LAC 48:I.5327. Cessation of Business

A. Except as provided in §5407 and §5409 of these licensing regulations, a license shall be immediately null and void if a provider ceases to operate. B. A cessation of business is deemed to be effective the date on which the provider stopped offering or providing services to the community. C. Upon the cessation of business, the provider shall immediately return the original license to the department. D. Cessation of business is deemed to be a voluntary action on the part of the provider. The provider does not have a right to appeal a cessation of business. E. A CRC that intends to cease operations shall: 1. provide 30 days advance written notice to HSS and the active client, or if applicable, the client's parent(s), legal guardian, or designated representative; and 2. discharge and transition all clients in accordance with this Chapter. F. The provider shall notify the department in writing 30 days prior to the effective date of the closure or cessation. In addition to the notice, the provider shall submit a written plan for the disposition of patient medical records for approval by the department. The plan shall include the following: 1. the effective date of the closure; 2. provisions that comply with federal and state laws on storage, maintenance, access, and confidentiality of the closed provider's patients medical records; 3. an appointed custodian(s) who shall provide the following: a. access to records and copies of records to the patient or authorized representative, upon presentation of proper authorization(s); and b. physical and environmental security that protects the records against fire, water, intrusion, unauthorized access, loss and destruction; 4. public notice regarding access to records, in the newspaper with the largest circulation in close proximity to the closing provider, at least 15 days prior to the effective date of closure. G. If a CRC fails to follow these procedures, the department may prohibit the owners, managers, officers, directors, and/or administrators from opening, managing, directing, operating, or owning a CRC for a period of two years. H. Once the provider has ceased doing business, the provider shall not provide services until the provider has obtained a new initial license.