Amended in Senate April 7, 2015

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 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 elderlybegin delete one month after a person moves to that facility as a result of the referral.end deletebegin insert 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.end insert 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, conduct, or maintain a referral agency or
5to refer any person for remuneration to any extended care facility,
6skilled nursing home, intermediate care facility, or residential care
7facility for the elderly, or a distinct part of a facility providing
8extended care, skilled nursing home care, or intermediate care,
9without first having obtained a written license as provided in this
10chapter from the director or from an inspection service approved
11by 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.

31(c) It is unlawful for any person, association, or corporation to
32establish, conduct, or maintain a referral agency or to refer any
P3    1person for remuneration to any residential care facility for the
2elderly for professional services if that facility does not meet the
3licensing standards established in Chapter 3.2 (commencing with
4Section 1560).

5

SEC. 2.  

Section 1401 of the Health and Safety Code is amended
6to read:

7

1401.  

As used in this chapter “referral agency” means a private,
8profit or nonprofit agency that is engaged in the business of
9referring persons for remuneration to any extended care facility,
10skilled nursing home, intermediate care facility, or residential care
11facility for the elderly, or a distinct part of a facility providing
12extended care, skilled nursing home care, or intermediate care.

13

SEC. 3.  

Section 1402 is added to the Health and Safety Code,
14to read:

15

1402.  

“Residential care facility for the elderly” has the same
16meaning as set forth in Section 1569.2.

17

SEC. 4.  

Section 1409.4 is added to the Health and Safety Code,
18to read:

19

1409.4.  

(a) A licensee shall provide each person receiving
20services from the licensee with written notice, in 16-point bold
21type, of all of the following:

begin insert

22(1) Whether the licensee has an agreement or contract with the
23referral facility for client referrals.

end insert
begin delete

24(1) The

end delete

25begin insert(2)end insertbegin insertend insertbegin insertThat aend insert commission or feebegin delete thatend delete will be received by the
26licensee from the facility as a result of the referral, if applicable.

begin delete

27(2)

end delete

28begin insert(end insertbegin insert3)end insert Any exchange of monetary value, including, but not limited
29to, a fee, commission, or gift received, between the facility
30personnel or staff and the licensee and the purpose for the
31exchange, if applicable.

begin delete

32(3)

end delete

33begin insert(end insertbegin insert4)end insert Any fee charged to the person or persons by the licensee.
34The notice shall include a description of the services being rendered
35for that fee and the licensee’s refund policy.

begin delete

36(4)

end delete

37begin insert(end insertbegin insert5)end insert The licensee’sbegin insert contact information, including address and
38telephone number, and the licensee’send insert
privacy policy. The privacy
39policy shall be placed clearly and prominently at the front of the
40written notice.

begin delete

P4    1(5) A detailed review or summary of the licensee’s most recent
2inspection or tour, including the date of the inspection or tour, of
3the facility that is being recommended for referral and the
4frequency of the licensee’s review of the facility.

end delete
begin insert

5(6) The date of the licensee’s most recent tour or visit to the
6facility and, as appropriate, a review or summary of the most
7recent evaluation report for a residential care facility for the
8elderly prepared pursuant to Section 1569.33.

end insert
begin delete

9(6)

end delete

10begin insert(end insertbegin insert7)end insert Information regarding the health care services the referred
11facility offers, including, but not limited to, intermittent skilled
12nursing care, memory care, assistancebegin insert withend insert and distribution of
13medication, and other health care servicesbegin insert, if applicableend insert.

begin delete

14(7)

end delete

15begin insert(end insertbegin insert8)end insert The contact information, including address and phone
16number, of the State Department of Social Services or State
17 Department of Public Health, as appropriate, and the contact
18information for filing consumer complaintsbegin insert, including contact
19information for the local long-term care ombudsmanend insert
.

begin insert

20(b) The licensee shall provide the written notification pursuant
21to subdivision (a) in the same language in which the licensee
22negotiates any referral services with the person receiving services.

end insert
begin delete

23(b)

end delete

24begin insert(end insertbegin insertc)end insert The licensee shall retain a signed acknowledgment from the
25personbegin insert being referred, or his or her conservator, guardian, family
26member, or agent under a power of attorney,end insert
stating that thebegin delete person
27received theend delete
written notice required by this sectionbegin insert was receivedend insert.
28The acknowledgment shall be retained for a period of no less than
29four years.

30

SEC. 5.  

Section 1409.5 is added to the Health and Safety Code,
31to read:

32

1409.5.  

If a person moves to an extended care facility, skilled
33nursing home, intermediate care facility, or residential care facility
34for the elderly as a result of a referral, the licensee shall make a
35scheduled visit to the facilitybegin delete within one month of that move.end deletebegin insert at a
36time designated by the licensee and client within a reasonable time
37after the move is completed.end insert

38

SEC. 6.  

Section 1409.6 is added to the Health and Safety Code,
39to read:

P5    1

1409.6.  

It is unlawful for a licensee to share any personal
2information, including, but not limited to, the name, address, age,
3gender, or medical information of the person receiving services
4from the licensee, with any unauthorized personbegin insert or third-party
5affiliate of the licenseeend insert
.

6

SEC. 7.  

Section 1409.7 is added to the Health and Safety Code,
7to read:

8

1409.7.  

It is unlawful for a licensee to hold any power of
9attorney for a person receiving placement referral services from
10that licensee, or to receive or hold a client’s property in any
11capacity.

12

SEC. 8.  

Section 1409.8 is added to the Health and Safety Code,
13to read:

14

1409.8.  

On or after July 1, 2016, all persons, associations, or
15corporations licensed pursuant to this chapter shall maintain
16liability insurance coverage in an amount of at least one million
17dollars ($1,000,000) per referred person and three million dollars
18($3,000,000) in the total annual aggregate, for negligent acts or
19omissions by the licensee.



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