(a) Where an area agency on aging serves as a provider agency, the process to dedesignate the provider agency shall be as follows:

1. (1)

   1. (A) The State Long-Term Care Ombudsman shall send the area agency on aging notice of the intent to dedesignate at a specified date.
   2. (B)

(i) The notice shall include the reasons for dedesignation and notice of reconsideration procedures.

1. (ii) Designation is not withdrawn until reasonable notice and opportunity for a hearing is provided.

   1. (iii) Notification of the right to appeal and the appeal procedures are included in the letter notifying the provider agency of a decision to withdraw designation.

      1. (iv) Hearings are conducted by the appeals and hearing units of the Department of Human Services;
2. (2) Dedesignation of the area agency on aging as a provider agency shall not become effective until the reconsideration procedures are exhausted;
3. (3) The area agency on aging and the State Long-Term Care Ombudsman shall provide for the continuation of ombudsman representative services until designation of another entity is effective;
4. (4) The Office of the State Long-Term Care Ombudsman shall terminate the area agency on aging’s contract for ombudsman representative services;

5. (5) The area agency on aging shall:

   1. (A) Surrender intact to the State Long-Term Care Ombudsman or his or her designee all:

      1. (i) Arkansas Long-Term Care Ombudsman Program case records;
      2. (ii) Documentation of all program activities and complaint processing as required by the ombudsman reporting system; and
      3. (iii) Identification cards of all ombudsman representatives associated with the area agency on aging;
   2. (B) At the discretion of the office, surrender any equipment purchased with funds designated for ombudsman services; and
   3. (C) Surrender the balance of any advanced state or federal monies to the office.

(b) Where a provider agency contracts directly with the office, the process to dedesignate the provider agency shall be as follows:

1. (1)

   1. (A) The State Long-Term Care Ombudsman shall send the provider agency notice of the intent to dedesignate at a specified date and may send notice to the applicable area agency on aging.

   2. (B)

      1. (i) The notice shall include the reasons for dedesignation and notice of reconsideration procedures.
      2. (ii) Dedesignation of a provider agency shall not become effective until the reconsideration procedures are exhausted;

2. (2)

   1. (A) The State Long-Term Care Ombudsman shall provide for the continuation of ombudsman representative services until designation of another entity is effective.
   2. (B) The State Long-Term Care Ombudsman, at his or her discretion, may consult with the applicable area agency on aging regarding the provision of ombudsman services in the service area;
3. (3) The office shall terminate its contract with the provider agency;

4. (4) The provider agency shall:

   1. (A) Surrender intact to the State Long-Term Care Ombudsman or his or her designee all:

      1. (i) Program case records;
      2. (ii) Documentation of all program activities and complaint processing as required by the ombudsman reporting system; and
      3. (iii) Identification cards of all ombudsman representatives associated with the provider agency;
   2. (B) At the discretion of the office, surrender any equipment purchased with funds designated for ombudsman services; and
   3. (C) Surrender the balance of any advanced state or federal monies to the office.