California · Health and Safety Code - HSC

HSC §11857.5: (a) (1) A treatment provider shall not request, receive, or retain payment for substance use disorder treatments provided to a client as a result of conduct declared unlawful under this chapter.

Civil

What this law says, in plain English

Treatment providers cannot request or retain payment for substance abuse treatment provided due to unlawful conduct. Violations result in civil penalties up to $20,000, private lawsuits with treble damages, and possible license suspension or revocation.

Read the full statutory text
(a) (1) A treatment provider shall not request, receive, or retain payment for substance use disorder treatments provided to a client as a result of conduct declared unlawful under this chapter. (2) A person or entity who violates this chapter shall be subject to a civil penalty of not more than twenty thousand dollars ($20,000) for each violation. (3) Any person or entity who suffers any injury or damages, including, but not limited to, paying for treatment or services that were performed in violation of this chapter, as a result of the use or employment by a treatment provider or other person of any method, act, or practice declared unlawful under this chapter may bring a claim against the treatment provider who committed the violation and against any other person or entity who aided, abetted, or took part in the violation. In any action brought under this paragraph, the court shall, in addition to any other appropriate legal or equitable relief, award three times the damages sustained by any injured person. In any action under this paragraph, the court shall also award reasonable attorney’s fees and costs to a prevailing plaintiff. (4) (A) The Attorney General, a district attorney, a county counsel, a city attorney, or any person who has suffered any injury or damages, including, but not limited to, paying for treatment or services that were performed in violation of this chapter, may bring a claim that an act or practice violates this chapter and seek one or more of the following: (i) Declaratory relief to enjoin a person or entity who has violated or is violating this chapter. (ii) A civil penalty of not more than twenty thousand dollars ($20,000) for each violation of this chapter. (B) If a claim under clause (i) or (ii) is successful, in whole or in part, the court shall award reasonable attorney’s fees and costs to the plaintiff or prosecutor. (5) The department may investigate an allegation of a violation of this chapter. Upon finding a violation, the department may take any action under Sections 11831.7, 11834.34, and 11834.36 with respect to the offending provider, including, but not limited to, suspension or revocation of a license or certification. If the department imposes a civil penalty, the civil penalty shall not be more than twenty thousand dollars ($20,000) for each violation of this chapter. (b) (1) The department shall promulgate regulations to implement the applicable provisions of this chapter. (2) Notwithstanding paragraph (1) and the rulemaking provisions of the Administrative Procedure Act (Chapter 3.5 (commencing with Section 11340) of Part 1 of Division 3 of Title 2 of the Government Code), the department may, if it deems appropriate, implement, interpret, or make specific this chapter by means of provider bulletins, written guidelines, or similar instructions, until regulations are adopted.

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