1569.47.
(a) The following definitions shall apply to this section:(1) “Compensated referral” means a referral by a private, for-profit or nonprofit agency that is engaged in the business of referring persons to residential care facilities for the elderly in exchange for any consideration or thing of value, including a fee, commission, gift, or any reciprocal benefit. For purposes of this section, case management services provided through the Medi-Cal program do not qualify as compensated referral.
(2) “Referral” means identifying and connecting a person or that person’s representative to a residential care facility for the elderly to facilitate the further evaluation, in consultation
with the facility, of whether that facility is a suitable senior housing option for that person.
(3) (A) “Referral source” means any county welfare department, county social service department, county mental health department, county public guardian, general acute care hospital discharge planner or coordinator, state-funded program or private, for-profit, or nonprofit agency providing referral services, conservator pursuant to Part 3 (commencing with Section 1800) of Division 4 of the Probate Code, conservator pursuant to Chapter 3 (commencing with Section 5350) of Part 1 of Division 5 of the Welfare and Institutions Code, and regional center for persons with developmental disabilities, or a person or entity that provides a referral to a residential care facility for the elderly on behalf of the aforementioned entities, that is engaged in identifying senior housing options at residential care facilities for the
elderly.
(B) A referral source does not include a licensee of a residential care facility for the elderly, or any professional services staff member of a residential care facility for the elderly, who on behalf of that facility, makes a referral, even if they have received a discount or other remuneration from the facility.
(b) (1) A referral source shall not refer a person to a facility providing care and supervision or protective supervision if the referral source knows or should have known the facility is not licensed as a residential care facility for the elderly or is not exempt from licensing under Section 1569.145. Violation of this paragraph is a misdemeanor.
(2) A referral source shall not refer an individual to a residential care facility for the elderly if the referral source knows or
should have known the individual, because of their health condition, cannot be cared for within the limits of the facility’s license or requires inpatient care in a health facility. Violation of this paragraph is a misdemeanor.
(3) A referral source shall not refer a person to a residential care facility for the elderly in which the referral source, and an affiliated group under Section 1585 of the Financial Code or an immediate family member of the referral source, has an ownership or management interest or a common employee in an executive management position, unless the referral source obtains a written waiver from the person or that person’s representative before making the referral. For purposes of this subparagraph, “immediate family” means a spouse, parent, child, or any person related by consanguinity or affinity within the second degree. Violation of this paragraph is a misdemeanor.
(4) (A) A referral source who knows or should have known that a facility that is not exempt from licensing is operating without a license shall report the name and address of the facility to the department. Failure to report as required by this subparagraph is a misdemeanor.
(B) The department shall investigate any report filed under subparagraph (A). If the department has probable cause to believe that the facility that is the subject of the report is operating without a license, the department shall investigate the facility within 10 days after receipt of the report.
(5) A referral source shall notify the appropriate licensing agency of any known or suspected incidents that would jeopardize the health or safety of residents in a residential care facility for the elderly. A violation of this paragraph is a misdemeanor. Reportable incidents
include, but are not limited to, all of the following:
(A) Incidents of physical abuse.
(B) Any violation of personal rights.
(C) Any situation in which a facility is unclean, unsafe, unsanitary, or in poor condition.
(D) Any situation in which a facility has insufficient personnel or incompetent personnel on duty.
(E) Any situation in which residents experience mental or verbal abuse.
(c) (1) Before sending a compensated referral to a residential care facility for the elderly located in California, a referral source shall provide the person or their representative with information that includes all of
the following disclosures:
(A) A description of the referral source’s service.
(B) The referral source’s contact information, including business address, email address, and telephone number.
(C) A referral source’s privacy policy, or if the referral source maintains an internet website, a link or URL to the privacy policy on the internet website.
(D) A statement regarding whether and under what circumstances the referral source will be paid a fee by residential care facilities for the elderly to which the person is referred.
(E) A statement that the person or their representative may request at any time via email or by submitting a letter that the referral source cease contact with the
person or their representative at points of contact they designate, such as telephone numbers and email addresses, and that the referral source will cease contact in response to that request and also cease making additional referrals on behalf of the person or their representative.
(F) The following language: “Information regarding inspections, evaluations, complaints, and citations associated with any of California’s residential care facilities for the elderly, also known as assisted living facilities, can be viewed at the State Department of Social Services Community Care Licensing website at: www.cdss.ca.gov. Additionally, during a health-related state of emergency, information about the active cases within residential care facilities for the elderly may also be posted on this website.”
(2) The information and disclosures required by paragraph (1) shall be provided to the
person or their representative in a clear manner designed to give actual notice of its contents and may be provided, together or separately, in any the following methods:
(A) A written disclosure at least in 12-point bold font either in hardcopy form or by electronic means. If the person or their representative provides the referral source with an email address, the referral source shall send an electronic version of the disclosure to the person or their representative’s email address.
(B) A link to an electronic disclosure displayed on a web page in a larger font than the surrounding text.
(C) Verbally, if the verbal disclosure is given telephonically and recorded with the consent of the person or their representative. At the time of the verbal disclosure, a person or their representative shall be informed that
they may verbally request a written or electronic disclosure. If the person or their representative requests a written or electronic disclosure, the referral source shall provide the written or electronic disclosure to the person or their representative who makes the request. If, in a subsequent phone conversation, the person or their representative verbally requests a written disclosure, the referral agency shall inform them of the procedure for submitting the request in writing pursuant to paragraph (3).
(3) The referral source shall maintain records of the disclosures set forth pursuant to this subdivision for a period of three years and shall provide a copy of the disclosures provided to the person, representative, or the residential care facility for the elderly, upon written request.
(4) In addition to the requirements of paragraph (1), a compensated referral source shall
comply with all of the following:
(A) Use a nationally accredited service provider to perform background checks on referral sources who have direct contact with persons or their representatives.
(B) Maintain liability insurance coverage in an amount of at least one million dollars ($1,000,000) per occurrence and two million dollars ($2,000,000) in total annual aggregate for negligent acts or omissions by the referral source or any of its employees.
(C) Accept remuneration only from residential care facilities for the elderly with which the referral source has a written contract.
(D) Maintain and prominently display a privacy policy on every internet website it operates or, if the referral source does not maintain an internet website, then it shall
provide the person or their representative with a written copy of the privacy policy.
(E) Refrain from holding any power of attorney for a resident or potential resident or from holding that person’s property in any capacity.
(F) (i) Cease making referrals on behalf of the person or their representative as soon as feasible but not more than 10 days after receipt of an oral, electronic, or written request, pursuant to subparagraph (E) of paragraph (1).
(ii) An “electronic request” means the person or their representative either sending an email to the electronic address which the referral source has authorized in its privacy policy for receiving such requests or completing an online form on the referral source’s internet website that it has posted for submitting such requests.
(iii) An “oral request” means the person or their representative making the request via the recorded phone line that the referral source has designated on its internet website or in its privacy policy for processing such requests.
(G) (i) Cease contacting a person or their representative as soon as feasible but not more than 10 days after receipt of an oral, electronic, or written request, pursuant to subparagraph (E) of paragraph (1).
(ii) An “electronic request” means the person or their representative either sending an email to the electronic address which the referral source has authorized in its privacy policy for receiving such requests or completing an online form on the referral source’s internet website that it has posted for submitting such requests.
(iii) An “oral request” means the person or their representative making the request via the recorded phone line that the referral source has designated on its internet website or in its privacy policy for processing such requests.
(H) Obtain the affirmative consent of the person or their representative for making referrals on a person’s behalf. Consent may be obtained verbally in a telephone conversation and recorded in an audio file, electronically, or in writing.
(I) In accordance with Section 1798.120 of the Civil Code, the person or the person’s representative shall have the right, at any time, to direct the referral source not to sell or share their personal information, as defined in paragraph (1) of subdivision (v) of Section 1798.140 of the Civil Code, for any purpose other than those necessary to make an
authorized referral.
(d) A referral source that violates subdivision (c) is subject to a civil penalty of between two hundred fifty dollars ($250) and one thousand dollars ($1,000) for each violation, and Section 1569.40 shall not apply. A district attorney or a city attorney may institute a proceeding in superior court to recover the civil penalty under this subdivision and to restrain and enjoin a violation of subdivision (c).
(e) In addition to any other action, violations of this section may be subject to an action under Chapter 5 (commencing with Section 17200) of Part 2 of Division 7 of the Business and Professions Code.