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(a)The Texas Department of Human Services (DHS), after providing notice and opportunity for a hearing to the applicant or license holder, may deny an initial license or refuse to renew a license if an applicant, license holder, controlling person, or any person required to submit background and qualification information: (1)violates Health and Safety Code, Chapter 247; a section, standard or order adopted under Chapter 247; or a license issued under Chapter 247 in either a repeated or substantial manner; (2)commits an act described in §92.551(2) - (5) of this chapter (relating to When is an administrative penalty assessed?); (3)aids, abets, or permits a substantial violation described in paragraphs (1) - (2) of this subsection about which the applicant, manager, or affiliate had or should have had knowledge; (4)fails to provide the required information, facts, or references; (5)provides the following false or fraudulent information: (A)knowingly submits false or intentionally misleading statements to DHS; (B)uses subterfuge or other evasive means of filing; (C)engages in subterfuge or other evasive means of filing on behalf of another who is unqualified for licensure; (D)knowingly conceals a material fact related to licensure; or (E)is responsible for fraud; (6)fails to pay the following fees, taxes, and assessments when due: (A)licensing fees as described in §92.20 of this chapter (relating to License Fees); or (B)franchise taxes, if applicable; (7)discloses any of the following actions within the two-year period preceding the application: (A)operation of a facility that has been decertified or had its contract canceled under the Medicare or Medicaid program in any state; (B)federal or state long-term care facility, assisted living facility, or similar facility sanctions or penalties, including but not limited to, monetary penalties, involuntary downgrading of the status of a facility license, proposals to decertify, directed plans of correction, or the denial of payment for new Medicaid admissions; (C)state or federal criminal convictions for any offense that provides a penalty of incarceration; (D)unsatisfied final judgments, excluding judgments wholly unrelated to the provision of care rendered in long-term care facilities; (E)eviction involving any property or space used as a facility in any state; or (F)suspension of a license to operate a health care facility, long-term care facility, assisted living facility, or a similar facility in any state; and (8)violates Health and Safety Code, §247.021. (b)Concerning subsection (a)(7) of this section, DHS may consider exculpatory information provided by the applicant, manager, or affiliate and grant a license under subsection (a)(7) of this section if DHS finds the applicant, license holder, manager, or affiliate able to comply with the rules of this chapter. (c)DHS will not issue a license to an applicant to operate a new facility if the applicant discloses any of the following actions during the two-year period preceding the application: (1)revocation of a license to operate a health care facility, long-term care facility, assisted living facility, or similar facility in any state; (2)debarment or exclusion from the Medicare or Medicaid programs by the federal government or a state; or (3)a court injunction prohibiting the applicant or manager from operating a facility. (d)Only final actions are considered for purposes of subsections (a)(7) and (c) of this section. An action is final when routine administrative and judicial remedies are exhausted. All actions, whether pending or final, must be disclosed. (e)If an applicant owns multiple facilities, the overall record of compliance in all of the facilities will be examined. An overall record poor enough to deny issuance of a new license will not preclude the renewal of licenses of individual facilities with satisfactory records. (f)If DHS denies a license or refuses to issue a renewal of a license, the applicant or licensee may request an administrative hearing. Administrative hearings are held under the provisions of the Administrative Procedures Act (APA), Title 10 of the Texas Government Code, §§2001.051 et seq., and DHS's formal hearing rules under Chapter 79 of this title (relating to Legal Services).
This agency hereby certifies that the adoption has been reviewed
by legal counsel and found to be a valid exercise of the agency's legal authority.
Filed
with the Office of the Secretary of State on April 28, 2003
TRD-200302652 Paul Leche
General Counsel, Legal Services
Texas Department of Human Services
Effective date: September 1, 2003
Proposal
publication date: January 24, 2003
For further information, please call: (512) 438-3734
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