BILL NUMBER: SB 648 AMENDED
BILL TEXT
AMENDED IN SENATE MAY 5, 2015
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, 1401, and 1404 of, and to add
Sections 1402, 1409.4, 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 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 prohibit a referral agency from
holding any power of attorney or any other property of a
client, and person receiving referral services, or
from disclosing any personal information of a person receiving
services, unless expressly authorized to do so. The bill would
require a referral agency to provide specified written
notice a disclosure statement, as specified, to
each person receiving its services. services,
and to retain, for 4 years, 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
disclosure statement was received. The bill would state that failure
to provide the disclosure statement or retain the acknowledgment,
with the intent to mislead the public on the nature of the services
provided, constitutes unfair competition and is subject to a civil
penalty of up to $2,500. 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.
A residential care facility for the elderly is not a referral agency
if it does either of the following:
(a) Provides discounts or other remuneration to residents or their
families for referring new or prospective clients.
(b) Provides remuneration to staff for marketing or sales offers.
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 facility doing business with the
licensee.
SEC. 5. Section 1409.4 is added to the Health and Safety Code, to
read:
1409.4. (a) A Prior to any referral, a
licensee shall provide each person receiving services from the
licensee with written notice, in 16-point bold type, of
a disclosure statement containing all of the
following:
(1) Whether the licensee has an agreement or contract with the
facility 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 between the facility
and the licensee 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. may be provided as an Internet
Web site link consistent with provisions set forth in Section 22575
of the Business and Professions Code.
(6) The date of the licensee's most recent tour or visit to the
facility and, as appropriate, a review or summary of
report of any violations as identified by the
most recent evaluation report for a residential care facility for the
elderly prepared pursuant to Section 1569.33.
(7) Information regarding the services the referred facility
offers, including, but not limited to, intermittent skilled nursing
care, memory care, assistance with and distribution of medication,
and other 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) (1) The disclosure statement shall be dated and shall contain,
in addition to the requirements of subdivision (a), the name of the
person being referred.
(2) If the disclosure is provided in written form, it shall be
printed in 16-point bold type.
(3) If the disclosure statement is provided electronically, it
shall be consistent with provisions regarding electronic records set
forth in Section 7001 of Title 15 of the United State Code, and shall
be displayed on the licensee's Internet Web site in a larger type
than the surrounding text.
(b)
(c) The licensee shall provide the written
notification disclosure statement pursuant to
subdivision (a) in the same language in which the licensee negotiates
any referral services with the person receiving services.
(c) The
(d) Prior to any referral, 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 disclosure statement required by this
section was received. The acknowledgment
signed acknowledgment shall be executed with one of the following:
(1) The signature of the person being referred, or his or her
conservator, guardian, family member, or agent under a power of
attorney on the exact disclosure statement.
(2) An electronic signature that includes the date, time, and
Internet provider address and displays the exact disclosure statement
document.
(3) A faxed confirmation that includes the date, time, and fax
number and displays the exact disclosure statement document.
(e) The acknowledgment required by this
section shall be retained for a period of no less than four
years.
(f) If the disclosure statement, or any other referral-related
document, is provided electronically, the licensee shall provide a
written copy, in a 16-point bold type, to the person being referred,
or his or her conservator, guardian, family member, or agent under
power of attorney following any referral. This written copy may be
provided by fax, if applicable.
(g) Any violation of this section with the intent to directly or
indirectly mislead the public on the nature of services provided by
the referral agency will constitute unfair competition which includes
unlawful, unfair, or fraudulent business acts or practices and
unfair, deceptive, untrue, or misleading advertising. Any person or
entity that engages in unfair competition shall be liable for a civil
penalty not to exceed two thousand five hundred dollars ($2,500) for
each violation.
SEC. 6. Section 1409.6 is added to the Health and Safety Code, to
read:
1409.6. (a) 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.
licensee, unless expressly authorized pursuant to subdivisions (b)
and (c).
(b) The person being referred, or his or her conservator,
guardian, family member, or agent under power of attorney may
expressly authorize the licensee to share his or her name and
telephone number, or email address, with the facility, or facilities,
being referred. The express authorization shall be separate from the
disclosure statement required by this article and shall include both
of the following:
(1) Disclosure, in a form consistent with the requirements of
Section 1409.4, which clearly and conspicuously states the name,
location, and contact information of the facility, or facilities,
that will receive the contact information, and the format in which
the facility will receive the contact information.
(2) The signature of the person giving authorization, consistent
with the requirements of subdivision (d) of Section 1409.4.
(c) The licensee shall only share the name and contact information
of the individual who has provided express authorization, pursuant
to subdivision (b).
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 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.