PRINTER'S NO. 2092
No. 1675 Session of 1997
INTRODUCED BY S. H. SMITH, GRUPPO, BELARDI, BROWN, LYNCH,
E. Z. TAYLOR, WALKO, BELFANTI AND SCRIMENTI, JUNE 16, 1997
REFERRED TO COMMITTEE ON AGING AND YOUTH, JUNE 16, 1997
AN ACT
1 Prohibiting certain agencies and individuals from referring
2 persons to personal care homes when conflicts of interest
3 exist; providing for duties of the Department of Public
4 Welfare; and imposing a civil penalty.
5 The General Assembly of the Commonwealth of Pennsylvania
6 hereby enacts as follows:
7 Section 1. Short title.
8 This act shall be known and may be cited as the Personal Care
9 Home Referral Act.
10 Section 2. Definitions.
11 The following words and phrases when used in this act shall
12 have the meanings given to them in this section unless the
13 context clearly indicates otherwise:
14 "Conflict of interest." Use by a referral agent of the
15 authority of the agency relationship for the pecuniary benefit
16 of the referral agent, a member of the referral agent's
17 immediate family or a personal care home or business with which
18 the referral agent or a member of the referral agent's immediate
19 family has a financial interest or is associated, regardless of
1 whether the action by the referral agent has a de minimis
2 economic impact or the amount of the financial interest.
3 "Department." The Department of Public Welfare of the
4 Commonwealth.
5 "Personal care home." A premise in which food, shelter and
6 personal assistance or supervision are provided for a period
7 exceeding 24 hours for four or more adults who are not relatives
8 of the operator, who do not require the services in or of a
9 licensed long-term care facility but who do require assistance
10 or supervision in matters such as dressing, bathing, diet,
11 financial management, evacuation of a residence in the event of
12 an emergency or medication prescribed for self-administration.
13 "Referral agent." An agency or individual who arranges for
14 or assists, or both, with the placement of a person into a
15 personal care home. The term includes, but is not limited to, a
16 mental health placement agency that may be under an agreement
17 with or designated by a local government to act as a referral
18 agent for or on behalf of the local government. The term does
19 not include the Commonwealth, the Department of Public Welfare
20 or an area agency on aging.
21 Section 3. Conflict of interest prohibited.
22 No referral agent shall, in connection with the referral of a
23 person to a personal care home, engage in conduct that
24 constitutes a conflict of interest.
25 Section 4. Duties of department.
26 The department shall have the following powers and duties to
27 carry out the provisions of this act:
28 (1) To require referral agents to provide information as
29 deemed necessary by the department relating to their
30 associations, if any, with personal care homes or businesses
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1 that might reasonably be expected to result in a conflict of
2 interest under this act.
3 (2) To require referral agents to provide periodic
4 reports to the department regarding the referrals made and
5 the identity of the personal care homes to which the
6 referrals were made.
7 (3) To initiate and conduct proceedings to determine
8 compliance with this act.
9 (4) To promulgate rules and regulations.
10 Section 5. Civil penalty.
11 The department shall levy a civil penalty of not less than
12 $500 nor more than $5,000 on any person who violates any
13 provision of this act. The department shall levy this penalty
14 only after affording the accused party the opportunity for a
15 hearing, as provided in 2 Pa.C.S. (relating to administrative
16 law and procedure).
17 Section 6. Contracts.
18 (a) General rule.--Except as otherwise provided in this act,
19 nothing in this act shall be construed to interfere with or in
20 any way modify the provisions of any referral agent contract in
21 force on the effective date of this act.
22 (b) Renewals.--No renewal of any existing referral agent
23 contract on the expiration or termination of the original term
24 thereof and no new referral agent contract shall be entered into
25 after the effective date of this act if such renewal or new
26 contract fails to conform to the applicable provisions of this
27 act or interferes with the implementation of this act by the
28 department.
29 Section 7. Effective date.
30 This act shall take effect in 60 days.
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