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Can I offer a referral program for my customers in California? What are the requirements?

Based on the documents provided, it is possible to offer a referral program for customers in California. However, there are certain requirements that must be met.

License Required

According to 22 CACR Section 74101, no person, partnership, firm, corporation, or association shall operate, establish, conduct, or maintain a referral agency or hold out, represent, or advertise by any means that it operates or conducts a referral agency, without first obtaining a license from the Department.

Content of Application for License

The application for a referral agency license must contain the following information, as per 22 CACR Section 74105:

  • Name of applicant
  • Name of referral agency
  • Location of the referral agency
  • Business or occupation engaged in by each applicant, partner, officer, and director for at least two years immediately preceding the filing of the application
  • Evidence of the right to occupy the premises where the referral agency is to be located
  • A schedule of fees to be charged and collected by the referral agency, and a statement of the method by which each fee is to be computed or determined
  • Such other information or documents as may be required by the Department for the proper administration and enforcement of the licensing law and requirements.

NO Fees Charged for Referral Services

As per 5 CACR Section 18242, the contractor shall not charge a fee for resource and referral services funded by the California Department of Education except for the recovery of printing and duplication costs, the costs of damaged or lost materials from the lending library or late fees.

Separate Licenses

Separate licenses shall be required for referral agencies which are maintained on separate, noncontiguous premises, as per 22 CACR Section 74113.

Therefore, to offer a referral program for customers in California, you must obtain a referral agency license from the Department, and you cannot charge a fee for the referral services. Additionally, if you have referral agencies on separate premises, you must obtain separate licenses for each.

Jurisdiction

California