Title: Section 765-1.14 - Acquisition of control of the operator of an agency

765-1.14 Acquisition of control of the operator of an agency. This section relates to changes in the control of an operator of a licensed home care services agency not covered in section 765-1.12 or 765-1.13 of this Subpart. Changes covered in section 765-1.12 or 765-1.13 shall require prior approval of the Public Health Council.

(a) (1) Any change in the controlling person(s) of the operator of a not-for-profit or proprietary licensed home care services agency, other than a change subject to prior approval pursuant to section 765-1.12 or 765-1.13 of this Subpart, shall be subject to the approval of the Public Health Council in accordance with the applicable requirements of article 36 of the Public Health Law and this Subpart. A person seeking approval as a controlling person of the operator of a licensed home care services agency shall file an application for Public Health Council approval within 30 days of becoming a controlling person, in accordance with the applicable requirements of this Subpart.

(2) Pending a decision by the Public Health Council, an applicant shall refrain from exercising control over the licensed home care services agency by directing or causing the direction of the actions, management or policies of the agency, whether through voting securities or voting rights thereunder, electing or appointing directors, the direct or indirect determination of policies, or otherwise. The applicant shall submit, as part of the application, an affidavit whereby the applicant affirms that it will not exercise control over the agency pending a decision by the council.

(b) If the Public Health Council disapproves an application to become a controlling person under subdivision (a) of this section, the applicant shall divest himself of the controlling interest over the operator of the licensed home care services agency within 30 days of the council's final decision.

(c) Notwithstanding any other provision of this section, the prior approval of the Public Health Council must be obtained, pursuant to the applicable requirements of article 36 of the Public Health Law and this Part, if a person who proposes to become a controlling person of the operator of a licensed home care services agency is not able to refrain from exercising control over the agency upon becoming a controlling person as required by subdivision (a) of this section.

(d) (1) Upon request of an applicant under this section, the commissioner, on behalf of the Public Health Council, may issue a determination that the taking of some control action or proposed control action by the applicant does not constitute the applicant becoming a controlling person of the operator of a licensed home care services agency as contemplated by this Part and that Public Health Council approval is not required.

(2) The commissioner may revoke or modify his determination that an applicant is not or will not become a controlling person when, based on additional information or documentation not provided to the commissioner at the time of his initial determination, it is found that the applicant will exercise or has exercised control over the operator of a licensed home care services agency to the extent of directing or causing the direction of the actions, management or policies of the operator of such agency.

(3) When the commissioner determines that a person will exercise or is exercising control over an operator or a licensed home care services agency as a controlling person, such person shall refrain from exercising or continuing to exercise such control until Public Health Council approval is obtained.
 

Volume

VOLUME E (Title 10)

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