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Title: Section 901.14 - Acquisition of control of the operator of a life care community

Effective Date

07/01/1992

901.14 Acquisition of control of the operator of a life care community.

(a)(1) Any change in the controlling person(s) of the operator of a not-for-profit or proprietary life care community, other than a change subject to prior approval pursuant to sections 901.12 and 901.13 of this Part, shall be subject to the approval of the council. A person seeking approval as a controlling person of the operator of a life care community shall file an application for the council's approval within thirty days of becoming a controlling person, in accordance with the applicable requirements of this part.

(2) Pending a decision by the council, an applicant shall refrain from exercising control over the life care community by directing or causing the direction of the actions, management or policies of the community 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 control over the community will not be exercised pending a decision by the council.

(b) If the council disapproves an application the applicant shall divest himself or herself of the controlling interest over the operator of the life care community within thirty days of the council's final decision.

(c) Notwithstanding any other provision of this section, the prior approval of the council must be obtained if a person who proposes to become a controlling person of the operator of a life care community is not able to refrain from exercising control over the community upon becoming a controlling person as required by subdivision (a) of this section.

(d)(1) Upon request of any person, the Commissioner, on behalf of the council, may issue a determination that the taking of some control action or proposed control action by the person does not constitute the applicant becoming a controlling person of the operator of a life care community and that council approval is not required.

(2) The Commissioner may revoke or modify his determination that a person 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 person will exercise or has exercised control over the operator of a life care community to the extent of directing or causing the direction of the action, management or policies of the operator of such community.

(3) When the Commissioner determines that a person will exercise or is exercising control over an operator of a life care community as a controlling person, such person shall refrain from exercising or continuing to exercise such control until council approval is obtained.
 

Volume

VOLUME E (Title 10)

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