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Senate Bill 2243 (Roberti-1974)

Chapter 1333, Statutes of 1974

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A summary of Senate Bill 2243 as last amended on August 28th is found in the Enrolled Bill Memorandum to Governor. (See Exhibit #5, document PE-1) The summary was set forth as follows:

Deletes exemption for individuals, agencies, associations and corporations not organized for profit or gain and for organizations and associations exempt from federal income taxation pursuant to prescribed provisions of federal law, from provisions (1) prohibiting specified referrals and recommendations for medical care or treatment fro [sic] profit and (2) prohibiting any physician, hospital, health-related facility, or dispensary from entering into a contract or agreement to accept for medical care or treatment any person referred or recommended by a medical referral service in another state if such business would be prohibited under specified provisions relating to medical referral services in this. [sic] state. The bill becomes effective on January 1, 1975.
(See Exhibit #5, document PE-1)

The Bill Analysis of the June 17, 1974 version of Senate Bill 2243 prepared by the Department of Health stated, in part:

The bill originally was related specifically to abortion referrals, and was to add a section to the Business and Professions Code which would prohibit receipt or offer of consideration for referral of a patient for therapeutic abortion. Terms were defined, penalties for violations specified, and injunctive relief provided against abortion information services which violated the act.

As amended, the title has been broadened to include all medical referrals, not just abortion referrals, and the bill now amends the Health and Safety Code instead of adding to the Business and Professions Code. The pertinent Section 445 prohibits referral of persons for profit to physicians, hospital, health related facility, or dispensary for any form of medical care or treatment of any ailment or physical condition. The specific amendment the bill makes to Section 445 would delete language which provided exemption from the requirements for any individual, agency, association or corporation not organized for profit or gain and for any organization or association which is exempt from federal
income taxation. With these deletions the only exception to the prohibition against for-profit referral is for those made under the Crippled Children's Services Program or prepaid health plans.
(See Exhibit #6, document DH-2)

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