California home care organization license: starting a non-medical home care agency

What California counts as a home care organization

California regulates non-medical home care under the Home Care Services Consumer Protection Act, Health and Safety Code sections 1796.10 and following. Since January 2016 the Act has required home care organizations to be licensed, and it set up a public online registry of background-checked home care aides ⁠¹. The Home Care Services Branch (HCSB), part of the Department of Social Services’ Community Care Licensing Division, processes HCO applications, takes complaints and makes unannounced visits. It also runs the aide registry ⁠¹.

The statute defines a home care organization as an individual aged 18 or older, or a firm, partnership, corporation, LLC or other entity, “that arranges for home care services by an affiliated home care aide to a client” ⁠². An affiliated home care aide is someone 18 or older who is employed by the organization and listed on the registry ⁠². So the license is built around an employer: your caregivers are your employees. CDSS’s own fact sheet says a licensed HCO “accepts all employer responsibilities,” including workers’ compensation, unemployment insurance and the employer’s share of payroll taxes ⁠¹⁸.

“Home care services” means non-medical help for a client who cannot do these things because of advanced age or a physical or mental disability. The statutory list is long: bathing, dressing, feeding, exercising, grooming, transferring, ambulating, positioning, toileting and incontinence care, help with medication the client self-administers, housekeeping, meal planning and preparation, laundry, transportation, correspondence, phone calls, shopping and companionship ⁠². The same subsection sets the ceiling. It does not authorize an aide to help with self-administered medication when that help “would otherwise require administration or oversight by a licensed health care professional” ⁠².

So California has no separate companion-only tier. Hands-on personal care and companionship sit under the same HCO license.

Businesses that are not HCOs

Section 1796.17 lists the operations that do not count as home care organizations. Where that list conflicts with the Act, the other law controls ⁠³. The main exclusions a founder runs into:

The employment-agency exclusion decides which business you are building. An independent home care aide is someone on the registry who is not employed by an HCO and who works “through a direct agreement with a client” ⁠². A placement agency that refers such aides and does not employ them falls outside the license. CDSS says it “has no oversight authority” over referral and placement agencies ⁠¹⁸. Once you employ the aides and arrange their work with clients, you need an HCO license.

If clients will come to your site for daytime care, that is a facility license. See the California adult day program guide.

The name rule and the $900-a-day penalty

Two provisions apply before you are licensed. First, unless you are licensed, you may not present yourself as a home care organization in advertising or solicitation, imply that you are licensed, or refer to employee bonding for these services. You also may not use “home care organization,” “home care” or “in-home care,” or any combination of those terms, in your business name ⁠⁴. Pick your entity name and DBA with that in mind. Advertising before the license is issued is itself a violation.

Second, section 1796.35 says that arranging home care by a registered aide before you hold a license is “unlicensed home care services.” CDSS must send a notice of noncompliance and assess a civil penalty of $900 for each calendar day of each violation. It also sends the notice to the Attorney General or the local district attorney or city attorney. That office can issue a cease and desist order, seek an injunction if you do not comply within 20 calendar days, or sue under the Unfair Competition Law ⁠⁴. Violating the chapter is also a misdemeanor, punishable by a fine of up to $1,000, up to 180 days in county jail, or both ⁠⁹.

Insurance, bond and workers’ compensation come first

Section 1796.37 makes three financial protections conditions of the license, and the HCS 281 instructions say exactly what proof to attach ⁠⁴⁠¹²:

• General and professional liability insurance of at least $1,000,000 per occurrence and $3,000,000 in the aggregate, shown by a certificate ⁠⁴⁠¹².
• Workers’ compensation covering your affiliated aides. The statute requires the policy number, the effective and expiration dates, and the carrier’s name and address ⁠⁴.
• An employee dishonesty bond “including third-party coverage” with a minimum limit of $10,000 ⁠⁴. It goes on form HCS 402. An agent of the bonding company must sign it, you sign as principal, and the State of California must be named as beneficiary with effective and expiration dates. Attach the bond certificate and the acknowledgment and power-of-attorney forms. CDSS does not accept electronic signatures on this form ⁠¹².

All three must stay in force for as long as you are licensed. Inspectors check each one against form HCS 9201 ⁠⁵⁠¹⁵.

Who goes through the background check

For a sole proprietor, the owner consents to the background examination. For a corporation, LLC or other entity, it is every person with a 10 percent or greater ownership share plus the chief executive officer or equivalent ⁠⁴. CDSS will not license a corporate applicant if a board member, executive director or officer is barred under sections 1796.40 and 1796.41 ⁠⁴. An individual applicant starts the check with a California driver’s license, a DMV ID card, a Permanent Resident Card or, for an out-of-state resident, a numbered photo ID issued by that state ⁠⁴.

Each applicant also files a Criminal Record Statement (LIC 508). That covers each individual applicant, each partner, the CEO, each 10 percent owner and the manager of a manager-managed LLC ⁠¹². CDSS recommends creating the background check application in its Guardian system before you go to a Live Scan site, to avoid delays ⁠¹⁴. Anyone you name as a designee on form HCS 308 also needs a clearance or exemption ⁠¹².

Your licensing history also matters. If you held a CDSS or health facility license that was revoked in the past two years, CDSS stops reviewing your HCO application until two years have passed since the revocation. If an application under those chapters was denied in the past year, review stops until a year has passed ⁠⁴. On form HCS 215 you disclose any prior disciplinary actions and any role as administrator, general partner, officer, director or 10 percent owner of a CDSS-licensed facility or HCO ⁠¹².

Assembling the HCS 281 packet

CDSS reviews the application as one packet. Processing “cannot begin” until the fee and every Section A form and Section B document have arrived ⁠¹².

Section A forms ⁠¹¹⁠¹²:

• HCS 200, Application for a Home Care Organization License. Give the street address of the office: “This is the location CDSS will conduct an unannounced inspection.” Each HCO needs its own application ⁠¹².
• HCS 215, Licensee Applicant Information, one per applicant.
• HCS 308, Designation of Home Care Organization Responsibility. A licensee or designee must be “continuously present during business hours” ⁠¹².
• HCS 309, organization structure. Required for corporations, LLCs, partnerships and public agencies.
• HCS 402, Employee Dishonesty Bond.
• LIC 508, Criminal Record Statement.
• HCS 9165, Board of Directors Statement, one per board member, if you have a board.

Section B documents ⁠¹¹⁠¹²:

1. Formation documents

   Corporations send articles, bylaws and a board resolution authorizing the application. LLCs send articles stamped by the Secretary of State and the operating agreement. A foreign LLC adds its LLC-5 registration. Two partners who are not married to each other must file a written partnership agreement ⁠¹².

2. Job descriptions

   for every classification you plan to hire, including licensees, volunteers and aides. Each must cover duties, minimum qualifications and lines of supervision ⁠¹².

3. Personnel policies

   These must include abuse-reporting procedures under section 1796.42. They must also cover hiring practices that make fingerprint clearance, a criminal conviction statement and an abuse-reporting acknowledgment conditions of employment. For aides, add TB clearance, training and registry listing ⁠¹².

4. Training plan

   It must name who will train, give written objectives and list the title and duration of each entry-level and annual course. Include a sample training verification log. CDSS’s sample log, HCS 500, works, or you can build your own with the fields HCS 281 lists ⁠¹². If you apply on or after January 1, 2027, the annual plan must cover the special care needs of clients with dementia ⁠¹⁷.

5. Program description

   Business hours, basic and optional services (including transportation) and the counties or area you serve ⁠¹².

6. Insurance certificates

   for liability and workers’ compensation ⁠¹².

Mail the packet with a check or money order payable to the Department of Social Services. Send it to the Home Care Services Branch, 744 P Street, M.S. 9-14-90, Sacramento, CA 95814 ⁠¹¹⁠¹². Keep a full copy. HCS 281 requires you to hold it in your administrative records for inspectors ⁠¹².

If your company is based in another state, you also need a California office, and you must keep all operating records there. Foreign corporations and LLCs must register with the Secretary of State before arranging any care in California ⁠⁴.

After you mail it: HCO number, orientation, Live Scan, review

CDSS’s eight-step overview sets out what happens after you submit ⁠¹⁴:

1. Introductory letter

   Your packet goes to an analyst in the Licensing & Registry Bureau. You get a letter with your pending HCO number, the analyst’s contact details, orientation sign-up instructions and Live Scan instructions ⁠¹¹⁠¹⁴.

2. Orientation

   Completing a department orientation is a statutory condition of licensure ⁠⁴. It is a scheduled virtual session with HCSB staff, not available on demand. The fee is $50 and is not refundable. You get a certificate after attending and completing the survey ⁠¹⁴.

3. Background checks

   Every applicant and every 10 percent owner needs a clearance, or an exemption if they have a conviction for anything other than an infraction. An existing clearance or exemption may be transferable to your HCO ⁠¹⁴.

4. Review and compliance history

   If something is missing, the analyst sends a Notification of Incomplete Application with a due date. The analyst also checks your history with other licenses and verifies your entity ⁠¹⁴. If you fail to cooperate, CDSS can withdraw the application ⁠⁴.

5. Decision

   CDSS grants or denies the license once every step is complete ⁠¹⁴.

CDSS publishes no processing time. It says the timeframe “can vary,” mainly with how quickly you submit documents and clear background checks ⁠¹⁴. Neither the HCO application page nor the steps overview lists a fire clearance or a pre-licensing site inspection ⁠¹¹⁠¹⁴. Inspections come after licensing, unannounced ⁠⁸.

Fees as published on 2026-10-12

The full fee applies to a sale as well as a new application. A buyer files a new HCS 200 with the seller’s HCO number ⁠¹².

Your aides: registry, TB test and training

The license only allows you to send out aides who meet four conditions:

• Registry first. Each affiliated aide must be on the Home Care Aide Registry before providing services, and you must confirm they are cleared before they have direct contact with clients ⁠³⁠⁵. Aides can apply through CDSS’s Guardian portal using your organization’s PIN, or you can submit the application for them from your Guardian account. Registration costs $35 for two years and requires Live Scan fingerprints ⁠¹⁶. If an aide already has a clearance from another employer, you transfer it with form LIC 9182. Exemptions transfer with LIC 9188 through the Care Provider Management Branch ⁠¹⁹.
• Office staff too. Any employee, volunteer or staff member who has contact with clients or prospective clients, or access to confidential client information, must clear the background check before that contact ⁠⁵.
• Tuberculosis. Each aide must be examined within the 90 days before starting work or within 7 days after. The exam is repeated every two years after a negative test. You keep the practitioner’s certificate on file ⁠⁶.
• Training. Each aide needs 5 hours of entry-level training before being with a client: 2 hours of orientation on their role and terms of employment, and 3 hours of safety training covering basic precautions, emergency procedures and infection control. After that, at least 5 hours a year on client rights and safety, daily living needs, abuse prevention and reporting, personal hygiene help and, if you offer it, safe transportation. Training may be online ⁠⁶.

SB 412 (Stats. 2025, ch. 414) adds a topic. From January 1, 2027, the annual training must include “the special care needs of clients with dementia” ⁠⁶. CDSS says it will not prescribe a curriculum. It will check your materials during licensing, renewal and inspections, and you must keep your dementia curriculum on file for review ⁠¹⁷.

When an aide leaves, notify CDSS immediately so the registry stops showing them as affiliated with you ⁠⁵.

Running the licensed office

Section 1796.42 lists the standing duties. Post your license and business hours conspicuously where clients and aides can see them. Keep the workers’ compensation policy, bond and liability insurance in force. Report suspected elder or dependent adult abuse under Welfare and Institutions Code section 15630, and child abuse under the Penal Code, and keep a copy of every report for inspectors ⁠⁵.

CDSS must verify compliance through “random, unannounced inspections.” These can cover your books, records and premises. Refusing access is cause for revocation ⁠⁸. Inspectors come during the office hours on your HCS 200. HCS 281 warns that offices open “by appointment only” are still inspected unannounced ⁠¹². Form HCS 9201 (revised 11/25) is the checklist analysts use. It covers posted license and hours, insurance, bond, workers’ compensation, staff background checks, aide registry status, TB certificates, training hours and prompt separation notices ⁠¹⁵.

CDSS has no oversight of the aides themselves beyond running the registry ⁠⁸. Its enforcement is aimed at the licensee. Fines can reach $900 per violation per day, counted from the day a violation is found until it is corrected ⁠⁹. Grounds for denying, suspending or revoking a license include violating the chapter, conduct “inimical to the health, morals, welfare, or safety” of clients, disqualifying convictions and “acts of financial malfeasance” in running the HCO ⁠⁴.

Renewal now, and the 2029 switch to annual fees

Under the version of section 1796.37 in force until January 1, 2029, you renew every two years. CDSS must mail a renewal fee notice at least 60 days before the renewal date. The $5,603 fee must be postmarked by the expiration date, or the license expires two years after issuance ⁠⁴⁠⁷.

AB 152 (Stats. 2026, ch. 26), effective June 29, 2026, replaces that cycle from January 1, 2029 ⁠⁴⁠⁷:

• Every license pays an annual fee of $2,802, due on or before the anniversary of the license’s issuance date ⁠⁴⁠⁷.
• A payment received or postmarked after the due date adds a $1,401 late fee ⁠⁷.
• Licenses issued or renewed between January 1, 2028 and January 1, 2029 do not pay an annual fee in 2029 ⁠⁷.
• A license on probation pays a $2,802 monitoring fee for each year of probation ⁠⁷.
• Unpaid fees or civil penalties are grounds for denial or revocation ⁠⁴.

The initial license fee stays at $5,603 ⁠⁷. Section 1796.37 as operative from January 1, 2029 sets the annual due date at the anniversary of the license’s issuance date ⁠⁴. Section 1796.49 exempts licenses issued or renewed between January 1, 2028 and January 1, 2029 from the 2029 fee ⁠⁷. As of 2026-10-12 neither the statute nor the CDSS pages say how a license issued in 2026 or 2027 moves onto that schedule, so ask the Home Care Services Branch which date it will use for yours before you budget.

Recent changes to watch

• Disaster inactive status (SB 582, from January 1, 2026). If your office is destroyed, significantly damaged or closed for a long period by a declared emergency, you can ask CDSS to place the license in inactive status ⁠¹⁰. You must ask within 90 days of the emergency proclamation. Inactive status is limited to two years unless extended, and CDSS may waive fees year by year. You may not operate while inactive ⁠¹⁷.
• Dementia training (SB 412, from January 1, 2027), described above ⁠⁶⁠¹⁷.
• Funding. Beginning July 1, 2026, the Legislature may use General Fund money as well as fees to run the program ⁠⁷.
• Branch status. The unit is now the Home Care Services Branch ⁠¹. The HCS 281 instructions (12/21) still say “Home Care Services Bureau” ⁠¹². Use the address and email on the CDSS Home Care Services page: [email protected], (877) 424-5778 ⁠¹¹.

For other California care licenses, see the family child care home guide and the child care center guide.

Sources

1. 1
   California Department of Social Services, Community Care Licensing Division, Home Care Services Checked 12 Oct 2026 · Back to text ↑
2. 2
   California Legislative Information, Health and Safety Code section 1796.12: definitions Checked 12 Oct 2026 · Back to text ↑
3. 3
   California Legislative Information, Health and Safety Code, Division 2, Chapter 13, Article 2: Registry and Exemptions (sections 1796.14-1796.18) Checked 12 Oct 2026 · Back to text ↑
4. 4
   California Legislative Information, Health and Safety Code, Division 2, Chapter 13, Article 6: Licensure of Home Care Organizations (sections 1796.32-1796.41) Checked 12 Oct 2026 · Back to text ↑
5. 5
   California Legislative Information, Health and Safety Code, Division 2, Chapter 13, Article 7: Home Care Organization Operating Requirements (sections 1796.42-1796.43) Checked 12 Oct 2026 · Back to text ↑
6. 6
   California Legislative Information, Health and Safety Code, Division 2, Chapter 13, Article 8: Affiliated Home Care Aides (sections 1796.44-1796.45) Checked 12 Oct 2026 · Back to text ↑
7. 7
   California Legislative Information, Health and Safety Code, Division 2, Chapter 13, Article 9: Revenues (sections 1796.47-1796.49) Checked 12 Oct 2026 · Back to text ↑
8. 8
   California Legislative Information, Health and Safety Code section 1796.52: complaints and unannounced inspections Checked 12 Oct 2026 · Back to text ↑
9. 9
   California Legislative Information, Health and Safety Code, Division 2, Chapter 13, Article 11: Enforcement (sections 1796.55-1796.59) Checked 12 Oct 2026 · Back to text ↑
10. 10
    California Legislative Information, Health and Safety Code, Division 2, Chapter 13, Article 12: Operation (sections 1796.61-1796.70) Checked 12 Oct 2026 · Back to text ↑
11. 11
    California Department of Social Services, Home Care Organization Application Process Checked 12 Oct 2026 · Back to text ↑
12. 12
    California Department of Social Services, Application Instructions for a Home Care Organization License, HCS 281 (12/21) Checked 12 Oct 2026 · Back to text ↑
13. 13
    California Department of Social Services, Home Care Services Application Fees Checked 12 Oct 2026 · Back to text ↑
14. 14
    California Department of Social Services, Home Care Services Branch, Home Care Organization License Application Process (steps overview) Checked 12 Oct 2026 · Back to text ↑
15. 15
    California Department of Social Services, Home Care Organization Inspection Checklist, HCS 9201 (11/25) Checked 12 Oct 2026 · Back to text ↑
16. 16
    California Department of Social Services, Home Care Aide Application Process Checked 12 Oct 2026 · Back to text ↑
17. 17
    California Department of Social Services, Community Care Licensing Division, PIN 26-02-HCS: 2025 Chaptered Legislation Affecting Home Care Organizations (March 27, 2026) Checked 12 Oct 2026 · Back to text ↑
18. 18
    California Department of Social Services, Fact Sheet: Licensed Versus Unlicensed Home Care Services (April 2022) Checked 12 Oct 2026 · Back to text ↑
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    California Department of Social Services, Resources for Home Care Organizations Checked 12 Oct 2026 · Back to text ↑

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