7000, Voluntary Actions and Enforcement Actions
7100, Overview of Voluntary Actions and Enforcement Actions
Revision 24-1; Effective Feb. 20, 2024
Enforcement actions are actions HHSC recommends or imposes to ensure the safety of children in care at operations subject to regulation.
Enforcement actions may be voluntary or non-voluntary, and include the following:
Voluntary Enforcement Action | Non-Voluntary Corrective Actions | Non-Voluntary Monetary Actions | Non-Voluntary Adverse Actions | Non-Voluntary Judicial Actions |
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Enforcement actions are neither punitive in nature nor required to be taken in any certain order. HHSC recommends or imposes enforcement actions based on the seriousness of the situation and on the operation’s compliance history. HHSC does not have to recommend or impose a less serious action if HHSC determines that a more serious action is more appropriate.
Human Resources Code (HRC), Chapter 42, Subchapter D, Remedies (Sections 42.0705-42.079)
26 TAC Sections 745.8601, 745.8603 and 745.8607
7110 Circumstances That May Call for Enforcement Action
Revision 24-1; Effective Feb. 12, 2024
HHSC may recommend or impose an enforcement action under the circumstances listed in the table below.
Topic and Rule Reference | Circumstance |
---|---|
Abuse, neglect, or exploitation resulting in a single serious deficiency, 26 TAC Section 745.8605(5) | DFPS determined abuse, neglect or exploitation occurred at the operation. |
Administrative Penalties, 26 TAC Section 745.8605(23) and 745.8605(24) | CCR identified a reason set forth in Human Resources Code, Section 42.078. The operation fails to pay an administrative penalty under Human Resources Code, Section 42.078. |
Applicant Fails to Comply with Public Notice and Hearing Requirements (Residential Child Care Only), 26 TAC Section 745.8605(21)(A) | The applicant or permit holder fails to comply with the requirements of a public notice or hearing in 26 TAC Section 745.277. |
Applicant Gives False Information or Makes False Statements, 26 TAC Section 745.8605(1) | During the application process, the operation gives false information or makes false statements. |
Applicant Has Certain History in Another State, 26 TAC Sections 745.8605(18) and 745.8605(19) | The applicant:
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Applicant or Other Person Has Certain History with Another HHSC Agency, 26 TAC Section 745.8605(20) | The applicant has had a permit revoked, suspended, or terminated by another HHSC agency as outlined in Texas Government Code, Chapter 531, Subchapter W (relating to Adverse Licensing, Listing, or Registration Decision). A controlling person associated with the operation that is applying for a permit has had a permit denied or revoked by another HHSC agency for a substantive reason. |
Applicant is a Designated Controlling Person, 26 TAC Section 745.8605(16) | The applicant is a designated controlling person, and due process for the designation is not complete. |
Applicant is a Sustained Controlling Person Within Certain Time Frame, 26 TAC Section 745.8605(17) | The applicant is a sustained controlling person, and the person was designated as a controlling person within five years of the date the application was submitted. |
Applicant Provides Information Showing a Deficiency (DCCR Only), 26 TAC Sections 747.1003 and 747.1103 | During the application process, the applicant for a registered or licensed child care home permit provides information that shows a deficiency in meeting the primary caregiver qualification requirements. |
Background Check Matches, 26 TAC Section 745.8605(5) | The CBCU identifies a background check match or possible match that makes a permit holder or applicant ineligible to be present at the operation. Note: When a non-relative listed family home fails to submit a five-year background check by the due date CCR staff process an automatic action, and do not take an enforcement action, Reference 7810 Automatic Suspensions and 7820 Automatic Revocations. |
Deficiencies, 26 TAC Sections 745.8605(5), 745.8605(6), and 745.8605(7) | The operation has:
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Failure to Comply After Suspension Period, 26 TAC Section 745.8605(13) | The operation fails to comply with statutes, administrative rules, or minimum standards after the suspension period has ended. |
Failure to Comply with Liability Insurance Requirements, 26 TAC Section 745.8605(3) | The operation fails to comply with liability insurance requirements. References: 4600 Evaluating Compliance with Liability Insurance Requirements |
Failure to Comply with Permit Conditions or Restrictions, 26 TAC Section 745.8605(11) | The operation fails to comply with the limits, restrictions, or conditions placed on the permit. |
Failure to Correct Deficiencies, 26 TAC Section 745.8605(15) | The operation fails to correct by the compliance date any deficiency not pending due process. |
Failure to Follow Conditions or Restrictions for a Person’s Presence, 26 TAC Section 745.8605(25) | The operation fails to follow conditions or restrictions placed on a person’s presence at an operation. |
Failure to Meet Public Notice and Hearing Requirements After Exemption is No Longer Valid (RCCR Only), 26 TAC Section 745.8605(26) | During the application process the operation was exempt from the public notice and hearing requirements under 26 TAC Section 745.273(b), but the operation never provided or ceased to provide trafficking victim services and failed to meet the public notice and hearing requirements. |
Failure to Meet Terms of Probation, 26 TAC Section 745.8605(12) | The operation fails to meet the terms and conditions of probation, which may result in a more serious enforcement action. |
Failure to Notify of Changes other than a change in location, 26 TAC Section 745.8605(10) | The permit holder fails to timely report changes to CCR as required by statute, administrative rules, and minimum standards. |
Failure to Pay Fees, 26 TAC Section 745.8605(4) | The operation fails to pay required fees other than an annual permit fee. CCR staff process an automatic action, not take an enforcement action, when the operation does not pay the annual permit fee. References: |
Failure to Report Change in Location, 26 TAC Sections 745.429 | The holder of a compliance certificate fails to notify CCR staff before a change in location. |
Failure to Report Change in Location, 26 TAC Sections 745.431 and 745.433 | The permit holder of a registered or listed home fails to notify CCR staff within 15 days after a change in location. Reference 3800 Handling Changes in an Operation, Type of Permit, Location and Ownership |
Failure to Report Change in Location, 26 TAC Section 745.435 | The permit holder of a licensed home fails to notify CCR staff at least 15 days before a change in location. Reference 3800 Handling Changes in an Operation, Type of Permit, Location, and Ownership |
Failure to Report Change in Location, 26 TAC Section 745.435 | The permit holder of a before or after-school program, school-age program, child care center, general residential operation, or child-placing agency fails to notify CCR staff 30 days before a change in location. Reference 3800 Handling Changes in an Operation, Type of Permit, Location, and Ownership |
Failure to Timely Submit Changes to Controlling Persons, 26 TAC Section 745.8605(14) | The operation fails to submit information to CCR within two days of a change in controlling persons as required by 26 TAC Section 745.903 |
False Records, 26 TAC Section 745.8605(2) | The operation has falsified or permitted to be falsified any record or other materials that are required to be maintained by minimum standards |
Immediate Threat or Danger, 26 TAC Section 745.8605(8) | There is an immediate threat or danger to the health and safety of children in care. |
Refusal of Inspection or Investigation, 26 TAC Section 745.8605(9) | Someone at the operation refuses, prevents, or delays an inspection or investigation conducted by HHSC or DFPS. |
Results of Public Hearing (Residential Child Care Only), 26 TAC Section 745.8605(21)(B) | As a result of a public hearing, CCR determines that:
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Retaliation for Complaint for Misuse of Restraint or Seclusion (Residential Child Care Only), 26 TAC Section 745.8605(22) | The operation discharges or retaliates against an employee, client, resident, or other person because the person or someone on behalf of the person files a complaint, presents a grievance, or otherwise provides, in good faith, information relating the misuse of restraint or seclusion at the operation. |
7200, Overview of CCR and Regulatory Enforcement Staff Responsibilities Related to Non-Voluntary Enforcement Actions
Revision 24-1; Effective Feb. 20, 2024
Child Care Enforcement (CCE) is a unit within the Regulatory Enforcement (RE) department of the Regulatory Services Division (RSD) responsible for making decisions about enforcement actions and administrative reviews. These decisions are based on information CCR staff gather for all regulated providers and unregulated operations subject to regulation.
Credentialing and Registry Enforcement (CARE) is a unit within the RE department of the RSD. They are responsible for making decisions about remedial actions taken against the holder of, or applicant for, an administrator’s license issued by CCR.
The following table provides a general overview of the roles and responsibilities of CCR, CCE, and CARE staff related to enforcement and remedial actions.
CCR Staff | CCE Staff | CARE Staff |
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7210 Referring Enforcement Decisions to Child Care Enforcement or Credentialing and Registry Enforcement
Revision 24-1; Effective Feb. 20, 2024
CCR staff refer enforcement decisions to Child Care Enforcement (CCE) or Credentialing and Registry Enforcement (CARE) as follows:
How to Refer Enforcement Decision | When CCR Submits the Referral | Who Submits the Referral |
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Submit the Referral for Enforcement Action to CCE, located on the CCR SharePoint site. | When CCR staff determine that an enforcement action:
| Regional Director or Program Administrator |
Submit the Child Care Regulation Administrators Credentialing and Registry Enforcement Referral Memo and Checklist to CARE. | When CCR staff determine that a remedial action on an administrator’s license or an administrator's license application is necessary based on criteria in Human Resources Code Section 43.010 and 26 TAC Section 745.9037. | CCR Administrator Licensing Program Improvement Specialist or Designee |
Reference the Referral Instructions for Probation, Adverse Actions, and Judicial Actions job aid located on the CCR SharePoint site for more information about submitting the Referral for Enforcement Action to CCE.
7300, Plan of Action
Revision 24-1; Effective Feb. 20, 2024
A plan of action is a voluntary enforcement action that is a collaborative effort between CCR and an operation. The goal of a plan of action is to develop a plan to reduce risk and help improve the operation’s compliance with CCR statutes, administrative rules, and minimum standards.
Because a plan of action is voluntary, an operation may decline to develop and follow a plan. CCR may submit a Referral for Enforcement Action to Child Care Enforcement if an operation refuses to participate in a plan of action, and:
- CCR staff determine that risk cannot be mitigated without a plan; and
- the operation meets the criteria for another enforcement action.
The maximum time frame for a plan of action is six months. CCR may not extend a plan of action.
Because a plan of action is a voluntary action, it is not eligible for an administrative review.
26 TAC Section 745.8611, 745.8613, 745.8631(1) and 745.8633(c)
7310 Criteria for Recommending a Plan of Action
Revision 24-1; Effective Feb. 20, 2024
An operation is eligible to participate in a plan of action if a circumstance described in 7110 Circumstances That May Call for Enforcement Action exists and CCR determines the operation meets all of the following criteria:
- demonstrates the ability to identify risk;
- accepts responsibility for correcting deficiencies;
- has the ability to make corrections;
- has a history of making corrections to maintain compliance, if applicable;
- will be able to mitigate risk by following the plan of action; and
- has not participated in a voluntary plan of action during the previous 12 months for similar issues.
If the permit holder operates multiple operations, CCR staff may consider the criteria listed above for each operation the permit holder operates when determining the operation’s eligibility to participate in a plan of action.
In determining whether a plan of action is the most appropriate enforcement action for an operation, CCR staff consult Appendix 7000-1: Factors to Consider for Enforcement Actions.
26 TAC Sections 745.8605, 745.8607 and 745.8633
7311 Initiating a Plan of Action
Revision 24-1; Effective Feb. 12, 2024
Procedure
The inspector discusses the recommendation to initiate a plan of action with the supervisor and obtains supervisory approval before recommending a plan of action to the operation. If the inspector receives supervisory approval, then the inspector completes the actions noted in the table below.
Action | When Action is Completed |
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Documents the supervisor's approval in CLASS as a Chronology. | By the day after receiving supervisory approval. |
| After receiving supervisory approval to recommend a plan of action to the operation. |
Schedules a meeting with:
| After completing the actions listed above. |
Provides the operation with a copy of Form 7277 with the operation’s compliance history report attached. | Before or during the meeting with the operation to discuss a plan of action. |
| During the meeting with the operation to discuss a plan of action. |
Documents a summary of the conversation with the operation in CLASS as a Chronology. | By the day after the meeting with the operation to discuss the recommendation to participate in a plan of action. |
Reference Appendix 3000: Notifying the Operation
7311.1 If the Operation Agrees to Participate in a Plan of Action
Revision 24-1; Effective Feb. 20, 2024
Procedure
If the operation agrees to participate in a plan of action, the inspector takes the following actions:
- directs the permit holder, director, or administrator to complete Section II of Form 7277, and return to CCR within 10 days of receipt; and
- explains to the permit holder, director, or administrator that CCR staff will:
- review the operation’s plan; and
- must agree to action items that the operation documents in Section II of Form 7277 before the plan of action officially begins.
7311.2 If the Operation Does Not Agree to Participate in a Plan of Action
Revision 24-1; Effective Feb. 20, 2024
Procedure
If the operation does not agree to participate in a plan of action, the inspector:
- discusses with the CCR supervisor, and, if necessary, the program administrator and regional director if CCR should:
- take less serious measures to reduce risk at the operation;
- submit a Referral for Enforcement Action to Child Care Enforcement (CCE) (7420 Submitting the Referral for Enforcement Action to Child Care Enforcement); or
- take less serious measures to reduce risk at the operation and submit a referral for Enforcement Action to CCE; and
- documents a summary of the discussion as a Chronology in CLASS, including the decisions made.
7312 Meeting with an Operation to Review a Plan of Action
Revision 24-1; Effective Feb. 20, 2024
Once CCR receives Form 7277 from the operation, the inspector and supervisor:
- review Section II of Form 7277;
- assess if the operation’s proposed plan addresses the deficiencies and mitigates risk to children; and
- schedule a meeting with the operation’s permit holder, designee, director or administrator to review Section II of Form 7277.
The meeting must take place within 10 days of receiving the completed Form 7277 from the operation.
Procedure
During the plan of action meeting, CCR staff:
- review the operation’s compliance history report and discuss areas of concern with the operation;
- review how the operation’s plan does or does not:
- address the areas of concern identified in the operation’s compliance history;
- reduce or eliminate the recurrence of deficiencies; and
- mitigate risk to children caused by the deficiencies;
- explain to the operation how CCR will follow up on the implementation of the plan; and
- discuss the date the operation will implement the plan (the begin date) and the date the plan will end (7314 Starting a Plan of Action and 7316 Ending a Plan of Action).
In the event the action items the operation outlined in the plan do not mitigate risk, the inspector:
- explains to the operation how the plan fails to reduce risk and correct deficiencies; and
- works with the operation to develop new action items that reduce risk and address the deficiencies.
7312.1 When CCR and Operation Agree on a Proposed Plan of Action
Revision 24-1; Effective Feb. 12, 2024
Procedure
Once CCR and the operation agree to the plan of action, the administrator, director, or their designee and the inspector and supervisor review and sign the completed Form 7277.
CCR staff upload a copy of the signed Form 7277 in the operation’s record using the CLASS Document Library (1432 Storage of Photographs, Video, Audio, Scanned Documents and Other Digital Files in CLASS Document Library).
At least 15 days before the start date of the plan, CCR staff send notification of the plan’s start date, along with a signed copy of Form 7277, to:
- the person in charge of the operation;
- the permit holder;
- the applicant or designee;
- for day care only, the head of the governing body; and
- each controlling person.
CCR staff document the plan in CLASS (7313 Documenting the Plan of Action in CLASS).
7312.2 When CCR and Operation Cannot Agree on a Proposed Plan of Action
Revision 24-1; Effective Feb. 12, 2024
Procedure
If CCR staff and the operation cannot agree on the proposed plan of action, the inspector consults with the supervisor, and, if necessary, the program administrator, regional director, or both to determine if CCR should:
- implement the plan as written by the operation;
- collaborate further with the operation; or
- submit a Referral for Enforcement Action to CCE (7420 Submitting the Referral for Enforcement Action to Child Care Enforcement).
CCR staff document the consultation and resulting recommendations in CLASS as a Chronology.
26 TAC Section 745.8631(1)
7313 Documenting the Plan of Action in CLASS
Revision 24-1; Effective Feb. 20, 2024
CCR staff document the plan of action in the CLASS Plan of Action List located under the Monitoring tab as follows:
What to Document | When to Document | CLASS Field(s) |
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Planned Start Date | Before plan of action begins | Begin Date |
Planned Completion Date | Before plan of action begins | End Date (must be 6 months from the Begin Date) |
Actual Completion Date | When plan of action ends | Actual End Date |
List of deficiencies within the last 24 months that are the basis for recommending the plan. This may or may not include all deficiencies cited within the past 24 months. | Before plan of action begins |
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The operation’s action items listed in Section II, Subsection B, of the finalized Form 7277 | Before plan of action begins During plan of | Action Items |
If implementation of the plan was successful or not successful | When plan of action ends | Status dropdown |
If CCR staff modify or delete an action item during the plan of action, CCR staff enter the following as a Chronology in CLASS:
- a summary of what was modified or deleted; and
- why the modification or deletion occurred.
7314 Starting a Plan of Action
Revision 24-1; Effective Feb. 12, 2024
A plan of action starts 15 days from the date CCR sends written notification to the operation with the plan’s start date and a signed copy of Form 7277, unless the operation sends CCR a written request to begin the plan earlier.
Procedure
If an operation requests to begin the plan of action early, the inspector:
- documents the revised start date in the Begin Date field in the Plan of Action Details page in CLASS; and
- updates the planned end date in the Planned End Date field in the Plan of Action Details page in CLASS.
References:
7312.1 When CCR and Operation Agree on a Proposed Plan of Action
7313 Documenting the Plan of Action in CLASS
7315 Inspecting an Operation During a Plan of Action
Revision 24-1; Effective Feb. 20, 2024
During a plan of action, CCR staff conduct at least two unannounced monitoring inspections while children are in care. These inspections are to determine if the operation has come into and maintained compliance with statutes, administrative rules, and minimum standards.
CCR staff may conduct more inspections based on the compliance of the operation and risk to children determined during the required inspections.
Before the end of the plan of action, CCR staff evaluate the operation’s compliance with the entire subchapter associated with each minimum standard listed in the Basis for Plan of Action section of the Plan of Action Details page in CLASS.
26 TAC Section 745.8631(1)
Procedure
The inspector conducts the monitoring inspections at appropriate intervals during the plan of action to:
- evaluate the operation’s progress in implementing the plan; and
- determine if the operation successfully completed the plan or a more serious action may be necessary.
During each monitoring inspection completed during the plan of action, the inspector:
- evaluates the operation’s compliance with at least one entire subchapter of the minimum standards associated with the plan of action;
- evaluates the operation's compliance with one additional entire subchapter of the minimum standards to ensure overall compliance;
- documents that the plan of action was evaluated during the inspection by selecting the Plan of Action action items were evaluated checkbox in the Other Items Evaluated section on the Inspection Details page;
- provides technical assistance:
- completes all other tasks required during a monitoring inspection (4126 Monitoring Inspections).
The inspector may evaluate if the operation is following the plan of action, but only cites a deficiency if the operation violates a statute, administrative rule, or minimum standard. If the operation is still deficient in the areas identified in the plan, the inspector:
- reviews the specific action items in the plan related to the deficiencies with the person in charge at the time of the inspection; and
- uses this review to reevaluate the plan and determine the appropriateness of its terms if the operation has not established or maintained compliance.
7316 Ending a Plan of Action
Revision 24-1; Effective Feb. 20, 2024
7316.1 Consultation with Supervisor Before a Plan of Action Ends
Revision 24-1; Effective Feb. 20, 2024
Before a plan of action ends, the inspector consults the supervisor to review the operation’s compliance with the statutes, administrative rules, and minimum standards evaluated during the plan of action. The inspector consults with the supervisor based on the operation’s progress on the plan of action and overall compliance.
Procedure
During the plan of action, the inspector and supervisor discuss:
- the operation’s progress on the plan of action and overall compliance with statutes, administrative rules, and minimum standards; and
- if:
- the plan remains appropriate, such as if CCR should recommend the operation modify or add action items;
- the plan should end early;
- more inspections are needed; or
- a more serious enforcement action would be more appropriate.
Before ending the plan, the inspector and supervisor must also discuss whether the plan of action has been successful.
CCR staff document a summary of the staffing and any recommendations as a Chronology in CLASS.
References:
7316.2 Ending a Plan of Action Early
7316.3 When the Operation Has Been Established and Maintained Compliance During the Plan of Action
7316.4 When the Operation Has Not Been Established or Maintained Compliance During the Plan of Action
7316.2 Ending a Plan of Action Early
Revision 24-1; Effective Feb. 20, 2024
CCR may end a plan of action early if CCR determines that:
- the operation has reduced risk and come into and maintained compliance with statutes, administrative rules and minimum standards; or
- the operation’s compliance has worsened and CCE has imposed a more serious enforcement action.
26 TAC Sections 745.8611, 745.8643
References:
7316.3 When the Operation Has Established and Maintained Compliance During the Plan of Action
7316.4 When the Operation Has Not Established or Maintained Compliance During the Plan of Action
7316.3 When the Operation Has Established and Maintained Compliance During the Plan of Action
Revision 24-1; Effective Feb. 20, 2024
Procedure
When the operation has come into and maintained compliance with all statutes, administrative rules, and minimum standards associated with the plan, and any additional statutes, administrative rules, and minimum standards evaluated during the plan of action, the inspector sends the operation a letter on HHSC letterhead in CLASS. This is done using the appropriate plan of action results letter template located on CCR’s SharePoint site, stating:
- compliance with statutes, administrative rules, minimum standards has been established;
- the plan of action has ended; and
- compliance with statutes, administrative rules, the minimum standards, and any restrictions or conditions on the operation’s permit must be maintained.
To document the end to the plan of action in CLASS, the inspector follows the procedure in 7316.5 Documenting the End to a Plan of Action in CLASS.
7316.4 When the Operation Has Not Established or Maintained Compliance During the Plan of Action
Revision 24-1; Effective Feb. 20, 2024
If the operation’s compliance with statutes, administrative rules, and minimum standards does not improve sufficiently to reduce risk at the operation because of the plan of action or the operation’s compliance worsens, CCR staff may:
- recommend additional action items, modify action items, increase inspections; or
- submit a Referral for Enforcement Action to CCE.
26 TAC Section 745.8643
Procedure
If the operation has not met compliance with statutes, administrative rules, and minimum standards, CCR staff:
- reevaluate the plan to determine the appropriateness of its terms and determine whether CCR should:
- recommend an amendment to the plan’s action items,
- increase inspections if the term of the plan of action is not expiring within the next 60 days,
- recommend an amendment to the plan’s action items and increase inspections if the term of the plan of action is not expiring within the next 60 days, or
- submit a Referral for Enforcement Action to CCE; and
- send the operation written notification on HHSC letterhead in CLASS, using the appropriate plan of action results letter template located on CCR’s SharePoint site, that the operation has not met compliance and CCR may proceed with the decided upon action.
If CCR staff are also ending the plan, the inspector follows the procedure in 7316.5 Documenting the End to a Plan of Action in CLASS.
Reference 7316.2 Ending a Plan of Action Early
7316.5 Documenting the End to a Plan of Action in CLASS
Revision 24-1; Effective Feb. 20, 2024
Procedure
To end the plan of action in CLASS, the inspector updates the Status dropdown on the Plan of Action Details page in CLASS as follows:
If | Then |
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the operation has:
| the inspector changes the Status dropdown from In Progress to Successful. |
the operation’s compliance with statutes, administrative rules, and minimum standards:
| the inspector changes the Status dropdown from In Progress to Not Successful. |
7400, Probation
Revision 24-1; Effective Feb. 20, 2024
Probation is a non-voluntary enforcement action that Child Care Enforcement imposes to ensure the safety of children in care of an operation. During probation CCE imposes a corrective action plan, which includes conditions beyond the minimum standards and the basic permit requirements to help the operation improve compliance with identified standards. CCR inspects the operation at least monthly to evaluate compliance with standards and conditions imposed as part of the corrective action plan.
The time frame for probation is a maximum of twelve months.
References:
Definitions of Terms for corrective action
26 TAC Sections 745.8603; 745.8611; 745.8631(2) and 745.8637
Human Resources Code Section 42.071(c)
7410 Criteria for Imposing Probation
Revision 24-1; Effective Feb. 20, 2024
Child Care Enforcement (CCE) imposes probation on an operation if a circumstance described in 7110 Circumstances That May Call for Enforcement Action exists and upon determining that:
- the operation is eligible to participate in a voluntary plan of action but refuses to do so, or the operation does not qualify for a voluntary plan of action;
- the operation has not demonstrated the ability to make the necessary changes to address risk, but expresses a willingness to comply and make corrections;
- the operation can mitigate risk by complying with the conditions identified in a corrective action plan in addition to statutes, administrative rules, and minimum standards; and
- a more serious enforcement action is not necessary to reduce risk.
References:
Appendix 7000-1: Factors to Consider for Enforcement Actions
Human Resources Code Section 42.071(c)
26 TAC Sections 745.8601, 745.8605, 745.8607 and 745.8637
7420 Submitting the Referral for Enforcement Action to Child Care Enforcement
Revision 24-1; Effective Feb. 20, 2024
Procedure
Following a deficiency or other triggering event, the inspector and supervisor consult the program administrator and regional director to discuss the operation’s compliance history and determine if the regional director will begin the referral process to Child Care Enforcement (CCE) (Appendix 7000-1: Factors to Consider for Enforcement Actions).
Based on this discussion, and the situation, CCR staff take the following actions:
If | Then |
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the regional director agrees with submitting the Referral for Enforcement Action to CCE | the regional director begins the CCE referral process. The inspector documents a summary of the discussion and CCR’s decision as a Chronology in CLASS. |
the regional director does not agree with submitting the Referral for Enforcement Action to CCE | CCR staff determine whether to take less serious measures to reduce risk at the operation. The inspector documents a summary of the discussion and CCR’s decision as a Chronology in CLASS. |
7430 Decision to Impose Probation
Revision 24-1; Effective Feb. 20, 2024
CCE notifies CCR of their decision after the Referral for Enforcement Action is submitted.
Procedure
CCR staff complete the actions outlined in the following chart, depending on CCE’s decision about the Referral for Enforcement Action.
If | Then |
---|---|
CCE does not impose probation or any other enforcement action | the inspector, supervisor, program administrator, and regional director:
The inspector documents a summary of the discussion and the decisions made as a Chronology in CLASS. |
CCE imposes probation | CCE staff will:
CCR staff:
|
CCE imposes a different enforcement action such as an enforcement action other than probation | CCR staff follow the relevant procedure for the enforcement action imposed. References: 7600 Adverse Actions |
7430.1 When CCE Requests Additional Information from CCR After the Referral for Enforcement Action is Submitted (Probation)
Revision 24-1; Effective Feb. 20, 2024
CCE notifies CCR if CCE staff require more information after CCR submits the Referral for Enforcement Action.
Procedure
If CCR staff receive a request for more information from CCE after the Referral for Enforcement Action is submitted, CCR staff:
- provide the additional information requested; and
- document a summary of the additional information provided as a Chronology in CLASS.
7431 Meeting with an Operation About Probation
Revision 24-1; Effective Feb. 20, 2024
Procedure
If CCE schedules a meeting with the operation to review the corrective action plan, and invites CCR to the meeting, the following CCR staff attend the meeting:
- inspector;
- supervisor; and
- program administrator and regional director if circumstances exist to warrant their involvement.
7432 Reviewing Probation Conditions
Revision 24-1; Effective Feb. 20, 2024
Procedure
After CCE sends CCR the finalized Form 2885 Corrective Action Letter, but before CCR conducts the first inspection during the probation period, the inspector and supervisor meet to discuss:
- the conditions being imposed by the corrective action plan;
- any due dates associated with the conditions; and
- a plan for how CCR will evaluate the operation for compliance with the probation conditions.
If the operation declines to participate in a meeting offered by CCE to discuss the probation, CCE staff will not schedule a meeting with the operation to review the corrective action plan.
If CCE does not hold a meeting with the operation, the inspector coordinates a meeting with the operation’s permit holder, designee, director, or administrator as follows:
When the Meeting Occurs | Topics Covered During the Meeting | Who Attends the Meeting | Follow Up Actions After the Meeting |
---|---|---|---|
Per each of the following criteria:
|
|
| The inspector documents the following as a Chronology in CLASS:
|
7433 Requesting or Waiving the Right to an Administrative Review of Probation
Revision 24-1; Effective Feb. 20, 2024
If an operation disagrees with the corrective action plan, including any condition imposed as a part of the plan, the operation may request an administrative review within 15 days of receiving the finalized CLASS Form 2885 Corrective Action Letter.
References:
5612 Waiving the Right to an Administrative Review
5613 Receiving a Request for an Administrative Review
7440 Starting Probation
Revision 24-1; Effective Feb. 20, 2024
Probation does not start until:
- the operation waives the right to an administrative review per 7433 Requesting or Waiving the Right to an Administrative Review of Probation; or
- the person who conducted the administrative review upholds the decision to impose probation.
If the operation waives the administrative review, in writing, before the 15-day time frame to request the administrative review, CCE may begin the action sooner than the planned begin date.
After the administrative review is waived or upheld, CCE staff will:
- enter the Actual Begin Date field on the Provider Corrective Action page in CLASS; and
- notify the operation of the Actual Begin Date.
7441 Inspecting an Operation During Probation
Revision 24-1; Effective Feb. 20, 2024
Procedure
During the probation period, CCR staff conduct a monitoring inspection at least once per month, unless there is good cause not to inspect within this time frame including when CCR or DFPS is conducting an investigation.
If there is good cause not to inspect within this time frame, the inspector requests approval from the supervisor and documents the approval and reason for the variation as a Chronology in CLASS.
During each monitoring inspection, the inspector:
- evaluates the operation’s compliance with:
- the conditions imposed by the corrective action plan;
- at least one entire subchapter of the minimum standards listed in the Basis for Corrective Action section of the Provider Corrective Action Plan page in CLASS; and
- at least one additional entire subchapter of the minimum standards to ensure overall compliance;
- documents that the probation conditions were evaluated during the inspection by selecting the Probation conditions were evaluated checkbox on the Inspection Details page in CLASS;
- cites the operation if the operation is in violation of any statute, administrative rule, or minimum standard;
- cites the operation for a violation of 26 TAC 745.8641 if the operation is in violation of any probation condition;
- provides technical assistance:
- reviews with the permit holder or designee the probation conditions that relate to the deficiencies cited during the inspection (4170 Conducting the Exit Conference); and
- completes all other tasks required during a monitoring inspection (4126 Monitoring Inspections).
Before the end of the probation period, the inspector evaluates the operation’s compliance with the entire subchapter associated with each minimum standard listed in the Basis for Corrective Action section of the Provider Corrective Action Plan page in CLASS.
7442 Conducting Surveillance During Probation
Revision 24-1; Effective Feb. 20, 2024
An inspector or supervisor may determine that surveillance is necessary to evaluate if a program or caregiver is complying with minimum standards or conditions outlined in the corrective action plan. Valid reasons for surveillance include, but are not limited to determining if an operation is:
- complying with transportation requirements;
- providing adequate supervision during outdoor activities; or
- providing care to more children than the permit allows.
Procedure
An inspector must receive supervisory approval to conduct surveillance. Upon receiving the necessary approval, the inspector:
- may conduct surveillance at the operation’s physical location or at other locations where children in care are transported by the operation;
- takes photographs or video recordings, as necessary, during the course of the surveillance to support violations or a lack of violations;
- uploads any photographs or video recordings to the appropriate folder in the CLASS Document Library (1400 State-Issued Equipment, Photographs, Video, Audio and Digital Files); and
- documents all decisions about surveillance and all information obtained from conducting surveillance as a Chronology in CLASS.
References:
1400 State-Issued Equipment, Photographs, Video, Audio and Digital Files
1432 Storage of Photographs, Video, Audio, Scanned Documents and Other Digital Files in CLASS Document Library
6450 Conducting Surveillance (Day Care Only)
7443 Consultations During Probation
Revision 24-1; Effective Feb. 20, 2024
During the probation period, the inspector meets with the supervisor to review the operation’s compliance with statutes, administrative rules, minimum standards, and conditions imposed by the corrective action plan. These meetings take place at least four times during the probation period. They may occur more often depending on the operation’s progress and overall compliance.
Procedure
During each consultation, the inspector and supervisor:
- review the operation’s progress on the corrective action plan;
- review the operation’s overall compliance with statutes, administrative rules, and minimum standards;
- discuss if the corrective action plan remains appropriate, including whether:
- more inspections are needed;
- an amendment to the plan is necessary; or
- a more serious enforcement action should be imposed (7450.2 Modifying or Ending Probation When Compliance Has Not Been Established); and
- if the operation has established and maintained compliance during the probation.
Before ending probation, the inspector must staff the decision with a supervisor and receive the supervisor’s approval to end the probation period.
The consultations and any recommendations are documented as a Chronology in CLASS.
References:
Reviewing Restrictions, Conditions, Waivers, and Variances, 4152
26 TAC Section 745.8631
7450 Ending Probation
Revision 24-1; Effective Feb. 20, 2024
HHSC may not extend a probation period, but the inspector may end probation early with supervisory approval. HHSC may end probation if:
- CCR determines that the operation has reduced risk and come into and established and maintained compliance with statutes, administrative rules, and minimum standards; or
- after CCR submits a Referral for Enforcement Action, and CCE determines that a more serious enforcement action is necessary.
References:
Consultations During Probation, 7443
Ending Probation When Compliance Has Been Established, 7450.1
Modifying or Ending Probation When Compliance Has Not Been Established, 7450.2
26 TAC Sections 745.8611(b) and 745.8643
7450.1 Ending Probation When Compliance Has Been Established
Revision 24-1; Effective Feb. 20, 2024
Procedure
If the operation has complied with the conditions imposed by the corrective action plan, corrected deficiencies and reduced risk, and maintained compliance with all other statutes, administrative rules, and minimum standards, the inspector uses the appropriate probation results letter template located on CCR’s SharePoint site to send the operation a letter on HHSC letterhead in CLASS stating:
- compliance with the minimum standard, administrative rules, statutes, and probation conditions has been established;
- the probation period has ended; and
- compliance with statutes, administrative rules, and minimum standards, and any restrictions or conditions on the operation’s permit must be maintained.
To end the probation period in CLASS, the inspector completes the following fields on the Provider Corrective Action Plan page in CLASS:
- selects the appropriate selection from the Result of Corrective Action drop-down menu; and
- enters the end date in the Actual End Date field.
Reference:
Consultations During Probation, 7443
7450.2 Modifying or Ending Probation When Compliance Has Not Been Established
Revision 24-1; Effective Feb. 20, 2024
Procedure
During the course of probation, if the operation’s compliance with statutes, administrative rules, minimum standards, and the probation conditions do not improve sufficiently to reduce risk at the operation, CCR staff:
- reevaluate the corrective action plan to assess the appropriateness of its terms and conditions and determine if CCR should:
- increase the frequency of inspections if the term of the corrective action is not expiring within the next 90 days; or
- submit a Referral for Enforcement Action to CCE; and
- use the appropriate probation results letter template, located on CCR’s SharePoint site, to send the operation a letter on HHSC letterhead in CLASS stating the operation has not met compliance and that CCR will or may, as appropriate, proceed with the decided upon action.
When CCR Determines the Corrective Action Plan Should be Modified or a More Serious Enforcement Action Should be Imposed
If the inspector and supervisor determine that CCE should amend the conditions associated with a corrective action plan or impose a more serious enforcement action, the inspector and supervisor consult the program administrator and regional director to discuss their determination.
If the regional director agrees that CCE should amend the conditions associated with a corrective action plan or impose a more serious enforcement action, then the regional director begins the CCE referral process.
The inspector documents a summary of the staffing in the operation’s record as a Chronology in CLASS.
Ending Probation in CLASS after Submitting a Referral for Enforcement Action to CCE
If CCE imposes a more serious enforcement action after CCR submits a Referral for Enforcement Action, the inspector ends the probation period in CLASS by completing the following fields on the Provider Corrective Action Plan page:
- selects the appropriate selection from the Result of Corrective Action drop-down menu; and
- enters the date the probation period ended in the Actual End Date field.
Reference:
Consultations During Probation, 7443
7460 Following Up After Ending Probation
Revision 24-1; Effective Feb. 20, 2024
Procedure
Within six months from the date a probation period ends, the inspector conducts an unannounced monitoring inspection to ensure the operation is in compliance with:
- the statutes, administrative rules, and minimum standards associated with the corrective action plan; and
- any restrictions or conditions on the operation’s permit.
7500, Administrative Penalties
7510 Legal Basis to Impose Administrative Penalties
August 2015
Administrative penalties are fines that Licensing may impose against an operation or a controlling person with the intent of reducing the risk of harm to children in care. Administrative penalties are not imposed for clerical errors.
Administrative penalties may be imposed against:
- any licensed operation, registered or listed family home, including those exempt from paying annual fees;
- controlling persons; and
- a child placing agency's main office for violations cited at the operation's branch offices.
Texas Human Resources Code Section 42.078(a)
26 TAC Section 745.8603
7511 Imposing an Administrative Penalty Before Taking a Corrective Action
August 2015
Licensing may impose a fine before taking non-monetary corrective action. This is done only when an operation or controlling person has violated high risk minimum standards or rules. These rules include, but are not limited to, standards and rules related to supervision, safety hazards, and background checks.
Texas Human Resources Code Section 42.078(a-2)
Also see:
7521 A Single High Risk Violation
7522 Repeated High Risk Violations
7512 Imposing an Administrative Penalty After Taking a Corrective Action
August 2015
Licensing must take a non-monetary corrective action before imposing a fine against an operation or a controlling person in situations in which the operation:
- violates a term of a permit issued under HRC Chapter 42, or a rule or order adopted under that chapter;
- makes a statement about a material fact that the operation or person knows or should know is false:
- on an application for the issuance of a permit or an attachment to the application, or
- in response to a matter under investigation;
- refuses to allow an inspector to inspect:
- a book, record, or file required to be maintained by the operation, or
- any part of the premises of the operation;
- purposefully interferes with the work of an inspector or the enforcement of HRC Chapter 42;
- fails to pay a penalty assessed under HRC Chapter 42 on or before the date the penalty is due, as determined under HRC Section 42.078;
- commits repeated deficiencies that present low to medium risk to children; or
- fails to comply with any evaluation or probation plan after time limits for correction have expired.
Texas Human Resources Code Section 42.078(a)(1)-(5)
26 TAC Sections 745.8603, 745.8605, 745.8711, 745.8713, 745.8715
7520 Assessing the Need for an Administrative Penalty
Revision 24-1; Effective Feb. 20, 2024
To determine if an administrative penalty should be recommended, staff consider:
- if corrective action is more appropriate (7400 Probation);
- if the operation or controlling person has made any effort to come into compliance;
- if an operation has been cited for the same violation within the past six months;
- if it has been documented that the operation was advised in writing that another violation of the high risk minimum standard or rule previously cited could result in an administrative penalty; and
- the level of risk posed to children in care because of the violation.
7521 A Single High Risk Violation
Revision 23-3; Effective Sept. 22, 2023
Child Care Enforcement staff recommend an administrative penalty when an operation or controlling person has a single violation of certain high risk statutes, minimum standards or administrative rules for the following requirements:
- knowingly allowing a person to be present at the operation before receiving notification from the CBCU that the person's eligibility determination is Eligible, Provisional or Eligible with Conditions;
- knowingly allowing a person to be present in the operation after receiving notification from the CBCU that the person's eligibility determination is Ineligible;
- violating a condition or restriction that the CBCU has placed on a person's presence at the operation; or
- other high risk violations identified in the Protocol for Administrative Penalties for Single High-Risk Violations (Immediate Enforcement) job aid located on the CCR SharePoint site.
See:
4161.24 Technical Assistance for Violations Recommended for an Administrative Penalty
26 TAC Sections 745.635, 745.637, 745.641, 745.661, 745.667, 745.669, 745.671, 745.8713
7522 Repeated High Risk Violations
August 2015
Procedure
Licensing staff consider imposing an administrative penalty when an operation or a controlling person has repeated violations of the same high risk minimum standard or administrative rule during any six month period.
7522.1 Repeated Violations of Background Check Requirements
March 2020
Procedure
Licensing staff consider imposing an administrative penalty when an operation or controlling person has demonstrated a pattern of noncompliance (two or more violations during any six month period) with the following background check requirements:
- timely submission of an initial background check; or
- timely submission of a renewal background check.
Administrative penalties are not imposed for repeated violations of these background check requirements if:
- the violation involves a regular or frequent visitor, if the operation has not been previously informed that the person needed a background check; and
- the violation is for an overdue background checks in listed family homes when automatic suspension is appropriate.
Also see
7810 Automatic Suspensions
Protocol for Citing and Recommended Administrative Penalties for Repeated Violations (Progressive Enforcement) located on the CCL SharePoint site.
26 TAC Sections 745.601, 745.6005, 745.621, 745.8713
7530 Recommending the Administrative Penalty
7531 When to Recommend the Administrative Penalty
March 2020
Licensing staff must submit the recommendation to impose an administrative penalty to the supervisor as soon as possible, but no later than 30 days after the operation or controlling person was notified of the violation.
Also see:
7532 How to Document the Recommendation to Impose the Administrative Penalty
7531.1 When the Violation is Corrected at the Time of the Inspection
June 2016
Procedure
If the operation corrects the deficiency at the time of the inspection, the inspector recommends the administrative penalty as early as the same day the deficiency was cited, or as soon as possible following the inspection. This ensures that there is a complete record of the operation's history of deficiencies in CLASS. See 4161.21 Documentation of the Findings Evaluated From the Inspection.
If the inspector learns of a deficiency during the inspection, and the operation has corrected the deficiency before the inspection and is in compliance at the time of the inspection, the inspector may cite the operation for the deficiency, but does not recommend an administrative penalty.
For example, if an employee was due for a background check in June and Licensing staff inspect in September and see that the check was not run until August, it is clear that though the background check was late the operation had already corrected it.
7531.2 When the Violation is Not Corrected During the Inspection
August 2015
Procedure
If the violation is not corrected during the inspection, the operation or controlling person is responsible for notifying Licensing when the violation has been corrected.
Staff wait to recommend the administrative penalty until the operation or controlling person notifies Licensing that compliance is met.
If the operation or controlling person does not notify Licensing that compliance has been met within 15 days of being notified of the violation, the inspector:
- processes a penalty on the existing violation;
- recites the minimum standard or administrative rule in violation, if applicable; and
- considers recommending a separate administrative penalty for the new violation.
7532 How to Document the Recommendation to Impose the Administrative Penalty
March 2020
Licensing staff must complete and submit a recommendation to impose an administrative penalty to the supervisor within three days after staff create the administrative penalty in CLASS. Licensing staff can only include one violation per administrative penalty recommendation. If there is more than one violation, then Licensing staff will create a separate recommendation for each.
An administrative penalty is created when the inspector identifies and saves violations on the ;Administrative Penalty Standards List page. At this point, a unique administrative penalty number is created.
Procedure
The inspector completes the Administrative Penalty Details page and Administrative Penalty Standard Details page in CLASS by:
- selecting whether to send the recommendation letter to the permit holder, designee, or controlling person;
- searching for and selecting a violation resulting in the administrative penalty;
- entering the fields required to calculate the recommended penalty amount to be imposed for the violation (see 7532.1 Determining the Maximum Daily Penalty Amount); and
- documenting any additional information regarding the penalty in the Narrative box specific to that particular violation. Information may include an employee's name or date of hire, or any other pertinent information as to why a penalty should be imposed for violation identified.
The inspector then submits the recommendation to the supervisor for review and approval by selecting the Recommendation Ready for Supervisor Approval check box and saving the Administrative Penalty Details page in CLASS.
7532.1 Determining the Maximum Daily Penalty Amount
August 2015
The maximum daily amount Licensing may impose for each day a violation continues or occurs is set in statute and is based on the type and capacity of the operation.
Licensing staff may recommend imposing 25%, 50%, 75%, or 100% of the maximum daily amount based on the:
- seriousness of the violation,
- history of previous violations,
- efforts the operation or controlling person has taken to correct the violation;
- amount necessary to deter future violations; and
- extent to which the violation causes harm to property or the environment
Texas Human Resources Code Section 42.078(b)(1) and (2); and (c)(1) and (2)
Procedure
The inspector enters the recommended percentage of the maximum daily amount in the Recommended Penalty Amount for Violation field on the Administrative Penalty Standard Details page for each violation associated with the penalty.
7532.11 Determining the Operation's Capacity
March 2020
For operations other than child placing agencies, the maximum penalty amount is based on the capacity listed on the operation's permit.
For child placing agencies, the maximum daily penalty amount is based on the number of children in care at the time of the violation. If an inspector finds the violation during an inspection of a foster home, the inspector:
- contacts the child-placing agency for the total number of children in care of the agency or branch office at the time of the inspection; or
- uses the census entered on the agency's last monitoring inspection if the inspection took place within 30 days of the inspection at the foster home.
The inspector documents how the census was obtained on CLASS Form 2936.
Texas Human Resources Code Section 42.078(b)
Procedure
If the administrative penalty is being imposed on an operation other than a child placing agency, the operation's capacity will automatically display on the Administrative Penalty Standard Details page in CLASS.
If the administrative penalty is being imposed on a child placing agency, the inspector enters the operation's capacity in the Capacity field on the Recommended Penalty Amount section of the Administrative Penalty Standard Details page in CLASS.
7532.12 Determining the Number of Days to Impose an Administrative Penalty
August 2015
Procedure
To determine the number of days to impose the penalty, the inspector enters the following information in the Recommended Penalty Amount for Violation fields on the Administrative Penalty Standard Details page:
- the date the operation was notified of the violation in the Begin Date field;
- the date the operation was given to comply with the minimum standard or rule in the Comply by Date field;
- the date the operation came into compliance in the Corrected Date field:
- if the violation is corrected at the time of the recommendation, the inspector uses the date the operation notified Licensing of the correction;
- if the violation has not been corrected 15 days after the operation was notified of the violation the inspector enters a date equal to 15 days from the Begin Date; and
- the number of days excluded, which is the number of days the operation was not providing care for children between the Begin Date and the Compliance Date, in the Number of Excluded Daysfield.
7532.13 Submitting the Recommendation to the Supervisor
August 2015
Procedure
When the inspector has entered all information to be considered with the administrative penalty, the inspector submits the recommendation to the supervisor by checking the Recommendation Ready for Supervisor Approval check box on the Administrative Penalty Details page.
7533 Supervisor and Legal Review of the Recommendation to Impose an Administrative Penalty
March 2020
From the date the inspector submits the recommendation to impose the administrative penalty for review, the supervisor has five days to edit and approve the recommendation.
The supervisor processes the recommendation to impose the administrative penalty even if an administrative review is requested on the violation identified in the penalty.
Procedure
In order to approve the recommendation to impose an administrative penalty, the supervisor reviews the recommendation to determine:
- whether an administrative penalty is warranted for the identified violation;
- that the maximum daily amount to be imposed for the violation is consistent with policy;
- that the number of days the penalty is imposed is correct; and
- whether the appropriate technical assistance was provided at the time of the original citation.
If the administrative penalty totals more than $500, the supervisor must submit the recommendation for approval to the Director or designee of Child Day Care or Residential Child Care.
Also see:
4161.2 Documenting Inspection Results on CLASS Form 2936
7533.1 Supervisor Agrees and Sends Notification of the Recommendation to Impose an Administrative Penalty
March 2020
Licensing has six days to notify the operation or controlling person of the recommendation from the date the supervisor approves the recommendation to impose an administrative penalty.
Procedure
If the supervisor agrees with the recommendation, the supervisor:
- makes any necessary edits to the initial recommendation, or requests the inspector make the edits;
- selects the Supervisor Approved check box on the Administrative Penalty Details page;
- finalizes the Notice of Recommendation for Administrative Penalty; and
- sends the notice via regular and certified mail, and includes copies of relevant inspection and investigation forms supporting the decision, to the licensed operation, registered or listed home, or controlling person.
7533.2 Supervisor Disagrees with the Recommendation to Impose a Penalty
March 2020
Procedure
If the supervisor determines that an administrative penalty is not necessary, the supervisor completes the Administrative Penalty Final Result section on the Administrative Penalty Details page in CLASS by:
- selecting Stopped from the Final Result field; and
- documenting the reason the penalty was not approved in the Final Result Narrative field.
7533.3 Supervisor Disagrees with the Minimum Standard or Rule Cited for the Penalty
March 2020
Procedure
If the supervisor determines that Licensing staff selected the incorrect minimum standard or rule for the administrative penalty, the supervisor advises Licensing staff to correct the deficiency on the inspection's Inspection Summary page using the procedures outlined in Job Aid – Workaround for Incorrect Standard Cited on AP Recommendation located on the CCL SharePoint site.
7534 Contents of the Notice of Recommendation for Administrative Penalty
March 2020
The Notice of Recommendation for Administrative Penalty contains:
- a statement that CCL is recommending an administrative penalty for the operation and the amount of that penalty;
- the basis for the recommendation;
- actions taken prior to the recommendation;
- any additional comments from licensing staff not included previously;
- information regarding how the operation can accept or dispute the penalty; and
- an invoice, including the administrative penalty amount and payment instructions, should the operation choose to accept and pay the penalty upon receipt of the notification.
7535 Reviewing the Status of Administrative Reviews for Minimum Standard or Rule Violation Identified in the Administrative Penalty
March 2020
The supervisor reviews the administrative review status for the violation identified in the administrative penalty to determine if the penalty should be stopped.
The supervisor may take this action regardless of whether Licensing has sent the Notice of Recommendation for Administrative Penalty to the operation, so long as due process related to the penalty has not been exhausted or waived.
Procedure
If the Administrative Review status for the violation identified in the administrative penalty is set to Overturned, the supervisor:
- selects Stopped from the Final Result field on the Administrative Details page in CLASS and enters a reason for the penalty being stopped;
- sends notification to the operation or controlling person that the decision to recommend an administrative penalty was stopped by sending notice using HHSC Letterhead, if the Notice of Recommendation for Administrative Penalty has already been sent to the operation; and
- initiates a refund according to 5270 Fee Refund Guidelines, if the operation or controlling person has already paid the administrative penalty.
7540 Steps to Take after Sending the Notice of Recommendation for Administrative Penalty
March 2020
After receiving the Notice of Recommendation for Administrative Penalty, the operation or controlling person has 30 days to:
- pay the administrative penalty;
- accept the administrative penalty; or
- dispute the penalty by requesting a due process hearing.
The operation or controlling person may request a due process hearing even if the operation or controlling person has paid the administrative penalty fee.
Procedure
45 days after sending the notice of recommendation to the operation or controlling person, Licensing staff determines:
- whether the operation or controlling person paid the administrative penalty fee by verifying the Invoice Status for the administrative penalty on the operation's Invoice and Payment Summary page in CLASS (see 5240 Verification of Fee Payments);
- the status of the operation's due process rights for the violation identified in the administrative penalty and takes the appropriate actions as outlined in 7535 Reviewing the Status of Administrative Review for Minimum Standard or Rule Violation Identified in the Administrative Penalty; and
- whether the operation or controlling person:
- waived the right to a due process hearing; or
- submitted a timely request for a due process hearing as outlined in 7561 Determining Whether a Request for a Due Process Hearing Meets the Due Date.
Depending on the outcome of the Licensing staff's review, Licensing staff take the following steps, as outlined below, when the violation identified in the administrative penalty is upheld or waived:
Is the Administrative Penalty Paid in Full? | Due Process Hearing Requested? | Penalty Accepted or Hearing Waived? | Action Licensing Staff Must Take |
---|---|---|---|
Yes | No | Yes | No further action. |
Yes | Yes | No | Follows process for due process outlined in 7560 Due Process Rights for Administrative Penalties. |
No | No | Yes | Sends the Administrative Penalty Order as outlined in 7550 Issuing Order to Pay an Administrative Penalty. |
No | Yes | No | Follows process for due process outlined in 7560 Due Process Rights for Administrative Penalties. |
If the violation identified in the administrative penalty is overturned, Licensing staff take steps to stop the administrative penalty, as outlined in 7535 Reviewing the Status of Administrative Reviews for Minimum Standard or Rule Violations Identified in the Administrative Penalty.
7550 Issuing the Order to Pay an Administrative Penalty
March 2020
7551 When to Send the Order to Pay the Administrative Penalty
March 2020
Procedure
The supervisor waits 30 days after the operation or controlling person receives the Notice of Recommendation for Administrative Penalty to issue an order to pay an administrative penalty.
If the operation or controlling person has not paid the administrative penalty, the supervisor sends the order to the operation only after:
- the due process for the violation identified in the administrative penalty is complete;
- the Administrative Review status for the violation is set to Waived or Upheld; and
- the operation or controlling person:
- provides written notice accepting the penalty; or
- fails to respond with written notice within the specified time frame after receiving the recommendation to impose a penalty.
The supervisor does not send the Administrative Penalty Order if:
- the operation or controlling person has paid the full amount of the administrative penalty; or
- the legal division has negotiated a settlement for a reduced penalty amount with the operation. See 7562 Processing a Legal Reduction of an Administrative Penalty.
The Legal division will notify Licensing staff if the operation has agreed to pay a reduced penalty amount. See 7563 Processing the Outcome of a Due Process Hearing for an Administrative Penalty.
7552 Processing the Order to Pay the Administrative Penalty
March 2020
Procedure
To issue the order to pay an administrative penalty, the supervisor updates the Administrative Penalty Details page in CLASS by:
- changing the Due Process Hearing status to Waived and entering the Acceptance Letter Received date, if the operation or controlling person sent written notice accepting the penalty;
- creating and finalizing the Administrative Penalty Order; and
- sending the Administrative Penalty Order to the operation or controlling person.
If the operation or controlling person fails to respond within 30 days of receiving the Notice of Recommendation for Administrative Penalty, the supervisor leaves the Acceptance Date field blank. A date is only entered in the Acceptance Date field if the operation or controlling person sent written notice formally accepting the penalty.
The supervisor monitors for payment of the administrative penalty in CLASS.
Also see:
5240 Verification of Fee Payments
7535 Reviewing the Status of Administrative Reviews for Minimum Standard or Rule Violations Identified in the Administrative Penalty
7570 Payment and Nonpayment of Administrative Penalties
7560 Due Process Rights for Administrative Penalties
March 2020
Licensing must receive a request for a due process hearing in writing, including by email or fax, within 30 days of the date that the operation or controlling person received the Notice of Recommendation for Administrative Penalty.
When determining the due date for a request for a due process hearing, Licensing allows time for the operation or controlling person to receive notice about the recommendation through the mail.
The operation or controlling person waives the right to a due process hearing and the supervisor may process the order to impose the penalty if the operation or controlling person:
- does not accept the penalty or request a due process hearing for the administrative penalty within 30 days of receiving the notice; or
- sends the request for a hearing late enough that it is received after the due date.
40 TAC Section 745.8839
7561 Determining Whether a Request for a Due Process Hearing Meets the Due Date
March 2020
Procedure
To determine whether the request for a due process hearing for the administrative penalty is received by the due date, the Legal division:
- determines the date that Licensing mailed a notification letter to the operation or controlling person explaining the right to a due process hearing;
- adds three calendar days to that mail date to estimate the date that the operation or controlling person is presumed to have received the notification letter by regular mail;
- adds 30 calendar days to that date of presumed receipt for the request; and
- identifies the first date after that time period that is not a Saturday, Sunday, or legal holiday.
If the operation or controlling person is eligible for a due process hearing, the supervisor does not send the order to pay the penalty. The supervisor makes the following edits to the Due Process section on the Administrative Penalty Details Page in CLASS:
- changes the Hearing Status from Pending to Requested; and
- enters the date the request was received in the Date Hearing Requested field.
7562 Processing a Legal Reduction of an Administrative Penalty
March 2020
Procedure
If an operation requests due process but negotiates a settlement with the Legal division that assists CCL with enforcement matters for a reduced penalty amount in lieu of the due process hearing, the supervisor makes the following updates to the Due Process section on the Administrative Penalty Details page in CLASS:
- changes the Hearing Status field from Requested to Waived;
- selects Yes – Legal Reduced from the Penalty Amount Reduced menu; and
- enters the new penalty amount in the Reduced Penalty Amount field.
CLASS automatically updates the Amount Due of the invoice record associated with the administrative penalty.
The supervisor does not send an order. Licensing staff evaluate for payment during the next monitoring inspection or the operation's next renewal period.
7563 Processing the Outcome of a Due Process Hearing for an Administrative Penalty
7563.1 Due Process Hearing Upholds the Decision to Impose the Administrative Penalty
March 2020
Procedure
If the decision to impose an administrative penalty is upheld after the due process hearing, the supervisor makes the following updates to the Due Process section on the Administrative Penalty Details page in CLASS:
- changes the Hearing Status field from Requested to Upheld;
- enters the date of the hearing; and
- enters the date the decision was sent to the operation or controlling person.
If the amount of the administrative penalty is reduced as a result of the due process hearing, the supervisor enters the following information on the Administrative Penalty Details page in CLASS:
- selects Yes – Court Reduced from the Penalty Amount Reduced menu on the Administrative Penalty Details page in CLASS; and
- the new penalty amount in the Reduced Penalty Amount field.
CLASS automatically updates the Amount Due of the invoice record associated with the administrative penalty.
The supervisor does not send an order. Licensing staff evaluate for payment during the next monitoring inspection or the operation's next renewal period.
Also see:
5240 Verification of Fee Payment
7540 Issuing the Order to Pay an Administrative Penalty
7564 The Right to Request a Judicial Review of an Administrative Penalty
7570 Payment and Nonpayment of Administrative Penalties
7563.2 Due Process Hearing Overturns the Decision to Impose the Administrative Penalty
March 2020
Procedure
If the decision to impose the administrative penalty is overturned after the due process hearing, the supervisor makes the following updates on the Administrative Penalty Details page in CLASS:
- changes the Hearing Status field in the Due Process section from Requested to Overturned; and
- selects Stopped option in the Final Results.
CLASS automatically cancels any invoices associated with the recommendation. If an operation has already paid the administrative penalty, Licensing staff initiates a refund according to 5270 Fee Refund Guidelines.
7564 The Right to Request a Judicial Review of an Administrative Penalty
March 2020
Following a due process hearing in which a judge upheld the administrative penalty, an operation or controlling person has 30 days from receiving the results to:
- pay the penalty amount ordered; or
- file a petition for a judicial review.
The operation or controlling person may also take both actions at the same time: paying the penalty amount ordered and filing a petition for a judicial review.
Texas Human Resources Code Section 42.078(k)(1)-(3)
7564.1 If the Right to a Judicial Review is Waived
March 2020
Procedure
If the operation or controlling person does not request a judicial review or fails to make the request within the required time frame, the supervisor updates the Petition Status field on the Administrative Penalty Details to Waived and monitors for payment, if the penalty has not yet been paid.
Also see:
5240 Verification of Fee Payment
7564.2 If a Judicial Review is Requested
March 2020
Procedure
If the operation or controlling person requests a judicial review within the required time frame, the supervisor changes the Petition Status from Pending to Requested on the Administrative Penalty Details page in CLASS.
The supervisor will receive an email notification from the legal docket clerk about the outcome of the judicial review.
7564.21 Documenting the Outcome of the Judicial Review
March 2020
Procedure
If a decision is upheld or if the judge orders a new penalty amount imposed, the supervisor takes the following actions on the Administrative Penalty Details page in CLASS:
- changes the Petition Status from Requested to Upheld;
- indicates if the penalty amount is reduced by selecting Yes - Court Reduced from the Penalty Amount Reduced menu and entering the reduced amount in the Reduced Penalty Amount field; and
- monitors for payment.
Also see:
7571 When Administrative Penalties Remain Unpaid
If the decision to impose the administrative penalty is overturned, the supervisor takes the following actions on the Administrative Penalties Details page in CLASS:
- changes the Petition Status in the Due Process section from Requested to Overturned;
- reviews the Invoice and Payment Summary page to determine whether a refund should be issued; and
- selects No Further Action Required from the Final Result field.
Also see:
5240 Verification of Fee Payment
5270 Fee Refund Guidelines
7571 Overpayment of an Administrative Penalty
7570 Payment and Nonpayment of Administrative Penalties
March 2020
The operation or controlling person may pay the administrative penalty as soon as receiving the Notice of Recommendation for Administrative Penalty, but must pay no later than 30 days after:
- the order to pay the administrative penalty is received by the operation or controlling person;
- Legal sends a negotiated reduction notice;
- an administrative law judge's order to pay the administrative penalty becomes final, unless a judicial review is requested; or
- a judge conducts a judicial review and upholds the decision to impose the administrative penalty.
An invoice for the administrative penalty is attached to the Notification of Recommendation for Administrative Penalty and to the Administrative Penalty Order.
See:
5222 How an Operation Submits a Payment
7571 Overpayment of an Administrative Penalty
March 2020
Procedure
If Licensing staff determines that an operation has overpaid an administrative penalty, Licensing staff initiates a refund according to 5270 Fee Refund Guidelines.
Also see:
5240 Verification of Fee Payment
7572 When Administrative Penalties Remain Unpaid
March 2020
If the operation or controlling person does not pay the penalty amount as ordered by the due date, HHSC staff may:
- impose another enforcement action against the operation or controlling person;
- refer the matter to the Office of Attorney General for collection, if the amount owed is more than or equal to $2500; or
- refuse to renew the operation's permit during the operation's next renewal period.
26 TAC Sections 745.477; 745.8605
See:
3924.2 Verifying Fee and Administrative Penalty Payments
7572.1 Nonpayment Due to Non-Sufficient Funds
March 2020
Procedure
If a payment is returned due to non-sufficient funds, the supervisor or inspector must follow up with the operation when reviewing fees to prepare for the next monitoring inspection or permit renewal.
Also see:
5251 Payment Returned as Non-Sufficient Funds (NSF)
7573 Documenting the Final Result of an Administrative Penalty
March 2020
The supervisor enters a Final Result for every administrative penalty recommended for an operation, except if an operation paid the administrative penalty in full before receiving the Administrative Penalty Order CLASS Form 2995.
Procedure
Depending on whether the operation paid the administrative penalty and other factors outlined below, the supervisor selects one of the following options in the Final Result section on the Administrative Penalty Details page in CLASS.
Final Result Options | When to Select |
---|---|
Corrective or Adverse Action Recommended | Consultation with Legal determined corrective or adverse action was appropriate. |
No Further Action Required | The operation paid the penalty in full after receiving the order. |
Operation Closed | The operation closed before the operation paid the administrative penalty fee. |
Referred to Office of the Attorney General | The operation failed to pay a penalty greater than or equal to $2,500. |
Stopped | The penalty was:
|
7600, Adverse Actions
Revision 24-1; Effective Feb. 20, 2024
CCR may submit a Referral for Enforcement Action to Child Care Enforcement if an operation does not comply with statutes, administrative rules, minimum standards, or the specific terms of the permit.
Human Resources Code Section 42.072(a), (e)
26 TAC Sections 745.8649 and 745.8875
7610 Defining Adverse Action
Revision 24-1; Effective Feb. 20, 2024
Adverse action is taken when deficiencies pose a risk that endanger the health and safety of children, or there are indications of a continued failure by the operation to comply with statutes, administrative rules, or minimum standards.
An adverse action is any of the following:
- Denial of a permit during application status.
- Denial of a license or certificate during initial license status.
- Denial of a request for amendment of a license, certificate, or registration.
- Adverse amendment of the permit with conditions.
- Involuntary suspension, which is a type of suspension that is not the same as an automatic suspension that takes place when there is a failure to pay an annual fee.
- Revocation of a permit.
- Refusal to Renew of a full permit, which is not just when an operation fails to meet renewal requirements but an adverse action with the same general grounds as a revocation that occurs during the permit renewal process.
26 TAC Section 745.8649
7620 Criteria for Taking Adverse Action
Revision 24-1; Effective Feb. 20, 2024
Child Care Enforcement (CCE) may take adverse action when they determine that the operation must not operate, must cease operating, or that a permanent restriction or condition to the operation's permit is necessary because of an issue described in 7110 Circumstances That May Call for Enforcement Action.
7621 Criteria for Imposing a Denial
Revision 24-1; Effective Feb. 20, 2024
CCE may deny an applicant a permit for an issue identified in 7110 Circumstances That May Call for Enforcement Action if they determine that:
- a background check result makes an applicant ineligible for a permit;
- the operation does not demonstrate the ability to comply with statutes, administrative rules, or minimum standards during the initial permit period, if applicable;
- the results of a public hearing make an applicant ineligible for a permit;
- the operation presents an immediate threat to the health or safety of children; or
- the applicant is otherwise ineligible for a permit because of an issue described in 7110 Circumstances That May Call for Enforcement Action.
26 TAC Sections 745.8605 and 745.8650
References:
3710 Denial Because of Failure to Comply With Minimum Standard Rules, Administrative Rules, or Law
3713 Compliance History Indicates Inability to Meet Minimum Standard Rules
7110 Circumstances that May Call for Enforcement Action
10760 When to Deny or Revoke a Permit Based on Criminal History or Child Abuse or Neglect History
Appendix 7000-1: Factors to Consider for Enforcement Actions.
7622 Criteria for Imposing an Adverse Amendment
Revision 24-1; Effective Feb. 20, 2024
CCE may impose an adverse amendment on an operation if a circumstance described in 7110 Circumstances That May Call for Enforcement Action exists, and if they determine that:
- an amendment on the permit will mitigate any risks;
- the amendment is the most effective enforcement action for addressing risk at the operation; and
- the operation can follow the restrictions or conditions of the amendment.
26 TAC Sections 745.8605 and 745.8651
7623 Criteria for Imposing an Involuntary Suspension
Revision 24-1; Effective Feb. 20, 2024
CCE may impose an involuntary suspension on an operation if a circumstance described in 7110 Circumstances That May Call for Enforcement Action exists, and if they determine that:
- the operation will pose a danger or threat of danger to the health or safety of children in the operation's care until the issue is resolved;
- the operation cannot correct the issue while children are in care, but can do so during a specific period of time;
- the operation can make the necessary corrections while the permit is suspended; and
- there are no additional concerns about the operation's compliance history that would make revocation a more appropriate enforcement action for the health or safety of children.
26 TAC Sections 745.8605 and 745.8652
7624 Criteria for Imposing a Revocation
Revision 24-1; Effective Feb. 20, 2024
CCE may revoke an operation's permit if an issue described in 7110 Circumstances That May Call for Enforcement Action exists, and if they determine that:
- the operation is ineligible for probation;
- CCE cannot address the risk at the operation by imposing probation or involuntary suspension;
- a background check result or a finding of abuse or neglect makes the permit holder ineligible for a permit; or
- revocation is otherwise necessary to address the issue described in 7110 Circumstances That May Call for Enforcement Action.
26 TAC Sections 745.8605 and 745.8654
7625 Criteria for Refusing to Renew a Permit
Revision 24-1; Effective Feb. 20, 2024
CCE may refuse to renew an operation’s permit if an issue described in 7110 Circumstances That May Call for Enforcement Action exists, and if they determine that:
- the operation is ineligible for probation;
- risk at the operation cannot be addressed by imposing any other type of enforcement action;
- a background check result or a finding of abuse or neglect makes the permit holder ineligible for a permit; or
- refuse to renew is otherwise necessary to address the issue described in 7110 Circumstances That May Call for Enforcement Action.
CCE staff may impose the refusal to renew adverse action type at any time between the time the permit renewal period begins and before CCR renews the permit, including after the renewal period expires. The action may be based on grounds that occurred before or after the renewal period expires. If CCE is revoking the operation’s permit before or after the renewal period expires, CCE does not also have to refuse to renew the permit.
26 TAC Sections 745.8605 and 745.8655
7626 Operating Pending Appeal of an Adverse Action
Revision 24-1; Effective Feb. 20, 2024
An operation:
- may not operate pending appeal of a denial or suspension; but
- may operate pending appeal of a revocation or refusal to renew its permit, unless CCE determines health or safety concerns exist that requires the operation to stop operating; and
- if CCE makes such a determination, the operation may only continue to operate pending appeal of the revocation or refusal to renew if a judge grants injunctive relief allowing the operation to remain open.
26 TAC Sections 745.8609 and 745.8655
Human Resources Code Section 42.072(e)
7630 Taking Adverse Action
Revision 24-1; Effective Feb. 20, 2024
Procedure
When imposing any adverse action, HHSC staff:
- determine that an adverse action is appropriate; and
- notify the permit holder or applicant about the action.
Submitting the Referral for Enforcement Action to Child Care Enforcement
If CCR staff determine that Child Care Enforcement (CCE) should impose an adverse action on an operation, the inspector, supervisor, program administrator, and regional director meet to discuss if the regional director will begin the referral process to CCE. CCR staff use Appendix 7000-1 as an aid to determine if adverse action is appropriate (7620 Criteria for Taking Adverse Action).
Based on this discussion CCR staff take the following actions:
If | Then |
---|---|
the regional director agrees with submitting the Referral for Enforcement Action to CCE | the regional director begins the CCE referral process. The inspector documents a summary of the discussion and CCR’s decision as a Chronology in CLASS. |
the regional director does not agree with submitting the Referral for Enforcement Action to CCE | CCR staff determine if less serious measures should be taken to reduce risk at the operation. The inspector documents a summary of the discussion and CCR’s decision as a Chronology in CLASS. |
If the refusal to renew, revocation, suspension or denial involves a state-operated operation, the regional director also notifies the associate commissioner of CCR:
- after the Referral for Enforcement Action is submitted to CCE; and
- at the time CCE decides to impose adverse action.
Reference 2280 State-Operated Facilities Exempt from Licensure
Child Care Enforcement’s Decision
After CCR submits the Referral for Enforcement Action, CCE notifies CCR of the decision of which enforcement action, if any, that CCE will recommend or impose on the operation.
If CCE decides to impose adverse action, CCE drafts the written notification to the operation and shares the final written notification with CCR staff to review.
Notify the Permit Holder or Applicant About the Action
HHSC staff:
- notify the permit holder or applicant about the intent to deny, refuse to renew, revoke, suspend, or amend a permit by sending CLASS Form 2880 Intent to Impose Adverse Action letter; and
- explains in the notification that the permit holder or applicant has the right to request an administrative review within 15 days after the permit holder receives CLASS Form 2880.
References:
Referral Instructions for Probation, Adverse Actions, and Judicial Actions job aid located on CCR’s SharePoint site
5600 Administrative Reviews
7631 Notice of Intent to Deny, Refuse to Renew, Revoke, or Suspend
7632 Administrative Review for Adverse Action
Notify Controlling Persons About the Intent to Designate
When revoking a permit, CCE staff:
- determine the controlling persons to designate; and
- notify the controlling person about the intent to designate by sending CLASS Form 2762 Intent to Designate.
Reference 7770 Administrative Review and Due Process Hearing for a Designated Controlling Person.
Notify the Permit Holder or Applicant About the Results of an Administrative Review
If the permit holder or applicant requests an administrative review, the CCE staff person conducting the review notifies the permit holder or applicant about the decision to deny, refuse to renew, revoke, suspend, or adversely amend the permit after the administrative review is completed. Reference 7632 Administrative Review for Adverse Action.
If the CCE staff person conducting the review upholds the adverse action, and the permit holder or applicant appeals the decision, the CCE staff person notifies the permit holder about the final decision to deny, refuse to renew, revoke, suspend, or adversely amend the permit after the opportunity to appeal has been exhausted. Reference 7633 Notice of Decision to Deny, Revoke, or Suspend an Application or Permit.
Documentation
CCE staff document all adverse actions in CLASS and generate all adverse action letters from CLASS.
7631 Notice of Intent to Deny, Refuse to Renew, Revoke, or Suspend
Revision 24-1; Effective Feb. 20, 2024
CCE drafts and finalizes CLASS Form 2880 Intent to Impose Adverse Action letter. The purpose of the letter is to:
- notify the permit holder or applicant about CCE’s intent to deny, refuse to renew, revoke, or suspend the permit; and
- explain the basis for the action.
No denial, refusal to renew, revocation, or suspension is effective unless HHSC:
- notifies the permit holder or applicant in person or by both regular and certified mail about the alleged deficiencies warranting action; and
- gives the permit holder or applicant an opportunity through an administrative review to retain the permit by showing compliance with statutes, administrative rules, and minimum standards.
Texas Government Code Section 2001.054
26 TAC Section 745.8609
7631.1 When Immediate Intervention Is Warranted at an Operation
Revision 24-1; Effective Feb. 20, 2024
If CCR determines that circumstances at the operation are extreme enough to warrant immediate intervention, such as judicial action, the regional director or program administrator begins the CCE referral process simultaneously with the mailing or delivery of CLASS Form 2880.
Reference 7740 Injunctive Relief
7631.2 Requirements if the Action Taken is Refusal to Renew or Revocation and There is Risk to the Health or Safety of Children
Revision 24-1; Effective Feb. 20, 2024
If CCE intends to refuse to renew or revoke an operation's permit and determines that the operation poses an immediate risk to the health or safety of children, CCE staff:
- select the Not Allowed to Operate checkbox on CLASS Form 2880 Intent to Impose Adverse Action letter; and
- document in the textbox how the operation poses an immediate danger to a child’s safety, health, or both with information included as outlined under 26 TAC Section 745.751.
Procedure
On the same day that CCR staff receive CLASS Form 2880 from CCE, they review the letter to determine if CCE:
- intends to refuse to renew or revoke the relevant operation’s permit; and
- has also determined that the operation poses an immediate risk to children and must stop operating.
If CCE has determined that the operation must stop operating, then:
- CCR staff provide immediate notification to the operation, 7631.4 Authorizing and Delivering the Intent to Impose Adverse Action Letter; and
- the program administrator or designee changes the operation’s main page in CLASS by selecting the Do not display on public/provider website checkbox.
Human Resources Code Section 42.072(e)
26 TAC Section 745.8875
7631.3 Following Up on Notification Requirements for Informing the Public About an Adverse Action
Revision 24-1; Effective Feb. 20, 2024
Procedure
The inspector follows up to ensure that the operation has:
- notified the parents; and
- sent the copies of the certified return receipts to CCR.
Reference 26 TAC Section 745.8656
7631.4 Authorizing and Delivering the Intent to Impose Adverse Action Letter
Revision 24-1; Effective Feb. 20, 2024
CCE must sign CLASS Form 2880 Intent to Impose Adverse Action letter.
CCE sends the letter to the operation on the date that CCE saves the letter as final in CLASS.
The regional director or designee must deliver the letter to the permit holder or applicant in person if:
- CCE cannot deliver the letter; or
- the operation is required to close immediately (7631.41 When the Operation is Required to Close Immediately).
In addition to sending CLASS Form 2880 to CCR staff for review, CCE also sends a copy of the letter to the following, when applicable:
- DFPS residential contract manager;
- the Child and Adult Care Food Program (CACFP); and
- the Texas Workforce Commission Local Workforce Board.
Procedure
When the regional director receives a copy of CLASS Form 2880, the reginal director sends a copy of the letter to the:
- program administrator;
- supervisor;
- inspector; and
- CBCU inspector.
26 TAC Section 745.8657
7631.41 When the Operation is Required to Close Immediately
Revision 24-1; Effective Feb. 20, 2024
Under statute, an operation cannot operate pending the appeal of a denial or suspension. Moreover, an operation cannot operate pending appeal of a revocation or refusal to renew if CCE determines that the operation poses an immediate threat to the health or safety of children, unless the operation gets an injunction allowing the operation to stay open. CCR staff are responsible for providing immediate notification to the operation by personally delivering CLASS Form 2880 Intent to Impose Adverse Action letter to the permit holder or applicant.
After CCR staff personally deliver CLASS Form 2880, the CCR staff person who delivered the letter documents the name of the person at the operation who received the notification as a Chronology in CLASS using the Corrective/Adverse Action category type.
If the operation is located at a distance where CCR staff are not able to immediately hand deliver CLASS Form 2880, CCE staff:
- notify the permit holder or applicant by phone;
- send the letter by email or fax; and
- send the letter by both regular and certified mail, with a return receipt requested.
Human Resources Code Section 42.072
7631.5 Follow-Up After Delivery of Notice of Intent to Take Adverse Action When Operation Required to Close Immediately
Revision 24-1; Effective Feb. 20, 2024
Procedure
If the operation must close immediately, the inspector must conduct a follow-up inspection at the operation within 15 days after CLASS Form 2880 Intent to Impose Adverse Action letter has been sent or delivered to the operation. This inspection is to determine if the operation is continuing to care for children.
If no one is present at the operation, the inspector:
- documents the inspection type as Follow-up, if the inspector observes enough to confirm the operation is no longer caring for children;
- documents the inspection type as Attempted, if the inspector is not able to determine if the operation is continuing to care for children;
- documents the observations made during the inspection as a Chronology in CLASS using the Monitoring category type; and
- consults with the supervisor to determine the next course of action.
If the operation continues to operate, the inspector informs the supervisor, who notifies the program administrator and regional director. The regional director then begins the CCE referral process (7740 Injunctive Relief).
7632 Administrative Review for Adverse Action
Revision 24-1; Effective Feb. 20, 2024
If the permit holder or applicant disagrees with the adverse action imposed, the person may request an administrative review within 15 days of receiving the finalized CLASS Form 2880 Intent to Impose Adverse Action letter.
References:
5612 Waiving the Right to an Administrative Review
5613 Receiving a Request for an Administrative Review
7630 Taking Adverse Action
26 TAC Sections 745.8805; 745.8613 and 745.909(b)
7632.1 When an Adverse Action is Overturned at an Administrative Review
Revision 24-1; Effective Feb. 20, 2024
If, after conducting the administrative review, CCE overturns the adverse action, CCE mails a letter advising the permit holder or applicant about the decision and updates the Provider Adverse Action page in CLASS.
For the procedures on providing due process for a person designated as controlling as a result of a revocation, reference 7773.1 Adverse Action Overturned or Stopped.
7632.2 Adverse Action is Upheld at an Administrative Review or No Administrative Review is Requested
Revision 24-1; Effective Feb. 20, 2024
CCE notifies the permit holder or applicant by sending CLASS Form 2878 Decision to Impose Adverse Action letter and updates the Provider Adverse Action page in CLASS if:
- CCE conducts the administrative review and upholds the adverse action; or
- the operation does not request an administrative review for the adverse action.
References:
Administrative Reviews, 5600
Notice of Decision to Deny, Revoke, or Suspend an Application or Permit, 7633
Providing a Due Process Hearing for a Designated Controlling Person, 7773
7633 Notice of Decision to Deny, Revoke, or Suspend an Application or Permit
Revision 24-1; Effective Feb. 20, 2024
If, after the opportunity for administrative review, CCE decides to deny, refuse to renew, revoke, or suspend a permit, CCE:
- sends a certified letter to the permit holder or applicant to notify the permit holder or applicant about the decision;
- notifies the permit holder or applicant about the decision to deny, refuse to renew, revoke, or suspend by sending CLASS Form 2878 Decision to Impose Adverse Action letter by both regular and certified mail; and
- notifies other state agencies, if applicable (7633.2 Notifying HHSC Staff and Other State Agencies).
26 TAC Section 745.8609
If CCE upholds the decision to deny, refuse to renew, revoke, or suspend an application for a permit, CCR updates the operation’s status in CLASS (7633.3 Updating the Operation's Status in CLASS).
7633.1 Requirements if There is Immediate Risk to Children
Revision 24-1; Effective Feb. 20, 2024
Procedure
The program administrator or designee changes the operation's main page in CLASS by selecting the check box Do not display on public/provider website to reflect that the operation must not be posted on the Search Texas Childcare public website.
If the operation poses an immediate threat to the health or safety of children, the inspector and supervisor are responsible for providing immediate notification to the operation by personally delivering CLASS Form 2878 Decision to Impose Adverse Action letter to the permit holder or applicant.
If the inspector personally delivers CLASS Form 2878 Decision to Impose Adverse Action letter, the inspector documents the following as a Chronology in CLASS using the Corrective/Adverse Action category type:
- The dates that the letter was delivered to and received by the operation.
- The name of the person at the operation who received the notification.
If the operation is located at a distance where the inspector is not able to immediately hand-deliver the letter, CCE staff:
- notify the permit holder or applicant by phone;
- send the letter by email or fax; and
- send the letter by both regular and certified mail, with a return receipt requested.
References:
7631.2 Requirements if the Action Taken is Refusal to Renew or Revocation and There is Risk to the Health or Safety of Children
Human Resources Code Section 42.072(e)
26 TAC Section 745.8875
7633.2 Notifying HHSC Staff and Other State Agencies
Revision 24-1; Effective Feb. 20, 2024
Procedure
In addition to sending CLASS Form 2878 Decision to Impose Adverse Action letter to CCR for review, CCE also sends a copy of the letter to the following, when applicable:
- the Texas Workforce Commission Local Workforce Board;
- the Child and Adult Food Care Program; and
- DFPS residential contract manager.
When the regional director receives a copy of CLASS Form 2880, the regional director sends a copy of the letter to the:
- program administrator;
- supervisor;
- inspector; and
- CBCU inspector.
7633.3 Updating the Operation's Status in CLASS
Revision 24-1; Effective Feb. 20, 2024
Procedure
When CCE denies, suspends, refuses to renew, or revokes an operation's permit, the inspector:
- updates the Operation Main page in CLASS by changing the Operating Status to No;
- updates the Effective Date to reflect the date CLASS Form 2878 Decision to Impose Adverse Action letter was finalized in CLASS; and
- notifies the program administrator or designee to check the Do not display on public/provider site check box.
7634 Inspecting During the Suspension, Refusal to Renew, Revocation, or Denial Process
Revision 24-1; Effective Feb. 20, 2024
CCR staff consult with the regional director, director of day care operations, or director of residential care operations, as appropriate, and the Child Care Licensing Legal Enforcement Department to determine a plan for inspecting during the refusal to renew, revocation, suspension or denial process.
The purpose of inspecting during this process is to ensure the safety of children. Because the operation still has children in care during this time, CCR continues to have monitoring responsibility.
Procedure
Inspection procedures are described in 7731 Regulation During Appeal Process.
7635 Sending an Operation Final Notice of Suspension, Refusal to Renew, Revocation, or Denial
Revision 24-1; Effective Feb. 20, 2024
CCE notifies the applicant or permit holder that the decision to refuse to renew, revoke, suspend, or deny the permit is final when:
- the opportunity to request a due process hearing has passed; or
- the decision is upheld through due process.
Human Resources Code Section 42.077(a)
26 TAC Section 745.8659
CCE:
- sends the CLASS Form 2895 Final Adverse Action letter to the permit holder or applicant by both regular and certified mail, with a return receipt requested; and
- updates the due process fields in CLASS to ensure that the revocation or suspension is reflected on the HHSC public website.
References:
5612 Waiving the Right to Administrative Review
7632 Administrative Review for Adverse Action
7635.1 Additional Actions Taken by CCR Staff When Adverse Action Is Final
Revision 24-1; Effective Feb. 20, 2024
Procedure
After receiving CLASS Form 2895 Final Adverse Action letter from CCE, the regional director sends a copy of the letter to the:
- program administrator;
- supervisor;
- inspector; and
- CBCU inspector.
7636 Follow-Up to Final Notice of Suspension, Revocation, or Denial
Revision 24-1; Effective Feb. 20, 2024
Procedure
Within two weeks after the final notice of refusal to renew, revocation, suspension, or denial is mailed, the inspector conducts a follow-up inspection to:
- determine whether the operation caring for children; and
- obtain the permit if it has not been returned.
If the inspector previously confirmed closure of the operation after delivery of CLASS Form 2880 Intent to Impose Adverse Action letter, then a follow-up inspection is not necessary (7631.5 Follow-Up After Delivery of Notice of Take Adverse Action When Operation Required to Close Immediately
If no one is present at the operation, the inspector:
- documents the inspection type as Follow-up, if the inspector observes enough to confirm the operation is no longer caring for children;
- documents the inspection type as Attempted, if the inspector is not able to determine if the operation is continuing to care for children;
- documents the observations made during the inspection as a Chronology in CLASS using the Monitoring category type; and
- consults with the supervisor to determine the next course of action.
If the operation is caring for children, the inspector informs the supervisor, who notifies the regional director. The regional director then begins the CCE referral process (7740 Injunctive Relief).
If the refusal to renew, revocation, suspension, or denial involves a state-operated operation, the regional director notifies the associate commissioner of CCR (2280 State-Operated Facilities Exempt From Licensure).
7700, Legal Actions When an Operation Disagrees with the Actions of an Inspector
Revision 24-1; Effective Feb. 20, 2024
If an operation disagrees with certain actions taken by HHSC, the operation may request an administrative review.
If HHSC imposes an adverse action or an administrative penalty against an operation, the operation may request a hearing before an administrative law judge (ALJ) from the State Office of Administrative Hearings (SOAH).
Child Care Enforcement (CCE) may request injunctive relief. This includes restraining orders and civil penalties when necessary to protect children.
An operation may seek injunctive relief from a district court in Travis County or from the county where the operation is located. Reference 7733 Suit Filed.
Human Resources Code Section 42.072(e)
26 TAC Sections 745.8613, 745.8835, 745.8837, 745.8681 and 745.8877
Due Process Hearing
A due process hearing is a hearing held by the SOAH to determine if an HHSC decision or action was appropriate under applicable statute or rule. The following HHSC decisions or actions can be disputed during a due process hearing:
- the imposition of an adverse action against an operation, subject to the limitations outlined in 26 TAC Section 745.8835(b);
- a denial, refusal to renew, suspension, or revocation of an administrator's license;
- a Central Registry finding of child abuse, neglect, or exploitation that has not been sustained when the subject receives notification from the CBCU of the finding;
- the designation of a person as a controlling person;
- a determination that a person poses an immediate threat or danger to the health or safety of children because of:
- a juvenile adjudication; or
- another issue unrelated to criminal history or a Texas Department of Family and Protective Services child abuse, neglect, or exploitation investigation; or
- the imposition of an administrative penalty against an operation or controlling person.
References:
7730 Due Process Hearings
7500 Administrative Penalties
Human Resources Code Section 42.078
Texas Government Code, Chapter 2001
Combination Hearing
A combination hearing is a single due process hearing held by SOAH where multiple HHSC decisions and actions that are related to each other are addressed.
For example, a hearing could address both:
- a DFPS finding of abuse, neglect, or exploitation; and
- CCE’s decision to revoke an operation’s permit based on the DFPS finding.
Reference 26 TAC Section 745.8849
Injunctive Relief
An injunction is a legal action by a district court. CCE may seek an injunction enjoining a permit holder from operating. A permit holder may seek injunctive relief from HHSC to continue operating.
References:
7740 Injunctive Relief
7733 Suit Filed
7760 Settlement of Legal Case
7710 Reserved for Future Use
Revision 23-3; Effective Sept. 22, 2023
7720 Hearings Concerning Child Abuse, Neglect, or Exploitation Findings
September 28, 2018
A person has an opportunity to request a due process hearing when:
- DFPS finds that the person abused, neglected, or exploited a child following in a child care operation, and the finding is upheld at the administrative review or the person waives the review; or
- HHSC conducts a background check on the person and seeks to release that DFPS has designated the person as a perpetrator of child abuse, neglect, or exploitation.
The finding may also be the basis for an enforcement action for which the person may request a due process hearing. In that situation, the person will have a hearing related to the finding and the consequent enforcement action at the same time. An HHSC attorney will represent HHSC at the hearing related both to the finding and the enforcement action.
Procedure
If the finding of an investigation conducted by DFPS is to be the basis for a Licensing action, and that investigation finds that a person has abused, neglected, or exploited a child, Licensing may offer a release hearing if the following has occurred:
- the investigating program has offered an Administrative Review of Investigation Findings (ARIF) and the person has waived the review either in writing or by failing to request the review within the required time period; or
- the investigating program has held an ARIF and the program’s finding has been upheld.
7721 When a Minor Turns Eighteen
September 28, 2018
Licensing staff follow policy and procedures relating to adults who were designated as a perpetrator of abuse or neglect once a minor who was designated as a perpetrator of abuse or neglect:
- turns 18 years old; and
- has received notification of the opportunity to a due process hearing to challenge the finding.
7722 Sustaining a Perpetrator in IMPACT
September 28, 2018
CBCU staff sustain a perpetrator in the Information Management Protecting Adults and Children in Texas (IMPACT) if:
- HHSC conducts a background check on a person who has a Child Protective Services or Adult Protective Services finding for the abuse or neglect of a child; and
- the person does not make a timely request for a due process hearing to challenge the finding.
Procedure
CBCU staff sustains the perpetrator in the Administrative Review/Appeal stage in IMPACT by:
- choosing FPS Position Upheld from the Result drop-down menu;
- documenting the outcome, in detail, in the Narrative field;
- selecting the check box by the indicator for Change Role to Sustained Perpetrator; and
- entering the date the individual was notified of the decision.
See internal document, Process CR Checks for Licensing Job Aid, for additional details.
Exception
If the individual who is designated as a perpetrator of abuse or neglect is a minor and the due process hearing was waived, CBCU staff do not sustain the minor as a perpetrator in IMPACT.
7730 Due Process Hearings
Revision 24-1; Effective Feb. 20, 2024
The following people may request due process hearings about certain HHSC decisions or actions in writing by certified or regular mail, email or fax:
- an applicant, owner, partner, member of the governing body, director, licensed administrator, or designee of an operation;
- a person designated as a controlling person;
- a holder of, or applicant for, an administrator’s license;
- a background check subject; and
- a person determined to pose an immediate threat or danger to the health or safety of children.
When HHSC staff receive a due process request, staff send the request to the appropriate Child Care Licensing Legal Enforcement Department contact.
26 TAC Sections 745.909, 745.8613, 745.8835 and 745.8837
When an Applicant, Owner, Partner, Member of the Governing Body, Director, Licensed Administrator, or Designee of an Operation May Request a Due Process Hearing
The applicant, owner, partner, member of the governing body, director, licensed administrator, or designee of an operation may request a due process hearing on a CCE decision intended to:
- deny, revoke, refuse to renew, or suspend a permit;
- impose an administrative penalty against the operation; or
- place a new or additional restriction or condition on the permit after initial issuance.
When a Controlling Person May Request a Due Process Hearing
A person designated as controlling may request a due process hearing on a decision regarding the designation.
A controlling person may request a due process hearing when an administrative penalty is being imposed against the person.
When a Licensed Administrator or Applicant for an Administrator’s License May Request a Due Process Hearing
A licensed administrator or applicant for an administrator’s license may request a due process hearing if Credentialing and Registry Enforcement decides to deny, revoke, refuse to renew, or suspend the administrator’s license.
When a Background Check Subject May Request a Due Process Hearing
A background check subject may request a due process hearing to challenge:
- a Central Registry finding of child abuse, neglect or exploitation that has not been sustained when the subject receives a notification from the Centralized Background Check Unit (CBCU) of the finding; or
- a determination by CBCU staff that the person’s presence presents an immediate threat to the health or safety of children for a reason that is not related to a finding of abuse, neglect or exploitation.
Waiver of Due Process Rights
Due process rights for a hearing are waived by the operation or person, if:
- the rights were not requested per 26 TAC Section 745.8837; or
- the operation or person submits a written statement to the Child Care Licensing Legal Enforcement Department waiving the right to a due process hearing.
If the operation or person waives due process rights by not requesting a hearing per the rules, the HHSC decision or action, or both, is effective the day after the date that the option to request a hearing expires, unless the due process hearing was offered due to the designation of a controlling person.
If the due process hearing was offered due to the designation of a controlling person, and the controlling person does not request a hearing, the HHSC decision is effective on:
- the day after the date that the revocation is final; and
- after the controlling person has waived his or her rights to a due process hearing.
If the operation or person waives due process rights by submitting a written statement waiving the right to a hearing, the HHSC decision or action will be effective on the date HHSC receives the written request.
26 TAC Sections 745.907(b) and 745.8855
Review 7770 Administrative Review and Due Process Hearing for a Designated Controlling Person.
Expediting the Appeals Process
If an applicant or permit holder asks to expedite an HHSC decision, adverse action, or both, the inspector directs the applicant or permit holder to send HHSC a written waiver of the right to a due process hearing before the 30-day time frame has expired.
The HHSC decision or action is effective on the date that HHSC receives the written waiver.
26 TAC Section 745.8855
State Office of Administrative Hearings
If granted, the request for an appeal is forwarded to the State Office of Administrative Hearing (SOAH) by the docket clerk for the Child Care Licensing Legal Enforcement Department.
Operating During the Appeal Process
An operation cannot continue to operate pending appeal of a denial or a suspension. An operation may continue to operate during the appeal of a revocation or refusal to renew, unless CCE determines that the operation poses an immediate risk to the health or safety of children. If CCE informs the operation of such a determination, the operation cannot continue to operate pending appeal unless a district court in Travis County or in the county where the operation is located overrules CCE’s determination of risk and issues an injunction allowing the operation to stay open pending appeal.
Human Resources Code Sections 42.072(e); 42.072(d-1)
26 TAC 745.8835, 745.8873, 745.8875 and 745.8879
Appeals Process
When a person listed under 7730 Due Process Hearing requests an appeal, Child Care Licensing Legal Enforcement Department staff determines if the request is timely. If the request is timely, the enforcement department submits a request to SOAH, which will then assign a docket number and an administrative law judge to handle the case.
Once the hearing has been docketed, Child Care Licensing Legal Enforcement Department staff track time lines, and arrange for discovery and amended notices per the relevant procedural rules.
The enforcement attorney may ask HHSC staff to assist in presenting testimony or providing background information or evidence to be used at the hearing.
26 TAC Sections 745.8839, 745.8841 and 745.8843
Documentation
On the applicable due process page in CLASS, Child Care Enforcement staff document:
- the status of the due process hearing; and
- information on the hearing.
7731 Regulation During Appeal Process
September 28, 2018
Procedure
After a request for an appeal has been granted, the inspector:
- confers with the Licensing attorney about monitoring the operation; and
- establishes a schedule so that inspections continue (inspections may be unannounced).
After inspecting, the inspector sends a letter to the permit holder stating the concerns, the corrections required to address the concerns, and the time limits within which the corrections should be made. If appropriate, the inspector discusses with the permit holder the fact that corrections are needed or Licensing may pursue an injunction.
If hazards are noted or conditions in the operation warrant it, the director and the Licensing attorney confer to determine if a request for legal action is necessary.
The inspector continues to inspect the operation as long as the operation operates.
7732 When an Administrative Law Judge Issues a Final Decision on an Appeal
Revision 24-1; Effective Feb. 20, 2024
Procedure
When a final decision is issued on an appeal and the administrative law judge (ALJ) upholds the adverse action, the district director or designee sends the appellant the Final Adverse Action letter (CLASS Form 2895) as notification, if:
- the appellant requested a rehearing and the request was denied; and
- the appellant does not then file suit in a district court within 30 days after the decision.
The director or designee:
- explains in the letter that the decision to deny, suspend, or revoke the permit is final per the requirements in the Human Resources Code, Section 42.072; and
- sends the letter to the appellant by both regular and certified mail, with a return receipt requested.
If the appellant has a permit but has not yet returned it to CCR, the appellant must return it within five calendar days of receiving the letter.
In the case of a denial or revocation of a permit, the appellant whose permit has been denied or revoked may not apply for another permit before the fifth anniversary after the adverse action takes effect.
Operating without a permit is a violation of the law and results in legal action.
The CCR director sends copies of the final letter to the associate commissioner of CCR and the CCR attorney.
Reference 7635 Sending an Operation Final Notice of Suspension, Refusal to Renew, Revocation, or Denial.
Follow Up
Within two weeks after the letter is sent to the operation, the inspector conducts a follow-up inspection. This inspection is to determine if the operation is continuing to care for children and obtain the license, certification, registration, or listing if the operation has not returned it. Reference 7636 Follow-Up to Suspension, Revocation, or Denial.
7733 Suit Filed
September 28, 2018
If the appellant files suit in a district court, the person may continue to operate during the appeal of a revocation unless the revocation was based on the operation posing an immediate risk to the health or safety of children. An operation cannot operate pending the appeal of a denial.
The inspector notifies the appellant in the final denial or revocation letter:
- of the violations of minimum standards that caused the denial or revocation; and
- that the operation poses an immediate risk to the health or safety of children.
The operation may seek injunctive relief from a district court in Travis County or in the county in which the operation is located to allow operation during the pendency of a district court appeal of the revocation.
The court may grant injunctive relief allowing the operation to operate pending appeal of the revocation only if the court finds that the child care operation does not pose a health or safety risk to children.
A court granting injunctive relief under this section has no other jurisdiction over an appeal of final Licensing action unless conferred by Chapter 2001, Texas Government Code.
Texas Human Resources Code §42.072
Texas Government Code, Chapter 2001
40 TAC §§745.8877; 745.8879
7740 Injunctive Relief
December 2009
Injunctive relief may be requested to:
- obtain a temporary restraining order; or
- obtain a temporary or permanent injunction.
7741 Temporary Restraining Order
December 2009
Procedure
The Licensing attorney may request from the state attorney general a temporary restraining order, valid for 14 days, pending a temporary injunction hearing.
7742 Injunction
December 2009
The Licensing attorney may request an injunction from the state attorney general. It may be requested at any time if there is substantial risk of immediate harm to the health and safety of children in care, or an operation subject to regulation is operating illegally and has failed to submit an application.
Texas Human Resources Code §42.074
40 TAC §745.8681
Procedure
The inspector:
- makes the decision to request the temporary restraining order (TRO) and injunction with the supervisor, director, and Licensing attorney;
- completes a Form 2883 Affidavit as listed in 7637 Emergency Suspension and Closure; and
- sends it to the Licensing attorney along with documentation necessary to show why the operation should cease operating immediately.
The Licensing attorney will ask the HHSC liaison with the Attorney General's Office to request an injunction from the Attorney General's Office.
7742.1 Following Up an Injunction
September 28, 2018
After an operation has been served an injunction, the inspector, with the concurrence of the attorney representing HHSC, develops a plan for follow-up.
Procedure
The inspector:
- follows up to determine if the court order is being obeyed. If it is not, the inspector contacts a Licensing attorney; and
- document violations of the court order and sends a copy to the state office Licensing attorney.
The Licensing attorney may file for contempt in district court, when appropriate, for violations of temporary restraining orders, injunctions, and appeals.
7750 Civil and Criminal Penalties
September 28, 2018
Civil and criminal penalties are considered in consultation with the Licensing attorney and the Office of the Attorney General.
The Human Resources Code, §42.075 (Civil Penalty), provides for civil penalties for any person who:
- threatens serious harm to a child in an operation by violating laws, administrative rules, or licensing minimum standard rules;
- violates a provision of the law, administrative rules, or licensing minimum standard rules three or more times within a 12 month period;
- places a public advertisement for an unlicensed operation;
- knowingly fails to meet or maintain any criterion of an exemption and engages in activities that require a license or registration; or
- fails to inform the department of a change in status and knows the change in status requires the person to be licensed or registered.
The Human Resources Code, §42.076, provides for criminal penalties:
- Section 42.076(a) states that a person who operates a child care operation or child placing agency without a license commits a Class B misdemeanor.
- Section 42.076(b) states that a person who operates a family home without a required listing or registration commits a Class B misdemeanor.
- Section 42.076(c) states that a person who places a public advertisement for an unlicensed facility or an unlisted or unregistered family home commits a Class C misdemeanor.
The Human Resources Code, §42.056 provides for civil penalties (a Class B misdemeanor) if:
- the director, owner, or operator of a child care center knowingly:
- fails to submit to Licensing information about a person for use in background checks, and
- employs the person at the child care center or otherwise allows the person to regularly or frequently stay or work at the child care center while children are being provided care; or
- the director, owner, or operator of a day care center receives notice from Licensing that, based on the results of a person’s background check, the person may not be present at the child care center, and the director, owner, or operator knowingly:
- employs the person at the child care center, or
- otherwise allows the person to regularly or frequently stay or work at the child care center while children are being provided care.
Human Resources Code §42.0761 provides for penalties (a Class B misdemeanor), when an owner or operator of a child care center knowingly operates the child care center:
- without a director who meets the qualifications of a director; or
- without the routine presence of a director during the child care center’s hours of operation.
Texas Human Resources Code §§42.056; 42.075; 42.076; 42.0761
7760 Settlement of Legal Case
September 28, 2018
After the attorney general has accepted a case, agreeing to represent Licensing, the attorney general may suggest a settlement.
If the attorney general contacts the state office HHSC litigation counsel suggesting proposed settlement terms, the litigation counsel consults with the district director before making a decision about the settlement of a legal case involving temporary restraining orders, injunctions, or appeals of Licensing decisions to district courts.
7770 Administrative Review and Due Process Hearing for a Designated Controlling Person
December 2012
Within seven days of notifying a permit holder about the intent to revoke the permit of a child care operation, the inspector designates the controlling persons whose actions contributed to the revocation of the operation’s permit. See 5400 Controlling Person.
The inspector may designate a person at an operation as controlling, regardless of whether the person’s name is submitted by the operation, if the person meets the definition of a controlling person.
40 TAC §745.905
Each person designated as controlling is offered an opportunity to review and appeal the designation through the following:
- An administrative review conducted by Licensing staff
- A due process hearing conducted by the State Office of Administrative Hearings (SOAH)
At Licensing’s discretion, the administrative review regarding the designation may be combined with the review regarding the revocation of the operation’s permit. In addition, the administrative law judge may combine SOAH hearings that involve issues related to the same decision.
40 TAC §745.909
A designated controlling person becomes a sustained controlling person when the revocation is final and:
- when the person has waived due process rights regarding the designation; or
- when the designation was upheld after exhausting due process rights.
40 TAC §745.907(b); 745.8855
7771 Choosing the Persons to Designate as Controlling
September 2012
After an inspector notifies a permit holder about the intent to revoke an operation’s permit, the inspector designates each controlling person who actively served as a controlling person when the events occurred that led to the revocation. The person may be designated, even if he or she is not actively serving as controlling person when the revocation is initiated.
40 TAC §745.905
Procedure
In the CLASS on the Designate Controlling Persons page, the inspector:
- evaluates the list of controlling persons who have actively been associated with the operation within the two years preceding the adverse action (including the controlling persons who are presently inactive);
and - designates the controlling person by selecting the check box in the Designated column;
or - selects the appropriate reason from the drop-down box in the Reason not Designated column.
Reasons Not to Designate a Controlling Person
The following chart explains when not to designate a controlling person:
Reason Not Designate is … | when … |
---|---|
Not at Branch (CPA only) … | the controlling person is associated with a branch of the CPA that is not involved in the events responsible for the revocation. |
Not responsible for revocation events … | the controlling person is not involved in the events responsible for the revocation. For example, the events leading to the revocation occurred only after a controlling person became inactive or before the controlling person became active. |
7771.1 Notifying Persons About the Intent to Designate
March 2020
Procedure
Within seven days of sending an intent to revoke letter (CLASS Form 2880 Intent to Impose Adverse Action) to a permit holder, the inspector sends a copy of the intent to revoke letter and CLASS Form 2762 Intent to Designate a Controlling Person, by both certified and regular mail, to each person who has been designated as a controlling person for the operation.
Content of the Letter
The Intent to Designate a Controlling Person letter includes the following information:
- The date that Licensing received information from the operation naming the person as a controlling person (or, if the person was not named as a controlling person by the operation, the date that Licensing decided to designate the person as controlling).
- A statement explaining the intent to revoke the operation’s permit, indicating the operation’s address, and explaining that a copy of the intent to revoke letter is enclosed.
- A statement explaining the intent to designate the person as controlling due to the intent to revoke the operation’s permit.
- The facts to support Licensing’s decision to designate the person, if Licensing intends to designate the person as controlling and the operation did not submit the person’s name to Licensing as a controlling person.
- A statement explaining that the legal authority for the action is Human Resources Code §42.072(g)(2) and (g)(4), and §42.062.
- A statement explaining the controlling person’s right to an administrative review and the procedures for requesting an administrative review, including the name of the person to whom a written request for an administrative review must be addressed.
- Notice of the right to request an administrative review within 15 days after receipt of the letter, if the person disagrees with the designation.
- A statement that the designation will be sustained when the revocation for the operation is final, and if:
- the designated controlling person has waived due process rights regarding the designation; or
- the designation for the controlling person is upheld after due process rights are exhausted.
- A statement explaining the consequences of being a sustained controlling person.
- The signature of the director of day care or residential child care licensing, the district director, or his or her designee.
Enclosures
The inspector encloses:
- Form 2880 Intent to Impose Adverse Action letter;
- a link to the Human Resources Code, Chapter 42; and
- a copy of 40 TAC §§745.8809-745.8817.
Delivering the Letter
The inspector:
- delivers the letter (Form 2880) to the controlling person either in person or by courier, and obtains a signed receipt; or
- sends the letter by both regular and certified mail, with a return receipt requested.
The inspector also sends a copy of the letter to the:
- district director;
- Licensing attorney; and
- supervisor.
7772 Process of Providing an Administrative Review of the Designation as a Controlling Person
Revision 23-3; Effective Sept. 22, 2023
The controlling person must be informed of the right to request an administrative review due to the designation (see 5600 Administrative Reviews).
The administrative review of the appropriateness of the designation for each controlling person may be:
- combined with the operation’s administrative review regarding the intent to revoke its permit; or
- held separately for each designated controlling person.
When held separately, the administrative review to revoke the operation's permit must be completed first, and the decision to revoke the operation's permit upheld before conducting the administrative review of the designation as controlling person for each person named.
26 TAC Section 745.909
7772.1 Adverse Action Is Overturned, Stopped, or Results in a Settlement
September 28, 2018
Procedure
Adverse Action Is Overturned
If the person conducting the administrative review for the revocation overturns the decision to revoke the operation’s permit, the district director or designee stops the due process for each controlling person designated as a result of the revocation.
In CLASS, in the Stop Controlling Person Designation Action and Reason section of the Controlling Person Designation Due Process page, the director or designee:
- selects Stop from the Action drop-down box;
- enters the effective date in the Effective Stop Date field; and
- enters the reason that the due process was stopped.
Within 15 days of the revocation being overturned, the inspector sends CLASS Form 2766 Stop Due Process of a Controlling Person, to each designated controlling person. The letter notifies the controlling person that Licensing no longer seeks to designate the person as a controlling person.
Adverse Action is Stopped
If the adverse action for the revocation of the operation’s permit is stopped with a reason of Stop Adverse Action:
- the due process for each controlling person designated as a result of the revocation is automatically stopped; and
- CLASS automatically populates the fields under the Stop Controlling Person Designation Action and Reason section on the Controlling Person Designation Due Process page.
If the adverse action for the revocation of the operation’s permit is stopped with a reason of Settlement, the district director or designee stops the due process for each controlling person designated as a result of the revocation.
In CLASS, in the Stop Controlling Person Designation Action and Reason section of the Controlling Person Designation Due Process page, the director or designee:
- selects Settlement from the Action drop-down box;
- enters the effective date of the settlement in the Effective Stop Date field; and
- enters the reason for the settlement in the Reason narrative box, along with any conditions of the settlement relating to the controlling person.
Within 15 days of the revocation being stopped, the inspector sends CLASS Form 2766 Stop Due Process of a Controlling Person, to each designated controlling person. The letter notifies the controlling person that Licensing no longer seeks to designate the person as a controlling person.
7772.2 No Administrative Review Requested by a Controlling Person
Revision 23-3; Effective Sept. 22, 2023
Procedure
If a designated controlling person does not request an administrative review within 15 days after receiving an intent to designate letter, the inspector takes the following actions in the CLASS:
- Sets the CP Administrative Review field to Waived
- Sends CLASS Form 2763 Controlling Person Administrative Review Decision Letter to the designated controlling person
If the designated controlling person does not request an administrative review, but the operation does request an administrative review due to the revocation of its permit, the inspector postpones sending the notice offering a due process hearing to the controlling person until the administrative review is completed and the decision to revoke the operation’s permit is upheld.
If the administrative review for the revocation of the operation’s permit is overturned or stopped, the inspector follows the procedures explained in 7772.1 Adverse Action Is Overturned, Stopped or Results in a Settlement.
See also:
5616.1 Determining Whether a Request for an Administrative Review Meets the Due Date
7772.5 Notifying Person About Licensing’s Decision to Designate Controlling Person
7772.3 Decision to Designate a Controlling Person is Overturned
September 2012
If the person conducting the administrative review overturns the decision to designate a controlling person, he or she sends CLASS Form 2763 Controlling Person Administrative Review Decision letter to the person by both certified and regular mail within 15 days of the administrative review. The purpose of the letter is to inform the person that the designation is overturned.
If the operation requested an administrative review due to the revocation of its permit, the administrative review for the controlling person is postponed until the administrative review for the revocation is complete and the decision to revoke the operation’s permit is upheld.
If the administrative review for the revocation of the operation’s permit is overturned or stopped, the inspector follows the procedures explained in 7772.1 Adverse Action Is Overturned, Stopped, or Results in a Settlement.
7772.4 Decision to Designate a Controlling Person is Upheld
June 2015
Procedure
If the person conducting the administrative review upholds the decision to designate the controlling person, he or she sends CLASS Form 2763 Controlling Person Administrative Review Decision Letter to the individual by both certified and regular mail within 15 days of the administrative review.
If the administrative review for the revocation of the operation’s permit is overturned or stopped, the inspector follows the procedures explained in 7772.1 Adverse Action Is Overturned, Stopped, or Results in a Settlement.
Also see 7772.5 Notifying Persons About Licensing’s Decision to Designate a Controlling Person.
7772.5 Notifying Persons About Licensing’s Decision to Designate a Controlling Person
September 2012
Each person who continues to be designated as controlling after the administrative review or the offer of an administrative review receives a letter (CLASS Form 2763 Controlling Person Administrative Review Decision), offering a due process hearing. See 7730 Due Process Hearings.
The due process hearing may be:
- combined with the operation’s hearing; or
- held separately for each designated controlling person at the discretion of the judge, in the case of a hearing conducted by the State Office of Administrative Hearings (SOAH).
40 TAC §745.909
7772.51 Content of CLASS Form 2763 (Controlling Person Administrative Review Decision Letter)
September 2012
Procedure
The inspector notifies a designated controlling person about the right to a due process hearing, in writing, by sending the CLASS Form 2763 Controlling Person Administrative Review Decision Letter, with a return receipt requested, and includes the following information:
- A statement explaining that the person was informed in writing about Licensing’s intent to designate him or her as controlling, the reasons for the designation, and the offer of an administrative review.
- The letters are enclosed along with a copy of the letter sent to the operation regarding Licensing’s decision to impose adverse action letter against the operation.
- A statement:
- explaining that the person did not request an administrative review; or
- acknowledging that the person requested an administrative review and explaining that the decision to designate the person as controlling was upheld. In this case, the inspector includes the date of the review and the name of the person who conducted the review.
- A statement explaining that the legal authority for the action is Human Resources Code §42.072(g)(2) and (g)(4), and §42.062.
- A statement informing the person about the right to a due process hearing and explaining that person’s request for a hearing must be postmarked within 30 days after the person receives the letter (see 7772.52 Instructions for Requesting a Due Process Hearing to Appeal the Designation of Controlling Person).
- The signature of the district director or his or her designee.
7772.52 Instructions for Requesting a Due Process Hearing to Appeal the Designation of Controlling Person
September 2012
When preparing to send CLASS Form 2763 Controlling Person Administrative Review Decision to a person designated as a controlling, the inspector must include a statement explaining that the person may appeal the decision by sending a written request for a due process hearing to:
Docket Clerk, Legal Services, Mail Code Y-956
Texas Health and Human Services Commission
P.O. Box 149030
Austin TX 78714-9030
The inspector instructs the person to:
- state in the letter the reasons why the person should not be designated as controlling; and
- request that a copy of the request for a due process hearing be sent to the inspector who sent the letter.
7772.53 Consequences of a Controlling Person Not Responding to a Letter About the Right to Appeal (CLASS Form 2763)
September 2012
Procedure
If the person designated as a controlling person does not submit a request for a due process hearing within 30 days of receiving CLASS Form 2763 Controlling Person Administrative Review Decision letter, the person waives his or her rights to a hearing, and the designation is sustained when the revocation of the operation’s permit is final.
A person who is a sustained controlling person:
- cannot be issued a permit; and
- cannot be a controlling person in a child care operation for a five year period.
7772.54 Enclosures When Instructing a Person About the Right to Appeal a Designation as Controlling (CLASS Form 2763)
September 28, 2018
Procedure
When instructing a person designated as controlling about the right to appeal, the district director or designee encloses with CLASS Form 2763 Controlling Person Administrative Review Decision letter:
- CLASS Form 2762 Intent to Designate Controlling Person;
- Form 2880 Intent to Impose Adverse Action Letter;
- Form 2878 Decision to Impose Adverse Action Letter;
- a link to Human Resources Code, Chapter 42;
- a copy of 40 TAC, §§745.8831-745.8855; and
- a copy of the Request for a Due Process Hearing Regarding a Controlling Person Designation form (the last page of Form 2763).
7772.55 Delivering the Letter Notifying a Person About the Right to Appeal a Designation as Controlling (CLASS Form 2763)
September 28, 2018
To notify a person about the right to appeal a designation of Controlling, the district director or designee:
- delivers the decision letter (CLASS Form 2763 Controlling Person Admin Review Decision Letter) in person to the controlling person or sends it by courier, and obtains a signed receipt; or
- sends the letter by both regular and certified mail to the controlling person, with a return receipt requested.
The district director sends a copy of the letter to the director, Licensing attorney, supervisor, and inspector responsible for the operation.
7773 Providing a Due Process Hearing for a Designated Controlling Person
September 2012
A designated controlling person must be informed about the right to request a due process hearing to contest the designation. See 7730 Due Process hearings.
The due process hearing for each controlling person may be:
- combined with the operation’s due process hearing, regarding the decision to revoke its permit; or
- held separately for each designated controlling person.
40 TAC §745.909
7773.1 Controlling Person Did Not Request a Due Process Hearing
September 28, 2018
Procedure
If the designated controlling person does not request a due process hearing within 30 days after receiving the Controlling Person Administrative Review Decision Letter, CLASS Form 2763, the inspector postpones sending the final notice to the controlling person until the due process hearing for the revocation is waived or upheld.
If the Due Process Hearing Overturns a Decision to Revoke
If a due process hearing overturns the decision to revoke an operation’s permit, the district director stops the due process for each controlling person designated as a result of the revocation.
In the Stop Controlling Person Designation Action and Reason section of the Controlling Person Designation Due Process page in CLASS, the director or designee:
- selects Stop from the Action drop-down box;
- enters the effective date in the Effective Stop Date field; and
- enters the reason that due process was stopped.
Within 15 days of the revocation being overturned, the inspector sends CLASS Form Stop Due Process of a Controlling Person to the controlling person. The letter notifies the controlling person that Licensing no longer seeks to designate the person as a controlling person.
If the Due Process Hearing for Adverse Action is Upheld or is Not Requested
If the permit holder waived the right to a due process hearing for the revocation of the operation’s permit, or if the due process hearing upholds the decision to revoke the operation’s permit, the inspector must do as follows within 15 days:
- Change the CP Appeal Hearing (due process) field from Pending to Waived;
- Send a final notification letter (CLASS Form 2764 Final Sustained Controlling Person) to the controlling person.
See 7773.3 Final Notice to Sustain the Designation of Controlling Person.
7773.2 When a Controlling Person Requests a Due Process Hearing to Appeal the Designation
7773.21 Designation of Controlling is Upheld at a Due Process Hearing
September 28, 2018
Procedure
If a due process hearing conducted by the State Office of Administrative Hearings (SOAH) upholds a person’s designation as a controlling person, the district director, manager, or his or her designee takes the following steps in CLASS:
- Changes the CP Appeal Hearing field from Requested to Upheld;
- Sends CLASS Form 2764 Final Sustained Controlling Person to the controlling person with 30 days of receiving the court’s decision.
See 7773.3 Final Notice to Sustain the Designation of Controlling Person.
7773.22 Revocation is Upheld at a Due Process Hearing but the Designation of Controlling Person is Overturned
September 28, 2018
Procedure
If the controlling person requests a due process hearing and the due process hearing overturns the decision to sustain the designation of controlling person, the district director or his or her designee changes the CP Appeal Hearing field from Requested to Overturned in CLASS.
7773.23 Revocation and Designation are Both Overturned at a Due Process Hearing
September 28, 2018
Procedure
If the due process hearing overturns a decision to revoke an operation’s permit, the district director or designee stops the due process for each controlling person designated as a result of the revocation.
In the Stop Controlling Person Designation Action and Reason section of the Controlling Person Designation Due Process page in CLASS, the director or designee:
- selects Stop from the Action drop down-box;
- enters the effective date in the Effective Stop Date field; and
- enters the reason that due process was stopped.
7773.3 Final Notice to Sustain the Designation of Controlling Person
September 28, 2018
If Licensing’s findings are upheld for the designation of controlling person and the revocation is made final, the district director or designee, notifies the controlling person that the decision to designate the person as controlling is final when all administrative appeals and challenges have been exhausted.
A designated controlling person becomes a sustained controlling person when the revocation is final and:
- the person has waived his or her right to due process regarding the designation; or
- the designation is upheld after exhausting his or her due process rights.
7773.31 Contents of the Letter to Notify a Controlling Person About a Sustained Designation (CLASS Form 2764)
September 28, 2018
Procedure
The district director, or his or her designee, notifies a person that the designation of controlling person has been sustained by sending CLASS Form 2764 Final Sustained Controlling Person to the person by both regular and certified mail, with a return receipt requested, and includes the following information:
- A statement explaining that the decision to sustain the person as controlling is final according to the Human Resources Code, §§42.072(g)(2) and 42.046.
- A statement explaining that:
- the person did not request a due process hearing, the time for making such a request has expired, and the decision to revoke the operation’s permit is final (include the name and address of the operation); or
- that the person was informed that Licensing’s decision to designate the person as controlling was upheld after a due process hearing, and the decision to revoke the license is final (include the name and address of the operation and the date that the person was informed).
- A statement explaining that a sustained controlling person cannot be issued a permit and cannot serve as a controlling person for a five-year period. The statement must also include the date that the person will no longer be prohibited.
- The signature of the district director or his or her designee.
7773.32 Delivering the Letter Notifying a Controlling Person About a Sustained Designation (CLASS Form 2764)
September 28, 2018
Procedure
To notify a person that the designation of controlling has been sustained, the district director or his or her designee:
- delivers the notification letter (CLASS Form 2764 Final Sustained Controlling Person) to the controlling person in person, or sends it by courier, and obtains a signed receipt; or
- sends the letter by both regular and certified mail, with a return receipt requested.
The district director, or his or her designee, sends a copy of the letter to the director of Licensing, Licensing attorney, supervisor, and the inspector responsible for the operation.
7773.4 Reviewing the Status of a Sustained Controlling Person in CLASS
September 28, 2018
When a person is sustained as a controlling person as a result of a revocation of the operation’s permit, the person is no longer allowed to be a controlling person at any operation for five years.
40 TAC §745.907
Procedure
Each inspector responsible for an operation in which a sustained controlling person is actively associated follows up to ensure that the sustained controlling person is removed from their role immediately.
The inspector:
- sends CLASS Form 2765, Match of an Ineligible Controlling Person, to the operation; and
- follows up with the operation within 15 days of sending the notification to ensure that the sustained controlling person is removed.
If the operation fails to remove the sustained controlling person from the role of controlling person, the inspector follows the procedures in 5462 Notifying an Applicant or Permit Holder About an Ineligible Controlling Person.
7774 Documenting in the AARS When the Denial or Revocation of a Permit is Final or the Role of Controlling Person is Sustained
September 2012
The designated user of the HHSC Adverse Action Record Sharing (AARS) system enters an operation’s information into the AARS when:
- the denial or revocation of an operation’s permit is final and is based on one of the following reasons:
- The applicant committed an act or omission that resulted in the physical or mental harm to an individual;
- The applicant is a threat to the health, safety, or well-being of an individual;
- The applicant engaged in the physical, mental, or financial exploitation of an individual; or
- The applicant has committed an act or omission that renders the person unqualified or unfit to fulfill the obligations of the license; and
- the designation of the permit holder’s role as a controlling person is sustained, if the operation’s permit was revoked.
40 TAC §745.907
Texas Government Code §531.953
7774.1 Entering Details About an Operation in the HHSC Record Sharing System
September 2012
Procedure
The designated user of the HHSC Adverse Action Record Sharing (AARS) system enters the following information about an operation when the criteria are met that are explained in 7774 Documenting in the AARS When the Denial or Revocation of a Permit is Final or the Role of Controlling Person is Sustained:
- Operation’s name
- Operation’s number
- Type of permit
- Operation type
- Operation’s address
- Action taken (that is, denial or revocation)
- Basis of the action (that is, the reason for the denial or revocation)
- Effective date of the action (that is, the date the denial or revocation became final)
- End date of the action (that is, five years from the date that the denial or revocation became final)
- Summary of the action taken
7774.2 Entering Information for the Controlling Persons
September 2012
Procedure
When an operation’s permit is denied, the designated user of the HHSC Adverse Action Record Sharing (AARS) system enters information for all controlling persons documented in CLASS for the operation.
When an operation’s permit is revoked, the designated user of AARS enters the information for all controlling persons whose designation is sustained.
The information entered for controlling persons by the designated user is as follows:
- First, middle, and last name
- Date of birth
- Driver license number and state, if known
- Address
- Status (Identified for denials and Sustained for revocations)
7800, Automatic Actions
7810 Automatic Suspensions
June 2015
The permit for a licensed operation or a registered or listed family home is automatically suspended if the annual permit fee is not paid by the due date.
An operation that is exempt from paying the annual fee is not subject to an automatic suspension for failure to pay the annual fee. See 5211 Exemptions from Fees.
The permit for a listed family home is also automatically suspended if the listed family home fails to submit the information required for a background check within 24 months of the date the last background check was conducted.
Automatic suspensions are not adverse actions and are not subject to an administrative review or due process hearing.
Texas Human Resources Code §§42.052(j)-(j-1); and 42.054
26 TAC §§745.503, 745.505(a)
7811 When to Process an Automatic Suspension
June 2015
Procedure
By the 10th day of the month, CCR staff enter an automatic suspension in CLASS when a permit has been automatically suspended because:
- the operation did not pay the annual permit fee by the last day of the previous month; or
- the listed family home did not submit the information required for a background check by the due date in the BGC Reminder Letter.
7812 How to Process an Automatic Suspension
August 2020
Procedure
To document the automatic suspension in CLASS, staff:
- update the Operation Main page by:
- changing the Operating Status to No;
- changing the Effective Date of the permit to reflect the date of the automatic suspension; and
- notifying the program administrator or designee to check the Do not display on the public/provider website check box;
- complete the Provider Voluntary Suspension Plan page by:
- entering the date the automatic suspension began;
- describing the plan for the operation to come into compliance, including the date the automatic revocation is effective if the correction plan is not met; and
- selecting the reason for the automatic suspension;
- draft and save notification to the provider on the Provider Voluntary Suspension Plan page using one of the following:
- CLASS Letter 2813, Suspension Fee Letter, is used if the automatic suspension is due to failure to pay the annual permit fee;
- Form 2742 Auto-Suspension Letter-BGC (LH Only) located on the CCR SharePoint site is used if the automatic suspension is due to a listed family home’s failure to submit information required for subsequent background checks. Form 2742 is drafted on HHSC letterhead and saved to CLASS, with the name AutoSuspend-BGC
- Form 2743 Auto-Suspension Letter-BGC/Fees (LH Only) located on the CCR SharePoint site is used if the automatic suspension is due to a listed family home’s failure to submit information required for subsequent background checks, and failure to pay the annual listing fee. Form 2743 is drafted on HHSC letterhead and saved to CLASS with the name AutoSuspend-BGC/Fees; and
- mail the letter to the operation.
7813 Conducting Follow Up to Automatic Suspension
June 2015
If a licensed and registered operation's permit is automatically suspended, the inspector conducts a follow-up inspection within 15 days of sending notification to the operation that the permit has been automatically suspended. The purpose of the inspection is to verify the operation has stopped providing care to children.
7813.1 Operation or Home is Caring for Children
June 2015
Procedure
If the operation is caring for children after the permit has been automatically suspended, the inspector:
- informs the provider that the permit was automatically suspended for nonpayment of fees;
- explains that he or she is operating without a valid permit and provides technical assistance for how and where to send the fee payment;
- explains any child care subsidy program funding has been stopped as a result of the automatic suspension; and
- issues a citation for providing unregulated child care.
7813.2 Operation or Home has Stopped Providing Care or is No Longer Operating
Revision 23-2; Effective June 26, 2023
If the operation is no longer caring for children in compliance with the automatic suspension letter, the inspector verifies fee payment before reinstating the permit.
If the caregiver informs the inspector that the operation has closed, the inspector follows procedure in 5540 Voluntary Closure to close the operation.
7814 Ending an Automatic Suspension
August 2020
A permit that has been automatically suspended is reinstated once the permit holder has either paid the annual fee or submitted the required background check information before the end of the suspension period.
Procedure
To reinstate a permit, staff:
- update the Operation main page in CLASS by:
- changing the Operating Status to Yes,
- updating the Effective Date to reflect the End Date of the automatic suspension, and
- notifying the program administrator or designee to uncheck the Do not display on public/provider website box;
- update the Provider Voluntary Suspension Plan page in the CLASS page by:
- documenting how the operation came into compliance in the Correction Plan field,
- entering Auto-Suspension, Compliance Met in the Result of Suspension field, and
- entering the date the automatic suspension ends in the End Date field.
- complete Form 2744 Auto-Suspension End and saves the form on the Provider Voluntary Suspension Plan page in CLASS by:
- copying the text from Form 2744 Auto-Suspension End and pasting the information onto HHSC letterhead found on the Provider Voluntary Suspension Plan page in CLASS, and
- saving the letter with the appropriate name; and
- Mail the letter to the operation.
7820 Automatic Revocations
June 2015
The permit for a licensed operation, or a registered or listed family home, is automatically revoked if the annual permit fee is not paid within six months of the permit being automatically suspended.
The permit for a listed family home is automatically revoked if the home fails to submit the information required for a renewal background check within six months after the listing is automatically suspended.
Automatic revocations are not considered corrective or adverse actions and are not subject to an administrative review or a due process hearing.
If an operation's permit has been automatically revoked the permit holder may re-apply at any time.
Texas Human Resources Code §§42.052(j)-(j-1); and 42.054
Procedure
To process the automatic revocation of a permit in CLASS, staff:
- enter the date the automatic suspension ended in the End Date field;
- enter Auto-Revocation in the Result of Suspension field; and
- draft the notification using CLASS Form 2865e, 2825 Vol Suspension/Relocation/Clsr Letter found on the operation's Application/Closure page, selects the appropriate statement about automatic revocation, and mails notification to the operation.
If the operation is a listed family home, staff notifies the appropriate Licensing inspector that the permit has been automatically revoked and a follow-up inspection is needed.
7821 Conducting Follow-Up to an Automatic Revocation
June 2015
Within 15 days of sending notification that the permit has been automatically revoked, the inspector conducts a follow-up inspection to verify that the operation no longer cares for children.
A permit holder may not pay the overdue annual fee or submit overdue background check information at the time of the follow-up inspection. The permit holder must reapply for a permit.
7821.1 Operation or Home is Caring for Children
June 2015
Procedure
If the operation is caring for children after the permit has been automatically revoked, the inspector:
- informs the provider that the permit was automatically revoked and the reasons why;
- explains that there are no due process rights related to automatic revocation and that the permit holder may reapply for a new permit at any time;
- provides an application for a permit; and
- issues a citation for providing illegal child care.
If the permit holder does not submit a new application at the time of the follow-up inspection, the inspector enters a new illegal operation investigation to ensure the operation closes or becomes permitted. The inspector or staff assigned to the operation then closes the operation in CLASS.
If the operation submits an application at the time of an inspection, the inspector closes the operation that had the permit automatically revoked and creates a new operation in CLASS.
7822 Closing an Operation After an Automatic Revocation
June 2016
Procedure
If the permit has been automatically revoked, Licensing staff follow the procedures below to close the operation:
- An inspector conducts an inspection at the operation to verify that the operation is not caring for children. If the operation is caring for children, Licensing staff follow procedures in 6530 Investigations of Illegal Operations.
- Licensing staff close the operation in CLASS by entering the current date into the Closure Date field and using the appropriate closure reason, as outlined in the procedures below.
Closure Reasons for Automatic Revocations
Licensing staff select one of the following reasons on the Application/Closure page in CLASS to close an operation if the permit is automatically revoked:
- Auto-Revocation, Fees, if the automatic revocation is due to the operation’s failure to pay the annual fee;
- Auto-Revocation, Background Checks – LH, if the automatic revocation is due to a listed family home’s failure to submit the information required for a subsequent background check; or
- Auto-Revocation, BGCs/Fees – LH, if the automatic revocation is due to a listed family home’s failure to:
- submit information required for subsequent background checks; and
- pay the annual listing fee.