Our recent article “Caregiver Agencies Must Comply with Home Care Services Consumer Protection Act or Cease Operation” provided an overview of this new California law, effective January 1, 2016.
The Act defines “home care organizations” (HCOs) as any individual, 18 years of age or older, or any business entity that arranges for home care services by an affiliated home care aide (HCA) to a client. Non-compliance with the Act requires an HCO to shut down.
The Act requires all HCOs to take two vital actions by March 1, 2016:
• HCO Application for Licensing: All HCOs must submit their applications for licensing along with the $5,165.00 fee with the new Home Care Services Bureau (Bureau) by March 1, 2016. The required forms include: (1) Application for a Home Care Organization License; (2) Licensee Applicant Information; (3) Designation of Home Care Organization Responsibility; (4) Company Organization Structure; (5) Employee Dishonesty Bond; (6) Criminal Record Statement; and (7) Board of Directors Statement. An HCO must also submit supplemental documents concerning its organization, job descriptions, policies, training plan, program description, and insurance.
• Applications for Home Care Aides Registration: The Bureau’s FAQ on the Act states that it requires HCOs to employ all affiliated home care aides (HCAs). (HCOs thus may not utilize independently contracted HCAs). The Act requires all such employed HCAs to be registered with the Bureau. For each HCA it currently employs, an HCO must submit the registration application along with the $25.00 fee by March 1, 2016. The required forms include: (1) Application for Home Care Aide Registration; (2) Criminal Record Statement; and (3) LiveScan fingerprints request. There is a separate LiveScan fee. See also: our article “Home Care Aides Must Register With New State Agency No Later Than March 1, 2016.”
An HCO must obtain its license and complete the registration process for all of its HCAs by July 1, 2016. The state may impose fines of $900/day and bring criminal misdemeanor charges for non-compliance.
Our office is educating and assisting home care organization owners on the requirements of this new law. We are also advising clients on the formation and structure of domestic referral agencies, an alternate business model currently exempt from the Act. Contact Tim Bowles, Cindy Bamforth, or Helena Kobrin for more information.
Helena Kobrin, February 19, 2016Back to Blog
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