Section 550.1404 - License Revocation(a) HHSC may revoke a center's license for:(1) a violation of 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 a center or an employee of a center that HHSC determines significantly affects the health and safety of a minor served at a 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 Texas or another state of any person required by this chapter to undergo a background and criminal history check;(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) license revocation, suspension, or other disciplinary action taken in Texas or another state against the license holder or any person listed in the application;(7) criteria described in Chapter 560 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 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, facts, or references;(10) a license holder or applicant who knowingly:(A) submits false or intentionally misleading statements to HHSC 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 committing fraud; or(12) a person listed on the application failing to pay the following fees, taxes, and assessments when due: (A) licensing fees as described in § 550.112 of this chapter (relating to Licensing Fees);(B) plan review fees as described in § 550.113 of this chapter (relating to Plan Review Fees); and(C) franchise taxes, if applicable.(b) HHSC may revoke a license simultaneously with any other enforcement action available to HHSC.(c) HHSC notifies the license holder by personal service, facsimile transmission, registered or certified mail of its intent to revoke the license, including the facts or conduct alleged to warrant the revocation, and sends a copy to the center. The license holder has an opportunity to show compliance with all requirements of the law to retain the license, as provided in § 550.1407 of this subchapter (relating to Opportunity to Show Compliance). If the license holder requests an opportunity to show compliance, HHSC gives the license holder a written affirmation or reversal of the proposed action.(d) HHSC notifies a license holder by personal service, facsimile transmission, or by registered or certified mail of its revocation of the center license and sends a copy to the center. The license holder has 20 days after receipt of the notice to request a hearing in accordance with the HHSC formal hearing procedures in 1 Texas Administrative Code Chapter 357, Subchapter I (relating to Hearings Under the Administrative Procedure Act), and HHSC formal hearing procedures in Chapter 110 of this title (relating to Hearings Under the Administrative Procedure Act). The revocation takes effect when the deadline for appeal of the revocation expires unless the license holder appeals the revocation.(e) If a license holder appeals, the license remains valid until all appeals are final, unless the license expires without a timely application for renewal submitted to HHSC. The license holder must continue to submit a renewal application in accordance with § 550.106 of this chapter (relating to Renewal Application Procedures and Issuance) until the action to revoke the license is completed. However, HHSC does not renew the license until it determines the reason for the proposed action no longer exists.(f) If a license holder appeals, the enforcement action takes effect when all appeals are final and the proposed enforcement action is upheld. Upon revocation, the license must be returned to HHSC. If the license holder wins the appeal, HHSC does not take the proposed action.26 Tex. Admin. Code § 550.1404
The provisions of this §550.1404 adopted to be effective September 1, 2014, 39 TexReg 6569; Transferred from Title 40, Chapter 15 by Texas Register, Volume 44, Number 15, April 12, 2019, TexReg 1875, eff. 5/1/2019; Amended by Texas Register, Volume 49, Number 39, September 27, 2024, TexReg 7933, eff. 10/16/2024