1. (a) An employer must, for at least five years after services are delivered through the CDS option, maintain documentation required by:

   1. (1) this chapter;
   2. (2) the individual's program; or
   3. (3) government agencies with regulatory authority over employer and employer-agent responsibilities.

2. (b) An employer must retain documentation of:

   1. (1) services delivered to an individual through the CDS option;
   2. (2) payments by the CDSA to service providers;
   3. (3) service provider qualifications;
   4. (4) employer responsibilities;
   5. (5) employer-agent responsibilities; and
   6. (6) contracts, service agreements, and required supporting documentation.

3. (c) An employer must maintain all documentation:

   1. (1) until all litigation or claims are resolved, if any litigation or claim involving these records is ongoing, regardless of the five-year period; and
   2. (2) in accordance with the regulating government agency's requirement for specific documentation when the record retention requirement is more than five years.
4. (d) An employer must allow representatives of DADS and other appropriate government agencies to examine and copy records during normal business hours and days.
5. (e) DADS may take adverse action if the employer fails to maintain records as required or to provide records upon request.
6. (f) An employer must ensure confidentiality and security of all records.
7. (g) If records are discarded, the employer must ensure confidentiality and security of the information.

Source Note:The provisions of this §264.243 adopted to be effective January 1, 2007, 31 TexReg 10352; transferred effective September 1, 2024, as published in the July 12, 2024, issue of the Texas Register, 49 TexReg 5177.