Texas 2021 - 87th Regular

Texas House Bill HB3389 Compare Versions

Only one version of the bill is available at this time.

Old	New	Differences
1	1	87R8516 SRA-D
2	2	By: Davis H.B. No. 3389
3	3
4	4
5	5	A BILL TO BE ENTITLED
6	6	AN ACT
7	7	relating to the regulation of assisted living facilities and
8	8	referral of clients to the facilities by referral agencies;
9	9	authorizing a civil penalty.
10	10	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
11	11	SECTION 1. Subchapter D, Chapter 247, Health and Safety
12	12	Code, is amended by adding Section 247.072 to read as follows:
13	13	Sec. 247.072. PROHIBITED SALE OR TRANSFER OF CLIENT
14	14	INFORMATION. (a) In this section, "client" has the meaning
15	15	assigned by Section 247.151.
16	16	(b) An assisted living facility may not sell or transfer a
17	17	client's contact information to a third party without the client's
18	18	written consent.
19	19	SECTION 2. Chapter 247, Health and Safety Code, is amended
20	20	by adding Subchapter F to read as follows:
21	21	SUBCHAPTER F. REFERRAL AGENCIES
22	22	Sec. 247.151. DEFINITIONS. In this subchapter:
23	23	(1) "Client" means a prospective resident of an
24	24	assisted living facility or a prospective resident's
25	25	representative seeking assistance with entering into an
26	26	arrangement with the facility through a referral agency.
27	27	(2) "Referral agency" means a person who for
28	28	compensation provides client referral services to individuals or
29	29	assisted living facilities.
30	30	(3) "Referred assisted living facility" means an
31	31	assisted living facility to which a client of a referral agency has
32	32	been referred by the agency.
33	33	Sec. 247.152. FORM AND TERMS OF AGREEMENT. (a) An
34	34	agreement for referral services between a referral agency and
35	35	client must be in writing, dated, and signed by the client and
36	36	agency.
37	37	(b) The agreement must include:
38	38	(1) a statement of the client's right to terminate the
39	39	referral agency's services for any reason and at any time; and
40	40	(2) a provision requiring the referral agency to
41	41	communicate the cancellation of the agreement to all assisted
42	42	living facilities to which the agency referred the client.
43	43	Sec. 247.153. DISCLOSURE STATEMENT. (a) At the time a
44	44	client enters into an agreement for referral to an assisted living
45	45	facility, a referral agency shall provide a written disclosure
46	46	statement to the client containing:
47	47	(1) a statement on whether the referral agency or
48	48	agency personnel have a relationship with the referred assisted
49	49	living facility, including:
50	50	(A) common ownership in or control of the
51	51	facility; or
52	52	(B) a financial, business, management, or
53	53	familial relationship between the referral agency or agency
54	54	personnel and the facility;
55	55	(2) a statement that the referral agency receives a
56	56	fee from the referred assisted living facility; and
57	57	(3) a copy of the written agreement for services
58	58	between the referral agency and client.
59	59	(b) The client and referral agency shall sign and date the
60	60	disclosure statement.
61	61	(c) The referral agency shall provide a written or
62	62	electronic copy of a disclosure statement that complies with this
63	63	section to the referred assisted living facility on or before the
64	64	date the client is admitted as a resident to the facility.
65	65	(d) The assisted living facility shall maintain a copy of a
66	66	disclosure statement provided under Subsection (c) until at least
67	67	the first anniversary of the date the resident is admitted to the
68	68	facility.
69	69	Sec. 247.154. CLIENT REFERRAL SERVICES FEE. (a) An
70	70	assisted living facility to which a client of a referral agency has
71	71	been referred by the agency may only pay the referral agency a fee
72	72	for those referral services:
73	73	(1) after the facility receives a copy of the
74	74	disclosure statement required by Section 247.153(c); or
75	75	(2) if applicable, on or after the date on which the
76	76	agreement between the referral agency and client is canceled.
77	77	(b) A referral agency may not charge a referral services fee
78	78	to an assisted living facility if:
79	79	(1) the referral agency refers the client to the
80	80	assisted living facility, but the client does not select the
81	81	facility; or
82	82	(2) the referral agency does not refer the client to
83	83	the assisted living facility.
84	84	Sec. 247.155. CIVIL PENALTY. (a) A referral agency that
85	85	violates this subchapter is liable to this state for a civil penalty
86	86	not to exceed $500 for each violation. Each day of a continuing
87	87	violation constitutes a separate violation.
88	88	(b) At the request of the commission, the attorney general
89	89	may bring an action in the name of the state to recover a civil
90	90	penalty under this section.
91	91	(c) A civil penalty collected under this section shall be
92	92	deposited in the state treasury to the credit of the general revenue
93	93	fund.
94	94	SECTION 3. The changes in law made by this Act apply only to
95	95	an agreement for referral services entered into on or after the
96	96	effective date of this Act. An agreement for referral services
97	97	entered into before the effective date of this Act is governed by
98	98	the law in effect on the date on which the agreement was entered
99	99	into, and the former law is continued in effect for that purpose.
100	100	SECTION 4. This Act takes effect September 1, 2021.