(a) An entity may not establish or provide individualized skills and socialization services in Texas without a license issued by the Texas Health and Human Services Commission (HHSC) in accordance with Texas Human Resources Code, Chapter 103, and this subchapter.
(b) An individualized skills and socialization provider must be listed on HHSC's Day Activity and Health Services (DAHS) directory as an individualized skills and socialization provider in order to provide individualized skills and socialization services.
(c) An applicant for a license must submit a complete application form, follow the application instructions, electronically upload required documentation, and submit the required license fee to HHSC through the online licensure portal.
(d) An applicant for a license must complete the HHSC required training to become an individualized skills and socialization provider and provide documentation that required training is complete through the application in the online licensure portal.
(e) An applicant for a license must submit to HHSC as part of the application the:
  (1) name of the business entity to be licensed;
  (2) tax identification number;
  (3) name of the chief executive officer (CEO) or equivalent person;
  (4) ownership information;
  (5) address of the on-site individualized skills and socialization location or, for providers of off-site individualized skills and socialization services only, the designated place of business where records are kept;
  (6) name of program providers using this entity for individualized skills and socialization services, if any;
  (7) maximum number of individuals who can receive individualized skills and socialization at or from this location, which will become the licensed capacity when approved;
  (8) effective date the entity will be available to provide individualized skills and socialization services;
  (9) attestation that the applicant has created and implemented a community engagement plan, including:
    (A) a description of how the organization will meet the requirement to make off-site individualized skills and socialization available to individuals;
    (B) a description of how the organization will work with contracted program providers to obtain information from the individuals' person-directed plans (PDP) and use that information to inform on-site and off-site activities that are aligned with an individual's PDP; and
    (C) a description of how staff will respond to an emergency or other unexpected circumstance that may occur during the provision of on-site and off-site individualized skills and socialization to ensure the health and safety of all individuals; and
  (10) any other information required by the online application instructions.
(f) HHSC may deny an application that remains incomplete after 120 days.
(g) Before issuing a license, HHSC considers the background and qualifications of:
  (1) the applicant or license holder;
  (2) a person with a disclosable interest;
  (3) an affiliate of the applicant or license holder;
  (4) an administrator;
  (5) a manager; and
  (6) any other person disclosed on the submitted application as defined by the application instructions.
(h) If the applicant is located within, on the grounds of, or physically adjacent to a prohibited setting as set forth in the rules governing the HCS Program and the applicant has not been approved through heightened scrutiny process, HHSC will refer the application for enforcement.
(i) An applicant for a license must affirmatively demonstrate that the applicant meets the requirements for operation based on an on-site survey. However, through the end of HHSC fiscal year 2023, at its sole discretion, HHSC may issue a temporary initial license effective for 180 days which may be extended until such time as an applicant demonstrates that it meets the requirements for operation based on this on-site survey.
(j) HHSC issues a license if it finds that the applicant or license holder, all persons described in subsection (h) of this section, and the provider meet all applicable requirements of this subchapter, and the on-site individualized skills and socialization location, if applicable, meets all requirements of this subchapter.
(k) HHSC will implement a system under which licenses issued under this subchapter expire on staggered dates. Through the end of HHSC fiscal year 2023, applicants may receive:
  (1) a one-year license;
  (2) a two-year license;
  (3) a three-year license.
(l) An individualized skills and socialization provider must not provide services to more individuals than the number of individuals specified on its license.
(m) An individualized skills and socialization provider must prominently and conspicuously post its license for display in a public area of the on-site individualized skills and socialization location that is readily accessible to individuals, employees, and visitors. For an off-site only individualized skills and socialization provider, the license must be displayed in a conspicuous place in the designated place of business.
(n) If any information submitted through the application process changes following licensure, the license holder must submit an application through the online licensure portal to make the changes.

Source Note: The provisions of this §559.205 adopted to be effective January 1, 2023, 47 TexReg 8709