Proposed Changes to the “Change of Ownership Regulations” May Benefit Colorado ALRs

Colorado ALR owners may be interested to know that changing a “for profit” business structure to a “non-profit” (or vice-versa) soon will no longer be treated as a change of ownership. A recent review of the CDPHE regulations by the Office of Legislative Legal Services (OLLS) has identified this change as necessary to ensure the regulations are consistent with Colorado State Law.

These changes will eliminate 6 CCR 1011-1 Chapter 2, Section 2.6.2(E) items (2) and (3), copied below:

(2) The conversion of a non-profit to a for-profit organization is considered a change of ownership.

(3) The conversion of a for-profit organization to a non-profit is considered a change of ownership. 

As Colorado ALRs look for ways to maintain solvency in the face of challenging times, a nonprofit business structure might help. Talk to your CPA about the potential tax benefits, and give us a call, or talk to your attorney to discuss the process of changing business structure.

The Colorado Board of Health is expected to make this change at its next rulemaking on December 16, 2020 at 10:00 A.M. There are also several important changes to Chapter 7 regulations under consideration at this rulemaking that you may wish to listen for.

You can register to attend the online hearing here.