| (a) The State Ombudsman may designate a local ombudsman
entity to perform the functions of the Ombudsman Program in an ombudsman
service area.
(b) The State Ombudsman does not designate a local
ombudsman entity if the host agency or a governmental entity or nonprofit
organization contracting with the host agency, as described in §88.2(16)(B)
of this chapter (relating to Definitions):
(1) has an organizational conflict of interest described
in §88.2(25)(A) - (C) of this chapter; or
(2) has an organizational conflict of interest described
in §88.2(25)(D) - (L) of this chapter that has not been removed
or remedied as approved by the State Ombudsman in accordance with §88.403(d)
of this chapter (relating to Conflicts of Interest Regarding a Host
Agency).
(c) The State Ombudsman may remove the designation
of a local ombudsman entity if:
(1) the host agency or local ombudsman entity has policies,
procedures, or practices that the State Ombudsman determines to be
in conflict with the laws, rules, policies, or procedures governing
the Ombudsman Program; or
(2) the host agency or local ombudsman entity fails
to comply with the requirements of this chapter including:
(A) not removing or remedying an organizational or
individual conflict of interest as described in §88.303 of this
chapter (relating to Individual Conflicts of Interest Regarding a
Local Ombudsman Entity) and §88.403 of this chapter;
(B) not submitting a plan of correction required by §88.105(f)
of this subchapter (relating to Fiscal Management and Monitoring of
a Local Ombudsman Entity) or a modified plan of correction required
by §88.105(g) of this subchapter; or
(C) not obtaining approval by the Office of a plan
of correction required by §88.105(f) of this subchapter or a
modified plan of correction required by §88.105(g) of this subchapter.
(d) If the State Ombudsman removes the designation
of a local ombudsman entity, the Office notifies the local ombudsman
entity and host agency, in writing, of the decision to remove the
designation.
(e) A host agency may request reconsideration of the
State Ombudsman’s decision to remove the designation of the
local ombudsman entity. To request a reconsideration of the decision,
the host agency must, within 10 days after receiving the notification
of removal of the designation, submit a written request for reconsideration
and additional information supporting the request to the State Ombudsman.
(f) If the removal of designation of a local ombudsman
entity results in termination of the contract between HHSC and the
host agency, the host agency may appeal the termination in accordance
with 40 TAC §81.15 (relating to Appeal Procedures for Area Agency
on Aging Contractors).
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