(a) The executive commissioner by rule shall:
(1) define medical, financial, and other criteria for eligibility to receive services; and
(2) establish a system for verifying eligibility information submitted by an applicant for or recipient of services.
(b) In defining medical and financial criteria for eligibility under Subsection (a), the executive commissioner may not:
(1) establish an exclusive list of coverable medical conditions; or
(2) consider as a source of support to provide services assets legally owned or available to a child’s household.

(c) A child is not eligible to receive rehabilitation services unless:
(1) the child is a resident of this state;
(2) at least one physician or dentist certifies to the department that the physician or dentist has examined the child and finds the child to be a child with special health care needs whose disability meets the medical criteria established by the executive commissioner;
(3) the department determines that the persons who have any legal obligation to provide services for the child are unable to pay for the entire cost of the services;
(4) the child has a family income that is less than or equal to 200 percent of the federal poverty level; and
(5) the child meets all other eligibility criteria established by department rules.
(d) A child is not eligible to receive services, other than rehabilitation services, unless the child:
(1) is a resident of this state; and
(2) meets all other eligibility criteria established by department rules.
(e) Notwithstanding Subsection (c)(4), a child with special health care needs who has a family income that is greater than 200 percent of the federal poverty level and who meets all other eligibility criteria established by this section and by department rules is eligible for services if the department determines that the child’s family is or will be responsible for medical expenses that are equal to or greater than the amount by which the family’s income exceeds 200 percent of the federal poverty level.