26 Tex. Admin. Code § 550.108 - Change of Ownership License Application Procedures and Issuance and Notice of Changes
(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 center that
exists on the date the applicant submits a change of ownership license
application.
(b) A center license
is not assignable or transferable. The applicant (prospective new license
holder) must obtain a temporary change of ownership license followed by an
initial three-year license in accordance with this section. When HHSC approves
the change of ownership by issuing a temporary change of ownership license to
the applicant (prospective new license holder), the current license holder's
license becomes invalid as of the effective date of the change of ownership
indicated in the application. Between the effective date of the change of
ownership and the issuance of the temporary change of ownership license, the
current license holder remains responsible under its license; however, the
applicant may operate a center on behalf of the current license holder during
such period of time.
(c) An
applicant must submit to HHSC through the online portal:
(1) a complete application for a license in
accordance with HHSC instructions and §
550.101 of this subchapter
(relating to Criteria and Eligibility for a License) 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
§
550.112 of this subchapter
(relating to Licensing Fees);
(3) a
letter of credit for $250,000 from a bank that is insured by the Federal
Deposit Insurance Corporation, or other documentation acceptable to HHSC, to
demonstrate the applicant's financial viability; and
(4) a signed and notarized Change of
Ownership Transfer Affidavit HHSC Form 1092 from the applicant and the center's
current license holder of intent to transfer operation of the center from the
current license holder to the applicant, beginning on the change of ownership
effective date specified on the change of ownership application.
(d) HHSC Licensing may propose to
deny issuance of a change of ownership license if the applicant, a controlling
person, or any person disclosed in the application fails to meet the criteria
for a license established in §
550.101 of this subchapter or for
any reason specified in §
550.115 of this subchapter
(relating to Criteria for Denial of a License).
(e) To avoid a center operating without a
license, an applicant must submit all items in subsection (c) of this section
in accordance with HHSC instructions at least 30 days before the anticipated
date of the change of ownership specified on the change of ownership
application, unless the 30-day notice requirement is waived in accordance with
subsection (f) of this section.
(f)
HHSC may waive the 30-day notice required by subsection (e) of this section if:
(1) the applicant presents evidence to HHSC
demonstrating that an eviction of the center or a foreclosure of the property
from which the center operates is imminent and that circumstances prevented the
timely submission of the items specified in subsection (c) of this section;
or
(2) HHSC, in its sole
discretion, determines that circumstances are present that threaten a minor's
health, safety, or welfare and necessitate waiver of timely submission of the
items specified in subsection (c) of this section.
(g) 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 the requirements
in §§
550.101(a) and
(f) of this subchapter, 550.104 of this
subchapter (relating to Applicant Disclosure Requirements), and 550.115 of this
subchapter.
(1) The issuance of a temporary
change of ownership license constitutes official written notice by HHSC to the
center 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.
(h) 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 (i) of
this section; or
(2) the date HHSC
issues a three-year license in accordance with subsection (l) of this
section.
(i) HHSC, in its
sole discretion, may extend the term of a temporary change of ownership license
by 90 days based upon extenuating circumstances.
(j) 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 in 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.
(k) HHSC, in its
sole discretion, may conduct an on-site Life Safety Code inspection after
issuing a temporary change of ownership license.
(l) If an applicant and all other persons
disclosed in the application satisfy the requirements of §§550.101(a)
and (f), 550.104, and 550.115 of this subchapter for a license, and the center
passes the change of ownership health inspection as described in subsection (j)
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 for a license was
received through the online portal.
(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.
(n) 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 by submitting an application
through the online portal.
Notes
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