| (a) Conflict of rules. Notwithstanding other department rules
regarding termination, this section prevails.
(b) Voluntary termination of a contract. For a period of at
least 12 months after a voluntary termination of a contract, the Texas Department
of Human Services (DHS) will not recontract with the home and community support
services agency (HCSSA) for Community Based Alternatives (CBA) services in
the region covered by the terminated contract. At the end of the 12-month
period, the HCSSA may apply for a provisional contract.
(c) Involuntary termination of a contract.
(1) For a period of at least 24 months after a contract was
involuntarily terminated, DHS will not enter into a CBA contract with:
(A) the HCSSA anywhere in the state; or
(B) any HCSSA with a person with a controlling interest, who
also had a controlling interest in the HCSSA which was involuntarily terminated.
(2) If a HCSSA contract is involuntarily terminated for failure
to deliver community care services for six consecutive months, the HCSSA may
not recontract with DHS to provide services in the region covered by its terminated
contract for six months after the involuntary termination.
(3) The involuntary termination of a CBA contract in one region
will not automatically result in the involuntary termination of CBA contracts
held by the same HCSSA in other regions. DHS will review the HCSSA's contracts
in other programs/regions to determine if there is cause for further terminations.
(4) If a HCSSA contract is involuntarily terminated, the HCSSA
must demonstrate to DHS that the conditions which caused the involuntary termination
have been resolved prior to entering into another contract.
(d) Reasons for termination. In addition to the reasons specified
in §49.19(b)(3) of this title (relating to Sanctions), DHS may terminate
the existing contract of a HCSSA if, in the preceding 12 months, the HCSSA
had any Level II administrative penalties imposed by departmental order.
(e) Formal reviews. DHS will conduct a formal review of each
HCSSA contract at least once every two years.
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