WSR 10-14-058

PERMANENT RULES

DEPARTMENT OF

SOCIAL AND HEALTH SERVICES
(Aging and Disability Services Administration)

(Residential Care Services)

[ Filed June 30, 2010, 9:05 a.m. , effective July 31, 2010 ]


Effective Date of Rule: Thirty-one days after filing.

Purpose: The purpose of amending these rules is to give adult family home residents and their families more time to prepare when there is a change of ownership and to make it easier for residents to examine inspection and complaint investigation reports.

The department is adding new sections WAC 388-76-10584 Resident rights -- Examination of license, 388-76-10106 Change of ownership -- Notice to department and residents, and 388-76-10107 Change of ownership -- Priority processing.

Citation of Existing Rules Affected by this Order: Amending WAC 388-76-10105 and 388-76-10585.

Statutory Authority for Adoption: RCW 70.128.040.

Adopted under notice filed as WSR 10-10-077 on May 3, 2010.

A final cost-benefit analysis is available by contacting Michael Tornquist, P.O. Box 45600, Olympia, WA 98504-5600, phone (360) 725-2589, fax (360) 438-7903, e-mail tornqmj@dshs.wa.gov.

Number of Sections Adopted in Order to Comply with Federal Statute: New 0, Amended 0, Repealed 0; Federal Rules or Standards: New 0, Amended 0, Repealed 0; or Recently Enacted State Statutes: New 0, Amended 0, Repealed 0.

Number of Sections Adopted at Request of a Nongovernmental Entity: New 0, Amended 0, Repealed 0.

Number of Sections Adopted on the Agency's Own Initiative: New 0, Amended 0, Repealed 0.

Number of Sections Adopted in Order to Clarify, Streamline, or Reform Agency Procedures: New 3, Amended 2, Repealed 0.

Number of Sections Adopted Using Negotiated Rule Making: New 0, Amended 0, Repealed 0; Pilot Rule Making: New 0, Amended 0, Repealed 0; or Other Alternative Rule Making: New 3, Amended 2, Repealed 0.

Date Adopted: June 30, 2010.

Susan N. Dreyfus

Secretary

4197.3
AMENDATORY SECTION(Amending WSR 10-04-008, filed 1/22/10, effective 2/22/10)

WAC 388-76-10105   Application -- Change of ownership.   (1) Under this section, "control of the provider" means the possession, directly or indirectly, of the power to direct the management, operation and/or policies of the adult family home, whether through ownership, voting control, by agreement, by contract or otherwise.

(2) A change of ownership of an adult family home requires both a new license application and a new license.

(3) A change of ownership occurs when there is a change in:

(a) The provider; or

(b) The control of a provider.

(4) Events which constitute a change of ownership include, but are not limited to:

(a) The form of legal organization of the adult family home is changed, such as when an adult family home forms:

(i) A partnership;

(ii) A corporation;

(iii) A limited liability company; or

(iv) When it merges with another legal organization.

(b) The adult family home transfers business operations and management responsibility to another party, whether or not there is a partial or whole transfer of real property, personal property, or both.

(c) Two people are both licensed as a married couple or domestic partners to operate an adult family home and an event, such as a separation, divorce, or death, results in only one person operating the home.

(d) Dissolution of a business partnership that is licensed to operate the adult family home.

(e) If the adult family home is a corporation and the corporation:

(i) Is dissolved;

(ii) Merges with another corporation, resulting in a change in the control of the provider; or

(iii) Consolidates with one or more corporations to form a new corporation;

(iv) Whether by a single transaction or multiple transactions within a continuous twenty-four month period, transfers fifty percent or more of its shares to one or more of the following:

(A) New or former shareholders; or

(B) Present shareholders, each having less than five percent of the shares before the initial transaction.

(f) Any other event or combination of events that results in a substitution, elimination, or withdrawal of the provider's control of the adult family home.

(5) The new owner:

(a) Must ((correct all deficiencies that exist at the time)) obtain a new license from the department before transfer of ((the)) ownership ((change));

(b) ((Is subject to the provisions of chapters 70.128, 70.129, 74.34 RCW, this chapter and other applicable laws and regulations)) Must not begin operation of the adult family home until the department has granted the license;

(c) Must ((obtain a new license from)) correct all deficiencies that exist at the time of the ((department before the transfer of)) ownership change; ((and))

(d) ((Must not begin operation of the adult family home until the department has granted the license.

(6) The home must notify each resident, in writing at least thirty days before the effective date of the ownership change.

(7) In order to prevent disruption to residents, currently licensed providers may request in writing that the department give priority processing to an applicant seeking to be licensed as the new provider for the adult family home)) Is subject to the provisions of chapters 70.128, 70.129, 74.34 RCW, this chapter and other applicable laws and regulations; and

(e) Must provide the department with a copy of the written notice of the change of ownership that was given to each resident, or applicable resident representatives.

[Statutory Authority: RCW 70.128.040. 10-04-008, 388-76-10105, filed 1/22/10, effective 2/22/10; 09-03-030, 388-76-10105, filed 1/12/09, effective 2/12/09. Statutory Authority: RCW 70.128.040 and chapters 70.128 and 74.34 RCW. 07-21-080, 388-76-10105, filed 10/16/07, effective 1/1/08.]


NEW SECTION
WAC 388-76-10106   Change of ownership--Notice to department and residents.   (1) The current adult family home owner must provide written notice to the department, residents or applicable resident representatives, sixty calendar days prior to the date of the proposed change of ownership; and

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

(a) Names of the present owner and prospective owner;

(b) Name and address of the adult family home for which the ownership is being changed;

(c) Date of proposed change;

(d) The resident's right to decide whether they want to stay or move; and

(e) Any change in the home's policies or operations that could impact a resident's ability to continue to live in the home. For example, if the new owner will be changing the home's policy on serving Medicaid eligible residents, that change might impact a resident's ability to continue receiving services in the home.

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NEW SECTION
WAC 388-76-10107   Change of ownership--Priority processing.   In order to prevent disruption to residents, currently licensed providers may request in writing that the department give priority processing to an applicant seeking to be licensed as the new provider for the adult family home.

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NEW SECTION
WAC 388-76-10584   Resident rights--Examination of license.   The adult family home must place its license to operate and any conditions on the license, in a visible location in a common use area where it can be examined by residents, resident representatives, the department and anyone interested without having to ask for them.

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AMENDATORY SECTION(Amending WSR 07-21-080, filed 10/16/07, effective 1/1/08)

WAC 388-76-10585   Resident rights--Examination of inspection results.   (1) The adult family home must((:

(1) Ensure each resident is given an opportunity to examine)) place the following documents in a visible location in a common use area where they can be examined by residents, resident representatives, the department and anyone interested without having to ask for them.

(a) A copy of the most recent inspection report ((of the home)) and related ((plans of correction)) cover letter; and

(b) A copy of all complaint investigation reports, and any related cover letters received since the most recent inspection or not less than the last twelve months.

(2) ((Post a notice in a visible location in the home indicating the inspection report is available for review)) The adult family home must post a notice that the following documents are available for review if requested by the residents, resident representatives, the department and anyone interested.

(a) A copy of each inspection report and related cover letter received during the past three years; and

(b) A copy of any complaint investigation reports and related cover letters received during the past three years.

[Statutory Authority: RCW 70.128.040 and chapters 70.128 and 74.34 RCW. 07-21-080, 388-76-10585, filed 10/16/07, effective 1/1/08.]

Washington State Code Reviser's Office