BILL ANALYSIS Senate Research Center S.B. 1383 89R8791 JTZ-F By: Middleton; Johnson Health & Human Services 4/8/2025 As Filed AUTHOR'S / SPONSOR'S STATEMENT OF INTENT State law currently does not directly regulate agencies that refer persons to senior living communities. The committee substitute to S.B. 1383 would address that issue by creating a chapter in the Business & Commerce Code specifically for referral agencies for senior living communities. Senior living communities would include adult foster care facilities, assisted living facilities, retirement villages, and any other facility that provides shelter, food, social activities, or other personal services specifically for elderly individuals. C.S.S.B. 1383 would establish requirements for referral services, including disclosure requirements. The bill would also codify certain prohibited conduct and duties of referral agencies. The bill would describe the range of compensation arrangements referral agencies and communities may enter and provide that current law relating prohibited compensation of health care providers does not apply to referral agencies as defined by the chapter. Finally, the bill would clarify that the law would not impact other laws regulating senior living communities, nor does it abrogate or lessen any existing defenses or remedies. As proposed, S.B. 1383 amends current law relating to the regulation of referral agencies for senior living communities. RULEMAKING AUTHORITY This bill does not expressly grant any additional rulemaking authority to a state officer, institution, or agency. SECTION BY SECTION ANALYSIS SECTION 1. Amends Subtitle C, Title 5, Business & Commerce Code, by adding Chapter 121, as follows: CHAPTER 121. REFERRAL AGENCIES FOR SENIOR LIVING COMMUNITIES Sec. 121.001. DEFINITIONS. Defines "referral agency" and "senior living community." Sec. 121.002. COMPENSATION. Authorizes a written contract executed between a referral agency and a senior living community to provide for the senior living community to pay compensation to the referral agency, including by providing to the referral agency a lump sum for all referrals made in a specified period, a fee for each referral based on the cost of rent and care the referred consumer receives, or a fixed fee for each referral. SECTION 2. Amends Section 102.005, Occupations Code, as follows: Sec. 102.005. APPLICABILITY TO CERTAIN ENTITIES. Provides that Section 102.001 (Soliciting Patients; Offense) does not apply to certain entities, including a referral agency as defined by Section 121.001, Business & Commerce Code. Makes nonsubstantive changes. SECTION 3. Effective date: upon passage or September 1, 2025.
BILL ANALYSIS
Senate Research Center S.B. 1383
89R8791 JTZ-F By: Middleton; Johnson
Health & Human Services
4/8/2025
As Filed
Senate Research Center
S.B. 1383
89R8791 JTZ-F
By: Middleton; Johnson
Health & Human Services
4/8/2025
As Filed
AUTHOR'S / SPONSOR'S STATEMENT OF INTENT
State law currently does not directly regulate agencies that refer persons to senior living communities. The committee substitute to S.B. 1383 would address that issue by creating a chapter in the Business & Commerce Code specifically for referral agencies for senior living communities. Senior living communities would include adult foster care facilities, assisted living facilities, retirement villages, and any other facility that provides shelter, food, social activities, or other personal services specifically for elderly individuals. C.S.S.B. 1383 would establish requirements for referral services, including disclosure requirements. The bill would also codify certain prohibited conduct and duties of referral agencies. The bill would describe the range of compensation arrangements referral agencies and communities may enter and provide that current law relating prohibited compensation of health care providers does not apply to referral agencies as defined by the chapter. Finally, the bill would clarify that the law would not impact other laws regulating senior living communities, nor does it abrogate or lessen any existing defenses or remedies.
As proposed, S.B. 1383 amends current law relating to the regulation of referral agencies for senior living communities.
RULEMAKING AUTHORITY
This bill does not expressly grant any additional rulemaking authority to a state officer, institution, or agency.
SECTION BY SECTION ANALYSIS
SECTION 1. Amends Subtitle C, Title 5, Business & Commerce Code, by adding Chapter 121, as follows:
CHAPTER 121. REFERRAL AGENCIES FOR SENIOR LIVING COMMUNITIES
Sec. 121.001. DEFINITIONS. Defines "referral agency" and "senior living community."
Sec. 121.002. COMPENSATION. Authorizes a written contract executed between a referral agency and a senior living community to provide for the senior living community to pay compensation to the referral agency, including by providing to the referral agency a lump sum for all referrals made in a specified period, a fee for each referral based on the cost of rent and care the referred consumer receives, or a fixed fee for each referral.
SECTION 2. Amends Section 102.005, Occupations Code, as follows:
Sec. 102.005. APPLICABILITY TO CERTAIN ENTITIES. Provides that Section 102.001 (Soliciting Patients; Offense) does not apply to certain entities, including a referral agency as defined by Section 121.001, Business & Commerce Code. Makes nonsubstantive changes.
SECTION 3. Effective date: upon passage or September 1, 2025.