2023 Tennessee Code › Title 71 - WELFARE (§§ 71-1-101 — 71-7-103) › Chapter 2 - PROGRAMS AND SERVICES FOR ELDERLY PERSONS (§§ 71-2-101 — 71-2-503) › Part 4 - ADULT DAY CARE (§§ 71-2-401 — 71-2-416) › Section 71-2-405 - Licensing procedures - Fees - Biennial licenses - Transfers of licenses

(a)
(1)
An application for a license shall be submitted to the department in such manner as the department may require.
(2)
An application for a license shall be accompanied by the appropriate fee for the license and shall be received by the department not less than thirty (30) days prior to the expiration date of the existing license. Failure to timely submit a renewal application for a license shall result in expiration of the existing license.
(3)
Each application submitted to the department for a new license or for the renewal of a license shall be accompanied by the fee required for the license.
(4)
The commissioner may approve applications for renewal of a license as a biennial or triennial licensee if the commissioner determines that the applicant's methods of care and history of compliance clearly demonstrate that a biennial or triennial license is warranted.
(5)
The fees for adult day care centers shall be:
(A)
(i)
Centers caring for less than twenty (20) participants:
Annual Fee....................$ 125
Biennial Fee ....................$ 175
Triennial Fee ....................$ 200
(ii)
Centers caring for twenty (20) to one hundred (100) participants:
Annual Fee....................$ 200
Biennial Fee ....................$ 250
Triennial Fee ....................$ 300
(iii)
Centers caring for more than one hundred (100) participants:
Annual Fee....................$ 400
Biennial Fee ....................$ 450
Triennial Fee ....................$ 500
(B)
The fees shall be earmarked and dedicated to the department for the improvement of the quality of adult services in this state.
(C)
If the department issues a temporary license after the application fee is paid, no further fee shall be required until the adult day care center applies again for an annual license or for renewal of the regular annual, biennial or triennial license.
(D)
Any adult day care center that is operated by a public, nonprofit agency or local municipality operating under a grant from the department and that pays an administrative fee as part of the monitoring requirements of such grant shall be exempt from the licensing fee.
(b)
(1)
If the department determines that the applicant for annual license does not meet all of the requirements for such license, but has presented satisfactory evidence that the facility that is proposed for the care of adults has received fire safety, environmental safety and any necessary food establishment approval, that the applicant and the personnel who will care for the adults are capable in substantially all respects to care for the adults and that the applicant has the ability and intent to comply with the licensing law and regulations, the department may issue a temporary license to the applicant.
(2)
The purpose of the temporary license is to permit the license applicant to demonstrate to the department that the applicant has complied with all licensing laws and regulations applicable prior to the issuance of an initial annual license.
(3)
Within six (6) months of the issuance of the temporary license, the department shall determine if the applicant has complied with all regulations governing the adult day care centers. The department may extend the period of the temporary license for an additional six (6) months if the department determines that the applicant has made substantial progress in meeting the requirements of the law and regulations for an initial annual license.
(4)
(A)
If the department determines that the applicant for any license complies with all licensing laws and regulations for adult day care centers, the department shall issue an annual, biennial or triennial license. The department may issue a restricted license as provided in §
71-2-407
if circumstances warrant. If the applicant has not complied with such laws or regulations or if circumstances do not warrant the issuance of a restricted license, the application shall be denied.
(B)
A biennial or triennial license may not be granted as the first license immediately following any temporary license. If a biennial or triennial license is granted, the commissioner may limit the biennial or triennial license to an annual or biennial or triennial license at the next renewal period, or may at any time reduce the biennial or triennial licensure period to a shorter period. Such reduction in the licensing period may be appealed pursuant to the procedures for appeal of license denials or revocations.
(C)
The annual, biennial or triennial license shall expire, respectively, twelve (12), twenty-four (24) or thirty-six (36) months from the date of its issuance unless the licensee has made timely reapplication for renewal and the department has not determined the status of the application, in which case the existing license shall continue in effect, unless suspended, until such determination is made and until a timely filed appeal is resolved by entry of a final order regarding the license application pursuant to §
4-5-314
.
(c)
(1)
Each license issued or renewed pursuant to this part shall not be transferable to any other person or entity, and the sale, or transfer of the adult day care facility by any means, from the person or entity that is named as the licensee to any other person or entity shall void the existing license or any pending appeal of the denial or revocation of the existing license, and shall require an application by the transferee for an annual license and the payment of the required licensing fee. The adult day care center, the ownership or control of which has been transferred by the existing licensee, may not continue operation until a temporary or annual license is granted to the transferee. The new licensee in such circumstances may not be the transferor or any person or entity acting on behalf of the transferor.
(2)
If, however, the department determines that any person or entity has transferred nominal control of a center to any persons or entities who are determined by the department to be acting on behalf of the purported transferor in order to circumvent a history of violations of the licensing law or regulations or to otherwise attempt to circumvent the licensing law or regulations or any prior licensing actions instituted by the department, the department may deny the issuance of any license to the applicant. The denial of the license may be appealed as provided in §
71-2-408
.
(3)
(A)
The license of any center shall not be voided nor shall any pending appeal be voided pursuant to this subsection (c) solely for the reason that the center is subject to judicial orders directing the transfer of control or management of an adult day care center or its license to any receiver, trustee, administrator or executor of an estate, or any similarly situated person or entity.
(B)
If the current licensee dies, and provided that no licensing violations require the suspension, denial or revocation of the agency's license, the department may grant family members of the licensee, or administrators or executors of the licensee, a temporary license to continue operation for a period of six (6) months. At the end of such period, the department shall determine whether an annual or extended license should be granted to a new licensee as otherwise provided in this section.
(C)
Nothing in this subsection (c) shall be construed to prevent the department from taking any regulatory or judicial action as may be required pursuant to the licensing laws and regulations that may be necessary to protect the adults in the care of such center.
Acts 1996, ch. 1058, § 6; 1997 , ch. 449, §§ 4, 5; 2000, ch. 981, § 70.