1. (a) DADS, after providing notice and opportunity for a hearing, may exclude a person from eligibility for a license if the person or any person described in §19.201(e) of this subchapter (relating to Criteria for Licensing) has substantially failed to comply with the rules in this chapter. During the period of exclusion, the excluded person is not eligible to be a license holder or a controlling person of a license holder. The period of exclusion:

   1. (1) must be for at least two years; and

   2. (2) may be:

      1. (A) for no more than ten years if the exclusion is based on conduct that occurred before September 1, 2011; or
      2. (B) throughout the person's lifetime or existence if the exclusion is based on conduct that occurred on or after September 1, 2011.

2. (b) A license holder or controlling person who operates a nursing facility or an assisted living facility for which a trustee was appointed and for which emergency assistance funds, other than funds to pay the expenses of the trustee, were used is subject to exclusion from eligibility for the:

   1. (1) issuance of an original license for a facility for which the person has not previously held a license; or
   2. (2) renewal of the license of the facility for which the trustee was appointed.

Source Note:The provisions of this §554.209 adopted to be effective March 1, 1998, 23 TexReg 1314; amended to be effective August 1, 2000, 25 TexReg 6779; amended to be effective September 1, 2007, 32 TexReg 4231; amended to be effective December 2, 2012, 37 TexReg 9525; transferred effective January 15, 2021, as published in the Texas Register December 11, 2020, 45 TexReg 8871.