Relating to the regulation of referral agencies for assisted living facilities; providing a civil penalty.
The bill adds a new subchapter to Chapter 247 of the Health and Safety Code that outlines the obligations of referral agencies, including a requirement for written disclosure acknowledging clients' rights. This aims to ensure that clients are fully aware of their choices and the nature of the assistance being provided. By imposing limits on the number of referrals that can be made, the legislation seeks to prevent any unfair practices that could disadvantage other agencies in the market.
Senate Bill 2562 seeks to regulate referral agencies involved in guiding clients to assisted living facilities in Texas. The bill establishes a framework for these agencies, requiring them to provide specific disclosures to clients prior to referrals. This includes the client's right to cease using the agency's services at any time. The regulation aims to foster transparency and protect consumers who may depend on referral agencies for access to assisted living services.
A notable aspect of SB2562 is the introduction of civil penalties for referral agencies that fail to comply with the new requirements. Violations can result in penalties of up to $1,000 per incident, which may serve as a significant deterrent for non-compliance. The enforcement mechanism, with the Attorney General empowered to take action against violators, underscores the bill's seriousness in protecting consumers from misleading or fraudulent practices within the assisted living referral industry.