Bill Text: IL SB2312 | 2021-2022 | 102nd General Assembly | Chaptered

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Bill Title: Amends a provision of the Consumer Fraud and Deceptive Business Practices Act concerning the deceptive marketing, advertising, and sale of mental health disorder and substance use disorder treatment. Provides that it is an unlawful practice for any person to solicit, offer, or enter into an arrangement under which a patient seeking mental health disorder or substance use disorder treatment is referred to a mental health disorder or substance use disorder treatment program or facility in exchange for a fee or any other remuneration. Provides that it is not an unlawful practice for programs and facilities to enter into personal services agreements or management services agreements with third parties that do not take into account the volume or value of referrals. Provides that it is not an unlawful practice for programs or facilities to provide discounts for treatment services to clients as long as the discount is based on financial necessity in accordance with the program's or facility's charity care plan, regardless of referral source or reason. Provides that compensation paid by programs or facilities to their employees and independent contractors related to identifying, locating, and securing referrals to that program or facility is not an unlawful practice if the amount of compensation provided to the employee or independent contractor does not vary based upon the volume or value of such referrals. Effective immediately.

Spectrum: Slight Partisan Bill (Democrat 13-8)

Status: (Passed) 2021-08-20 - Public Act . . . . . . . . . 102-0550 [SB2312 Detail]

Download: Illinois-2021-SB2312-Chaptered.html

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Public Act 102-0550
SB2312 Enrolled LRB102 09982 JLS 15300 b
AN ACT concerning business.
Be it enacted by the People of the State of Illinois,
represented in the General Assembly:
Section 5. The Consumer Fraud and Deceptive Business
Practices Act is amended by changing Section 2VVV as follows:
(815 ILCS 505/2VVV)
Sec. 2VVV. Deceptive marketing, advertising, and sale of
mental health disorder and substance use disorder treatment.
(a) As used in this Section:
"Facility" has the meaning ascribed to that term in
Section 1-10 of the Substance Use Disorder Act when used in
reference to a facility that provides substance use disorder
treatment. "Facility" has the same meaning as "mental health
facility" under Section 1-114 of the Mental Health and
Developmental Disabilities Code when used in reference to a
facility that provides mental health disorder treatment.
"Hospital affiliate" has the meaning ascribed to that term
in Section 10.8 of the Hospital Licensing Act.
"Mental health disorder" has the same meaning as "mental
illness" under Section 1-129 of the Mental Health and
Developmental Disabilities Code.
"Program" means a licensable or fundable activity or
service, or a coordinated range of such activities or

services, established or licensed by the Department of Human
Services.
"Substance use disorder" has the same meaning as
"substance abuse" under Section 1-10 of the Substance Use
Disorder Act.
"Treatment" has the meaning ascribed to that term in
Section 1-10 of the Substance Use Disorder Act when used in
reference to treatment for a substance use disorder.
"Treatment" has the meaning ascribed to that term in Section
1-128 of the Mental Health and Developmental Disabilities Code
when used in reference to treatment for a mental health
disorder.
(b) It is an unlawful practice for any person to engage in
misleading or false advertising or promotion that
misrepresents the need to seek mental health disorder or
substance use disorder treatment outside of the State of
Illinois.
(c) Any marketing, advertising, promotional, or sales
materials directed to Illinois residents concerning mental
health disorder or substance use disorder treatment must:
(1) prominently display or announce the full physical
address of the treatment program or facility;
(2) display whether the treatment program or facility
is licensed in the State of Illinois;
(3) display whether the treatment program or facility
has locations in Illinois;

(4) display whether the services provided by the
treatment program or facility are covered by an insurance
policy issued to an Illinois resident;
(5) display whether the treatment program or facility
is an in-network or out-of-network provider;
(6) include a link to the Internet website for the
Department of Human Services' Division of Mental Health
and Division of Substance Use Prevention and Recovery, or
any successor State agency that provides information
regarding licensed providers of services; and
(7) disclose that mental health disorder and substance
use disorder treatment may be available at a reduced cost
or for free for Illinois residents within the State of
Illinois.
(d) It is an unlawful practice for any person to solicit,
offer, or enter into an arrangement under which a patient
seeking mental health disorder or substance use disorder
treatment is referred to a mental health disorder or substance
use disorder treatment program or facility in exchange for a
fee, a percentage of the treatment program's or facility's
revenues that are related to the patient, or any other
remuneration that takes into account the volume or value of
the referrals to the treatment program or facility. Such
practice shall also be considered a violation of the
prohibition against fee splitting in Section 22.2 of the
Medical Practice Act of 1987 and a violation of the Health Care

Worker Self-Referral Act. It is not a violation of this
Section for programs or facilities to enter into personal
services agreements or management services agreements with
third parties that do not take into account the volume or value
of referrals. It is not a violation of this Section for
programs or facilities to provide discounts for treatment
services to clients as long as the discount is based on
financial necessity in accordance with the program's or
facility's charity care plan, regardless of referral source or
reason. Compensation paid by programs or facilities to their
employees and independent contractors related to identifying,
locating, and securing referrals to that program or facility
is not a violation of this Section if the amount of
compensation provided to the employee or independent
contractor does not vary based upon the volume or value of such
referrals. This Section does not apply to health insurance
companies, health maintenance organizations, managed care
plans, or organizations, including hospitals and hospital
affiliates licensed in Illinois.
(Source: P.A. 100-1058, eff. 1-1-19; 100-1188, eff. 4-5-19;
101-81, eff. 7-12-19.)
Section 99. Effective date. This Act takes effect upon
becoming law.