(a) If a host agency, or a governmental entity or nonprofit organization contracting with a host agency, as described in §88.2(16)(B) of this chapter (relating to Definitions), has an organizational conflict of interest, the host agency must, within 30 days after identifying the conflict of interest:      
        (1) complete HHSC form "Conflict of Interest Identification, Removal, and Remedy," including a recommended action to:                  (A) remove a conflict of interest described in §88.2(25)(A) - (C) of this chapter (relating to Definitions); and                   (B) remove or remedy a conflict of interest described in §88.2(25)(D) - (L) of this chapter; and         
        (2) submit the completed form to the Office.       
      (b) A host agency must ensure that HHSC form "Individual Conflict of Interest Screening of a Representative of the Office," is completed by a managing local ombudsman:      
        (1) at least once a year; and       
        (2) if the host agency identifies an individual conflict of interest involving the managing local ombudsman.       
      (c) Within five business days after identifying an individual conflict of interest regarding a managing local ombudsman, the host agency must:      
        (1) complete HHSC form "Conflict of Interest Identification, Removal, and Remedy," including a recommended action to remove or remedy the conflict of interest; and       
        (2) submit the completed form to the Office.       
      (d) If the Office receives a completed form described in subsection (a) or (c) of this section, the State Ombudsman reviews the form and approves, modifies, or rejects the recommended action to remove or remedy the conflict of interest.      
        (1) If it is not possible to remove or remedy an organizational conflict of interest of the host agency, the State Ombudsman removes the designation of the local ombudsman entity, as described in §88.104(c)(2)(A) of this chapter (relating to Designation of a Local Ombudsman Entity).       
        (2) If it is not possible to remove or remedy an individual conflict of interest of the managing local ombudsman, the State Ombudsman refuses to initially certify or terminates certification of the managing local ombudsman as described in §88.103(a)(2) and (d)(4) of this chapter (relating to Refusal, Suspension, and Termination of Certification of an Ombudsman).       
     Source Note:        The provisions of this §88.403 adopted to be effective April 5, 2018, 43 TexReg 2007