1. (a) To become a provider agency, an applicant must:

   1. (1) be selected by DADS, through a request for proposals process, to submit an application to CMS to become a provider agency;
   2. (2) be approved by CMS as described in 42 CFR, Part 460, Subpart B to be a provider agency;
   3. (3) enter into a program agreement with CMS and DADS as described in 42 CFR, Part 460, Subpart C; and
   4. (4) be licensed as an adult daycare center.
2. (b) An applicant that meets the requirements in subsection (a)(1) - (4) of this section must apply for a PACE contract with DADS to provide PACE services in accordance with §49.203 of this title (relating to Provisional Contract Application Process), as if applying for a provisional contract. DADS approves or denies the request for a contract in accordance with §49.207 and §49.208 of this title (relating to Provisional Contract Application Denial and Provisional Contract Application Approval).

3. (c) A provider agency must:

   1. (1) comply with provisions of this chapter and 42 CFR, Part 460;
   2. (2) meet all applicable local, state, and federal regulations;
   3. (3) maintain the program agreement; and
   4. (4) maintain licensure as an adult daycare center.

4. (d) The following apply to a provider agency's PACE contract as if the provider agency is a contractor:

   1. (1) §49.210 of this title (relating to Contractor Change of Ownership or Legal Entity);
   2. (2) Chapter 49, Subchapter C of this title (relating to Requirements of a Contractor);
   3. (3) §49.413 of this title (relating to Investigation);
   4. (4) §49.414 of this title (relating to Financial Review);
   5. (5) Chapter 49, Subchapter E of this title (relating to Enforcement by DADS and Termination by Contractor); and
   6. (6) Chapter 49, Subchapter F of this title (relating to Review by DADS of Expiring or Terminated Contract).
5. (e) At the end of the term of the PACE contract, DADS may renew the PACE contract. If DADS does not renew the PACE contract, DADS notifies the provider agency in writing.
6. (f) DADS terminates the PACE contract during the contract term if the program agreement is terminated. DADS notifies the provider agency in writing if a PACE contract is terminated.

Source Note:The provisions of this §270.8 adopted to be effective March 24, 2004, 29 TexReg 2923; amended to be effective September 1, 2014, 39 TexReg 6674; transferred effective July 31, 2024, as published in the July 5, 2024, issue of the Texas Register, 49 TexReg 4933.