Section 620.2 - Transfers of interest by sole proprietors or partnerships

620.2 Transfers of interest by sole proprietors or partnerships. (a) An individual or partnership seeking Public Health Council approval of transfer of all or part of the ownership of the business shall file information, documents and data as follows:

(1) a certified copy of the applicant's certificate of doing business, or where the applicant proposes to continue the partnership name, a photocopy of the executed proposed certificate of doing business;

(2) where the applicant is a partnership, full and true copies of all partnership agreements;

(3) a declaration of the percentage of the business to be transferred;

(4) a financial statement setting forth the purchase price of the interest in the business being sold and the financial resources available to make such purchase, or the basis on which such transfer is to be financed;

(5) where any transfer is to be by gift, a statement of the relationship between the donor and donee;

(6) information as to the character, experience, competence and standing in their community of the proposed proprietor or partners;

(7) where the applicant proposes a change of name by which the facility is doing business, a photocopy of the executed proposed certificate of doing business; and

(8) such additional pertinent information or documents necessary for the council's consideration, as requested.

(b) In addition to meeting the applicable requirements of subdivision (a) of this section, an application for the transfer of less than a twenty (20) percent interest in a partnership shall be processed as follows:

(1) the local health systems agency may waive review, but, if such review is not waived, it shall make its recommendation within 90 days from the date a complete application is received by the department;

(2) the department shall process an application subject to this subdivision and submit it to the State Hospital Review and Planning Council for a recommendation and to the Public Health Council for a decision within 150 days from the date a complete application is received by the department, provided that such time period may be extended for a time not to exceed the time the department awaited a response from the applicant to requests for additional documentation and information. The Public Health Council shall act on the application within the same such time period. If the Public Health Council defers the application, the Council shall advise the applicant in writing of the reasons for such deferral. A deferred application shall be returned to the Public Health Council, and the Council shall propose to approve or disapprove such application no later than the second Council meeting following the meeting at which the application was deferred; and

(3) in accordance with subdivision (4) of section 2801-a of the Public Health Law, an application solely for a transfer of interest in an existing established partnership shall not be subject to a public need review.
 

Effective Date: 
Wednesday, January 23, 1991
Doc Status: 
Complete