CA SB875

Requires referral agencies to obtain licenses from the 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 referral agencies from holding power of attorney or client property, and mandates they disclose specific information to clients before making referrals, including facility inspection data, fee payment terms, and privacy policies.

Requires referral agencies to maintain liability insurance of at least $1,000,000 per occurrence and $2,000,000 annual aggregate beginning July 1, 2025, and prohibits unlicensed referral agencies from receiving payments from facilities.

Makes owners, operators, and employees of referral agencies mandated reporters of elder or dependent adult abuse, and prohibits employees of governmental agencies and health care institutions from accepting payments or inducements for referring patients to facilities or referral agencies.

Establishes civil penalties of $250 to $1,000 per violation for referral agency violations and requires licensees to display their name and license number on all advertising and marketing materials.