CHAPTER 4. LICENSURE OF PERSONAL SERVICES AGENCIES
IC 16-27-4
Chapter 4. Licensure of Personal Services Agencies
IC 16-27-4-1
"Client"
Sec. 1. As used in this chapter, "client" means an individual whohas been accepted to receive personal services from a personalservices agency.
As added by P.L.212-2005, SEC.18.
IC 16-27-4-2
"Parent personal services agency"
Sec. 2. As used in this chapter, "parent personal services agency"means the personal services agency that develops and maintainsadministrative and fiscal control over a branch office.
As added by P.L.212-2005, SEC.18.
IC 16-27-4-3
"Personal representative"
Sec. 3. As used in this chapter, "personal representative" meansa person who has legal authority to act on behalf of the client withregard to the action to be taken.
As added by P.L.212-2005, SEC.18.
IC 16-27-4-4
"Personal services"
Sec. 4. (a) As used in this chapter, "personal services" means:
(1) attendant care services;
(2) homemaker services that assist with or perform householdtasks, including housekeeping, shopping, laundry, mealplanning and preparation, and cleaning; and
(3) companion services that provide fellowship, care, andprotection for a client, including transportation, letter writing,mail reading, and escort services;
that are provided to a client at the client's residence.
(b) The term does not apply to the following:
(1) Incidental services provided by a licensed health facility topatients of the licensed health facility.
(2) Services provided by employers or membershiporganizations for their employees, members, and families of theemployees or members if the services are not the predominantpurpose of the employer or the membership organization'sbusiness.
(3) Services that are allowed to be performed by a personalservices attendant under IC 12-10-17.1.
(4) Services that require the order of a health care professionalfor the services to be lawfully performed in Indiana.
(5) Assisted living Medicaid waiver services.
(6) Services that are performed by a facility described inIC 12-10-15.As added by P.L.212-2005, SEC.18. Amended by P.L.141-2006,SEC.82.
IC 16-27-4-5
"Personal services agency"
Sec. 5. (a) As used in this chapter, "personal services agency"means a person that provides or offers to provide a personal servicefor compensation, whether through the agency's own employees orby arrangement with another person.
(b) The term does not include the following:
(1) An individual who provides personal services only to theindividual's family or to not more than three (3) individuals perresidence and not more than a total of seven (7) individualsconcurrently. As used in this subdivision, "family" means theindividual's spouse, child, parent, parent-in-law, grandparent,grandchild, brother, brother-in-law, sister, sister-in-law, aunt,aunt-in-law, uncle, uncle-in-law, niece, and nephew.
(2) A local health department as described in IC 16-20 orIC 16-22-8.
(3) A person that:
(A) is approved by the division of disability andrehabilitative services to provide supported living servicesor supported living support to individuals withdevelopmental disabilities;
(B) is subject to rules adopted under IC 12-11-2.1; and
(C) serves only individuals with developmental disabilitieswho are in a placement authorized under IC 12-11-2.1-4.
As added by P.L.212-2005, SEC.18. Amended by P.L.141-2006,SEC.83.
IC 16-27-4-6
License required; branch offices; fee; application; onsiteinspection; expiration; home health agency
Sec. 6. (a) To operate a personal services agency, a person mustobtain a license from the state health commissioner. A personalservices agency may not be opened, operated, managed, ormaintained or conduct business without a license from the statedepartment. Each parent personal services agency must obtain aseparate license.
(b) A parent personal services agency may maintain branchoffices that operate under the license of the parent personal servicesagency. Each branch office must be:
(1) at a location or site from which the personal services agencyprovides services;
(2) owned and controlled by the parent personal servicesagency; and
(3) located within a radius of one hundred twenty (120) milesof the parent personal services agency.
(c) A license is required for any personal services agencyproviding services in Indiana. An out-of-state personal services
agency must be authorized by the secretary of state to conductbusiness in Indiana and have a branch office in Indiana.
(d) Application for a license to operate a personal services agencymust be made on a form provided by the state department and mustbe accompanied by the payment of a fee of two hundred fifty dollars($250). The application may not require any information except asrequired under this chapter.
(e) After receiving a completed application that demonstratesprima facie compliance with the requirements of this chapter and thepayment of the fee required by subsection (d), the state departmentshall issue a license to the applicant to operate a personal servicesagency. The state department may conduct an onsite inspection inconjunction with the issuance of an initial license or the renewal ofa license.
(f) In the state department's consideration of:
(1) an application for licensure;
(2) an application for renewal of licensure;
(3) a complaint alleging noncompliance with the requirementsof this chapter; or
(4) an investigation conducted under section 7(a) of thischapter;
the state department's onsite inspections in conjunction with thoseactions are limited to determining the personal service agency'scompliance with the requirements of this chapter or permitting oraiding an illegal act in a personal services agency.
(g) Subject to subsection (e), when conducting an onsiteinspection, the state department must receive all documentsnecessary to determine the personal service agency's compliance withthe requirements of this chapter. A personal services agency mustproduce documents requested by the state department surveyor notless than twenty-four (24) hours after the documents have beenrequested.
(h) A license expires one (1) year after the date of issuance of thelicense under subsection (e). However, the state department mayissue an initial license for a period of less than one (1) year to staggerthe expiration dates. The licensee shall notify the state department inwriting at least thirty (30) days before closing or selling the personalservices agency.
(i) A personal services agency license may not be transferred orassigned. Upon sale, assignment, lease, or other transfer, includingtransfers that qualify as a change in ownership, the new owner orperson in interest must obtain a license from the state departmentunder this chapter before maintaining, operating, or conducting thepersonal services agency.
(j) A home health agency licensed under IC 16-27-1 that operatesa personal services agency within the home health agency is subjectto the requirements of this chapter. The requirements underIC 16-27-1 do not apply to a home health agency's personal servicesagency. The requirements under this chapter do not apply to a homehealth agency's operations. A home health agency that is licensed
under IC 16-27-1 is not required to obtain a license under thischapter.
(k) If a person who is licensed to operate a personal servicesagency is also licensed to operate a home health agency underIC 16-27-1, an onsite inspection for renewal of the person's personalservices agency license must, to the extent feasible, be conducted atthe same time as an onsite inspection for the home health agencylicense.
As added by P.L.212-2005, SEC.18.
IC 16-27-4-7
Unlicensed agencies; attorney general
Sec. 7. (a) The state department shall investigate a report of anunlicensed personal services agency operation and report its findingsto the attorney general.
(b) The attorney general may do the following:
(1) Seek an injunction in the circuit or superior court of thecounty in which the unlicensed home health agency is located.
(2) Prosecute violations under section 23 of this chapter.
As added by P.L.212-2005, SEC.18.
IC 16-27-4-8
Unstable health conditions
Sec. 8. (a) If a personal services agency is aware that the client'smedical or health condition has become unstable or unpredictable,the personal services agency shall notify the client, the client'spersonal representative, a family member, other relative of the client,or other person identified by the client of the need for a referral formedical or health services. The notification may be given in writingor orally and must be documented in the client's record with thepersonal services agency.
(b) The personal services agency may continue to providepersonal services for a client with an unstable or unpredictablemedical or health condition but may not manage or represent itselfas able to manage the client's medical or health condition.
As added by P.L.212-2005, SEC.18.
IC 16-27-4-9
Personal services agency manager
Sec. 9. (a) A personal services agency shall employ an individualto act as the personal services agency's manager. The manager isresponsible for the organization and daily operation of the personalservices agency.
(b) The manager may designate in writing one (1) or moreindividuals to act on behalf of or to perform any or all theresponsibilities of the personal services agency's manager under thischapter.
As added by P.L.212-2005, SEC.18.
IC 16-27-4-10 Service plan
Sec. 10. The personal services agency's manager or the manager'sdesignee shall prepare a service plan for a client before providingpersonal services for the client. A permanent change to the serviceplan requires a written change to the service plan. The service planmust:
(1) be in writing, dated, and signed by the individual whoprepared it;
(2) list the types and schedule of services to be provided; and
(3) state that the services to be provided to the client are subjectto the client's right to temporarily suspend, permanentlyterminate, temporarily add, or permanently add the provision ofany service.
All permanent changes require a change in the written service plan.The service plan must be signed and dated by the client not later thanfourteen (14) days after services begin for the client and not laterthan fourteen (14) days after any permanent change to the serviceplan.
As added by P.L.212-2005, SEC.18.
IC 16-27-4-11
Client satisfaction review
Sec. 11. The personal services agency's manager or the manager'sdesignee shall conduct a client satisfaction review with the clientevery seventy-six (76) to one hundred four (104) days to discuss theservices being provided and to determine if any change in the plan ofservices should occur. The review with the client may be in personor by telephone. This client satisfaction review must:
(1) be put in writing; and
(2) be signed and dated by the individual conducting the review.
As added by P.L.212-2005, SEC.18.
IC 16-27-4-12
Client rights statement
Sec. 12. The personal services agency shall provide the client orthe client's personal representative with the personal servicesagency's written statement of client rights not more than seven (7)days after providing services to the client. The statement of clientrights must include the following information:
(1) The client has the right to have the client's property treatedwith respect.
(2) The client has the right to temporarily suspend, permanentlyterminate, temporarily add, or permanently add services in theservice plan.
(3) The client has the right to file grievances regarding servicesfurnished or regarding the lack of respect for property by thepersonal services agency and is not subject to discrimination orreprisal for filing a grievance.
(4) The client has the right to be free from verbal, physical, andpsychological abuse and to be treated with dignity. (5) A statement that it is not within the scope of the personalservices agency's license to manage the medical and healthconditions of the client if a condition becomes unstable orunpredictable.
(6) The charges for services provided by the personal servicesagency.
(7) The personal services agency's policy for notifying the clientof any increase in the cost of services.
(8) The hours the personal services agency's office is open forbusiness.
(9) That on request the personal services agency will makeavailable to the client a written list of the names and addressesof all persons having at least a five percent (5%) ownership orcontrolling interest in the personal services agency.
(10) The procedures for contacting the personal servicesagency's manager, or the manager's designee, while the personalservices agency's office is open or closed.
(11) The procedure and telephone number to call to file acomplaint with the personal services agency.
(12) That the state department does not inspect personal serviceagencies as part of the licensing process but does investigatecomplaints concerning personal service agencies.
(13) The procedure and telephone number to call to file acomplaint with the state department along with the businesshours of the state department.
As added by P.L.212-2005, SEC.18.
IC 16-27-4-13
Complaint investigations
Sec. 13. A personal services agency shall investigate a complaintmade by a client, the client's family, or the client's personalrepresentative regarding:
(1) service that is or fails to be furnished; and
(2) lack of respect for the client's property by anyone furnishingservices on behalf of the personal services agency.
The personal services agency shall document the complaint and theresolution of the complaint.
As added by P.L.212-2005, SEC.18.
IC 16-27-4-14
Telephone contact
Sec. 14. The personal services agency's manager or the manager'sdesignee shall be available to respond to client telephone callstwenty-four (24) hours a day.
As added by P.L.212-2005, SEC.18.
IC 16-27-4-15
Tuberculosis test
Sec. 15. An employee or agent of a personal services agency whowill have direct client contact must complete a tuberculosis test in
the same manner as required by the state department for licensedhome health agency employees and agents.
As added by P.L.212-2005, SEC.18.
IC 16-27-4-16
Evaluation and training
Sec. 16. (a) The competency of an employee or agent of apersonal services agency who will perform attendant care services atthe client's residence must be evaluated by the agency or the agency'sdesignee for each attendant care services task that the personalservices agency chooses to have that employee or agent perform. Theagency has the sole discretion to determine if an employee or agentis competent to perform an attendant care services task.
(b) After an evaluation, an employee or agent shall be trained inthe attendant care services tasks the personal services agencybelieves require improvement. The employee or agent shall bereevaluated following any training. The evaluation of the employeeor agent and determination by the agency that the employee or agentis competent to perform the attendant care services task must occurbefore the employee or agent performs that task for a client withoutdirect agency supervision.
(c) The content of the evaluation and training conducted underthis section, including the date and the signature of the personconducting the evaluation and training, must be documented for eachemployee or agent who performs personal services.
As added by P.L.212-2005, SEC.18.
IC 16-27-4-17
Disclosure of ownership
Sec. 17. (a) Disclosure of ownership and management informationmust be made to the state department:
(1) at the time of the personal services agency's request forlicensure;
(2) during each survey of the personal services agency; and
(3) when there is a change in the management or in anownership interest of more than five percent (5%) of thepersonal services agency.
(b) The disclosure under subsection (a) must include thefollowing:
(1) The name and address of all persons having at least fivepercent (5%) ownership or controlling interest in the personalservices agency.
(2) The name and address of each person who is an officer, adirector, a managing agent, or a managing employee of thepersonal services agency.
(3) The name and address of the person responsible for themanagement of the personal services agency.
(4) The name and address of the chief executive officer and thechairperson (or holder of the equivalent position) of thegoverning body that is responsible for the person identified
under subdivision (3).
(c) The determination of an ownership interest and the percentageof an ownership interest under this chapter must be determined under45 CFR 420.201 and 45 CFR 420.202, as in effect on July 1, 2005.
As added by P.L.212-2005, SEC.18.
IC 16-27-4-18
Compliance documentation
Sec. 18. A personal services agency shall document evidence ofcompliance with the requirements of this chapter and documentservices provided to clients. The documentation or copies of thedocumentation must be maintained or be electronically accessible ata personal services agency's office in Indiana for not less than seven(7) years.
As added by P.L.212-2005, SEC.18.
IC 16-27-4-19
Penalties
Sec. 19. (a) The state health commissioner may take one (1) ormore of the following actions on any ground listed in subsection (b):
(1) Issue a probationary license.
(2) Conduct a resurvey.
(3) Deny renewal of a license.
(4) Revoke a license.
(5) Impose a civil penalty in an amount not to exceed onethousand dollars ($1,000).
(b) The state health commissioner may take action undersubsection (a) on any of the following grounds:
(1) Violation of a provision of this chapter or a rule adoptedunder this chapter.
(2) Permitting, aiding, or abetting the commission of an illegalact in a personal services agency.
(c) IC 4-21.5 applies to an action under this section.
As added by P.L.212-2005, SEC.18.
IC 16-27-4-20
Rules
Sec. 20. (a) The state department shall adopt rules under IC 4-22-2to govern the procedure for the following:
(1) Issuing, renewing, denying, or revoking a personal servicesagency license.
(2) Investigating a complaint against a personal services agencythat alleges a violation of this chapter.
(3) Collecting fees required under this chapter.
(b) The state department may not add to the substantive orprocedural requirements in this chapter.
As added by P.L.212-2005, SEC.18.
IC 16-27-4-21
Penalty review Sec. 21. A licensee or an applicant for a license aggrieved by anaction under this chapter may request a review under IC 4-21.5.
As added by P.L.212-2005, SEC.18.
IC 16-27-4-22
Appeals panel
Sec. 22. (a) In response to a request for review of an orderreferred to in subsection (c), the executive board shall appoint anappeals panel that consists of three (3) members as follows:
(1) One (1) member of the executive board.
(2) One (1) attorney admitted to the practice of law in Indiana.
(3) One (1) individual with qualifications determined by theexecutive board.
(b) An employee of the state department may not be a member ofthe panel.
(c) The panel shall conduct proceedings for review of an orderissued by an administrative law judge under this chapter. The panelis the ultimate authority under IC 4-21.5.
As added by P.L.212-2005, SEC.18.
IC 16-27-4-23
Penalty
Sec. 23. A person who knowingly or intentionally:
(1) operates a personal services agency; or
(2) advertises the operation of a personal services agency;
that is not licensed under this chapter commits a Class Amisdemeanor.
As added by P.L.212-2005, SEC.18.