Section § 1400

Explanation

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.

(a)CA Health & Safety Code § 1400(a) It is unlawful for any person, association, or corporation to establish, conduct or maintain a referral agency or to refer any person for remuneration to any extended care, skilled nursing home or intermediate care facility or a distinct part of a facility providing extended care, skilled nursing home care, or intermediate care, without first having obtained a written license therefor as provided in this chapter from the director or from an inspection service approved by the director pursuant to Section 1257.
(b)CA Health & Safety Code § 1400(b) It is unlawful for any person, association, or corporation to establish, conduct, or maintain a referral agency or to refer any person for remuneration to any person or agency outside a long-term health care facility, as defined in Section 1418, for professional services for which the long-term health care facility does not employ a qualified professional person to furnish a specific service, including, but not limited to, laboratory, diagnostic, or therapy services, unless the long-term health care facility complies with current federal and state laws regarding the provision of these services and all of the following conditions are met:
(1)CA Health & Safety Code § 1400(b)(1) The services will be provided in accordance with professional standards applicable to the provision of these services in a long-term health care facility.
(2)CA Health & Safety Code § 1400(b)(2) The long-term health care facility assumes responsibility for timeliness of the services.
(3)CA Health & Safety Code § 1400(b)(3) Services are provided or obtained only when ordered by the attending physician and a notation is made in the resident’s medical chart reflecting that the service has been provided to the resident.

Section § 1401

Explanation

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.

As used in this chapter “referral agency” means a private, profit or nonprofit agency which is engaged in the business of referring persons for remuneration to any extended care, skilled nursing home or intermediate care facility or a distinct part of a facility providing extended care, skilled nursing home care, or intermediate care.

Section § 1403

Explanation

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.

Each application for a license or renewal of license under this chapter shall be accompanied by an annual Licensing and Certification Program fee set in accordance with Section 1266. Each license shall expire 12 months from its date of issuance and application for renewal accompanied by the fee shall be filed with the director not later than 30 days prior to the date of expiration.

Section § 1404

Explanation

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.

No licensee under this chapter shall have a direct or indirect financial interest in any medical facility doing business with the licensee.

Section § 1404.5

Explanation

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.

A license application shall be submitted to the department whenever any of the following circumstances occur:
(a)CA Health & Safety Code § 1404.5(a)  Change of ownership of the referral agency.
(b)CA Health & Safety Code § 1404.5(b)  Change of name of the referral agency.
(c)CA Health & Safety Code § 1404.5(c)  Change of location of the referral agency.

Section § 1405

Explanation

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.

Any person, partnership, firm, corporation or association desiring to obtain a license shall file with the department an application on forms furnished by the department. The application shall contain all of the following:
(a)CA Health & Safety Code § 1405(a)  Name of applicant, and if an individual, whether the applicant has attained the age of 18 years.
(b)CA Health & Safety Code § 1405(b)  Name of referral agency.
(c)CA Health & Safety Code § 1405(c)  The location of the referral agency.
(d)CA Health & Safety Code § 1405(d)  The business or occupation engaged in by each applicant, and by each partner, officer and director, for at least two years immediately preceding the filing of the application. In addition, each such person shall submit a statement setting forth whether he or she has previously engaged in the operation of a referral agency, whether he or she has been involved in, or the subject of, a refusal or revocation of a referral agency license, and whether he or she has been convicted of a crime other than a minor traffic offense.
(e)CA Health & Safety Code § 1405(e)  If the applicant is a corporation, the name and principal business address of each officer and director of the corporation; and for nonpublic corporations, the name and business address of each stockholder owning 10 percent or more of the stock and the name and business address of any corporation member who has responsibility in the operation of the facility.
(f)CA Health & Safety Code § 1405(f)  If the applicant is a partnership, the name and principal business address of each partner.
(g)CA Health & Safety Code § 1405(g)  Evidence of the right to occupy the premises where the referral agency is to be located.
(h)CA Health & Safety Code § 1405(h)  A copy of the partnership agreement of the Articles of Incorporation, if applicable.
(i)CA Health & Safety Code § 1405(i)  A copy of the current organization chart.
(j)CA Health & Safety Code § 1405(j)  A schedule of fees to be charged and collected by the referral agency, and a statement of the method by which each fee is to be computed or determined.
(k)CA Health & Safety Code § 1405(k)  A declaration that the licensee will not have any financial interest in any health facility doing business with the referral agency.
( l)  Evidence satisfactory to the department that the applicant demonstrates reputable and responsible character and the capability to comply with this chapter.

Section § 1406

Explanation

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.

This chapter shall not apply to any local public agency performing referral services without cost to recipients of public social services when otherwise authorized by law.

Section § 1407

Explanation

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.

(a)CA Health & Safety Code § 1407(a)  Any licensee desiring to voluntarily surrender his or her license for cancellation or temporary suspension shall notify the department in writing as soon as possible and, in all cases, at least 30 days prior to the effective date of cancellation or temporary suspension of the license.
(b)CA Health & Safety Code § 1407(b)  Any license placed in temporary suspension pursuant to this section may be reinstated by the department within 12 months of the date of the voluntary suspension on receipt of an application and evidence showing compliance with licensing requirements.

Section § 1408

Explanation

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.

(a)CA Health & Safety Code § 1408(a)  Upon verification of compliance with this chapter and with the approval of the department, the department shall issue the license to the applicant.
(b)CA Health & Safety Code § 1408(b)  If the applicant is not in compliance with this chapter, the department shall deny the applicant a license. Immediately upon the denial of any license, the department shall notify the applicant in writing. Within 20 days of receipt of the department’s notice, the applicant may present his or her written petition for a hearing to the department. The proceedings shall be conducted in accordance with Section 100171.

Section § 1409

Explanation

If a business operates referral agencies on different physical locations that aren't connected, each site needs its own license.

Separate licenses shall be required for referral agencies which are maintained on separate, noncontiguous premises.

Section § 1409.1

Explanation

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.

The license or true copy thereof shall be conspicuously posted in a prominent location accessible to public view.

Section § 1409.2

Explanation

This law states that any licenses given out under the specified article cannot be transferred to another person or entity.

Licenses issued pursuant to this article are not transferable.

Section § 1409.3

Explanation

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.

(a)CA Health & Safety Code § 1409.3(a)  The licensee shall notify the department within 10 days in writing when a change of stockholder owning 10 percent or more of the nonpublic corporate stock occurs. The writing shall include the name and principal mailing addresses of the new stockholder.
(b)CA Health & Safety Code § 1409.3(b)  When a change of agency manager occurs, the department shall be notified in writing within 10 days by the licensee. The notification shall include the name of the new agency manager.
(c)CA Health & Safety Code § 1409.3(c)  Each licensee shall notify the department within 10 days in writing of any change of the mailing address of the licensee. The writing shall include the new mailing address of the licensee.
(d)CA Health & Safety Code § 1409.3(d)  When a change in the principal officer of a corporate licensee, chairperson, president, or general manager, occurs the department shall be notified within 10 days in writing by the licensee. The writing shall include the name and principal business address of the officer.