(a) A surety bond may be required for each enrolled location pursuant to the requirements of this section if:(1) a provider or type of provider has been identified by federal or state agencies to have a significant history of, or potential for, fraud, waste, or abuse; or(2) HHSC, in its sole discretion, has determined that a provider, based on the provider's conduct, including falsifying information or any material misrepresentation, will be subject to this requirement.(b) If a surety bond is required, a provider must maintain a current surety bond to continue participation in Medicaid or CHIP.(c) HHSC or its designee will not reimburse a provider for items or services furnished during a period in which the provider does not have a current surety bond, if a surety bond is required.(d) An entity operated or administered by a federal, state, local, or tribal government agency is exempt from the requirements of subsection (a) of this section if, during the preceding five years, the entity has not had any uncollected overpayments associated with Medicaid or CHIP.(e) A surety bond required pursuant to this section must:(1) include a statement that the surety company issuing the bond:(A) is licensed by the Texas Department of Insurance; and(B) maintains a valid Certificate of Authority with the United States Department of Treasury in accordance with 31 U.S.C. §§9304 - 9308 and