Changes in ownership
What is a change in ownership?
Events that constitute a change in ownership for licensing purposes include any of the following:
- a license holder sells or transfers 100% of the property, stock, or assets,
- all controlling individuals associated with the original application change,
- a license holder merges with another organization,
- a license holder consolidates with two or more organizations which results in a new organization, or
- the federal tax identification number associated with the license holder changes.
See Minnesota Statutes, section 245A.043, subdivision 2, for the full text of the change of ownership statute.
See Minnesota Statutes, section 245A.02, subdivision 5a, for the definition of a controlling individual.
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, contact your DHS licensor directly. They will provide you next steps in assistance to determine if there will be a change in ownership.
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 contact the DHS licensor for the existing license holder. The DHS licensor will explain the different change in ownership requirements and the steps the existing license holder and new applicant must follow.