(a) The State Ombudsman may designate a local ombudsman entity to perform the functions of the Ombudsman Program in an ombudsman service area.
(b) The State Ombudsman does not designate a local ombudsman entity if the host agency or a governmental entity or nonprofit organization contracting with the host agency, as described in §88.2(20)(B) of this chapter (relating to Definitions):
  (1) has an organizational conflict of interest described in §88.2(30)(A) - (C) of this chapter; or
  (2) has an organizational conflict of interest described in §88.2(30)(D) - (L) of this chapter that has not been removed or remedied as approved by the State Ombudsman in accordance with §88.403(d) of this chapter (relating to Conflicts of Interest Regarding a Host Agency).
(c) The State Ombudsman may remove the designation of a local ombudsman entity if:
  (1) the host agency or local ombudsman entity has policies, procedures, or practices that the State Ombudsman determines to be in conflict with the laws, rules, policies, or procedures governing the Ombudsman Program; or
  (2) the host agency or local ombudsman entity fails to comply with the requirements of this chapter including:
    (A) not removing or remedying an organizational or individual conflict of interest as described in §88.303 of this chapter (relating to Individual Conflicts of Interest Regarding a Local Ombudsman Entity) and §88.403 of this chapter;
    (B) not submitting:
      (i) a written plan of correction required by:
        (I) §88.106(d) of this subchapter (relating to Onsite Monitoring of a Local Ombudsman Entity and a Host Agency);
        (II) §88.107(d) of this subchapter (relating to Desk Review Monitoring of a Local Ombudsman Entity); and
        (III) 88.409(b) of this chapter (relating to Noncompliance by a Host Agency); or
      (ii) a modified written plan of correction required by:
        (I) §88.106(e) of this subchapter;
        (II) §88.107(e) of this subchapter; and
        (III) §88.409(c) of this chapter; or
    (C) not completing actions in accordance with an approved plan of correction or an approved modified plan of correction as required by:
      (i) §88.106(d) of this subchapter;
      (ii) §88.107(d) of this subchapter; and
      (iii) §88.409(b) of this chapter.
(d) If the State Ombudsman removes the designation of a local ombudsman entity, the Office notifies the local ombudsman entity and host agency, in writing, of the decision to remove the designation and includes the reasons for the decision in the notification.
(e) A host agency may request reconsideration of the State Ombudsman's decision to remove the designation of the local ombudsman entity. To request a reconsideration of the decision, the host agency must, within 10 days after receiving the notification of removal of the designation, submit a written request for reconsideration and additional information supporting the request to the State Ombudsman.
(f) If the removal of designation of a local ombudsman entity results in termination of the contract between HHSC and the host agency, the host agency may appeal the termination in accordance with §213.7 of this title (relating to Appeal Procedures for Area Agency on Aging Contractors).

Source Note: The provisions of this §88.104 adopted to be effective April 5, 2018, 43 TexReg 2007; amended to be effective May 22, 2024, 49 TexReg 3566