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Additional CBAS Information for ADHC Agencies

Nutrition Services Division Management Bulletin
Purpose: Action Required, Beneficial Information

To: Child and Adult Care Food Program For-Profit Adult Day Health Care Sponsors

Number: NSD-CACFP-09-2012

Attention: Authorized Representatives and Program Directors

Date: April 2012

Subject: Additional Information for Adult Day Health Care Centers Regarding the Transition to the Community-based Adult Services Program

Reference: Title 7, Code of Federal Regulations parts 226.10(c) and 226.19a; Waiver 11-W-00193/9, “California Bridge to Reform Demonstration” Amendment; Management Bulletin NSD-CACFP-02-2012

This Management Bulletin (MB) provides additional information to for-profit Adult Day Health Care (ADHC) agencies participating in the Child and Adult Care Food Program (CACFP) regarding the elimination of the ADHC benefit and the creation of the Community-based Adult Services (CBAS) program to replace these ADHC services. Specifically, this MB addresses those for-profit ADHC sponsors that may be required to become nonprofit corporations in order to continue to participate in the CBAS program.


As described in the California Department of Education MB NSD-CACFP-02-2012, dated February 2012, the CBAS program operated by the California Department of Health Care Services (DHCS) provides an option for continued delivery of essential health care services to individuals who had previously participated in ADHC programs. The new CBAS program replaced ADHC services beginning March 1, 2012.

One of the requirements of the CBAS program is that for-profit agencies that have been approved for participation in the CBAS program must become nonprofit corporations by July 1, 2012. The DHCS has identified certain exceptions to this requirement and has stated that they will provide procedures for requesting such an exception in April 2012.

For more information about the CBAS requirements, please visit the DHCS CBAS Transition Web page at

For-profit Agencies Transitioning to Nonprofit Corporations

Any time an agency’s business entity type changes, the agency is required to reapply for participation in the CACFP under the agency’s new business type. Therefore, any for-profit CBAS provider that becomes a nonprofit corporation in order to comply with CBAS requirements must reapply to the CACFP to participate as a nonprofit corporation.

Once an agency has received its final determination of nonprofit status from the Internal Revenue Service, the agency may begin the application process for participation in the CACFP by contacting the agency’s assigned CACFP specialist. Agencies may find a list of contact information for specialists in the Download Forms section of the Child Nutrition Information and Payment System (CNIPS).

If a for-profit agency is not able to become a nonprofit corporation by the July 1, 2012, deadline, does not receive an exemption, and is no longer a CBAS provider, it still may be possible for the agency to continue to participate in the CACFP as a for-profit agency.

In order to claim CACFP reimbursement for meals served, Title 7, Code of Federal Regulations, Part 226.10(c) requires that for-profit adult care agencies participating in the CACFP must document each month that at least 25 percent of their enrolled eligible participants at each participating center are beneficiaries under Title XIX or Title XX. For-profit agencies must ensure they continue to meet this monthly requirement for each of their participating centers, even if they are no longer CBAS providers.

Closing Agencies

Any agency that ceases operations is required to notify the Nutrition Services Division of their intent to cancel participation in the CACFP. Agencies should download and submit the Self-Cancellation Form (Form ID CACFP 42) from the CNIPS, or send an e-mail or letter with the date of cancellation to the specialist assigned to their agency.


If you have any questions regarding this MB, please contact the CACFP specialist assigned to your agency. You will find a list of contact information for your specialist in the Download Forms section of the CNIPS.

Questions:   Nutrition Services Division | 800-952-5609
Last Reviewed: Thursday, December 1, 2016
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