(a) A center license expires on the third anniversary after the effective date. To renew a license, a license holder must submit a renewal application to HHSC before the expiration date. HHSC sends written notice of expiration of a license to the license holder at least 120 days before the expiration date of a license. The written notice includes instructions for completing the renewal application.
(b) A license holder must comply with the requirements in §15.102 of this subchapter (relating to General Application Requirements) and §15.114 of this subchapter (relating to Time Periods for Processing All Types of License Applications) to renew a license.
(c) In accordance with Texas Government Code, §2001.054, HHSC considers that a license holder meets the renewal application submission deadline if the license holder submits:
  (1) no later than 60 days before the expiration date of the current license:
    (A) a complete application for renewal or an incomplete application for renewal with a letter explaining the circumstances that prevented the inclusion of the missing information; and
    (B) the correct license fee established in §15.112 of this subchapter (relating to Licensing Fees); or
  (2) during the 60-day period ending on the date the current license expires:
    (A) a complete application for renewal or an incomplete application with a letter explaining the circumstances that prevented the inclusion of the missing information;
    (B) the correct license fee established in §15.112 of this subchapter; and
    (C) the late fee established in §15.112 of this subchapter.
(d) HHSC reviews a renewal application and notifies the license holder if additional information is needed to complete the application.
(e) It is the license holder's responsibility to ensure that the application is timely received by HHSC. Failure to submit a timely and sufficient renewal application with the correct license fee will result in the expiration of the license.
(f) If a license holder submits a renewal application to HHSC that is postmarked after the expiration date of the license, HHSC denies the renewal application and does not refund the renewal license fee. The license holder is not eligible to renew the license and must cease operation on the date the license expires. A license holder whose license expires must apply for an initial license in accordance with §15.105 of this subchapter (relating to Initial License Application Procedures and Issuance).
(g) HHSC issues a renewal license after determining that an applicant and the center have met the provisions of this chapter.
(h) The issuance of a renewal license constitutes notice from HHSC to the center that the application is approved.
(i) A renewal license issued in accordance with this chapter expires on the third anniversary after the effective date.
(j) HHSC may pend action on an application for the renewal of a license for up to six months if the center is not in compliance with this chapter based on an on-site inspection.
(k) HHSC may deny an application for the renewal of a license if an applicant, controlling person, or any 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).
(l) Before denying a license renewal application, HHSC gives the license holder:
  (1) notice by personal service or by registered or certified mail of the facts or conduct alleged to warrant the proposed action; and
  (2) an opportunity to show compliance with all the requirements of THSC Chapter 248A and this chapter to retain the license.
(m) To request an opportunity to show compliance, the license holder must send a written request to HHSC. The request must:
  (1) be postmarked no later than 10 days after the date of notice from HHSC of the proposed action and received by HHSC no later than 10 days after the date of the postmark; and
  (2) contain documentation that refutes HHSC allegations specifically.
(n) The opportunity to show compliance is limited to a review of documentation submitted by the license holder and information HHSC used as the basis for the proposed action. The opportunity to show compliance is not an administrative hearing. HHSC gives the license holder a written affirmation or reversal of the proposed action.
(o) If HHSC denies an application for a renewal license, HHSC sends the license holder a written notice of the denial and informs the license holder 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 HHSC hearing rules found in Chapter 91 of this title (relating to Hearings Under the Administrative Procedure Act).

Source Note: The provisions of this §550.106 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