BILL NUMBER: SB 648	INTRODUCED
	BILL TEXT


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 introduced, 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.
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  or  
,  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 
therefor  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  which   that 
is engaged in the business of referring persons for remuneration to
any extended care  facility  , skilled nursing home 
or   ,  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) The commission or fee that will be received by the licensee
from the facility as a result of the referral, if applicable.
   (2) 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) 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) 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) Information regarding the health care services the referred
facility offers, including, but not limited to, intermittent skilled
nursing care, memory care, assistance and distribution of medication,
and other health care services.
   (7) 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.
   (b) The licensee shall retain a signed acknowledgment from the
person stating that the person received the written notice required
by this section. 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.
  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.
  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.