S-1216               _______________________________________________

                                                   SENATE BILL NO. 3559

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State of Washington                              49th Legislature                              1985 Regular Session

By Senators Granlund and Johnson

Read first time 2/4/85 and referred to Committee on Human Services and Corrections.

AN ACT Relating to rebating by practitioners of healing professions; amending RCW 19.68.010; providing an effective date; and declaring an emergency.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:

        Sec. 1.  Section 1, chapter 58, Laws of 1965 ex. sess. as amended by section 1, chapter 26, Laws of 1973 1st ex. sess. and RCW 19.68.010 are each amended to read as follows:

          It shall be unlawful for any person, firm, corporation or association, whether organized as a cooperative, or for profit or nonprofit, to pay, or offer to pay or allow, directly or indirectly, to any person licensed by the state of Washington to engage in the practice of medicine and surgery, drugless treatment in any form, dentistry, or pharmacy and it shall be unlawful for such person to request, receive or allow, directly or indirectly, a rebate, refund, commission, unearned discount or profit by means of a credit or any financial consideration or other valuable consideration in connection with the referral of patients to any person, firm, corporation or association, or in connection with the furnishings of medical, surgical or dental care, diagnosis, treatment or service, on the sale, rental, furnishing or supplying of clinical laboratory supplies or services of any kind, drugs, medication, hearing aids, or medical supplies, or any other goods, services or supplies prescribed for medical diagnosis, care or treatment:  PROVIDED, That ownership of a financial interest in any firm, corporation or association which furnishes any kind of clinical laboratory or other services prescribed for medical, surgical, or dental diagnosis shall not be prohibited under this section where the referring practitioner affirmatively discloses to the patient in writing, the fact that such practitioner has a financial interest in such firm, corporation, or association.

Any violation of the provisions of this section shall be construed, for the purpose of application of the consumer protection act, chapter 19.86 RCW, to constitute an unfair or deceptive act or practice or unfair method of competition in the conduct of trade or commerce.

          Any person violating the provisions of this section is guilty of a misdemeanor.

NEW SECTION. Sec. 2.     This act is necessary for the immediate preservation of the public peace, health, and safety, the support of the state government and its existing public institutions, and shall take effect July 1, 1985.