BILL NUMBER: SB 648 AMENDED
BILL TEXT
AMENDED IN SENATE APRIL 20, 2015
AMENDED IN SENATE APRIL 7, 2015
INTRODUCED BY Senator Mendoza
(Coauthor: Assembly Member Levine)
FEBRUARY 27, 2015
An act to amend Sections 1400 and 1401
1400, 1401, and 1404 of, and to add Sections 1402,
1409.4, 1409.5, 1409.6, 1409.7, and 1409.8 to, the
Health and Safety Code, relating to health and care facilities.
LEGISLATIVE COUNSEL'S DIGEST
SB 648, as amended, Mendoza. Health and care facilities: referral
agencies.
Existing law requires a health care referral
agency to obtain a license from the State Department of Public Health
in order to refer a person to any extended care facility, skilled
nursing home, or intermediate care facility. Existing law exempts a
local public agency performing referral services without cost from
these provisions. Under existing law, a violation of these provisions
is subject to a civil penalty and suspension or revocation of the
license.
This bill would additionally require a referral agency to obtain a
license in order to refer a person to a residential care facility
for the elderly. The bill would require a referral agency to
visit an extended care facility, skilled nursing home, intermediate
care facility, or residential care facility for the elderly at a time
designated by the licensee and client within a reasonable time after
a move is completed as a result of a referral from that referral
agency. The bill would prohibit a referral agency from
holding any power of attorney or any other property of a
client. The bill client, and would require
that referral agencies a referral agency to
provide specified written notice to each person receiving its
services. The bill would also require referral agencies to maintain
liability insurance in specified amounts.
Vote: majority. Appropriation: no. Fiscal committee: yes.
State-mandated local program: no.
THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:
SECTION 1. Section 1400 of the Health and Safety Code is amended
to read:
1400. (a) It is unlawful for any person, association, or
corporation to establish, conduct, or maintain a referral agency or
to refer any person for remuneration to any extended care facility,
skilled nursing home, intermediate care facility, or residential care
facility for the elderly, or a distinct part of a facility providing
extended care, skilled nursing home care, or intermediate care,
without first having obtained a written license as provided in this
chapter from the director or from an inspection service approved by
the director pursuant to Section 1257.
(b) It is unlawful for any person, association, or corporation to
establish, conduct, or maintain a referral agency or to refer any
person for remuneration to any person or agency outside a long-term
health care facility, as defined in Section 1418, for professional
services for which the long-term health care facility does not employ
a qualified professional person to furnish a specific service,
including, but not limited to, laboratory, diagnostic, or therapy
services, unless the long-term health care facility complies with
current federal and state laws regarding the provision of these
services and all of the following conditions are met:
(1) The services will be provided in accordance with professional
standards applicable to the provision of these services in a
long-term health care facility.
(2) The long-term health care facility assumes responsibility for
timeliness of the services.
(3) Services are provided or obtained only when ordered by the
attending physician and a notation is made in the resident's medical
chart reflecting that the service has been provided to the resident.
(c) It is unlawful for any person, association, or corporation to
establish, conduct, or maintain a referral agency or to refer any
person for remuneration to any residential care facility for the
elderly for professional services if that facility does not meet the
licensing standards established in Chapter 3.2 (commencing with
Section 1560).
SEC. 2. Section 1401 of the Health and Safety Code is amended to
read:
1401. As used in this chapter "referral agency" means a private,
profit or nonprofit agency that is engaged in the business of
referring persons for remuneration to any extended care facility,
skilled nursing home, intermediate care facility, or residential care
facility for the elderly, or a distinct part of a facility providing
extended care, skilled nursing home care, or intermediate care.
SEC. 3. Section 1402 is added to the Health and Safety Code, to
read:
1402. "Residential care facility for the elderly" has the same
meaning as set forth in Section 1569.2.
SEC. 4. Section 1404 of the Health and
Safety Code is amended to read:
1404. No licensee under this chapter shall have a direct or
indirect financial interest in any medical
facility doing business with the licensee.
SEC. 4. SEC. 5. Section 1409.4 is
added to the Health and Safety Code, to read:
1409.4. (a) A licensee shall provide each person receiving
services from the licensee with written notice, in 16-point bold
type, of all of the following:
(1) Whether the licensee has an agreement or contract with the
referral facility for client referrals.
to which the person is being referred.
(2) That a commission or fee will be received by the licensee from
the facility as a result of the referral, if applicable.
(3) Any gift or exchange of monetary value,
including, but not limited to, a fee, commission, or gift received,
value between the facility personnel or
staff and the licensee and the purpose for the
exchange, if applicable. that is in addition to, or in
lieu of, a commission or fee.
(4) Any fee charged to the person or persons by the licensee. The
notice shall include a description of the services being rendered for
that fee and the licensee's refund policy.
(5) The licensee's contact information, including address and
telephone number, and the licensee's privacy policy. The privacy
policy shall be placed clearly and prominently at the front of the
written notice.
(6) The date of the licensee's most recent tour or visit to the
facility and, as appropriate, a review or summary of the most recent
evaluation report for a residential care facility for the elderly
prepared pursuant to Section 1569.33.
(7) Information regarding the health care
services the referred facility offers, including, but not limited to,
intermittent skilled nursing care, memory care, assistance with and
distribution of medication, and other health care
services, if applicable.
(8) The contact information, including address and phone number,
of the State Department of Social Services or State Department of
Public Health, as appropriate, and the contact information for filing
consumer complaints, including contact information for the local
long-term care ombudsman.
(b) The licensee shall provide the written notification pursuant
to subdivision (a) in the same language in which the licensee
negotiates any referral services with the person receiving services.
(c) The licensee shall retain a signed acknowledgment from the
person being referred, or his or her conservator, guardian, family
member, or agent under a power of attorney, stating that the written
notice required by this section was received. The acknowledgment
shall be retained for a period of no less than four years.
SEC. 5. Section 1409.5 is added to the Health
and Safety Code, to read:
1409.5. If a person moves to an extended care facility, skilled
nursing home, intermediate care facility, or residential care
facility for the elderly as a result of a referral, the licensee
shall make a scheduled visit to the facility at a time designated by
the licensee and client within a reasonable time after the move is
completed.
SEC. 6. Section 1409.6 is added to the Health and Safety Code, to
read:
1409.6. It is unlawful for a licensee to share any personal
information, including, but not limited to, the name, address, age,
gender, or medical information of the person receiving services from
the licensee, with any unauthorized person or third-party affiliate
of the licensee.
SEC. 7. Section 1409.7 is added to the Health and Safety Code, to
read:
1409.7. It is unlawful for a licensee to hold any power of
attorney for a person receiving placement referral services from that
licensee, or to receive or hold a client's property in any capacity.
SEC. 8. Section 1409.8 is added to the Health and Safety Code, to
read:
1409.8. On or and after July 1,
2016, all persons, associations, or corporations licensed pursuant to
this chapter shall maintain liability insurance coverage in an
amount of at least one million dollars ($1,000,000) per referred
person and three million dollars ($3,000,000) in the total annual
aggregate, for negligent acts or omissions by the licensee.