The Texas Health and Human Services Commission (HHSC) adopts amended §15.5, concerning Definitions; amended §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. The amendment of §15.5 is adopted with changes to the proposed text as published in the April 7, 2017, issue of the Texas Register (42 TexReg 1846) and will be published. The amendment to §15.108 and the repeal of §15.107 are adopted without changes and will not be republished.

BACKGROUND AND JUSTIFICATION

The adopted rules revise change of ownership requirements for a prescribed pediatric extended care center (PPECC) license holder. Under the adopted rules, a change of ownership occurs when the federal taxpayer identification number of a license holder changes. When this occurs, the license holder will 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, the license holder will not be required to apply for a new license. Changes in ownership structure must be reported to HHSC under other existing rules. The adopted rules also add definitions for terms related to a change of ownership and ownership interests.

The adopted rules allow HHSC 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.

A change was made in §15.5, concerning Definitions, to the definition of "change of ownership" to clarify that any event that results in a change to the federal taxpayer identification number of the license holder of a PPECC is considered a change of ownership.

COMMENTS

The 30 day comment period ended May 7, 2017.

During this period, HHSC did not receive any comments regarding adoption of the amendments and repeal.

STATUTORY AUTHORITY

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