1. (a) If HHSC decides not to offer a standard contract to a contractor, as described in §49.561 of this chapter (relating to HHSC Does Not Offer a Standard Contract), HHSC sets an application denial period for the contractor or controlling person of the contractor that applies:

   1. (1) to all programs and services; and
   2. (2) for a period of time determined by HHSC, but no less than 12 months after the date the previous contract expires.

2. (b) If HHSC terminates a contract for the contractor's failure to provide services for 12 consecutive months, as required by §49.534(a)(2)(A) of this chapter (relating to Termination of Contract by HHSC), HHSC sets an application denial period for the contractor or controlling person of the contractor that applies:

   1. (1) to the same program or service as the terminated contract; and
   2. (2) for 12 months after the date of termination.

3. (c) If HHSC terminates a contract for a reason other than the contractor's death or the contractor's failure to provide services for 12 consecutive months, HHSC sets an application denial period for the contractor or controlling person of the contractor that applies:

   1. (1) to all programs and services; and
   2. (2) for a period of time determined by HHSC, but no less than 12 months after the date of termination.

4. (d) If a contractor does not enter into a standard contract or terminates its contract in accordance with the contract, including §49.551 of this chapter (relating to Contractor Terminating Contract or Not Entering into a Standard Contract), for a reason other than a change of ownership or change of legal entity, HHSC sets an application denial period for the contractor or controlling person of the contractor that applies:

   1. (1) to the same service or program as the terminated or expired contract; and
   2. (2) for a period of time determined by HHSC, but no less than 12 months after the date the contract terminated or expired.

5. (e) If a contractor does not enter into a standard contract or terminates a contract not in accordance with the contract, including §49.551 of this chapter, HHSC sets an application denial period for the contractor or controlling person of the contractor that applies:

   1. (1) to all programs and services; and
   2. (2) for a period of time determined by HHSC, but no less than 12 months after the date the contract terminated or expired.
6. (f) If a contractor submits a provisional contract application to HHSC after the expiration of an application denial period described in subsections (a) - (e) of this section, HHSC may deny the contract application for a reason described in §49.207 of this chapter (relating to Provisional Contract Application Denial).

Source Note:The provisions of this §52.702 adopted to be effective September 1, 2014, 39 TexReg 6637; amended to be effective September 1, 2018, 43 TexReg 5230; amended to be effective December 22, 2020, 45 TexReg 9234; transferred effective April 29, 2024, as published in the March 29, 2024, issue of the Texas Register, 49 TexReg 2091.