It is enacted by the General Assembly as follows

SECTION 1. Chapter 23-17 of the General Laws entitled "Licensing of Health Care Facilities" is hereby amended by adding thereto the following section:

{ADD 23-17-46. Financial interest disclosure -- ADD} {ADD (a) Any health care facility licensed pursuant to this chapter which refers clients to another such licensed health care facility or to a residential care/assisted living facility licensed pursuant to chapter 23-17.4 or to a certified adult day care program in which the referring entity has a financial interest shall, at the time a referral is made, disclose in writing the following information to the client: (1) that the referring entity has a financial interest in the facility or provider to which the referral is being made; (2) that the client has the option of seeking care from a different facility or provider which is also licensed and/or certified by the state to provide similar services to the client.

(b) Noncompliance with this section shall constitute grounds to revoke, suspend or otherwise discipline the licensee or to deny an application for licensure by the director, or may result in imposition of an administrative penalty in accordance with chapter 23-17-10. ADD}

SECTION 2. Chapter 23-17.4 of the General Laws entitled "Residential Care Facility Licensing Act" is hereby amended by adding thereto the following section:

{ADD 23-17.4-33. Disclosure of financial interest. -- ADD} {ADD (a) Any licensed residential care/assisted living facility which refers clients to any health care facility licensed pursuant to chapter 23-17 or to another residential care/assisted living facility licensed pursuant to this chapter or to a certified adult day care program in which the referring entity has a financial interest shall, at the time a referral is made, disclose the following information to the client: (1) that the referring entity has a financial interest in the facility or provider to which the referral is being made; (2) that the client has the option of seeking care from a different facility or provider which is also licensed and/or certified by the state to provide similar services to the client.

(b) Noncompliance with this section shall constitute grounds to revoke, suspend or otherwise discipline the licensee or to deny an application for licensure by the director, or may result in imposition of an administrative penalty in accordance with chapter 23-17-10. ADD}

SECTION 3. Chapter 42-66 of the General Laws entitled "Department of Elderly Affairs" is hereby amended by adding thereto the following section:

{ADD 42-66-17. Disclosure of financial interest. -- ADD} {ADD (a) Any licensed or certified adult day care program which refers clients to any health care facility licensed pursuant to chapter 23-17 or to a residential care/assisted living facility licensed pursuant to chapter 23-17.4 or to a licensed/certified adult day care program which the referring entity has a financial interest shall, at the time a referral is made, disclose the following information to the client: (1) that the referring entity has a financial interest in the facility or provider to which the referral is being made; (2) that the client has the option of seeking care from a different facility or provider which is also licensed and/or certified by the state to provide similar services to the client.

(b) Noncompliance with this section shall constitute grounds to revoke, suspend or otherwise discipline the licensee or to deny an application for licensure by the director, or may result in imposition of an administrative penalty in accordance with chapter 23-17-10. ADD}

SECTION 4. This act shall take effect upon passage.