| (a) For the purposes of this section, a temporary change
of ownership license is a temporary license issued to an applicant
who proposes to become the license holder of a current individualized
skills and socialization provider 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 as the individualized skills and socialization provider
on behalf of the current license holder during such time period.
(c) The applicant must submit to HHSC through the online
licensure portal:
(1) a complete change of ownership application for
a license in accordance with HHSC instructions and §559.205 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 §559.219
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 individualized
skills and socialization provider's current license holder of intent
to transfer the individualized skills and socialization provider operation
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 an individualized skills and socialization
provider 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 the health and safety of an individual.
(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 §559.205 of this subchapter and §559.215
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 individualized
skills and socialization provider 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 licensure
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 survey 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
survey after issuing a temporary 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.
(j) If the applicant, all controlling persons, and
all persons disclosed in the application satisfy all applicable requirements
of §559.205 and §559.215 of this subchapter for a license,
and the individualized skills and socialization provider passes the
change of ownership survey 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 licensure portal.
(k) 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 through the submission of
an application in the online licensure portal.
(l) 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 licensure portal. On receipt of
the notice and documentation, HHSC reissues the current license in
the license holder's new name.
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