Referral AgenciesGeneral Provisions
Section § 1400
This law makes it illegal for people or organizations to operate a referral agency or refer people to long-term care facilities, like nursing homes, for payment unless they have a license from the director or an approved inspection service. If a long-term care facility refers people to outside services it doesn't provide, like lab or therapy services, it must follow federal and state laws and ensure the services meet professional standards. The facility is responsible for making sure services are timely, only provided when a doctor orders them, and documented in the patient's medical record.
Section § 1401
This law defines what a 'referral agency' is. It's a private organization, either for-profit or nonprofit, that makes money by directing people to facilities like extended care, skilled nursing homes, or intermediate care facilities.
Section § 1403
If you're applying for a new license or renewing an existing one in this program, you must pay a yearly fee as determined by another rule. Licenses are valid for 12 months and you need to submit your renewal application and fee at least 30 days before your license expires.
Section § 1404
If you hold a license under this chapter, you can't have any financial ties, either directly or indirectly, with any medical facility that you do business with. Essentially, you can't own a part of or make money from a medical facility that you are involved with as a licensee.
Section § 1404.5
If a referral agency experiences a change in ownership, name, or location, they must submit a license application to the relevant department. This ensures that the department is always updated with current information about the agency.
Section § 1405
If you want a license to run a referral agency in California, you need to fill out an application from the health department. This application must include details like your name and age if you're an individual, the agency's name and address, and your work history over the last two years. You'll need to disclose if you've run a referral agency before or had any related legal issues. Corporations must also list their officers and directors, while partnerships must name all partners. You must show evidence you can use the location where the agency will operate, provide legal documents like incorporation papers if needed, and include an organizational chart. Also, you'll need to detail your fee structure and state that you don't have financial ties to any health facility working with the agency. Lastly, you must prove you're of good character and capable of following the law.
Section § 1406
This law states that local public agencies offering free referral services to people receiving public social services are not covered by this chapter, as long as those services are allowed by other laws.
Section § 1407
If someone with a professional license in California wants to cancel or temporarily suspend their license, they must notify the relevant department in writing at least 30 days before doing so.
If a license is temporarily suspended, it can be reinstated within a year if the individual applies and shows they meet the necessary requirements.
Section § 1408
If you apply for a license under this chapter and meet the requirements, the department will approve your application and issue the license. If you do not meet the requirements, your application will be denied.
In case of denial, the department will send you a written notice. You have 20 days after receiving this notice to request a hearing by submitting a petition. The hearing process follows the guidelines of another specific section, Section 100171.
Section § 1409
If a business operates referral agencies on different physical locations that aren't connected, each site needs its own license.
Section § 1409.1
This law requires that a license, or a true copy of it, must be displayed in a visible spot where the public can easily see it.
Section § 1409.2
This law states that any licenses given out under the specified article cannot be transferred to another person or entity.
Section § 1409.3
If you have a license and there's a change in who owns 10% or more of the company, you need to let the department know in writing within 10 days and provide the new owner's name and mailing address.
If you change who is managing your agency, tell the department in writing within 10 days and include the new manager's name.
If you change your mailing address, inform the department in writing within 10 days and include your new address.
If there's a change in your corporate leadership like the chairperson, president, or general manager, notify the department within 10 days with the new officer's name and business address.