(a) In this section, the terms "close" and "closure" refer to a facility ceasing to operate. The terms do not include temporarily relocating individuals who reside in a facility.
(b) Except as provided in subsection (c) of this section, if a program provider intends to voluntarily close a facility, the program provider must submit to DADS, at least 60 days before the facility closes, written notice of the program provider's intent to close the facility, which includes:
  (1) the anticipated date of closure; and
  (2) a description of how the facility will discharge and relocate an individual who resides in the closing facility to a new residence.
(c) If, for reasons beyond the program provider's control, the program provider cannot provide the notice required by subsection (b) of this section at least 60 days before the program provider anticipates closing the facility, the program provider must state in the notice the reason why a shorter time period is necessary.
(d) The program provider must comply with §9.227 of this subchapter (relating to Discharge from a Facility).
(e) If a facility is closing, DADS imposes a vendor hold on payments due to the program provider under the provider agreement until an audit conducted in accordance with §9.269 of this subchapter (relating to Audits) is complete.
(f) A program provider that closes a facility may request that DADS suspend some or all of the facility's certified capacity for up to one year after the facility closes.
(g) To request that a facility's certified capacity be suspended:
  (1) the facility's certified capacity must be eight or less;
  (2) the facility must not be the subject of any proposed or pending enforcement action; and
  (3) the program provider must:
    (A) voluntarily close the facility; and
    (B) submit a letter to DADS requesting suspension of the facility's certified capacity.
(h) A letter submitted in accordance with subsection (g)(3)(B) of this section must include:
  (1) the legal name and address of the program provider;
  (2) the closing facility's name and address;
  (3) the facility's identification number;
  (4) the facility's contract number;
  (5) the facility's license number and expiration date, if the facility is licensed;
  (6) the certified capacity of the facility;
  (7) the certified capacity for which the program provider is requesting the suspension;
  (8) the anticipated closure date of the facility;
  (9) justification for the suspension of certified capacity; and
  (10) a statement regarding the possible use of the certified capacity in the future.
(i) Within 30 days after DADS receives a program provider's letter, as described in subsection (g)(3)(B) of this section, DADS notifies the program provider in writing whether DADS has approved or denied the program provider's request to suspend capacity.
(j) If DADS approves a request to suspend capacity, the notification from DADS states:
  (1) the period of time the capacity is suspended, which must not exceed one year;
  (2) the effective date of the suspension;
  (3) the certified capacity being suspended; and
  (4) the capacity available, which must not exceed six per facility.
(k) After DADS approves a request to suspend capacity, DADS does not extend the period of time for which capacity is suspended.
(l) A program provider may not transfer a facility's suspended capacity to another entity.
(m) DADS may rescind its approval of a request to suspend certified capacity. If DADS rescinds its approval, the suspended capacity reverts to the control of DADS.
(n) A program provider does not receive an administrative hearing to challenge DADS denial of a request to suspend capacity or DADS rescission of its approval to suspend capacity.
(o) To activate a facility's suspended certified capacity, the program provider must submit an application for enrollment in the ICF/IID Program in accordance with Division 2 of this subchapter (relating to Provider Enrollment) before the suspension period ends. If a program provider does not submit an application for enrollment in the ICF/IID Program before the suspension period ends, the suspended capacity is not available to the program provider and reverts to the control of DADS. If DADS rejects a program provider's application for enrollment in the ICF/IID Program, the suspended capacity is not available to the program provider and reverts to the control of DADS.

Source Note: The provisions of this §261.218 adopted to be effective April 17, 2016, 41 TexReg 2600; transferred effective October 1, 2020, as published in the Texas Register August 28, 2020, 45 TexReg 6127