(a) The Agency may select and contract with one or more CNAs and shall contract through a request for proposals for a period not to exceed five years to perform, at a minimum, the duties set forth in Texas Human Resources Code §122.019(a) and (b).

(b) The management fee rate charged by a CNA for its services to a CRP and its method of calculation must be approved by the Commission. The maximum management fee rate must be reviewed on an annual basis.

(c) A percentage of the management fee described in subsection (b) of this section shall be paid to the Agency. The percentage shall be set by the Commission in the amount necessary to reimburse the general revenue fund for direct and reasonable costs incurred by the Comptroller and the Agency in administering the Comptroller's and the Agency's duties under this chapter, including any costs associated with providing support to the advisory committee.

(d) In accordance with Texas Human Resources Code §122.019(c), the Agency shall annually review services by and the performance of a CNA and the revenue required to accomplish the program. The purpose of the review shall be to determine whether a CNA has complied with statutory requirements, contract requirements, and performance standards set forth in §806.32 of this title (relating to performance standards for a CNA).

(e) Following the review of a CNA as required by Texas Human Resources Code §122.019(d), the Agency may approve the performance of the CNA and the continuation of the contract through its termination date.

(f) For the effective administration of this chapter, the CNA will provide to the Agency, no later than 60 days after the end of each federal fiscal quarter, the following information regarding CRPs that have contracted with the CNA:

(1) For CRPs: (A) a collective executive summary of the CRPs annual state use program evaluations; (B) the number of individuals with disabilities, according to their type of disability, who are employed in CRPs participating in the programs established by this chapter or who are employed by businesses or workshops that receive supportive employment from CRPs; (C) the amount of annual wages paid to each employee participating in the program in a format determined by the Agency; (D) a summary of the sale of products offered by the CRPs; (E) a list of products and/or services offered by a CRP; (F) the geographic distribution of CRPs; (G) the number of individuals without disabilities who are employed in CRPs under this chapter; and (H) the average and range of weekly earnings for individuals with disabilities and individuals without disabilities who are employed in CRPs under this chapter; and

(2) from each CRP data on individual outplacement or supported employment to include: (A) the number of individuals in outplacement employment; (B) the hourly wage range; (C) the range of hours worked; and (D) the number of individuals with disabilities employed, listed by primary type of disability.

(g) In order to conduct the reviews required by Texas Human Resource Code §122.019(c) and §122.019(d), a CNA will provide or make available to the Agency:

(1) quarterly reports for each calendar quarter listing CRPs that do not meet criteria for participation in the state use program and the reasons that each CRP listed does not meet the criteria;

(2) at least once a year by October 31, and prior to any review and/or renegotiation of the contract: (A) an updated marketing plan; (B) a proposed annual budget with estimated sales, commissions, and expenses; (C) a program budget with details on how the expected revenue and expenses will be allocated to directly support and expand the state use program and other programs that expand direct services and/or the enhancement of employment opportunities for individuals with disabilities; and (D) an audited annual financial statement that shall include information on FDIC coverage of all cash balances, earnings attributed to the management fee for the state use program, accounts receivable, cash reserves, line of credit borrowings, interest payments, bad debt, administrative overhead and any detailed supporting documentation requested by the Agency;

(3) quarterly reports of categories of expenditures in reporting format approved by the Agency;

(4) records in accordance with Texas Human Resources Code §122.009(a) and §122.0019(d) for audit purposes, consistent with Texas Government Code, Chapter 552, the "Public Information Act"; and

(5) any other information the Agency requests as set forth in this chapter.

(h) The Agency will post the public information provided under subsections (f) and (g) of this section within 20 days of receipt.

(i) Duties of a CNA include, but are not limited to, those listed in Texas Human Resources Code §122.019(a).

(j) The services of a CNA may include marketing and marketing support services, such as those identified in §122.019(b). Other duties as designated by the Agency may include:

(1) establishing a payment system with a goal to pay CRPs within fourteen (14) to twenty-one (21) calendar days, but not more than thirty (30) days of completion of work and proper invoicing;

(2) resolving contract issues and/or problems as they arise between the CRPs and customers of the program, referring those that cannot be resolved to the Agency;

(3) maintaining a system that tracks and monitors product and service sales; and

(4) tracking and reporting quality and delivery times of products and services.

(k) Each year by October 31, a CNA will establish performance goals for the next fiscal year in support of objectives set by the Commission.

(l) The Agency may terminate a contract with a CNA if the Agency:

(1) finds substantial evidence of the CNA's noncompliance with contractual obligations or of conflict of interest as defined by federal and state laws; and

(2) has provided at least 30 days written notice to that CNA of the termination of the contract.

(m) The Agency may request an audit by the state auditor of:

(1) the management fee set for any CNA; or

(2) the financial condition of any CNA.

(n) The Commission must annually review the management fees the CRPs are charged by the CNAs. The annual review process includes:

(1) sending notice to affected parties, including CRPs;

(2) soliciting and considering public comment; and

(3) reviewing documentation provided by a CNA, CRP, or the public in support or opposition of a proposed management fee rate change.

(o) An individual may not operate a CRP and at the same time contract with the Agency as a CNA.

Source Note: The provisions of this §806.31 adopted to be effective June 12, 2017, 42 TexReg 3003