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

3810 Circumstances That May Require Amending the Permit

Revision 23-2; Effective June 26, 2023 

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

26 TAC Sections 744.301; 746.301; 747.301; 748.153; 749.153

Texas Human Resources Code Section 42.048

Changes Required to Be Reported to CCR

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 CCR before making any change that would violate the restrictions or conditions on the permit.

26 TAC Sections 744.301; 746.301; 747.301; 748.153; 749.153

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 Recommended or Imposed by CCR

CCR may recommend that CCR amend the permit because of the operation’s failure to comply with the applicable statutes, administrative rules or minimum standards.

If the permit holder does not agree to request the amendment to the permit that the CCR staff recommend as a remedy, CCR staff consult with the supervisor and Regional Director to determine if a referral to Child Care Enforcement (CCE) is warranted to request an adverse amendment to the permit. 

See:

7600 Adverse Actions

Changes Imposed by Other Governmental Entities

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

See 3823 Amending the Permit in CLASS

3811 When and How to Evaluate a Change in an Operation

Revision 23-3; Effective Sept. 22, 2023

The inspector evaluates the change and determines 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
• if a residential child care operation makes a change in the:
  • gender of children in care; or
  • the type of service.

The CCR inspector consults with the supervisor and regional director if: 

• the operation: 
  • is on probation; 
  • has been notified of the intent to impose adverse action by HHSC; or
  • is on heightened monitoring; or
• the change poses significant 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;
• the addition of a swimming pool or other permanent body of water on the premises; or
• the increase or decrease in outdoor space (except for Child-Placing Agencies).

Inspecting the Operation to Evaluate a Change Request

The CCR inspector inspects the operation if the operation requested to make a physical change. Except for a change in location, the inspector inspects the operation within 30 days after receiving the information from the operation.

Obtaining Fire and Health Inspections

The inspector verifies that a licensed operation (other than a licensed child care home or CPA) obtains approved fire and health inspections as required when:

• adding space to increase capacity; or
• changing location.

Evaluating a Request to Increase Capacity

If the operation has requested an increase in capacity, the inspector evaluates the request by reviewing floor plans and photographs submitted by the operation, if any, or conducting an inspection to verify that the operation has adequate space, toilets and sinks to accommodate the increase (see 3823.2 Changing the Operation’s 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)

For a GRO that requests 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, General Residential Operations – Additional Operational Plan; 
• determines if the plan detailed in Form 2960, Attachment C is complete and contains clear responses;
• reviews the operational policies before the operation may schedule a public hearing; and 
• conducts an inspection if the operation made physical changes to the site to determine if the requested changes are appropriate.

Concerns with the Operational Plan

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 inspector denies the operation’s request to amend the permit.

Approving the Operational Plan

If the inspector determines that the operational plan documented on Form 2960, Attachment C, is complete and contains clear responses, the inspector:

• documents approval of the operational plan in CLASS in a Chronology (type Application) in CLASS;
• uploads Form 2960, Attachment C to CLASS Document Library as outlined in 1310 Content and Organization of Child Care Regulation Records Content and Organization of Child Care Regulation Records;
• informs the operation that it may schedule a public hearing;
• follows policies and procedures in 3140 Public Notice and Hearing Requirements for General Residential Operations Public Notice and Hearing Requirements for General Residential Operations (including its sub-items); and
• amends the permit after the hearing.

Evaluating Other Requests

For all other requests, the inspector: 

• reviews the operation’s compliance history; 
• reviews the operation’s policies; and 
• may conduct an inspection to determine if the requested changes are appropriate.

If CCR staff approve changes to the permit, the inspector makes those changes according to 3823 Amending the Permit in CLASS.

See:

1430  Documenting and Storing Photographs, Video, Audio, Scanned Documents and Other Digital Files
1431  Documenting Photographs, Video, Audio, Scanned Documents and Other Digital Files
1432  Storage of Photographs, Video, Audio, Scanned Documents and Other Digital Files in CLASS Document Library

3812 When an Operation Changes Location

Revision 23-2; Effective June 26, 2023

When an operation changes location and notifies CCR of the change of location within the timeframes outlined in administrative rule and the table below, CCR staff:

• provide the operation with the applicable change of address request form;
• conduct an inspection for all operations except listed family homes after receiving the change of address request form; and
• amend the permit to reflect the new address but do not change the issuance date if the operation is in compliance with applicable statutes, administrative rules and minimum standards.

CCR staff do not generate a new fee invoice when an operation changes location.

If the operation moves without giving CCR timely notice, CCR staff cite a deficiency for the operation failing to notify CCR of the move according to the timeframes in administrative rules and minimum standards. In addition, the inspector discusses with the supervisor whether CCR will:

• amend the permit to reflect the new address; or 
• consult with the regional director to determine whether to submit a referral to Child Care Enforcement (CCE) to recommend that HHSC revoke the permit.

See:

3823 Amending the Permit in CLASS      
7110 Circumstances That May Call for Enforcement Action      
26 TAC Sections 744.301; 745.435(b); 746.301; 747.301; 748.153; 749.153       
Texas Human Resources Code Section 42.048

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 Amending the Permit in CLASS

Revision 23-2; Effective June 26, 2023

CCR staff amend an operation’s permit by updating the Issuance and Operation Main pages in CLASS when CCR:

• Approves an operation making changes to the permit including:
  • capacity;
  • age range of children served;
  • gender (RCCR only);
  • services the operation offers;
  • location;
  • name of the operation; or
• Adds conditions to the permit.

After amending information that displays on an operation's permit, CCR staff take the steps outlined in 3824 Issuing the Amended Permit.

Adverse Amendments

CCR handles an adverse amendment the same as an adverse action. CCR staff send a recommendation to CCE for an adverse amendment.

See 7600 Adverse Actions.

3823.1 Changing the Operation’s Restrictions and Conditions in CLASS

Revision 23-2; Effective June 26, 2023

Procedure

Restrictions

CCR staff document changes to the permit restrictions under the Restrictions box on the Issuance page by:

• selecting or de-selecting the age options;
• selecting or de-selecting the gender options (RCCR only); 
• entering the total infant capacity, if applicable; or
• changing the total licensed capacity.

Conditions

CCR staff enter a description for conditions to be listed on the permit in the Description box under the Conditions for Permit, Registration or Certification section on the Issuance page.

See 3424 Applying Additional Types of Conditions or Restrictions and its sub-items for examples of conditions.

Amendments to Restrictions or Conditions

CCR staff document a summary of the amendments to restrictions or conditions to the permit under the Full Issuance Amendments section of the Issuance page and selects which type of amendment applies. 

3823.2 Changing the Operation's Capacity in CLASS

Revision 23-2; Effective June 26, 2023

CCR staff take steps to change an operation’s capacity in CLASS when:

• the operation requests a change in capacity;
• CCE changes the operation’s capacity as an adverse amendment; or
• another governmental entity changes the operation’s capacity.

See 3424.3 Fire and Sanitation Reports and Other Local Ordinances

Procedure

Operation Requests to Decrease Capacity

If the operation requests to decrease capacity, CCR staff may complete the following on the Issuance page in CLASS: 

• select Change Capacity in the Restrictions section;
• enter the operation’s requested capacity and save at the bottom of the page; and
• generate an amended permit to reflect the updated capacity.

Operation Requests to Increase Capacity

If the operation requests to increase capacity, CCR staff evaluate whether the operation can meet standards relevant to the amendment as outlined in 3811 When and How to Evaluate a Change in an Operation.

CCR staff then complete the following on the Issuance page in CLASS:

1. select Change Capacity under the Restrictions section;
2. enter the requested capacity and save at the bottom of the page;
3. document whether:
   • CCR approved the operation’s request to increase capacity;
   • CCR approved the operation’s request to increase capacity by a lower amount than requested by the operation;
   • CCR rejected the request to increase capacity; or
   • the operation withdrew the request to increase capacity.

CLASS automatically generates the Capacity Fee Invoice when staff approve the operation’s request to increase capacity in CLASS.

CCR staff then generate and issue an amended permit to reflect the updated capacity if:

• CCR staff approved the request; and
• the operation paid the change in capacity fee when the request is to increase capacity and the operation is not exempt from paying permit fees. 

If the operation is exempt from paying permit fees, the inspector documents the fee exemption according to 3121.1 Documenting Fee Exemptions in CLASS before approving the capacity increase.

If CCR staff approve the request to increase capacity in CLASS, but circumstances change requiring the operation to withdraw the request or submit a new request, the inspector follows 3823.1 Changing the Operation’s Restrictions and Conditions in CLASS.

5236 Capacity Increase Fee Invoice (Also Known as Amendment Fee)

5240 Verification of Fee Payments

3823.3 Changing the Operation’s Permit in CLASS for the Gender or Ages Served

Revision 23-2; Effective June 26, 2023

If the operation made changes to the ages of children served, and CCR approves this change, the inspector documents the change in the Restrictions section on the Issuance page. CCR staff generate and send a new permit to the operation for the following operation types: 

• licensed child care home;  
• school-age program;  
• before or after-school program;   
• licensed child-care center; 
• general residential operation; or 
• child-placing agency. 

For an RCCR operation that makes a change to the permit for the gender of children served and CCR approves this change, the inspector:  

• documents the change in the Restrictions section on the Issuance page; and 
• generates and issues an amended permit to the operation.

3823.4 Changing a Residential Child Care Operation’s Services Offered in CLASS

Revision 23-2; Effective June 26, 2023

If the operation is a GRO or CPA and the operation made changes to the services the operation provides and CCR approves this change, the inspector:  

• documents the changes in services on the Operation Main page in CLASS; and 
• generates and issues an amended permit to the operation.

3823.5 Changing the Operation’s Address in CLASS

Revision 23-2; Effective June 26, 2023

When an operation changes location and CCR approves the change, CCR staff update the Operation Main page in CLASS to reflect the new address. 

LFH, RCCH, or CPA Branch Changes Location 

If a listed family home, registered child care home, or child-placing agency branch changes location, CCR staff take the following steps on the Operation Main page in CLASS: 

• enter the new location address; 
• validate the new address; and 
• save the change at the bottom of the page. 

LCCH, LCCC, BAP, SAP, CPA Main, or GRO Changes Location

If a licensed child care home, a licensed child-care center, before or after-school program, school-age program, child-placing agency main office, or general residential operation changes location, the inspector informs the supervisor, after which the supervisor: 

• selects Address Correction button on the bottom of the Operation Main page; 
• enters the new location address; 
• validates the address; and 
• saves the page.

3823.51 Which CCR Staff Can Change an Operation’s Address in CLASS

Revision 23-2; Effective June 26, 2023

The table below lists the minimum CLASS role that may change an operation’s address in CLASS:

See:

Appendix 1000-2 Security Roles and Functions in CLASS

3824 Issuing the Amended Permit

Revision 23-2; Effective June 26, 2023

Procedure

If an inspector places any condition on the permit, the inspector documents the changes and the effective date in the Conditions for Permit, Registration, or Certification section on the Issuance page.

For all changes that display on the operation’s permit, 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.

The inspector creates and prints a copy of the amended permit and applicable issuance letter and mails or delivers the copy to the operation.

See 3823 Amending the Permit in CLASS

3830 Changes that Require an Application for a New Permit

Revision 23-2; Effective June 26, 2023

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; or
• ownership.

See:

3833 Change of Ownership  
26 TAC Sections 745.429; 745.435; 745.437; 744.301; 746.301; 747.301; 748.153; 749.153

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 Reserved for Future Use

Revision 23-2; Effective June 26, 2023

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 §§744.303; 746.303; 748.153; 749.153; 750.123(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 748, 749, 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)