HB2189: Home care organizations; proof of initial reserve operating funds.
HOUSE BILL NO. 2189
Be it enacted by the General Assembly of Virginia:
1. That 32.1-162.9 of the Code of Virginia is amended and reenacted as follows:
32.1-162.9. Licenses required; renewal thereof.
A. No person shall establish or operate a home care organization without a license issued pursuant to this article unless he is exempt from licensure pursuant to 32.1-162.8. No license to establish or operate a home care organization shall be issued to any person who has been sanctioned pursuant to 42 U.S.C. 1320a-7b.
B. The Commissioner shall issue or renew a license to establish or operate a home care organization upon application therefor on a form and accompanied by a fee prescribed by the Board if the Commissioner finds that the home care organization is in compliance with the provisions of this article and regulations of the Board, unless the Commissioner determines that no reciprocal agreement for the licensing of home care organizations has been entered into by the Commonwealth with the state in which the applicant resides or with the state in which the applicant's home care organization is licensed to operate. The Commissioner shall not issue or renew a license to establish or operate a home care organization to any applicant who has been sanctioned pursuant to 42 U.S.C. 1320a-7b.
C. Every applicant for an initial license to establish or operate a home care organization shall include as part of his application proof of initial reserve operating funds in an amount determined by the Board, which shall be sufficient to ensure operation of the home care organization for the six-month period after a license to operate has been issued. Such funds may include cash, cash equivalents that are readily convertible to known amounts of cash and that present insignificant risk of change in value, borrowed funds that are immediately available to the applicant, or a line of credit that is immediately available to the applicant. Proof of funds sufficient to meet the requirements of this subsection shall include a current balance sheet demonstrating availability of cash or cash equivalents, including all borrowed funds, sufficient to meet the requirement for initial reserve operating funds together with a letter from the officer of the bank or other financial institution where the funds are held or from a certified public accountant certifying the accuracy thereof, or a letter of credit from a lender demonstrating the current availability of a line of credit and the amount thereof.
D. Every such license shall expire on the anniversary of its issuance or renewal.
D. E. The
activities and services of each applicant for issuance or renewal of a home
care organization license shall be subject to an inspection or examination by
the Commissioner to determine if the home care organization is in compliance
with the provisions of this article and regulations of the Board.
E. F. No
license issued pursuant to this article may be transferred or assigned.