BILL NUMBER: SB 544	INTRODUCED
	BILL TEXT


INTRODUCED BY   Senator Price

                        FEBRUARY 17, 2011

   An act to amend Section 650 of the Business and Professions Code,
relating to healing arts.


	LEGISLATIVE COUNSEL'S DIGEST


   SB 544, as introduced, Price. Healing arts.
   Under existing law, a healing arts licensee, except as specified,
may refer a person to any laboratory, pharmacy, clinic, or health
care facility, as defined, even if the licensee has a proprietary
interest or coownership in the laboratory, pharmacy, clinic, or
health care facility.
   This bill would make a technical, nonsubstantive change to a
related provision.
   Vote: majority. Appropriation: no. Fiscal committee: no.
State-mandated local program: no.


THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:

  SECTION 1.  Section 650 of the Business and Professions Code is
amended to read:
   650.  (a) Except as provided in Chapter 2.3 (commencing with
Section 1400) of Division 2 of the Health and Safety Code, the offer,
delivery, receipt, or acceptance by any person licensed under this
division or the Chiropractic Initiative Act of any rebate, refund,
commission, preference, patronage dividend, discount, or other
consideration, whether in the form of money or otherwise, as
compensation or inducement for referring patients, clients, or
customers to any person, irrespective of any membership, proprietary
interest, or coownership in or with any person to whom these
patients, clients, or customers are referred is unlawful.
   (b) The payment or receipt of consideration for services other
than the referral of patients which is based on a percentage of gross
revenue or similar type of contractual arrangement shall not be
unlawful if the consideration is commensurate with the value of the
services furnished or with the fair rental value of any premises or
equipment leased or provided by the recipient to the payer.
   (c) The offer, delivery, receipt, or acceptance of any
consideration between a federally qualified health center, as defined
in Section 1396d(l)(2)(B) of Title 42 of the United States Code, and
any individual or entity providing goods, items, services,
donations, loans, or a combination thereof to the health center
entity pursuant to a contract, lease, grant, loan, or other
agreement, if that agreement contributes to the ability of the health
center entity to maintain or increase the availability, or enhance
the quality, of services provided to a medically underserved
population served by the health center, shall be permitted only to
the extent sanctioned or permitted by federal law.
   (d) Except as provided in Chapter 2.3 (commencing with Section
1400) of Division 2 of the Health and Safety Code and in Sections
654.1 and 654.2 of this code, it shall not be unlawful for any person
licensed under this division to refer a person to any laboratory,
pharmacy, clinic (including entities exempt from licensure pursuant
to Section 1206 of the Health and Safety Code), or health care
facility solely because the licensee has a proprietary interest or
coownership in the laboratory, pharmacy, clinic, or health care
facility, provided, however, that the licensee's return on investment
for that proprietary interest or coownership shall be based upon the
amount of the capital investment or proportional ownership of the
licensee which ownership interest is not based on the number or value
of any patients referred. Any referral excepted under this section
shall be unlawful if the prosecutor proves that there was no valid
medical need for the referral.
   (e) Except as provided in Chapter 2.3 (commencing with Section
1400) of Division 2 of the Health and Safety Code and in Sections
654.1 and 654.2 of this code, it shall not be unlawful to provide
nonmonetary remuneration, in the form of hardware, software, or
information technology and training services, as described in
subsections (x) and (y) of Section 1001.952 of Title 42 of the Code
of Federal Regulations, as amended October 4, 2007, as published in
the Federal Register (72 Fed. Reg. 56632 and 56644), and subsequently
amended versions.
   (f) "Health care facility"  means   shall
mean  a general acute care hospital, acute psychiatric hospital,
skilled nursing facility, intermediate care facility, and any other
health facility licensed by the State Department of Public Health
under Chapter 2 (commencing with Section 1250) of Division 2 of the
Health and Safety Code.
   (g) A violation of this section is a public offense and is
punishable upon a first conviction by imprisonment in a county jail
for not more than one year, or by imprisonment in the state prison,
or by a fine not exceeding fifty thousand dollars ($50,000), or by
both that imprisonment and fine. A second or subsequent conviction is
punishable by imprisonment in the state prison or by imprisonment in
the state prison and a fine of fifty thousand dollars ($50,000).