(a) HHSC may place a contractor on a referral hold if:
  (1) HHSC has proposed to terminate the contract;
  (2) HHSC determines the contractor has not complied with the contract, including a determination of non-compliance described in §49.411(e) of this chapter (relating to Contract and Fiscal Monitoring) or §49.413(e) of this chapter (relating to Investigation);
  (3) the contractor has not submitted or has not complied with an immediate protection plan as described in §49.511(d) of this subchapter (relating to Immediate Protection and Immediate Protection Plan);
  (4) the contractor has not submitted or has not complied with a corrective action plan as described in §49.522(d) of this division (relating to Corrective Action Plan); or
  (5) the contractor's application packet:
    (A) contained incorrect information; or
    (B) contains information that has become incorrect and the contractor has not notified HHSC in accordance with §49.302(i) - (q) of this chapter (relating to General Requirements).
(b) If HHSC places a contractor on a referral hold in accordance with subsection (a) of this section, HHSC notifies the contractor of the referral hold in writing.
(c) A contractor may request that HHSC conduct an informal review of a referral hold. The request must be in writing and received by HHSC within 20 days after the date of the notice of the referral hold from HHSC. The contractor must include in the written request:
  (1) the reasons the contractor believes the referral hold was improper;
  (2) documentation to support the reasons; and
  (3) a copy of the notice from HHSC of the referral hold.
(d) HHSC releases a referral hold:
  (1) imposed in accordance with subsection (a)(1) of this section if:
    (A) HHSC withdraws the proposed contract termination;
    (B) the contractor appeals the proposed contract termination and the final decision from the administrative hearing is favorable to the contractor; or
    (C) the contractor requests an informal review in accordance with subsection (c) of this section and, as a result of the review, HHSC determines that the referral hold was improper;
  (2) imposed in accordance with subsection (a)(2) - (5) of this section if:
    (A) a period of time determined by HHSC has elapsed; or
    (B) the contractor requests an informal review in accordance with subsection (c) of this section and, as a result of the review, HHSC determines that the referral hold was improper.

Source Note: The provisions of this §52.275 adopted to be effective September 1, 2014, 39 TexReg 6637; amended to be effective September 1, 2018, 43 TexReg 5230; transferred effective April 29, 2024, as published in the March 29, 2024, issue of the Texas Register, 49 TexReg 2091