| (a) HHSC may place a contractor on a referral hold
if:
(1) HHSC has proposed to terminate the contract;
(2) HHSC determines the contractor has not complied
with the contract, including a determination of non-compliance described
in §49.411(e) of this chapter (relating to Contract and Fiscal
Monitoring) or §49.413(e) of this chapter (relating to Investigation);
(3) the contractor has not submitted or has not complied
with an immediate protection plan as described in §49.511(d)
of this subchapter (relating to Immediate Protection and Immediate
Protection Plan);
(4) the contractor has not submitted or has not complied
with a corrective action plan as described in §49.522(d) of this
division (relating to Corrective Action Plan); or
(5) the contractor's application packet:
(A) contained incorrect information; or
(B) contains information that has become incorrect
and the contractor has not notified HHSC in accordance with §49.302(i)
- (q) of this chapter (relating to General Requirements).
(b) If HHSC places a contractor on a referral hold
in accordance with subsection (a) of this section, HHSC notifies the
contractor of the referral hold in writing.
(c) A contractor may request that HHSC conduct an informal
review of a referral hold. The request must be in writing and received
by HHSC within 20 days after the date of the notice of the referral
hold from HHSC. The contractor must include in the written request:
(1) the reasons the contractor believes the referral
hold was improper;
(2) documentation to support the reasons; and
(3) a copy of the notice from HHSC of the referral
hold.
(d) HHSC releases a referral hold:
(1) imposed in accordance with subsection (a)(1) of
this section if:
(A) HHSC withdraws the proposed contract termination;
(B) the contractor appeals the proposed contract termination
and the final decision from the administrative hearing is favorable
to the contractor; or
(C) the contractor requests an informal review in accordance
with subsection (c) of this section and, as a result of the review,
HHSC determines that the referral hold was improper;
(2) imposed in accordance with subsection (a)(2) -
(5) of this section if:
(A) a period of time determined by HHSC has elapsed;
or
(B) the contractor requests an informal review in accordance
with subsection (c) of this section and, as a result of the review,
HHSC determines that the referral hold was improper.
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