SECTION 392.509. Eligibility Criteria

(a) An application shall not be considered for competitive funding unless the applicant meets the following criteria on the application due date and continues to meet them throughout the selection and funding process.

(1) The applicant shall be established as a legal entity under State statutes and regulations.

(2) The applicant shall be in compliance with any Commission agreed order.

(3) The applicant shall be registered to do business in Texas and shall have a Texas address. A post office box address may be used when the application is submitted, but the applicant must be able to conduct business out of a physical location in Texas before funds will be released.

(4) Staff members, including the executive director, of a public or nonprofit entity shall not serve on their employer's governing board.

(5) The applicant shall be in good standing with any State or Federal agency that has a contracting relationship with the applicant. If a State or Federal agency has suspended or terminated an applicant's contract for deficiencies in performance of the contract, that applicant is not eligible to apply through a RFP unless all issues have been satisfactorily resolved as demonstrated by written documentation from the State or Federal agency. Additionally, an applicant is not eligible if it is debarred from participation in any Federal assistance program.

(6) Applicants that have previously been funded by DSHS shall be in compliance with the following requirements:

(A) If the applicant has been suspended or terminated by DSHS at any time in the past, all issues shall be satisfactorily resolved (demonstrated by written documentation from DSHS).

(B) If the applicant owes a refund to DSHS, the applicant shall be on schedule with the terms of the repayment agreement or shall have satisfactorily discharged the financial obligation.

(C) The applicant shall have submitted an annual audit as required by the grant agreement or contract and either corrected all deficiencies or submitted and maintained compliance with a corrective action plan that DSHS has accepted.

(b) DSHS may establish additional application criteria in a RFP or other form of solicitation.

(c) Applicants must continue to meet application criteria after funds are awarded or be subject to sanctions.

(d) Treatment applicants must be appropriately licensed and in good standing on the first effective service day proposed.

(e) DSHS may deny funding to an applicant if any person who has an ownership or controlling interest in the applicant organization, or who is an agent or managing employee of the applicant, has been convicted of a criminal offense related to involvement in any program established under Medicare, Medicaid, or the Title XX block grant.

(f) DSHS may refuse to fund an applicant who cannot demonstrate that the location where services will be provided is in compliance with all applicable local and State zoning, building, health, fire, and safety standards.

Source Note: The provisions of this §392.509 adopted to be effective June 17, 2015, 40 TexReg 3638