| (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 existing license
holder remains responsible under its license; however, the applicant
may operate a facility on behalf of the current license holder during
such period of time.
(c) The applicant must submit to HHSC through the online
portal:
(1) a complete application for a license in accordance
with HHSC instructions and §559.11 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 §559.21
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 without a license,
an applicant must submit all items required by subsection (c) of this
section at least 30 days before the anticipated date of a 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 in subsection
(d) of this section if HHSC determines that the applicant presents
evidence showing that circumstances prevented the submission of the
items in subsection (c) of this section at least 30 days before the
anticipated change of ownership and that not waiving the 30-day requirement
would create a threat to client 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 all
applicable requirements in §559.11 of this subchapter, §559.13
of this subchapter (relating to Applicant Disclosure Requirements),
and §559.19 of this subchapter (relating to Criteria for Denying
a License or Renewal of a License).
(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 conducts 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 license 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.
(j) HHSC, in its sole discretion, may conduct an on-site
Life Safety Code inspection after issuing a temporary change of ownership
license.
(k) If the applicant, all controlling persons, and
all persons disclosed in the application satisfy all applicable requirements
of §559.11, §559.13, and §559.19 of this subchapter
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. 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) 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 HHSC of the addition no later than
30 days after the addition of the owner.
(m) 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.
|
| Source Note: The provisions of this §559.16 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; transferred effective January 15, 2021, as published in the Texas Register December 18, 2020, 45 TexReg 9249; amended to be effective October 11, 2022, 47 TexReg 6590 |
