1. (1) The office may de-designate a local area agency if the local area agency:

   1. (a) fails to meet the criteria for designation;
   2. (b) has a conflict of interest as described in 42 U.S.C. 3058g(f)(2);
   3. (c) fails to disclose any conflict of interest described in 42 U.S.C. 3058g(f);
   4. (d) violates the office's confidentiality requirements, as described in Section R500-3-19;
   5. (e) fails to provide adequate ombudsman program services;
   6. (f) fails to fill a vacant local ombudsman entity's position within a reasonable timeframe as determined by the state long-term care ombudsman;
   7. (g) fails to use funds designated for the ombudsman program for ombudsman program services or as directed by the office;

   8. (h) fails to adhere to the terms of the contract for the provision of ombudsman services; or

      1. (i) fails to adhere to any other applicable state or federal law or regulation.

2. (2) The office shall send a notice of intent to de-designate to the local area agency.

   1. (a)(i) The local area agency shall respond in writing within ten business days of receipt of the notice of intent to de-designate.

      1. (ii) The response shall outline the local area agency's plan to reach compliance with that local area agency's responsibilities.
   2. (b) The office may amend or terminate a contract with the local area agency to provide ombudsman program services after ten business days have passed since the local area agency's receipt of the notice of intent to de-designate.

3. (3) As part of the office's formal grievance policy, a local area agency may request reconsideration of the office's decision to de-designate the local area agency.

   1. (a) A local area agency shall submit to the ombudsman a written request for reconsideration of the office's decision to de-designate that local area agency within ten business days of the office's final decision for de-designation.

   2. (b) The request for reconsideration of the office's decision to de-designate a local area agency shall state:

      1. (i) the reason for de-designation;
      2. (ii) the local area agency's attempts to correct the reason for de-designation; and
      3. (iii) the local area agency's explanation for why attempts to correct the reason for de-designation should qualify the local area agency for re-designation.
4. (4) The ombudsman shall make the final determination to designate, de-designate, or to refuse or suspend designation of a local ombudsman entity or representative of the office, regardless of a request for reconsideration.

5. (5) A local area agency may voluntarily withdraw designation as a provider agency.

   1. (a) A local area agency shall provide written notice to the office of any intent to voluntarily withdraw designation at least 90 days in advance of the date of withdrawal.
   2. (b) A local area agency that provides written notice of the intent to voluntarily withdraw designation shall continue performing ombudsman program services until the date of withdrawal.

6. (6)(a) If a local area agency is in the process of appealing de-designation or has withdrawn designation, the local area agency shall surrender any equipment or supplies purchased with funds allocated for ombudsman program services.

   1. (b) The local area agency shall also surrender the balance of any funds advanced to the local area agency for the provision of ombudsman program services.

KEY: ombudsman, LTCO

Date of Last Change: October 9, 2025

Authorizing, and Implemented or Interpreted Law: 26B-2-3, 42 U.S.C. 3058g, 45 CFR 1324(A)