1 | 1 | | By: Y. Davis of Dallas H.B. No. 3843 |
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2 | 2 | | |
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3 | 3 | | |
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4 | 4 | | |
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5 | 5 | | |
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6 | 6 | | A BILL TO BE ENTITLED |
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7 | 7 | | AN ACT |
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8 | 8 | | relating to the regulation of assisted living facilities and |
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9 | 9 | | referral of clients to the facilities by referral agencies; |
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10 | 10 | | authorizing a civil penalty. |
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11 | 11 | | BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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12 | 12 | | SECTION 1. Subchapter D, Chapter 247, Health and Safety |
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13 | 13 | | Code, is amended by adding Section 247.072 to read as follows: |
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14 | 14 | | Sec. 247.072. PROHIBITED SALE OR TRANSFER OF CLIENT |
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15 | 15 | | INFORMATION. (a) In this section, "client" has the meaning |
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16 | 16 | | assigned by Section 247.151. |
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17 | 17 | | (b) An assisted living facility may not sell or transfer a |
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18 | 18 | | client's contact information to a third party without the client's |
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19 | 19 | | written consent. |
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20 | 20 | | SECTION 2. Chapter 247, Health and Safety Code, is amended |
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21 | 21 | | by adding Subchapter F to read as follows: |
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22 | 22 | | SUBCHAPTER F. REFERRAL AGENCIES |
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23 | 23 | | Sec. 247.151. DEFINITIONS. In this subchapter: |
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24 | 24 | | (1) "Client" means a prospective resident of an |
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25 | 25 | | assisted living facility or a prospective resident's |
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26 | 26 | | representative seeking assistance with entering into an |
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27 | 27 | | arrangement with the facility through a referral agency. |
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28 | 28 | | (2) "Referral agency" means a person who for |
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29 | 29 | | compensation provides client referral services to individuals or |
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30 | 30 | | assisted living facilities. |
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31 | 31 | | (3) "Referred assisted living facility" means an |
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32 | 32 | | assisted living facility to which a client of a referral agency has |
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33 | 33 | | been referred by the agency. |
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34 | 34 | | Sec. 247.152. FORM AND TERMS OF AGREEMENT. (a) An |
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35 | 35 | | agreement for referral services between a referral agency and |
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36 | 36 | | client must be in writing, dated, and signed by the client and |
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37 | 37 | | agency. |
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38 | 38 | | (b) The agreement must include: |
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39 | 39 | | (1) a statement of the client's right to terminate the |
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40 | 40 | | referral agency's services for any reason and at any time; and |
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41 | 41 | | (2) a provision requiring the referral agency to |
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42 | 42 | | communicate the cancellation of the agreement to all assisted |
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43 | 43 | | living facilities to which the agency referred the client. |
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44 | 44 | | Sec. 247.153. DISCLOSURE STATEMENT. (a) At the time a |
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45 | 45 | | client enters into an agreement for referral to an assisted living |
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46 | 46 | | facility, a referral agency shall provide a written disclosure |
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47 | 47 | | statement to the client containing: |
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48 | 48 | | (1) a statement on whether the referral agency or |
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49 | 49 | | agency personnel have a relationship with the referred assisted |
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50 | 50 | | living facility, including: |
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51 | 51 | | (A) common ownership in or control of the |
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52 | 52 | | facility; or |
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53 | 53 | | (B) a financial, business, management, or |
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54 | 54 | | familial relationship between the referral agency or agency |
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55 | 55 | | personnel and the facility; |
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56 | 56 | | (2) a statement that the referral agency receives a |
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57 | 57 | | fee from the referred assisted living facility; and |
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58 | 58 | | (3) a copy of the written agreement for services |
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59 | 59 | | between the referral agency and client. |
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60 | 60 | | (b) The client and referral agency shall sign and date the |
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61 | 61 | | disclosure statement. |
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62 | 62 | | (c) The referral agency shall provide a written or |
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63 | 63 | | electronic copy of a disclosure statement that complies with this |
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64 | 64 | | section to the referred assisted living facility on or before the |
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65 | 65 | | date the client is admitted as a resident to the facility. |
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66 | 66 | | (d) The assisted living facility shall maintain a copy of a |
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67 | 67 | | disclosure statement provided under Subsection (c) until at least |
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68 | 68 | | the first anniversary of the date the resident is admitted to the |
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69 | 69 | | facility. |
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70 | 70 | | Sec. 247.154. CLIENT REFERRAL SERVICES FEE. (a) An |
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71 | 71 | | assisted living facility to which a client of a referral agency has |
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72 | 72 | | been referred by the agency may only pay the referral agency a fee |
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73 | 73 | | for those referral services: |
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74 | 74 | | (1) after the facility receives a copy of the |
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75 | 75 | | disclosure statement required by Section 247.153(c); or |
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76 | 76 | | (2) if applicable, on or after the date on which the |
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77 | 77 | | agreement between the referral agency and client is canceled. |
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78 | 78 | | (b) A referral agency may not charge a referral services fee |
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79 | 79 | | to an assisted living facility if: |
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80 | 80 | | (1) the referral agency refers the client to the |
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81 | 81 | | assisted living facility, but the client does not select the |
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82 | 82 | | facility; or |
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83 | 83 | | (2) the referral agency does not refer the client to |
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84 | 84 | | the assisted living facility. |
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85 | 85 | | Sec. 247.155. CIVIL PENALTY. (a) A referral agency that |
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86 | 86 | | violates this subchapter is liable to this state for a civil penalty |
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87 | 87 | | not to exceed $500 for each violation. Each day of a continuing |
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88 | 88 | | violation constitutes a separate violation. |
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89 | 89 | | (b) At the request of the commission, the attorney general |
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90 | 90 | | may bring an action in the name of the state to recover a civil |
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91 | 91 | | penalty under this section. |
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92 | 92 | | (c) A civil penalty collected under this section shall be |
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93 | 93 | | deposited in the state treasury to the credit of the general revenue |
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94 | 94 | | fund. |
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95 | 95 | | SECTION 3. The changes in law made by this Act apply only to |
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96 | 96 | | an agreement for referral services entered into on or after the |
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97 | 97 | | effective date of this Act. An agreement for referral services |
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98 | 98 | | entered into before the effective date of this Act is governed by |
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99 | 99 | | the law in effect on the date on which the agreement was entered |
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100 | 100 | | into, and the former law is continued in effect for that purpose. |
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101 | 101 | | SECTION 4. This Act takes effect September 1, 2025. |
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