Bill > SB43

This bill establishes new regulations for addiction treatment referral agencies in California, requiring them to obtain a certificate of compliance from the Department of Justice before referring individuals to substance use disorder treatment programs or facilities for remuneration. The bill mandates that referral agencies submit detailed applications including information about ownership, business history, and fees, and prohibits these agencies from having financial interests in the treatment programs they refer to. Key provisions include requiring that patient referrals be initiated by patients themselves, prohibiting fee structures based on referral numbers, and ensuring that member programs charge only their usual rates. The bill also creates penalties for non-compliance, including civil penalties up to $20,000, potential suspension or revocation of certificates, and allows various parties (including district attorneys and injured individuals) to bring legal actions against violating agencies. Notably, the bill keeps the standard form contracts between referral agencies and treatment programs confidential, arguing this is necessary to encourage competition and program participation. The legislation aims to prevent predatory referral practices in the substance use disorder treatment industry and protect individuals seeking addiction treatment services.

Budget and Finance, Health and Social Services, Justice

https://leginfo.legislature.ca.gov/faces/billStatusClient.xhtml?bill_id=202520260SB43