Texas 2021 - 87th Regular

Texas Senate Bill SB1982 Compare Versions

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

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1	1	By: Miles S.B. No. 1982
2	2
3	3
4	4	A BILL TO BE ENTITLED
5	5	AN ACT
6	6	relating to the regulation of referral agencies for senior living
7	7	communities; providing a civil penalty.
8	8	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
9	9	SECTION 1. Subtitle G, Title 4, Health and Safety Code, is
10	10	amended by adding Chapter 327 to read as follows:
11	11	CHAPTER 327. REFERRAL AGENCIES FOR SENIOR LIVING COMMUNITIES
12	12	SUBCHAPTER A. GENERAL PROVISIONS
13	13	Sec. 327.001. DEFINITIONS. In this chapter:
14	14	(1) "Consumer" means an individual seeking a referral
15	15	to a senior living community.
16	16	(2) "Referral" means identifying and connecting a
17	17	consumer or the consumer's representative to a senior living
18	18	community to facilitate an evaluation, in consultation with the
19	19	community, of whether the community is a suitable option for the
20	20	consumer.
21	21	(3) "Referral agency" means an entity that provides to
22	22	a consumer referrals to senior living communities for a fee
23	23	collected from the consumer or community. The term does not
24	24	include:
25	25	(A) a senior living community or its
26	26	representative unless the community or its representative receives
27	27	compensation for a referral; or
28	28	(B) a resident, resident's family member, or
29	29	patron of a senior living community who refers a consumer to the
30	30	community regardless of whether that individual receives a discount
31	31	or other remuneration from the community.
32	32	(4) "Senior living community" means an adult foster
33	33	care facility, life care facility, nursing facility licensed under
34	34	Chapter 242, assisted living facility licensed under Chapter 247,
35	35	retirement home, retirement village, home for the aging, or other
36	36	facility that provides shelter, food, health care, social
37	37	activities, or other personal services specifically for elderly
38	38	individuals.
39	39	SUBCHAPTER B. REFERRAL AGENCY REGULATION
40	40	Sec. 327.051. REQUIRED DISCLOSURE. (a) Before or at the
41	41	time of the referral, a referral agency shall provide a disclosure
42	42	statement to a consumer that includes:
43	43	(1) a description of the referral agency's service;
44	44	(2) the referral agency's contact information,
45	45	including a telephone number;
46	46	(3) an Internet website link to the referral agency's
47	47	privacy policy; and
48	48	(4) a statement on whether the consumer or the senior
49	49	living community to which the consumer is referred is responsible
50	50	for paying the referral fee.
51	51	(b) The referral agency may provide the disclosure
52	52	statement to a consumer or consumer's representative by:
53	53	(1) a clear and conspicuous written physical document
54	54	that is designed to provide notice of its contents;
55	55	(2) a clear and conspicuous electronic disclosure that
56	56	is designed to provide notice of its contents; or
57	57	(3) an oral disclosure by telephone, provided that the
58	58	disclosure is recorded and the recording is maintained in the
59	59	records of the referral agency.
60	60	(c) A referral agency shall maintain a record of the
61	61	disclosure statement until the third anniversary of the date of the
62	62	referral. The referral agency shall provide on request a copy of the
63	63	record to the consumer, the consumer's representative, or a senior
64	64	living community.
65	65	Sec. 327.052. REFERRAL AGENCY PROHIBITED CONDUCT. A
66	66	referral agency or referral agency employee may not:
67	67	(1) refer a consumer to a senior living community in
68	68	which the referral agency, the referral agency employee, or an
69	69	immediate family member of the employee, as applicable, has an
70	70	ownership, management, or financial interest;
71	71	(2) hold a power of attorney for a consumer or hold a
72	72	consumer's property in any capacity; or
73	73	(3) knowingly refer a consumer to a senior living
74	74	community that is unlicensed and is not exempt from licensing under
75	75	applicable law.
76	76	Sec. 327.053. DUTIES. A referral agency shall:
77	77	(1) use a nationally accredited service provider to
78	78	obtain criminal history record information, in accordance with
79	79	applicable law, on a referral agency employee who has direct
80	80	contact with a consumer or a consumer's representative;
81	81	(2) maintain liability insurance coverage in an amount
82	82	of at least $2 million per occurrence and $5 million in total annual
83	83	aggregate for negligent acts or omissions by the referral agency or
84	84	its employees;
85	85	(3) at least twice a year audit each senior living
86	86	community to which the referral agency provides referrals to ensure
87	87	that any applicable license is in good standing and maintain a
88	88	record of that audit;
89	89	(4) maintain a code of conduct applicable to all
90	90	referral agency employees;
91	91	(5) provide all referral agency employees whose job
92	92	responsibilities require direct contact with a consumer or a
93	93	consumer's representative with at least 40 hours of introductory
94	94	training, including training on the referral agency's code of
95	95	conduct, before the employee begins performing those
96	96	responsibilities;
97	97	(6) limit referrals to a senior living community with
98	98	which the referral agency has a written contract;
99	99	(7) engage an independent third party auditor to
100	100	annually audit the referral agency's financial statements; and
101	101	(8) maintain and publish a privacy policy on the
102	102	referral agency's Internet website and a toll-free telephone number
103	103	and e-mail address for privacy inquiries.
104	104	Sec. 327.054. CERTAIN COMPENSATED REFERRALS PROHIBITED. A
105	105	person employed by, providing services for, or acting on behalf of a
106	106	governmental agency, hospital, or other health care facility,
107	107	including a health care provider, social worker, therapist, or case
108	108	manager, may not offer, provide, or accept a payment, rebate,
109	109	refund, commission, preference, or discount, whether in the form of
110	110	money or other consideration, as payment, compensation, or
111	111	inducement for referring a consumer to a senior living community.
112	112	Sec. 327.055. CIVIL PENALTY. (a) A referral agency that
113	113	violates this chapter is subject to a civil penalty in an amount
114	114	equal to not less than $250 and not more than $1,000 for each
115	115	violation.
116	116	(b) The attorney general or a district attorney may bring an
117	117	action to recover a civil penalty imposed under Subsection (a) and
118	118	to restrain and enjoin a violation of this chapter. The attorney
119	119	general or a district attorney may recover attorney's fees and
120	120	litigation costs incurred in bringing the action.
121	121	SECTION 2. Section 102.005, Occupations Code, is amended to
122	122	read as follows:
123	123	Sec. 102.005. APPLICABILITY TO CERTAIN ENTITIES. Section
124	124	102.001 does not apply to:
125	125	(1) a licensed insurer;
126	126	(2) a governmental entity, including:
127	127	(A) an intergovernmental risk pool established
128	128	under Chapter 172, Local Government Code; and
129	129	(B) a system as defined by Section 1601.003,
130	130	Insurance Code;
131	131	(3) a group hospital service corporation;
132	132	(4) a health maintenance organization that
133	133	reimburses, provides, offers to provide, or administers hospital,
134	134	medical, dental, or other health-related benefits under a health
135	135	benefits plan for which it is the payor; [or]
136	136	(5) a health care collaborative certified under
137	137	Chapter 848, Insurance Code; or
138	138	(6) a referral agency as defined by Section 327.001,
139	139	Health and Safety Code.
140	140	SECTION 3. This Act takes effect September 1, 2021.