(a) If HHSC determines that a DSRIP project is ineligible to continue in its current form, that DSRIP project may not participate in the transition year. A performer affected by such a determination will have the opportunity to use the funds associated with the DSRIP project beginning in DY7.
(b) For each DSRIP project that HHSC determines is eligible to continue, the performer must indicate, by a date to be determined by HHSC, whether it chooses to:
  (1) discontinue the DSRIP project in the transition year; or
  (2) continue the DSRIP project in the transition year.
(c) If a performer indicates to HHSC, by a date to be determined by HHSC, that it chooses to discontinue the DSRIP project in the transition year, the performer may not propose any new DSRIP projects for the entirety of the extension period with funds associated with the discontinued DSRIP project.
(d) If a performer indicates to HHSC, by a date to be determined by HHSC, that it chooses to continue the DSRIP project in the transition year, the performer must indicate, by a date to be determined by HHSC, whether it chooses to:
  (1) continue the DSRIP project for the remainder of the extension period; or
  (2) replace the DSRIP project with a new DSRIP project to commence at the beginning of the second DY of the extension period.
(e) If a DSRIP project is withdrawn prior to the second payment period for DY7, HHSC will recoup all prior extension period DSRIP payments associated with the DSRIP project.
(f) If a DSRIP project is withdrawn after the second payment period for DY7, but before the first reporting period for DY8, no prior extension period DSRIP payments associated with the DSRIP project will be recouped due to withdrawal.
(g) If a DSRIP project is withdrawn after the first reporting period for DY8, any DSRIP payments made after that period will be recouped.

Source Note: The provisions of this §354.1645 adopted to be effective June 16, 2016, 41 TexReg 4241