HB3843 - Relating to the regulation of assisted living facilities and referral of clients to the facilities by referral agencies; authorizing a civil penalty.

      By: Y. Davis of Dallas H.B. No. 3843       A BILL TO BE ENTITLED   AN ACT   relating to the regulation of assisted living facilities and   referral of clients to the facilities by referral agencies;   authorizing a civil penalty.          BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:          SECTION 1.  Subchapter D, Chapter 247, Health and Safety   Code, is amended by adding Section 247.072 to read as follows:           Sec.   247.072.     PROHIBITED SALE OR TRANSFER OF CLIENT   INFORMATION. (a) In this section, "client" has the meaning   assigned by Section 247.151.           (b)     An assisted living facility may not sell or transfer a   client's contact information to a third party without the client's   written consent.          SECTION 2.  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 a prospective resident of an   assisted living facility or a prospective resident's   representative seeking assistance with entering into an   arrangement with the facility through a referral agency.                 (2)     "Referral agency" means a person who for   compensation provides client referral services to individuals or   assisted living facilities.                 (3)     "Referred assisted living facility" means an   assisted living facility to which a client of a referral agency has   been referred by the agency.           Sec.   247.152.     FORM AND TERMS OF AGREEMENT. (a) An   agreement for referral services between a referral agency and   client must be in writing, dated, and signed by the client and   agency.           (b)  The agreement must include:                 (1)     a statement of the client's right to terminate the   referral agency's services for any reason and at any time; and                 (2)     a provision requiring the referral agency to   communicate the cancellation of the agreement to all assisted   living facilities to which the agency referred the client.           Sec.   247.153.     DISCLOSURE STATEMENT. (a) At the time a   client enters into an agreement for referral to an assisted living   facility, a referral agency shall provide a written disclosure   statement to the client containing:                 (1)     a statement on whether the referral agency or   agency personnel have a relationship with the referred assisted   living facility, including:                       (A)     common ownership in or control of the   facility; or                       (B)     a financial, business, management, or   familial relationship between the referral agency or agency   personnel and the facility;                 (2)     a statement that the referral agency receives a   fee from the referred assisted living facility; and                 (3)     a copy of the written agreement for services   between the referral agency and client.           (b)     The client and referral agency shall sign and date the   disclosure statement.           (c)     The referral agency shall provide a written or   electronic copy of a disclosure statement that complies with this   section to the referred assisted living facility on or before the   date the client is admitted as a resident to the facility.           (d)     The assisted living facility shall maintain a copy of a   disclosure statement provided under Subsection (c) until at least   the first anniversary of the date the resident is admitted to the   facility.           Sec.   247.154.     CLIENT REFERRAL SERVICES FEE. (a) An   assisted living facility to which a client of a referral agency has   been referred by the agency may only pay the referral agency a fee   for those referral services:                 (1)     after the facility receives a copy of the   disclosure statement required by Section 247.153(c); or                 (2)     if applicable, on or after the date on which the   agreement between the referral agency and client is canceled.           (b)     A referral agency may not charge a referral services fee   to an assisted living facility if:                 (1)     the referral agency refers the client to the   assisted living facility, but the client does not select the   facility; or                 (2)     the referral agency does not refer the client to   the assisted living facility.           Sec.   247.155.     CIVIL PENALTY. (a) A referral agency that   violates this subchapter is liable to this state for a civil penalty   not to exceed $500 for each violation.   Each day of a continuing   violation constitutes a separate violation.           (b)     At the request of the commission, the attorney general   may bring an action in the name of the state to recover a civil   penalty under this section.           (c)     A civil penalty collected under this section shall be   deposited in the state treasury to the credit of the general revenue   fund.          SECTION 3.  The changes in law made by this Act apply only to   an agreement for referral services entered into on or after the   effective date of this Act.  An agreement for referral services   entered into before the effective date of this Act is governed by   the law in effect on the date on which the agreement was entered   into, and the former law is continued in effect for that purpose.          SECTION 4.  This Act takes effect September 1, 2025.