(a) The center's administrator must complete pre-licensing program training before an applicant may submit an initial application for a license.
(b) An applicant for an initial license must submit:
  (1) a complete and correct application including all documents and information that HHSC requires as part of the application process;
  (2) the correct license fee established in §15.112 of this subchapter (relating to Licensing Fees);
  (3) a letter of credit for $250,000 from a bank that is insured by the Federal Deposit Insurance Corporation, or other documentation acceptable to HHSC, to demonstrate an applicant's financial viability; and
  (4) all other documents described in the instructions provided on the application and on the HHSC website.
(c) After HHSC receives an application for an initial license and the correct license fee, HHSC reviews the application and notifies the applicant if additional information is needed to complete the application.
(d) An applicant must submit written notice to HHSC that the center is ready for a Life Safety Code inspection.
  (1) The written notice must be submitted:
    (A) with the application; or
    (B) no later than 120 days after HHSC Licensing and Credentialing Section receives the application.
  (2) After HHSC receives the written notice for a Life Safety Code inspection and an applicant has satisfied the application submission requirements, HHSC staff conducts an on-site Life Safety Code inspection.
(e) The center must meet the building requirements described in Subchapter E of this chapter (relating to Building Requirements). If a center fails to meet the building requirements and fails to implement an approved written plan of correction no later than 120 days after the initial Life Safety Code inspection, HHSC denies the license application.
(f) If a center meets the building requirements in Subchapter E of this chapter, the center may admit no more than three minors. If the center admits a minor, the applicant must send written notice to HHSC indicating the center is ready for a health inspection. The health inspection request must be submitted no later than 120 days after the date the center meets the building requirements.
  (1) HHSC conducts an on-site health inspection to determine compliance with this chapter.
  (2) If the center fails to comply with this chapter and fails to implement an approved written plan of correction no later than 120 days after the date of the initial health inspection, HHSC denies the license application.
(g) If an applicant receives a notice from HHSC that some or all of the information is missing or incomplete, an applicant must submit the requested information no later than 30 days after the date of the notice. If the applicant fails to timely submit the requested information, HHSC denies the application. If HHSC denies the application, HHSC does not refund the license fee.
(h) HHSC issues an initial license if it determines that an applicant has met the provisions of this chapter and THSC Chapter 248A.
(i) The issuance of an initial license constitutes notice from HHSC to the center of the approval of the application.
(j) HHSC issues a center license to the license holder named on the license at the place of business listed on the license. The license is not transferable or assignable.
(k) The license includes:
  (1) the license holder's name;
  (2) the name of the center;
  (3) the center's place of business;
  (4) the center's licensed capacity;
  (5) a statement that the center provides services to minors for 12 hours or less in a 24-hour period but no overnight care; and
  (6) the effective date of the license.
(l) HHSC may deny an application for an initial license if the applicant, a controlling person, or a person required to submit background and qualification information fails to meet the criteria for a license established in §15.101 of this subchapter (relating to Criteria and Eligibility for a License) or for any reason specified in §15.115 of this subchapter (relating to Criteria for Denial of a License).
(m) If HHSC denies an application for an initial license, HHSC sends the applicant written notice of the denial and informs the applicant of the right to request an administrative hearing to appeal the denial. The administrative hearing is held in accordance with 1 TAC Chapter 357, Subchapter I (relating to Hearings Under the Administrative Procedure Act) and Chapter 91 of this title (relating to Hearings Under the Administrative Procedure Act).
(n) An initial license expires on the third anniversary after the effective date of the initial license.

Source Note: The provisions of this §550.105 adopted to be effective September 1, 2014, 39 TexReg 6569; amended to be effective October 29, 2018, 43 TexReg 7188; transferred effective May 1, 2019, as published in the Texas Register April 12, 2019, 44 TexReg 1875