(a) The Agency may debar a contractor for reasons including the following:
  (1) Being adjudicated as guilty, pleading guilty, pleading nolo contendere, or receiving a deferred adjudication in a criminal court relating to:
    (A) Obtaining, attempting to obtain, or performing a public or private contract or subcontract;
    (B) Engaging in embezzlement, theft, forgery, bribery, falsification or destruction of records, fraud, receipt of stolen property, making false statements or claims, tax evasion, or any other offense indicating moral turpitude or a lack of business integrity or honesty;
    (C) Use or possession of controlled or illegal substances, or other drug-related offense;
    (D) Violating federal antitrust statutes arising from submitting bids or proposals;
    (E) Committing an offense involving physical or sexual abuse or neglect; or
    (F) Committing an offense involving the direct support or promotion of human trafficking;
  (2) Being debarred from contracting by any unit of the federal or state government;
  (3) Violating Agency contract provisions, including failing to perform according to the terms, conditions, and specifications, or within the time specified, in an Agency contract, including, but not limited to, the following:
    (A) Failing to abide by applicable federal and state statutes, rules, regulations, policies, and procedures, such as those regarding individuals with disabilities and those regarding civil rights;
    (B) Having a record of failure to perform or of unsatisfactory performance according to the terms of one or more contracts or subcontracts, if that failure or unsatisfactory performance has occurred within five years preceding the determination to debar. Failure to perform and unsatisfactory performance include, but are not limited to, the following:
      (i) Failing to correct contract performance deficiencies after receiving written notice about them from the Agency or its authorized agents;
      (ii) Failing to repay or make and complete arrangements satisfactory to the Agency to repay identified overpayments or other erroneous payments, or assessed liquidated damages or penalties;
      (iii) Failing to meet standards that are required for licensure or certification, or that are required by state or federal law, Agency rules, or Agency policy concerning contractors;
      (iv) Failing to execute contract amendments required by the Agency;
      (v) Billing for services or goods not provided to the customer;
      (vi) Submitting a false report or misrepresentation that, if used, may increase individual or statewide rates or fees;
      (vii) Charging customers fees contrary to Agency rules or policy;
      (viii) Failing to notify and reimburse the Agency or its agents for services that the Agency paid for when the contractor received reimbursement from a liable third party;
      (ix) Failing to disclose or make available, upon demand, to the Agency or its representatives (including appropriate federal and state agencies) records that the contractor is required to maintain;
      (x) Failing to provide and maintain services within standards required by statute, regulations, or contract; or
      (xi) Violating the Texas Human Resources, Government, or Labor Code provisions applicable to the contractor or any rule or regulation issued under the referenced Codes;
  (4) Submitting an offer, bid, proposal, or application that contains a false statement or misrepresentation or omits pertinent facts or documents that are material to the procurement;
  (5) Engaging in an abusive or neglectful practice that results in or could result in death or injury to the customer served by the contractor;
  (6) Knowingly and willfully using a debarred individual as an employee, independent contractor, or agent associated with any service provided in performance of a contract with the Agency;
  (7) Failure to pay a substantial debt or debts, including disallowed costs and overpayments, owed to any federal or state agency instrumentality, provided the debt is uncontested by the debtor or, if contested, provided that the debtor's legal and administrative remedies have been exhausted; or
  (8) Any other cause of a serious or compelling nature that affects a contractor's present or future ability to perform under the contract or that presents an imminent risk of harm to or liability for the Agency.
(b) In accordance with terms specified by the Agency, an individual that has been debarred may not:
  (1) receive a contract;
  (2) be allowed to retain a contract that has been awarded before debarment;
  (3) participate as a vendor in Agency programs that do not require the individual to sign a contract or agreement;
  (4) provide goods or services to Agency customers either directly or indirectly while working for an Agency contractor; or
  (5) either directly or through an intermediary, bill to or receive payment from the Agency for any services or supplies provided by the debarred individual on or after the effective date of the debarment. The Agency will not pay for any services ordered, prescribed, or delivered by the debarred individual to Agency customers after the date of debarment. No costs associated with a debarred individual, including the salary, fringe benefits, overhead, payments to, or any other costs associated with an individual who was debarred may be included in an Agency cost report or any other document that will be used to determine an individual payment rate, a statewide payment rate, or a fee. Nothing in this provision shall be construed in a manner that would prevent a debarred individual, who is also a VR customer, from receiving VR services as a VR customer.
(c) A single occurrence of a violation may result in debarment or suspension.

Source Note: The provisions of this §858.11 adopted to be effective June 17, 2015, 40 TexReg 3638; duplicated effective September 1, 2016, as published in the Texas Register September 2, 2016, 41 TexReg 6773; amended to be effective July 6, 2020, 45 TexReg 4532