Examinations.

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  • (1) The department may conduct periodic on-site examinations of a provider.
  • (2) In conducting an examination, the department or the department's staff:
    • (a) shall have full and free access to all the provider's records; and
    • (b) may summon and qualify as a witness, under oath, and examine, any director, officer, member, agent, or employee of the provider, and any other person, concerning the condition and affairs of the provider or a facility.
  • (3) Books and records shall be kept for not less than three calendar years in addition to the current calendar year.
  • (4) The provider shall pay the reasonable costs of an examination under this section.
  • (5) The department may conduct an on-site examination in conjunction with an examination performed by a representative of an agency of another state.
  • (6)
    • (a) The department, in lieu of an on-site examination, may accept the examination report of an agency of another state that has regulatory oversight of the provider, or a report prepared by an independent accounting firm.
    • (b) A report accepted under Subsection (6)(a) is considered for all purposes an official report of the department.
  • (7) Upon reasonable cause, the department may conduct an on-site examination of an unlicensed person to determine whether a violation of this chapter has occurred.




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