WAC 388-76-10105   Application -- Change of ownership.  (1) A change of ownership of an adult family home requires both a new license application and a new license.

     (2) A change of ownership occurs when there is a change in:

     (a) The provider or entity provider; or

     (b) Control of an entity provider.

     (3) Events which constitute a change of ownership include, but are not limited to:

     (a) The form of legal organization of the provider is changed, such as when a provider forms:

     (i) A partnership;

     (ii) A corporation;

     (iii) An association; or

     (iv) A dissolution or merger of a licensed entity with another legal organization.

     (b) The provider or entity provider transfers business operations and management responsibility to another party, whether there is a partial or whole transfer of adult family home real property and/or personal property assets.

     (c) Two people are both licensed as a married couple or domestic partners to operate an adult family home and an event, such as a separation, divorce, or death results in only one person operating the home.

     (d) An event dissolves the partnership, if the provider or entity provider is in a business partnership.

     (e) If the provider or entity provider is a corporation and the corporation:

     (i) Is dissolved;

     (ii) Merges with another corporation which is the survivor; or

     (iii) Consolidates with one or more corporations to form a new corporation;

     (iv) Whether by a single transaction or multiple transactions within a continuous twenty-four month period, transfers fifty percent or more of the stock to one or more:

     (A) New or former stockholders; or

     (B) Present stockholders each having less than five percent of the stock before the initial transaction.

     (f) Any other event or combination of events which results in a substitution of or control of the provider or entity provider.

     (4) The new owner:

     (a) Must correct all deficiencies that exist at the time of the ownership change;

     (b) Is subject to the provisions of chapters 70.128, 70.129, 74.34 RCW, this chapter and other applicable laws and regulations;

     (c) Must obtain a new license from the department before the transfer of ownership; and

     (d) Must not begin operation of the adult family home as the new owner, provider or entity provider until the department has granted the license.

     (5) The home must notify each resident, in writing at least thirty days before the effective date of the ownership change.

     (6) If a currently licensed provider or entity provider seeking to change ownership wants the department to give priority to processing an application to minimize or prevent disruption of residents that live in the existing home, the applicant must:

     (a) Make the request to the department in writing, including the reason for changing the ownership of the home; and

     (b) Explain how or why the reason for the change is beyond the control of the home.



[Statutory Authority: RCW 70.128.040. 09-03-030, § 388-76-10105, filed 1/12/09, effective 2/12/09. Statutory Authority: RCW 70.128.040 and chapters 70.128 and 74.34 RCW. 07-21-080, § 388-76-10105, filed 10/16/07, effective 1/1/08.]