DAR File No. 39334

Human Services, Administration, Administrative Services, Licensing

Rule R501-1

General Provisions

Notice of Proposed Rule

(Amendment)

DAR File No.: 39334
Filed: 05/01/2015 11:15:49 AM

RULE ANALYSIS

Purpose of the rule or reason for the change:

The purpose of this amendment is to clarify fee collection processes at the Office of Licensing. Changes in wording more accurately reflect what the Office of Licensing believes S.B. 8 (2015 General Session), (and previous legislative fee collecting bills) always intended. It clarifies rule to ensure fees are being collected correctly according to statute. The Department of Human Services (DHS) legal and fiscal assessment of our fees indicates that the Office of Licensing needs to be clearly gathering an initial license fee on each type first-time license at a site. More clear rule language will help the Office of Licensing collect fees more consistently. Because the legislature increased the fees by 200% in 2015, it is critical that the language and fee collection practices are clear going forward.

Summary of the rule or change:

This rule primarily clarifies language in order to ensure consistent fee collection at the Office of Licensing. It clarifies special circumstances such as what happens if a change of ownership occurs, a licensed entity determines to relocate, and what constitutes an initial versus renewal license fee.

State statutory or constitutional authorization for this rule:

• Section 63J-1-504
• Section 62A-2-101
• Section 62A-2-106

Anticipated cost or savings to:

the state budget:

There is likely going to be an increase in fee collection (also known as increased state revenue) due to the clarification that each license type must pay an initial license fee regardless of how many license types may be being requested. Some fees will occur less frequently or at lower renewal rates due to the new wording, but on the whole it is estimated it will increase, not decrease, overall fees.

local governments:

There is likely going to be an increase in fees due to the clarification that each license type must pay an initial license fee regardless of how many license types may be being requested. Some fees will occur less frequently or at lower renewal rates due to the new wording, but on the whole it is estimated it will increase, not decrease, overall fees. Because the biggest change is in language about initial license fees, it will have little or no impact on the bulk of currently licensed entities because they are currently under the renewal fee rates. Only a small portion of licenses each year are actually initial, thus minimizing the effect of the wording changes. Some counties pay fees to the state for licensed facilities.

small businesses:

Small businesses may be marginally affected. There is likely going to be an increase in fees due to the clarification that each license type must pay an initial license fee regardless of how many license types may be being requested. This is especially true for new, initial licenses. Some fees will occur less frequently or at lower renewal rates due to the new wording, but on the whole it is estimated it will increase, not decrease, overall fees. Because the biggest change is in language clarifies initial language, it will have little or no impact on the bulk of currently licensed entities that are currently in a renewal fee status.

persons other than small businesses, businesses, or local governmental entities:

This will affect larger businesses/corporations similarly. There is likely going to be an increase in fees due to the clarification that each license type must pay an initial license fee regardless of how many license types may be being requested. Some fees will occur less frequently or at lower renewal rates due to the new wording, but on the whole it is estimated it will increase, not decrease, overall fees. Because the biggest change is in language about initial license fees, it will have little or no impact on the bulk of currently licensed entities because they are currently under the renewal fee rates. Only a small portion of licenses each year are actually initial, thus minimizing the effect of the wording changes.

Compliance costs for affected persons:

Nothing outside of the clarification of fee language is being changed in this amended rule. Compliance activities outside of fee payments remain unaltered.

Comments by the department head on the fiscal impact the rule may have on businesses:

It is not suspected that this rule change will significantly affect business. It will simply make more clear for the Office of Licensing and the public how fees are collected.

Ann Williamson, Executive Director

The full text of this rule may be inspected, during regular business hours, at the Division of Administrative Rules, or at:

Human Services
Administration, Administrative Services, Licensing
195 N 1950 W 1ST FLR
SALT LAKE CITY, UT 84116

Direct questions regarding this rule to:

• Julene Robbins at the above address, by phone at 801-538-4521, by FAX at 801-538-3942, or by Internet E-mail at jhjonesrobbins@utah.gov
• Diane Moore at the above address, by phone at 801-538-4235, by FAX at 801-538-4553, or by Internet E-mail at dmoore@utah.gov

Interested persons may present their views on this rule by submitting written comments to the address above no later than 5:00 p.m. on:

06/15/2015

This rule may become effective on:

06/22/2015

Authorized by:

Diane Moore, Director

R501. Human Services, Administration, Administrative Services, Licensing.

R501-1. General Provisions.

R501-1-1. Authority and Purpose.

1. This Rule is authorized by Section 62A-2-101, et seq.

2. This Rule clarifies the standards for:

a. approving or denying a human services program application, or

b. approving, extending, conditioning, denying, suspending, or revoking a human services program license.

3. This Rule clarifies the standards for inspecting, monitoring, and investigating a human services program.

4. This Rule clarifies the standards for approving or denying a variance to the Human Services Administrative Rules, Title R501, regarding the licensing of human services programs.

 

R501-1-2. Definitions.

1. "Applicant" means a person who submits an application to the Office of Licensing to obtain a license to operate a human services program.

[2. "Certified local inspector" is defined in Section 62A-2-101.

][3]2. "Child" is defined in Section 62A-2-101.

[4]3. "Client" is defined in Section 62A-2-101.

[5]4. "Human services program" is defined in Section 62A-2-101.

[6]5. "Initial License" means the license issued to operate a human services program during the program's first year of operation.

[7]6. "Licensee" means a person with a current, valid license to operate a human services program, issued by the Office of Licensing.

[8]7. "Local government" is defined in Section 62A-2-101.

[9]8. "Person" includes an individual, agency, association, partnership, corporation, or governmental entity.

[10]9. "Probationary License" means a temporary initial license issued to operate a new human services program during the period of time that the Office of Licensing designates for the program to transition from substantial compliance to full compliance with licensing requirements.

[11]10. "Regular business hours" is defined in Section 62A-2-101.

[12]11. "Residential Treatment" is defined in Section 62A-2-101.

[13]12. "Renewal License" means the license issued to operate a human services program after the program's first year of operation.

13. "Site" A human services program identified by a single geographic location, including but not limited to a single dwelling, building, facility, or campus.

14. "Substantial compliance" means a human services program presently conforms to all licensing requirements with the exception of minor requirements that do not create a risk of harm to a child or vulnerable adult. Examples of minor requirements that do not create a risk of harm to a child or vulnerable adult include, but are not limited to, individual staff or client files in a residential treatment program that has not yet provided services, individual staff or client files in a child placing agency that has not yet provided services, or completion of training in a kinship foster care placement.

15. "Variance" means a temporary deviation from an administrative rule.

16. "Vulnerable Adult" is defined in Section 62A-2-101.

 

R501-1-3. Licensing Procedure.

1. Application for Initial License.

A person seeking an initial license to operate a human services program shall submit:

a. an application on the forms provided by the Office of Licensing;

b. the licensing fee required [of a new program ]for the category of human services program license sought;

c. a completed background screening application and consent form, and all required identifying information, in accordance with R501-14, for each adult associated with the proposed human services program;

d. the applicant's proposed policy and procedure manual;

e. documentation verifying compliance with all local government zoning, health, fire, and business requirements; and

f. for residential treatment programs, a copy of the notice of its intent to operate a residential treatment program and proof of service, in accordance with Section 62A-2-108.2.

2. Application for Renewal License.

A person seeking renewal of a license to operate a human services program shall submit:

a. an application on the form provided by the Office of Licensing;

b. the licensing fee required for the category of human services program;

c. verification of current background screening approval, in accordance with R501-14, for each adult associated with the human services program;

d. a copy of all modifications that have been made to the licensee's policy and procedure manual since the previous year's licensure;

e. documentation verifying current compliance with all local government zoning, health, fire, and business requirements; and

f. for residential treatment programs, a copy of the notice of its intent to operate a residential treatment program and proof of service, in accordance with Section 62A-2-108.2.

g. the application for renewal of a license shall be submitted no less than thirty days and no more than sixty days prior to the expiration date of the current license.

3. An application and required documentation that are not legible, complete, dated and signed shall be returned to the applicant without further action.

4. On-Site Licensing Review

a. An applicant for an initial license shall permit the Office of Licensing to conduct an unlimited on-site evaluation of the physical facility and grounds, and to interview persons associated with the proposed program to verify compliance with all licensing requirements.

i. The Office of Licensing shall approve an application for an initial human services program license only after verifying full compliance with all licensing requirements.

ii. The Office of Licensing may approve a probationary license only after verifying substantial compliance with licensing requirements.

A. The Office of Licensing shall include an expiration date on a probationary license, which shall not exceed 6 months from the date of issue.

B. A probationary licensee that fails to achieve full compliance with licensing requirements prior to the expiration of the probationary license shall not be granted an extension, and shall not accept any fees, entering any agreements to provide client services, or provide any client services.

C. A probationary licensee that is not granted an initial license may submit a new application for an initial license 3 months after the expiration of the probationary license.

iii. The Office of Licensing shall deny an application for an initial human services program license when substantial compliance with all licensing requirements cannot be verified.

iv. The Office of Licensing shall permit an applicant for an initial human services program license to withdraw the application at any time prior to denying the application when an applicant requests additional time to demonstrate compliance with all licensing requirements.

[A. An application that has been voluntarily withdrawn by an applicant may be resubmitted, within six months of the date of withdrawal, for reconsideration without payment of additional fees.

]b. The Office of Licensing shall conduct a minimum of one annual on-site review of each human services program site.

i. The Office of Licensing shall approve an application for a human services program license renewal only after verifying full compliance with all licensing requirements.

ii. The Office of Licensing shall deny an application for a human services program license renewal when full compliance with all licensing requirements cannot be verified.

iii. The Office of Licensing may extend the current license of a human services program in accordance with this rule.

A. A renewal license may be extended for up to sixty days past the current license expiration date if the Office of Licensing determines that the human services program is in substantial compliance with licensing requirements.

B. A notice of extension shall identify the extension expiration date and the requirements that the human services program must comply with to achieve full compliance.

C. A human services program that fails to achieve full compliance with licensing requirements prior to the expiration of the extension shall not be granted additional extensions.

D. The Office of Licensing shall deny the renewal application of a human services program that fails to achieve full compliance with licensing requirements prior to the expiration of an extension.

c. The Office of Licensing shall complete a written monitoring report or a checklist identifying areas of compliance and non-compliance with licensing requirements after each on-site review.

5. The license shall state the name and site address of the human service program facility, category of service, maximum consumer capacity, and the start date and expiration date.

6.a. A license that has expired is void.

b. A license expires at midnight one year after the date it was issued, unless:

i. the license states an earlier expiration date;

ii. the license has been extended in accordance with this rule;

iii. the license has been revoked by the Office of Licensing; or

iv. the license has been relinquished to the Office of Licensing by the licensee.

7.a. A licensee shall not exceed the licensed maximum client capacity indicated on the license issued by the Office of Licensing.

b. A licensee seeking to increase the maximum client capacity of a license shall submit an application for a renewal license in accordance with this rule.

[8.a. A licensee shall not provide client services at a new site or change the services it provides without first obtaining a new license issued by the Office of Licensing.

b. A licensee seeking to change a human services program's site address or services provided shall submit an application for a new license in accordance with this rule.

][9]8. A person with an expired license wishing to operate a human services program shall submit an application for a new license in accordance with this rule.

[10. A license is deemed void when the human services program has a change of ownership, management, administration, policies, or site address.

a. A human services program that has a change of ownership or management shall apply for a renewal license in accordance with this rule.

b. A human services program that has a change of administration, policies, or site address shall apply for an initial license in accordance with this rule.

]9. A license is deemed void when the human services program has a change of location unless the program obtains prior written approval of the relocation of their license:

a. Relocation can only occur when an existing program is moving to a new location with no change of license type, ownership, or substantial policy or service changes. Relocation does not mean adding an additional site to a currently licensed program.

b. A human services program, excluding foster care, that intends to relocate to a new site may have their license transferred to the new site only after:

i. payment of renewal fees;

ii. request to relocate submitted to the Office of Licensing at least 30 days prior to the move;

iii. Office of Licensing inspection and approval of licensure at the new site.

c. A foster home that intends to relocate to a new site may have their license transferred to the new site only after:

i. request to relocate submitted to the Office of Licensing at least 30 days prior to the move;

ii. Office of Licensing inspection and approval of licensure at the new site within two weeks if foster children are placed, and within 30 days if there are no current foster placements. If foster children are placed, it is the responsibility of the licensed foster parent to ensure health and safety of the foster child pending transfer to the new site.

10. No clients may be present and no services may be provided at a relocation site until after all requirements of 9 above have been met, with the exception of currently placed foster children.

11. A human services program that has a change of ownership shall submit to the Office of Licensing updated documentation in advance of the transfer of ownership, including but not limited to proof of continued insurance, updated organization chart, and business license. Failure to do so will result in a revocation of the license/s.

 

R501-1-4. Fees.

1. The Office of Licensing shall assess and collect licensing fees in accordance with Sections 62A-2-106 and 63J-1-[303]504.

a. A[n assessed] fee shall not be transferred, prorated, reduced, waived, or refunded.

b. No licensing fee shall be assessed on a foster home or on a Division of the Department of Human Services.

c. An initial application fee will expire after 12 months if an initial or probationary license has not been issued in that timeframe.

2. The Office of Licensing [shall not perform]is not required to perform an on-site review until the applicant pays the assessed licensing fee in full.

3. Separate initial license fees shall be assessed for each initial category of human services program license offered at a program site.

[3]4. Separate renewal license fees , plus any applicable capacity fees, shall be asses for each license category that is renewed at a program site.

a. [Fees]Renewal fees shall be calculated according to the maximum licensed client capacity of the human services program, and not according to the number of clients served in the program.

[a. A human services program with a valid, current license that intends to increase its maximum licensed client capacity shall submit an application for a renewal license and shall be assessed a renewal application fee according to the increased maximum client capacity.

]b. A human services program with a current license that intends to increase its maximum licensed capacity shall submit an application and fee for a renewal license. The fee shall include the capacity charges for the new total maximum licensed capacity.

[4. Fees shall be assessed for each program site of a human services program.

] [a]5. A human services program with more than one building, unit, or suite at one site may [choose]request to have its fees assessed and licenses/s issued:

[i]a. so that [one]each category of license will be issued [for each on-site building]to include all on-site buildings, units, or suites; or

[ii]b. so that [one]each category of license will be issued for each [site.] individual on-site building, unit, or suite.

[b. A human services program with a valid, current license that intends to provide services at an additional site shall submit an application for an initial license at the additional site.

i. A human services program with a valid, current license that proposes to provide identical services at additional site shall be assessed a renewal application fee.

ii. A human services program with a valid, current license that will not provide identical services at an additional site shall be assessed an initial application fee.

5. Fees shall be assessed for each category of human services program offered at a program site.

a]6. A human services program with a [valid, ]current license that intends to provide additional services at the currently licensed site shall submit an application and fee for [a renewal]an initial license[and shall be assessed a renewal application fee].

 

R501-1-5. Monitoring.

1. The Office of Licensing shall investigate reports of unlicensed human services programs.

a. An unlicensed human services program that fails to submit an application and become licensed shall be referred to the Offices of the Attorney General and the appropriate County Attorney for prosecution.

2. The Office of Licensing shall investigate complaints regarding a licensed human services program.

a. A certified local inspector may investigate complaints regarding a residential treatment program in accordance with Section 62A-2-108.3 and R501-4

3. Unannounced administrative inspections may be conducted during regular business hours.

4. The Office of Licensing shall document violations of administrative rules or statutes

5. The Office of Licensing shall provide written notification to the human services program of violations of administrative rules or statutes and any sanctions imposed.

 

R501-1-6. Corrective Action Plans.

1. The Office of Licensing may require a human services program to submit a written corrective action plan in response to a written notification of its violations of administrative rules or statutes.

2. A human services program shall submit a written corrective action plan to the Office of Licensing within ten calendar days of receiving written notification of its violations of administrative rules or statutes.

3. The written corrective action plan shall include the following:

a. a statement of each violation as identified by the Office of Licensing,

b. a detailed description of how the human services program will correct each violation and prevent additional violations of administrative rules or statutes;

c. the date by which the human services program will achieve complete compliance with administrative rules or statutes; and

d. the signature of all owners and managers of the human services program.

4. The Office of Licensing shall issueIa Notice of Agency Action imposing sanctions for a human service program's violations of administrative rules or statutes if the program fails to submit a written corrective action plan in compliance with this rule.

5. The Office of Licensing shall review the submitted written corrective action plan and:

a. inform the human services program that the written corrective action plan is approved; or

b. inform the human services program that the written corrective action plan fails to satisfy the requirements of this rule.

i. The Office of Licensing may permit a human services program to amend its written corrective action plan within 5 additional calendar days to satisfy the requirements of this rule.

6. The Office of Licensing shall issue a Notice of Agency Action imposing sanctions for a human services program's violations of administrative rules or statutes if the program fails to comply with a written corrective action plan approved by the Office of Licensing.

7. A human services program shall post each approved corrective action plan and each Notice of Agency Action where it can be easily reviewed by clients, parents or guardians of clients, and visitors.

a. Each approved corrective action plan and each Notice of Agency Action shall remain posted until the Office of Licensing issues written confirmation that the program has achieved compliance with administrative rules and statutes.

 

R501-1-7. License Violation.

1. An applicant shall not accept any fees, enter any agreements to provide client services, or provide any client services until after receiving written confirmation that the Office of Licensing has approved and issued a license to provide those services.

2. The Office of Licensing may exercise its professional judgment and deny, condition, suspend, or revoke a license for any violation of the administrative Rules or local, state, or federal law.

3. The Office of Licensing shall issue a written notice of agency action when a license sanction is imposed. The notice of agency action shall identify each violation and describe the factual basis underlying each violation.

4. The Office of Licensing may place a license on conditional status. A conditional status allows a program that is in the process of correcting administrative rule violations to continue operation subject to conditions established by the Office of Licensing.

5.a. A human services program that has had its license suspended is prohibited from providing any services to clients until after the suspension period has expired.

b. A human services program that has had its license expire during the suspension period shall be required to submit an application for an initial license after the suspension period has expired and obtain a new license prior to providing any services to clients.

6. A human services program that has had its license revoked is prohibited from providing any services to clients until after a new license is issued in accordance with Section 62A-2-113.

 

R501-1-8. Due Process.

1. A notice of agency action shall inform the applicant or licensee of the right to appeal in accordance with Administrative Rule 497-100 and Section 63G-4-101, et seq.

2. A licensee shall not accept any new clients while an appeal is pending.

 

R501-1-9. Variances.

1. A licensee shall not deviate from any administrative rule without first receiving written approval of a specific variance request signed by the Director of the Office of Licensing or the Director's designee.

2. The Director of the Office of Licensing, or the Director's designee, may grant a variance to the administrative rules of the Office of Licensing, if the Director or the Director's designee determines that a variance:

a. is in the best interests of the client; and

b. may be granted without compromising any health and safety requirements.

3. The licensee must submit a written request for a variance to the licensing specialist. A request for a variance shall specifically describe:

a. the rule for which the variance is requested;

b. how the licensee will ensure the best interests of the client will be maintained;

c. what procedures will be implemented to ensure the health and safety of all clients; and

d. the proposed variance expiration date.

4. The licensing specialist shall review the written request for a variance and forward it to the Director or the Director's designee together with the licensing specialist's recommendations to approve, approve with modifications, or deny the request.

5. The Office of Licensing shall notify the licensee of the approval, approval with modifications, or denial of the variance, in writing, within 30 days.

 

R501-1-10. Abuse or Neglect, or Exploitation.

1. The Office of Licensing shall immediately notify the appropriate investigative or law enforcement agency of any allegations or evidence of abuse, neglect, or exploitation of any child or vulnerable adult.

 

R501-1-11. Compliance.

Any licensee that is in operation of the effective date of this rule shall be given 30 days after the effective date to achieve compliance with this rule.

 

KEY: licensing, human services

Date of Enactment or Last Substantive Amendment: [October 18, 2005]2015

Notice of Continuation: October 18, 2012

Authorizing, and Implemented or Interpreted Law: 62A-2-101 et seq.