Change of Ownership

Child Care Learning Centers

Effective October 1, 2023, all new Child Care Learning Center applications will be submitted online. This includes Change of Ownership applications. New Owners may also opt to apply for other DECAL programs that the center they are purchasing already participates in such as Quality Rated and Georgia’s Pre-K.

The Georgia Department of Early Care and Learning (DECAL) values the opportunity to work with New Owners during the change of ownership process.

A Change of Ownership is required for processing when:

A new owner buys an existing child care business, building, or property that remains in continuous operation. The transaction is not complete and legal until there has been a closing. (Note: Closing is defined as the legal and financial transaction that transfers ownership from one party to another.)
The current owner of a child care facility changes ownership type (ex: Inc. to LLC, LLC to LLP, LLP to Inc., or Sole Proprietor to Inc, etc.).
The current owner creates a new corporation or LLC.

If a new or potential facility meets one of the three definitions above for a Change of Ownership, please complete the online Change of Ownership application via your DECAL Koala account. If you need to establish a DECAL Koala account, you may do so by clicking on the link below and then following the instructions on the webpage.

DECAL Koala - https://www.decalkoala.com

All required documents must be uploaded to the online application before it may be submitted for review. In the table below are some of the documents required for the Change of Ownership application. If you do not plan to participate in a program, then you will not be required to upload the documents relevant to that program.

CHILD CARE SERVICES CHANGE OF OWNERSHIP

During the change of ownership process, a new owner may be issued a permit, temporary license, and finally their renewable license. Permits are issued and effective for 21 calendar days before expiration. Within this period, additional required documentation, and approvals to complete the application process must be submitted and the Initial Licensing Study visit will be scheduled and conducted. Once a permit is issued, programs are eligible to apply for Georgia’s Pre-K, Quality Rated, CAPS, Nutrition, and other DECAL programs and resources.

Permit – a temporary document issued by the Department authorizing a Center to operate without a License for a limited term and in accordance with the Department’s Rules and Regulations.

Temporary License – temporary document issued by the Department authorizing a Center to operate without a License for a limited term beyond what is allowed for a Permit and in accordance with the Department’s Rules and Regulations.

Renewable License – document issued by the Department to authorize the License Holder to whom it is issued to operate a Center in accordance with the Department’s Rules and Regulations.

Please ensure all application information and required documents are submitted to avoid further delays or the return of applications. Unresponsiveness or failure to provide requested documentation by deadlines given can result in closure or denial of the application.

Please do not send postal mail to the office; applications should be completed online via the New Owner's DECAL Koala account. If you need assistance with completing the online application, please contact the Applicant Services Unit at CCSASUCOO@decal.ga.gov.

GEORGIA’S PRE-K PROGRAM CHANGE REQUEST PROCESS

A change request to transfer a Georgia’s Pre-K classroom(s) is only applicable if the previous center(seller) had a Georgia’s Pre-K classroom(s).

Georgia’s Pre-K Program is generally non-transferable. When a center is sold after entering into a Georgia’s Pre-K grant agreement with DECAL, change of ownership requirements must be met as determined by DECAL before a determination can be made as to the transferring of the Pre-K program to the new owner. Entities applying for transfer of classes must be agents who are eligible to receive Georgia’s Pre-K funds as specified in the Georgia’s Pre-K Program Providers’ Operating Guidelines.

A request to continue services does not guarantee continuation of funding for the new owner. Funding decisions are at the discretion of DECAL.

Georgia’s Pre-K payments are placed on hold during the change of ownership process. Entities requesting a change of ownership should not base business decisions on the assumption that Georgia’s Pre-K will automatically approve the continuation of Pre-K classes once a request is processed. The Pre-K Division will notify the new owner of the continuation status of the Pre-K classes after the Child Care Services Division issues a valid license.

If the transfer of the Georgia’s Pre-K program is approved, the payment hold will be released, and the new owner may continue delivery of Pre-K services. It is understood that all equipment, supplies, and materials purchased for the Pre-K program remain with the program. It is also understood that the new owner accepts the conditions of the Pre-K grant agreement for the current school year. Refer to section 21.6 in the Pre-K Program Providers’ Operating Guidelines for additional information. For questions about the Pre-K Change of Ownership process, email prek.ownership@decal.ga.gov.

Quality Rated - Change of Ownership Information

Programs experiencing a Change of Ownership may be eligible to transfer Quality Rated (QR) data from the previous license number to the new license number.

Transferable data includes:

Current rating and expiration date
Cohort selection
Portfolio in progress
CAPS/QR Provisional or Probationary Status

To apply for a QR data transfer, new owners must complete the Quality Rated Tab included in the online CCLC Change of Ownership application. Eligibility for QR data transfer is reviewed by QR and, if approved, a new QR account is created for the new license number with the transferred data.

Helpful tips for new owners:

Do not create a new QR account while the data transfer request is in process. This will create a lag in transfer time.
Do not request CAPS/QR Provisional Status if you wish to transfer the QR data. If the transfer is not approved, you will be eligible for the CAPS/QR Provisional Status and guided to that process when notified of the unapproved transfer.

For general questions about Quality Rated or to request a QR Data Transfer Application Form, contact the Quality Rated Help Desk at QualityRated@decal.ga.gov or 1-855-800-7747.

CAPS - Change of Ownership Information

To be eligible to participate in CAPS, the following must occur:

New Owners must have a Quality Rated status (by transfer of the rating or a provisional status).
New Owners must receive a permit, temporary license, or continuing license from Child Care Services (CCS).
New Owners must complete an enrollment application for CAPS.

The following process should be followed:

The new owner receives their permit, temporary license, or continuing license from CCS.
The new owner then contacts the CAPS Provider Relations team at CAPSPFR@decal.ga.gov to get information about the CAPS change of ownership process.
Provider Relations will contact the vendor to start the enrollment process.
After the new owner has been set up in the vendor system, the scholarships will be transferred to the new owner based on the dates when the requirements for Quality Rated and CCS licensing were completed.

CAPS enrollment and payments will be based on the following:

The date that both the Quality Rated requirements and CCS licensing requirements are met.
Once the new owner receives their permit, temporary license, or continuing license by CCS, the seller is no longer able to provide care or receive CAPS payments.
CAPS payments received by the seller prior to the issuance of the permit, temporary license, or continuing license should be handled by negotiation between the buyer and the seller.

For specific information about the Childcare and Parent Services (CAPS) program visit www.CAPS.decal.ga.gov.

Do you have a question about CAPS? Complete the CAPS Support Contact Form and we will review and respond to your request.

Nutrition – Change of Ownership Information

CACFP programs cannot be transferred. New owners will need to apply for CACFP by applying to participate directly with DECAL or by applying to participate with an approved Sponsor.

To become a CACFP participant under direct agreement with DECAL, an eligible center must:

Attend 2-day Program Training and obtain access to the online application.
Submit a completed application and supporting documents to DECAL.
Operate the CACFP and maintain the required documentation for at least one month.
Have a satisfactory pre-operative visit performed.

To register for training, contact 404-657-1779.

New owners that wish to participate in the CACFP under the sponsorship of an approved Administrative Sponsor can obtain a list of approved sponsors by using the "Search for Nutrition Programs" on the DECAL website or by clicking here: https://www.decal.ga.gov/Nutrition/Search.aspx. Choose the Program type, and then select Sponsor Type and click Search. A list of Administrative Sponsors will populate. Sponsors will provide pre-approval training and application materials.

Finance Requirements for Georgia’s Pre-K and USDA CACFP Programs

For new owners who have been approved for a Georgia’s Pre-K classroom transfer and/or those who intend to be a sponsor in the Child and Adult Care Feeding Program (CACFP) must complete and submit a Supplier (Vendor) Change Request Form and a Taxpayer Identification Number (TIN) Verification Form to complete the state’s payment verification process. Completion of this process will ensure that payments are made by electronic disbursements to vendor bank accounts via the Automated Clearing House (ACH). To establish electronic payments, banking information is required from vendors. In addition, these forms will ensure that payment is made to the entity who owns the Child Care Learning Center license and is entitled to the benefit of each program.