bill regulating assisted living referral agencies

The text as introduced · 522 words

89R10602 JTZ-D

By: West
S.B. No. 2562

A BILL TO BE ENTITLED

AN ACT

relating to the regulation of referral agencies for assisted living

facilities; providing a civil penalty.

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

SECTION 1. 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 an individual seeking assistance

with entering into an arrangement with an assisted living facility

through a referral agency.

(2) "Referral agency" means an individual or entity

that refers clients to assisted living facilities for a fee

collected from a client or facility. The term does not include:

(A) an assisted living facility or its employees;

or

(B) a resident, resident's family member, or

patron of an assisted living facility who refers a consumer to the

facility regardless of any discount or other remuneration the

facility pays to that individual.

Sec. 247.152. DISCLOSURE REQUIRED. (a) A referral agency

shall provide a written disclosure statement to each client before

referring the client to an assisted living facility.

(b) The disclosure statement must contain the following

information:

(1) a statement acknowledging the client may cease

using the services of the referral agency for any reason and at any

time;

(2) a statement that the client may elect not to

receive further communications from the referral agency; and

(3) a statement that the client on request to the

referral agency may receive a copy of the referral agency's privacy

policy.

(c) A referral agency and client shall each sign and date

the disclosure statement required by Subsection (a), either in

writing or electronically.

(d) A referral agency must provide a copy of the signed

disclosure statement to an assisted living facility on or before

the date the referral agency's client is admitted to the facility.

(e) An assisted living facility:

(1) may not pay a referral agency a referral fee until

the facility receives the copy of the signed disclosure statement

required under Subsection (d); and

(2) shall maintain the copy until the first

anniversary of the date the client who signed the statement is

admitted to the facility.

Sec. 247.153. LIMITATION ON REFERRALS. A referral agency

may not refer a client to more than a reasonable number of assisted

living facilities as prescribed by the commission for the purpose

of denying another referral agency a referral fee.

Sec. 247.154. CIVIL PENALTY. (a) At the request of the

commission, the attorney general shall bring an action to collect a

civil penalty from a referral agency that violates this subchapter.

(b) The civil penalty may not exceed $1,000 for each

violation. Each day of a continuing violation constitutes a

separate violation.

Sec. 247.155. RULES. The executive commissioner shall

adopt rules necessary to implement this subchapter.

SECTION 2. As soon as practicable after the effective date

of this Act, the executive commissioner of the Health and Human

Services Commission shall adopt rules necessary to implement

Subchapter F, Chapter 247, Health and Safety Code, as added by this

Act.

SECTION 3. This Act takes effect September 1, 2025.