89R10602 JTZ-D
By: West S.B. No. 2562
A BILL TO BE ENTITLED
AN ACT
relating to the regulation of referral agencies for assisted living
facilities; providing a civil penalty.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. 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 an individual seeking assistance
with entering into an arrangement with an assisted living facility
through a referral agency.
(2) "Referral agency" means an individual or entity
that refers clients to assisted living facilities for a fee
collected from a client or facility. The term does not include:
(A) an assisted living facility or its employees;
or
(B) a resident, resident's family member, or
patron of an assisted living facility who refers a consumer to the
facility regardless of any discount or other remuneration the
facility pays to that individual.
Sec. 247.152. DISCLOSURE REQUIRED. (a) A referral agency
shall provide a written disclosure statement to each client before
referring the client to an assisted living facility.
(b) The disclosure statement must contain the following
information:
(1) a statement acknowledging the client may cease
using the services of the referral agency for any reason and at any
time;
(2) a statement that the client may elect not to
receive further communications from the referral agency; and
(3) a statement that the client on request to the
referral agency may receive a copy of the referral agency's privacy
policy.
(c) A referral agency and client shall each sign and date
the disclosure statement required by Subsection (a), either in
writing or electronically.
(d) A referral agency must provide a copy of the signed
disclosure statement to an assisted living facility on or before
the date the referral agency's client is admitted to the facility.
(e) An assisted living facility:
(1) may not pay a referral agency a referral fee until
the facility receives the copy of the signed disclosure statement
required under Subsection (d); and
(2) shall maintain the copy until the first
anniversary of the date the client who signed the statement is
admitted to the facility.
Sec. 247.153. LIMITATION ON REFERRALS. A referral agency
may not refer a client to more than a reasonable number of assisted
living facilities as prescribed by the commission for the purpose
of denying another referral agency a referral fee.
Sec. 247.154. CIVIL PENALTY. (a) At the request of the
commission, the attorney general shall bring an action to collect a
civil penalty from a referral agency that violates this subchapter.
(b) The civil penalty may not exceed $1,000 for each
violation. Each day of a continuing violation constitutes a
separate violation.
Sec. 247.155. RULES. The executive commissioner shall
adopt rules necessary to implement this subchapter.
SECTION 2. As soon as practicable after the effective date
of this Act, the executive commissioner of the Health and Human
Services Commission shall adopt rules necessary to implement
Subchapter F, Chapter 247, Health and Safety Code, as added by this
Act.
SECTION 3. This Act takes effect September 1, 2025.