(a) When a facility plans to change its ownership, the new owner shall submit:
  (1) an application for an initial license and nonrefundable fee to the Texas Health and Human Services Commission (HHSC) no later than 30 calendar days before the date of the change of ownership in accordance with §509.24 of this subchapter (relating to Application and Issuance of Initial License); and
  (2) notwithstanding §509.24(c)(14) of this subchapter, a copy of a passing fire inspection report conducted within the last 12 months and one from the year prior indicating approval by the local fire authority in whose jurisdiction the facility is based. Annual fire safety inspections are required for continued licensure status.
(b) In addition to the documents required in §509.24 of this subchapter, the applicant shall submit a copy of the signed bill of sale or lease agreement that reflects the effective date of the change of ownership.
(c) The applicant is not required to submit a transfer agreement that HHSC has previously approved if the applicant notifies HHSC in writing that it has adopted the transfer agreement.
(d) A facility is not required to submit an application for change of ownership if the facility changes only its name. If a facility changes its name, the facility must notify HHSC no later than 10 calendar days after the effective date of the change.
(e) For a change of ownership, HHSC may waive the initial licensure on-site health inspection required by §509.24(l) of this subchapter and the initial on-site construction inspection required by 25 TAC Chapter 131, Subchapter G (relating to Physical Plant and Construction Requirements).
(f) If the applicant does not complete all requirements of subsection (a) and (b) of this section within six months after the date HHSC's health facility licensing unit receives confirmation that HHSC received the application and payment, HHSC will withdraw the application. Any fee paid for a withdrawn application is nonrefundable, as indicated by §509.30(d) of this subchapter (relating to Fees).
(g) When the new owner has complied with the provisions of §509.24 of this subchapter, HHSC shall issue a license that is effective as of the date of the change of ownership.
(h) HHSC shall set the expiration date of the license in accordance with §509.24 of this subchapter.
(i) The previous owner's license becomes void as of the effective date of the new owner's license.

Source Note: The provisions of this §509.27 adopted to be effective December 4, 2023, 48 TexReg 7064