Texas HHSC / SOAH Childcare License Defense

The situation

Rosa, 44, owns Estrella Learning Center LLC, a licensed childcare center in San Antonio with a licensed capacity of 35 children (ages 0–5). She employs 6 teachers. In March 2026 a HHSC-CCR inspector conducted a routine inspection and noted that one staff member's background check clearance from the Centralized Background Check Unit (CBCU) had expired three months earlier, the staff member had submitted the renewal application but the CBCU had not yet processed it.

In April 2026 Rosa received HHSC CLASS Form 2994: Notice of Recommendation for Administrative Penalty, $500, Deficiency: Staff Background Check Compliance (26 TAC §745.8563).

Rosa has 30 days from receipt to file a written due process hearing request with the HHSC Child Care Licensing Legal Enforcement Department. Her deadline is May 2026.

(a) The 2025 procedural change matters. The August 2025 HHSC amendments changed the administrative review process, Rosa must use the new Form 2940 for any administrative review request, and if she wants both an administrative review AND a SOAH due process hearing, she needs to understand how those two parallel tracks interact. The old guidance (from before August 2025) no longer accurately describes the process.

(b) A pending renewal is a substantive defense. Rosa's staff member submitted the CBCU renewal application before the expiration date. The deficiency is a processing delay by the CBCU, not a failure by Rosa's center to initiate compliance. Texas regulations distinguish between an operator who failed to initiate a background check and an operator who initiated a background check but is awaiting CBCU processing. Rosa can document the submission date vs. the expiration date to establish this distinction.

(c) SOAH is genuinely independent. Rosa can get an independent ALJ, not an HHSC employee, to hear her case. The SOAH ALJ applies the facts to the regulation without institutional loyalty to HHSC-CCR. A well-documented pending renewal defense has a strong basis.

(d) Bertolino LLP quoted Rosa $3,500 for "SOAH due process hearing request preparation, pre-hearing conference, and full hearing representation." The SOAH hearing request + CBCU pending renewal defense + evidence documentation is largely self-executable with the right TX-specific structure.

Who receives this

Texas licensed childcare facilities (childcare centers, licensed daycare homes, licensed before- and after-school programs) receiving HHSC CLASS Form 2994 Notice of Recommendation for Administrative Penalty. Primary: TX childcare operators with first-time or documentation-related deficiencies, background check processing delays, ratio transition moments, supervision documentation gaps, who face the 30-day SOAH due process hearing deadline.

Why the agency will not advise you

HHSC-CCR cannot advise operators on contesting its own enforcement actions. SOAH provides a generic self-rep guide (not childcare-specific). Bertolino LLP is the primary TX incumbent ($3,000–$10,000). The August 2025 procedural change (new Form 2940, new timelines) created a documentation gap: most existing guides are outdated.

Key facts, with sources

• Texas HHSC Child Care Regulation (CCR) issues administrative penalties for deficiencies found during inspections of licensed childcare facilities. When HHSC recommends an administrative penalty, it issues CLASS Form 2994 (Notice of Recommendation for Administrative Penalty). The operator must receive a written request for a SOAH due process hearing by the HHSC Child Care Licensing Legal Enforcement Department within 30 days of the date the operator received the Form 2994. The due process hearing is conducted before the State Office of Administrative Hearings (SOAH), which is a separate, independent Texas state agency with independent ALJs. SOAH hearings are similar to court trials: evidence, witnesses, and legal argument. The operator may request a SOAH due process hearing even if the administrative penalty has already been paid. Source: 7500, Administrative Penalties — Texas HHS Child Care Regulation Handbook · HHSC Adopts Amendments to Administrative Reviews and Due Process Hearings — Texas HHS · FAQ: Defending Your Child Care Administrator License — Bertolino LLP
• Texas HHSC adopted amendments to 26 TAC Chapter 745 (Administrative Reviews and Due Process Hearings), effective August 14, 2025, changing timeframes for administrative reviews, records requests, and the due process hearing request process. The amendments require use of HHSC Form 2940 for administrative review requests and establish new 15-calendar-day records request windows. From August 14 to October 13, 2025, HHSC granted a one-time exception to the records request requirement to help operators understand the new system. This procedural change means defense guidance from before August 2025 may not reflect the current process. Source: HHSC Adopts Amendments to Administrative Reviews and Due Process Hearings — Texas HHS · title 26. health and human services — Texas Register August 2025

When to bring in a professional

Self-serve responses fit routine cases: clear facts, amounts a business can absorb, and a deadline still ahead of you. Bring in a licensed professional when the amount at stake is large relative to their fee, the facts are genuinely disputed, criminal exposure is possible, or the deadline has already passed. A short paid consultation to sanity-check your plan is often worth it even when you handle the filing yourself.

All sources for this guide

1. 7500, Administrative Penalties — Texas HHS Child Care Regulation Handbook
2. HHSC Adopts Amendments to Administrative Reviews and Due Process Hearings — Texas HHS
3. FAQ: Defending Your Child Care Administrator License — Bertolino LLP
4. title 26. health and human services — Texas Register August 2025