HHSC may deny an application for a license or refuse to renew a license for a facility described in §560.1(2)(A) - (E) of this chapter (relating to Definitions) if: (1) any of the following persons are listed in a record maintained by a health and human services agency under Texas Government Code §526.0454: (A) the applicant or facility license holder; (B) a person listed on an initial or renewal application; or (C) a controlling person of the applicant or facility license holder; and (2) the health and human services agency's action that resulted in the person being listed in a record maintained under Texas Government Code §526.0454 is based on: (A) an act or omission that resulted in physical or mental harm to an individual in the care of the person; (B) a threat to the health, safety, or well-being of an individual in the care of the person; (C) the physical, mental, or financial exploitation of an individual in the care of the person; or (D) a determination by the health and human services agency that the person has committed an act or omission that renders the person unqualified or unfit to fulfill the obligations of the license, listing, or registration.