1. (a) A license holder may not transfer its license. If there is a change of ownership, the license holder's license becomes invalid on the date of the change of ownership. The prospective license holder must obtain a license in accordance with §97.13 of this subchapter (relating to Application Procedures for an Initial License).
2. (b) A change of ownership for a parent agency is a change of ownership for the parent agency's branch office or alternate delivery site and requires the submittal of an initial application and license fee for the branch office or alternate delivery site.

3. (c) DADS conducts an on-site health inspection to verify compliance with the licensure requirements after issuing a license as a result of a change of ownership. DADS may conduct a desk review instead of an on-site health inspection after 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.
4. (d) For agencies licensed to provide licensed and certified home health services and licensed and certified hospice services, applicable federal laws and regulations relating to change of ownership or control apply in addition to the requirements of this section.

Source Note:The provisions of this §558.23 adopted to be effective June 1, 2006, 31 TexReg 1455; amended to be effective October 11, 2017, 42 TexReg 5514; transferred effective May 1, 2019, as published in the April 12, 2019, issue of the Texas Register, 44 TexReg 1893.