SB2562 - Relating to the regulation of referral agencies for assisted living facilities; providing a civil penalty.

  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.