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TITLE 40SOCIAL SERVICES AND ASSISTANCE
PART 1DEPARTMENT OF AGING AND DISABILITY SERVICES
CHAPTER 98DAY ACTIVITY AND HEALTH SERVICES REQUIREMENTS
SUBCHAPTER BAPPLICATION PROCEDURES
RULE §98.16Change of Ownership and Notice of Changes

(a) A license holder may not transfer its license.

(b) To avoid a gap in the license because of a change in ownership of the facility, a prospective license holder must submit to DADS a complete application for a license under §98.11 of this title (relating to Criteria for Licensing) at least 30 days before the anticipated date of a change of ownership. The applicant must meet all requirements for a license. If the applicant has filed a timely and sufficient application for a license and otherwise meets all requirements for a license, DADS will issue the applicant a license effective on the date of the change of ownership. DADS considers an applicant has filed a timely and sufficient application for a license if the applicant:

  (1) submits a complete application to DADS, and DADS receives that complete application at least 30 days before the anticipated date of change of ownership;

  (2) submits an incomplete application to DADS with a letter explaining the circumstances that prevented the inclusion of the missing information, and DADS receives the incomplete application and letter at least 30 days before the anticipated date of change of ownership; or

  (3) submits an application to DADS, and DADS receives the application by the date of change of ownership, and the applicant proves to DADS satisfaction that the health and safety of the facility clients required an emergency change of ownership.

(c) If the application is postmarked by the filing deadline, the application will be considered to be timely filed if received in DADS Licensing and Credentialing Section, Regulatory Services Division, within 15 days after the postmark.

(d) DADS conducts an on-site health inspection to verify compliance with the licensure requirements before issuing a license as a result of a change of ownership. DADS may conduct a desk review instead of an on-site health inspection before issuing a license as a result of a change of ownership if:

  (1) less than 50 percent of the direct or indirect ownership interest of the former license holder changed, when compared to the new license holder; or

  (2) every person with a disclosable interest in the new license holder had a disclosable interest in the former license holder.

(e) DADS, in its sole discretion, may conduct an on-site Life Safety Code inspection before issuing a license as a result of a change of ownership.

(f) If a license holder adds an owner with a disclosable interest, but the license holder does not undergo a change of ownership, the license holder must notify DADS of the addition no later than 30 days after the addition of the owner.


Source Note: The provisions of this §98.16 adopted to be effective January 1, 1995, 19 TexReg 9531; amended to be effective May 1, 1999, 24 TexReg 3100; amended to be effective April 1, 2007, 32 TexReg 1749; amended to be effective October 11, 2017, 42 TexReg 5520

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