1. (a) To receive foster care assistance payments, private child care facilities must be approved by the Texas Department of Protective and Regulatory Services (TDPRS) for participation.
2. (b) TDPRS's foster care rates will be determined by the service level that the child needs, subject to adjustments based on the extent to which other services provided by outside parties meet the child's needs or on other factors consistent with the child's needs. In the rate structure, rates are based on analysis of cost reports and other pertinent financial and statistical information including statistics published by the United States Department of Agriculture (USDA) on the expenditures on a child by families. TDPRS's determination of a child's service level is based upon the child's characteristics, as described in TDPRS's application form, and the descriptions of service levels.
3. (c) Foster care assistance payments are intended to cover the child's basic needs, not the needs of the provider, unless meeting provider needs is necessary for meeting the child's needs. The rates for foster care payments are reviewed by the Texas Board of Protective and Regulatory Services annually in an open meeting, after considering pertinent financial and statistical information, TDPRS rate recommendations, other staff recommendations, the cost-finding methodology, public testimony, agency service demands, and the availability of appropriated revenue. Costs included in the rates are specified in §§700.1801-700.1806 of this title (relating to Cost Reporting, Cost-finding Analysis, Definition of Allowable and Unallowable Costs, Allowable Costs, Unallowable Costs, and Cost Not Included in Recommended Payment Rates).
4. (d) To participate in TDPRS's foster care program, all TDPRS and non-TDPRS families and private, nonprofit and for-profit facilities, group homes, and child-placing agencies must complete a contract or agreement with TDPRS. The contract or agreement must be signed by the foster care provider and TDPRS and will be in effect for a designated period stated in writing in the contract or agreement. At the expiration of this period, the contract will continue according to its then-current terms until either party terminates the contract, or until TDPRS notifies the provider of a change, at which point, the contract ends, and a new contract begins if the provider agrees to the new terms. This agreement will be expressed in writing.
5. (e) Upon TDPRS's request, these families, facilities, group homes, and child-placing agencies must accept a TDPRS application form as complete and sufficient application for a child's placement. Facilities, group homes, and child-placing agencies that receive payment from TDPRS either directly or indirectly must submit a completed cost report. These cost reports are used to set foster care rates for all service levels and emergency shelters. Reimbursement for a facility, group home, or child-placing agency serving all service levels is contingent on the completion and submittal of the cost report to TDPRS. Failure to complete and submit a cost report is grounds for placing a hold on payments to providers or for terminating the contract or agreement.
6. (f) TDPRS may exempt a family, facility, group home, or child-placing agency from the cost report requirement if extenuating circumstances make it impossible for the facility, group home, or child placing agency to comply. A letter stating the reason(s) for requesting an exemption from completing the cost report must be submitted in writing to TDPRS. TDPRS will, in its sole discretion, make a determination about whether to grant the exemption.

Source Note:The provisions of this §700.328 adopted to be effective October 31, 1984, 9 TexReg 5431; amended to be effective June 15, 1988, 13 TexReg 2219; transferred effective September 1, 1992, as published in the Texas Register September 11, 1992, 17 TexReg 6279; amended to be effective January 1, 1994, 18 TexReg 8975; amended to be effective March 1, 2004, 29 TexReg 1416.