(a) DADS may deny an initial license or refuse to renew
a license if any person described in §98.11(e) of this subchapter
(relating to Criteria for Licensing):
(1) is subject to denial or refusal as described in
Chapter 99 of this title (relating to Denial or Refusal of License)
during the time frames described in that chapter;
(2) substantially fails to comply with the requirements
described in §§98.42, 98.43, 98.61, and 98.62 of this chapter
(relating to Safety; Sanitation; General Requirements; and Program
Requirements), including:
(A) noncompliance that poses a serious threat to health
and safety; or
(B) a failure to maintain compliance on a continuous
basis;
(3) aids, abets, or permits a substantial violation
described in paragraph (2) of this subsection about which the person
had or should have had knowledge;
(4) fails to provide the required information, facts,
or references;
(5) knowingly provides the following false or fraudulent
information:
(A) submits false or intentionally misleading statements
to DADS;
(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; or
(E) is responsible for fraud;
(6) fails to pay the following fees, taxes, and assessments
when due:
(A) licensing fees as described in §98.21 of this
subchapter (relating to License Fees); and
(B) franchise taxes, if applicable;
(7) has a history of any of the following actions during
the five-year period preceding the date of 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 Medicare or Medicaid sanctions
or penalties;
(C) unsatisfied final judgments;
(D) eviction involving any property or space used
as a facility in any state;
(E) suspension of a license to operate a health facility,
long-term care facility, assisted living facility, or a similar facility
in any state.
(b) Concerning subsection (a)(7) of this section, DADS
may consider exculpatory information provided by any person described
in §98.11(e) of this subchapter and grant a license if DADS finds
that person able to comply with the rules in this chapter.
(c) DADS does not issue a license to an applicant to
operate a new facility if the applicant has a history of any of the
following actions during the five-year period preceding the date of
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 any person described
in §98.11(e) of this subchapter 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 DADS denies a license or refuses to issue a
renewal of a license, the applicant or license holder may request
a hearing by following the Health and Human Services Commission's
rules in 1 TAC Chapter 357, Subchapter I (relating to Hearings Under
the Administrative Procedure Act). An administrative hearing is conducted
in accordance with Texas Government Code, Chapter 2001, and 1 TAC
Chapter 357, Subchapter I.
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Source Note: The provisions of this §559.19 adopted to be effective January 1, 1995, 19 TexReg 9531; amended to be effective May 1, 1999, 24 TexReg 3100; amended to be effective April 1, 2007, 32 TexReg 1749; amended to be effective September 1, 2009, 34 TexReg 5141; amended to be effective September 1, 2010, 35 TexReg 6355; amended to be effective January 18, 2012, 37 TexReg 127; transferred effective January 15, 2021, as published in the Texas Register December 18, 2020, 45 TexReg 9249 |