Sec. 10.12.04.05. Changes in a Program that Affect the Operating License

A. Increase in Capacity or Name Change.

(1) During the license period, a licensee may not increase capacity, change its name, or change the name under which the program is doing business without the Department's approval. When there is a change of program ownership or a change of location, the licensee shall submit a new application and written request for a new license with an application fee, as established in Regulation .04A(2) of this chapter to the Department.

(2) Sale, Transfer, or Lease of a Center.

(a) If a sale, lease or any other transaction causes a change in the individual or individuals who control or operate the center, the center shall be considered a new program and the new owner-operator shall apply for a new license and conform to all regulations applicable at the time of transfer of operations.

(b) The transfer of any stock which results in a change of the individual or individuals who control the program or the transfer of any stock in excess of 25 percent of the outstanding stock constitutes a sale.

(c) For the purposes of Life Safety Code enforcement, the program is considered an existing center if it has been in continuous use as an adult medical day program.

(3) The Department shall issue a new license on approval of:

(a) A change in licensure capacity;

(b) A change in the name of the licensee; or

(c) A change in the name under which the program is doing business.

(4) The licensee shall return its original license to the Department by certified mail.

B. Voluntary Closure or Change of an Adult Medical Day Program Ownership or Location.

(1) A licensee shall notify the Department in writing at least 45 days in advance of any intention to:

(a) Voluntarily close;

(b) Change ownership;

(c) Change location; or

(d) Sell its adult medical day program.

(2) The licensee shall include the following information in the notice to the Department:

(a) The method for informing participants and participant representatives of its intent to close, change ownership, change location, or sell its center; and

(b) The actions the licensee will take to assist participants in securing comparable day services and assistance, if necessary.

(3) A licensee shall notify participants and participant representatives of any proposed changes set forth in §B(1) of this regulation, in writing, at least 45 days before the effective date of the proposed change.

(4) Whenever ownership of a center is changed from the individual or organization named on the license to another individual or organization, the future owner shall apply for a new license. The future owner shall file an application for a license at least 45 days before the final transfer.

(5) The Department shall issue a new license to a new owner if the new owner meets the requirements for licensure under this chapter. The current licensee shall return its license to the Department by certified mail.

(6) A licensee named in the original license shall remain responsible for the operation of the center until a new license is issued to the new owner and the current licensee shall remain responsible for correction of all outstanding deficiencies or impending sanctions until a new license is issued to the new owner.

(7) If a licensee intends to relocate its program, the licensee shall apply for a new license in time to assure continuity of services to the participants. The Secretary shall issue a new license for the new location if the program meets the requirements for licensure under this chapter. The licensee shall return its original license to the Department by certified mail.

(8) After a program closes, in addition to the notice to the Department required by §B of this regulation, the licensee shall:

(a) Notify the Department of the date of closure and the place of relocation of each participant; and

(b) Return all licenses, past and present, to the Department by certified mail.

C. Changes to Licensure Information.

(1) A licensee shall immediately notify the Department of any changes that occur in the licensee's operations that were not submitted with the most recent application.

(2) A licensee shall forward to the Department a copy of any report or citation of a violation that affects the health, safety, or welfare of participants, including building codes, sanitary codes, fire safety codes, or other regulations, that remains uncorrected or unresolved within 7 days of receiving the report or citation.

D. License—Sale, Assignment, or Other Transfer.

(1) A license is valid only in the name of the person to whom it is issued and is not subject to sale, assignment, or other transfer.

(2) A license is valid only for the premises for which it was originally issued.