New Jersey § 34:8-45

§ 34:8-45.

a. Notwithstanding any other law or regulation to the contrary, an employment agency

required to be licensed pursuant to P.L.1989, c. 331 ( C.34:8-43 et al.), or any other firm, company, business, agency, or other entity that is not

a home health care agency licensed pursuant to P.L.1971, c. 136 ( C.26:2H-1 et seq. ) or a hospice licensed pursuant to P.L.1997, c. 78 ( C.26:2H-79 et seq. ), which employs, places, arranges for the placement of, or in any way refers, an

individual to provide companion services, health care services, or personal care services

in the personal residence of a person with a disability or who is age 60 or older,

regardless of the title by which the provider of the services is known, shall be registered

as a Health Care Service Firm and shall be subject to the rules and regulations governing

Health Care Service Firms adopted by the Division of Consumer Affairs in the Department

of Law and Public Safety. The Division of Consumer Affairs is authorized to enforce the health care service

firm registration requirement, and the provisions of P.L.1989, c. 331 ( C.34:8-43 et al.), upon any person whose operations are subject to this section, whether the

operations include the direct employment of individuals, the use of an Internet website

or application, or any other process or business model. As used in this section: “ Companion services ” means non-medical, basic supervision and socialization services which do not include

assistance with activities of daily living, and which are provided in the individual's

home. Companion services may include the performance of household chores. “ Health care services ” means any services rendered for the purpose of maintaining or restoring an individual's

physical or mental health or any health-related services, and for which a license

or certification is required as a pre-condition to the rendering of such services. “ Personal care services ” means services performed by licensed or certified personnel for the purpose of assisting

an individual with activities of daily living that may involve physical contact. Services include, but are not limited to, bathing, toileting, transferring, dressing,

grooming, and assistance with ambulation, exercise, or other aspects of personal hygiene. b. (Deleted by amendment, P.L.2014, c. 29 ) c. As a condition of being registered under P.L.1989, c. 331 ( C.34:8-43 et al.), a health care service firm shall obtain within 12 months of registration

accreditation from an accrediting body that is recognized by the Commissioner of Human

Services as an accrediting body for homemaker agencies participating in the Medicaid

program, as set forth at N.J.A.C.10:60-1.2 . For purposes of accreditation pursuant to this subsection, the accrediting body

shall apply the standards set forth in N.J.A.C.13:37-14.1 et seq. and N.J.A.C.13:45B-13.1 et seq. , as applicable. d. As a condition of registration under P.L.1989, c. 331 ( C.34:8-43 et al.) : (1) All health care service firms shall annually submit to the director financial

statements prepared by the firm, which shall be consistent with the firm's tax filing

with the State for the year covered by the financial statements. (2) In addition to the financial statements required pursuant to paragraph (1) of

this subsection, a health care service firm that receives more than $250,000 for the provision of New Jersey Medicaid Personal

Care Assistance services shall submit to the director an audit the third calendar year after the date of registration or on December 30, 2022, whichever date is later, and every third year thereafter. (3) In addition to the financial statements required pursuant to paragraph (1) of

this subsection, a health care service firm that generates $10 million or more in

gross income in a year shall submit to the director an audit for that year, except

that an audit required by this paragraph shall not be required to be submitted prior

to December 30, 2022. (4)(a) In addition to the financial statements required pursuant to paragraph (1)

of this subsection, a health care service firm that receives less than $250,000 for

the provision of New Jersey Medicaid Personal Care Assistance services and that generates

$1 million or more, but less than $10 million, in gross income in a year shall submit

to the director a report for that year, except that a report required by this paragraph

shall not be required to be submitted prior to December 30, 2022. The report shall be prepared by an independent third-party practitioner based on

a review of the firm's financial statements and records, general management, and internal

controls, which review shall be conducted in compliance with the standards and procedures

developed by the director pursuant to subsection b. of section 2 of P.L.2014, c. 29 ( C.34:8-45.1a ). (b) If the division makes adverse findings against a firm upon review of a report

submitted pursuant to subparagraph (a) of this paragraph, the director shall order

such corrective action as the director deems appropriate, and, upon compliance with

or completion of the corrective action, shall require the firm to obtain a separate

review of the firm's data for that year, which shall be conducted by a different independent

third-party practitioner than the one that furnished the original report, and shall

be based on the standards and procedures developed by the director pursuant to subsection

b. of section 2 of P.L.2014, c. 29 ( C.34:8-45.1a ). The firm shall additionally be required to submit to the director an audit for the

calendar year next following the year for which the adverse finding was made, regardless

of the firm's gross income for the year. An audit required pursuant to this paragraph shall be conducted by a certified public accountant licensed by the State of New

Jersey and shall encompass an examination of the subject firm's financial records,

financial statements, the general management of its operations, and its internal control

systems. The audit shall include an audit report with an unqualified opinion and shall be

accompanied by any management letters prepared by the auditor in connection with the

audit commenting on the internal controls or management practices of the health care

service firm. The audit shall be divided into two components: compliance and financial. The compliance component of the audit shall evaluate the firm's compliance with

relevant laws and regulations governing health care service firms. The financial component shall include an audit of the financial statements and accompanying

notes, as specified in the Statements on Auditing Standards issued by the American

Institute of Certified Public Accountants. e. In addition to any other penalty provided by law, a person shall be liable for

a penalty of $500 per day for each day that the person continues to operate a firm

without registering as required under this section. The penalty shall be collected by the Director of the Division of Consumer Affairs

in a summary proceeding in accordance with the “Penalty Enforcement Law of 1999,” P.L.1999, c. 274 ( C.2A:58-10 et seq. ).