BILL ANALYSIS Ó
AB 2744
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Date of Hearing: May 4, 2016
ASSEMBLY COMMITTEE ON APPROPRIATIONS
Lorena Gonzalez, Chair
AB
2744 (Gordon) - As Amended April 11, 2016
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Urgency: No State Mandated Local Program: NoReimbursable: No
SUMMARY:
This bill provides that payment or receipt of consideration for
advertising for prepaid services offered by a licensed healing
arts practitioner, subject to certain exclusions, does not
constitute a referral of those services, and specifies that if
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the prepaid service is not appropriate for the purchaser, the
licensee must provide a full price refund to the purchaser, as
specified.
FISCAL EFFECT:
Any costs to healing arts boards within the Department of
Consumer Affairs are expected to be minor and absorbable.
COMMENTS:
1)Purpose. This bill seeks to clarify that the purchase of
professional services from licensed healing arts professionals
through an online advertising website (like LivingSocial or
Groupon) does not constitute an impermissible referral for
those services from the online advertisement originator. This
bill is sponsored by the Internet Association and has no
opposition.
2)Background. Under existing law, BPC Section 650(a), a licensed
healing arts professional may not accept any type of
compensation for referring an individual to any other person
for services. This prohibition on the payment of a healthcare
provider for a referral of services was intended to protect
patients and consumers from providers receiving payments or
"kickbacks" for sending patients to certain providers.
Anti-kickback laws were enacted to help ensure that healthcare
decisions are made in the best interest of the consumer. In
California, a violation of the no-referral laws by a licensee
is unprofessional conduct and cause for disciplinary action.
Examples of advertised healthcare-related services commonly
purchased through an Internet platform include laser toenail
fungus removal, nonsurgical facelifts, spider vein treatments,
counseling, and integrative manual therapy sessions. There is
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a pending Attorney General (AG) opinion on the question of
whether a healthcare professional may offer online discounts
for their services through a third-party internet marketer.
The opinion request, 13-1203, is currently pending completion
in the AG's office. This bill is intended to clarify the
practice of offering services through third-party internet
marketer is not a patient referral.
Analysis Prepared by:Lisa Murawski / APPR. / (916)
319-2081