Oklahoma 2024 Regular Session

Oklahoma House Bill HB3919 Compare Versions

Version 1 (Old)

Version 2 (New)

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1		-	An Act
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3	34		BILL NO. 3919 By: West (Tammy), Caldwell
4	35		(Chad), and Pittman of the
5	36		House
6	37
7	38		and
8	39
9	40		Garvin of the Senate
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11	42
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13	44
14		-
15		-
16		-	An Act relating to assisted living centers and
	45	+	An Act relating to assisted living centers or
17	46		continuum of care facilities; defining terms;
18	47		mandating disclosure from referral agencies;
19	48		providing for prohibited conduct; providing duties
20		-	for referral agencies; providing compensation for
21		-	referrals through written contracts ; providing for
22		-	civil penalty; amending 63 O.S. 2021, Section 1 -742,
23		-	which relates to prohibited acts and penalties;
24		-	adding exception; providing for codification; and
25		-	providing an effective date.
	49	+	for referral agencies; regulating compensation;
	50	+	providing for civil penalty; amending 63 O.S. 2021,
	51	+	Section 1-742, which relates to prohibited acts and
	52	+	penalties; adding exception; providing for
	53	+	codification; and providing an effective date.
26	54
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29	57
30		-	SUBJECT: Assisted living centers and continuum of care facilities
31	58
32	59		BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA:
33		-
34	60		SECTION 1. NEW LAW A new section of law to be codified
35	61		in the Oklahoma Statutes as Section 1 -866.1 of Title 63, unless
36	62		there is created a duplication in numbering, reads as follows:
37		-
38	63		As used in this section:
39		-
40	64		1. "Assisted living center" means any home or establishment
41	65		offering, coordinating, or providing services to two or more persons
42	66		who:
43		-
44	67		a. are domiciled therein,
45	68
46		-	b. are unrelated to the operator, ENR. H. B. NO. 3919 Page 2
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	95	+	b. are unrelated to the operator,
48	96		c. by choice or functional impairments, need assistance
49	97		with personal care or nursing supervision,
50		-
51	98		d. may need intermittent or unscheduled nursing care,
52		-
53	99		e. may need medication assistance, and
54		-
55	100		f. may need assistance with transfer and/or ambulation;
56		-
57	101		2. "Consumer" means an individual seeking a referral to an
58	102		assisted living center or continuum of care facility on behalf of
59	103		themselves or someone else as a representative;
60		-
61	104		3. "Continuum of care facility" mea ns a home, establishment, or
62	105		institution providing nursing facility services as defined in
63	106		Section 1-1902 of Title 63 of the Oklahoma Statutes and one or both
64	107		of the following:
65		-
66	108		a. assisted living center services as defined in the
67	109		Continuum of Care Assisted Living Act, and
68		-
69	110		b. adult day care center services as defined in Section
70	111		1-872 of Title 63 of the Oklahoma Statutes;
71		-
72	112		4. "Fee" means a commission paid to an individual or entity in
73	113		exchange for referring a consumer to an assisted living center or
74	114		continuum of care facility which results in a resident move -in;
75		-
76	115		5. "Referral" means iden tifying and referring a consumer to an
77	116		assisted living center or continuum of care facility to facilitate
78	117		an evaluation, in consultation with the community, of whether the
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	119	+	SENATE FLOOR VERSION - HB3919 SFLR Page 3
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79	145		assisted living center or continuum of care facility is a suitable
80	146		option for the consumer;
81		-
82	147		6. "Referral agency" means an entity that provides referrals to
83	148		assisted living centers or continuum of care facilities for a fee
84	149		collected from a consumer or an assis ted living center or continuum
85	150		of care facility. The term does not include:
86		-
87	151		a. an assisted living center or continuum of care
88	152		facility, its owners, or any of its employees or
89	153		contractors in their individual capacity, or
90		-	ENR. H. B. NO. 3919 Page 3
91	154		b. a resident or resident's family member who refers a
92	155		consumer to the assisted living center or continuum of
93	156		care facility regardless of whether that individual
94	157		receives a discount or other remuneration from the
95	158		assisted living center or continuum of care facility.
96		-
97	159		SECTION 2. NEW LAW A new section of law to be codified
98	160		in the Oklahoma Statutes as Section 1-866.2 of Title 63, unless
99	161		there is created a duplication in numbering, reads as follows:
100		-
101	162		A. At the time of the referral, a referral agency shall
102	163		disclose the following to the consumer:
103		-
104	164		1. A description of the referral agency's service;
105		-
106	165		2. A statement on whether the consumer or the assisted living
107	166		center or continuum of care facility to which the consumer is
108	167		referred is responsible for paying the referral fee; and
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109	194
110	195		3. A statement that the consumer may, without cause or penalty,
111	196		stop using the referral agency. The referral agency shall
112	197		communicate this decision by the consumer to all assisted living
113	198		centers or continuum of care facilities to which the consumer has
114	199		been referred upon being notified by the consumer that they plan to
115	200		stop using the referral agency. Notification by a consumer shall
116	201		not affect the contractual agreement between the referral agency and
117	202		the assisted living center or continuum of care facil ities.
118		-
119	203		B. The referral agency shall make the disclosure statement
120	204		available to a consumer in a clear and conspicuous written physical
121	205		or electronic document.
122		-
123	206		C. The referral agency shall take into account the consumers'
124	207		preferences in selecting the assis ted living center or continuum of
125	208		care facility to which it refers the consumer and cost shall not be
126	209		used as the sole factor in that selection.
127		-
128	210		D. An assisted living center or continuum of care facility
129	211		shall not be required to contract with or do busine ss with a
130	212		referral agency.
131		-
132	213		SECTION 3. NEW LAW A new sect ion of law to be codified
133	214		in the Oklahoma Statutes as Section 1 -866.3 of Title 63, unless
134	215		there is created a duplication in numbering, reads as follows:
135		-	ENR. H. B. NO. 3919 Page 4
136	216		A referral agency shall not:
137		-
138	217		1. Refer a consumer to an assisted living center or continuum
139	218		of care facility in which the referral agency has an ownership,
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140	246		management, or financial interest excluding a de minimis interest,
141	247		such as a direct or indirect ownership of less than one percent (1%)
142	248		of an assisted living center or continuum of care facility;
143		-
144	249		2. Hold a power of attorney or hold property in any capacity
145	250		for a consumer or for whom a referral is made;
146		-
147	251		3. Refer a consumer to an assisted living center or continuum
148	252		of care facility that, to the referral agency's knowledge, is
149	253		unlicensed and is not exempt from licensing under applicable law;
150		-
151	254		4. Collect a fee for a consumer transferring from one location
152	255		of an assisted living center or continuum of care facility to
153	256		another location of the same assisted living center or continuum of
154	257		care facility unless the consumer has engaged the referral agency to
155	258		help facilitate the transfer to a new location and the consumer has
156	259		been provided with more than one referral; or
157		-
158	260		5. Collect a fee for a referral after the expiration of the
159	261		referral according to the contract between the referral agency and
160	262		the assisted living center or continuum of care facility.
161		-
162	263		SECTION 4. NEW LAW A new section of law to be codified
163	264		in the Oklahoma Statutes as Section 1 -866.4 of Title 63, unless
164	265		there is created a dupli cation in numbering, reads as follows:
165		-
166	266		A referral agency shall:
167		-
168	267		1. Use a nationally accredited service provider to obtain
169	268		criminal history record information upon hire, on a r eferral agency
170	269		employee who has direct contact with a consumer; provided, however,
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171	297		that a referral agency employee who physically enters an assisted
172	298		living center or continuum of care facility with the purpose of
173	299		making a referral on behalf of a consumer, shall obtain a criminal
174	300		background check, in accordance with paragraph 1 of subs ection I of
175	301		Section 1-1947 of Title 63 of the Oklahoma Statutes;
176		-
177	302		2. Maintain liability insurance coverage for negligent acts or
178	303		omissions by the referral agency or its employe es;
179		-	ENR. H. B. NO. 3919 Page 5
180	304		3. Audit each assisted living center or continuum of care
181	305		facility to which the referral agency provides referrals to ensure
182	306		that any applicable license is in good standing and maintain a
183	307		record of that audit;
184		-
185	308		4. Provide all referral agency employees whose job
186	309		responsibilities require direct contact with a consumer with
187	310		introductory training, including training on the referral agency's
188	311		code of conduct, before the employee begins performing those
189	312		responsibilities;
190		-
191	313		5. Provide an assisted living center or continuum of care
192	314		facility with the time and date on which any referral has been made
193	315		to the assisted living center or continuum of care facility in a
194	316		clear and conspicuous written physical or electronic document on or
195	317		before the date the consumer is ad mitted; and
196		-
197	318		6. After November 1, 2024, provide any new written contract
198	319		with an assisted living center or continuum of care facility for
199	320		which it is making referrals the length of time that a referral
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200	348		agency shall be paid from the date that the referral w as made to the
201	349		assisted living center or continuum of care facility not to exceed
202	350		thirty-six (36) months.
203		-
204	351		SECTION 5. NEW LAW A new section of law to be codified
205	352		in the Oklahoma Statutes as Section 1 -866.5 of Title 63, unless
206	353		there is created a duplication in numbering, reads as follows:
207		-
208	354		A. A written contract e ntered into between a referral agency
209	355		and an assisted living center or continuum of care facility may
210	356		provide for the compensation of a referral agency for all referrals
211	357		made to an assisted living center or continuum of care facility;
212	358		such compensation may include, without limitation, amounts based on
213	359		volume or value of referrals or business otherwise generated between
214	360		the parties.
215		-
216	361		B. Compensation paid to a referral agency that complies with
217	362		the requirements set forth in this section will not be grounds fo r
218	363		disciplinary action against a long -term care administrator pursuant
219	364		to OAC 310:679-10-20 or any other rule or statute regulating long -
220	365		term care administrators.
221		-
222	366		SECTION 6. NEW LAW A new section of law to be codified
223	367		in the Oklahoma Statutes as Section 1 -866.6 of Title 63, unless
224		-	there is created a duplication in numbering, reads as follows: ENR. H. B. NO. 3919 Page 6
225		-
	368	+	there is created a duplication in numbering, reads as follows:
226	369		A. A referral agency that violates this act is subject to a
227	370		civil penalty in an amount equal to Five Hundred Dollars ($500.00)
228	371		for each violation.
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229	398
230	399		B. The Attorney General or a district attorney may bring an
231	400		action to recover a civil penalty imposed under subsection A of this
232	401		section and to restrain and enjoin a viola tion of this act. The
233	402		Attorney General or a district attorney may recover attorney fees
234	403		and litigation costs incurred in bringing the action.
235		-
236	404		SECTION 7. AMENDATORY 63 O.S. 2021, Section 1 -742, is
237	405		amended to read as follows:
238		-
239	406		Section 1-742. A. 1. Any person who intentionally or
240	407		knowingly pays to or accepts anything of value from any person,
241	408		firm, association of persons, partnership or corporation for
242	409		securing or soliciting patients for any health care professional,
243	410		health care provider, or other entity providing health care services
244	411		in this state, upon conviction, shall be guilty of a misdemeanor and
245	412		shall be punished by a fine of not less than Five Hundred Dollars
246	413		($500.00) and not more than Two Thousand Dollars ($2,000.00).
247		-
248	414		2. In addition to any other penalties or remedies provided by
249	415		law:
250		-
251	416		a. a violation of this section by a health care
252	417		professional or health care provider shall be grounds
253	418		for disciplinary action by the state agency licensing,
254	419		certifying or registering such prof essional or
255	420		provider, and
256		-
257	421		b. the state agency licensing, certifying , or registering
258	422		such professional or provider may institute an action
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259	450		to enjoin violation or potential violation of this
260	451		section.
261		-
262	452		B. This section shall not be construed to prohibit:
263		-
264	453		1. Advertising, except that advertising which:
265		-
266	454		a. is false, misleading or deceptive,
267		-
268	455		b. advertises professional superiority or the performance
269		-	of a professional service in a superior manner, and ENR. H. B. NO. 3919 Page 7
270		-
	456	+	of a professional service in a superior manner, and
271	457		c. is not readily subject to verification;
272		-
273	458		2. Remuneration for a dvertising, marketing , or other services
274	459		that are provided for the purpose of securing or soliciting
275	460		patients, provided the remuneration is:
276		-
277	461		a. set in advance,
278		-
279	462		b. consistent with the fair market value of the services,
280	463		and
281		-
282	464		c. not based on the volume or valu e of any patient
283	465		referrals or business otherwise generated between the
284	466		parties; and
285		-
286	467		3. Any payment, business arrangements , or payments practice not
287	468		prohibited by 42 U.S.C., Section 1320a -7b(b), or any regulations
288	469		promulgated pursuant thereto.
289		-
290	470		C. This section shall not apply to licensed insurers, including
291	471		but not limited to, group hospital service corporations or health
292	472		maintenance organizations which reimburse, provide, offer to
293	473		provide, or administer hospital, medical, dental , or other health-
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294	501		related benefits under a health benefits plan for which it is the
295	502		payor when it is providi ng those services under a health benefits
296	503		plan, or referral agency as defined in paragraph 4 of Section 1 of
297	504		this act.
298		-
299	505		D. For purposes of this section:
300		-
301	506		1. "Health care profes sional" means any person who offers or
302	507		provides counseling or health or mental health care under a license,
303	508		certification or registration issued pursuant to Title 59 of the
304	509		Oklahoma Statutes; and
305		-
306	510		2. "Health care provider" means any hospital or related
307	511		institution offering or providing health care services licensed
308	512		pursuant to Section 1-702 of this title.
309		-
310	513		SECTION 8. This act shall become effective November 1, 2024.
311		-	ENR. H. B. NO. 3919 Page 8
312		-	Passed the House of Representatives the 14th day of March, 2024.
313		-
314		-
315		-
316		-
317		-	Presiding Officer of the House
318		-	of Representatives
319		-
320		-
321		-
322		-	Passed the Senate the 16th day of April, 2024.
323		-
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326		-
327		-	Presiding Officer of the Senate
328		-
329		-
330		-	OFFICE OF THE GOVERNOR
331		-	Received by the Office of the Governor this ____________________
332		-	day of ___________________, 20_______, at _______ o'clock _______ M.
333		-	By: _________________________________
334		-	Approved by the Governor of the State of Oklahoma this _________
335		-	day of ___________________, 20_______, at _______ o'clock _______ M.
336		-
337		-
338		-	_________________________________
339		-	Governor of the State of Oklahoma
340		-
341		-	OFFICE OF THE SECRETARY OF STATE
342		-	Received by the Office of the Secretary o f State this __________
343		-	day of ___________________, 20_______, at _______ o'clock _______ M.
344		-	By: _________________________________
345		-
	514	+	COMMITTEE REPORT BY: COMMITTEE ON BUSINESS AND COMMERCE
	515	+	April 1, 2024 - DO PASS