(a) A contractor must notify HHSC if the contractor intends to:
  (1) terminate its contract; or
  (2) not enter into a standard contract when its contract expires.
(b) The notification required by subsection (a) of this section must be given in accordance with §49.302(q) of this chapter (relating to General Requirements) and must:
  (1) include:
    (A) the contract number;
    (B) the type of program or service;
    (C) the proposed date of contract termination or the date of contract expiration;
    (D) the reason for terminating the contract or not entering into a standard contract; and
    (E) if it is notification of termination and the reason for terminating the contract is a change of ownership or change of legal entity, the proposed date of the change; and
  (2) be received by HHSC at least 60 days before the proposed date of the termination or the date of expiration.
(c) If a contractor terminates its contract or does not enter into a standard contract when its contract expires:
  (1) the contractor must:
    (A) cooperate fully with HHSC, the LIDDA if applicable, and other contractors to transfer individuals receiving services from the contractor; and
    (B) submit documentation or take other action as directed by HHSC; and
  (2) HHSC:
    (A) notifies individuals receiving services from the contractor or LARs that:
      (i) the contractor is terminating the contract or not entering into a standard contract when its contract expires and that HHSC has placed or will place the contractor's payments on a vendor hold; and
      (ii) that the individuals or LARs may choose to receive services under a contract listed on the choice list, subject to program-specific requirements; and
    (B) removes the contract to be terminated or the expired contract from the appropriate choice list; and
    (C) notifies the contractor and any controlling person, in writing, of the application denial period set in accordance with §49.702(d) or (e) of this chapter (relating to Application Denial Period).

Source Note: The provisions of this §52.371 adopted to be effective September 1, 2014, 39 TexReg 6637; amended to be effective March 20, 2016, 41 TexReg 1970; amended to be effective September 1, 2018, 43 TexReg 5230; amended to be effective December 22, 2020, 45 TexReg 9234; transferred effective April 29, 2024, as published in the March 29, 2024, issue of the Texas Register, 49 TexReg 2091