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SB-1290 Substance abuse disorder treatment.(2017-2018)

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Date Published: 04/30/2018 02:00 PM
SB1290:v97#DOCUMENT

Amended  IN  Senate  April 30, 2018
Amended  IN  Senate  March 22, 2018

CALIFORNIA LEGISLATURE— 2017–2018 REGULAR SESSION

Senate Bill No. 1290


Introduced by Senator Bates

February 16, 2018


An act to add Section 11834.19 to, and to add Article 3 (commencing with Section 11829.5) to Chapter 6 of Part 2 of Division 10.5 of, and to add Section 11834.19 to, the Health and Safety Code, relating to public health.


LEGISLATIVE COUNSEL'S DIGEST


SB 1290, as amended, Bates. Substance abuse disorder treatment.
Existing law provides for the licensure and regulation of alcoholism or drug abuse recovery or treatment facilities, as defined, by the State Department of Health Care Services. Existing law restricts a licensee from operating an alcoholism or drug abuse recovery or treatment facility beyond the conditions and limitations specified on the license.
This bill would make it unlawful for any licensee, operator, manager, consultant, employee, or patient of an alcoholism or drug abuse recovery or treatment facility, or any other person to, among other things, offer or pay a commission, benefit, bonus, rebate, kickback, or bribe, or engage in any split-fee arrangement to induce the referral of a patient or patronage to or from an alcoholism or drug abuse recovery or treatment facility, or to solicit or receive a commission, benefit, bonus, rebate, kickback, or bribe in return for referring a patient or patronage to or from an alcoholism or drug abuse recovery or treatment facility.
The bill would establish the Commission on Substance Abuse and Recovery to provide comprehensive recommendations to the Legislature to create a coordinated and unified effort among state and local agencies to effectively confront the statewide addiction and substance abuse crisis with appropriate care and consideration of local effects. The bill would also state the intent of the Legislature to encourage public and private sector businesses and organizations providing alcohol or drug abuse substance use disorder treatment and supportive services, including in residential settings, to provide those treatments and services with integrity and to ensure the quality of life for patients and individuals receiving these services.
Vote: MAJORITY   Appropriation: NO   Fiscal Committee: YES   Local Program: NO  

The people of the State of California do enact as follows:


SECTION 1.

 It is the intent of the Legislature to encourage public and private sector businesses and organizations providing alcohol or drug abuse substance use disorder treatment and supportive services, including in residential settings, to provide those treatments and services with integrity and to ensure the quality of life for patients and individuals receiving these services. Therefore, the Legislature encourages all of the following:
(a) All patients and individuals receiving care for chronic substance abuse addiction substance use disorders are to be treated with honesty, respect, and dignity.
(b) All patients and individuals receiving care are to be fully informed of what to expect from treatment, including the cost and duration of treatment, and the likelihood of success.
(c) All patients and individuals are to receive care directed by clinical professionals licensed and certified by the State of California. from qualified providers as determined by the State Department of Health Care Services.
(d) All patients and individuals are to receive an individualized, outcome-driven treatment plan.

SEC. 2.

 Article 3 (commencing with Section 11829.5) is added to Chapter 6 of Part 2 of Division 10.5 of the Health and Safety Code, to read:
Article  3. Commission on Substance Abuse and Recovery

11829.5.
 (a) The Commission on Substance Abuse and Recovery is hereby established to provide comprehensive recommendations to the Legislature to create a coordinated and unified effort among state and local agencies to effectively confront the statewide addiction and substance abuse crisis with appropriate care and consideration of local effects.
(b) The commission shall review standards of care for patients, including, but not limited to, all of the following:
(1) Known best practices and evidence-based care.
(2) Consumer protections for patients.
(3) How patients are referred for care, including if any are recruited from either outside of the state or nonlocal areas.
(4) The availability of providers, facilities, and residences across the state.
(5) Market and local concentration of care providers, facilities, and residences.
(6) The education, training, qualifications, and efficacy of care providers, including any improvements necessary in the education, training, qualifications, and certification of care providers.
(7) Local use issues.

SEC. 3.

 Section 11834.19 is added to the Health and Safety Code, to read:

11834.19.
 (a)It is unlawful for any licensee, operator, manager, consultant, employee, or patient of an alcoholism or drug abuse recovery or treatment facility, or any other person to do any of the following:

(1)

(a) Offer or pay a commission, benefit, bonus, rebate, kickback, or bribe, directly or indirectly, in cash or in kind, or engage in any split-fee arrangement, in any form whatsoever, to induce the referral of a patient or patronage to or from an alcoholism or drug abuse recovery or treatment facility.

(2)

(b) Solicit or receive a commission, benefit, bonus, rebate, kickback, or bribe, directly or indirectly, in cash or in kind, or engage in any split-fee arrangement, in any form whatsoever, in return for referring a patient or patronage to or from an alcoholism or drug abuse recovery or treatment facility.

(3)

(c) Solicit or receive a commission, benefit, bonus, rebate, kickback, or bribe, directly or indirectly, in cash or in kind, or engage in any split-fee arrangement, in any form whatsoever, in return for the acceptance or acknowledgment of treatment from an alcoholism or drug abuse recovery or treatment facility.

(4)

(d) Aid, abet, advise, broker, steer, or otherwise participate in the conduct prohibited under paragraphs (1) to (3), subdivisions (a) to (c), inclusive.

(b)This section shall not apply to any of the following:

(1)A discount, payment, waiver of payment, or payment practice not prohibited by 42 U.S.C. 1320a-7b(b) or regulations promulgated thereunder.

(2)A payment, compensation, or financial arrangement within a medical group practice if the payment, compensation, or arrangement is not to or from persons who are not members of the group practice.

(3)Payments to an alcoholism or drug abuse recovery or treatment facility for professional consultation services.

(4)Commissions, fees, or other remuneration lawfully paid to insurance agents.

(5)Payments by a health insurer who reimburses, provides, offers to provide, or administers substance abuse goods or services under a health benefit plan.

(6)Payments to or by an alcoholism or drug abuse recovery or treatment facility that has contracted with a health insurer, a health insurance purchasing alliance, or the Medicare or Medicaid programs to provide substance abuse goods or services under a health benefit plan if the payments are for goods or services under the plan.

(7)Insurance advertising gifts lawfully permitted.

(8)Commissions or fees paid to a nurse registry licensed for referring persons providing substance abuse services to clients of the nurse registry.

(9)Payments by an alcoholism or drug abuse recovery or treatment facility to a substance abuse information service that provides information upon request and without charge to consumers about providers of substance abuse goods or services to enable consumers to select an appropriate alcoholism or drug abuse recovery or treatment facility if the information service meets all of the following requirements:

(A)Does not attempt through its standard questions for solicitation of consumer criteria or through any other means to steer or lead a consumer to select or consider selection of a particular alcoholism or drug abuse recovery or treatment facility.

(B)Does not provide or represent itself as providing diagnostic or counseling services or assessments of illness or injury and does not make any promises of cure or guarantees of treatment.

(C)Does not provide or arrange for transportation of a consumer to or from the location of an alcoholism or drug abuse recovery or treatment facility.

(D)Charges and collects fees from an alcoholism or drug abuse recovery or treatment facility participating in its services that are set in advance, are consistent with the fair market value for those information services, and are not based on the potential value of a patient or patients to an alcoholism or drug abuse recovery or treatment facility or of the goods or services provided by the alcoholism or drug abuse recovery or treatment facility.