The Texas Health and Human Services Commission (HHSC), on behalf of the Department of Aging and Disability Services (DADS), proposes amendments to §15.5, concerning Definitions; and §15.108, concerning Change of Ownership License Application Procedures and Issuance; and the repeal of §15.107, concerning Change of Ownership, in Chapter 15, Licensing Standards for Prescribed Pediatric Extended Care Centers.

BACKGROUND AND PURPOSE

The proposed amendments and repeal revise change of ownership requirements for a prescribed pediatric extended care center (PPECC) license holder. Under the proposed rules, a license holder will not be required to apply for a new license if the ownership structure of the license holder changes but the license holder is the same legal entity, as evidenced by having the same federal tax identification number. Changes in ownership structure must be reported to DADS under other existing rules. The proposed amendments also add definitions for terms related to a change of ownership and ownership interests.

The proposed amendments allow DADS to conduct a desk review instead of an on-site health survey if the applicant for a license resulting from a change of ownership meets certain requirements.

SECTION-BY-SECTION SUMMARY

The proposed amendment to §15.5 adds definitions of "change of ownership," "direct ownership interest," "disclosable interest," "indirect ownership interest," and "license holder." These terms are used in proposed amended §15.108 related to requirements for a change of ownership, including criteria DADS uses to determine if a PPECC will receive a desk review or an on-site health inspection after the facility has a change of ownership. The proposed amendment also removes the term "person with a disclosable interest," because it is unnecessary if the term "disclosable interest" is defined. Additional editorial changes are proposed throughout the section for clarity and consistency.

The proposed repeal of §15.107 removes this rule regarding change of ownership. Change of ownership requirements are addressed in proposed amended §15.108.

The proposed amendment to §15.108 states that DADS conducts an on-site health inspection before issuing a license as a result of a change of ownership, except that DADS will conduct a desk review instead of an on-site health inspection if less than 50 percent of the direct or indirect ownership interest has changed, or every owner with a disclosable interest in the new license holder had a disclosable interest in the former license holder. The proposed amendment clarifies that DADS may also conduct an on-site Life Safety Code inspection before issuing a license as a result of a change of ownership.

FISCAL NOTE

David Cook, Deputy Chief Financial Officer, has determined that, for the first five years the proposed amendments and repeal are in effect, enforcing or administering the amendments and repeal does not have foreseeable implications relating to costs or revenues of state or local governments.

SMALL BUSINESS AND MICRO-BUSINESS IMPACT ANALYSIS

DADS has determined that the proposed amendments and repeal will not have an adverse economic effect on small businesses or micro-businesses, because the proposal does not impose requirements that result in a cost to license holders.

PUBLIC BENEFIT AND COSTS

Mary T. Henderson, DADS Associate Commissioner for Regulatory Services, has determined that, for each year of the first five years the amendments and repeal are in effect, the public benefit expected as a result of enforcing the amendments and repeal is a reduction in paperwork and fewer on-site surveys associated with changes of ownership that are unlikely to affect services provided by a license holder.

Mr. Cook anticipates that there will not be an economic cost to persons who are required to comply with the amendments and repeal. The amendments and repeal will not affect a local economy.

TAKINGS IMPACT ASSESSMENT

DADS has determined that this proposal does not restrict or limit an owner's right to his or her property that would otherwise exist in the absence of government action and, therefore, does not constitute a taking under Texas Government Code, §2007.043.

PUBLIC COMMENT

Questions about the content of this proposal may be directed to Barbara Blankenship at (512) 438-5502 in DADS Regulatory Services. Written comments on the proposal may be submitted to Barbie Blankenship at 701 West 51st Street, Austin, Texas, 78751, Mail Code E-370; or via email to barbara.blankenship@dads.state.tx.us. To be considered, comments must be submitted no later than 30 days after the date of this issue of the Texas Register. If the last day to submit comments falls on a Saturday or a Sunday, comments must be: (1) postmarked or shipped before the last day of the comment period; (2) hand-delivered to DADS before 5:00 p.m. on DADS last state working day of the comment period; or (3) faxed or emailed by midnight on the last day of the comment period. When faxing or emailing comments, please indicate "Comments on Proposed Rule 16R11" in the subject line.

STATUTORY AUTHORITY

The amendment is proposed under Texas Government Code, §531.0055, which provides that the HHSC executive commissioner shall adopt rules for the operation and provision of services by the health and human services agencies, including DADS, and Texas Health and Safety Code, §248A.101, which authorizes the HHSC executive commissioner to adopt rules governing the licensure of prescribed pediatric extended care centers.

The amendment implements Texas Government Code, §531.0055, and Texas Health and Safety Code, §248A.101.