New York Codes, Rules and Regulations
Title 10 - DEPARTMENT OF HEALTH
Chapter VII - Life Care Communities
Part 901 - Organization And Administration
Section 901.14 - Acquisition of control of the operator of a life care community
Universal Citation: 10 NY Comp Codes Rules and Regs ยง 901.14
Current through Register Vol. 46, No. 12, March 20, 2024
(a)
(1) Any change in the controlling person(s) of
the operator of a not-for-profit or proprietary life care community, other than a
change subject to prior approval pursuant to sections
901.12 and
901.13
of this Part, shall be subject to the approval of the council. A person seeking
approval as a controlling person of the operator of a life care community shall
file an application for the council's approval within 30 days of becoming a
controlling person, in accordance with the applicable requirements of this
Part.
(2) Pending a decision by the
council, an applicant shall refrain from exercising control over the life care
community by directing or causing the direction of the actions, management or
policies of the community whether through voting securities or voting rights
thereunder, electing or appointing directors, the direct or indirect
determination of policies, or otherwise. The applicant shall submit, as part of
the application, an affidavit whereby the applicant affirms that control over the
community will not be exercised pending a decision by the council.
(b) If the council disapproves an application the applicant shall divest himself or herself of the controlling interest over the operator of the life care community within 30 days of the council's final decision.
(c) Notwithstanding any other provision of this section, the prior approval of the council must be obtained if a person who proposes to become a controlling person of the operator of a life care community is not able to refrain from exercising control over the community upon becoming a controlling person as required by subdivision (a) of this section.
(d)
(1) Upon request of any person, the
commissioner, on behalf of the council, may issue a determination that the taking
of some control action or proposed control action by the person does not
constitute the applicant becoming a controlling person of the operator of a life
care community and that council approval is not required.
(2) The commissioner may revoke or modify his
determination that a person is not or will not become a controlling person when,
based on additional information or documentation not provided to the commissioner
at the time of his initial determination, it is found that the person will
exercise or has exercised control over the operator of a life care community to
the extent of directing or causing the direction of the action, management or
policies of the operator of such community.
(3) When the commissioner determines that a
person will exercise or is exercising control over an operator of a life care
community as a controlling person, such person shall refrain from exercising or
continuing to exercise such control until council approval is obtained.
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