Section 390.150  Issuance of an Initial License Due to a Change of Ownership

a)         Upon receipt and review of an application  for a license, the Director shall issue a  probationary license if he finds:

1)         The applicant is a person responsible and  suitable to operate or to direct or to  participate in the operation of a facility by virtue of financial capacity, appropriate  business or professional experience, a  record of compliance with lawful orders of  the Department and lack of revocation of a  license during the previous five years;

2)         The facility is under the supervision of an  administrator who is licensed under the Nursing Home Administrators Licensing and Disciplinary Act; and

3)         The facility is in substantial compliance  with the Act and this Part.  (Section 3-109 of the Act)

b)         Whenever ownership of a facility is  transferred from the person named in a  license to any other person, the transferee  must obtain a new probationary license.  The  transferee shall notify the Department of  the transfer and apply for a new license at  least 30 days prior to final  transfer.  (Section 3-112 of the Act)

c)         The transferor shall notify the Department  at least 30 days prior to final  transfer.  The transferor shall remain responsible for the operation of the  facility until such time as the license is  issued to the new transferee.  (Section 3-112 of the Act)

d)         The license granted to the transferee shall  be subject to any plan of correction  submitted by the previous owner and approved by the Department and any conditions  contained in a conditional license issued to  the previous owner.  If there are  outstanding violations and no plan of  correction has been submitted by the  facility and approved by the Department, the  Department may issue a conditional license  and plan of correction as provided in  Sections 3-311 through 3-317 of the Act in place of a  probationary license. (Section 3-113 of the Act)

e)         The transferor shall remain liable for all  penalties assessed against the facility  which are imposed for violations occurring prior to transfer of ownership.  (Section 3-114 of the Act)

f)          The Department will issue a probationary license for 120 days from the date of issuance.

g)         Within 30 days prior to the termination of a probationary license, the Department shall fully and completely inspect the facility and, if the facility meets the applicable requirements for licensure, shall issue a license under Section 3-109 of the Act.  (Section 3-116 of the Act) If the facility is not in compliance and satisfactory progress toward compliance is not being made, the Department will allow the probationary license to expire.

h)         If the Department finds that the facility does not meet the requirements for licensure but has made substantial progress toward meeting those requirements, the license may be renewed once for a period not to exceed 120 days from the expiration date of the initial probationary license. (Section 3-116 of the Act)  Under no condition may more than two successive probationary licenses be issued.

i)          The issuance date of the probationary  license to the new owner will be the date  the last licensure requirement is met as determined by the Department.

j)          The licensee shall qualify for issuance of a two-year license if the licensee has met the criteria contained in Section 3-110(b) of the Act for the last twenty-four consecutive months.

(Source:  Amended at 18 Ill. Reg. 1453, effective January 14, 1994)