Current through Reg. 49, No. 38; September 20, 2024
(a)
If a contractor intends to undergo a change of ownership or change of legal
entity, the following action must be taken to obtain a new provisional
contract:
(1) at least 60 days before the
proposed date of the change of ownership or change of legal entity, the
contractor must notify HHSC in accordance with §
49.551
of this chapter (relating to Contractor Terminating Contract or Not Entering
into a Standard Contract) that it intends to terminate the contract;
(2) the contractor (for a change of
ownership) or new legal entity (for a change of legal entity) must apply for a
provisional contract in accordance with §
49.203
of this subchapter (relating to Provisional Contract Application Process) at
least 60 days before the proposed date of the change of ownership or change of
legal entity;
(3) the contractor or
new legal entity must receive approval from HHSC of the provisional contract
application before the date of the change of ownership or change of legal
entity in accordance with §
49.208
of this subchapter (relating to Provisional Contract Application Approval);
and
(4) if required to have a
license under §
49.205
of this subchapter (relating to License, Certification, Accreditation, and
Other Requirements) to be a contractor, the contractor or new legal entity must
ensure that the date of the change of ownership or change of legal entity is
the same as the date of the change of ownership or change of legal entity for
the new license.
(b) If a
contractor undergoes a change of ownership or change of legal entity and the
requirements in subsection (a)(1) - (4) of this section are met, HHSC:
(1) notifies individuals receiving services
or LARs in accordance with §
49.551(c)(2)(A)
of this chapter; and
(2) enters
into a new provisional contract with the contractor or new legal
entity.
(c) If a
contractor undergoes a change of ownership or change of legal entity and the
requirements in subsection (a)(1) - (4) of this section are not met, HHSC:
(1) proposes to terminate the contractor's
contract in accordance with §
49.534(a)(2)(C)
of this chapter;
(2) notifies
individuals receiving services or LARs in accordance with §
49.534(c)(1) and
(2) of this chapter; and
(3) does not enter into a new provisional
contract with the contractor or new legal entity with an effective date the
same as the date of the change.
(d) If a contractor or new legal entity does
not receive approval in accordance with subsection (a)(3) of this section, HHSC
does not enter into a contract with the contractor or new legal
entity.