OAR 830-040-0040
Change of Ownership
(1)
Prior to a change of ownership, the prospective new owner must apply to the Board for the issuance of a new license on the most current forms provided by the Board in the new owner’s name. (Refer to section (4) of this rule). A funeral establishment, immediate disposition company, cemetery, crematory, or alternative disposition facility must not be operated without the appropriate license or certificate of authority to operate. The appropriate fees and disclosures must accompany the application.(2)
All licensed facilities must receive Board approval prior to the sale or change of ownership of a licensed facility and provide the Board with a full disclosure of ownership of that licensed facility including percentages of ownership.(3)
All licensed facilities must be licensed by the Board and all applications for licenses must specify the real and true names of the person(s) who own or have an interest in the business proposed to be licensed by the Board, and must be signed by such person(s) or in the case of corporations, by a duly authorized officer or agent.(4)
Licenses issued under ORS 692.146 (Application for funeral establishment or immediate disposition company license) and 692.275 (Certificate of authority for operating cemetery, crematorium or facility for final disposition) are not transferable. Prior to a change of ownership, sales or purchase agreements pertaining to such must be conditioned upon the prospective new purchaser’s ability to apply for and obtain the necessary license or certificate of authority to operate. All licensed or certificated facilities are subject to the inspection and approval of the Board. Before opening a new facility or continuing the operation of an existing facility under new ownership, the prospective operator or new owner must apply to the Board on the most current form provided by the Board with all ownership and, if applicable, corporate information. Prior to a transfer of ownership, the prospective new purchaser and seller must notify the Department of Consumer and Business Services, giving notice of sale to that office, and give the approximate or intended date of the change of ownership.(5)
The purchase of a controlling interest (a majority) of assets or stock of an existing licensed facility will constitute a sale or change of ownership. The person or persons who own the stock of a licensed facility is considered the ownership of the licensed facility. Any one person who owns a majority of the stock is considered an owner. When percentages of stock ownership change any person moving into a majority position must be required to submit an application on the most current form provided by the Board for change of ownership.(6)
Corporate Licenses:(a)
The corporate licensee must notify the Board in writing whenever a person intends to acquire or accumulate ownership or control of ten percent or more of any class of stock in a licensed facility, except for stock in a publicly traded corporation;(b)
Except for publicly traded corporations, the corporate licensee must notify the Board immediately in writing when there has been a change in an officer or director;(c)
The Board may disapprove a change or acquisition described in this rule for any of the grounds for which a license may be denied.(7)
Partnership licensees:(a)
For the purposes of this rule, a partnership is an association of two or more persons who carry on a business jointly and who demonstrate an intent to be treated as partners by signing a partnership agreement, or by entering into a lease or contract under a name different from their real and true names.(b)
The licensee must obtain prior written approval from the Board whenever a person intends to become a general partner in a partnership or intends to acquire or control ten percent or more of the total investment commitment in a licensed limited partnership.(c)
The licensee must notify the Board in writing whenever an existing approved partner increases or decreases his/her investment interest.(d)
The Board may disapprove a change or acquisition described in this rule for any of the grounds for which a license may be denied.(8)
Co-licensees: For purposes of this rule, whenever two or more persons intend to carry on the business jointly other than as a corporation, partnership, or other approved legal entity, they will be treated as co-licensees. Corporations, partnerships, individuals, or other legal entities may become co-licensees. If corporations or partnerships become co-licensees, they must comply with the requirements pertaining to corporate and partnership licensees.
Source:
Rule 830-040-0040 — Change of Ownership, https://secure.sos.state.or.us/oard/view.action?ruleNumber=830-040-0040.