us-tx/regs
34 Tex. Admin. Code § 16.405 — Suspension of Program Participation
(a)
A program participant's account shall be suspended from use any time the participant fails to comply with any program requirement or other applicable law. An education service provider or vendor of educational products or services shall immediately be suspended from participating in the program at any time the provider or vendor fails to meet the eligibility requirements or fails to comply with any program requirement or other applicable law.
(b)
On suspension under subsection (a) of this section, the comptroller or a designated certified educational assistance organization shall notify the participating parent, education service provider, or vendor of educational products or services in writing both by first-class mail and email that the participant's ability to use their account, or provider's or vendor's right to participate in the program, has been suspended and that no purchases or payments may be made on or after the date of suspension. The notification must specify the grounds for the suspension, any corrective action required, and notice that the participant, provider, or vendor has 30 calendar days from the date of the notification to respond and comply with any corrective actions required.
(c)
On the expiration of the 30-calendar-day period under subsection (b) of this section, or earlier if a response has been received and any corrective action completed, based on the severity of the violation, the response and actions taken by the program participant, education service provider, or vendor of educational products or services, and the risks to the integrity of the program, at the comptroller's discretion:
(1) the comptroller may permanently close the participant's account thereby removing the participant from the program or permanently remove the education service provider or vendor of educational products or services from the program if the participant, provider, or vendor has failed to respond or fully comply with the required corrective action by the deadline specified under subsection (b) of this section;
(2) the comptroller or a designated certified educational assistance organization may temporarily reinstate the participant's account, or temporarily reinstate the provider or vendor for 30 calendar days and allow purchases or payments to resume, conditioned on successful performance of additional corrective action; or
(3) the comptroller or a designated certified educational assistance organization may reinstate the participant's account, or reinstate the provider or vendor for participation in the program if the participant, provider, or vendor has fully complied with the required corrective action.
(d)
On the expiration of the 30-calendar-day period under subsection (c)(2) of this section, based on the severity of the violation, the response and actions taken by the program participant, education service provider, or vendor of educational products or services, and the risks to the integrity of the program, and at the comptroller's discretion:
(1) the comptroller may permanently close the participant's account thereby removing the participant from the program or permanently remove the provider or vendor from the program if the participant, provider, or vendor has failed to fully comply with the required corrective action; or
(2) the comptroller or a designated certified educational assistance organization may reinstate the participant's account, or reinstate the provider or vendor for participation in the program if the participant, provider, or vendor has fully complied with the required corrective action.
(e)
On removal under this section, the comptroller shall notify the program participant, education service provider, or vendor of educational products or services and each certified educational assistance organization that facilitates program purchases that the participant, provider, or vendor may no longer participate in the program. If the comptroller has evidence of fraud or any other violation of law by a participant, provider, or vendor, the comptroller shall notify the appropriate local county or district attorney with jurisdiction over the participant, provider, or vendor.
(f)
A decision to permanently close a participant's account under this section thereby removing them from participation in the program is appealable under §16.409 of this subchapter. All other decisions made under this section are final and not subject to appeal.
Source Note: The provisions of this §16.405 adopted to be
effective December 15, 2025, 50 TexReg 8046.
Source: official text