By: Y. Davis of Dallas H.B. No. 3843
A BILL TO BE ENTITLED
AN ACT
relating to the regulation of assisted living facilities and
referral of clients to the facilities by referral agencies;
authorizing a civil penalty.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Subchapter D, Chapter 247, Health and Safety
Code, is amended by adding Section 247.072 to read as follows:
Sec. 247.072. PROHIBITED SALE OR TRANSFER OF CLIENT
INFORMATION. (a) In this section, "client" has the meaning
assigned by Section 247.151.
(b) An assisted living facility may not sell or transfer a
client's contact information to a third party without the client's
written consent.
SECTION 2. Chapter 247, Health and Safety Code, is amended
by adding Subchapter F to read as follows:
SUBCHAPTER F. REFERRAL AGENCIES
Sec. 247.151. DEFINITIONS. In this subchapter:
(1) "Client" means a prospective resident of an
assisted living facility or a prospective resident's
representative seeking assistance with entering into an
arrangement with the facility through a referral agency.
(2) "Referral agency" means a person who for
compensation provides client referral services to individuals or
assisted living facilities.
(3) "Referred assisted living facility" means an
assisted living facility to which a client of a referral agency has
been referred by the agency.
Sec. 247.152. FORM AND TERMS OF AGREEMENT. (a) An
agreement for referral services between a referral agency and
client must be in writing, dated, and signed by the client and
agency.
(b) The agreement must include:
(1) a statement of the client's right to terminate the
referral agency's services for any reason and at any time; and
(2) a provision requiring the referral agency to
communicate the cancellation of the agreement to all assisted
living facilities to which the agency referred the client.
Sec. 247.153. DISCLOSURE STATEMENT. (a) At the time a
client enters into an agreement for referral to an assisted living
facility, a referral agency shall provide a written disclosure
statement to the client containing:
(1) a statement on whether the referral agency or
agency personnel have a relationship with the referred assisted
living facility, including:
(A) common ownership in or control of the
facility; or
(B) a financial, business, management, or
familial relationship between the referral agency or agency
personnel and the facility;
(2) a statement that the referral agency receives a
fee from the referred assisted living facility; and
(3) a copy of the written agreement for services
between the referral agency and client.
(b) The client and referral agency shall sign and date the
disclosure statement.
(c) The referral agency shall provide a written or
electronic copy of a disclosure statement that complies with this
section to the referred assisted living facility on or before the
date the client is admitted as a resident to the facility.
(d) The assisted living facility shall maintain a copy of a
disclosure statement provided under Subsection (c) until at least
the first anniversary of the date the resident is admitted to the
facility.
Sec. 247.154. CLIENT REFERRAL SERVICES FEE. (a) An
assisted living facility to which a client of a referral agency has
been referred by the agency may only pay the referral agency a fee
for those referral services:
(1) after the facility receives a copy of the
disclosure statement required by Section 247.153(c); or
(2) if applicable, on or after the date on which the
agreement between the referral agency and client is canceled.
(b) A referral agency may not charge a referral services fee
to an assisted living facility if:
(1) the referral agency refers the client to the
assisted living facility, but the client does not select the
facility; or
(2) the referral agency does not refer the client to
the assisted living facility.
Sec. 247.155. CIVIL PENALTY. (a) A referral agency that
violates this subchapter is liable to this state for a civil penalty
not to exceed $500 for each violation. Each day of a continuing
violation constitutes a separate violation.
(b) At the request of the commission, the attorney general
may bring an action in the name of the state to recover a civil
penalty under this section.
(c) A civil penalty collected under this section shall be
deposited in the state treasury to the credit of the general revenue
fund.
SECTION 3. The changes in law made by this Act apply only to
an agreement for referral services entered into on or after the
effective date of this Act. An agreement for referral services
entered into before the effective date of this Act is governed by
the law in effect on the date on which the agreement was entered
into, and the former law is continued in effect for that purpose.
SECTION 4. This Act takes effect September 1, 2025.