SB 43: Substance use disorder: addiction treatment referral agencies.

Existing law requires the State Department of Health Care Services to regulate and certify alcohol or other drug programs, as defined. Existing law also requires the department to regulate and license adult alcohol or other drug recovery or treatment facilities, and requires a licensee to provide specified nonmedical services. Existing law requires all programs certified and facilities licensed by the department to make specified disclosures to the department regarding, among other things, ownership or control of, or financial interest in, a recovery residence, as defined.

Existing law prohibits a licensed facility, a certified program, or other specified persons, programs, and entities from giving or receiving remuneration or anything of value for the referral of a person who is seeking alcohol or other drug recovery or treatment services. Existing law generally prohibits referrals for remuneration to any skilled nursing home or other specified types of care facilities without first obtaining a written license from the Director of Public Health or from an inspection service approved by the director, as specified.

This bill would require make it unlawful for a person, association, or corporation, before establishing, conducting, or maintaining to establish, conduct, or maintain a referral agency or referring any person for remuneration to an alcoholism or drug abuse treatment program certified by or a facility licensed by the department to State Department of Health Care Services without first obtain obtaining a license certificate of compliance from the department, as specified. specified, and would require the department to issue a certificate of compliance, as prescribed. The bill would require the department to impose a fee for license the certificate of compliance application and renewal and would specify the information required to be included on the application. The bill, among other provisions, would prohibit a licensee referral agency from having a direct or indirect financial interest in a program or facility doing business with the licensee. referral agency. The bill would not apply to a local public agency performing referral services without cost to recipients of adult alcoholism or drug abuse recovery or treatment services when otherwise authorized by law.

This bill would make it unlawful for a referral agency holding a certificate of compliance to participate in or operate a group advertising and referral service for addiction treatment services unless specified conditions are met. met, including that the referral agency files with the department a copy of the standard form contract that regulates its relationship with member programs. The bill would provide that the contract shall be kept confidential and is not open to public inspection. The bill would authorize the department or 5 or more individual or member programs to petition the superior court of any county for the issuance of an injunction restraining conduct that is a violation of that provision. The bill would make it a misdemeanor for any individual, association, partnership, corporation, or otherwise to operate a group advertising and referral service without providing its name and address to the department. By creating new crimes, the bill would impose a state-mandated local program.

This bill would authorize the department to suspend or revoke the license of a program or facility that fails certificate of compliance for failure to comply with the provisions of the bill, and to impose a civil penalty, as specified. The bill also would authorize the department Attorney General to impose a civil penalty bring a civil action against a person, association, or corporation referring persons without a license certificate of compliance in violation of the bill, and would make those individuals liable for a civil penalty in the amount of the remuneration illegally received, as specified. The bill would authorize a district attorney, county counsel, city attorney, or any person who has suffered any injury or damages, as specified, to bring a claim that an act or practice violates the bills provisions and seek, among other things, declaratory relief, as provided.

Existing constitutional provisions require that a statute that limits the right of access to the meetings of public bodies or the writings of public officials and agencies be adopted with findings demonstrating the interest protected by the limitation and the need for protecting that interest.

This bill would make legislative findings to that effect.