resource, other than an individual's DADS program or service [that provides one or more services or items].

(28) [(25)] Parent--A natural, legal, foster, or adoptive parent of a minor.

(29) [(26)] Program or service--A [community services] program or service administered by DADS that is described in §41.108 of this subchapter.

(30) [(27)] Relative--A person related to an employer within the fourth degree of consanguinity or within the second degree of affinity.

(31) [(28)] Service agreement--A written agreement or acknowledgment between two parties that defines the relationship and lists respective roles and responsibilities.

[(29) Service area--A geographic area served by a program or specified in a contract with DADS.]

(32) [(30)] Service backup [back-up] plan--A documented plan to ensure that critical [program] services delivered through the CDS option are provided to an individual when normal service delivery is interrupted or there is an emergency.

(33) [(31)] Service coordinator--An employee of a LIDDA [local authority] who is responsible for assisting an applicant, individual, or LAR to access needed medical, social, educational, and other appropriate services, including a DADS program or service [services]. A service coordinator provides case management services to an individual.

(34) [(32)] Service plan--A document developed in accordance with rules governing an individual's program or service that identifies the [program] services to be provided to the individual, the number of units of each service to be provided, and the projected cost of each service.

(35) [(33)] Service planning team--A group of people identified in accordance with [determined based on] the requirements of an individual's program or service. Some DADS programs and services refer to the service planning team as an interdisciplinary team.

(36) [(34)] Service provider--An employee, contractor, or vendor.

(37) [(35)] Support advisor--An employee [A person] who provides support consultation to an employer, [or] a DR, or an individual receiving services through the CDS option.

(38) [(36)] Support consultation--An optional service that is provided by a support advisor and provides a level of assistance and training beyond that provided by the FMSA [CDSA] through FMS or CFC support management. Support consultation helps an employer to meet the required employer responsibilities of the CDS option and to successfully manage the delivery of [deliver] program services.

(39) [(37)] Vendor--A person or entity selected by an employer or DR to deliver [services,] goods, [or] items, or services other than a direct service to an individual. Examples of

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vendors include a building contractor, an electrician, a durable medical equipment provider, pharmacy, and [or] a medical supply company.

(40) [(38)] Vendor fiscal/employer agent--The entity responsible for conducting payroll activities, including withholding, filing, and depositing taxes on behalf of an employer in the CDS option in accordance with Section 3504 of the Internal Revenue Service (IRS) code and with IRS Procedure 2013-39 [70-60].

(41) [(39)] Working day--Any day except a Saturday, a Sunday, or a national or [a] state holiday listed in Texas Government Code §662.003(a) or (b) [, or a federal holiday].

§41.108. Services Available Through the CDS Option.

(a) The CDS option is available in the following programs and services:

(1) Medicaid waiver programs as follows:

(A) the Community Living Assistance and Support Services (CLASS) Program, if the individual does not receive in the CLASS Program:

(i) family support services; or

(ii) continued family services;

(B) the Deaf Blind with Multiple Disabilities (DBMD) Program, if the individual does not receive in the DBMD Program:

(i) licensed assisted living; or

(ii) licensed home health assisted living;

(C) the Home and Community-Based Services (HCS) Program, if the individual does not receive in the HCS Program:

(i) residential support;

(ii) supervised living; or

(iii) host home/companion care;

(D) the Medically Dependent Children [(MDCP)] Program (MDCP); and

(E) the Texas Home Living (TxHmL) Program;

(2) primary home care/community attendant services (Medicaid state plan services); and

(3) services under Title XX, Subtitle A of the Social Security Act as follows:

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(A) family care; and

(B) consumer managed personal attendant services.

(b) Except for an individual who receives a service [any of the services] described in subsection (a)(1)(A)(i) or (ii), (B)(i) or (ii), or (C)(i), (ii) or (iii) [(C)] of this section, an individual enrolled in a [for each] waiver program described [program listed] in subsection (a)(1)(A)-(E) of this section, [an individual] may choose to receive [any of] the following services through the CDS option:

(1) the CLASS Program:

(A) habilitation;

(B) in-home respite;

(C) nursing;

(D) occupational therapy;

(E) out-of-home respite;

(F) physical therapy;

(G) speech therapy;

(H) employment assistance;

(I) [(H)] supported employment; [and]

(J) CFC PAS/HAB; and

(K) [(I)] any other service provided through the CDS option as listed on DADS website;

(2) the DBMD Program:

(A) employment assistance;

(B) intervener;

(C) residential habilitation;

(D) respite;

(E) supported employment; [and]

(F) CFC PAS/HAB; and

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(G) [(F)] any other service provided through the CDS option as listed on DADS website;

(3) the HCS Program:

(A) cognitive rehabilitation therapy;

(B) employment assistance;

(C) nursing;

(D) supported employment;

(E) supported home living;

(F) respite; [and]

(G) CFC PAS/HAB; and

(H) [(G)] any other service provided through the CDS option as listed on DADS website;

(4) the MDCP [Program]:

(A) employment assistance;

(B) flexible family support services;

(C) respite;

(D) supported employment; and

(E) any other service provided through the CDS option as listed on DADS website; and

(5) the TxHmL Program:

(A) adaptive aids;

(B) audiology services;

(C) behavioral support;

(D) community support;

(E) day habilitation;

(F) dental treatment;

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(G) dietary services;

(H) employment assistance;

(I) nursing;

(J) minor home modifications;

(K) occupational therapy;

(L) physical therapy;

(M) respite;

(N) speech/language pathology services;

(O) supported employment; [and]

(P) CFC PAS/HAB; and

(Q) [(P)] any other service provided through the CDS option as listed on DADS website.

TITLE 40 SOCIAL SERVICES AND ASSISTANCEPART 1 DEPARTMENT OF AGING AND DISABILITY SERVICESCHAPTER 41 CONSUMER DIRECTED SERVICES OPTIONSUBCHAPTER B RESPONSIBILITIES OF EMPLOYERS AND DESIGNATED

REPRESENTATIVESRULES §§41.211, 41.225

§41.211. Financial Management Services.

An employer must agree to accept FMS from the selected FMSA [CDSA] as described in §41.309 of this chapter (relating to Financial Management Services, CFC Support Management, and Vendor Fiscal/Employer Agent [Employer-Agent] Responsibilities).

§41.225. Criminal History Check of an Applicant for Employment and an Employee.

(a) Before an applicant can become an employee, an employer or DR must:

(1) obtain the applicant's information required on the Criminal History and Registry Checks Form 1725 to conduct a criminal history background check through the Texas Department of Public Safety (DPS) secure online website;

(2) sign the certification section on Form 1725 acknowledging that criminal history records and reports include confidential information that must not be shared, released, or otherwise disclosed, under penalty of law; and

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(3) request that the FMSA obtain the criminal history report from the secure online DPS Criminal History Conviction Database website.

(b) If the employer or DR asks the FMSA to send the criminal history report to the employer or DR, the employer or DR must receive the original criminal history report sent by the FMSA, using a DPS-approved secure method of dissemination, before hiring the applicant.

(c) A criminal history report must be dated no more than 30 calendar days before the applicant's date of hire.

(d) An employer or DR must not hire an applicant or retain an employee who:

(1) has a criminal history that indicates the applicant or employee has been convicted of an offense included in Texas Health and Safety Code (THSC), §250.006(a); or

(2) has a criminal history that indicates the applicant or employee has been convicted of an offense included in THSC, §250.006(b) within the previous five years.

(e) An employer or DR must retain a copy of Form 1725 completed as described in subsection (a)(2) of this section for each employee in accordance with record retention requirements described in §41.243 of this chapter (relating to Record Retention).

(f) An employer or DR, within five calendar days after making the hiring decision, must destroy the criminal history record documents obtained from DPS for all applicants, whether or not hired or retained by the employer or DR, obtained as described in subsection (a)(3) of this section as follows:

(1) for paper records, shredding, pulping, or burning; and

(2) for electronic records, destroying the media or using specialized software to copy over the data.

(g) An employer or DR may, at any time, obtain or request that the FMSA obtain an updated criminal history report for a current employee.

(h) Within five calendar days after receiving a criminal history report from the FMSA under subsection (g) of this section, the employer or DR must destroy the report using a method described in subsection (f) of this section.

(i) An employer or DR must immediately terminate an employee if an updated criminal history report indicates that the employee has been convicted of an offense included in THSC, §250.006(a), or the employee has been convicted of an offense included in THSC, §250.006(b) within the previous five years.

(j) The [actual] cost of obtaining a criminal history report must be budgeted by the employer or DR in accordance with §41.507(d)(2) of this chapter (relating to Employer Support Services Budgeting) and be [is] paid as an employer support service expenditure, except for the report of an applicant or current employee who is:

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(1) only providing CFC PAS/HAB; or [.]

(2) providing support consultation to an individual who is receiving only CFC PAS/HAB through the CDS option.

(k) When contracting with an entity, the employer or DR and the entity must complete a service agreement in which the entity certifies that the entity has checked and verified that each person delivering a service to the individual on behalf of the entity has not been convicted of an offense listed in THSC, §250.006(a), or an offense listed in THSC, §250.006(b) within the previous five years.

TITLE 40 SOCIAL SERVICES AND ASSISTANCEPART 1 DEPARTMENT OF AGING AND DISABILITY SERVICESCHAPTER 41 CONSUMER DIRECTED SERVICES OPTIONSUBCHAPTER C ENROLLMENT AND RESPONSIBILITIES OF FINANCIAL

MANAGEMENT SERVICES AGENCIES (FMSAS)RULES §§41.309, 41.323

§41.309. Financial Management Services, CFC Support Management, and Vendor Fiscal/Employer Agent [Employer-Agent] Responsibilities

(a) An FMSA must provide FMS to an employer or DR. FMS consists of the following activities [, including]:

(1) providing initial orientation as described in §41.307 of this chapter (relating to Initial Orientation of an Employer);

(2) providing ongoing training, assistance, and support for employer-related responsibilities;

(3) assisting an employer to verify [verifying] qualifications of service providers [applicants] before services are delivered, including citizenship status;

(4) monitoring continued eligibility of service providers;

(5) approving and monitoring budgets for services delivered through the CDS option;

(6) collecting and processing service provider timesheets or invoices approved by the employer;

(7) [(6)] processing [managing] payroll, including calculating [calculations of] employee withholdings and employer contributions and depositing these funds with applicable federal, state, and local [appropriate] agencies;

(8) [(7)] complying with applicable government regulations concerning employee withholdings, garnishments, mandated withholdings, and benefits;

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(9) [(8)] preparing and filing required tax forms and reports;

(10) [(9)] paying allowable expenses incurred by the employer;

(11) [(10)] providing status reports concerning the individual's budget, expenditures, and compliance with CDS option requirements; and

(12) [(11)] responding to the employer or DR as soon as possible, but at least within two working days after receipt of information requiring a response from the FMSA, unless indicated otherwise in this chapter.

(b) An FMSA must provide, in accordance with DADS instructions, CFC support management to an individual or LAR if:

(1) the individual is receiving CFC PAS/HAB; and

(2) the individual or LAR requests to receive CFC support manag e ment.

(c) [(b)] An [The] FMSA must complete DADS Form 1739 Service Provider Agreement [enter into a service agreement provided by DADS] with an [each of the] employer's service provider [providers] before issuing the initial payment for services to the service provider.

(d) [(c)] An [The] FMSA must accept [the designated portion of the program service rate or] a designated fee established by the Health and Human Services Commission as payment in full for FMS provided [delivered].

(e) [(d)] An [The] FMSA must maintain originals or copies of records to document compliance with this section.

(f) [(e)] An [The] FMSA must not provide FMS and case management services to the same individual as prohibited in §41.301 of this chapter (relating to Contracting as a Financial Management Services Agency).

§41.323. Criminal History Check of an Applicant for Employment and to be an Employee.

(a) The FMSA must ensure that the employer or DR signs the Criminal History and Registry Checks form (Form 1725) acknowledging that criminal history reports are confidential and must not be shared, released, or otherwise disclosed, under penalty of law.

(b) The FMSA must, using the applicant information provided by the employer on the Criminal History and Registry Checks Form (Form 1725):

(1) obtain the criminal history record information directly from the Texas Department of Public Safety's (DPS) secure online criminal history website within two working days after the CDS employer or DR requests the information; and

(2) if requested by the CDS employer or DR, using a DPS-approved secure method, send the original printed document of the criminal history record information to the employer within two working days after receiving the request.

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(c) The criminal history report must not be dated more than 30 calendar days before the date the applicant is hired.

(d) The FMSA must review the criminal [conviction] history report on each applicant and notify the employer or DR in writing, using the Criminal History Registry Checks form (Form 1725), if the applicant has been convicted of an offense listed in Texas Health and Safety Code (THSC), §250.006(a), or an offense listed in THSC, §250.006(b) within the previous five years, and the applicant must not be hired or retained.

(e) The FMSA must maintain a copy of the Criminal History and Registry Checks form (Form 1725) for an applicant hired by an employer or DR.

(f) The FMSA, within five calendar days after the hiring decision, must destroy the criminal history record information obtained from DPS as described in subsection (b)(1) of this section for all applicants, whether or not hired or retained by the employer or DR, as follows:

(1) for paper records, shredding, pulping, or burning; and

(2) for electronic records, destroying the media or using specialized software to copy over the data.

(g) The FMSA must obtain an updated criminal history report [check] for an [a] employee, if requested by the employer or DR. If the results of the updated report [check] indicate the employee has been convicted of an offense listed in THSC, §250.006(a), or an offense listed in THSC, §250.006(b) within the previous five years, the FMSA must notify the employer or DR that the person must be terminated immediately as an [a] employee.

(h) Within five calendar days after obtaining the criminal history report under subsection (g) of this section, the FMSA must destroy the report using a method described in subsection (f) of this section.

(i) The cost of obtaining a criminal history report [check and other background checks] must be budgeted by the employer or DR in accordance with §41.507(d)(2) [§41.225] of this chapter (relating to Employer Support Services Budgeting [Criminal History Check of an Applicant for Employment and an Employee]) and be paid as an employer support service expenditure, except for the report of an applicant or employee who is:

(1) only providing CFC PAS/HAB; or

(2) providing support consultation to an individual who is receiving only CFC PAS/HAB through the CDS option.

[The reimbursement for each criminal history check is paid as an employer support service expenditure at actual cost noted on the receipt to the FMSA that purchased the DPS criminal history check.]

(j) From the fee established by the Health and Human Services Commission for providing FMS, an FMSA must pay the cost of obtaining the criminal history report of an applicant or employee who is:

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(1) only providing CFC PAS/HAB; or

(2) providing support consultation to an individual who is receiving only CFC PAS/HAB through the CDS option.

(k) The amount paid for a criminal history report must be the amount stated on a receipt to the FMSA for purchase of the criminal history report.

TITLE 40 SOCIAL SERVICES AND ASSISTANCEPART 1 DEPARTMENT OF AGING AND DISABILITY SERVICESCHAPTER 41 CONSUMER DIRECTED SERVICES OPTIONSUBCHAPTER E BUDGETSRULES §§41.505, 41.507

§41.505 Payroll Budgeting

(a) An employer or DR must, when developing a budget that includes payroll expenses for an employee:

(1) budget to pay:

(A) subject to subparagraph (B) of this paragraph, an employee at least the minimum hourly wage required by law before withholdings and garnishments; and

(B) the following employees at least $8.00 per hour, if the rate required by this subparagraph exceeds the minimum wage required by law:

(i) an employee providing primary home care, family care, or community attendant services;

(ii) an employee providing flexible family support and respite services in the Medically Dependent Children Program;

(iii) an employee providing habilitation or CFC PAS/HAB in the Community Living Assistance and Support Services Program;

(iv) an employee providing residential habilitation or CFC PAS/HAB in the Deaf Blind Multiple Disabilities Program;

(v) an employee providing personal attendant services in the Consumer Managed Personal Attendant Services Program;

(vi) an employee providing supported home living or CFC PAS/HAB in the Home and Community-based Services Program; and

(vii) an employee providing community support or CFC PAS/HAB in the Texas Home Living Program;

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(2) budget employee benefits, if chosen by the employer or DR:

(A) as provided in:

(i) this chapter;

(ii) Section 1000, Wages and Benefits Plan, of the Consumer Directed Services Handbook available at http://www.dads.state.tx.us/handbooks/CDS/1000/index.htm; or

(iii) Appendix XI, Allowable and Non-Allowable Expenditures, in the Consumer Directed Services Handbook available at http://www.dads.state.tx.us/handbooks/CDS/appendix/XI/index.htm;

(B) that are in accordance with requirements of the individual's program:

(i) an allowable cost, as defined in §41.103 of this chapter (relating to Definitions);

(ii) reasonable, with regard to the cost of the service, good, or item; and

(iii) necessary to meet employer responsibilities;

(C) that are within the approved rate and spending limits established for the service;

(D) that are accrued and paid based on actual hours worked; and

(E) that may include any of the following:

(i) increased wages;

(ii) paid vacation;

(iii) paid holiday;

(iv) paid sick leave;

(v) medical insurance;

(vi) taxable work-related expenses;

(vii) coverage of work-related injuries or illnesses for employees, including workers' compensation or options listed in "Liability Notice to Applicants for Employment," Section II, of Form 1728, Liability Acknowledgment;

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(viii) a hire-on bonus, paid when an employee is hired, and the amount budgeted for the bonus must be accrued from hours worked by the person within the first three months of employment;

(ix) a bonus, based on the employee's job performance, that is budgeted and accrued from hours worked as a portion of the budget unit rate from hours worked by the employee, not to extend beyond the end date of the individual's service plan;

(x) a bonus, based on the employee's length of employment, with the employer, if budgeted and accrued as a portion of the budget unit rate from hours worked by the employee, not to extend beyond the end date of the individual's service plan; and

(xi) employer contributions for employee benefits; and

(3) make budget revisions if necessary to compensate for payment of overtime pay that must be calculated and paid in accordance with current state and federal labor laws and regulations.

(b) An employer or DR must:

(1) complete, but not sign, Form 1730, Employee Wage and Benefits Plan, for each employee at the time of hire and when an employee's wages or benefits are being changed;

(2) submit the form to the FMSA for approval;

(3) obtain written approval from the FMSA; and

(4) after FMSA approval, sign the form and obtain the employee's signature on Form 1730 on or before the employee's first day of work or the effective date of the change.

(c) A FMSA must:

(1) review the employer's budgeted payroll spending decisions;

(2) review Form 1730 for each employee at time of hire and as revised by the employer or DR;

(3) verify that each applicable budget workbook and Form 1730 is within the approved budget; and

(4) notify the employer in writing of the approval or disapproval of Form 1730 and work with the employer or DR to resolve those issues that prevent the approval of the Form 1730.

§41.507. Employer Support Services Budgeting.

(a) An employer or DR may budget employer support services and start-up expenses, through the [those] services that are delivered by one or more employees in the CDS option. [:]

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(1) Employer [employer] support services: [, including:]

(A) include:

(i) [(A)] employment-related expenses, as described in subsection (d) of this section;

(ii) [(B)] employer-related expenses, as described in subsection (e) of this section; and

(iii) [(C)] support consultation services, as described in subsection (f) of this section when available in the individual's program; and

(B) exclude non-allowable expenditures listed in Appendix XI, Allowable and Non-Allowable Expenditures, in the Consumer Directed Services Handbook available at http://www.dads.state.tx.us .

(2) Start-up [start-up] expenses [that] must be:

(A) budgeted for purchases projected before the delivery of services through the CDS option; and

(B) accrued from the budgeted unit rate for services scheduled for delivery through the CDS option within the first three months of initiation of the CDS option.

(b) An employer or DR:

(1) may budget up to 10 percent of the amount available, after the FMSA [CDSA] portion is calculated, in those services delivered by one or more employees;

(2) must not budget more than $600 annually or more than $50 per month if less than 12 months remain in the service plan for employer support services, including:

(A) employment-related expenses; and

(B) employer-related expenses;

(3) must not budget more than the remaining amount of the 10 percent maximum for support consultation services; and

(4) may budget any remaining amount in the affected program service for employee compensation.

(c) An employer or DR must, for funds remaining in employer support services, budget the remaining funds to:

(1) employee compensation (wages and benefits); or

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(2) with approval of the individual's service planning team, support consultation services in accordance with subsection (f) of this section and Subchapter F of this chapter (relating to Support Consultation Services and Support Advisor Responsibilities).

(d) An employer or DR may budget allowable, necessary, and reasonable employment-related services, goods, or items, including:

(1) recruiting expenses;

(2) obtaining a criminal [conviction] history report [checks] from the Texas Department of Public Safety, except for the report of an applicant or employee who is:

(A) only providing CFC PAS/HAB; or

(B) providing support consultation to an individual who is receiving only CFC PAS/HAB through the CDS option;

[(3) acquiring other background checks of a potential service provider;]

(3) [(4)] purchased employee job-specific training;

(4) [(5)] cardio-pulmonary resuscitation training;

(5) [(6)] first-aid training;

[(7) Hepatitis B vaccination if elected by an employee;]

(6) [(8)] supplies required for an employee or provider of the service to perform a task, if not available through the individual's program or other source and the purchase is allowable through the individual's program;

(7) [(9)] non-taxable employee benefits; and

(8) [(10)] services, goods, and items specifically approved by the individual's program as an employer support service or included as allowable expenditures in Appendix XI, Allowable and Non-Allowable Expenditures, in the Consumer Directed Services Handbook available at http://www.dads.state.tx.us/handbooks/CDS/appendix/XI/index.htm.

(e) An employer or DR may budget employer-related services, goods, or items required to meet employer responsibilities, including:

(1) basic office equipment, which may include a basic fax machine for the purpose of submitting documents to the FMSA [CDSA];

(2) mailing costs;

(3) expenses related to making copies;

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(4) file folders and envelopes; and

(5) services, goods, and items specifically approved by the individual's program as an employer support service or included as allowable expenditures in Appendix XI, Allowable and Non-Allowable Expenditures, in the Consumer Directed Services Handbook.

(f) If support consultation services are approved by the individual's service planning team, the employer or DR must budget the service within the spending limits in subsection (b) of this section for employer support services and obtain approval of the budget from the FMSA [CDSA] before implementation of the service.

(g) An employer or DR must, before requesting additional funds available for support consultation:

(1) provide the individual's case manager or service coordinator with justification for the specific services requested through support consultation;

(2) verify with the case manager or service coordinator the availability of non-program resources for the requested service; and

(3) obtain approval from the individual's service planning team for additional funds for support consultation in accordance with subsection (h) of this section.

(h) If the service planning team approves additional funds for support consultation, the team must reallocate funds within the individual's service plan without increasing the total cost of the individual's service plan.

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