Opinion No.
Background
- HHSC sought a formal opinion on its authority to adopt a rule defining “affiliate” for 32.0248(h).
- Section 32.0248(a) establishes a five-year demonstration project within the Medicaid program to expand preventive health and family planning services for women.
- Section 32.0248(h) restricts HHSC from contracting with affiliates of entities that perform or promote abortions.
- The request letter did not indicate a formal proposed rule under the Texas Administrative Procedure Act.
- The Attorney General concluded HHSC has constitutional latitude to define terms by rule to implement the program, provided the definition aligns with statutory authority and does not add burdens beyond the statute.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Authority to define affiliate by rule | HHSC has rulemaking authority under chapter 32 to implement the medical assistance program. | Rules may be adopted only if authorized by statute and not impose burdens beyond the statute; must align with 32.0248(h). | HHSC may define affiliate by rule consistent with 32.0248(h) and without adding burdens. |
Key Cases Cited
- SWEPILP v. R.R. Comm'n, 314 S.W.3d 253 (Tex. App.-Austin 2010) (agency powers limited to statutory grant and necessary to carry out express responsibilities)
- Pub. Util. Comm'n v. City Pub, Serv. Bd., 53 S.W.3d 310 (Tex. 2001) (agency rulemaking must be in harmony with the statutory objectives)
- Pruett v. Harris Cnty.Bail Bond Bd., 249 S.W.3d 447 (Tex. 2008) (rules must be authorized by and consistent with statutory authority)
- Cummins v. TravisCnty. Water Control Improvement Dist. No. 17, 175 S.W.3d 34 (Tex. App.-Austin 2005) (rules cannot impose burdens beyond statutory provisions)
- Gerst v. Oak Cliff Savs. Loan Ass'n, 432 S.W.2d 702 (Tex. 1968) (construction of agency rules must be in harmony with the act)
- Tex. Bankers Ass'n v. Ass'n of Cmty. Orgs. for ReformNow (ACORN), 303 S.W.3d 404 (Tex. App.-Austin 2010) (reasonableness of agency construction considered if not contradicting statute)
- Tarrant Appraisal Dist. v. Moore, 845 S.W.2d 820 (Tex. 1993) (agency actions must comport with statutory language)