SB 648 Summary

• Expands definition of "placement agencies" to include private referral agencies that refer persons for remuneration to adult residential facilities, residential care facilities for chronic life-threatening illness, and residential care facilities for the elderly.

• Requires facilities to provide residents with a disclosure statement before admission if a private referral agency was used and the facility has a long-term contract with that agency, disclosing commissions, fees, and any gifts of monetary value.

• Prohibits private referral agencies from holding power of attorney for referred persons, requires liability insurance of at least $1 million per occurrence/$3 million annual aggregate beginning July 1, 2018, and mandates employee training on applicable laws, resident assessment, and elderly care needs.

• Makes it unlawful for government employees, hospital staff, or healthcare workers to accept payments, rebates, commissions, or discounts as inducement for referring patients to facilities or private referral agencies.

• Establishes private referral agency owners, operators, and employees as mandated reporters of elder and dependent adult abuse, requires agencies to obtain written authorization before sharing personal information, and mandates suitability determinations for all referrals.