| (a) For purposes of this section, a temporary change
of ownership license is a temporary license issued to an applicant
who proposes to become the new operator of a facility that exists
on the date the application is submitted.
(b) A license holder may not transfer its license.
The applicant (new license holder) must obtain a temporary change
of ownership license followed by an initial three-year license in
accordance with this section. When the Texas Health and Human Services
Commission (HHSC) approves the change of ownership by issuing a temporary
change of ownership license to the new license holder, the current
license holder's license becomes invalid as of the effective date
of the change of ownership indicated in the change of ownership application.
Between the effective date of the change of ownership and the issuance
of the temporary change of ownership license, the current license
holder remains responsible under its license; however, the applicant
may operate a facility on behalf of a current license holder during
such period of time.
(c) An applicant must submit to HHSC through the online
portal:
(1) a complete HHSC application for a license in accordance
with HHSC instructions and §553.23 of this subchapter (relating
to Initial Application Procedures and Requirements) or an incomplete
application with a letter explaining the circumstances that prevented
the inclusion of the missing information;
(2) full payment of the fees required in §553.47
of this subchapter (relating to License Fees); and
(3) a signed and notarized Change of Ownership Transfer
Affidavit HHSC Form 1092 from the applicant and the facility's current
license holder of intent to transfer operation of the facility from
the current license holder to the applicant, beginning on the change
of ownership effective date specified on the change of ownership application.
(d) To avoid a facility operating while unlicensed,
an applicant must submit all items required by subsection (c) of this
section at least 30 days before the anticipated date of the change
of ownership, unless the 30-day notice requirement is waived in accordance
with subsection (e) of this section.
(e) HHSC may waive the 30-day notice required by subsection
(d) of this section if HHSC determines that the applicant presents
evidence showing that circumstances prevented the submission of the
items specified in subsection (c) of this section and that not waiving
the notice would create a threat to resident welfare or health and
safety.
(f) Upon HHSC approval of the items specified in subsection
(c) of this section, HHSC issues a temporary change of ownership license
to the applicant if HHSC finds that the applicant, all controlling
persons, and all persons disclosed in the application satisfy the
requirements in §553.17 of this subchapter (relating to Criteria
for Licensing), except for §553.17(c) and (d).
(1) The issuance of a temporary change of ownership
license constitutes HHSC's official written notice to the facility
of the approval of the application for a change of ownership.
(2) The effective date of the temporary change of ownership
license is the date requested in the application and cannot precede
the date the application is received by HHSC through the online portal.
(g) A temporary change of ownership license expires
on the earlier of:
(1) 90 days after its effective date or the last day
of any extension HHSC provides in accordance with subsection (h) of
this section; or
(2) the date HHSC issues a three-year license in accordance
with subsection (k) of this section.
(h) HHSC, in its sole discretion, may extend a temporary
change of ownership license for a term of 90 days at a time based
upon extenuating circumstances.
(i) HHSC staff conduct an on-site health inspection
to verify compliance with the licensure requirements after issuing
a temporary change of ownership license. HHSC may conduct a desk review
instead of an on-site health inspection after issuing a temporary
change of ownership if:
(1) less than 50 percent of the direct or indirect
ownership interest in the former license holder differs from that
of the new license holder; or
(2) every owner with a disclosable interest in the
new license holder has a disclosable interest in the former license
holder.
(j) HHSC, in its sole discretion, may conduct an on-site
Life Safety Code inspection of the facility after issuing a temporary
change of ownership license.
(k) If the applicant, all controlling persons, and
all persons disclosed in the application satisfy the requirements
of §553.17 of this subchapter, except for §553.17(c)(1)(A)
- (C), for a license, and the facility passes the change of ownership
health inspection as described in subsection (i) of this section,
HHSC issues a three-year license within 30 days after HHSC determines
that the applicant and the facility have met the licensure requirements
of this section. The effective date of the three-year license is the
same date as the effective date of the change of ownership and cannot
precede the date the application was received by HHSC through the
online portal.
(l) HHSC may deny an application for a change of ownership
if the applicant, controlling person, or any person disclosed in the
application fails to meet the criteria for a license established in §553.17
of this subchapter.
(m) If HHSC denies an application for a temporary change
of ownership license or a three-year license, HHSC sends the applicant
a written notice of the denial and informs the applicant of the applicant's
right to request an administrative hearing to appeal the denial. The
administrative hearing is held in accordance with HHSC rules at 1
TAC Chapter 357, Subchapter I (relating to Hearings Under the Administrative
Procedure Act).
(n) If a license holder that is not a publicly traded
company adds an owner with a disclosable interest, but the license
holder does not undergo a change of ownership, the license holder
must notify HHSC no later than 30 days after the addition of the owner
by submitting an application through the online portal.
(o) If a license holder changes its name but does not
undergo a change of ownership, the license holder must notify HHSC
and submit documentation evidencing a legal name change by submitting
an application through the online portal. On receipt of the notice
and documentation, HHSC reissues the current license in the license
holder's new name.
|
