HB2667 - Relating to the regulation of referral agencies for senior living communities.

  89R22093 JTZ-F     By: King, et al. H.B. No. 2667     Substitute the following for H.B. No. 2667:     By:  Hull C.S.H.B. No. 2667       A BILL TO BE ENTITLED   AN ACT   relating to the regulation of referral agencies for senior living   communities.          BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:          SECTION 1.  Subtitle C, Title 5, Business & Commerce Code, is   amended by adding Chapter 121 to read as follows:   CHAPTER 121. REFERRAL AGENCIES FOR SENIOR LIVING COMMUNITIES           Sec. 121.001.  DEFINITIONS. In this chapter:                 (1)     "Consumer" means an individual seeking a referral   to a senior living community.                 (2)     "Referral agency" means an entity that provides   referrals of senior living communities to consumers for a fee   collected from a consumer or community. The term does not include:                       (A)     a senior living community or its employees;   or                       (B)     a resident, resident's family member, or   patron of a senior living community who refers a consumer to the   community regardless of any discount or other remuneration the   community pays to that individual.                 (3)     "Senior living community" means an adult foster   care facility, life care facility, assisted living facility   licensed under Chapter 247, Health and Safety Code, retirement   home, memory care facility, retirement village, home for the aging,   or other facility that provides shelter, food, social activities,   or other personal services specifically for elderly individuals.           Sec.   121.002.     REFERRAL AGENCIES; REQUIRED DISCLOSURE. (a)   At the time of a referral, a referral agency shall provide a   disclosure statement to the consumer that includes:                 (1)  a description of the referral agency's services;                 (2)     a statement on whether the consumer or the senior   living community to which the consumer is referred is responsible   for paying the referral fee; and                 (3)     a statement that the consumer may stop using the   referral agency at any time without cause or penalty.           (b)     A referral agency shall provide the disclosure   statement described by Subsection (a) to a consumer in the form of a   written physical or electronic document.           (c)     A referral agency shall consider the consumer's   preferences in selecting the senior living community to which the   agency refers the consumer, and a referral agency may not use cost   as the sole factor in that selection.           (d)     A senior living community may not be required to   contract with or otherwise use a referral agency.           (e)     If a consumer decides to stop using a referral agency,   the referral agency shall communicate the consumer's decision to   all senior living communities to which the referral agency has   referred the consumer. A consumer's decision to stop using a   referral agency does not affect a contractual agreement, if any,   between the referral agency and a senior living community.           Sec.   121.003.     REFERRAL AGENCY PROHIBITED CONDUCT. A   referral agency may not:                 (1)     refer a consumer to a senior living community in   which the referral agency has an ownership, management, or   financial interest;                 (2)     hold a power of attorney for a consumer or hold a   consumer's property in any capacity;                 (3)     knowingly refer a consumer to a senior living   community that is unlicensed and is not exempt from licensing under   applicable law;                 (4)     collect a referral fee when a consumer transfers   from one property of a senior living community to another property   of the same senior living community unless the consumer has engaged   the referral agency to help facilitate the consumer's transfer to   another property and the referral agency provided the consumer more   than one referral; or                 (5)     collect a referral fee after the expiration of the   referral according to the contract between the referral agency and   the senior living community.           Sec. 121.004.  DUTIES. A referral agency shall:                 (1)     use a nationally accredited service provider to   obtain criminal history record information of:                       (A)     a new employee of the referral agency who   will have direct contact with a consumer; and                       (B)     a referral agency employee who physically   enters a senior living community for the purpose of making a   referral to a consumer;                 (2)     maintain liability insurance coverage for   negligent acts or omissions by the referral agency or its   employees;                 (3)     audit each senior living community with respect to   which the referral agency provides referrals to ensure that any   applicable license is in good standing and maintain a record of that   audit;                 (4)     provide training to all referral agency employees   whose job responsibilities require direct contact with a consumer,   including training on the referral agency's code of conduct, before   the employee begins performing those responsibilities;                 (5)     if a referral agency refers a consumer to a senior   living community, notify the senior living community of the   referral by a written physical or electronic document that includes   the time and date of the referral, on or before the date the   consumer is admitted to the senior living community; and                 (6)     if a referral agency enters into a contract with a   senior living community, specify in the contract the period within   which the senior living community must pay the referral agency, not   to exceed three years after the date the referral agency provided a   consumer a referral to the senior living community.           Sec.   121.005.     COMPENSATION. (a) A written contract   entered into between a referral agency and a senior living   community may provide for the compensation of a referral agency for   all referrals made with respect to a senior living community, and   the amount of compensation may be based on the volume or value of   referrals made by the referral agency or business generated between   the parties.           (b)     Notwithstanding any other law, compensation paid to a   referral agency that is in compliance with this section is not   grounds for disciplinary action against a senior living community.           Sec. 121.006.  EFFECT OF LAW. This chapter does not:                 (1)     affect the application of any other law that   regulates a senior living community; or                 (2)     abrogate any other defense, remedy, immunity, or   privilege available under the Constitution of the United States or   this state or as provided by any statute, case, or common law or   rule.          SECTION 2.  Section 102.005, Occupations Code, is amended to   read as follows:          Sec. 102.005.  APPLICABILITY TO CERTAIN ENTITIES. Section   102.001 does not apply to:                (1)  a licensed insurer;                (2)  a governmental entity, including:                      (A)  an intergovernmental risk pool established   under Chapter 172, Local Government Code; and                      (B)  a system as defined by Section 1601.003,   Insurance Code;                (3)  a group hospital service corporation;                (4)  a health maintenance organization that   reimburses, provides, offers to provide, or administers hospital,   medical, dental, or other health-related benefits under a health   benefits plan for which it is the payor; [ or ]                (5)  a health care collaborative certified under   Chapter 848, Insurance Code ; or                 (6)     a referral agency as defined by Section 121.001,   Business & Commerce Code .          SECTION 3.  This Act takes effect immediately if it receives   a vote of two-thirds of all the members elected to each house, as   provided by Section 39, Article III, Texas Constitution. If this   Act does not receive the vote necessary for immediate effect, this   Act takes effect September 1, 2025.