Section 1240-07-10-.05 - PROCEDURES FOR OBTAINING A LICENSE(1) When an individual or group is giving consideration to opening an adult day services center, the individual or group shall contact the local licensing office of the Department of Human Services.(2) Pre-Application Training. (a) Prospective applicants for a new license shall attend a pre-application meeting provided by the Department that covers an overview of adult day services operation issues for consideration in determining whether to apply for a license. This training shall include components on interviewing and evaluating caregivers for service in the agency.(b) In the case of a program that is governed by a board of directors or trustees, this meeting shall be attended by the center's director. If the prospective applicant is not responsible for the day-to-day management of the program, this meeting shall be attended by both the prospective applicant and the director responsible for the day to day management of the adult day services center.(c) At the discretion of the Department, pre-application training may be waived for applicants/licensees that have already completed the training through an earlier licensing process. Any waiver of this requirement must be documented and confirmed in writing.(3) In addition to the meeting required in subparagraph (2)(a) above, all new directors shall attend, within six (6) months prior to issuance of the license, an orientation session provided by the Department which covers, at a minimum, the laws and rules governing adult day services. In the case of a program that is governed by a board of directors or trustees, this training shall be attended by a licensee or onsite director who is responsible for the day-today management of the program.(4) Issuance of a temporary license to new adult day services centers shall require: (a) An Application. 1. A completed application form signed by the owner or the owner's authorized representative and all application documentation as required by the Department.2. In order to be considered complete, an application must be accompanied by the annual application fee.(b) Payment of Applicable Licensing Fees.1. Licensing fees must be submitted by certified check, business check, government agency check, money order, or electronic payment method if available through the Department.2. Current license application fees are maintained on the Department's website.(c) Any adult day services center operated under a grant from the Department by a public, nonprofit or local municipality and which pays an administrative fee as part of the monitoring requirements of such grant shall be exempt from the licensure fee.(d) Business Organization Documentation. 1. The business organization of every adult day services center shall be such that legal and administrative responsibility for the center is clearly defined.2. Documentation of the center's business organization shall be made in the form and manner directed by the Department. The application shall include copies of the business organization filings with the Tennessee Secretary of State Division of Business Services, as applicable.(e) Verifications. Approval of a temporary license shall include verification that:
1. The administrative structure of the center, as required by 1240-07-10-.05, appropriately identifies and provides structures and procedures for the full-time management of the center;2. The qualifications for management positions fully comply with the requirements in 1240-07-10-.12;3. Three (3) satisfactory non-relative references for the applicant have been checked for validity and that the reference responses are favorable and have been documented (if applicable one of the references shall be from the previous employment);4. The physical facilities have received, within the previous sixty (60) days, fire safety, environmental, and any necessary food establishment approval as required by the state, municipal, and or county government reflecting the capacity of the center;5. The on-site director, all persons working with the participant enrolled in the adult day services center as required by T.C.A. § 71-2-403, owner/operators, and employees who make regular onsite visits to a center, have completed: (i) A criminal, juvenile, and perpetrator disclosure form;(ii) A fingerprint-based criminal and available juvenile records review;(iii) A review of the state sex offender registry;(iv) A review of the vulnerable persons' registry; and(v) A review of abuse and neglect perpetrator records for the Departments of Children's Services and Human Services. Such reviews demonstrate that the director and all other staff required by T.C.A. § 71-2-403 have no criminal, juvenile, registry or administrative records that would cause the person to be excluded from providing care to participants as prohibited by T.C.A. § 71-2-403 and these rules;
6. The applicant and the personnel who will care for the participant are capable in all substantial respects of caring for the participant;7. The applicant has the ability and intent to comply with the licensing law and regulations;8. After appropriate on-site inspection by the Department, the site is suitable for adult day services activities and does not endanger the welfare or safety of the participant;9. The applicant, owner, director, or an employee of the center has not previously been associated in an ownership or management capacity with any adult day services center that has been cited by the Department for violations of this part or the Department's regulations, including the center for which the application is pending, unless the Department determines that a reasonable basis exists to conclude that such individual is otherwise qualified to provide adult day services; and10. The criteria in 1240-07-10-.04 support the issuance of a restricted or unrestricted license.11. General liability insurance coverage shall be maintained on the operations of the facilities in a minimum amount of five hundred thousand dollars ($500,000) per occurrence and five hundred thousand dollars ($500,000) general aggregate coverage.(5) Denial or Restriction of the Temporary License.(a) If the Department determines that any of the requirements set forth in this chapter have not been, or cannot be met, it may deny the application for a temporary license.(b) If the Department determines that the conditions of the applicant's facility, its methods of care or other circumstances warrant, it may issue a restricted license that permits operation of an adult day services center, but limits the center's authority in one (1) or more areas of operation.(c) Appeals of the denial or restriction of a license are governed by 1240-07-10-.16, Licensing Violations/Due Process.(6) Terms of the Temporary Licensure Period.(a) The temporary license shall remain in effect, unless suspended, for a period of six (6) months, or until such time as the Department grants or denies the application for an initial annual license, whichever is later. The Department may extend the period of the temporary license for an additional six (6) months if the Department determines that the applicant has made substantial progress in meeting the requirements of the law and regulations for an initial annual license.(b) During the six (6) month temporary licensure period the licensee must attain and maintain compliance with all applicable licensing regulations. Failure to attain and maintain such compliance during this period may result in the denial of the application for an Annual License or restriction of the Annual License.(7) Evaluation Process for an Annual License during the Temporary Licensing Period. (a) The temporary license is issued to authorize the temporary licensee to begin adult day services operations while the adult day services center demonstrates full compliance with all applicable licensing laws and regulations before the issuance of an annual license.(b) Department receipt of a complete application, including all necessary documentation, and the required fee for an adult day services center license begins the evaluation process which is completed with the issuance or denial of a license. This process includes:1. A minimum of two (2) visits to the adult day services center during the temporary licensing period, at least one (1) of which shall be unannounced;2. At least one (1) observation of the caregiver's interaction with participants during the temporary licensing period;3. Satisfactory review of center, staff, and participant records; and4. Satisfactory completion of an evaluation checklist, itemizing requirements and noting compliance or noncompliance, a copy of which is left with the applicant.(c) During the temporary licensing period, the applicant shall provide verification, including any required supporting documentation as directed by the Department, of compliance with all applicable licensing regulations and the applicant shall otherwise meet, and continue to meet, all the requirements set forth in parts (b)1.-4. above.(8) The Annual License Determination.(a) The Department shall determine whether a license or restricted license shall be issued to the applicant or be denied. The temporary license shall remain in effect, unless suspended or revoked, pending the Department's determination.(b) The Department shall issue a license if the Department determines that the applicant has fully complied with all laws and regulations governing the adult day services center for which the application was made.(c) If the Department determines that any of the requirements set forth in this chapter has not been, or cannot be, satisfactorily met, it may deny the license.(d) If the Department determines that the conditions of the applicant's facility, its methods of care or other circumstances warrant, it may issue a restricted annual license that permits operation of an adult day services center, but limits the center's authority in one (1) or more areas of operation.(e) Upon issuance of an annual license, the licensee must maintain compliance with all applicable licensing regulations throughout the licensing period.(9) Renewal Evaluation Process. (a) Centers currently licensed by the Department must submit an application for renewal not less than thirty (30) calendar days prior to the expiration of the existing license. Failure to submit a completed application, including the required annual licensing fee prior to the expiration of the current license shall result in the expiration of the license upon the expiration date, and the adult day services center shall cease operations immediately. Centers may initiate a new application process if the center fails to meet the thirty (30) calendar day deadline.(b) The Department shall issue a new license upon demonstrations of compliance with all laws and regulations governing adult day services centers, and, if the applicant has demonstrated a reasonable probability, based on an evaluation of any violations cited or legal enforcement action taken against the center during the entire licensing period, that the applicant will maintain compliance with all licensing regulations during the annual license period.(c) If the Department determines that any of the requirements set forth in this chapter has not been, or cannot be, satisfactorily met, it may deny the annual license.(d) If the Department determines that the conditions of the applicant's facility, its methods of care or other circumstances warrant, it may issue a restricted license that permits operation of an adult day services center, but limits the center's authority in one (1) or more areas of operation.(10) In order to be considered complete, an application must be accompanied by the license application fee.(11) Transfer of License. (a) A license is not transferable from one location to another or from one licensee/operator to another.(b) Any sale, lease or transfer of control of the adult day services center by any other arrangement to another person, entity, licensee or operator voids the existing license immediately and any pending appeal involving the denial or revocation of the license, and the center shall be required to close immediately unless the buyer, lessee or transferee has made application for, and has been granted a temporary license. In that case, the center may continue in operation under the direction of the new licensee. The new licensee in such circumstances may not be the seller, lessor or transferor or any person or entity acting on behalf of the transferor.(c) If the Department determines that any person or entity has transferred nominal control of a center to any persons or entities who are determined by the Department to be acting on behalf of the purported seller, lessor or transferor in order to circumvent a history of violations of the licensing law or regulations or to otherwise attempt to circumvent the licensing law or regulations or any prior licensing actions instituted by the Department, the Department may deny the issuance of any license to the applicant. The denial of the license may be appealed as provided in T.C.A. §§71-2-408-409 and 1240-07-10-.04; 1240-07-10-.16.(d) The license of any center shall not be voided nor shall any pending appeal be voided pursuant to this subparagraph (c) solely for the reason that the center is subject to judicial orders directing the transfer of control or management of an adult day services center or its license to any receiver, trustee, administrator or executor of an estate, or any similarly situated person or entity.(e) If the current licensee dies, or becomes incapacitated, and provided that no licensing violations require the suspension, denial or revocation of the center's license, the Department may grant family members of the licensee, or administrators or executors of the licensee, a new temporary license to continue operation for a period of six (6) months. At the end of such period, the Department shall determine whether an annual or extended license should be granted to a new licensee as otherwise provided in this chapter.(f) Nothing in this paragraph (12) shall be construed to prevent the Department from taking any regulatory or judicial action as may be required pursuant to the licensing laws and regulations that may be necessary to protect the participant in the care of such center.Tenn. Comp. R. & Regs. 1240-07-10-.05
Original rule filed December 14, 1999; effective 2/27/2000. Repeal and new rule filed February 23, 2018; effective 5/24/2018. Amendments filed October 25, 2022; effective 1/23/2023.Authority: T.C.A. §§ 4-5-201, et seq.; and 71-2-401, et seq.