The Texas Health and Human Services Commission (HHSC), on behalf of the Department of Aging and Disability Services (DADS), proposes amendments to §92.2, concerning Definitions; and §92.16, concerning Change of Ownership, in Chapter 92, Licensing Standards for Assisted Living Facilities.

BACKGROUND AND PURPOSE

The purpose of the proposal is to revise the definitions and rules regarding a change of ownership to simplify the process for determining when an assisted living facility (ALF) is required to obtain a new license as a result of a change of ownership.

SECTION-BY-SECTION SUMMARY

The proposed amendment to §92.2 adds new definitions for "change of ownership," "direct ownership interest," "disclosable interest," "indirect ownership interest," and "license holder." The proposed amendment also removes the term "person with a disclosable interest," because it is unnecessary if the term "disclosable interest" is defined.

The proposed amendment to §92.16 adds that DADS conducts an on-site health inspection before issuing a license as a result of a change of ownership, except that DADS may conduct a desk review instead of an on-site health inspection if DADS determines that the facility was required to obtain a new tax identification number and: 1) less than 50 percent of the direct or indirect ownership interest in the former license holder changed when compared to the new license holder; or 2) every owner with a disclosable interest in the new license holder had a disclosable interest in the former license holder. The proposed amendment also clarifies that DADS may conduct an on-site Life Safety Code inspection before issuing a license as a result of a change of ownership. The proposed amendment requires a license holder that does not undergo a change of ownership but adds an owner with a disclosable interest to notify DADS of that change no later than 30 days after the addition of the owner. The proposed amendment also includes minor editorial changes for clarity and consistency.

FISCAL NOTE

David Cook, Deputy Chief Financial Officer, has determined that, for the first five years the proposed amendments are in effect, enforcing or administering the amendments does not have foreseeable implications relating to costs or revenues of state or local governments.

SMALL BUSINESS AND MICRO-BUSINESS IMPACT ANALYSIS

DADS has determined that the proposed amendments will not have an adverse economic effect on small businesses or micro-businesses because the proposed amendments do not impose requirements that result in a cost to providers.

PUBLIC BENEFIT AND COSTS

Mary T. Henderson, DADS Associate Commissioner for Regulatory Services, has determined that, for each year of the first five years the proposed amendments are in effect, the public benefit expected as a result of enforcing the amendments is a reduction in paperwork and fewer on-site surveys associated with changes of ownership that are unlikely to affect services provided by a license holder.

Mr. Cook anticipates that there will not be an economic cost to persons who are required to comply with the proposed amendments. The proposed amendments will not affect a local economy.

TAKINGS IMPACT ASSESSMENT

DADS has determined that this proposal does not restrict or limit an owner's right to his or her property that would otherwise exist in the absence of government action and, therefore, does not constitute a taking under Texas Government Code, §2007.043.

PUBLIC COMMENT

Questions about the content of this proposal may be directed to Barbara Blankenship at (512) 438-5502 in DADS Regulatory Services Division. Written comments on the proposal may be submitted to Barbie Blankenship at 701 West 51st Street, Austin, Texas, 78751, Mail Code E-370; or via email to barbara.blankenship@dads.state.tx.us. The last day to submit comments falls on a Sunday; therefore, comments must be: (1) postmarked or shipped before the last day of the comment period; (2) hand-delivered to DADS before 5:00 p.m. on DADS last state working day of the comment period; or (3) faxed or emailed by midnight on the last day of the comment period. When faxing or emailing comments, please indicate "Comments on Proposed Rule 16R11" in the subject line.

STATUTORY AUTHORITY

The amendment is proposed under Texas Government Code, §531.0055, which provides that the HHSC executive commissioner shall adopt rules for the operation and provision of services by the health and human services agencies, including DADS; and Texas Health and Safety Code, §247.025, which authorizes the executive commissioner to adopt rules to regulate assisted living facilities.

The amendment implements Texas Government Code, §531.0055 and Texas Health and Safety Code, §247.025.