Current through Reg. 49, No. 38; September 20, 2024
(a) A license holder may not transfer its
license. If there is a change of ownership, the license holders license becomes
invalid on the date of the change of ownership. The new owner must obtain a
change of ownership license in accordance with subsection (b) of this section.
The license holder and new license applicant must notify DADS before a change
of ownership occurs.
(b) The
applicant must submit to DADS:
(1) a complete
application for a change of ownership license under § 554.201 of this
subchapter (relating to Criteria for Licensing) 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 § 554.216 of this subchapter (relating
to License Fees); and
(3) signed,
written notice from the facility's existing license holder of his intent to
transfer operation of the facility to the applicant beginning on a date
specified by the applicant.
(c) To avoid a facility operating while
unlicensed, an applicant must submit all items in subsection (b) of this
section at least 30 days before the anticipated date of the change of
ownership. DADS considers an application as submitted timely if the application
is postmarked at least 30 days before the anticipated date of the change of
ownership and received in DADS Licensing and Credentialing Section, Regulatory
Services Division, within 15 days after the date of the postmark.
(d) The 30-day notification from the
applicant or the 30-day notification from the existing license holder or both
may be waived if DADS determines that the applicant presented evidence showing
that circumstances prevented the submission of the 30-day notice and if DADS
determines that not waiving the 30-day notification would create a threat to
resident welfare or health and safety. If the applicant submits a timely and
sufficient application for a change of ownership license and meets all
requirements for a license, DADS issues a change of ownership license effective
on the date requested by the applicant.
(e) A change of ownership license is a 90-day
temporary license issued to an applicant who proposes to become the new
operator of a nursing facility that exists on the date the application is
submitted. Upon receipt of a complete application, fee, and signed, written
notice from the facilitys existing license holder of the intent to transfer the
operation of the facility to the applicant beginning on a date specified by the
applicant, DADS issues a change of ownership license to the applicant if DADS
finds that the applicant and any other persons listed in § 554.201(e) of
this subchapter meet the requirements in § 554.201(d)(1) and (f) of this
subchapter.
(1) All applications must be made
on forms prescribed by and available from DADS. Each application must be
completed in accordance with DADS instructions, signed, and notarized, and must
contain all forms required by DADS.
(2) DADS approves or denies an application
for a change of ownership license not later than the 31st day after the date of
receipt of the complete application, fee, and signed, written notice from the
facility's existing license holder of his intent to transfer the operation of
the facility to the applicant beginning on a date specified by the applicant.
The effective date of the license is the later of the date requested in the
application or the 31st day after the date DADS receives the application, fee,
and signed, written notice from the existing license holder, unless waived in
accordance with subsection (d) of this section. The effective date of the
change of ownership license cannot precede the date the application is received
in DADS Licensing and Credentialing Section, Regulatory Services
Division.
(3) If the applicant
meets the requirements of § 554.201 of this subchapter and passes an
initial inspection, desk review, or a subsequent inspection before the change
of ownership license expires, a regular three-year license is issued. The
effective date of the regular three-year license is the same date as the
effective date of the change of ownership and cannot precede the date the
application is received by DADS Licensing and Credentialing Section, Regulatory
Services Division.
(4) When an
applicant has not previously held a license in Texas, a probationary license is
issued following the change of ownership license. The effective date of the
probationary one-year license is the same date as the change of ownership
license and cannot precede the date the application is received in DADS
Licensing and Credentialing Section, Regulatory Services Division.
(5) A change of ownership license expires on
the 90th day after its effective date.
(6) DADS conducts an on-site health
inspection to verify compliance with the licensure requirements after issuing a
change of ownership license. DADS may conduct a desk review instead of an
on-site health inspection after issuing a change of ownership license if:
(A) 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
(B)
every owner with a disclosable interest in the new license holder had a
disclosable interest in the former license holder.
(7) DADS, in its sole discretion, may conduct
an on-site Life Safety Code inspection after issuing a change of ownership
license.
(f) A license
holder may be eligible to acquire, on an expedited basis, a license to operate
another existing nursing facility. A license holder that appears on the
expedited change of ownership list may be granted expedited approval in
obtaining a change of ownership license to operate another existing nursing
facility in Texas.
(1) DADS maintains and
keeps current a list of nursing facility license holders that operate an
institution in Texas and that have met the criteria to qualify for an expedited
change of ownership according to the information available to DADS.
(2) In order to establish and maintain the
expedited change of ownership list, DADS uses the criteria found in §
554.2322(e) of this chapter (relating to Medicaid Bed Allocation Requirements).
A license holder meeting these criteria appears on the list and is eligible to
be issued, on an expedited basis, a change of ownership license to operate
another existing institution in Texas.
(3) A license holder appearing on the list
must submit an affidavit that demonstrates the license holder continues to meet
the criteria established for being listed on the expedited change of ownership
list, and continues to meet the requirements in § 554.201(d)(1) and (f) of
this subchapter.
(4) DADS processes
a change of ownership license application on an expedited basis for a license
holder on the list if DADS finds that the license holder and any other persons
listed in § 554.201(e) of this subchapter meet the requirements in §
554.201(d)(1) and (f) of this subchapter.
(5) If the license holder requesting a change
of ownership license on an expedited basis complies with subsections (b) - (e)
of this section, DADS approves or denies the application for a change of
ownership license not later than the 15th day after the date of receipt of the
complete application, fee, and signed, written notice from the facilitys
existing license holder of the intent to transfer the operation of the facility
to the applicant beginning on a date requested in the application. The
effective date of the license is the later of the date requested in the
application or the 31st day after the date DADS receives the application fee,
and signed, written notice from the existing license holder, unless waived in
accordance with subsection (d) of this section. The effective date of the
change of ownership license cannot precede the date the application is received
in DADS Licensing and Credentialing Section, Regulatory Services
Division.
(6) An applicant for a
change of ownership license on an expedited basis must meet all applicable
requirements that an applicant for renewal of a license must meet. Any
requirement relating to inspections or to an accreditation review applies only
to institutions operated by the license holder at the time the application is
made for the change of ownership license.
(g) If a license holder changes its name, but
does not undergo a change of ownership, the license holder must notify DADS and
submit documentation evidencing a legal name change. On receipt of the notice
and documentation, DADS re-issues the current license in the license holders
new name.
(h) 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 DADS no later
than 30 days after the addition of the owner.
