1. (a) An application for an initial license resulting from a change of ownership must be requested at least 60 days before the effective date of the change of ownership.

   1. (1) To avoid a gap in the license period, a prospective new owner must submit a complete and correct application packet for a license and the appropriate license fee to DADS at least 30 days before the anticipated date of sale or other transfer of ownership, and before expiration date of the license.
   2. (2) An applicant must submit a complete and correct application packet to DADS in accordance with the instructions provided with the application packet.
   3. (3) An applicant must meet the criteria for a license as described in §97.11 of this subchapter (relating to Criteria and Eligibility for Licensing).

   4. (4) If an applicant submits a timely and sufficient application packet and license fee and meets all criteria for a license, DADS issues the applicant a license effective on the date of the transfer of ownership. DADS considers an applicant to have filed a timely and sufficient application for a license if the applicant submits:

      1. (A) a complete and correct application packet and license fee to DADS that is postmarked at least 30 days before the anticipated date of sale or other transfer of ownership, and before the expiration date of the license;
      2. (B) an incomplete application packet and license fee to DADS with a letter explaining the circumstances that prevented its completion that is postmarked at least 30 days before the anticipated date of sale or other transfer of ownership, and before the expiration date of the license; and DADS accepts the explanation. The applicant must submit the missing information to DADS within 30 days after the date of the letter;
      3. (C) a complete and correct application packet and license fee to DADS that is postmarked less than 30 days before the anticipated date of sale or other transfer of ownership, and before the expiration date of the license; and the applicant pays the late fee set out in §97.3(d) of this chapter (relating to License Fees); or
      4. (D) a complete and correct application packet and license fee to DADS that is received by the date of sale or other transfer of ownership, and before the expiration date of the license; and the applicant proves to DADS' satisfaction that the health and safety of the agency's clients required an emergency change of ownership.

   5. (5) If an applicant files a timely application packet and license fee, but DADS determines that the application packet is incomplete and a letter explaining the circumstances that prevented its completion was not filed with the application, DADS considers the application timely filed but incomplete.

      1. (A) DADS provides the applicant with written notification of the missing information required to complete the application and may assess the late fee set out in §97.3(d) of this chapter for failure to comply with paragraph (1) of this subsection.
      2. (B) An applicant must submit the required information and late fee, if assessed, no later than 30 days after the date of the notice. If an applicant fails to submit the required information within 30 days after the notice date, DADS considers the application incomplete and DADS denies the license. If DADS denies the license, DADS does not refund the license fee.
   6. (6) The initial license issued to the new owner is valid for two years from the date of issuance.
   7. (7) The previous owner's license is void on the effective date of the new owner's initial license. The previous owner's license must be surrendered to DADS within five working days after the effective date of the change of ownership.
   8. (8) DADS may deny issuance of a license for any of the reasons specified in §97.21 of this subchapter (relating to Denial of an Application or a License).
2. (b) 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 §558.25 adopted to be effective June 1, 2006, 31 TexReg 1455; amended to be effective September 1, 2008, 33 TexReg 1149; amended to be effective January 15, 2009, 34 TexReg 252; transferred effective May 1, 2019, as published in the April 12, 2019, issue of the Texas Register, 44 TexReg 1893.