(a) A license holder must not increase a center's licensed capacity without approval from DADS.
(b) The license holder must submit an application for an increase in capacity in accordance with §15.102 of this subchapter (relating to General Application Requirements) and the correct fee required in §15.112 of this subchapter (relating to Licensing Fees).
(c) The license holder must arrange for an inspection of the center by the local fire marshal and provide written evidence of the fire marshal's approval to DADS.
(d) An applicant must send written notice to DADS indicating 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 DADS Licensing and Credentialing Unit receives the application.
  (2) After DADS receives the written notice for a Life Safety Code inspection and an applicant has satisfied the application submission requirements, DADS staff conducts an on-site Life Safety Code inspection.
(e) If an applicant receives a notice from DADS 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 an applicant fails to submit the requested information no later than 30 days after the notice date, DADS considers the application incomplete and denies the application. If DADS denies the application, DADS does not refund the license fee.
(f) 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, DADS denies the application for a license.
(g) After a center has met Life Safety Code requirements, DADS conducts an on-site health inspection.
(h) DADS issues a new license with an increased capacity if DADS determines that the center is in compliance with this chapter.
(i) If an applicant decides not to continue the application process after submitting the application and correct license fee, an applicant must submit to DADS a written request to withdraw the application. DADS does not refund the license fee.
(j) Before denying an application for an increase in capacity, DADS 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 the THSC Chapter 248A and this chapter to retain the license.
(k) To request an opportunity to show compliance, the license holder must send a written request to DADS. The request must:
  (1) be postmarked no later than 10 days after the date of DADS notice of proposed action and received by DADS no later than 10 days after the date of the postmark; and
  (2) contain documentation that refutes DADS allegations superficially.
(l) The opportunity to show compliance is limited to a review of documentation submitted by the license holder and information DADS used as the basis for the proposed action. The opportunity to show compliance is not an administrative hearing. DADS gives the license holder a written affirmation or reversal of the proposed action.
(m) If DADS denies an application for an increase in capacity, DADS 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 Texas Health and Human Services Commission rules found at 1 TAC Chapter 357, Subchapter I (relating to Hearings Under the Administrative Procedure Act) and DADS hearing rules found in Chapter 91 of this title (relating to Hearings Under the Administrative Procedure Act).

Source Note: The provisions of this §550.109 adopted to be effective September 1, 2014, 39 TexReg 6569; transferred effective May 1, 2019, as published in the Texas Register April 12, 2019, 44 TexReg 1875