Section 550.109 - Increase in Capacity(a) A license holder must not increase a center's licensed capacity without approval from HHSC.(b) The license holder must submit an application for an increase in capacity in accordance with § 550.102 of this subchapter (relating to General Application Requirements) and the correct fee required in § 550.112 of this subchapter (relating to Licensing Fees) through the online portal.(c) The license holder must: (1) arrange for an inspection of the center by the local fire marshal or the state fire marshal; and(2) submit written evidence of the fire marshal's approval to HHSC that describes the center by name and address by uploading a copy through the online portal.(d) An applicant must send written notice to HHSC indicating that the center is ready for a Life Safety Code inspection by uploading the notice through the online portal. (1) The written notice must be submitted: (A) with the application; or(B) no later than 120 days after HHSC Licensing and Credentialing Unit receives the application.(2) After HHSC receives the written notice for a Life Safety Code inspection and an applicant has satisfied the application submission requirements, HHSC staff conducts an on-site Life Safety Code inspection.(e) If an applicant receives a notice from HHSC that some or all of the information is missing or incomplete, an applicant must submit the requested information no later than 30 days after the date of the notice. If an applicant fails to submit the requested information no later than 30 days after the notice date, HHSC considers the application incomplete and proposes to deny the application. If HHSC denies the application, HHSC does not refund the license fee.(f) The center must meet the building requirements described in Subchapter E of this chapter (relating to Building Requirements). If a center fails to meet the building requirements and fails to implement an approved written plan of correction no later than 120 days after the initial Life Safety Code inspection, HHSC Licensing proposes to deny the application for a license.(g) After a center has met Life Safety Code requirements, HHSC conducts an on-site health inspection.(h) HHSC issues a new license with an increased capacity if HHSC determines that the center is in compliance with this chapter.(i) If an applicant decides not to continue the application process after submitting the application and correct license fee, an applicant must submit to HHSC a written request to withdraw the application. HHSC does not refund the license fee.(j) Before denying an application for an increase in capacity, HHSC Enforcement gives the license holder: (1) notice by personal service or by registered or certified mail of the facts or conduct alleged to warrant the proposed action; and(2) an opportunity to show compliance with all the requirements of the THSC Chapter 248A and this chapter to retain the license.(k) To request an opportunity to show compliance, the license holder must send a written request to HHSC. The request must:(1) be postmarked no later than 10 days after the date of the HHSC notice of proposed action and received by HHSC no later than 10 days after the date of the postmark; and(2) contain documentation that refutes the allegations.(l) The opportunity to show compliance is limited to a review of documentation submitted by the license holder and information HHSC used as the basis for the proposed action. The opportunity to show compliance is not an administrative hearing. HHSC gives the license holder a written affirmation or reversal of the proposed action.(m) If HHSC denies an application for an increase in capacity, HHSC sends the license holder a written notice of the denial and informs the license holder of the right to request an administrative hearing to appeal the denial. The administrative hearing is held in accordance with 1 Texas Administrative Code Chapter 357, Subchapter I (relating to Hearings Under the Administrative Procedure Act) and HHSC hearing rules found in Chapter 110 of this title (relating to Hearings Under the Administrative Procedure Act).26 Tex. Admin. Code § 550.109
The provisions of this §550.109 adopted to be effective September 1, 2014, 39 TexReg 6569; Transferred from Title 40, Chapter 15 by Texas Register, Volume 44, Number 15, April 12, 2019, TexReg 1875, eff. 5/1/2019; Amended by Texas Register, Volume 49, Number 39, September 27, 2024, TexReg 7930, eff. 10/16/2024