Pascal Bergeron
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a. A license holder may not transfer its license.
b. At least 30 days before the anticipated date of the change of ownership, the prospective
license holder must notify DADS of the change of ownership by submitting an
application for an initial license based on a change of ownership under §92.14 of this
subchapter (relating to Initial Application Procedures and Requirements) and the fee
required in §92.4 of this chapter (relating to License Fees).
c. To avoid a facility operating while unlicensed, an applicant must submit an application
for an initial license based on a change of ownership at least 30 days before the
anticipated date of the change of ownership. The effective date of the change of
ownership cannot precede the date the application is received by DADS Licensing and
Credentialing Section, Regulatory Services Division.
d. DADS may assess an administrative penalty in accordance with Subchapter H, Division 9
of this chapter (relating to Administrative Penalties) against a person who fails to notify
DADS before the effective date of the change of ownership.
e. Pending DADS review of the application for an initial license based on a change of
ownership, the current license holder must continue to meet all requirements for
operation of the facility.
f. DADS conducts an on-site health inspection to verify compliance with the licensure
requirements before issuing a license based on a change of ownership. DADS may
conduct a desk review instead of an on-site health inspection if DADS determines that the
facility was required to obtain a new tax identification number and:
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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. every owner with a disclosable interest in the new license holder had a disclosable
interest in the former license holder.
g. DADS, in its sole discretion, may conduct an on-site Life Safety Code inspection of the
facility before issuing a license based on a change of ownership.
h. DADS issues the license within 30 days after DADS determines that the applicant and the
the facility has met the licensure requirements of this section. The issuance of a license
constitutes DADS official written notice to the facility of the approval of the application
for a change of ownership.
i. DADS may deny an application for a change of ownership if the applicant, controlling
a person or any person required to submit background and qualification information fails
to meet the criteria for a license established in §92.11 of this subchapter (relating to
Criteria for Licensing).
j. If DADS denies an application for an initial license based on a change of ownership,
DADS sends the applicant a written notice of the denial and informs the applicant of the
applicant’s right to request an administrative hearing to appeal the denial. The
the administrative hearing is held in accordance with Texas Health and Human Services
Commission rules at 1 TAC Chapter 357, Subchapter I (relating to Hearings Under the
Administrative Procedure Act).
k. If a license holder, that is not a publicly-traded company, adds an owner with a
disclosable interest, but the license holder does not undergo a change of ownership, the
the license holder must notify DADS no later than 30 days after the addition of the owner.

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