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NEW JERSEY REGISTER
VOLUME 36, NUMBER 11
MONDAY, JUNE 7, 2004
RULE PROPOSAL

LAW AND PUBLIC SAFETY
DIVISION OF CONSUMER AFFAIRS
OFFICE OF THE DIRECTOR
HEALTH CARE SERVICE FIRMS
DEFINITIONS; INITIAL REGISTRATION REQUIREMENTS; REGISTRATION RENEWAL;
PROHIBITED ACTS


Proposed Amendments: N.J.A.C. 13:45B-14.2, 14.3, 14.5 and 14.6

Authorized By: Reni Erdos, Director, Division of Consumer Affairs.

Authority: N.J.S.A. 34:8-54.
Calendar Reference: See Summary below for explanation of exception to calendar requirement.
Proposal Number: PRN 2004-221.

Submit comments by August 6, 2004 to:

Reni Erdos, Director

Division of Consumer Affairs

124 Halsey Street

PO Box 45027

Newark, New Jersey 07102

The agency proposal follows:

Summary

On May 30, 2003, Ann Twomey, President of the Health Professionals and Allied Employees, submitted a rulemaking petition to the New Jersey Office of Consumer Protection to amend Subchapter 14 of N.J.A.C. 13:45B and N.J.A.C. 13:45B- 15.5. The suggested amendments would require all agencies that provide health related service to be designated as health care service firms, require disclosure of financial arrangements between temporary agencies and health care institutions and disclosure of disciplinary actions in other states. The petitioner also requested that the rules be amended to hold temporary agencies and health care institutions responsible for the actions of temporary employees. The Director of the Division of Consumer Affairs (the Director) reviewed the petitioner's requested changes and determined that some of the petitioner's changes should be made and that others should not. The Director also determined that some of the rules the petitioner suggested to amend should be changed, but not specifically as the petitioner requested. The Director's response to the petitioner's request was published in the September 2, 2003 New Jersey Register at 35 N.J.R. 4144(b), in which the Director specifically outlined the changes to N.J.A.C. 13:45B that were determined appropriate and should be proposed. This proposal amends N.J.A.C. 13:45B, pursuant to the Director's authority in N.J.S.A. 34:8-54, in response to the petitioner's request.

The Director proposes to amend the definition of "health care service firm" in N.J.A.C. 13:45B-14.2 to clarify that a health care service firm provides personal care services. The Director proposes to amend the definition of "health care services" to indicate that these include any health related service which requires registration or certification to perform. The Director also proposes a new definition for "personal care services."

N.J.A.C. 13:45B-14.3 requires health care service firms to submit specific information to the Division of Consumer Affairs (the Division) when registering. The Director proposes to amend this rule to require that health care service firms provide the names of any health care companies related to the health care service firm through joint ownership, boards of directors, officers, incorporators or principals and the address of any related health care companies when registering. The Director also proposes to amend this rule to add a new requirement that health care service firms submit a list of any licenses held by the health care service firm, or by any principal of the health care service firm, to provide health care services in another state. The amended rule would also require health care service firms to submit a description of any actions taken on out-of-State licenses and a description of any violations of Federal law by the health care service firm or any principal of the health care service firm.

N.J.A.C. 13:45B-14.5 requires that renewal applications include a certification that no new principals or owners have been added since the previous renewal. The Director proposes to amend this to include reference to new officers and directors. The Director also proposes to amend this rule to require that renewal applications include an updated description of actions taken by other states and any violations of Federal or New Jersey State law.

N.J.A.C. 13:45B-14.6 prohibits a health care service firm from providing or offering to provide health care services without first obtaining registration. The Director proposes to amend this rule to prohibit a health care service firm from recruiting or advertising for health care service staff, providing or offering to provide health care services to potential employees, or contracting with a health care facility to provide health care services without first obtaining registration.

The Director has determined that the comment period for this proposal shall be 60 days; therefore, pursuant to N.J.A.C. 1:30-3.3(a)5, this proposal is excepted from the rulemaking calendar requirement.

Social Impact

The Director believes that the proposed amendments will have a positive social impact. The proposed amendments to N.J.A.C. 13:44B-14.3 require health care service firms to inform the Board of any related health care companies, any license held in another state, any state actions taken against the company or any violations of Federal law by the firm. Proposed amendments to N.J.A.C. 13:45B-14.5 require a health care service firm to provide an updated description of any action taken by another state or any violations of Federal or New Jersey State law when a firm renews registration. This will ensure that the Director has all pertinent information regarding a health care service firm and its related health care companies when it registers. The Director believes that this will protect the public in that firms that are engaging in inappropriate behavior will be identified and possibly denied renewal of registration. The proposal may have an impact on firms that offer personal care services in that these firms will now need to register with the Division. The public will enjoy greater protection since these firms will be regulated by the Division. The proposed amendments to N.J.A.C. 13:45B-14.6 will have a positive impact as they will prevent health care service firms from recruiting, advertising or contracting to provide services until they are registered. This will ensure that only those firms that are legally permitted to provide services will be offering to do so.

Economic Impact

The proposal will impose an economic impact in that the proposed amendments to N.J.A.C. 13:45B-14.3 and 14.5 require health care service firms to provide specific information regarding related health care companies, licenses held in other states, disciplinary action taken by other states and any violations of law when registering or renewing registration with the Division. The cost of providing this information will be borne by the health care service forms. The proposal will also impose an economic impact in that amendments to N.J.A.C. 13:45B-14.6 prohibit a firm from recruiting or advertising for health care service staff without obtaining registration. The amendments also prohibit firms from providing health care services to potential employees, or contracting with a health care facility to provide health care services, without first obtaining registration. The cost of obtaining this registration, including preparing the registration form, obtaining a bond of $10,000, preparing a list of licenses held by the firm in other states, and other costs, will be borne by the health care service firms. The proposed amendments will have an economic impact on firms that offer personal care services in that these firms will need to obtain registration.

Federal Standards Statement

A Federal standards analysis is not required because the proposed amendments have no applicable Federal standards or requirements.

Jobs Impact

The Director does not anticipate that the proposed amendments will result in an increase or decrease in the number of jobs in New Jersey.

Agriculture Industry Impact

The Director does not anticipate that the proposed amendments will have any impact on the agriculture industry of the State.

Regulatory Flexibility Analysis

If, for the purposes of the Regulatory Flexibility Act, N.J.S.A. 52:14B-16 et seq., the approximately 450 health care service firms in New Jersey are considered "small businesses," then the following analysis applies.

The Act requires the Director to set forth the reporting, recordkeeping and other compliance requirements of the proposal including the kinds of professional services likely to be needed to comply. The Act further requires the Director to estimate the initial and annual compliance costs of the proposal with an indication of the varying impact on small businesses of differing types and sizes and to outline the manner in which it has designed the rules to minimize any adverse economic impact upon small businesses.

The costs imposed on small businesses by the proposed amendments are the same costs that are imposed on all businesses as outlined in the Economic Impact statement above.

The Director believes that health care service firms will not need to employ any professional services to comply with the requirements of the proposed amendments.

The proposed amendments impose no reporting or recordkeeping requirements. The amendments do impose several compliance requirements. The proposed amendments to N.J.A.C. 13:45B-14.3 require health care service firms applying for registration to submit a list of related health care companies, addresses of related health care companies, a list of licenses held by the firm in other states, a list of actions taken against licenses in other states, and a list of any Federal violations. The proposed amendments to N.J.A.C. 13:45B-14.5 require health care service firms to submit an updated list of any action taken against a license in another state or any violations of Federal or New Jersey State law. The proposed amendments to N.J.A.C. 13:45B-14.6 prohibit a health care service firm from recruiting or advertising for temporary health care service staff, or from contracting with a health care facility to provide health care services, without first obtaining registration.

As the compliance requirements of the proposed rules are promulgated to adequately regulate health care service firms and protect consumers who use their services, the Director believes that the rules must be uniformly applied to all health care service firms and no exemptions are provided based on the size of the business.

Smart Growth Impact

The Director does not anticipate that the proposed amendments will have any impact on smart growth or the implementation of the State Development and Redevelopment Plan, otherwise known as the State Plan.

Full text of the proposal follows :

<< NJ ADC 13:45B-14.2 >>

13:45B-14.2 Definitions

As used in this subchapter, the following terms shall have the following meanings unless the context clearly indicates otherwise:

"Health care service firm" means any person who operates a firm that employs individuals directly or indirectly for the purpose of assigning the employed individuals to provide health care <<+or personal care+>> services either directly in the home or at a care-giving facility, and who, in addition to paying wages or salaries to the employed individuals while on assignment, pays or is required to pay Federal social security taxes and State and Federal unemployment insurance; carries or is required to carry worker's compensation insurance; and sustains responsibility for the action of the employed individuals while they render health care services.

"Health care services" means:

1. (No change.)

2. Any health related services for which licensure<<+, registration or certification+>> is required as a pre-condition to the rendering of such services.

<<+"Personal care services" include bathing, toileting, transferring, dressing, grooming, and assistance with ambulation, exercise, or other aspects of personal hygiene.+>>

<< NJ ADC 13:45B-14.3 >>

13:45B-14.3 Initial registration requirements

(a) Except as set forth in N.J.A.C. 13:45B-14.4, each health care service firm shall register with the Division by submitting the following, on forms provided by the Director:

1. A registration form which shall include the following information:

i. The name of the health care service firm and any fictitious or trade name used in its operation <<+and the names of health care companies related through joint ownership, boards of directors, officers, incorporators or principals+>>;

ii. Each primary location including street and street number of the building(s) and place(s) where its business is to be conducted <<+and the address of all health care companies related through joint ownership, boards of directors, officers, incorporators or principals+>>;

iii.-v. (No change.)

2. A certification of each officer, director, principal or owner setting forth whether he or she has ever been convicted of a crime as set forth in N.J.S.A. 34:8-44; <<-and->>

3. A bond of $10,000 to secure compliance with P.L. 1989, c.331 (N.J.S.A. 34:8-43 et seq.). The Director may waive the bond requirement for any corporation or entity having a net worth of $100,000 or more. In order to obtain a waiver, the health care service firm shall provide a copy of a certified financial report prepared by a certified public accountant or licensed accountant establishing a net worth of $100,000 or greater<<-.->><<+; and+>>

<<+4. A list of any licenses held in another state by the health care service firm, or by any officer, director, owner or principal of the health care service firm, to provide health care services in another state, a description of any actions taken by another state on those licenses, including violations of health or labor laws, and a description of any violations of Federal law by the health care service firm or any principal of the health care service firm.+>>

(b)-(d) (No change.)

<< NJ ADC 13:45B-14.5 >>

13:45B-14.5 Registration renewal

(a) A health care service firm shall renew registration on or prior to July 1 of each year by submitting the following, on forms provided by the Director.

1. A renewal application which shall provide the information set forth in N.J.A.C. 13:45B-14.3(a)1 <<-above:->><<+;+>> a certification that no new <<+officers, directors,+>> principals or owners have been added since the previous renewal; <<-and->> a list of primary locations<<+; an updated description of any action taken by another state upon a license held by the health care service firm or by any officer, director, owner or principal of the health care service firm; and an updated description of any violations of Federal or New Jersey State law by the health care service firm or any officer, director, owner or principal of the health care service firm.+>>

2. (No change.)

<< NJ ADC 13:45B-14.6 >>

13:45B-14.6 Prohibited acts

(a) A health care service firm shall not:

1. <<-Provide->> <<+Recruit or advertise for health care service staff, provide+>> or offer to provide health care services <<+to potential employees, or contract with a health care facility to provide health care services+>> without first obtaining registration;

2.-4. (No change.)

 

  

  

  

  

  

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