Transfer of Ownership

(A) Circumvention. A transfer of ownership shall not be recognized and the new owner shall not be considered suitable for licensure when the Transfer of Ownership is proposed or made to circumvent the effect and purpose of 105 CMR 164.000. The Department shall consider the following factors in determining whether a Transfer of Ownership has been proposed or made to circumvent 105 CMR 164.000: (1) The transferor's record of compliance with Department licensure laws and regulations; (2) The transferor's current licensure status; (3) The transferor's familial, business or financial relation to the transferee; and (4) The terms of the transfer. (B) Suitability. At least 90 calendar days in advance of any transfer of ownership, any applicant who intends to acquire a substance use disorder treatment program shall submit a Notice of Intent to the Department on a form supplied by it. The Department shall notify each applicant in writing of the date on which the form is deemed completed. Within 90 calendar days of such date, the Department shall complete its suitability review for licensure pursuant to the standards of 105 CMR 164.009. With the consent of the applicant, the Department may extend the 90-day suitability determination period for a maximum of 30 calendar days (C) Application for Licensure. Upon a finding by the Department of suitability in accordance with 105 CMR 164.013(B), an applicant for licensure or approval as a result of any Transfer of Ownership shall file an application for licensure within two business days of the Transfer of Ownership, unless an extension of the two-business day period is granted by the Commissioner. (1) A License or Approval application filed as a result of a Transfer of Ownership, if timely filed, shall have the effect of a license or Approval from the date of transfer until such time as the Department takes action on the application. If not timely filed, an application will not have such effect and the License or Approval shall lapse. (2) Any notice of hearing, order, or decision which the Department or Commissioner issues to a facility prior to a transfer of ownership shall be effective against the former owner prior to transfer and, where appropriate, the new owner following the transfer, unless the notice, order, or decision is modified or dismissed by the Department or the Commissioner.