SECTION 5.6404. Notification to the Department and Responsibility for Continued Compliance

(a) No later than 30 days after the effective date of the change, a group shall provide written notice to the department identifying:

(1) any change in the information filed by the group under the Labor Code §407A.051(c) and §5.6403 of this division (relating to Application for Initial Certificate of Approval); and

(2) any change in the group's manner of compliance with the Labor Code §407A.051(c) and §5.6403 of this division.

(b) A group must meet the requirements of the Labor Code §407A.051(c) and §5.6403 of this division as those requirements apply to any change of information identified by a group pursuant to subsection (a) of this section.

(c) A group shall provide written notice to the department no later than 10 days of first becoming aware that any hazardous financial condition exists, or that, in the opinion of its administrator, any hazardous financial condition is likely to occur. For purposes of this subsection only, hazardous financial conditions include the conditions described in the Labor Code §407A.355(a) and (b) and any event, series of events, or negative trend that may affect the group's ability to continue as a viable group.

(d) A group shall acknowledge its responsibilities under this section by executing a statement that it will meet the notification requirements of subsections (a) and (c) of this section and filing it with the department.

(e) A group is required to maintain the qualifications necessary to obtain a certificate of approval issued under the Labor Code Chapter 407A at all times.

Source Note: The provisions of this §5.6404 adopted to be effective February 15, 2009, 34 TexReg 813