|(a) A license holder may not transfer its license.
(b) At least 30 days before the anticipated date of
a change of ownership, the prospective license holder must notify
DADS of the change of ownership by submitting an application for an
initial license based on a change of ownership under §92.14 of
this subchapter (relating to Initial Application Procedures and Requirements)
and the fee required in §92.4 of this chapter (relating to License
(c) To avoid a facility operating while unlicensed,
an applicant must submit an application for an initial license based
on a change of ownership at least 30 days before the anticipated date
of the change of ownership. The effective date of the change of ownership
cannot precede the date the application is received by DADS Licensing
and Credentialing Section, Regulatory Services Division.
(d) DADS may assess an administrative penalty in accordance
with Subchapter H, Division 9 of this chapter (relating to Administrative
Penalties) against a person who fails to notify DADS before the effective
date of the change of ownership.
(e) Pending DADS review of the application for an initial
license based on a change of ownership, the current license holder
must continue to meet all requirements for operation of the facility.
(f) DADS conducts an on-site health inspection to verify
compliance with the licensure requirements before issuing a license
based on a change of ownership. 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
(g) DADS, in its sole discretion, may conduct an on-site
Life Safety Code inspection of the facility before issuing a license
based on a change of ownership.
(h) DADS issues the license within 30 days after DADS
determines that the applicant and the facility have met the licensure
requirements of this section. The issuance of a license constitutes
DADS official written notice to the facility of the approval of the
application for a change of ownership.
(i) DADS may deny an application for a change of ownership
if the applicant, controlling person, or any person required to submit
background and qualification information fails to meet the criteria
for a license established in §92.11 of this subchapter (relating
to Criteria for Licensing).
(j) If DADS denies an application for an initial license
based on a change of ownership, DADS 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 Texas Health
and Human Services Commission rules at 1 TAC Chapter 357, Subchapter
I (relating to Hearings Under the Administrative Procedure Act).
(k) 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 DADS no later than 30 days after the addition of the owner.
|Source Note: The provisions of this §553.16 adopted to be effective January 15, 2009, 34 TexReg 240; amended to be effective October 11, 2017, 42 TexReg 5510; transferred effective May 1, 2019, as published in the Texas Register April 12, 2019, 44 TexReg 1886