Current through Reg. 49, No. 38; September 20, 2024
(a) DADS
may deny an application for an initial center license or for renewal of a
license for:
(1) a violation of the THSC
Chapter 248A or a standard in this chapter committed by the license holder,
applicant, or a person listed on the application;
(2) an intentional or negligent act by the
center or an employee of the center that DADS determines significantly affects
the health or safety of a minor served at the center;
(3) use of drugs or intoxicating liquors to
an extent that affects the license holder's or applicant's professional
competence;
(4) a felony
conviction, including a finding or verdict of guilty, an admission of guilt, or
a plea of nolo contendere, in this state or in any other state of any person
required by this chapter to undergo a background and criminal
history;
(5) fraudulent acts,
including acts relating to Medicaid fraud and obtaining or attempting to obtain
a license by fraud or deception, committed by any person listed on the
application;
(6) a license
revocation, suspension, or other disciplinary action taken in Texas or another
state against the license holder or any person listed on the
application;
(7) criteria described
in Chapter 99 of Title 40 (relating to Denial or Refusal of License) that
applies to any person required by this chapter to undergo a background and
criminal history check;
(8) aiding,
abetting, or permitting a substantial violation described in paragraph (1) of
this subsection about which a person listed on the application had or should
have had knowledge;
(9) a license
holder or applicant's failure to provide the required information as requested
on the application or in follow-up to the review of the application;
(10) a license holder or applicant who
knowingly:
(A) submits false or intentionally
misleading statements to DADS on an application;
(B) uses subterfuge or other evasive means of
filing an application;
(C) engages
in subterfuge or other evasive means of filing an application on behalf of
another who is unqualified for licensure; or
(D) conceals a material fact on an
application;
(11) a
person listed on the application failing to pay the following fees, taxes, and
assessments when due:
(A) licensing fees as
described in § 550.112 of this subchapter (relating to Licensing
Fees);
(B) franchise taxes, if
applicable; and
(C) federal taxes,
as applicable; or
(12) a
person listed on the application having a history of any of the following
actions during the five-year period preceding the date of the application:
(A) operation of a facility in Texas or
another state or jurisdiction that has been decertified or had its contract
canceled under the Medicare or Medicaid program;
(B) federal or state Medicare or Medicaid
sanctions or penalties;
(C) an
unsatisfied final court judgment;
(D) eviction in Texas or another state or
jurisdiction involving any property or space used as a center; or
(E) suspension in Texas or another state or
jurisdiction of a license to operate a health facility, long-term care
facility, assisted living facility, or a similar facility, or a
center.
(b)
DADS:
(1) denies a license to an applicant to
operate a center if an applicant has on the date of the application:
(A) a debarment or exclusion from the
Medicare or Medicaid programs by the federal government or a state;
or
(B) a court injunction
prohibiting an applicant or manager from operating a center.
(2) may deny a license to an
applicant to operate a new center if an applicant has a history of any of the
following actions at any time preceding the date of the application:
(A) revocation of a license to operate a
health care facility, long-term care facility, assisted living facility or
similar facility, or center in any state;
(B) surrender of a license in lieu of
revocation or while a revocation hearing is pending;
(C) expiration of a license while a
revocation action is pending and the license is surrendered without an appeal
of the revocation or an appeal is withdrawn; or
(D) probation period placed on a license to
operate a center.
(c) DADS may consider exculpatory information
provided by any person described in § 550.101(f) of this subchapter
(relating to Criteria and Eligibility for a License) and grant a license if
DADS finds that person able to comply with THSC Chapter 248A and this
chapter.
(d) In determining the
denial of a license, DADS considers all final actions taken against an
applicant or license holder whether issued by DADS or another state or federal
agency. An action is final when administrative and judicial remedies are
exhausted. All actions, whether pending or final, must be disclosed.
(e) If an applicant owns multiple centers,
DADS examines the overall record of compliance in all of the centers or other
facilities types and agencies. An overall record poor enough to deny issuance
of a new license will not preclude the renewal of licenses of individual
centers with satisfactory records.
(f) If DADS denies an application for a
license or refuses to issue a renewal of a license, an applicant or license
holder may request a hearing by complying with the Texas Health and Human
Services Commission's rules for hearings found in 1 TAC Chapter 357, Subchapter
I (relating to Hearings Under the Administrative Procedure Act) and DADS rules
for hearings found in Chapter 91 of Title 40 (relating to Hearings Under the
Administrative Procedure Act). An administrative hearing is conducted in
accordance with Texas Government Code, Chapter 2001; 1 TAC Chapter 357,
Subchapter I; and Chapter 91 of Title 40.
