Amends TCA Title 6; Title 33; Title 47; Title 63 and Title 68.

This bill revises and enacts various provisions regarding alcohol and drug services, as discussed below. PRESENT LAW/EXISTING "SAFE ACT" In 2018, the General Assembly enacted the Stopping Addiction and Fostering Excellence (SAFE) Act, which authorizes cities, towns, and metropolitan governments (referred to collectively as "municipalities") to adopt certain ordinances regarding sober living homes. Under the Act, a municipality may adopt an ordinance requiring each sober living home to display in a prominent place within the sober living home, a sign stating, among other things, that it is a sober living home, that it is not licensed by the state, and that the home does not provide treatment services. Present law also grants a municipality discretion to adopt an ordinance encouraging sober living homes to become chartered by a 501(c)(3) nonprofit organization that serves as an umbrella organization and organizes homes into chapters and is governed by a council and board of directors that maintain the sole right to charter, and revoke the charter of, a home; or comply with the requirements for recovery residences prescribed by an organization that is an affiliate of a 501(c)(3) nonprofit organization that pre-screens new affiliates, requires affiliates to adhere to a code of ethics, and requires affiliates to make an annual contribution based on the number of recovery residences. This bill deletes the above provision, enacts a similar signage requirement for certain "recovery residences," and enacts new provisions governing alcohol and drug services and alcohol and drug prevention and/or treatment facilities. PROHIBITED PRACTICES AT TREATMENT FACILITIES, GENERALLY This bill prohibits a treatment facility from: (1) Referring drug tests to an out-of-network laboratory if an in-network laboratory is reasonably available to meet the patient's drug testing needs; (2) Ordering or performing confirmatory testing in the absence of a documented medical or legal need for the testing; (3) Entering into any contract or agreement with a third-party payor that includes any inducement or incentive to reduce or limit services to a level or duration below what is in the best clinical interest of the patient; or (4) Requesting, receiving, or retaining payment for substance use disorder treatment services provided to a patient as a result of conduct described in (1), (2), or (3). The above prohibition applies to a development center, treatment resource, group residence, boarding home, sheltered workshop, activity center, rehabilitation center, hospital, community mental health center, counseling center, clinic, group home, halfway house, or any other entity that provides a mental health, intellectual, or developmental disability service or an alcohol and drug abuse prevention and/or treatment facility. In addition to any other punishment authorized by law, an entity that knowingly violates the above-described prohibition will be subject to suspension or revocation of the entity's license and the imposition of a civil penalty. Present law provides for a civil penalty ranging from $250 to $500 for a violation or $500 to $5,000 for a second or subsequent violation of the same kind that is committed within 12 months of the first penalty. ALCOHOL AND DRUG PREVENTION AND/OR TREATMENT FACILITIES (ADTFs) This bill creates new provisions governing ADTFs. This bill defines ADTF as an institution, treatment resource, group residence (boarding home, sheltered workshop, activity center), rehabilitation center, hospital, community mental health center, nonresidential office-based opiate treatment facility, nonresidential substitution-based treatment center for opiate addiction, DUI school, counseling center, clinic, halfway house, recovery residence, or other entity, by these or other names, providing alcohol and drug services. This bill specifies that a DUI school operated by a state institution of higher education is not considered an alcohol and drug prevention and treatment facility for purposes of these new provisions and that the ADTF does not include any facility otherwise licensed or certified by the department of mental health and substance abuse services, including certified recovery court programs, the department of health, a facility approved by the department of education, or treatment programs operated by the department of correction. "Alcohol and drug services," for purposes of these new provisions, include evaluation, treatment, residential personal care, habilitation, rehabilitation, counseling or supervision of persons with substance use disorder, or services to persons designed to prevent substance use disorder that either receive funds from the department of health or assess fees for services. A DUI school operated by a state institution of higher education is not considered alcohol and drug services. This bill requires the department of mental health and substance abuse services to establish and maintain on its website a list of organizations. This bill defines an "organization" as any nationally recognized recovery residence standards organization, any affiliate of any nationally recognized recovery residence standards organization, or grantees of any state or federal department or agency. Similar to present law, this bill requires a recovery residence that is not recognized or certified by an organization or funded by a state or federal department or agency to display in a prominent place within the recovery residence, a sign stating that, among other things, the residence may not comply with state or federal standards and is not funded or licensed by the state. Under this bill, in addition to any other punishment authorized by law, a person or entity that knowingly violates this requirement will be subject to action by the attorney general and reporter or a person under the Tennessee Consumer Protection Act. This bill requires the department of correction to: (1) Recognize the approved recovery residences as approved placements for those persons with substance use disorder to community supervision; (2) Indicate which placements on any list of placements for community supervision are approved recovery residences; and (3) Establish a preference for approved recovery residences by encouraging placements in the residences. This bill prohibits a licensed or certified service provider, judge, or magistrate from referring an individual who is appropriate for housing in a recovery residence to support the individual's recovery from a substance use disorder, to a recovery residence, including a recovery residence owned or operated by the referent, that is not recognized or certified by an organization, or funded by the state or federal department or agency. A licensed or certified provider that violates this prohibition will be subject to the suspension or revocation of the provider's license or certificate by the appropriate licensing or certification board and the imposition of civil penalties as authorized under the laws governing the profession. A judge or magistrate who violates the prohibition will be subject to disciplinary action by the board of judicial conduct. This bill also sets out factors that the service provider, judge, or magistrate must consider in referring an individual to an approved recovery residence, which include the culture of the recovery residence, the levels of care, and the nature of the current residents. This bill provides that the use of "refer" in this provision does not include the order of an individual to a recovery residence that is not recognized or certified by an organization or funded by a state or federal department or agency, if the individual selected the recovery residence independent of influence from the licensed or certified service provider, judge, or magistrate. This bill prohibits the use of state funds to support a recovery residence that is not recognized or certified by an organization. This prohibition will not apply to a recovery residence that is already receiving state funds through a grant process administered by a state or federal department or agency. This bill prohibits recovery residences from engaging in certain market practices, as detailed in this bill, including soliciting, receiving, or making an attempt to solicit or receive a commission, benefit, rebate, kickback, or bribe, directly or indirectly, in cash or in kind, or engaging or making an attempt to engage in a split-fee arrangement in return for a referral or an acceptance or acknowledgement of treatment from a service provider of alcohol and drug services or ADTF. In addition to any other punishment authorized by law, a person or entity that knowingly violates the prohibitions will be subject to suspension or revocation of the recovery residence's status as an approved recovery residence for purposes of the list maintained by the department of mental health and substance abuse and action by the attorney general or a person under the Tennessee Consumer Protection Act. CONSUMER PROTECTION ACT This bill adds under the Consumer Protection Act that a violation of the above-described prohibitions in this bill will be considered violations of the Act. Generally a violation of the Act is a Class B misdemeanor and a violator may be subject to an action by the attorney general or an individual harmed by the violation and penalties, including treble damages in the case of a willful or knowing violation. PROHIBITED FINANCIAL INCENTIVES/ARRANGEMENTS Generally present law prohibits healthcare providers and facilities, with respect to alcohol and drug services, from offering or paying, or soliciting or receiving a commission, kickback, benefit, rebate, or bribe, or engaging in a fee-splitting arrangement, to induce the referral of a patient, for referring a patient, or for the acceptance of treatment from or at a licensee or facility licensed by the department of mental health and substance abuse services. This bill extends the applicability of those provisions to the same conduct in regard to treatment at or from a recovery residence, an employee of a recovery residence, a nationally recognized recovery residence standards organization or its affiliate, or an employee of such an organization or affiliate.