1. (a) A license holder may not transfer its license. If a change of ownership occurs, the license holder's license becomes invalid on the date of the change of ownership. The prospective new license holder must obtain a license in accordance with subsection (b) of this section.

2. (b) A prospective new license holder must submit to DADS:

   1. (1) a complete application for a license under §90.11 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. (2) the application fee, in accordance with §90.19 of this subchapter (relating to License Fees); and
   3. (3) signed, written notice from the facility's existing license holder of intent to transfer operation of the facility to the applicant beginning on a date specified by the applicant, unless waived in accordance with subsection (d) of this section.
3. (c) To avoid a facility operating without a license, a prospective license holder must submit all items in subsection (b) of this section by U.S. mail 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.
4. (d) The notice required by subsection (b)(3) of this section may be waived by DADS if DADS determines that the prospective license holder presented evidence showing that circumstances prevented the submission of the notice and that not waiving the notice would create a threat to resident welfare or health and safety.

5. (e) DADS conducts an on-site health inspection to verify compliance with the licensure requirements before issuing a license as a result of a change of ownership. DADS may conduct a desk review instead of an on-site health inspection before issuing a license as a result of a change of ownership if:

   1. (1) 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
   2. (2) every owner with a disclosable interest in the new license holder had a disclosable interest in the former license holder.
6. (f) DADS, in its sole discretion, may conduct an on-site Life Safety Code inspection before issuing a license as a result of a change of ownership.
7. (g) The effective date of the license is the same date as the effective date of the change of ownership and cannot precede the date the application was received by DADS Licensing and Credentialing Section, Regulatory Services Division.
8. (h) 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 reissues the current license in the license holder's new name.
9. (i) 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 of the addition no later than 30 days after the addition of the owner.

Source Note:The provisions of this §551.16 adopted to be effective July 30, 2012; 37 TexReg 5629; amended to be effective October 11, 2017, 42 TexReg 5505; transferred effective May 1, 2019, as published in the Texas Register April 12, 2019, 44 TexReg 1883.