California Senate Bill SB648 Amended / Bill

 BILL NUMBER: SB 648AMENDED BILL TEXT 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 and 1401   1400,   1401, and 1404  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 elderly 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.  The bill would prohibit a referral agency from holding any power of attorney or any other property of a  client. The bill   client, and  would require  that referral agencies   a referral agency to  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: 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. 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  medical  facility doing business with the licensee.  SEC. 4.   SEC. 5.  Section 1409.4 is added to the Health and Safety Code, to read: 1409.4. (a) A licensee shall provide each person receiving services from the licensee with written notice, in 16-point bold type, of all of the following: (1) Whether the licensee has an agreement or contract with the  referral  facility  for client referrals.   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, including, but not limited to, a fee, commission, or gift received,   value  between the facility  personnel or staff  and the licensee  and the purpose for the exchange, if applicable.   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. (6) The date of the licensee's most recent tour or visit to the facility and, as appropriate, a review or summary of the most recent evaluation report for a residential care facility for the elderly prepared pursuant to Section 1569.33. (7) Information regarding the  health care  services the referred facility offers, including, but not limited to, intermittent skilled nursing care, memory care, assistance with and distribution of medication, and other  health care  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) The licensee shall provide the written notification pursuant to subdivision (a) in the same language in which the licensee negotiates any referral services with the person receiving services. (c) 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 required by this section was received. The acknowledgment shall be retained for a period of no less than four years.  SEC. 5.   Section 1409.5 is added to the Health and Safety Code, to read: 1409.5. If a person moves to an extended care facility, skilled nursing home, intermediate care facility, or residential care facility for the elderly as a result of a referral, the licensee shall make a scheduled visit to the facility at a time designated by the licensee and client within a reasonable time after the move is completed.  SEC. 6. Section 1409.6 is added to the Health and Safety Code, to read: 1409.6. 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. 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  or   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.