(a) A contractor must develop and maintain records in accordance with its contract, this subchapter, and HHSC rules governing services provided under the contract.
(b) A contractor must:
  (1) use forms required by HHSC or, if a specific form is not required by HHSC, develop records that include elements required by HHSC; and
  (2) ensure that:
    (A) a beginning time for a service is not documented until after the service being documented has been initiated; and
    (B) an ending time or a time period for a service is not documented until after the service has been provided.
(c) Before a contractor submits a claim for services under its contract, the contractor's records must support the claim.
(d) A contractor's records must be maintained in accordance with generally accepted accounting principles, referred to as GAAP, established by the Financial Accounting Standards Board.
(e) A contractor must develop and maintain records that:
  (1) document the extent of services provided;
  (2) document compliance with this chapter; and
  (3) include records required by rules governing services provided under its contract.
(f) A contractor must develop and maintain records for an employee, subcontractor, or volunteer that include:
  (1) a description of the employee, subcontractor, or volunteer's responsibilities;
  (2) the employee's completed application;
  (3) records that the employee, subcontractor, or volunteer is qualified for the position for which the person is employed, contracting, or volunteering, in accordance with rules governing services provided under the contract;
  (4) records that the contractor conducted the reviews described in §49.304 of this subchapter (relating to Background Checks);
  (5) records that the employee, subcontractor, or volunteer received any training required by rules governing services provided under the contract; and
  (6) records of any disciplinary action.
(g) For purposes of subsection (f)(4) of this section, records maintained to show compliance with §49.304(f) of this subchapter must include:
  (1) documentation of the first and last name, date of birth, and social security or employer identification number of an employee or subcontractor required to be the subject of a review described in §49.304(f)(1) of this subchapter;
  (2) the printed first and last name and signature of the person conducting the review;
  (3) documentation of the date the review was conducted;
  (4) documentation of whether the employee and subcontractor who was the subject of the review was listed on either of the LEIEs described in §49.304(f)(1) of this subchapter; and
  (5) a copy of the report made in accordance with §49.304(f)(4) of this subchapter.
(h) A contractor must develop and implement written procedures to:
  (1) prevent falsification or unauthorized access, disclosure, modification, or destruction of records and data;
  (2) ensure the availability, integrity, authenticity, completeness, and confidentiality of records and data; and
  (3) ensure that appropriate audit trails and sufficiently complete transaction histories are maintained to identify the person or position that makes an entry, modification, or correction to records or data that supports a claim for services under its contract.
(i) If a contractor uses paper records described in this section, the contractor must:
  (1) ensure records are completed in ink;
  (2) retain the original records;
  (3) except as provided in HHSC rules governing services provided under the contract, ensure records are signed and dated by the person making the entry;
  (4) ensure a stamped signature is used only by a person with a disability as an accommodation for the disability; and
  (5) ensure that if a correction to records is necessary, the correction is made by:
    (A) marking a single line through the error;
    (B) adding the date the correction was made and the initials of the person who made the correction; and
    (C) not using correction fluid or tape or otherwise obliterating the original entry.
(j) If a contractor uses electronic records described in this section, the contractor must:
  (1) develop and implement written procedures, which must include maintaining current virus protection software, to prevent the loss or corruption of data due to malicious code;
  (2) develop and implement written procedures governing the use of electronic signatures that:
    (A) ensure authenticity of an electronic signature;
    (B) describe the method of authentication used, such as password, personal identification number, digital signature, or other unique identifier, by document type;
    (C) identify the person or position who is authorized to sign electronically by document type; and
    (D) describe security measures used to prevent unauthorized use of electronic signatures; and
  (3) use an electronic record system that:
    (A) documents any change in content that was made to the electronic record;
    (B) documents the date the change was made;
    (C) documents the name and employee number or other unique identifier of the person who made the change; and
    (D) allows a record to be retrievable as a paper record.
(k) A contractor must:
  (1) ensure records are available for review in accordance with the contract; and
  (2) as requested by HHSC or any federal or state agency authorized to have access to records:
    (A) provide, at no charge, a copy of any records to HHSC and the federal or state agency in the form requested by HHSC or the federal or state agency; or
    (B) allow HHSC and the federal or state agency to make a copy of any records, at no charge.

Source Note: The provisions of this §52.109 adopted to be effective September 1, 2014, 39 TexReg 6637; amended to be effective September 1, 2018, 43 TexReg 5230; transferred effective April 29, 2024, as published in the March 29, 2024, issue of the Texas Register, 49 TexReg 2091