(a)

1. (1) If a long-term care facility intends to add, remove, or otherwise change the management company, operator, or other management agent that manages the long-term care facility, the long-term care facility shall notify the Department of Human Services of the change and request approval at least thirty (30) days before the change occurs.
2. (2) The department will timely process the application, however, additional requests for information may be necessary and extend this process.

(b)

1. (1) The long-term care facility shall provide the department with the information required to allow the department to evaluate whether the new management company, operator, or other management agent that manages the long-term care facility meets the eligibility criteria set forth in the disqualifying criteria stated in 20 CAR § 410-207.

2. (2)

   1. (A) The long-term care facility shall receive approval of the change from the department before the change occurs unless the change is required due to an emergency.
   2. (B) If a change occurs without prior approval from the department due to an emergency, the long-term care facility shall notify the department within ten (10) days of the change.

(c)

1. (1) The department may deny a requested change based on the criteria established in subsection (d) of this section.
2. (2) If the department denies a requested change, the long-term care facility may not employ or otherwise use the denied management company, operator, or other management agent.
3. (3) A long-term care facility is not required to notify or receive approval from the department for a change involving vendors that provide services to the long-term care facility but do not manage the facility.

(d)

1. (1) The department shall consider and may deny a license based upon any criteria provided for at Arkansas Code § 20-10-224.
2. (2) Failure to comply with the provisions of this section will result in the denial of licensure to the new owner.

(e) Transactions constituting a change in ownership include, but are not limited to, the following:

1. (1) Sale or donation of the facility’s legal title;
2. (2) Lease of any portion of facility’s real or personal property;
3. (3) A sole proprietor becomes a member of a partnership or corporation, succeeding him or her as the new operator;
4. (4) A partnership dissolves;
5. (5) An initial partnership is replaced by another through the removal, addition, or substitution of a partner;
6. (6) The corporate owner merges with, or is purchased by, another corporation or legal entity; or
7. (7) A not-for-profit corporation becomes a general corporation, or a for-profit corporation becomes not-for-profit.

(f) Transactions that do not constitute a change of ownership include, but are not limited to, the following:

1. (1) Changes in the membership of a corporate board of directors or board of trustees; or
2. (2) Changes in the membership of a not-for-profit corporation.