Code of Maryland Regulations
Title 10 - MARYLAND DEPARTMENT OF HEALTH
Part 1
Subtitle 07 - HOSPITALS
Chapter 10.07.05 - Residential Service Agencies
Section 10.07.05.05 - Changes in an Agency That Affect the Operating License

Universal Citation: MD Code Reg 10.07.05.05

Current through Register Vol. 51, No. 19, September 20, 2024

A. Change of Services or Name.

(1) During the licensure period, a licensee may not:
(a) Provide services for which it has not been approved to provide; or

(b) Change the name under which the program is doing business without the Department's approval.

(2) When the licensee wants to provide additional services which require a license under this chapter, before offering the services, the licensee shall submit to the Department:
(a) A new application and written request for a new license citing the additional services the agency wants to provide;

(b) Policies and procedures pertaining to the additional services the agency wants to provide; and

(c) An application fee as required by Health-General Article, § 19-4 A-03(c), Annotated Code of Maryland.

(3) When there is a change in name or address of the licensee, but no change of ownership, an amended license is required and the licensee shall pay $50 for the issuance of an amended license.

(4) Sale or Transfer of an Agency.
(a) If a sale or transfer of an agency causes a change in the person or persons who control or operate the agency, the agency is considered a new agency and the licensee shall apply for a new license and conform to all regulations applicable at the time of the transfer of operations.

(b) The transfer of any stock which results in a change of the person or persons who control the agency or the transfer of any stock in excess of 25 percent of the outstanding stock constitutes a sale.

B. Voluntary Closure or Change of Residential Service Agency Ownership.

(1) A licensee shall notify the Department in writing at least 45 days in advance of any intention to:
(a) Voluntarily close;

(b) Change ownership; or

(c) Sell its agency.

(2) The licensee shall include the following information in the notice to the Department:
(a) The method for informing clients or client representatives, if applicable, of its intent to close, change ownership, or sell its agency; and

(b) The actions the licensee will take to assist clients in securing comparable services and assistance, if necessary.

(3) A licensee shall notify clients or client representatives, if applicable, of any proposed changes set forth in §B(1) of this regulation, in writing, at least 45 days before the effective date of the proposed change.

(4) Whenever ownership of an agency is transferred from the person or organization named on the license to another person or organization, the future owner shall apply for a new license. The future owner shall file an application for a license at least 45 days before the transfer.

(5) The Department shall issue a new license to a new owner who meets the requirements for licensure under this chapter. The former licensee shall return its license to the Department by certified mail.

(6) A licensee named in the original license remains responsible for the operation of the agency until a new license is issued to the new owner. The current licensee remains responsible for correction of all outstanding deficiencies and impending sanctions until a new license is issued to the new owner. After a new license is issued, the new owner shall become responsible for correction of all outstanding deficiencies and impending sanctions.

(7) In addition to the notice to the Department required by §B(1) and (2) of this regulation, after an agency closes, the licensee shall:
(a) Notify the Department of the date of closure; and

(b) Return all licenses, past and present, to the Department by certified mail.

C. Changes to Licensure Information. A licensee shall immediately notify the Department of any change in the information the licensee had submitted with the most recent application.

D. License - Sale, Assignment, or Transfer. The license is valid in the name of the licensee to whom it is issued, and is not subject to sale, assignment, or other transfer.

E. If an agency fails to comply with §§A"D of this regulation, the Department may impose a fine of up to $500 for each violation..

F. A license is void if the agency ceases to operate.

Disclaimer: These regulations may not be the most recent version. Maryland may have more current or accurate information. We make no warranties or guarantees about the accuracy, completeness, or adequacy of the information contained on this site or the information linked to on the state site. Please check official sources.
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