(a) DADS may suspend a center's license for:
  (1) a violation of THSC Chapter 248A or standard in this chapter committed by the license holder, applicant, or a person listed on the application;
  (2) an intentional or negligent act by a center or an employee of a center that DADS determines significantly affects the health and safety of a minor served at a center;
  (3) use of drugs or intoxicating liquors to an extent that it affects the license holder's or applicant's professional competence;
  (4) a felony conviction, including a finding or verdict of guilty, an admission of guilt, or a plea of nolo contendere, in Texas or another state of any person required by this chapter to undergo a background and criminal history check;
  (5) fraudulent acts, including acts relating to Medicaid fraud and obtaining or attempting to obtain a license by fraud or deception committed by any person listed on the application;
  (6) license revocation, suspension, or other disciplinary action taken in Texas or another state against the license holder or any person listed in the application;
  (7) criteria described in Chapter 99 of this title (relating to Denial or Refusal of License) that applies to any person required by this chapter to undergo a background and criminal history check;
  (8) aiding, abetting, or permitting a violation described in paragraph (1) of this subsection about which a person listed on the application had or should have had knowledge;
  (9) a license holder or applicant's failure to provide the required information, facts, or references;
  (10) a license holder or applicant who knowingly:
    (A) submits false or intentionally misleading statements to DADS on an application;
    (B) uses subterfuge or other evasive means of filing an application;
    (C) engages in subterfuge or other evasive means of filing an application on behalf of another who is unqualified for licensure; or
    (D) conceals a material fact on an application; or
  (11) a person listed on the application failing to pay the following fees, taxes, and assessments when due:
    (A) licensing fees as described in §15.112 of this chapter (relating to Licensing Fees);
    (B) plan review fees as described in §15.113 of this chapter (relating to Plan Review Fees); or
    (C) franchise taxes, if applicable.
(b) DADS may suspend a license simultaneously with any other enforcement action available to DADS.
(c) DADS notifies the license holder by personal service, facsimile transmission, or registered or certified mail of DADS intent to suspend the license, including the facts or conduct alleged to warrant the suspension.
(d) The license holder has an opportunity to show compliance with all requirements of law to retain the license, as provided in §15.1407 of this subchapter (relating to Opportunity to Show Compliance). If the license holder requests an opportunity to show compliance, DADS gives the license holder a written affirmation or reversal of the proposed action.
(e) DADS notifies the license holder by personal services, facsimile transmission or by registered or certified mail of DADS suspension of the center license. The license holder has 20 days after receipt of the notice to request a hearing in accordance with Texas Government Code, Chapter 2001, and the formal hearing procedures in 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). The license suspension takes effect when the deadline for an appeal of the suspension expires, unless the license holder appeals the suspension.
(f) If a license holder appeals, the license remains valid until all administrative appeals are final, unless the license expires without a timely application for renewal submitted to DADS. The license holder must continue to submit a renewal application in accordance with §15.106 of this chapter (relating to Renewal License Application Procedures and Issuance) until the action to suspend the license is completed. However, DADS does not renew the license until it determines the reason for the proposed action no longer exists.
(g) If a license holder appeals, the enforcement action takes effect when all administrative appeals are final and the proposed enforcement action is upheld. If the center wins the appeal, DADS does not take the proposed action.
(h) If DADS suspends a license, the suspension remains in effect until DADS determines that the reason for suspension no longer exists. A suspension may last no longer than the term of the license. DADS conducts an on-site investigation before making a determination. During the suspension, the license holder must return the license to DADS.

Source Note: The provisions of this §550.1402 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