By: Zaffirini S.B. No. 2165               A BILL TO BE ENTITLED   AN ACT   relating to day habilitation services for individuals with an   intellectual disability; imposing an administrative penalty.          BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:          SECTION 1.  Chapter 161, Human Resources Code, is amended by   adding Subchapter J to read as follows:   SUBCHAPTER J.  DAY HABILITATION REGISTRATION AND REGULATION          Sec. 161.401.  DEFINITIONS.  In this subchapter:                (1)  "Day habilitation services" means services   provided in a nonresidential setting to assist persons with   intellectual and developmental disabilities in acquiring,   retaining, and improving the self-help, socialization, and   adaptive skills necessary to reside successfully in the community.                (2)  "Day habilitation services provider" means a   person who contracts with a community-based intellectual and   developmental disabilities services provider or intermediate care   facility to provide federally funded Medicaid day habilitation   services authorized under Section 1915(c) of the federal Social   Security Act (42 U.S.C. Section 1396n(c).                (3)  "Medicaid waiver participant" means an individual   who receives services through a Medicaid waiver program authorized   under 42 U.S.C. Section 1369n(c).                (4)  "Medicaid waiver program" means services under the   state Medicaid home and community-based services waiver program for   persons with an intellectual disability adopted in accordance with   42 U.S.C. Section 1369n(c).                (5)  "Service planning team" means a group of persons   convened to develop a plan of services and supports for a Medicaid   waiver participant, including the participant, appropriate staff   members and professional personnel, and other persons selected by   the participant's legally authorized representative.          Sec. 161.402.  COMMISSION REGISTRATION PROGRAM.  (a)  The   executive commissioner by rule shall establish a registration   process by which a day habilitation services provider may register   with the commission if the provider demonstrates to the commission   that the provider:                (1)  follows safety guidelines and minimum service   requirements established by the executive commissioner; and                (2)  meets the minimum qualifications for a person or   entity providing services to an individual participating in the   consumer-directed service option under Section 531.051, Government   Code.          (b)  The guidelines established under Subsection (a) shall   include a requirement that the setting and services provided by the   day habilitation services provider meet the federal requirements   established under 42 C.F.R. Sections 441.301(c)(4) and 441.530(a).          Sec. 161.403.  DUTIES OF MEDICAID WAIVER PROGRAM PROVIDER.   (a)  A Medicaid waiver program provider shall make a good faith   effort to provide employment services or day habilitation services   to a Medicaid waiver participant who wishes to participate in   employment services or day habilitation.          (b)  A Medicaid waiver program provider may not contract with   a day habilitation services provider who provides day habilitation   services to a Medicaid waiver participant as part of the Medicaid   waiver program unless the provider is registered with the   commission under Section 161.402.          (c)  A Medicaid waiver program provider shall develop and   implement a procedure by which a Medicaid waiver participant may   pool Medicaid funds dedicated for day services with one or more   other participants to pay for access to day services as a group.          (d)  The commission may impose an administrative penalty   against a Medicaid waiver program provider who violates this   section.          Sec. 161.404.  DUTY OF SERVICE PLANNING TEAM.  A Medicaid   waiver participant's service planning team shall inform the   participant that employment services or day habilitation services   are optional and the participant can choose to participate or not to   participate in employment services or day habilitation services.          Sec. 161.405.  CERTAIN LOCATIONS FOR DAY HABILITATION   SERVICES PROHIBITED.  A day habilitation services provider may not   provide services at the same location as:                (1)  a sheltered workshop; or                (2)  an employment setting in which participants are   paid less than minimum wage.          Sec. 161.406.  CERTAIN DAY HABILITATION SERVICES PROVIDERS   PROHIBITED.  An employer of record of a Medicaid waiver participant   may not provide day habilitation services to the participant.          SECTION 2.  Not later than December 1, 2017, the Health and   Human Services Commission shall adopt rules required by Section   161.402, Human Resources Code, as added by this Act.          SECTION 3.  This Act takes effect September 1, 2017.