(a) If a contractor intends to undergo a change of ownership or change of legal entity, the following action must be taken to obtain a new provisional contract:
  (1) at least 60 days before the proposed date of the change of ownership or change of legal entity, the contractor must notify HHSC in accordance with §49.551 of this chapter (relating to Contractor Terminating Contract or Not Entering into a Standard Contract) that it intends to terminate the contract;
  (2) the contractor (for a change of ownership) or new legal entity (for a change of legal entity) must apply for a provisional contract in accordance with §49.203 of this subchapter (relating to Provisional Contract Application Process) at least 60 days before the proposed date of the change of ownership or change of legal entity;
  (3) the contractor or new legal entity must receive approval from HHSC of the provisional contract application before the date of the change of ownership or change of legal entity in accordance with §49.208 of this subchapter (relating to Provisional Contract Application Approval); and
  (4) if required to have a license under §49.205 of this subchapter (relating to License, Certification, Accreditation, and Other Requirements) to be a contractor, the contractor or new legal entity must ensure that the date of the change of ownership or change of legal entity is the same as the date of the change of ownership or change of legal entity for the new license.
(b) If a contractor undergoes a change of ownership or change of legal entity and the requirements in subsection (a)(1) - (4) of this section are met, HHSC:
  (1) notifies individuals receiving services or LARs in accordance with §49.551(c)(2)(A) of this chapter; and
  (2) enters into a new provisional contract with the contractor or new legal entity.
(c) If a contractor undergoes a change of ownership or change of legal entity and the requirements in subsection (a)(1) - (4) of this section are not met, HHSC:
  (1) proposes to terminate the contractor's contract in accordance with §49.534(a)(2)(C) of this chapter;
  (2) notifies individuals receiving services or LARs in accordance with §49.534(c)(1) and (2) of this chapter; and
  (3) does not enter into a new provisional contract with the contractor or new legal entity with an effective date the same as the date of the change.
(d) If a contractor or new legal entity does not receive approval in accordance with subsection (a)(3) of this section, HHSC does not enter into a contract with the contractor or new legal entity.

Source Note: The provisions of this §52.43 adopted to be effective September 1, 2014, 39 TexReg 6637; amended to be effective September 1, 2018, 43 TexReg 5230; amended to be effective December 22, 2020, 45 TexReg 9234; transferred effective April 29, 2024, as published in the March 29, 2024, issue of the Texas Register, 49 TexReg 2091