(a) Causes for suspension. TDMHMR may place a contractor or potential contractor's contractual rights in suspension whenever TDMHMR finds that there is a reasonable basis to believe that grounds for debarment as specified in §406.64 of this title (relating to Conditions for and Conditions of Debarment) exists. Suspension may be imposed immediately following TDMHMR's notification to a contractor or potential contractor. In addition, suspension may be imposed on a potential contractor or subcontractor if he has an outstanding indictment or the department has information about an offense that is grounds for debarment.
(b) Conditions of suspension.
  (1) TDMHMR may withhold payments, in whole or in part, to the affected contractor during the period of suspension.
  (2) TDMHMR may refuse to accept a bid, offer, application, or proposal from, or to award a contract to, the affected potential contractor during the period of suspension.
  (3) TDMHMR may cease referrals of additional consumers to the suspended entity.
  (4) If TDMHMR determines that the underlying reasons for the suspension have been resolved in favor of the contractor, TDMHMR must, if applicable:
    (A) pay the withheld payments for any services that may have been provided during the suspension and which meet the terms of an existing contract; and
    (B) resume contract payments.
  (5) If TDMHMR determines that underlying reasons for the suspension have not been resolved in favor of the contractor, TDMHMR will institute debarment proceedings.
  (6) Individuals and entities whose contractual rights have been placed in suspension may not:
    (A) receive a contract; or
    (B) submit an offer, bid, application or proposal for a contract.
(c) Entities that may be suspended. A suspension may be applied against an individual, an entire legal entity, or a specified part of a legal entity.

Source Note: The provisions of this §6.65 adopted to be effective March 25, 1997, 22 TexReg 2751; transferred effective September 1, 2004, as published in the Texas Register September 10, 2004, 29 TexReg 8841