Section 1597.14 Of Article 3. Administration From California Health And Safety Code >> Division 2. >> Chapter 3.5. >> Article 3.
1597.14
. (a) Notwithstanding Section 1596.858, in the event of a
sale of a licensed child day care center where the sale will result
in a new license being issued, the sale and transfer of property and
business shall be subject to both of the following:
(1) The licensee shall provide written notice to the department
and to the child's parent or his or her legal guardian of the
licensee's intent to sell the child day care center at least 30 days
prior to the transfer of the property or business, or at the time
that a bona fide offer is made, whichever period is longer.
(2) The licensee shall, prior to entering into an admission
agreement, inform the child's parent or his or her legal guardian,
admitted to the facility after notification to the department, of the
licensee's intent to sell the property or business.
(b) Except as provided in subdivision (e), the property and
business shall not be transferred until the buyer qualifies for a
license or provisional license pursuant to this chapter.
(1) The seller shall notify, in writing, a prospective buyer of
the necessity to obtain a license, as required by this chapter, if
the buyer's intent is to continue operating the facility as a child
day care center. The seller shall send a copy of this written notice
to the licensing agency.
(2) The prospective buyer shall submit an application for a
license, as specified in Section 1596.95, within five days of the
acceptance of the offer by the seller.
(c) No transfer of the facility shall be permitted until 30 days
have elapsed from the date when notice has been provided to the
department pursuant to paragraph (1) of subdivision (a).
(d) The department shall give priority to applications for
licensure that are submitted pursuant to this section in order to
ensure timely transfer of the property and business. The department
shall make a decision within 60 days after a complete application is
submitted on whether to issue a license pursuant to Section 1596.95.
(e) If the parties involved in the transfer of the property and
business fully comply with this section, then the transfer may be
completed and the buyer shall not be considered to be operating an
unlicensed facility while the department makes a final determination
on the application for licensure.