N.J. Admin. Code § 8:36-5.3

Current through Register Vol. 56, No. 21, November 4, 2024

Section 8:36-5.3 - Transfer of ownership

(a) Prior to transferring ownership of a facility or program, the prospective new owner shall submit an application to the Certificate of Need and Licensing Program, including the following items:

1. The transfer of ownership fee of $ 1,500, in accordance with N.J.A.C. 8:36-2.2(i);

2. A cover letter stating the applicant's intent to become the licensed operator of the facility and identification of the facility by name, address, county, and number and type of licensed beds;

3. A description of the proposed transaction including:

i. Identification of the current owner(s) (the "seller");

ii. Identification of 100 percent of the proposed new owner, including the names and addresses of all principals (individuals and/or entities with 10 percent or greater ownership), and for non-profits the names and addresses of the members of the Board;

iii. A copy of organizational charts, including parent companies and wholly owned subsidiaries, if applicable;

iv. A copy of the agreement of sale or letter of intent, signed by both parties, and if applicable, any lease or management agreements; and

v. Disclosure of any licensed health care facilities owned, operated, or managed in New Jersey or any other state. If facilities are owned, operated or managed in other states, letters from the regulatory agencies in each of the respective states, verifying that the facilities have operated in substantial compliance during the last 12-month period and have had no enforcement actions during that period of time, shall be included in the application.

4. Approval of a transfer of ownership is contingent upon a review of the applicant's track record in accordance with N.J.A.C. 8:33-4.10 and 8:43E-5.1.

5. Approval of a transfer of ownership is contingent upon payment of all outstanding State penalties issued by the Department against the current owner, or written verification by the applicant that the applicant will assume responsibility for payment of such State penalties.

6. When a transfer of ownership application has been reviewed and deemed acceptable, an approval letter from the Certificate of Need and Licensing Program shall be sent to the applicant along with licensure application forms and the licensure fee request.

7. Within five working days after the transaction has been completed, the applicant shall submit the following documents to the Certificate of Need and Licensing Program:

i. Completed licensure application forms and the licensure fee;

ii. A notarized letter stating the date when the transaction occurred; and

iii. A certificate of continuing occupancy from the local authority or a letter from the local authority verifying a policy of not issuing any such document for changes of ownership.

N.J. Admin. Code § 8:36-5.3

Amended by 54 N.J.R. 54(a), effective 1/3/2022