Section 31.03. Operating certificates for family care homes

(a)  No  provider  of  services  as  a  family  care home for mentally
  disabled persons shall engage in any such activities on or  after  April
  first,  nineteen hundred seventy-seven, unless it possesses an operating
  certificate issued by the commissioner pursuant to this article.
    (b) The operation of  a  family  care  home  for  which  an  operating
  certificate  is  required  shall  be in accordance with the terms of the
  operating certificate and the regulations of the commissioner.
    (c) The operating certificate issued for a family care home  shall  be
  valid  for two years. There shall be no initial or renewal certification
  fee required.
    (d) Application for the operating certificate shall  be  made  by  the
  owner of the family care home. The application shall be made in writing,
  be  verified  under  oath, shall state the name and address of the owner
  and shall be in such form and contain such information  as  required  by
  regulations promulgated by the commissioner pursuant to this article.
    (e)  Notice of an application for an operating certificate as a family
  care home shall be forwarded by the department to the appropriate  local
  governmental  unit  pursuant  to the provisions of section 31.23 of this
  chapter, to the directors of department facilities and to  the  regional
  director in the area proposed to be served.
    (f)  Except  as otherwise provided in subdivision (g) of this section,
  the commissioner shall not be required to approve an application for  an
  initial  operating  certificate as a family care home unless he shall be
  satisfied that it would be  in  the  public  interest  to  approve  such
  certificate in consideration of the public need for the home in the area
  proposed  to  be  served,  availability  of  adequate  finances  for the
  establishment and continued operation of the home and such other factors
  as may be pertinent.
    (g) If any person is in bona fide operation as a family care  home  on
  April first, nineteen hundred seventy-six, within the local governmental
  unit for which application for an operating certificate is made pursuant
  to  the provisions of this section, and has so operated since that time,
  the  commissioner  shall  issue  such  operating   certificate   without
  requiring  proof  that there is a public need for such family care home,
  providing application for such operating certificate to  the  department
  in  accordance  with  this  article  is  submitted prior to April first,
  nineteen hundred seventy-seven. Pending the determination  of  any  such
  application  the  continuance  of  such  operation  shall  be lawful. An
  application pursuant to this section shall  be  deemed  filed  with  the
  department  upon  being  mailed  to  the  department  by  registered  or
  certified mail.
    (h) In order more effectively to assure that the life, health,  safety
  and comfort of persons cared for in family care homes will be adequately
  protected  and  promoted and that such persons will receive the kind and
  quality of care, supervision and attention required by reason  of  their
  condition:
    (1)  Operating certificates for family care homes shall be issued only
  to natural persons, and corporations for  profit  shall  not  be  formed
  under the business corporation law for any such purpose.
    (2)  Except  as provided in paragraph three, no family care home shall
  be issued an operating certificate for the purpose of providing suitable
  care therein to more than six persons.
    (3) Any provider of service providing family care  to  more  than  six
  persons  on July first, nineteen hundred seventy-five shall be issued an
  operating certificate for a family  care  home  effective  April  first,
  nineteen  hundred  seventy-seven,  pursuant  to  the  provisions of this
  section, provided that such person fulfills  all  requirements  of  this

  section  except  for the number of persons in care, and that such person
  agrees to provide family care to no more than ten persons on  and  after
  April first, nineteen hundred seventy-seven.
    (4)  No  operating  certificate  issued  under  this  section shall be
  transferable.
    (5) The commissioner shall promulgate  and  distribute  a  caretaker's
  manual  for  the  operation  of  family  care  homes, and any amendments
  thereto, and regulations pursuant to this section.
    (6) The department shall investigate the financial  condition,  income
  and good moral character of every applicant for an operating certificate
  under this section.
    (7)  The department shall provide substitute caretakers to each family
  care home for a maximum of ten days per year, either directly  or  as  a
  purchase of service.
    (8)  The  commissioner  shall  establish  a  procedure, subject to the
  approval of the state comptroller,  whereby  payments  may  be  made  to
  operators of family care homes for one or more of the following needs of
  clients  residing  in  such  facilities,  limited  to two hundred ninety
  dollars per client  per  year  and  paid  semi-annually  in  the  manner
  specified by such procedures:
    (i) Replacement of necessary clothing;
    (ii) Personal requirements and incidental needs of clients;
    (iii)  Recreational  and cultural activities of clients. Such payments
  may be made from monies appropriated to the offices  for  this  purpose.
  Such  payments shall be audited by each office pursuant to an audit plan
  approved by the comptroller.