SB 408 – Stop Addiction Fraud Ethics Act of 2021

Primary Senate Sponsors: Sen. Jim Burgin (R-Harnett, Johnston, Lee); Sen. Joyce Krawiec (R-Davie, Forsyth); Sen. Jim Perry (R-Lenoir, Wayne)

Summary

This bill:

  • Requires any marketing or advertising materials published or provided by any treatment provider, treatment facility, recovery residence, or third party providing services to any treatment provider, treatment facility, or recovery residence to convey accurate and complete information in easily understand language.
  • Requires the materials to include: (1) information about the types and methods of services provided or used, an information about where they are provided; (2) the average length of stay at the treatment facility during the preceding 12 month period; (3) the treatment facility’s name and brand; and (4) a brief summary of any financial relationships between the treatment facility and any publisher of marketing or advertising.
  • Requires operators of a recovery residence or licensed residential treatment facility that also provides separately licensed outpatient substance use disorder services to clearly label each facility and service separately in any marketing or advertisements.
  • Prohibits any treatment provider, treatment facility, recovery residence, or third party providing services to those entities from: (1) making a materially false or misleading statement about the nature, identity, or location of substance use disorder treatment services or a recovery residence and (2) making a false or misleading statement about the treatment provider’s status as an in-network or out-of-network provider, the qualifications of persons providing treatment or services, or the recovery rate.
  • Prohibits any person or entity from: (1) providing, or directing another to provide, false or misleading information about the identity of, or contact information for, any treatment provider; (2) including false or misleading information about the website of any treatment provider; (3) suggesting or implying a relationship with the treatment provider exists, unless there is consent to such a relationship; and (4) making a materially false or misleading statement about substance use disorder treatment services.
  • Makes it a class G felony for any person or entity to: (1) offer or pay anything of value or engage in any split fee arrangement to induce the referral of a patron to or from a treatment provider or laboratory; (2) solicit or receive anything of value, or engage in any split fee arrangement, in return for referring a patient to or from a treatment provider or laboratory; (3) solicit or receive anything of value, or engage in any split fee arrangement, in return for the acceptance or acknowledgement of treatment from a health care provider or health care facility; or (4) aid or abet any conduct that violates these provisions.

Movement

Filed – 3/30/2021