3800, Handling Changes in an Operation, Type of Permit, Location, and Ownership

3810 Circumstances That May Require Amending the Permit

July 2018

Changes Affecting Restrictions or Conditions

The permit may need to be amended because of changes requested by the operation that affect restrictions or conditions on the permit, including:

  • an increase or decrease to the operation’s infant capacity, if the operation is a licensed child care center;
  • an increase or decrease to the operation’s total capacity;
  • an increase or decrease in outdoor or indoor space to accommodate children;
  • a change in the age range of children in care;
  • a reduction in the number of toilets or sinks;

26 TAC §§744.301746.301747.301748.153

  • a change in the type of service, for residential operations;
  • a change from a before or after-school program to a school-age program (or the reverse);
  • the opening or closing of, or a change in the location of, a branch office for child-placing agencies; or
  • a change of location by a listed family home, registered child care home, or child-placing agency.

Changes Required to Be Reported To Licensing

Administrative rules and minimum standards for all types of operations (except listed homes and operations that have compliance certificates) require an operation’s governing body to notify Licensing before making any change that would violate the restrictions or conditions on the permit.

26 TAC §§744.301746.301747.301748.1203749.1101750.153750.1009

If a child-placing agency is going to move, the permit holder must notify Licensing of the move no later than 15 days before the move.

40 TAC §745.435

Changes that are Not Reported

The permit may need to be amended because of changes made by the permit holder that are not reported and that affect either the restrictions or conditions on the permit, or both.

The inspector must address the change as soon as he or she learns of it and determine if the failure to report the change was a violation of minimum standards.

Changes Imposed by Licensing

The permit may need to be amended because of changes imposed by Licensing to remedy a failure to comply with the licensing statute, administrative rules, or minimum standards.

If the permit holder does not agree to a change that the inspector is imposing as a remedy, the inspector handles the amendment as an adverse action. A permit holder has a right to an administrative review and appeal when Licensing staff plan an adverse amendment after issuance that changes restrictions or conditions to a permit.

See:

7600 Adverse Actions

7700 Legal Actions When an Operation Disagrees with the Actions of an Inspector.

Changes Imposed by Governmental Entities Other than Licensing

If Licensing learns of local ordinances or regulations that would affect the restrictions or conditions on the permit, Licensing staff amend the permit in order to comply with those ordinances or regulations.

 

3811 When and How to Evaluate a Change that Poses Risk to Children

July 2021

The inspector evaluates the change and may deny the request if it would pose a risk to children. The operation waits until the changes are approved by CCR before making the change in the operation. The inspector evaluates the following changes before approving them:

  • an increase or decrease to the operation’s infant capacity, if the operation is a licensed child care center;
  • an increase or decrease to the operation’s total capacity;
  • an increase or decrease in outdoor or indoor space to accommodate children;
  • a change in the age range of children in care;
  • a reduction in the number of toilets or sinks; and
  • a change in the type of service, for residential operations.

If the operation is on probation, or has been notified of adverse action, the inspector denies the request for a change if the change would increase the risk to children.

Procedure

Evaluating Physical Changes to the Operation

A physical change includes:

  • additions or reductions to indoor space to be used by children in care;
  • addition of a swimming pool or other permanent body of water on the premises;
  • the increase or decrease in outdoor space (for child care centers, school-age programs, and before or after-school programs); or
  • a child-placing agency that moves to a new location.

Conducting an Inspection

If a physical change has been made to the operation, the inspector conducts an inspection within 30 days after receiving the information from the operation. The inspector evaluates all standards related to the child-placing agency’s location and building.

Obtaining Fire and Health Inspections

The inspector ensures that a licensed operation obtains approved fire and health inspections as required when adding space to increase capacity.

This does not apply to licensed child care homes.

Evaluating a Request to Increase Capacity

If the operation has requested an increase in capacity, the inspector evaluates the request by reviewing floor plans or conducting an inspection to verify that the operation has adequate space, toilets, and sinks to accommodate the increase (see 3823.1 Processing an Amendment to Capacity in CLASS).

For residential child care operations that are subject to public notice and hearing requirements, the inspector follows policies and procedures in 3140 Public Notice and Hearing Requirements for General Residential Operations (including its sub-items) before amending the permit.

Evaluating a Request to Add Treatment Services for Children with Emotional Disorders (GROs Only)

If a general residential operation has requested to add treatment services for children with emotional disorders to the permit, the CCR inspector reviews and approves the plan detailed in Form 2960, Application for a License to Operate a Residential Child Care Facility, Attachment C, General Residential Operations – Additional Operational Plan, and operational policies before the operation may schedule a public hearing. The inspector may also conduct an inspection to determine if the requested changes are appropriate.

If the inspector has concerns with the plan detailed on Form 2960, Attachment C, or the updated operational policies, the inspector discusses those concerns with his or her supervisor and with the permit holder. If CCR cannot approve the operational plan, the request to amend the permit is denied.

After determining that the operational plan documented on Form 2960, Attachment C, is adequate, the inspector:

  • documents approval of the operational plan in CLASS as a chronology entry (type Application); and
  • uploads Form 2960, Attachment C to the CCR SharePoint site as outlined in 1310 Content and Organization of Child Care Regulation Records.

After the operational plan is approved, the operation may schedule the public hearing. The inspector follows policies and procedures in 3140 Public Notice and Hearing Requirements for General Residential Operations (including its sub-items) before amending the permit.

Evaluating Other Requests

For all other requests, the inspector reviews the operation’s compliance history and may also review the operation’s policies. The inspector may also conduct an inspection to determine if the requested changes are appropriate.

If changes to the permit are approved, the inspector makes those changes according to 3823 How to Amend the Permit in CLASS.

 

3812 When a Child-Placing Agency, Listed Family Home, Registered Child Care Home or School-Age Program Changes Location

July 2021

In certain circumstances, CCR may amend a permit of a child-placing agency, listed family home, registered child care home or school-age program when the operation changes location. For all other operation types, the operation must apply for a new permit. See 3832 Change of an Operation’s Location that Requires an Application for a New Permit.  

Child-Placing Agency

If a child-placing agency (CPA) is going to move, the permit holder is required to notify CCR of the move no later than 15 days before the move.

The inspector sends Form 2969 Child-Placing Agency Change of Address Request, located on the CCR SharePoint, to the permit holder. The permit holder completes Page two of the form and returns it to CCR. A fee is not required when a CPA changes location.

The inspector inspects the new location before processing the move as an amendment to the permit. When amending the permit, the inspector does not change the issuance date.

If a CPA moves without giving CCR timely notification of the move, the license may be revoked.

40 TAC §§745.4358605(10)

Listed Family Home or Registered Child Care Home

If a listed family home or registered child care home changes location, the permit holder is required to notify CCR as early as possible before the move, but no later than 15 days after the move.

CCR staff provide CLASS Form 2811 Change of Address Request, and the permit holder must complete the form showing the new address. A fee is not required when a listed or registered home changes locations.

For a listed family home, CCR staff amend the listing permit to reflect the new address but do not change the issuance date.

For a registered child care home, the inspector conducts an inspection and evaluates for compliance with the standards affected by a change in location. If there is compliance with minimum standards, the inspector amends the registration permit to reflect the new address but does not change the issuance date.

If a listed or registered operation moves without notifying Licensing within 15 days of the move, the listing or registration permit may be revoked.

26 TAC §§745.431745.433745.8605(1)

School-Age Program

If a school-age program that operates exclusively during the summer months or when school is not in session is going to move, the permit holder is required to notify CCR of the move no later than 15 days before the move. The inspector sends Form 2002 School-Age Program Change of Address, located on the CCR SharePoint, to the permit holder. The permit holder completes Form 2002 and returns it to CCR. A fee is not required when a school-age program changes location.

The inspector conducts an inspection and evaluates for compliance with the standards affected by a change in location. If there is compliance with minimum standards, the inspector amends the permit to reflect the new address but does not change the issuance date.

If the school-age program moves without giving CCR timely notice, the license may be revoked.

26 TAC §§745.435745.8605(10)

 

3820 How to Evaluate and Process Amendments to a Permit

 

3821 How to Address Plans for Change

July 2018

Procedure

Determine whether the change will necessitate amending the permit. When information about a plan for changing the operation is received, the inspector completes the following tasks:

  1. Determine whether the changes could violate statute, administrative rules, or minimum standards.
  2. Discuss the change with the permit holder or designee to ensure agreement with the changes to the permit.
  3. If compliance is established, document the changes in CLASS, which may include processing the amendment by preparing a new permit.

 

3822 Documenting Changes for Child Day Care Operations When Amending the Permit is Not Required

July 2018

Procedure

Licensed or Certified Child Day Care Operations

If amending the permit is not required but the restrictions recorded on Form 2910 Application for a License or Certification to Operate a Child Day Care Facility have changed, the inspector documents the changes in the operation’s record in CLASS and notes the changes made in CLASS Chronology.

Registered Child Care Homes

If amending the permit is not required, but the restrictions recorded in CLASS have changed, the inspector documents the changes in the operation’s record in CLASS.

Restrictions that do not require an amendment of the permit include changes to the operation’s capacity, the ages of the children, and the hours, days, and months of operation.

Licensing staff document any conditions or restrictions that need to be noted on the permit in the Description box of the Conditions for Permit, Registration or Certification section of the operation’s Issuance page in CLASS.

 

3823 How to Amend the Permit in CLASS

July 2021

Procedure

If amending the permit is necessary, the inspector enters information in CLASS as follows:

  1. If the operation is a listed family home, registered child care home, or a child-placing agency (including a branch office), and changes are made to the operation’s address, CCR staff document and validate the new address on the operation’s Main page in CLASS.
  2. If the operation is a school-age program operating exclusively during the summer months or when school is not in session and changes are made to the operation’s address, the inspector consults with the supervisor to change the address on the operation’s Main page in CLASS. The supervisor selects the Address Correction button on the bottom of the main page, updates and validates the address, and saves the information on the Main page.
  3. If the operation is a child-placing agency or a general residential operation and the operation made changes to the services the operation provides, the inspector documents the changes in services on the operation’s Main page.
  4. If the operation made changes to the capacity or the gender and ages served, the inspector documents the changes in the Restrictions section on the Issuance page.
  5. If the inspector places any other conditions on the permit, he or she documents the changes and the effective date in the Conditions for Permit, Registration, or Certificate section on the Issuance page.
  6. For all changes, the inspector documents an effective date and a summary of the reason for the amended permit in the Full Issuance Amendments section on the Issuance page.
  7. The inspector creates and prints a copy of the amended permit and applicable issuance letter and mails or delivers the copy to the operation. 

Adverse Amendments

If the permit holder does not agree to the changes, the inspector handles the amendment as an adverse action.

The inspector sends the necessary documentation with the amendment recommendation to the supervisor for approval.

The inspector mails the permit with a certified letter prepared according to 7600 Adverse Actions.

 

3823.1 Processing an Amendment to Capacity in CLASS

February 2020

Procedure

To initiate an amendment to capacity in CLASS, Licensing staff:

  • selects Change Capacity in the Restrictions section on the Issuance page in CLASS; and
  • enters the operation’s requested capacity into the Total Capacity Requested field.

 

3823.11 Processing a Request to Decrease Capacity

February 2020

Procedure

If the operation requested a decrease in capacity, Licensing staff may immediately reissue the operation’s license to reflect the updated capacity.

 

3823.12 Processing a Request to Increase Capacity

February 2020

Procedure

If the operation requested an increase in capacity, Licensing staff must evaluate whether the operation can meet standards relevant to the amendment as outlined in 3811 When and How to Evaluate a Change that Poses a Risk to Children.

Licensing staff may then:

  1. Approve the operation’s request to increase capacity;
  2. Approve the operation’s request to increase capacity by a lower amount than requested by the operation; or
  3. Reject the request to increase capacity.

 

3823.13 Entering a Decision Regarding a Request to Increase Capacity

February 2020

Procedure

Licensing staff enter the decision in the Restrictions section on the Issuance page in CLASS as follows:

  • If Licensing staff approves the operation’s request to increase capacity, staff enters the new approved capacity into the Total Capacity Approved field and selects Approve; or
  • If Licensing staff does not approve the operation’s request to increase capacity, staff selects Reject and documents the reason(s) for the rejection in the Comments box.

If the operation is exempt from paying fees, the inspector selects the correct indicator on the operation’s Main page in CLASS before approving the capacity increase.

If a request to increase capacity was approved in CLASS, but circumstances change that require the request to be withdrawn or a new request to be made, the inspector follows 3823.15 Processing an Operation’s Withdrawal to Increase Capacity.

See 3121.1 Documenting Fee Exemptions in CLASS

 

3823.14 Reissuing a License After Approving a Request to Increase Capacity

February 2020

Licensing staff may not reissue the amended license to reflect the increased capacity until the operation has paid the fee to increase capacity, unless the operation is exempt from paying fees.

26 TAC §§745.503745.509

Procedure

Once Licensing staff verifies the operation has paid the fee to increase capacity, staff may reissue the amended license to the operation.

See 5240 Verification of Fee Payments

 

3823.15 Processing an Operation’s Withdrawal to Increase Capacity

February 2020

Procedure

If the operation withdraws the request to increase capacity, Licensing staff selects Withdraw in the Restrictions section on the Issuance page in CLASS.

 

3830 Changes that Require an Application for a New Permit

July 2021

The governing body or owner of an operation must apply for a new permit and submit the appropriate fees for a change in:

  • permit type;
  • location for operations other than listed family homes, registered child care homes, a school-age program that operates exclusively during the summer months or any other time school is not in session, and child-placing agencies; and
  • ownership.

See 3832 Change of an Operation’s Location that Requires an Application for a New Permit

3833 Change of Ownership

26 TAC §§745.429745.435745.437744.301746.301747.301748.153749.153

 

3831 Change to Type of Permit

July 2018

A governing body’s request to change permit type may include:

  1. a licensed operation becoming a registered or listed operation or an operation with a compliance certificate;
  2. an independent foster home becoming a general residential operation;
  3. a registered operation home becoming a licensed or listed operation;
  4. a listed operation becoming a registered or licensed operation;
  5. an operation with a compliance certificate becoming a licensed operation; or
  6. a licensed operation transitioning into another licensed type of operation that is governed under a different chapter of minimum standards.

 

3831.1 Establishing Compliance with Minimum Standards

July 2018

The operation must establish compliance with the minimum standards applicable to the new type before a new permit is issued.

See 3310 Evaluating Before Issuing a Permit, to determine whether to issue an initial or full permit to a licensed operation.

See 3313 Inspecting the Operation (Except Listed Homes), to determine which administrative rules or minimum standards must be evaluated for compliance before issuance.

 

3832 Change of an Operation’s Location that Requires an Application for a New Permit

July 2021

When an operation changes its location, the permit is automatically revoked unless:

  • the change of location is for a school-age program that operates exclusively during the summer months when school is not in session and notified CCR at least 15 days before changing location;
  • the change of location is for a child-placing agency that notified CCR at least 15 days before changing location; or
  • the change of location is for a listed or registered home that notified CCR no later than 15 days after changing location.  

When a change in location will automatically revoke a permit, the permit holder:

  • must notify CCR as early as possible before the move to voluntarily relinquish the permit; and
  • may apply for a permit to operate at the new location.

If the permit holder fails to notify CCR before the operation is relocated, CCR may deny the permit at the new location.

Texas Human Resources Code §42.048(e)

26 TAC §§745.429745.431745.433745.435

Procedure

When the permit holder notifies CCR of a change in location that is subject to automatically revoking a permit, the inspector ensures the permit holder voluntarily relinquishes the permit. If the permit holder wishes to operate at the new location, the inspector ensures the operation applies for a new permit and processes the application. In some instances, the permit holder of a licensed operation may be eligible for a full license instead of an initial license. See 3532 Full License for an Operation that Changes Ownership or Location.

If the permit holder did not notify CCR of the change in location, but CCR staff learns that a licensed or certified operation has changed or will change location, the inspector sends CLASS Form Vol Suspension/Relocation/Clsr Letter 2865e, 2825 to the permit holder confirming the move. Along with the form, CCR staff include new application materials (or instructions on where to find a copy of the application materials online) if the application materials had not been provided previously. If the operation failed to notify CCR before relocating, CCR may deny the permit for the new location. See 7110 Circumstances That May Call for Enforcement Action.

Required Application and License Fees

Licensed operations pay new application and license fees. Certified operations and operations with compliance certificates pay new application fees.

Texas Human Resources Code §42.048

26 TAC §§743.7745.429745.435745.8605(10)

See 3812 When a Child Placing Agency, Listed Family Home, Registered Child Care Home or School-Age Program Changes Location

 

3833 Change of Ownership

July 2018

If a change in ownership occurs in an operation, the permit is revoked.

A change in ownership includes any of the following:

  1. The owner stated on the permit no longer owns the operation.
  2. The governing body stated on the permit no longer has the ultimate authority and responsibility for the operation.
  3. There is a change in the legal organizational structure of the operation.
  4. If the permit holder is a type of business entity, and that business entity is sold.

Exception

If the permit holder is a type of business entity, and that business entity is sold, a change in ownership of an operation does not include the acquisition of a corporate permit holder’s publicly traded stock if all of the following conditions exist:

  1. The corporate permit holder listed on the application and on the permit will continue to exist as the same corporate entity and to own and operate the operation.
  2. There will be no change in the operation’s policy or procedure because of the transaction.
  3. There will be no change in the staff who have contact with children in care because of the transaction.
  4. Any change in the day-to-day operations that might occur after the sale is in the ordinary course of business and not as a result of the stock transaction.

Texas Human Resources Code §42.048

40 TAC §745.437

Procedure

The permit holder must notify Licensing as early as possible before the change in ownership, and the new owner must apply for a new permit. If the permit holder did not notify Licensing of the change in ownership, but Licensing staff learn that an operation has changed or will change ownership, the inspector sends CLASS Form Vol Suspension/Relocation/Clsr Letter 2865e, 2825, to the permit holder or the new owner, as appropriate, confirming the change. The inspector also provides application materials to the new owner or instructions on where to find a copy of the application materials online.

Operations must pay new application and license fees, as applicable.

40 TAC §745.439

26 TAC §§744.303746.303748.153749.153750.123(1)

 

3834 Steps to Process an Application

July 2018

Procedure

For licensed operations, see 3313.4 Evaluating Compliance to determine whether an initial or full license permit is needed.

The application is processed according to the procedures in 3200 Processing the Application for a License, Certificate, Compliance Certificate, Registration, or Listing Permit.

 

3834.1 When a Permit is Added or Replaced

July 2018

Policy

A new permit will supersede the old unless the operation is adding an additional permit.

 

3834.2 Public Notice and Hearing Requirements

July 2018

For residential child care, applicants may be subject to public notice and hearing requirements. See 3141 General Requirements for Public Hearing and Notices.

Texas Human Resources Code §42.0461

 

3834.3 Documentation in CLASS

July 2018

Procedure

In the CLASS, a new operation number will be given for a new application.

To retain the history of the operation, the inspector enters the operation number in the Issuance History field on the new operation’s Main page in CLASS.

See also 2200 Types of Child Care and Multiple Operations.

 

3840 When Operations are Ineligible for Grandfather Provisions if Location or Ownership Changes

 

3841 Child Day Care

July 2018

If a child day care operation that was issued a permit before September 1, 2003, changes location or ownership, the operation can no longer operate under any of the grandfather provisions in Texas Administrative Code (TAC) Chapters 746 and 747,unless the inspector and inspector’s supervisor has determined that a change in ownership has not nullified the grandfather provisions.

Texas Human Resources Code §42.048(e)

 

3842 Residential Child Care

July 2018

If a residential child care operation that was issued a permit before January 1, 2007, changes location or ownership, the operation can no longer operate under any of the grandfather provisions in Texas Administrative Code (TAC) Chapters 748749, and 750, unless the inspector and inspector’s supervisor have determined that a change in ownership has not nullified the grandfather provisions.

Texas Human Resources Code §42.048(e)