Sec. 10.21.16.07. Temporary Approval

A. If the Department's designated approval unit determines that the program meets all approval requirements, the Secretary shall:

(1) Issue temporary approval according to the provisions of §B of this regulation; and

(2) Forward copies of the approval to the:

(a) Appropriate CSA;

(b) Administration;

(c) ASO;

(d) Medical Assistance Program; and

(e) The program's chief executive officer (CEO) and president of the advisory committee or governing body, whichever applies.

B. Duration of Temporary Approval.

(1) The temporary approval is valid for a period of not more than 6 months unless:

(a) Before the end of 6 months, the program requests an extension due to a delay in beginning operations; and

(b) Upon the recommendation of the Department's designated approval unit, the Secretary grants an extension of not more than 6 months.

(2) If a program is granted an extension of temporary approval under §B(1)(b) of this regulation, and the program fails to begin operation during the effective date of the extension, the program's approval automatically ceases.

C. Denial of Temporary Approval.

(1) The Department may deny temporary approval to an applicant if the Department's designated approval unit determines that the application does not meet all approval requirements.

(2) The Department may deny a license or approval to:

(a) Any corporation or entity that has had a license or approval revoked by the Department or other licensing agency, or has surrendered or defaulted on its license or approval for reasons related to disciplinary action, within the previous 10 years; and

(b) Any corporation or entity that has a corporate officer who has served as a corporate officer for a corporation or entity that has had a license revoked, or has surrendered or defaulted on its license or approval for reasons related to disciplinary action, within the previous 10 years.

(3) The Secretary may, according to the provisions of Regulation .12A of this chapter, issue an initial notice of proposed denial of temporary approval.

(4) If the Secretary takes the action in §C(1) or (2) of this regulation, the Secretary shall advise the applicant of hearing rights, as described in Regulations .12A and .16 of this chapter.

D. Before the expiration of a temporary approval period:

(1) The Department's designated approval unit shall conduct an on-site review to determine approval status outlined in Regulation .08 of this chapter; and

(2) Following completion of the on-site review required under §D(1) of this regulation, the Secretary shall grant or propose to revoke approval according to the provisions of Regulation .08 or .12 of this chapter.