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STATE OF OKLAHOMA
2nd Session of the 59th Legislature (2024)
COMMITTEE SUBSTITUTE
FOR
HOUSE BILL NO. 3808 By: Burns
COMMITTEE SUBSTITUTE
An Act relating to senior living communities;
defining terms; mandating disclosure from referral
agencies; providing for prohibited conduct; providing
duties for referral agencies; regulating
compensation; providing for civil p enalty; amending
63 O.S. 2021, Section 1 -742, which relates to
prohibited acts and penalties; adding exception;
providing for codification; and providing an
effective date.
BE IT ENACTED BY THE PEOPLE OF T HE STATE OF OKLAHOMA:
SECTION 1. NEW LAW A new section of law to be codified
in the Oklahoma Statutes as Sectio n 1-866.1 of Title 63, unless
there is created a duplication in numbering, reads as follows:
As used in this section:
1. "Consumer" means an individual seeking a referral to a
senior living community on behalf of themselves or someone else as a
representative;
2. "Fee" means anything of value and includes money or other
valuable consideration or services or the promise of money or other
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valuable consideration or services, received directly or indirectly
by a referral agency;
3. "Referral" means identifying and referring a consumer or
consumer's representative to a senior living community to facilitate
an evaluation, in consultation with the community, of whether the
senior living community is a suitable option for the consumer ;
4. "Referral agency" means an entity that provides referrals to
senior living communities for a fee collected from a consumer, a
consumer's representative, or a senior living community. The term
does not include:
a. a senior living community, its owners, or any of its
employees or contractors in their individual capacity,
or
b. a resident or resident's family member who refers a
consumer to the senior living community regardless of
whether that individual receives a discount or other
remuneration from the senior living community; and
5. "Senior living community" means an adult foster care
facility, life care facility, assisted living facility, retirement
home, memory care facility, retirement village, home for the aging,
or other facility that provides shelter, food, health care, s ocial
activities, or other personal services to residents or patrons.
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SECTION 2. NEW LAW A new section of law to be codified
in the Oklahoma Statutes as Section 1-866.2 of Title 63, unless
there is created a duplication in numbering , reads as follows:
A. At the time of the referral, a referral agency shall
disclose the following to the consumer or consumer's representative:
1. A description of the referral agency's service;
2. A statement on whether the consumer or the senior living
community to which the consumer is referred is responsible for
paying the referral fee ; and
3. A statement that the consumer may, without cause or penalty,
stop using the referral agency.
B. The referral agency may make the discl osure statement
available to a consumer or consumer's representative by any of the
following methods, which method may be selected at the sole
discretion of the referral agency:
1. A clear and conspicuous written physical or electronic
document;
2. A clear and conspicuous ele ctronic disclosure on their
website; or
3. An oral disclosure by telephone .
SECTION 3. NEW LAW A new section of law to be codified
in the Oklahoma Statutes as Section 1-866.3 of Title 63, unless
there is created a duplication in nu mbering, reads as follows:
A referral agency shall not:
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1. Refer a consumer to a senior living community in which the
referral agency has an ownership, management, or financial interest
excluding a de minimis interest, such as a direct or indirect
ownership of less than one percent (1%) of a senior living
community;
2. Hold a power of attorney or hold property in any capacity
for a consumer or for whom a referral is made; or
3. Refer a consumer to a senior living community that, to the
referral agency's knowledge, is unlicensed and is not exempt from
licensing under applicable law.
SECTION 4. NEW LAW A new section of law to be codified
in the Oklahoma Statutes as Section 1-866.4 of Title 63, unless
there is created a duplication in numbering, reads as follows:
A referral agency shall:
1. Use a nationally accredited service provider to obtain
criminal history record information, in accord ance with applicable
law, on a referral agency employee who has direct contact with a
consumer or a consumer's representative;
2. Maintain liability insurance coverage for negl igent acts or
omissions by the referral agency or its employees;
3. Audit each senior living community to which the referral
agency provides referrals to ensure that any appl icable license is
in good standing and maintain a recor d of that audit; and
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4. Provide all referral agency employees whose job
responsibilities require direct contact with a consumer or a
consumer's representative with introductory train ing, including
training on the referral agency's code of conduct, before the
employee begins performing those responsibilities .
SECTION 5. NEW LAW A new section of law to be codified
in the Oklahoma Statutes as Section 1-866.5 of Title 63, unless
there is created a duplication in numbering, reads as foll ows:
A. A written contract entered into between a referral agency
and a senior living community may provide for the compensation of a
referral agency by a senior living community, without limitation,
in:
1. An amount for all referrals made by the referral agency to
the senior living community in a specified period of time;
2. An amount for each referral to the senior living community
that is based on the cost of rent and care received by the consumer
referred to the senior living community by the referral agency; or
3. A fixed amount for each referral.
B. Compensation paid to a referral agency that complies with
the requirements set forth in this section will not be grounds for
disciplinary action a gainst a long-term care administrator pursuant
to OAC 310:679-10-20 or any other rule or statu te regulating long-
term care administrators.
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SECTION 6. NEW LAW A new section of law to be codified
in the Oklahoma Statutes as Section 1-866.6 of Title 63, unless
there is created a duplication in numbering, reads as follows:
A. A referral agency that violates this act is subject to a
civil penalty in an amount equal to Five Hundred Dollars ($500.00)
for each violation.
B. The Attorney General or a district attorney may bring an
action to recover a civil penalty imposed unde r subsection A of this
section and to restrain and enjoin a violation of this act. The
Attorney General or a district attorney may recover attorney fees
and litigation costs incurred in bringing the action.
SECTION 7. AMENDATORY 63 O.S. 2021, Section 1 -742, is
amended to read as follows:
Section 1-742. A. 1. Any person who intentionally or
knowingly pays to or accepts anything of value from any person,
firm, association of persons, partnership or corporation fo r
securing or soliciting patients for any health care professional,
health care provider or o ther entity providing health care services
in this state, upon conviction, shall be guilty o f a misdemeanor and
shall be punished by a fine of not less than Five H undred Dollars
($500.00) and not more than Two Thousand Dollars ($2,000.00).
2. In addition to any other penalties or remedies provided by
law:
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a. a violation of this section by a heal th care
professional or health care provider shall be grounds
for disciplinary action by the state agency licensing,
certifying or registering such professional or
provider, and
b. the state agency licensing, certifying or registering
such professional or provider may institute an action
to enjoin violation or potential viola tion of this
section.
B. This section shall not be construed to prohibit:
1. Advertising, except that advertising which:
a. is false, misleading or deceptive,
b. advertises profession al superiority or the performance
of a professional service in a superior manner, and
c. is not readily subject to verification;
2. Remuneration for advertising, m arketing or other services
that are provided for the purpose of securing or soliciting
patients, provided the remuneration is:
a. set in advance,
b. consistent with the fair market value of the services,
and
c. not based on the volume or value of any patie nt
referrals or business otherwise generated between the
parties; and
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3. Any payment, busin ess arrangements or payments practice not
prohibited by 42 U.S.C., Sect ion 1320a-7b(b), or any regulations
promulgated pursuant thereto.
C. This section shall not apply to licensed insurers, including
but not limited to, group hospital service corporation s or health
maintenance organizations which reimburse, provide, offer t o provide
or administer hospital, medical, dental , or other health-related
benefits under a health benefits plan for which it is the payor when
it is providing those services under a he alth benefits plan, or
referral agency as defined in paragraph 4 of Section 1 of this act.
D. For purposes of this section:
1. "Health care professional" means any person who offers or
provides counseling or health or mental health care under a license,
certification or registration issued pursuant to Title 59 of the
Oklahoma Statutes; and
2. "Health care provider" means any hospital or relate d
institution offering or providing health care services licensed
pursuant to Section 1 -702 of this title.
SECTION 8. This act shall become effective November 1, 2024.
59-2-10566 TJ 02/27/24