SB 648 Summary

• Requires referral agencies to obtain licenses from State Department of Social Services to refer persons to residential care facilities for the elderly, in addition to existing licensing requirements for other facility types.

• Prohibits facilities from paying commissions or fees to unlicensed referral agencies and establishes mandatory disclosure requirements for referral agencies regarding agreements, fees, commissions, and contact information before referring clients.

• Prohibits referral agencies from holding powers of attorney, holding client property, or disclosing personal information without authorization, and requires maintenance of liability insurance of at least $1 million per occurrence and $3 million aggregate.

• Makes owners, operators, and employees of referral agencies mandated reporters of elder or dependent adult abuse, with failure to report being a misdemeanor punishable by up to six months in county jail or a $1,000 fine.

• Prohibits government employees, healthcare workers, and others acting on behalf of institutions from offering, accepting, or providing payments or commissions as inducement for referring patients to facilities or referral agencies.