(a) HHSC may decide not to offer a standard contract
to a contractor:
(1) for any reason for which HHSC may deny a provisional
contract application, as described in §49.207 of this chapter
(relating to Provisional Contract Application Denial);
(2) for any reason for which HHSC may terminate a contract,
as described in §49.534 of this subchapter (relating to Termination
of Contract by HHSC); or
(3) if the contractor has a provisional contract for
the HCS or TxHmL Program and HHSC imposed a vendor hold on the contractor
in accordance with §9.183 (relating to Program Provider Compliance
and Corrective Action) or §9.587 of this title (relating to Program
Provider Compliance and Corrective Action) during the term of the
provisional contract.
(b) If HHSC decides not to offer a contractor a standard
contract when its contract expires:
(1) the contractor must:
(A) cooperate fully with HHSC, the LIDDA if applicable,
and other contractors to transfer individuals receiving services from
the contractor; and
(B) submit documentation or take other action as directed
by HHSC; and
(2) HHSC:
(A) notifies individuals receiving services from the
contractor or LARs that:
(i) the contractor's contract is ending and HHSC has
placed or will place the contractor's payments on a vendor hold; and
(ii) the individuals or LARs may choose to receive
services under a contract listed on the choice list, subject to program-specific
requirements;
(B) removes the expiring contract from the appropriate
choice list; and
(C) notifies:
(i) the contractor of the decision, in writing, and
includes in the notification the application denial period set in
accordance with §49.702(a) of this chapter (relating to Application
Denial Period); and
(ii) any controlling person of the contractor, in writing,
of the application denial period set in accordance with §49.702(a)
of this chapter.
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