PPECC Change of Ownership

A center license is not assignable or transferable. If a change of ownership occurs, the license holder’s license becomes invalid on the date DADS acknowledges the change of ownership. The prospective new license holder must obtain a license. An application for a center license when there is a change of ownership is an application for an initial license.

Time Frames

  • Completed applications for a change of ownership must be submitted 30 days before the anticipated date of the sale or transfer.

License Application Required Documents

  • Visit the TULIP  website for application forms and instructions.
  • A letter of credit for $250,000 from a bank that is insured by the Federal Deposit Insurance Corporation (FDIC).
  • Management Company Agreement, if applicable.
  • Copy of written notification to the local health authority that the applicant is submitting a license application to HHSC.
  • A copy of an approved inspection of the center by the local fire marshal.
  • Property documents (lease, sublease or deed).
  • A copy of the results of the PPECC pre-licensure computer-based training for the administrator.
  • Required legal entity documents for applicant (and management company if applicable).§ See attachment A of form 3720 instructions.
  • Completed, signed and notarized Form 3725, Change of Ownership Affidavit.


  • $2,625