A BILL TO BE ENTITLED
AN ACT establishing the stop addiction FRAUD EMERGENCY (SAFE) act of 2021.
The General Assembly of North Carolina enacts:
SECTION 1.  This act shall be known and may be cited as the "Stop Addiction Fraud Emergency Act of 2021" or the "SAFE Act of 2021."
SECTION 2.  Chapter 90 of the General Statutes is amended by adding a new Article to read:
"Article 5H.
"Stop Addiction Fraud Emergency Act.
"§ 90‑113.150.  Definitions.
The following definitions apply in this Article:
(1)	Patient. – An individual who meets any one of the following criteria:
a.	Will potentially be admitted to, or receive services from, a treatment facility or recovery residence.
b.	Is admitted to, or receiving services from, a treatment facility or recovery residence.
c.	Has been admitted to, or received services from, a treatment facility or recovery residence.
(2)	Recovery residence. – An unlicensed shared living environment that is intended to be free from alcohol and illicit drug use and centered on peer support and connection to services that promote sustained recovery from substance use disorders.
(3)	Referral. – A person or entity shall be considered to have made a referral if the provider or operator of a recovery residence has provided, by any means, the name, address, or other identifying information for a treatment facility or recovery residence to a patient.
(4)	Treatment facility. – A facility, program, person, or entity that is licensed under 10A NCAC 27G. 3100 (Non‑hospital Medical Detoxification), 10A NCAC 27G. 3200 (Social Setting Detoxification for Substance Abuse), 10A NCAC 27G. 3300 (Outpatient Detoxification for Substance Abuse), 10A NCAC 27G. 3400 (Residential Treatment‑Individuals with Substance Abuse Disorders), 10A NCAC 27G. 3600 (Outpatient Opioid Treatment), 10A NCAC 27G. 3700 (Day Treatment Facilities for Individuals with Substance Abuse Disorders), 10A NCAC 27G. 4400 (Substance Abuse Intensive Outpatient Program), 10A NCAC 27G. 4500 (Substance Abuse Comprehensive Outpatient Treatment), or 10A NCAC 27G. 5600E (Supervised Living for Adults with Substance Abuse Dependency)."
"§ 90‑113.152.  Patient brokering and kickbacks.
(a)	It is unlawful for any treatment facility, recovery residence, or third party contracted or paid to provide advertising, marketing, or referral services to any treatment facility or recovery residence to do any of the following:
(1)	Offer money, goods, services, or anything else of value or engage in any form of split‑fee arrangement to induce the referral of a patient, or aid and abet such conduct.
(2)	Solicit money, goods, services, or anything else of value or engage in any form of split‑fee arrangement to induce the referral of a patient, or aid and abet such conduct.
(3)	Solicit money, goods, services, or anything else of value or engage in any form of split‑fee arrangement in return for the acceptance or acknowledgment of treatment from a treatment facility, or aid and abet such conduct.
(b)	This section does not apply to any of the following:
(1)	A discount, payment, waiver of payment, or payment practice that is expressly authorized by 42 U.S.C. § 1320a‑7b(b)(3) or any regulation adopted under that statute.
(2)	A reasonable contingency management technique or other reasonable motivational incentive that is part of the treatment provided by a treatment facility.
(c)	A person who knowingly violates subsection (a) of this section shall be guilty of a Class G felony."
"§ 90‑113.153.  Exemption.
This Article shall not apply to any of the following:
(1)	Any general hospital licensed under Article 5 of Chapter 131E of the General Statutes.
(2)	Any hospital authority organized under Article 2 of Chapter 131E of the General Statutes."
SECTION 3.  This act becomes effective December 1, 2021, and applies to offenses committed on or after that date.