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AB-940 Recovery residences.(2019-2020)

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Date Published: 01/06/2020 09:00 PM
AB940:v95#DOCUMENT

Amended  IN  Assembly  January 06, 2020
Amended  IN  Assembly  April 22, 2019
Amended  IN  Assembly  April 10, 2019
Amended  IN  Assembly  March 12, 2019

CALIFORNIA LEGISLATURE— 2019–2020 REGULAR SESSION

Assembly Bill
No. 940

Introduced by Assembly Member Melendez
(Principal coauthor: Senator Bates)

February 20, 2019

An act to amend Sections 11831.6 and 11831.7 of the Health and Safety Code, relating to recovery residences.


LEGISLATIVE COUNSEL'S DIGEST


AB 940, as amended, Melendez. Recovery residences.
Existing law provides for the administration of public health, as specified. Existing law also provides for the licensure and regulation by the State Department of Health Care Services of alcoholism and drug abuse recovery and treatment facilities for adults. Existing law prohibits specified persons, programs, or entities from giving or receiving remuneration or anything of value for the referral of a person who is seeking alcoholism or drug abuse recovery and treatment services. Existing law authorizes the department to investigate and impose specified sanctions for violations of that prohibition, including assessing a penalty or revoking a license.
This bill would prohibit a recovery residence, as defined, or an owner, partner, officer, director, or shareholder of a recovery residence, from giving or receiving remuneration or anything of value for the referral of a person who is seeking alcoholism or drug abuse recovery and treatment services, and would authorize the department to assess a penalty upon a recovery residence, or an owner, partner, officer, director, or shareholder of a recovery residence, of no more than $10,000 for each violation.
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 prohibit a recovery residence from engaging in practices including, but not limited to, the exchange of payment or other compensation for bringing a patient to the recovery residence, commonly referred to as “patient brokering.”
SEC. 2.Section 11831.6 of the Health and Safety Code is amended to read:
11831.6.

(a)The following persons, programs, or entities shall not give or receive remuneration or anything of value for the referral of a person who is seeking alcoholism or drug abuse recovery and treatment services:

(1)An alcoholism or drug abuse recovery and treatment facility licensed under this part.

(2)An owner, partner, officer, or director, or shareholder who holds an interest of at least 10 percent in an alcoholism or drug abuse recovery and treatment facility licensed under this part.

(3)A person employed by, or working for, an alcoholism or drug abuse recovery and treatment facility licensed under this part, including, but not limited to, registered and certified counselors and licensed professionals providing counseling services.

(4)An alcohol or other drug program certified by the department in accordance with the alcohol or other drug certification standards established pursuant to Section 11830.1.

(5)An owner, partner, officer, or director, or shareholder who holds an interest of at least 10 percent in an alcohol or other drug program certified by the department in accordance with the alcohol or other drug certification standards established pursuant to Section 11830.1.

(6)A person employed by, or working for, an alcohol or other drug program certified by the department in accordance with the alcohol or other drug certification standards established pursuant to Section 11830.1, including, but not limited to, registered and certified counselors and licensed professionals providing counseling services.

(7)A recovery residence, as defined in Section 11833.05.

(8)An owner, partner, officer, director, or shareholder of a recovery residence, as defined in Section 11833.05.

(b)Notwithstanding the rulemaking provisions of the Administrative Procedure Act (Chapter 3.5 (commencing with Section 11340) of Part 1 of Division 3 of Title 2 of the Government Code), the department may, if it deems appropriate, implement, interpret, or make specific this section by means of provider bulletins, written guidelines, or similar instructions from the department, until regulations are adopted.

SEC. 3.Section 11831.7 of the Health and Safety Code is amended to read:
11831.7.

(a)The department may investigate allegations of violations of Section 11831.6. The department may, upon finding a violation of Section 11831.6 or any regulation adopted pursuant to that section, do any of the following:

(1)Assess a penalty upon an alcoholism or drug abuse recovery and treatment facility licensed under this part.

(2)Suspend or revoke the license of an alcoholism or drug abuse recovery and treatment facility licensed under Chapter 7.5 (commencing with Section 11834.01), or deny an application for licensure, extension of the licensing period, or modification to a license. Article 4 (commencing with Section 11834.35) of Chapter 7.5 shall apply to any action taken pursuant to this paragraph.

(3)Assess a penalty upon an alcohol or other drug program certified by the department in accordance with the alcohol or other drug certification standards established pursuant to Section 11830.1.

(4)Suspend or revoke the certification of an alcohol or other drug program certified by the department in accordance with the alcohol or other drug certification standards established pursuant to Section 11830.1.

(5)Assess a penalty upon a recovery residence, as defined in Section 11833.05, or an owner, partner, officer, director, or shareholder of a recovery residence, of no more than ten thousand dollars ($10,000) for each violation.

(6)Suspend or revoke the registration or certification of a counselor for a violation of Section 11831.6.

(b)The department may investigate allegations against a licensed professional providing counseling services at an alcoholism or drug abuse recovery and treatment program licensed, certified, or funded under this part, and recommend disciplinary actions, including, but not limited to, termination of employment at a program and suspension and revocation of licensure by the respective licensing board.

(c)Notwithstanding the rulemaking provisions of the Administrative Procedure Act (Chapter 3.5 (commencing with Section 11340) of Part 1 of Division 3 of Title 2 of the Government Code), the department may, if it deems appropriate, implement, interpret, or make specific this section by means of provider bulletins, written guidelines, or similar instructions from the department, until regulations are adopted.

SEC. 2.

 Section 11831.6 of the Health and Safety Code is amended to read:

11831.6.
 (a) The following persons, programs, or entities shall not give or receive remuneration or anything of value for the referral of a person who is seeking alcoholism or drug abuse recovery or treatment services:
(1) An alcoholism or drug abuse recovery or treatment facility licensed under this part.
(2) An owner, partner, officer, or director, or shareholder who holds an interest of at least 10 percent in an alcoholism or drug abuse recovery or treatment facility licensed under this part.
(3) A person employed by, or working for, an alcoholism or drug abuse recovery or treatment facility licensed under this part, including, but not limited to, registered and certified counselors and licensed professionals providing counseling services.
(4) An alcohol or other drug program certified by the department in accordance with the alcohol or other drug certification standards established pursuant to Section 11830.1.
(5) An owner, partner, officer, or director, or shareholder who holds an interest of at least 10 percent in an alcohol or other drug program certified by the department in accordance with the alcohol or other drug certification standards established pursuant to Section 11830.1.
(6) A person employed by, or working for, an alcohol or other drug program certified by the department in accordance with the alcohol or other drug certification standards established pursuant to Section 11830.1, including, but not limited to, registered and certified counselors and licensed professionals providing counseling services.
(7) A recovery residence, as defined in Section 11833.05.
(8) An owner, partner, officer, director, or shareholder of a recovery residence, as defined in Section 11833.05.
(b) Notwithstanding the rulemaking provisions of the Administrative Procedure Act (Chapter 3.5 (commencing with Section 11340) of Part 1 of Division 3 of Title 2 of the Government Code), the department may, if it deems appropriate, implement, interpret, or make specific this section by means of provider bulletins, written guidelines, or similar instructions from the department, until regulations are adopted.

SEC. 3.

 Section 11831.7 of the Health and Safety Code is amended to read:

11831.7.
 (a) The department may investigate allegations of violations of this chapter. The department may, upon finding a violation of this chapter or any regulation adopted pursuant to this chapter, do any of the following:
(1) Assess a penalty upon an alcoholism or drug abuse recovery or treatment facility licensed under this part.
(2) Suspend or revoke the license of an alcoholism or drug abuse recovery or treatment facility licensed under Chapter 7.5 (commencing with Section 11834.01), or deny an application for licensure, extension of the licensing period, or modification to a license. Article 4 (commencing with Section 11834.35) of Chapter 7.5 shall apply to any action taken pursuant to this paragraph.
(3) Assess a penalty upon an alcohol or other drug outpatient program certified by the department in accordance with the alcohol or other drug certification standards established pursuant to Section 11830.1.
(4) Suspend or revoke the certification of an alcohol or other drug outpatient program certified by the department in accordance with the alcohol or other drug certification standards established pursuant to Section 11830.1.
(5) Assess a penalty upon a recovery residence, as defined in Section 11833.05, or an owner, partner, officer, director, or shareholder of a recovery residence, of no more than ten thousand dollars ($10,000) for each violation.

(5)

(6) Suspend or revoke the registration or certification of a counselor for a violation of this chapter.
(b) The department may investigate allegations against a licensed professional providing counseling services at an alcoholism or drug abuse recovery or treatment program licensed, certified, or funded under this part, and recommend disciplinary actions, including, but not limited to, termination of employment at a program and suspension and revocation of licensure by the respective licensing board.
(c) The department shall establish an enforcement program focused on the oversight duties of this chapter. Staff of the enforcement program shall have responsibilities including, but not limited to, all of the following:
(1) Provide the department with analytical support for the development and administration of this chapter.
(2) Provide the department with general oversight and monitoring focused on investigations and enforcement of this chapter.
(3) Provide the department with legal guidance in the interpretation of this chapter.
(d) Notwithstanding the rulemaking provisions of the Administrative Procedure Act (Chapter 3.5 (commencing with Section 11340) of Part 1 of Division 3 of Title 2 of the Government Code), the department may, if it deems appropriate, implement, interpret, or make specific this section by means of provider bulletins, written guidelines, or similar instructions from the department, until regulations are adopted.