TITLE 1. ADMINISTRATION

PART 15. TEXAS HEALTH AND HUMAN SERVICES COMMISSION

CHAPTER 394. MEDIATION AND NEGOTIATED RULEMAKING

The Executive Commissioner of the Texas Health and Human Services Commission (HHSC) proposes the repeal of Chapter 394 consisting of §394.1, concerning Definitions; §394.2, concerning Policy; §394.3, concerning Circumstances in Which Mediation is Offered; §394.4, concerning Dispute Resolution Administrator; §394.5, concerning Dispute Resolution Coordinators; §394.6, concerning Mediation Process; and §394.7, concerning Negotiated Rulemaking.

BACKGROUND AND PURPOSE

The purpose of the proposal is to repeal outdated rules concerning alternative dispute resolution and negotiated rulemaking. The rules were last modified in 2006. Following repeal, HHSC will maintain policies for negotiated rulemaking and alternative dispute resolution as required by Texas Government Code §531.0161.

SECTION-BY-SECTION SUMMARY

The proposed repeal of §§394.1 - 394.7 removes rules that are outdated and do not reflect current policy.

FISCAL NOTE

Trey Wood, Chief Financial Officer, has determined that for each year of the first five years that the rule repeals will be in effect, enforcing or administering the rule repeals do not have foreseeable implications relating to costs or revenues of state or local governments.

GOVERNMENT GROWTH IMPACT STATEMENT

HHSC has determined that during the first five years that the rule repeals will be in effect:

(1) the proposed repeals will not create or eliminate a government program;

(2) implementation of the proposed repeals will not affect the number of HHSC employee positions;

(3) implementation of the proposed repeals will result in no assumed change in future legislative appropriations;

(4) the proposed repeals will not affect fees paid to HHSC;

(5) the proposed repeals will not create a new regulation;

(6) the proposed repeals will repeal existing regulations;

(7) the proposed repeals will not change the number of individuals subject to the rules; and

(8) the proposed repeals will not affect the state's economy.

SMALL BUSINESS, MICRO-BUSINESS, AND RURAL COMMUNITY IMPACT ANALYSIS

Trey Wood has also determined that there will be no adverse economic effect on small businesses, micro-businesses, or rural communities because the rules will be removed and do not require any change in business processes or additional costs.

LOCAL EMPLOYMENT IMPACT

The proposed repeals will not affect a local economy.

COSTS TO REGULATED PERSONS

Texas Government Code §2001.0045 does not apply to the repeals because the repeals do not impose a cost on regulated persons.

PUBLIC BENEFIT AND COSTS

Libby Elliott, Deputy Executive Commissioner for the Office of Policy and Rules, has determined that for each year of the first five years the repeals are in effect, the public benefit will be removal of unnecessary rules from the Texas Administrative Code.

Trey Wood has also determined that for the first five years the repeals are in effect, there are no anticipated economic costs to persons who are required to comply with the proposed repeals because the rules will be removed.

TAKINGS IMPACT ASSESSMENT

HHSC has determined that the proposal does not restrict or limit an owner's right to the owner's property that would otherwise exist in the absence of government action and, therefore, does not constitute a taking under Texas Government Code §2007.043.

PUBLIC COMMENT

Written comments on the proposal may be submitted to Rules Coordination Office, P.O. Box 13247, Mail Code 4102, Austin, Texas 78711-3247, or street address 4601 West Guadalupe Street, Austin, Texas 78751; or emailed to HHSRulesCoordinationOffice@hhs.texas.gov.

To be considered, comments must be submitted no later than 21 days after the date of this issue of the Texas Register . Comments must be (1) postmarked or shipped before the last day of the comment period; (2) hand-delivered before 5:00 p.m. on the last working day of the comment period; or (3) or emailed before midnight on the last day of the comment period. If last day to submit comments falls on a holiday, comments must be postmarked, shipped, or emailed before midnight on the following business day to be accepted. When emailing comments, please indicate "Comments on Proposed Rule 24R056" in the subject line.

STATUTORY AUTHORITY

The repeals are authorized by Texas Government Code §524.0151, which requires the Executive Commissioner of HHSC to adopt rules for the operation and provision of services by the health and human services agencies.

The repeals implement Texas Government Code §524.0151.

§ 394.1. Definitions.

§ 394.2. Policy.

§ 394.3. Circumstances in Which Mediation is Offered.

§ 394.4. Dispute Resolution Administrator.

§ 394.5. Dispute Resolution Coordinators.

§ 394.6. Mediation Process.

§ 394.7. Negotiated Rulemaking.

The agency certifies that legal counsel has reviewed the proposal and found it to be within the state agency's legal authority to adopt.

Filed with the Office of the Secretary of State on May 6, 2025.

TRD-202501531

Karen Ray

Chief Counsel

Texas Health and Human Services Commission

Earliest possible date of adoption: June 22, 2025

For further information, please call: (512) 221-9021