(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 this title
(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 §15.112 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 §15.101(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 this title
(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 this title.
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Source Note: The provisions of this §550.115 adopted to be effective September 1, 2014, 39 TexReg 6569; transferred effective May 1, 2019, as published in the Texas Register April 12, 2019, 44 TexReg 1875 |