SECTION 49.531. Sanction by HHSC

(a) HHSC may take one or more of the following sanctions:

(1) for any contractor, impose a vendor hold in accordance with §49.532 of this division (relating to Vendor Hold);

(2) for any contractor, recoup funds in accordance with §49.533 of this division (relating to Recoupment);

(3) for any contractor, terminate the contract in accordance with §49.534 of this division (relating to Termination of Contract by HHSC); and

(4) for a contractor that has a contract for the HCS Program or TxHmL Program, impose an administrative penalty in accordance with §49.535 of this division (relating to Administrative Penalties in HCS and TxHmL Programs).

(b) For a sanction described in subsection (a)(1) or (3) of this section, HHSC may consider factors in determining the sanction to be taken, including:

(1) the extent and seriousness of the contractor's non-compliance with the contract that is the subject of the sanction;

(2) the contractor's history of previous non-compliance with:

(A) the contract that is the subject of the sanction;

(B) a contract other than the one that is the subject of the sanction;

(C) a contractual agreement with HHSC; and

(D) a contractual agreement with a governmental entity other than HHSC;

(3) previous action taken or sanctions imposed against the contractor by DADS or HHSC; and

(4) the contractor's written response to HHSC's finding that the contractor is not in compliance with the contract.

Source Note: The provisions of this §49.531 adopted to be effective September 1, 2014, 39 TexReg 6637; amended to be effective September 1, 2018, 43 TexReg 5230; amended to be effective April 28, 2020, 45 TexReg 2725