Sec. 14.31.05.04. Organization and Administration

A. Incorporation.

(1) Each applicant and licensee shall be incorporated and maintain their corporate status.

(2) The applicant shall submit to the licensing agency:

(a) A certified copy of the articles of incorporation and by-laws, before licensure and upon request of the licensing agency; and

(b) At least 45 days before the proposed implementation date, any changes in the:

(i) Corporate name;

(ii) Articles of incorporation; or

(iii) By-laws.

(3) Before it submits an application for licensure to the licensing agency, an out-of-State applicant shall register and qualify with the Department of Assessments and Taxation to do business in Maryland.

B. Financial Operation. The applicant shall:

(1) Upon initial application, provide written documentation that the organization:

(a) Is solvent; and

(b) Has access to the financial resources to operate for at least 6 months;

(2) Base the financial operation of the program on an annual budget that reflects anticipated expenditures and sources of income;

(3) Have a sound plan of financing to provide sufficient funds to operate the program;

(4) Maintain insurance in the following categories:

(a) Fire;

(b) Casualty;

(c) Professional liability;

(d) General liability; and

(e) Directors' and officers' liability;

(5) Comply with the legal requirements for unemployment compensation and workers' compensation;

(6) Submit to the licensing agency an annual audit by an independent certified public accountant who is not:

(a) An employee or officer of the corporation;

(b) A member of the board of directors; or

(c) Related to an employee, officer, or director;

(7) Provide the licensing agency access to financial records or financial statements, upon request;

(8) Notify the licensing agency of any filing of bankruptcy, and keep the licensing agency informed of any legal actions resulting from the bankruptcy filing; and

(9) Notify the licensing agency of any legal action related to the licensee's residential child care programs that is filed against the licensee, and the outcome of the legal action.