(a) The Health and Human Services Commission (HHSC) may waive the maximum prescribed funding percentage, as described in Human Resources Code §51.003(a), when at least one of the following occurs:
  (1) The center's income for the contract year decreased relative to the actual income received during the previous contract year. Decreases in funding caused by a center's noncompliance, negligence, or deficiencies will not be considered when making this calculation.
  (2) The center's HHSC award for center services increases.
(b) If a center receives three or more funding waivers in a five-year period, the center may be subject to corrective action.

Source Note: The provisions of this §356.1604 adopted to be effective December 23, 2007, 32 TexReg 9335; amended to be effective September 1, 2013, 38 TexReg 4309; transferred effective April 1, 2024, as published in the March 8, 2024, issue of the Texas Register, 49 TexReg 1507