10.07.05.04

.04 Licensing Procedures.

A. Application for License.

(1) To obtain and maintain a license, an applicant shall meet all of the requirements of:

(a) This chapter; and

(b) Other applicable federal, State, and local laws and regulations.

(2) An applicant shall submit:

(a) An application on a written or electronic form developed by the Department;

(b) Verification that the applicant or corporate representative is 21 years old or older;

(c) Documentation of any prior denial, suspension, or revocation of a license or certification to provide care to third parties;

(d) Identification of any individual or corporate owner of a 25 percent or more interest in the agency;

(e) Ownership information as specified on an addendum to the application;

(f) Information concerning any license or certification held by the applicant under Health Occupations Article or Health-General Article, Annotated Code of Maryland, including prior or current operation of a similar health care program by the applicant;

(g) Disclosure of any criminal charges or convictions, and disclosure of any findings of violation of:

(i) Medicare and Medicaid laws and regulations;

(ii) Health-General Article, Annotated Code of Maryland; or

(iii) Health Occupations Article, Annotated Code of Maryland;

(h) Information demonstrating the financial or administrative ability to operate an agency in compliance with this chapter, which shall include at a minimum a business plan that contains a:

(i) 1-year operating budget;

(ii) Marketing plan that identifies the populations to be served; and

(iii) Detailed and specific description of agency services;

(i) Copies of the agency’s policies and procedures as specified in Regulation .08B of this chapter;

(j) Proof of Workers’ Compensation for all employees as required by the Maryland Workers’ Compensation Commission; and

(k) A nonrefundable license fee of $1,000 made payable to the Department for a 3-year licensing fee.

B. Additional Requirements for Initial Licensure.

(1) If the applicant, owner, or person identified in §A(2)(d) of this regulation has had their license suspended or revoked by the Department that person may not own, operate, or manage another agency for 10 years without good cause shown. After 10 years, the applicant shall submit evidence to the Department that the applicant is capable of owning, managing, or operating an agency within the laws and regulations.

(2) If an applicant, owner, or person identified in §A(2)(d) of this regulation operates or manages an agency, that applicant, owner, or individual may not apply to open additional agencies, if the agency:

(a) Has had sanctions imposed within the last 2 years; and

(b) Has not achieved compliance with the regulations at the time of application for licensure.

(3) The Department reserves the right to deny licensure for a residential service agency to an applicant, an owner, or an individual identified in §A(2)(d) of this regulation, based on that person’s prior:

(a) History of violations of residential service agency regulations; or

(b) Criminal history that the Department determines may be potentially harmful to clients.

C. The Department shall review all applications for licensure to determine whether the applicant:

(1) Can provide appropriate services to sick or disabled individuals who require care in the individuals’ residence; and

(2) Meets the regulatory requirements of this chapter.

D. In addition to any other rights of inspection, before approving or denying an application for licensure, the Department may conduct an announced or unannounced on-site inspection of the agency.

E. Based on information provided to the Department by the applicant, the Secretary shall:

(1) Approve the application unconditionally;

(2) Approve the application conditionally, which may include, among other conditions, requiring:

(a) The applicant to use the services of a management firm approved by the Secretary; or

(b) A licensure term of less than 1 year; or

(3) Deny the application.

F. The Secretary may not require the use of a management firm for a period in excess of 24 months.

G. A person aggrieved by a decision of the Secretary under this regulation to deny a license application may appeal the Secretary’s action by filing a request for a hearing consistent with Regulation .28 of this chapter.

H. Duration of License. A license is valid for 3 years from the date of issuance, unless:

(1) Surrendered, suspended, or revoked; or

(2) It is a provisional license as described in §J of this regulation.

I. License Renewal. A licensee shall submit to the Department:

(1) An application for license renewal on a written or electronic form developed by the Department;

(2) A nonrefundable license renewal fee of $1,000 made payable to the Department for a 3-year licensing fee;

(3) Copies of any policies and procedures that have changed substantively since they were previously reviewed by the Department, including those relevant to:

(a) Handling of complaints made to the agency; and

(b) Evaluation and assessment of clients;

(4) Valid professional licenses and certificates for all current employees; and

(5) An annual data collection survey in the form and manner prescribed by the Secretary with each application for license renewal.

J. Licenses for Less than 1 Year.

(1) The Department may issue a provisional license if:

(a) The agency intends to provide services limited to skilled nursing and home health aid services; or

(b) The residential service agency is not in full compliance with this chapter, but, in the opinion of the Department, the:

(i) Noncompliance does not constitute a safety or health hazard; and

(ii) Applicant or licensee has submitted a plan of correction that is acceptable to the Department which satisfactorily addresses the correction of each deficiency within a timeframe acceptable to the Department.

(2) A provisional license may not be extended beyond its expiration date.

K. If an agency fails to comply with the regulations of this chapter and the Department needs to conduct more than one on-site prelicensure visit, the Department may:

(1) Charge $250 per additional on-site visit; or

(2) Deny the license.