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Changes in ownership

What is a change in ownership?

Events that constitute a change in ownership for licensing purposes include any of the following:

  1. a license holder sells or transfers 100% of the property, stock, or assets (see note for exception)
  2. all controlling individuals associated with the original application change (see note for exception)
  3. a license holder merges with another organization
  4. a license holder consolidates with two or more organizations which results in a new organization or
  5. the federal tax identification number associated with the license holder changes.

Note: Numbers 1 and 2 are not considered an ownership change if at least one controlling individual has been listed as a controlling individual for the license for the previous 12 months.

See Minnesota Statutes, section 245A.043, subdivision 2, for the full text of the statute. 

How do I determine if a change to my program is a change in ownership for licensing purposes?

To determine if planned changes to your program are a change in ownership for licensing purposes, complete the first section of the Is a new license needed? worksheet. If it is determined there will be a change in ownership, you will be directed to follow the instructions in sections 2 and 3 of the Is a new license needed? worksheet. While you are responsible for notifying DHS of any ownership changes, DHS maintains the authority to determine whether there is a change in ownership for licensing purposes. Licenses are not transferable or assignable to a different license holder. 

What do I need to do if a program will be changing ownership?

The existing license holder and the party that intends to purchase the program must follow the instructions in sections 2 and 3 of the Is a new license needed? worksheet. This worksheet explains the two different ownership change process options, the steps the existing license holder and new applicant must follow, and how to complete and submit the form at the end of the worksheet. 

Providers that intend to assume operation of a program without an interruption in service longer than 60 days after acquiring the program are exempt from the letter of need requirements in Minnesota Rules, part 9530.6800.

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