By: Raymond, et al. (Senate Sponsor - Miles) H.B. No. 3037
(In the Senate - Received from the House May 5, 2021;
May 12, 2021, read first time and referred to Committee on Health &
Human Services; May 20, 2021, reported favorably by the following
vote: Yeas 8, Nays 0; May 20, 2021, sent to printer.)
Click here to see the committee vote
A BILL TO BE ENTITLED
AN ACT
relating to the regulation of referral agencies for senior living
communities; providing a civil penalty.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Subtitle G, Title 4, Health and Safety Code, is
amended by adding Chapter 327 to read as follows:
CHAPTER 327. REFERRAL AGENCIES FOR SENIOR LIVING COMMUNITIES
SUBCHAPTER A. GENERAL PROVISIONS
Sec. 327.001. DEFINITIONS. In this chapter:
(1) "Consumer" means an individual seeking a referral
to a senior living community.
(2) "Referral" means identifying and connecting a
consumer or the consumer's representative to a senior living
community to facilitate an evaluation, in consultation with the
community, of whether the community is a suitable option for the
consumer.
(3) "Referral agency" means an entity that provides to
a consumer referrals to senior living communities for a fee
collected from the consumer or community. The term does not
include:
(A) a senior living community or its employees;
or
(B) a resident, resident's family member, or
patron of a senior living community who refers a consumer to the
community regardless of whether that individual receives a discount
or other remuneration from the community.
(4) "Senior living community" means an adult foster
care facility, life care facility, nursing facility licensed under
Chapter 242, assisted living facility licensed under Chapter 247,
retirement home, retirement village, home for the aging, or other
facility that provides shelter, food, health care, social
activities, or other personal services specifically for elderly
individuals.
SUBCHAPTER B. REFERRAL AGENCY REGULATION
Sec. 327.051. REQUIRED DISCLOSURE. (a) Before or at the
time of the referral, a referral agency shall provide a disclosure
statement to a consumer that includes:
(1) a description of the referral agency's service;
(2) the referral agency's contact information,
including a telephone number;
(3) an Internet website link to the referral agency's
privacy policy; and
(4) a statement on whether the consumer or the senior
living community to which the consumer is referred is responsible
for paying the referral fee.
(b) The referral agency may provide the disclosure
statement to a consumer or consumer's representative by:
(1) a clear and conspicuous written physical document
that is designed to provide notice of its contents;
(2) a clear and conspicuous electronic disclosure that
is designed to provide notice of its contents; or
(3) an oral disclosure by telephone, provided that the
disclosure is recorded and the recording is maintained in the
records of the referral agency.
(c) A referral agency shall maintain a record of the
disclosure statement until the third anniversary of the date of the
referral. The referral agency shall provide on request a copy of the
record to the consumer, the consumer's representative, or a senior
living community.
Sec. 327.052. REFERRAL AGENCY PROHIBITED CONDUCT. A
referral agency or referral agency employee may not:
(1) refer a consumer to a senior living community in
which the referral agency, the referral agency employee, or an
immediate family member of the employee, as applicable, has an
ownership, management, or financial interest;
(2) hold a power of attorney for a consumer or hold a
consumer's property in any capacity; or
(3) knowingly refer a consumer to a senior living
community that is unlicensed and is not exempt from licensing under
applicable law.
Sec. 327.053. DUTIES. A referral agency shall:
(1) use a nationally accredited service provider to
obtain criminal history record information, in accordance 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
negligent acts or omissions by the referral agency or its
employees;
(3) at least twice a year audit each senior living
community to which the referral agency provides referrals to ensure
that any applicable license is in good standing and maintain a
record of that audit;
(4) maintain a code of conduct applicable to all
referral agency employees;
(5) provide all referral agency employees whose job
responsibilities require direct contact with a consumer or a
consumer's representative with at least 40 hours of introductory
training, including training on the referral agency's code of
conduct, before the employee begins performing those
responsibilities;
(6) disclose to the consumer or the consumer's
representative all senior living communities that best meet the
consumer's stated criteria that are located in the closest
proximity to the consumer's preferred location; and
(7) maintain and publish a privacy policy on the
referral agency's Internet website and a telephone number and
e-mail address for privacy inquiries.
Sec. 327.054. CIVIL PENALTY. (a) A referral agency that
violates this chapter is subject to a civil penalty in an amount
equal to not less than $250 and not more than $1,000 for each
violation.
(b) The attorney general or a district attorney may bring an
action to recover a civil penalty imposed under Subsection (a) and
to restrain and enjoin a violation of this chapter. The attorney
general or a district attorney may recover attorney's fees and
litigation costs incurred in bringing the action.
SECTION 2. Section 102.005, Occupations Code, is amended to
read as follows:
Sec. 102.005. APPLICABILITY TO CERTAIN ENTITIES. Section
102.001 does not apply to:
(1) a licensed insurer;
(2) a governmental entity, including:
(A) an intergovernmental risk pool established
under Chapter 172, Local Government Code; and
(B) a system as defined by Section 1601.003,
Insurance Code;
(3) a group hospital service corporation;
(4) a health maintenance organization that
reimburses, provides, offers to provide, or administers hospital,
medical, dental, or other health-related benefits under a health
benefits plan for which it is the payor; [or]
(5) a health care collaborative certified under
Chapter 848, Insurance Code; or
(6) a referral agency as defined by Section 327.001,
Health and Safety Code.
SECTION 3. This Act takes effect September 1, 2021.
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