BILL NUMBER: SB 648 AMENDED
BILL TEXT
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 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 one
month after a person moves to that facility as a result of the
referral. 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 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:
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 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.
(1) The
(2) That a commission or fee
that will be received by the licensee from the
facility as a result of the referral, if applicable.
(2)
( 3) Any exchange of monetary value,
including, but not limited to, a fee, commission, or gift received,
between the facility personnel or staff and the licensee and the
purpose for the exchange, if applicable.
(3)
( 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.
(4)
( 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.
(5) A detailed review or summary of the licensee's most recent
inspection or tour, including the date of the inspection or tour, of
the facility that is being recommended for referral and the frequency
of the licensee's review of the facility.
(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.
(6)
( 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 .
(7)
( 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.
(b)
( 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 person received 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 within one
month of that move. 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 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.