SECTION 13.581. Limitation, Suspension, or Cancellation of Certificate of Approval in Response to TDLR Action

(a) Notice of TDLR action against approved PEO's license. The commissioner will limit, suspend, or cancel an approved PEO's certificate of approval in response to an action by TDLR against the approved PEO's license.

(b) Notice of TDLR's contemplated action. An approved PEO must notify the commissioner through TDI's licensing section within 10 business days of first receiving notice that TDLR is contemplating taking action against its license. The approved PEO's notice to the commissioner must include a copy of TDLR's notice.

(c) Limitation or suspension of certificate of approval. If the commissioner receives notice that TDLR is contemplating taking action against an approved PEO's license, at the commissioner's discretion the approved PEO's certificate of approval may be limited or suspended. While an approved PEO's certificate of approval is suspended, the approved PEO cannot contract with a new client to allow enrollment of new plan participants. When the commissioner receives satisfactory notice that all outstanding issues between TDLR and the approved PEO are resolved to TDLR's satisfaction, TDI will remove the limitation or suspension of the approved PEO's certificate of approval.

(d) Notice of TDLR action terminating license. If TDLR revokes an approved PEO's license, the approved PEO must terminate its health benefit plan in compliance with §13.580 of this title (relating to Withdrawal from Market). An approved PEO must notify the commissioner through TDI's licensing section within 10 business days of receiving notice that TDLR has revoked its license. The approved PEO's notice to the commissioner must include:

(1) a copy of TDLR's notice of termination; and

(2) confirmation that the approved PEO will file its withdrawal plan within 30 days.

(e) Cancellation. When an approved PEO has fulfilled all requirements of its withdrawal plan, the commissioner will cancel the approved PEO's certificate of approval.

(f) Reapplication. If TDLR later reinstates the PEO's license or grants the PEO a new license in good standing, the PEO may reapply to TDI for a certificate of approval in order to sponsor another plan under this subchapter.

Source Note: The provisions of this §13.581 adopted to be effective May 17, 2016, 41 TexReg 3479