DIGEST
The digest printed below was prepared by House Legislative Services. It constitutes no part of the
legislative instrument. The keyword, one-liner, abstract, and digest do not constitute part of the law
or proof or indicia of legislative intent. [R.S. 1:13(B) and 24:177(E)]
HB 402 Reengrossed 2017 Regular Session Havard
Abstract: Provides for licensure and regulation of residential facilities for adults with a primary
diagnosis of mental illness to be known as "community-based care facilities".
Proposed law provides that it may be cited as the "Community-Based Care Facility Licensing Law".
Proposed law presents findings and declarations concerning the necessity of appropriate care and
treatment for persons with mental illness.
Proposed law provides that its purpose is to authorize the La. Department of Health (LDH) to
promulgate and adopt rules, regulations, and standards to license and regulate facilities to be
operated as community-based care facilities in order to provide for the health, safety, and welfare
of persons receiving mental health services.
Proposed law defines "community-based care facility" as a facility where five or more adults with
a primary diagnosis of mental illness who are not related to the operator or administrator and who
do not require care above intermediate-level nursing care reside and receive care, treatment, or
services that are above the level of room and board and include no more than three hours of nursing
care per week per resident.
Proposed law requires each community-based care facility to be licensed in accordance with the
requirements of proposed law. Specifically provides that community-based care facilities shall not
be subject to requirements of present law for licensure and regulation as behavioral health services
providers (R.S. 40:2151 et seq.).
Proposed law stipulates that no facility, agency, institution, person, society, corporation, partnership,
unincorporated association, group, or other legal entity providing community-based care services
may be established, operated, or reimbursed through the Medicaid program unless licensed as a
community-based care facility by LDH.
Proposed law provides that a license issued to a community-based care facility shall be issued only
for the owner and premises named in the application; shall be on a form prescribed by LDH; shall
be valid for a 12-month period beginning the month of issuance unless revoked or otherwise
suspended prior to that date; and shall not be transferable or assignable.
Proposed law requires LDH to adopt rules, regulations, and licensing standards in accordance with
the Administrative Procedure Act to provide for the licensure of community-based care facilities. Provides that such rules, regulations, and licensing standards shall include, without limitation, all
of the following:
(1)Licensure application and renewal application forms, procedures, and requirements.
(2)Operational and personnel requirements.
(3)Practice standards to assure quality of care.
(4)Practice standards to assure the health, safety, and welfare of clients.
(5)Confidentiality of client records.
(6)Initial and annual renewal of license.
(7)Financial viability requirements and requirements for verification and continuous
maintenance of financial viability.
(8)Denial, revocation, suspension, and nonrenewal of licenses, and procedures for appeals of
such decisions.
(9)Facility construction and design.
(10)Other regulations or standards to ensure proper care and treatment of clients.
Proposed law applies to community-based care facilities all of the following fees established in
present law for licensed healthcare facilities and providers and payable to LDH:
(1)A fee of $600 at the time of initial application for licensure and annually thereafter for
renewal of the license.
(2)An additional fee of $5 per unit, defined to mean a room or station (commonly known as a
"bed fee").
(3)A delinquent fee of $100 for failure to timely renew a license.
Proposed law provides that following receipt of a license application and the required fee, LDH shall
perform an onsite survey and inspection, and shall issue a license to the applicant if it finds that the
applicant meets all applicable licensure requirements. Provides that LDH may perform another
onsite survey and inspection after receiving an annual license renewal application, and shall renew
the facility's license if the facility continues to meet all applicable licensure requirements. Provides
further that LDH may perform any onsite inspections of community-based care facilities at
reasonable times as necessary to ensure compliance with proposed law.
Proposed law authorizes LDH to license community-based care facilities which propose to operate in one or more state-owned residential buildings. Requires the secretary of LDH to direct
department staff to cooperate with and give assistance to any applicant who seeks to operate a
community-based care facility in one or more state-owned residential buildings and is otherwise
qualified for licensure pursuant to present law.
(Adds R.S. 40:2006(A)(2)(r), (B)(2)(i), and (E)(2)(t), 2154(A)(19), and 2162.1-2162.7)
Summary of Amendments Adopted by House
The House Floor Amendments to the engrossed bill:
1. Make technical changes.