bill bars assisted living facilities from selling contact info

The text as introduced · 792 words

By: Y. Davis of Dallas
H.B. No. 3843

A BILL TO BE ENTITLED

AN ACT

relating to the regulation of assisted living facilities and

referral of clients to the facilities by referral agencies;

authorizing a civil penalty.

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

SECTION 1. Subchapter D, Chapter 247, Health and Safety

Code, is amended by adding Section 247.072 to read as follows:

Sec. 247.072. PROHIBITED SALE OR TRANSFER OF CLIENT

INFORMATION. (a) In this section, "client" has the meaning

assigned by Section 247.151.

(b) An assisted living facility may not sell or transfer a

client's contact information to a third party without the client's

written consent.

SECTION 2. Chapter 247, Health and Safety Code, is amended

by adding Subchapter F to read as follows:

SUBCHAPTER F. REFERRAL AGENCIES

Sec. 247.151. DEFINITIONS. In this subchapter:

(1) "Client" means a prospective resident of an

assisted living facility or a prospective resident's

representative seeking assistance with entering into an

arrangement with the facility through a referral agency.

(2) "Referral agency" means a person who for

compensation provides client referral services to individuals or

assisted living facilities.

(3) "Referred assisted living facility" means an

assisted living facility to which a client of a referral agency has

been referred by the agency.

Sec. 247.152. FORM AND TERMS OF AGREEMENT. (a) An

agreement for referral services between a referral agency and

client must be in writing, dated, and signed by the client and

agency.

(b) The agreement must include:

(1) a statement of the client's right to terminate the

referral agency's services for any reason and at any time; and

(2) a provision requiring the referral agency to

communicate the cancellation of the agreement to all assisted

living facilities to which the agency referred the client.

Sec. 247.153. DISCLOSURE STATEMENT. (a) At the time a

client enters into an agreement for referral to an assisted living

facility, a referral agency shall provide a written disclosure

statement to the client containing:

(1) a statement on whether the referral agency or

agency personnel have a relationship with the referred assisted

living facility, including:

(A) common ownership in or control of the

facility; or

(B) a financial, business, management, or

familial relationship between the referral agency or agency

personnel and the facility;

(2) a statement that the referral agency receives a

fee from the referred assisted living facility; and

(3) a copy of the written agreement for services

between the referral agency and client.

(b) The client and referral agency shall sign and date the

disclosure statement.

(c) The referral agency shall provide a written or

electronic copy of a disclosure statement that complies with this

section to the referred assisted living facility on or before the

date the client is admitted as a resident to the facility.

(d) The assisted living facility shall maintain a copy of a

disclosure statement provided under Subsection (c) until at least

the first anniversary of the date the resident is admitted to the

facility.

Sec. 247.154. CLIENT REFERRAL SERVICES FEE. (a) An

assisted living facility to which a client of a referral agency has

been referred by the agency may only pay the referral agency a fee

for those referral services:

(1) after the facility receives a copy of the

disclosure statement required by Section 247.153(c); or

(2) if applicable, on or after the date on which the

agreement between the referral agency and client is canceled.

(b) A referral agency may not charge a referral services fee

to an assisted living facility if:

(1) the referral agency refers the client to the

assisted living facility, but the client does not select the

facility; or

(2) the referral agency does not refer the client to

the assisted living facility.

Sec. 247.155. CIVIL PENALTY. (a) A referral agency that

violates this subchapter is liable to this state for a civil penalty

not to exceed $500 for each violation. Each day of a continuing

violation constitutes a separate violation.

(b) At the request of the commission, the attorney general

may bring an action in the name of the state to recover a civil

penalty under this section.

(c) A civil penalty collected under this section shall be

deposited in the state treasury to the credit of the general revenue

fund.

SECTION 3. The changes in law made by this Act apply only to

an agreement for referral services entered into on or after the

effective date of this Act. An agreement for referral services

entered into before the effective date of this Act is governed by

the law in effect on the date on which the agreement was entered

into, and the former law is continued in effect for that purpose.

SECTION 4. This Act takes effect September 1, 2025.