Original Notice.

     Preproposal statement of inquiry was filed as WSR 08-21-076.

     Title of Rule and Other Identifying Information: Change of ownership (CHOW): Amending the following sections from the boarding home licensing chapter regarding CHOW, WAC 388-78A-2770 Change in licensee and 388-78A-2780 Requirements to change boarding home licensee.

     Add the following sections to the boarding home licensing chapter regarding CHOW: WAC 388-78A-2773 Change in licensee/change of ownership -- When change in licensee not required, 388-78A-2775 Change in licensee/change of ownership -- Application, 388-78A-2777 Change in licensee/change of ownership -- Revised application, 388-78A-2783 Change in licensee/change of ownership -- Relinquishment of license, 388-78A-2785 Change in licensee/change of ownership -- Ninety days notice, and 388-78A-2787 Change in licensee/change of ownership -- Sixty days notice.

     Hearing Location(s): Blake Office Park East, Rose Room,

4500 10th Avenue S.E., Lacey, WA 98503 (one block north of the intersection of Pacific Avenue S.E. and Alhadeff Lane. A map or directions are available at http://www1.dshs.wa.gov/msa/rpau/docket.html or by calling (360) 664-6094), on January 27, 2009, at 10:00 a.m.

     Date of Intended Adoption: Not earlier than January 28, 2009.

     Submit Written Comments to: DSHS Rules Coordinator, P.O. Box 45850, Olympia, WA 98504-5850, delivery 4500 10th Avenue S.E., Lacey, WA 98503, e-mail DSHSRPAURULESCOORDINATOR@dshs.wa.gov, fax (360) 664-6185, by 5:00 p.m. on January 27, 2009.

     Assistance for Persons with Disabilities: Contact Jennisha Johnson, DSHS rules consultant, by January 13, 2009, TTY (360) 664-6178 or (360) 664-6094 or by e-mail at johnsjl4@dshs.wa.gov.

     Purpose of the Proposal and Its Anticipated Effects, Including Any Changes in Existing Rules: Change of ownership (CHOW): To promote resident well-being; to reduce unnecessary resident anxiety; and to reduce unnecessary boarding home staff turnover/staffing challenges.

     Reasons Supporting Proposal: See above.

     Statutory Authority for Adoption: Chapters 18.20, 74.34 RCW.

     Statute Being Implemented: Chapters 18.20, 74.34 RCW.

     Rule is not necessitated by federal law, federal or state court decision.

     Name of Proponent: Department of social and health services, governmental.

     Name of Agency Personnel Responsible for Drafting: Todd Erik Henry, P.O. Box 45600, Olympia, WA 98513, (360) 725-2580; Implementation and Enforcement: Lori Melchiori, P.O. Box 45600, Olympia, WA 98513, (360) 725-2580.

     No small business economic impact statement has been prepared under chapter 19.85 RCW. The department determined that the amendments were no more than "minor costs" as defined in RCW 19.85.030.

     A cost-benefit analysis is required under RCW 34.05.328. A preliminary cost-benefit analysis may be obtained by contacting Todd Henry, Boarding Home Program, P.O. Box 45600, Olympia, WA 98504-5600, phone (360) 725-2580, fax (360) 438-7903, e-mail henryte@dshs.wa.gov.

December 19, 2009

Stephanie E. Schiller

Rules Coordinator

     (((a))) (1) The licensee's form of legal organization is changed (e.g., a sole proprietor forms a partnership or corporation);

     (((b))) (2) The licensee transfers ownership of the boarding home business enterprise to another party regardless of whether ownership of some or all of the real property and/or personal property assets of the boarding home is also transferred;

     (((c))) (3) The licensee dissolves, or consolidates or merges with another legal organization and the licensee's legal organization does not survive;

     (((d))) (4) If, during any continuous twenty-four-month period, fifty percent or more of the "licensed entity" is transferred, whether by a single transaction or multiple transactions, to:

     (((i))) (a) A different person (e.g., new or former shareholders or partners); or

     (((ii))) (b) A person that had less than a five percent ownership interest in the boarding home at the time of the first transaction.

     (((e))) (5) Any other event or combination of events that results in a substitution, elimination, or withdrawal of the licensee's control of the boarding home. As used in this section, "control" means the possession, directly or indirectly, of the power to direct the management, operation and/or policies of the licensee or boarding home, whether through ownership, voting control, by agreement, by contract or otherwise.

     (((2) The licensee is not required to change when the following, without more, occur:

     (a) The licensee contracts with a party to manage the boarding home enterprise for the licensee pursuant to an agreement as specified in WAC 388-78A-2590; or

     (b) The real property or personal property assets of the boarding home are sold or leased, or a lease of the real property or personal property assets is terminated, as long as there is not a substitution or substitution of control of the licensee or boarding home.))

[Statutory Authority: RCW 18.20.090 (2004 c 142 § 19) and chapter 18.20 RCW. 04-16-065, § 388-78A-2770, filed 7/30/04, effective 9/1/04.]

     (1) The licensee contracts with a party to manage the boarding home enterprise for the licensee pursuant to an agreement as specified in WAC 388-78A-2590; or

     (2) The real property or personal property assets of the boarding home are sold or leased, or a lease of the real property or personal property assets is terminated, as long as there is not a substitution or substitution of control of the licensee or boarding home.

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     (2) The annual boarding home license fee, if a license fee is due, must accompany the change in ownership application.

     (3) The prospective licensee must submit the following information that must be submitted along with the change of ownership application:

     (a) Evidence of control of the real estate on which the boarding home is located, such as a purchase and sales agreement, lease contract, or other appropriate document; and

     (b) Any other information requested by the department.

     (4) The prospective licensee must submit the completed application to the department within the applicable timeframes of WAC 388-78A-2785 or 388-78A-2787.

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     (1) Any information included on the original application is no longer accurate; or

     (2) Requested by the department.

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     (2) The licensee must include the following information in the written notice:

     (a) Name of the present licensee and prospective licensee;

     (b) Name and address of the boarding home for which the licensee is being changed;

     (c) Date of proposed change; and

     (d) If the boarding home contracts with the department or other public agencies that may make payments for residential care on behalf of residents, the anticipated effect, such as discharge from the boarding home, the change of licensee will have on residents whose care and services are supported through these contracts.

     (((2) The prospective licensee must, at least ninety days prior to the proposed date of change:

     (a) Sign the application;

     (b) Submit the annual license fee, if a license fee is due;

     (c) Submit evidence of control of the real estate on which the boarding home is located, such as a purchase and sales agreement, lease contract, or other appropriate document;

     (d) Submit a revised application if any information included on the original application is no longer accurate; and

     (e) Complete and submit a revised application if requested by the department.))

     (((3) Send a letter to the department stating the licensee's intent to relinquish the boarding home license on the effective date of change in licensee.))

[Statutory Authority: RCW 18.20.090 (2004 c 142 § 19) and chapter 18.20 RCW. 04-16-065, § 388-78A-2780, filed 7/30/04, effective 9/1/04.]

     (2) To relinquish a license, the licensee must mail the department the boarding home license along with a letter, addressed to the department, stating licensee's intent to relinquish the boarding home license to the department.

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