SB 2312

Abstract

Amends the Consumer Fraud and Deceptive Business Practices Act. Provides that a violation of the federal Eliminating Kickbacks in Recovery Act of 2018 constitutes a violation of the Consumer Fraud and Deceptive Business Practices Act. Effective immediately. Senate Committee Amendment No. 1 Replaces everything after the enacting clause. Amends a provision of the Consumer Fraud and Deceptive Business Practices Act concerning the deceptive marketing, advertising, and sale of mental health disorder and substance use disorder treatment. Provides that it is an unlawful practice for any person to solicit, offer, or enter into an arrangement under which a patient seeking mental health disorder or substance use disorder treatment is referred to a mental health disorder or substance use disorder treatment program or facility in exchange for a fee or any other remuneration. Provides that it is not an unlawful practice for programs and facilities to enter into personal services agreements or management services agreements with third parties that do not take into account the volume or value of referrals. Provides that it is not an unlawful practice for programs or facilities to provide discounts for treatment services to clients as long as the discount is based on financial necessity in accordance with the program's or facility's charity care plan, regardless of referral source or reason. Provides that compensation paid by programs or facilities to their employees and independent contractors related to identifying, locating, and securing referrals to that program or facility is not an unlawful practice if the amount of compensation provided to the employee or independent contractor does not vary based upon the volume or value of such referrals. Effective immediately.