(a)As used in this section, "control" means
possession of the power directly or indirectly to:
(1)direct or cause the direction of the management or policies of
a CPAP provider, whether through the beneficial ownership of
voting securities, by contract, or otherwise; or
(2)vote at least twenty-five percent (25%) of the voting securities
of a CPAP provider, whether the voting rights are derived through
the beneficial ownership of voting securities, by contract, or
otherwise.
(b)An organization or an individual acting directly, indirectly, or
through or in concert with one (1) or more other organizations or
individuals may not acquire control of any CPAP provider unless the
department has received and approved an application for change in
control. The department has not more than one hun
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(a) As used in this section, "control" means
possession of the power directly or indirectly to:
(1) direct or cause the direction of the management or policies of
a CPAP provider, whether through the beneficial ownership of
voting securities, by contract, or otherwise; or
(2) vote at least twenty-five percent (25%) of the voting securities
of a CPAP provider, whether the voting rights are derived through
the beneficial ownership of voting securities, by contract, or
otherwise.
(b) An organization or an individual acting directly, indirectly, or
through or in concert with one (1) or more other organizations or
individuals may not acquire control of any CPAP provider unless the
department has received and approved an application for change in
control. The department has not more than one hundred twenty (120)
days after receipt of an application to issue a notice approving the
proposed change in control. The application must contain the name and
address of the organization, individual, or individuals who propose to
acquire control and any other information required by the director.
(c) The period for approval under subsection (b) may be extended:
(1) in the discretion of the director for an additional thirty (30)
days; and
(2) not more than two (2) additional times for not more than
forty-five (45) days each time if:
(A) the director determines that the organization, individual, or
individuals who propose to acquire control have not submitted
substantial evidence of the qualifications described in
subsection (d);
(B) the director determines that any material information
submitted is substantially inaccurate; or
(C) the director has been unable to complete the investigation
of the organization, individual, or individuals who propose to
acquire control because of any delay caused by or the
inadequate cooperation of the organization, individual, or
individuals.
(d) The department shall issue a notice approving the application
only after the department is satisfied that both of the following apply:
(1) The organization, individual, or individuals who propose to
acquire control are qualified by competence, experience,
character, and financial responsibility to control and operate the
CPAP provider in a legal and proper manner.
(2) The interests of the owners and creditors of the CPAP
provider and the interests of the public generally will not be
jeopardized by the proposed change in control.
(e) The director may determine, in the director's discretion, that
subsection (b) does not apply to a transaction if the director determines
that the direct or beneficial ownership of the CPAP provider will not
change as a result of the transaction.
(f) The president or other chief executive officer of a CPAP provider
shall report to the director any transfer or sale of securities of the CPAP
provider that results in direct or indirect ownership by a holder or an
affiliated group of holders of at least ten percent (10%) of the
outstanding securities of the CPAP provider. The report required by
this subsection must be made not later than ten (10) days after the
transfer of the securities on the books of the CPAP provider.
(g) Depending on the circumstances of the transaction, the director
may reserve the right to require the organization, individual, or
individuals who propose to acquire control of a CPAP provider
licensed under this article to apply for a new license under this chapter,
instead of acquiring control of the licensee under this section.