Revision 18-1

 

§15.101 Criteria and Eligibility for a License

 

(a) To obtain a license, a person must meet the application requirements in this subchapter and meet the criteria for a license.

(b) center must be located in Texas. The center must have a Texas mailing address.

(c) person may not operate a center on the same premises as:

(1) a child-care center licensed in accordance with Texas Human Resource Code, Chapter 42; or

(2) any other facility licensed by DADS or the Department of State Health Services.

(d) A separate license is required for each center located on separate premises, regardless of whether the centers are owned or operated by the same person.

(e) The actual census for a center must not exceed the capacity authorized by DADS, as indicated on the license.

(f) Before issuing a license, DADS considers the background and qualifications of:

(1) the applicant;

(2) a controlling person of the applicant;

(3) a person with a disclosable interest;

(4) an affiliate of the applicant;

(5) the administrator; and

(6) the chief financial officer, if the center has a chief financial officer.

(g) An applicant must affirmatively show that the center:

(1) obtained approval of building plans through plan review by DADS Architectural Unit as required by Subchapter E of this chapter (relating to Building Requirements);

(2) meets local building ordinances;

(3) is approved by the local fire authority;

(4) meets the standards of the Life Safety Code and the requirements in Subchapter E of this chapter; and

(5) meets the requirements of this chapter based on an on-site health inspection by DADS.

 

§15.102 General Application Requirements

 

(a) An applicant may apply for a license for a center by submitting a sworn application from the DADS Licensing and Credentialing Unit. An application may be obtained from the DADS website.

(b) An applicant must complete the application in accordance with the instructions provided on the application and the DADS website.

(c) An applicant must provide accurate and complete statements on the application and any attachments.

(d) If an applicant decides not to continue the application process for a license after submitting an application and license fee, the applicant must submit a written request to DADS to withdraw the application. DADS does not refund the license fee for an application that is withdrawn, except as provided in §15.114 of this subchapter (relating to Time Periods for Processing All Types of License Applications).

 

§15.103 Building Approval

 

(a) Fire authority. An applicant must receive approval from the local fire authority or, if the jurisdiction does not have a local fire authority, the state fire marshal, for an initial, renewal, change of ownership, relocation, or capacity increase license application. An applicant may submit a license application to DADS before receiving fire authority approval. An applicant must submit to DADS a copy of a signed and dated written approval for occupancy by the local fire authority or state fire marshal that describes the center by name and address.

(b) Local health authority. An applicant for an initial, change of ownership, relocation, or capacity increase license must submit to DADS a copy of a dated written notification to the local health authority that the applicant is submitting a license application to DADS. DADS sends the local health authority a copy of DADS license renewal notification specifying the expiration date of the center's current license. A local health authority may provide an evaluation to DADS regarding the status of the center's compliance with local codes, ordinances or regulations. The local health authority may also recommend that DADS issue or deny a license to the center, but DADS makes the final decision regarding licensure of the center.

 

§15.104 Applicant Disclosure Requirements

 

(a) A person that submits an initial, renewal, change of ownership, relocation, or increase in capacity license application must:

(1) identify the location of the place of business for which the license is sought;

(2) include documentation, signed by the appropriate local government official, stating that the center's place of business and the use of the center meet local zoning requirements;

(3) provide the name, address, and social security number of, and background and criminal history check information for:

(A) the applicant;

(B) the administrator;

(C) the financial officer; and

(D) each controlling person of the applicant;

(4) provide the federal employer identification number or taxpayer identification number of the applicant and of each controlling person, if an applicant or controlling person is not an individual;

(5) state the assumed name under which the center will be doing business;

(6) state the maximum capacity requested for the center; and

(7) include a sworn affidavit that the applicant has complied with this chapter.

(b) For an initial license and change of ownership application, an applicant must:

(1) submit to DADS evidence of the right to possess or occupy the center at the time the application is submitted, which may include:

(A) a lease agreement; or

(B) a deed;

(2) disclose to DADS the name and address of the owner of the real property, including the owner of the buildings and grounds appurtenant to the center;

(3) submit to DADS a certificate of account status issued by the Comptroller of Public Accounts; and

(4) submit to DADS a certificate of incorporation issued by the Secretary of State for a corporation or a copy of the partnership agreement for a partnership.

(c) For a renewal application, an applicant must submit to DADS a certificate of account status issued by the Comptroller of Public Accounts.

(d) An applicant or license holder must provide to DADS any additional information requested by DADS no later than 30 days after the date of DADS request.

(e) DADS may require an applicant to disclose information relating to the fiduciary-appointed administrator of the center.

 

§15.105 Initial License Application Procedures and Issuance

 

(a) The center's administrator must complete pre-licensing program training before an applicant may submit an initial application for a license.

(b) An applicant for an initial license must submit:

(1) a complete and correct application including all documents and information that DADS requires as part of the application process;

(2) the correct license fee established in §15.112 of this subchapter (relating to Licensing Fees);

(3) a letter of credit for $250,000 from a bank that is insured by the Federal Deposit Insurance Corporation, or other documentation acceptable to DADS, to demonstrate an applicant's financial viability; and

(4) all other documents described in the instructions provided on the application and on the DADS website.

(c) After DADS receives an application for an initial license and the correct license fee, DADS reviews the application and notifies the applicant if additional information is needed to complete the application.

(d) An applicant must submit written notice to DADS that the center is ready for a Life Safety Code inspection.

(1) The written notice must be submitted:

(A) with the application; or

(B) no later than 120 days after DADS Licensing and Credentialing Unit receives the application.

(2) After DADS receives the written notice for a Life Safety Code inspection and an applicant has satisfied the application submission requirements, DADS staff conducts an on-site Life Safety Code inspection.

(e) The center must meet the building requirements described in Subchapter E of this chapter (relating to Building Requirements). If a center fails to meet the building requirements and fails to implement an approved written plan of correction no later than 120 days after the initial Life Safety Code inspection, DADS denies the license application.

(f) If a center meets the building requirements in Subchapter E of this chapter, the center may admit no more than three minors. If the center admits a minor, the applicant must send written notice to DADS indicating the center is ready for a health inspection. The health inspection request must be submitted no later than 120 days after the date the center meets the building requirements.

(1) DADS conducts an on-site health inspection to determine compliance with this chapter.

(2) If the center fails to comply with this chapter and fails to implement an approved written plan of correction no later than 120 days after the date of the initial health inspection, DADS denies the license application.

(g) If an applicant receives a notice from DADS that some or all of the information is missing or incomplete, an applicant must submit the requested information no later than 30 days after the date of the notice. If the applicant fails to timely submit the requested information, DADS denies the application. If DADS denies the application, DADS does not refund the license fee.

(h) DADS issues an initial license if it determines that an applicant has met the provisions of this chapter and THSC Chapter 248A.

(i) The issuance of an initial license constitutes DADS notice to the center of the approval of the application.

(j) DADS issues a center license to the license holder named on the license at the place of business listed on the license. The license is not transferable or assignable.

(k) The license includes:

(1) the license holder's name;

(2) the name of the center;

(3) the center's place of business;

(4) the center's licensed capacity;

(5) a statement that the center provides services to minors for 12 hours or less in a 24-hour period but no overnight care; and

(6) the effective date of the license.

(l) DADS may deny an application for an initial license if the applicant, a controlling person, or a person required to submit background and qualification information fails to meet the criteria for a license established in §15.101 of this subchapter (relating to Criteria and Eligibility for a License) or for any reason specified in §15.115 of this subchapter (relating to Criteria for Denial of a License).

(m) If DADS denies an application for an initial license, DADS sends the applicant written notice of the denial and informs the applicant of the right to request an administrative hearing to appeal the denial. The administrative hearing is held in accordance with 1 TAC Chapter 357, Subchapter I (relating to Hearings Under the Administrative Procedure Act) and Chapter 91 of this title (relating to Hearings Under the Administrative Procedure Act).

(n) An initial license expires on the second anniversary after the effective date of the initial license.

 

§15.106 Renewal License Application Procedures and Issuance

 

(a) A center license expires on the second anniversary of the effective date. To renew a license, a license holder must submit a renewal application to DADS before the expiration date. DADS sends written notice of expiration of a license to the license holder at least 120 days before the expiration date of a license. The written notice includes instructions for completing the renewal application.

(b) A license holder must comply with the requirements in §15.102 of this subchapter (relating to General Application Requirements) and §15.114 of this subchapter (relating to Time Periods for Processing All Types of License Applications) to renew a license.

(c) In accordance with Texas Government Code, §2001.054, DADS considers that a license holder meets the renewal application submission deadline if the license holder submits:

(1) no later than 60 days before the expiration date of the current license:

(A) a complete application for renewal or an incomplete application for renewal with a letter explaining the circumstances that prevented the inclusion of the missing information; and

(B) the correct license fee established in §15.112 of this subchapter (relating to Licensing Fees); or

(2) during the 60-day period ending on the date the current license expires:

(A) a complete application for renewal or an incomplete application with a letter explaining the circumstances that prevented the inclusion of the missing information;

(B) the correct license fee established in §15.112 of this subchapter; and

(C) the late fee established in §15.112 of this subchapter.

(d) DADS reviews a renewal application and notifies the license holder if additional information is needed to complete the application.

(e) It is the license holder's responsibility to ensure that the application is timely received by DADS. Failure to submit a timely and sufficient renewal application with the correct license fee will result in the expiration of the license.

(f) If a license holder submits a renewal application to DADS that is postmarked after the expiration date of the license, DADS denies the renewal application and does not refund the renewal license fee. The license holder is not eligible to renew the license and must cease operation on the date the license expires. A license holder whose license expires must apply for an initial license in accordance with §15.105 of this subchapter (relating to Initial License Application Procedures and Issuance).

(g) DADS issues a renewal license after determining that an applicant and the center have met the provisions of this chapter.

(h) The issuance of a renewal license constitutes DADS notice to the center that the application is approved.

(i) A renewal license issued in accordance with this chapter expires on the second anniversary after the effective date.

(j) DADS may pend action on an application for the renewal of a license for up to six months if the center is not in compliance with this chapter based an on-site inspection.

(k) DADS may deny an application for the renewal of a license if an applicant, controlling person, or any person required to submit background and qualification information fails to meet the criteria for a license established in §15.101 of this subchapter (relating to Criteria and Eligibility for a License) or for any reason specified in §15.115 of this subchapter (relating to Criteria for Denial of a License).

(l) Before denying a license renewal application, DADS gives the license holder:

(1) notice by personal service or by registered or certified mail of the facts or conduct alleged to warrant the proposed action; and

(2) an opportunity to show compliance with all the requirements of THSC Chapter 248A and this chapter to retain the license.

(m) To request an opportunity to show compliance, the license holder must send a written request to DADS. The request must:

(1) be postmarked no later than 10 days after the date of DADS notice of proposed action and received by DADS no later than 10 days after the date of the postmark; and

(2) contain documentation that refutes DADS allegations specifically.

(n) The opportunity to show compliance is limited to a review of documentation submitted by the license holder and information DADS used as the basis for the proposed action. The opportunity to show compliance is not an administrative hearing. DADS gives the license holder a written affirmation or reversal of the proposed action.

(o) If DADS denies an application for a renewal license, DADS sends the license holder a written notice of the denial and informs the license holder of the right to request an administrative hearing to appeal the denial. The administrative hearing is held in accordance with 1 TAC Chapter 357, Subchapter I (relating to Hearings Under the Administrative Procedure Act) and DADS hearing rules found in Chapter 91 of this title (relating to Hearings Under the Administrative Procedure Act).

 

§15.108 Change of Ownership License Application Procedures and Issuance

 

(a) A center license is not assignable or transferable. If a change of ownership occurs, the applicant must obtain a license in accordance with subsection (c) of this section.

(b) An application for a center license when there is a change of ownership is an application for an initial license.

(c) An applicant must submit to DADS:

(1) a complete application for a license in accordance with §15.101 of this subchapter (relating to Criteria and Eligibility for a License) or an incomplete application with a letter explaining the circumstances that prevented the inclusion of the missing information;

(2) the application fee, in accordance with §15.112 of this subchapter (relating to Licensing Fees);

(3) a letter of credit for $250,000 from a bank that is insured by the Federal Deposit Insurance Corporation, or other documentation acceptable to DADS, to demonstrate an applicant's financial viability; and

(4) signed written notice from a center's existing license holder of intent to transfer operation of the center to an applicant beginning on a date specified by an applicant, unless waived in accordance with subsection (f) of this section.

(d) DADS may deny issuance of a license if an applicant, controlling person, or any person required to submit background and qualification information fails to meet the criteria for a license established in §15.101 of this subchapter or for any reason specified in §15.115 of this subchapter (relating to Criteria for Denial of a License).

(e) To avoid a center operating without a license, a prospective license holder must submit all items in subsection (c) of this section at least 30 days before the anticipated date of the change of ownership in accordance with DADS application instructions.

(f) The 30-day notice required by subsection (e) of this section may be waived by DADS if:

(1) the prospective license holder presents evidence to DADS demonstrating that an eviction of the center or a foreclosure of the property from which the center operates is imminent and that circumstance prevented the timely submission of the notice; or

(2) DADS, in its sole discretion, determines that circumstances are present that threaten a minor's health, safety, or welfare which necessitate waiver of timely submission of the notice.

(g) DADS conducts an on-site health inspection to verify compliance with the licensure requirements before issuing a license as a result of a change of ownership. DADS may conduct a desk review instead of an on-site health inspection before issuing a license as a result of a change of ownership if:

(1) less than 50 percent of the direct ownership interest in the former license holder changed, when compared to the new license holder; or

(2) every person with disclosable interest in the new license holder had a disclosable interest in the former license holder.

(h) DADS, in its sole discretion, may conduct an on-site Life Safety Code inspection before issuing a license as a result of a change of ownership.

(i) If an applicant meets the requirements for a license, DADS issues a license. The effective date of the license is the same date as the effective date of the change of ownership and cannot precede the date the application was received by DADS Licensing and Credentialing Unit.

(j) The initial license issued to the new license holder expires on the second anniversary of the effective date.

(k) The previous license holder’s license is invalid on the effective date of the new license holder’s initial license.

 

§15.109 Increase in Capacity

 

(a) A license holder must not increase a center's licensed capacity without approval from DADS.

(b) The license holder must submit an application for an increase in capacity in accordance with §15.102 of this subchapter (relating to General Application Requirements) and the correct fee required in §15.112 of this subchapter (relating to Licensing Fees).

(c) The license holder must arrange for an inspection of the center by the local fire marshal and provide written evidence of the fire marshal's approval to DADS.

(d) An applicant must send written notice to DADS indicating that the center is ready for a Life Safety Code inspection.

(1) The written notice must be submitted:

(A) with the application; or

(B) no later than 120 days after DADS Licensing and Credentialing Unit receives the application.

(2) After DADS receives the written notice for a Life Safety Code inspection and an applicant has satisfied the application submission requirements, DADS staff conducts an on-site Life Safety Code inspection.

(e) If an applicant receives a notice from DADS that some or all of the information is missing or incomplete, an applicant must submit the requested information no later than 30 days after the date of the notice. If an applicant fails to submit the requested information no later than 30 days after the notice date, DADS considers the application incomplete and denies the application. If DADS denies the application, DADS does not refund the license fee.

(f) The center must meet the building requirements described in Subchapter E of this chapter (relating to Building Requirements). If a center fails to meet the building requirements and fails to implement an approved written plan of correction no later than 120 days after the initial Life Safety Code inspection, DADS denies the application for a license.

(g) After a center has met Life Safety Code requirements, DADS conducts an on-site health inspection.

(h) DADS issues a new license with an increased capacity if DADS determines that the center is in compliance with this chapter.

(i) If an applicant decides not to continue the application process after submitting the application and correct license fee, an applicant must submit to DADS a written request to withdraw the application. DADS does not refund the license fee.

(j) Before denying an application for an increase in capacity, DADS gives the license holder:

(1) notice by personal service or by registered or certified mail of the facts or conduct alleged to warrant the proposed action; and

(2) an opportunity to show compliance with all the requirements of the THSC Chapter 248A and this chapter to retain the license.

(k) To request an opportunity to show compliance, the license holder must send a written request to DADS. The request must:

(1) be postmarked no later than 10 days after the date of DADS notice of proposed action and received by DADS no later than 10 days after the date of the postmark; and

(2) contain documentation that refutes DADS allegations superficially.

(l) The opportunity to show compliance is limited to a review of documentation submitted by the license holder and information DADS used as the basis for the proposed action. The opportunity to show compliance is not an administrative hearing. DADS gives the license holder a written affirmation or reversal of the proposed action.

(m) If DADS denies an application for an increase in capacity, DADS sends the license holder a written notice of the denial and informs the license holder of the right to request an administrative hearing to appeal the denial. The administrative hearing is held in accordance with Texas Health and Human Services Commission rules found at 1 TAC Chapter 357, Subchapter I (relating to Hearings Under the Administrative Procedure Act) and DADS hearing rules found in Chapter 91 of this title (relating to Hearings Under the Administrative Procedure Act).

 

§15.110 Decrease in Capacity

 

(a) A license holder who wishes to decrease the licensed capacity of the center must provide written notification to DADS. The written notification must indicate the new licensed capacity for the center.

(b) After DADS receives the written notification, DADS issues a new license with the new licensed capacity as indicated in the written notification.

 

§15.111 Relocation

 

(a) Relocation is the closing of a center and the movement of its business operations to another location.

(b) A license holder must not relocate a center or provide services to a minor at a new location without prior approval from DADS.

(c) The license holder must continue to maintain the license at the current location and must continue to meet all requirements for operation of the center until DADS has approved the relocation.

(d) Before a relocation, the license holder must submit an application for an initial license for the new location in accordance with §15.105 of this subchapter (relating to Initial License Application Procedures and Issuance) and the correct fee for an initial license required in §15.112 of this subchapter (relating to Licensing Fees).

(e) The license holder must arrange for an inspection of the center by the local fire marshal and provide written evidence of the fire marshal's approval to DADS.

(f) An applicant must send written notice to DADS indicating that the center is ready for a Life Safety Code inspection.

(1) The written notice must be submitted:

(A) with the application; or

(B) no later than 120 days after DADS Licensing and Credentialing Unit receives the application.

(2) After DADS receives the written notice for a Life Safety Code inspection and an applicant has satisfied the application submission requirements, DADS staff conducts an on-site Life Safety Code inspection.

(g) If an applicant receives a notice from DADS that some or all of the information is missing or incomplete, an applicant must submit the requested information no later than 30 days after the date of the notice. If an applicant fails to submit the requested information no later than 30 days after the notice date, DADS considers the application incomplete and denies the application. If DADS denies the application, DADS does not refund the license fee.

(h) The center must meet the building requirements described in Subchapter E of this chapter (relating to Building Requirements). If a center fails to meet the building requirements and fails to implement an approved written plan of correction no later than 120 days after the initial Life Safety Code inspection, DADS denies the application for a license.

(i) After a center has met Life Safety Code requirements, DADS conducts an on-site health inspection.

(j) Following Life Safety Code approval by DADS, the license holder must notify DADS of the date the business operations will be relocated.

(k) DADS issues a license for the new center if the new center meets the requirements in this chapter. The effective date of the license is the date all business operations are relocated.

(l) The issuance of a license constitutes DADS approval of the relocation.

(m) The license for the current location becomes invalid upon issuance of the new license for the new location.

(n) If an applicant decides not to continue the application process after submitting the application and correct license fee, an applicant must submit to DADS a written request to withdraw the application. DADS does not refund the license fee.

(o) Before denying an application for relocation, DADS gives the license holder:

(1) notice by personal service or by registered or certified mail of the facts or conduct alleged to warrant the proposed action; and

(2) an opportunity to show compliance with all the requirements of THSC Chapter 248A and the Chapter to retain the license.

(p) To request an opportunity to show compliance, the license holder must send a written request to DADS. The request must:

(1) be postmarked no later than 10 days after the date of DADS notice of proposed action and received by DADS no later than 10 days after the date of the postmark; and

(2) contain documentation that refutes DADS allegations specifically.

(q) The opportunity to show compliance is limited to a review of documentation submitted by the license holder and information DADS used as the basis for the proposed action. The opportunity to show compliance is not an administrative hearing. DADS gives the license holder a written affirmation or reversal of the proposed action.

(r) If DADS denies an application for relocation, DADS sends the license holder a written notice of the denial and informs the license holder of the right to request an administrative hearing to appeal the denial. The administrative hearing is held in accordance with Texas Health and Human Services Commission rules found in 1 TAC Chapter 357, Subchapter I (relating to Hearings Under the Administrative Procedure Act) and DADS hearing rules found in Chapter 91 of this title (relating to Hearings Under the Administrative Procedure Act).

 

§15.112 Licensing Fees

 

(a) The schedule of fees for licensure of a center is as follows:

(1) initial license fee (includes changes of ownership and relocation) — $1750;

(2) renewal license fee — $1750; and

(3) increase in capacity — $875.

(b) DADS does not waive the license fee for a change of ownership application despite a demonstration of the circumstances referenced in §15.108(f) of this subchapter (relating to Change of Ownership License Application Procedures and Issuance). DADS may waive the timely submission of an application for a change of ownership in accordance with §15.108(f) of this subchapter.

(c) The late fee established in §15.106 of this subchapter (relating to Renewal License Application Procedures and Issuance) is $50 per day to a license holder who submits a renewal application after the date as described at §15.106 of this subchapter, except that the total amount of a late fee may not exceed $500.00.

(d) DADS does not consider an application as submitted until an applicant pays the correct license fee as required in this section. The fee must accompany the application.

(e) A fee paid to DADS is not refundable, except as provided by §15.114 of this chapter (relating to Time Periods for Processing All Types of License Applications).

(f) DADS accepts payment according to methods described in the application instructions provided on the DADS website.

 

§15.113 Plan Review Fees

 

(a) A center must pay a fee to DADS for its review of plans for new buildings, additions, conversion of buildings not licensed by DADS, or remodeling of existing licensed facilities as described on the DADS website.

(b) The fee schedule follows:

(1) facilities — new construction:

(A) single-story facilities — $2,000; and

(B) multiple-story facilities — $2,500; and

(2) additions or remodeling of existing licensed facilities — 2 percent of construction cost with a $500 minimum fee and a maximum not to exceed $2,000.

 

§15.114 Time Periods for Processing All Types of License Applications

 

(a) The date of an application is the date the DADS Licensing and Credentialing Unit receives the application and the correct license fee as required in §15.112 of this subchapter (relating to Licensing Fees).

(b) DADS considers an application for an initial license complete when DADS accepts the information described in §15.105 of this subchapter (relating to Initial License Application Procedures and Issuance).

(c) DADS considers an application for a renewal license complete when DADS accepts the information described in §15.106 of this subchapter (relating to Renewal License Application Procedures and Issuance). A center may continue to operate during the renewal application process in accordance with §15.106 of this subchapter.

(d) DADS considers an application for a change of ownership license complete when DADS accepts the information described in §15.108 of this subchapter (relating to Change of Ownership License Application Procedures and Issuance).

(e) DADS reviews an application for a license no later than 45 days after the date DADS Licensing and Credentialing Unit receives the application.

(f) If an applicant receives a notice from DADS that some or all of the information required by this chapter is missing or incomplete, an applicant must submit the required information no later than 30 days after the date of the notice. If an applicant fails to submit the required information no later than 30 days after the notice date, DADS considers the application incomplete and denies the application. If DADS denies the application, DADS does not refund the license fee.

(g) DADS denies an application that remains incomplete 120 days after the date that DADS Licensing and Credentialing Unit receives the application.

(h) DADS issues a license no later than 30 days after DADS determines that an applicant and the center have met all licensure requirements referenced in §15.105 and §15.106 of this subchapter, as applicable.

(i) If DADS does not process an application in the time period described in subsections (e) and (h) of this section, an applicant may request reimbursement of the license fee paid. The applicant must submit the reimbursement request following the instructions on the DADS website.

(j) If DADS does not agree that the established time period for processing an application described in subsection (e) of this section has been violated or finds that good cause existed for exceeding the established time period, DADS will deny the request.

(k) Good cause for exceeding the established time period exists if:

(1) DADS receives an application during the time period of September 1, 2014 through June 30, 2015;

(2) the number of applications to be processed exceeds by 15 percent or more the number processed in the same fiscal quarter of the preceding year effective when DADS has obtained and published two quarters of application data;

(3) DADS must rely on another public or private entity to process all or a part of the application received by DADS, and the delay is caused by that entity; or

(4) other conditions existed giving good cause for exceeding the established time period.

(l) If DADS denies the request for reimbursement, an applicant may request that the DADS commissioner resolve the dispute. An applicant must send a written statement to the DADS commissioner describing the request for reimbursement and the reason for the request. The DADS commissioner will review the request and notify an applicant in writing of the decision.

 

§15.115 Criteria for Denial of a License

 

(a) DADS may deny an application for an initial center license or for renewal of a license for:

(1) a violation of the THSC Chapter 248A or a standard in this chapter committed by the license holder, applicant, or a person listed on the application;

(2) an intentional or negligent act by the center or an employee of the center that DADS determines significantly affects the health or safety of a minor served at the center;

(3) use of drugs or intoxicating liquors to an extent that affects the license holder's or applicant's professional competence;

(4) a felony conviction, including a finding or verdict of guilty, an admission of guilt, or a plea of nolo contendere, in this state or in any other state of any person required by this chapter to undergo a background and criminal history;

(5) fraudulent acts, including acts relating to Medicaid fraud and obtaining or attempting to obtain a license by fraud or deception, committed by any person listed on the application;

(6) a license revocation, suspension, or other disciplinary action taken in Texas or another state against the license holder or any person listed on the application;

(7) criteria described in Chapter 99 of this title (relating to Denial or Refusal of License) that applies to any person required by this chapter to undergo a background and criminal history check;

(8) aiding, abetting, or permitting a substantial violation described in paragraph (1) of this subsection about which a person listed on the application had or should have had knowledge;

(9) a license holder or applicant's failure to provide the required information as requested on the application or in follow-up to the review of the application;

(10) a license holder or applicant who knowingly:

(A) submits false or intentionally misleading statements to DADS on an application;

(B) uses subterfuge or other evasive means of filing an application;

(C) engages in subterfuge or other evasive means of filing an application on behalf of another who is unqualified for licensure; or

(D) conceals a material fact on an application;

(11) a person listed on the application failing to pay the following fees, taxes, and assessments when due:

(A) licensing fees as described in §15.112 of this subchapter (relating to Licensing Fees);

(B) franchise taxes, if applicable; and

(C) federal taxes, as applicable; or

(12) a person listed on the application having a history of any of the following actions during the five-year period preceding the date of the application:

(A) operation of a facility in Texas or another state or jurisdiction that has been decertified or had its contract canceled under the Medicare or Medicaid program;

(B) federal or state Medicare or Medicaid sanctions or penalties;

(C) an unsatisfied final court judgment;

(D) eviction in Texas or another state or jurisdiction involving any property or space used as a center; or

(E) suspension in Texas or another state or jurisdiction of a license to operate a health facility, long-term care facility, assisted living facility, or a similar facility, or a center.

(b) DADS:

(1) denies a license to an applicant to operate a center if an applicant has on the date of the application:

(A) a debarment or exclusion from the Medicare or Medicaid programs by the federal government or a state; or

(B) a court injunction prohibiting an applicant or manager from operating a center.

(2) may deny a license to an applicant to operate a new center if an applicant has a history of any of the following actions at any time preceding the date of the application:

(A) revocation of a license to operate a health care facility, long-term care facility, assisted living facility or similar facility, or center in any state;

(B) surrender of a license in lieu of revocation or while a revocation hearing is pending;

(C) expiration of a license while a revocation action is pending and the license is surrendered without an appeal of the revocation or an appeal is withdrawn; or

(D) probation period placed on a license to operate a center.

(c) DADS may consider exculpatory information provided by any person described in §15.101(f) of this subchapter (relating to Criteria and Eligibility for a License) and grant a license if DADS finds that person able to comply with THSC Chapter 248A and this chapter.

(d) In determining the denial of a license, DADS considers all final actions taken against an applicant or license holder whether issued by DADS or another state or federal agency. An action is final when administrative and judicial remedies are exhausted. All actions, whether pending or final, must be disclosed.

(e) If an applicant owns multiple centers, DADS examines the overall record of compliance in all of the centers or other facilities types and agencies. An overall record poor enough to deny issuance of a new license will not preclude the renewal of licenses of individual centers with satisfactory records.

(f) If DADS denies an application for a license or refuses to issue a renewal of a license, an applicant or license holder may request a hearing by complying with the Texas Health and Human Services Commission's rules for hearings found in 1 TAC Chapter 357, Subchapter I (relating to Hearings Under the Administrative Procedure Act) and DADS rules for hearings found in Chapter 91 of this title (relating to Hearings Under the Administrative Procedure Act). An administrative hearing is conducted in accordance with Texas Government Code, Chapter 2001; 1 TAC Chapter 357, Subchapter I; and Chapter 91 of this title.

 

§15.116 Display of License

 

A center must display the center's license in a conspicuous location readily visible to a person entering the center.

 

§15.117 License Alteration Prohibited

 

A center license may not be altered.

 

§15.118 Reporting Changes in Application Information

 

If certain information provided on an initial or renewal application changes after DADS issues the license, a center must report the change to DADS by following the instructions on the DADS website for reporting a change. For requirements on reporting a change regarding:

(1) the administrator, chief financial officer, and controlling person, a center must comply with §15.119 of this division (relating to Notification Procedures for a Change in Administration and Management) and §15.302 of this chapter (relating to Organizational Structure and Lines of Authority);

(2) the center's contact information, a center must comply with §15.120 of this subchapter (relating to Notification Procedures for a Change in Contact Information);

(3) the center's operating hours, a center must comply with §15.121 of this subchapter (relating to Notification Procedures for a Change in Operating Hours);

(4) name (legal entity or doing business as), a center must comply with §15.122 of this subchapter (relating to Notification Procedures for a Name Change).

 

§15.119 Notification Procedures for a Change in Administration and Management

 

(a) if a change occurs in the following management staff, a center must submit written notice to DADS no later than seven days after the date of a change in:

(1) administrator;

(2) chief financial officer; or

(3) controlling person, as defined in §15.5 of this chapter (relating to Definitions), including:

(A) a change of five percent or more of the controlling interest of a limited partner in a limited partnership or the addition of a controlling person to the limited partnership; or

(B) a change of five percent or more of the controlling interest in a for-profit corporation or limited liability company.

(b) A change in the management staff listed in subsection (a) of this section requires DADS evaluation and approval. DADS reviews the required documents and information submitted. DADS provides notification to a center if a person listed in subsection (a)(1)-(6) of this section does not meet the required qualifications.

 

§15.120 Notification Procedures for a Change of Contact Information

 

A center must submit written notice to DADS no later than seven days after a change in the center's:

(1) telephone number; or

(2) mailing address, if different from the physical location.

 

§15.121 Notification Procedures for a Change in Operating Hours

 

A center must submit written notice to DADS no later than seven days after a change in the center's operating hours.

 

§15.122 Notification Procedures for a Name Change

 

(a) If a center intends to change the name of its legal entity or assumed name, but does not undergo a change of ownership as defined in §15.107 of this subchapter (relating to Change of Ownership), the center must report the name change to DADS no later than seven days after the effective date of the name change.

(b) If a center changes its name but does not undergo a change of ownership, the license holder must notify DADS and submit a copy of a certificate of amendment from the Office of the Secretary of State. After DADS receives the certificate of amendment, a license is issued in the license holder's new name.

 

§15.123 Request and Issuance of Temporary License

 

(a) An applicant for an initial license under §15.105 of this subchapter (relating to Initial License Application Procedures and Issuance) may request that DADS issue a temporary license pending DADS review of the applicant’s application for an initial license.

(b) To request a temporary license, the applicant must submit to DADS Provider Licensure and Certification Unit a written request for a temporary license and a copy of the applicant’s policies, procedures and staffing plans that demonstrate compliance with the licensing standards of this chapter.

(c) DADS issues a temporary license to an applicant who has requested a temporary license if DADS:

(1) determines that the applicant has submitted an application for an initial license in accordance with §15.105 of this subchapter;

(2) determines that the applicant meets the building requirements of Subchapter E of this chapter; and

(3) approves the applicant’s policies, procedures and staffing plans submitted in accordance with subsection (b) of this section.

(d) If DADS issues a temporary license, the center may admit no more than six minors to the center until the temporary license expires or terminates.

(e) The issuance of a temporary license constitutes DADS notice to the applicant of the approval of the temporary license request.

(f) A temporary license expires on the earlier of:

(1) 90 days after DADS issues the temporary license or the last day of any extension DADS grants in accordance with subsection (g) of this section; or

(2) the date DADS issues an initial license.

(g) A temporary license holder may request that DADS extend the term of a temporary license by 90 days. To request an extension, the license holder must submit to DADS Provider License and Certification Unit, a written request for an extension. If DADS receives the request at least 30 days before the date the temporary license expires, DADS extends the term of the license for 90 days and notifies the temporary license holder of the extension in writing. DADS grants an applicant only one temporary license extension for a center.

(h) A temporary license holder must comply with the requirements of THSC Chapter 248A and the licensing standards of this chapter for the term of the temporary license. DADS may take the enforcement action described in Subchapter G of this chapter (relating to Enforcement) if the temporary license holder does not comply with THSC Chapter 248A or this chapter.

(i) DADS may visit or conduct an investigation or inspection of a center owned or operated by a temporary license holder, as described in Subchapter F of this chapter (relating to Inspections and Visits).