Senate BillNo. 648


Introduced by Senator Mendoza

(Coauthor: Assembly Member Levine)

February 27, 2015


An act to amend Sections 1400 and 1401 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 introduced, 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 one month after a person moves to that facility as a result of the referral. The bill would prohibit a referral agency from holding any power of attorney or any other property of a client. The bill would require that referral agencies 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:

P2    1

SECTION 1.  

Section 1400 of the Health and Safety Code is
2amended to read:

3

1400.  

(a) It is unlawful for any person, association, or
4corporation to establish, conductbegin insert,end insert or maintain a referral agency or
5to refer any person for remuneration to any extended carebegin insert facilityend insert,
6skilled nursing homebegin delete orend deletebegin insert,end insert intermediate care facilitybegin insert, or residential
7care facility for the elderly,end insert
or a distinct part of a facility providing
8extended care, skilled nursing home care, or intermediate care,
9without first having obtained a written licensebegin delete thereforend delete as provided
10in this chapter from the director or from an inspection service
11approved by the director pursuant to Section 1257.

12(b) It is unlawful for any person, association, or corporation to
13establish, conduct, or maintain a referral agency or to refer any
14person for remuneration to any person or agency outside a
15long-term health care facility, as defined in Section 1418, for
16professional services for which the long-term health care facility
17does not employ a qualified professional person to furnish a
18specific service, including, but not limited to, laboratory,
19diagnostic, or therapy services, unless the long-term health care
20facility complies with current federal and state laws regarding the
21provision of these services and all of the following conditions are
22met:

23(1) The services will be provided in accordance with
24professional standards applicable to the provision of these services
25in a long-term health care facility.

26(2) The long-term health care facility assumes responsibility
27for timeliness of the services.

28(3) Services are provided or obtained only when ordered by the
29attending physician and a notation is made in the resident’s medical
30chart reflecting that the service has been provided to the resident.

begin insert

31(c) It is unlawful for any person, association, or corporation to
32establish, conduct, or maintain a referral agency or to refer any
33person for remuneration to any residential care facility for the
34elderly for professional services if that facility does not meet the
P3    1licensing standards established in Chapter 3.2 (commencing with
2Section 1560).

end insert
3

SEC. 2.  

Section 1401 of the Health and Safety Code is amended
4to read:

5

1401.  

As used in this chapter “referral agency” means a private,
6profit or nonprofit agencybegin delete whichend deletebegin insert thatend insert is engaged in the business
7of referring persons for remuneration to any extended carebegin insert facilityend insert,
8skilled nursing homebegin delete orend deletebegin insert,end insert intermediate care facilitybegin insert, or residential
9care facility for the elderly,end insert
or a distinct part of a facility providing
10extended care, skilled nursing home care, or intermediate care.

11

SEC. 3.  

Section 1402 is added to the Health and Safety Code,
12to read:

13

1402.  

“Residential care facility for the elderly” has the same
14meaning as set forth in Section 1569.2.

15

SEC. 4.  

Section 1409.4 is added to the Health and Safety Code,
16to read:

17

1409.4.  

(a) A licensee shall provide each person receiving
18services from the licensee with written notice, in 16-point bold
19type, of all of the following:

20(1) The commission or fee that will be received by the licensee
21from the facility as a result of the referral, if applicable.

22(2) Any exchange of monetary value, including, but not limited
23to, a fee, commission, or gift received, between the facility
24personnel or staff and the licensee and the purpose for the
25exchange, if applicable.

26(3) Any fee charged to the person or persons by the licensee.
27The notice shall include a description of the services being rendered
28for that fee and the licensee’s refund policy.

29(4) The licensee’s privacy policy. The privacy policy shall be
30placed clearly and prominently at the front of the written notice.

31(5) A detailed review or summary of the licensee’s most recent
32inspection or tour, including the date of the inspection or tour, of
33the facility that is being recommended for referral and the
34frequency of the licensee’s review of the facility.

35(6) Information regarding the health care services the referred
36facility offers, including, but not limited to, intermittent skilled
37nursing care, memory care, assistance and distribution of
38medication, and other health care services.

39(7) The contact information, including address and phone
40number, of the State Department of Social Services or State
P4    1 Department of Public Health, as appropriate, and the contact
2information for filing consumer complaints.

3(b) The licensee shall retain a signed acknowledgment from the
4person stating that the person received the written notice required
5by this section. The acknowledgment shall be retained for a period
6of no less than four years.

7

SEC. 5.  

Section 1409.5 is added to the Health and Safety Code,
8to read:

9

1409.5.  

If a person moves to an extended care facility, skilled
10nursing home, intermediate care facility, or residential care facility
11for the elderly as a result of a referral, the licensee shall make a
12scheduled visit to the facility within one month of that move.

13

SEC. 6.  

Section 1409.6 is added to the Health and Safety Code,
14to read:

15

1409.6.  

It is unlawful for a licensee to share any personal
16information, including, but not limited to, the name, address, age,
17gender, or medical information of the person receiving services
18from the licensee, with any unauthorized person.

19

SEC. 7.  

Section 1409.7 is added to the Health and Safety Code,
20to read:

21

1409.7.  

It is unlawful for a licensee to hold any power of
22attorney for a person receiving placement referral services from
23that licensee, or to receive or hold a client’s property in any
24capacity.

25

SEC. 8.  

Section 1409.8 is added to the Health and Safety Code,
26to read:

27

1409.8.  

On or after July 1, 2016, all persons, associations, or
28corporations licensed pursuant to this chapter shall maintain
29liability insurance coverage in an amount of at least one million
30dollars ($1,000,000) per referred person and three million dollars
31($3,000,000) in the total annual aggregate, for negligent acts or
32omissions by the licensee.



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