| (a) DARS or HHSC may remove contractual rights from
an individual, a corporation, a partnership, or a division of a contractor
or legal entity for causes including the following:
(1) being found guilty, pleading guilty, pleading nolo
contendere, or receiving a deferred adjudication in a criminal court
relating to:
(A) obtaining, attempting to obtain, or performing
a public or private contractor subcontract;
(B) engaging in embezzlement, theft, forgery, bribery,
falsification or destruction of records, fraud, receipt of stolen
property, or any other offense indicating moral turpitude or a lack
of business integrity or honesty;
(C) being involved with dangerous drugs, controlled
substances, or other drug-related offense;
(D) violating federal antitrust statutes;
(E) committing an offense involving physical or sexual
abuse or neglect;
(2) being debarred from contracting by any unit of
the federal government or any unit of a state government;
(3) violating DARS or HHSC contract provisions including
failing to perform according to the terms, conditions, and specifications
or within the time limit(s) specified in a DARS or HHSC contract,
including the following:
(A) failing to abide by applicable federal and state
statutes, such as those regarding persons with disabilities and those
regarding civil rights;
(B) having a record of failure to perform or of unsatisfactory
performance according to the terms of one or more contracts or subcontracts,
if that failure or unsatisfactory performance has occurred within
five years preceding the determination to debar. This subparagraph
applies only for actions occurring after the effective date of these
rules. Failure to perform and unsatisfactory performance includes
the following:
(i) failing to correct contract performance deficiencies
after receiving written notice about them from DARS, HHSC, or their
authorized agents;
(ii) failing to repay or make and follow through with
arrangements satisfactory to DARS or HHSC to repay identified overpayments
or other erroneous payments, or assessed liquidated damages or penalties;
(iii) failing to meet standards that are required for
licensure or certification, or that are required by state or federal
law, DARS or HHSC rules or standards incorporated in contracts concerning
DARS contracts;
(iv) failing to execute contract amendments required
by DARS or HHSC;
(v) billing for services or merchandise not provided
to the consumer;
(vi) submitting cost reports containing costs not associated
with or not covered by the contract or DARS rules and instructions.
Intent to increase individual or statewide rates or fees by submitting
unallowable costs must be shown for a single cost report, but intent
may be inferred when a pattern of submitting cost reports with unallowable
costs is shown;
(vii) submitting a false report or misrepresentation
which, if used, may increase individual or statewide rates or fees;
(viii) charging consumer or patient fees contrary to
DARS or HHSC rules or policy;
(ix) failing to notify and reimburse DARS or its agents
for services DARS paid for when the contractor received reimbursement
from a liable third party;
(x) failing to disclose or make available, upon demand,
to DARS or its representatives (including appropriate federal and
state agencies) records the contractor is required to maintain;
(xi) failing to provide and maintain services within
standards required by statute, regulation, or contract; or
(xii) violating the Human Resources Code provisions
applicable to the contract or any rule or regulation issued under
the Code;
(4) submitting an offer, bid, proposal, or application
that contains a false statement or misrepresentation or omits pertinent
facts or documents that are material to the procurement;
(5) engaging in abusive or neglectful practice that
results in or could result in death or injury to the consumer served
by the contractor; or
(6) knowingly and willfully using a debarred person
or legal entity as an employee, independent contractor, or agent to
perform a contract with DARS or HHSC.
(b) In accordance with terms specified by DARS or HHSC,
individuals, parts of entities, and entities that have been debarred
may not:
(1) receive a contract;
(2) be allowed to retain a contract that has been awarded
before debarment;
(3) bid or otherwise make offers to receive a contract
or subcontract;
(4) participate in DARS programs that do not require
the contractor to sign a contract or agreement;
(5) either personally or through a clinic, group, corporation,
or other association, bill to or receive payment from DARS for any
services or supplies provided by the debarred entity on or after the
effective date of the debarment. Additionally, DARS will not pay for
any services ordered, prescribed, or delivered by the debarred entity
for DARS recipients after the date of debarment. No costs associated
with a debarred entity, including the salary, fringe, overhead, payments
to, or any other costs associated with an employee, owner, officer,
director, board member, independent contractor, manager, or agent
who was debarred may be included in a DARS cost report or any other
document that will be used to determine an individual payment rate,
a statewide payment rate, or a fee; or
(6) provide goods or services to DARS consumers either
directly or indirectly while working for a DARS contractor.
(c) Debarment may be applied against an individual,
a corporation, a partnership, a division of a contractor, or an entire
legal entity, or a specified part of a legal entity.
(d) Even a single occurrence of a violation may result
in debarment or suspension if it is severe. Other adverse actions
may be taken if the violation is isolated or less severe.
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