(a) A license holder may not transfer its license.
If there is a change of ownership, the license holder's license becomes
invalid on the date of the change of ownership. The new owner must
obtain a change of ownership license in accordance with subsection
(b) of this section. The license holder and new license applicant
must notify DADS before a change of ownership occurs.
(b) The applicant must submit to DADS:
(1) a complete application for a change of ownership
license under §19.201 of this subchapter (relating to Criteria
for Licensing) or an incomplete application with a letter explaining
the circumstances that prevented the inclusion of the missing information;
(2) the application fee, in accordance with §19.216
of this subchapter (relating to License Fees); and
(3) signed, written notice from the facility's existing
license holder of his intent to transfer operation of the facility
to the applicant beginning on a date specified by the applicant.
(c) To avoid a facility operating while unlicensed,
an applicant must submit all items in subsection (b) of this section
at least 30 days before the anticipated date of the change of ownership.
DADS considers an application as submitted timely if the application
is postmarked at least 30 days before the anticipated date of the
change of ownership and received in DADS Licensing and Credentialing
Section, Regulatory Services Division, within 15 days after the date
of the postmark.
(d) The 30-day notification from the applicant or the
30-day notification from the existing license holder or both may be
waived if DADS determines that the applicant presented evidence showing
that circumstances prevented the submission of the 30-day notice and
if DADS determines that not waiving the 30-day notification would
create a threat to resident welfare or health and safety. If the applicant
submits a timely and sufficient application for a change of ownership
license and meets all requirements for a license, DADS issues a change
of ownership license effective on the date requested by the applicant.
(e) A change of ownership license is a 90-day temporary
license issued to an applicant who proposes to become the new operator
of a nursing facility that exists on the date the application is submitted.
Upon receipt of a complete application, fee, and signed, written notice
from the facility's existing license holder of the intent to transfer
the operation of the facility to the applicant beginning on a date
specified by the applicant, DADS issues a change of ownership license
to the applicant if DADS finds that the applicant and any other persons
listed in §19.201(e) of this subchapter meet the requirements
in §19.201(d)(1) and (f) of this subchapter.
(1) All applications must be made on forms prescribed
by and available from DADS. Each application must be completed in
accordance with DADS instructions, signed, and notarized, and must
contain all forms required by DADS.
(2) DADS approves or denies an application for a change
of ownership license not later than the 31st day after the date of
receipt of the complete application, fee, and signed, written notice
from the facility's existing license holder of his intent to transfer
the operation of the facility to the applicant beginning on a date
specified by the applicant. The effective date of the license is the
later of the date requested in the application or the 31st day after
the date DADS receives the application, fee, and signed, written notice
from the existing license holder, unless waived in accordance with
subsection (d) of this section. The effective date of the change of
ownership license cannot precede the date the application is received
in DADS Licensing and Credentialing Section, Regulatory Services Division.
(3) If the applicant meets the requirements of §19.201
of this subchapter and passes an initial inspection, desk review,
or a subsequent inspection before the change of ownership license
expires, a regular three-year license is issued. The effective date
of the regular three-year license is the same date as the effective
date of the change of ownership and cannot precede the date the application
is received by DADS Licensing and Credentialing Section, Regulatory
Services Division.
(4) When an applicant has not previously held a license
in Texas, a probationary license is issued following the change of
ownership license. The effective date of the probationary one-year
license is the same date as the change of ownership license and cannot
precede the date the application is received in DADS Licensing and
Credentialing Section, Regulatory Services Division.
(5) A change of ownership license expires on the 90th
day after its effective date.
(6) DADS conducts an on-site health inspection to verify
compliance with the licensure requirements after issuing a change
of ownership license. DADS may conduct a desk review instead of an
on-site health inspection after issuing a change of ownership license
if:
(A) 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
(B) every owner with a disclosable interest in the
new license holder had a disclosable interest in the former license
holder.
(7) DADS, in its sole discretion, may conduct an on-site
Life Safety Code inspection after issuing a change of ownership license.
(f) A license holder may be eligible to acquire, on
an expedited basis, a license to operate another existing nursing
facility. A license holder that appears on the expedited change of
ownership list may be granted expedited approval in obtaining a change
of ownership license to operate another existing nursing facility
in Texas.
(1) DADS maintains and keeps current a list of nursing
facility license holders that operate an institution in Texas and
that have met the criteria to qualify for an expedited change of ownership
according to the information available to DADS.
(2) In order to establish and maintain the expedited
change of ownership list, DADS uses the criteria found in §19.2322(e)
of this chapter (relating to Medicaid Bed Allocation Requirements).
A license holder meeting these criteria appears on the list and is
eligible to be issued, on an expedited basis, a change of ownership
license to operate another existing institution in Texas.
(3) A license holder appearing on the list must submit
an affidavit that demonstrates the license holder continues to meet
the criteria established for being listed on the expedited change
of ownership list, and continues to meet the requirements in §19.201(d)(1)
and (f) of this subchapter.
(4) DADS processes a change of ownership license application
on an expedited basis for a license holder on the list if DADS finds
that the license holder and any other persons listed in §19.201(e)
of this subchapter meet the requirements in §19.201(d)(1) and
(f) of this subchapter.
(5) If the license holder requesting a change of ownership
license on an expedited basis complies with subsections (b) - (e)
of this section, DADS approves or denies the application for a change
of ownership license not later than the 15th day after the date of
receipt of the complete application, fee, and signed, written notice
from the facility's existing license holder of the intent to transfer
the operation of the facility to the applicant beginning on a date
requested in the application. The effective date of the license is
the later of the date requested in the application or the 31st day
after the date DADS receives the application fee, and signed, written
notice from the existing license holder, unless waived in accordance
with subsection (d) of this section. The effective date of the change
of ownership license cannot precede the date the application is received
in DADS Licensing and Credentialing Section, Regulatory Services Division.
(6) An applicant for a change of ownership license
on an expedited basis must meet all applicable requirements that an
applicant for renewal of a license must meet. Any requirement relating
to inspections or to an accreditation review applies only to institutions
operated by the license holder at the time the application is made
for the change of ownership license.
(g) If a license holder changes its name, but does
not undergo a change of ownership, the license holder must notify
DADS and submit documentation evidencing a legal name change. On receipt
of the notice and documentation, DADS re-issues the current license
in the license holder's new name.
(h) 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 no later than 30 days after the
addition of the owner.
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Source Note: The provisions of this §554.210 adopted to be effective December 1, 2008, 33 TexReg 9713; amended to be effective September 1, 2009, 34 TexReg 5138; amended to be effective December 2, 2012, 37 TexReg 9525; amended to be effective October 11, 2017, 42 TexReg 5498; transferred effective January 15, 2021, as published in the Texas Register December 11, 2020, 45 TexReg 8871 |