26 Tex. Admin. Code § 553.35 - Change of Ownership 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 facility 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 current license holder remains responsible
under its license; however, the applicant may operate a facility on behalf of a
current license holder during such period of time.
(c) An applicant must submit to HHSC through
the online portal:
(1) a complete HHSC
application for a license in accordance with HHSC instructions and §
553.23 of this subchapter
(relating to Initial Application Procedures and Requirements) or an incomplete
application with a letter explaining the circumstances that prevented the
inclusion of the missing information;
(2) full payment of the fees required in
§
553.47 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 facility's current license holder of intent to
transfer operation of the facility 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 a facility operating while
unlicensed, an applicant must submit all items required by subsection (c) of
this section at least 30 days before the anticipated date of the 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 by subsection (d) of this section if
HHSC determines that the applicant presents evidence showing that circumstances
prevented the submission of the items specified in subsection (c) of this
section and that not waiving the notice would create a threat to resident
welfare or health and safety.
(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 the requirements in §
553.17 of this subchapter
(relating to Criteria for Licensing), except for §553.17(c) and (d).
(1) The issuance of a temporary change of
ownership license constitutes HHSC's official written notice to the facility 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.
(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 staff conduct 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
if :
(1) less than 50 percent of the direct or
indirect ownership interest in the former license holder differs from that of
the new license holder; or
(2)
every owner with a disclosable interest in the new license holder has a
disclosable interest in the former license holder.
(j) HHSC, in its sole discretion, may conduct
an on-site Life Safety Code inspection of the facility after issuing a
temporary change of ownership license.
(k) If the applicant, all controlling
persons, and all persons disclosed in the application satisfy the requirements
of §
553.17 of this subchapter, except
for §553.17(c)(1)(A) - (C), for a license, and the facility passes the
change of ownership health inspection as described in subsection (i) of this
section, HHSC issues a three-year license within 30 days after HHSC determines
that the applicant and the facility have met the licensure requirements of this
section. 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 portal.
(l) HHSC may deny an application for a change
of ownership if the applicant, controlling person, or any person disclosed in
the application fails to meet the criteria for a license established in §
553.17 of this
subchapter.
(m) If HHSC denies an
application for a temporary change of ownership license or a three-year
license, HHSC 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 HHSC
rules at 1 TAC Chapter 357, Subchapter I (relating to Hearings Under the
Administrative Procedure Act).
(n)
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 HHSC no later than 30 days after the
addition of the owner by submitting an application through the online
portal.
(o) 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.
Notes
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