87R18584 SRA-F
 
  By: Raymond, Frank, Hinojosa, Rose, et al. H.B. No. 3037
 
 
 
A BILL TO BE ENTITLED
 
AN ACT
  relating to the regulation of referral agencies for senior living
  communities; providing a civil penalty.
         BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
         SECTION 1.  Subtitle G, Title 4, Health and Safety Code, is
  amended by adding Chapter 327 to read as follows:
  CHAPTER 327. REFERRAL AGENCIES FOR SENIOR LIVING COMMUNITIES
  SUBCHAPTER A. GENERAL PROVISIONS
         Sec. 327.001.  DEFINITIONS. In this chapter:
               (1)  "Consumer" means an individual seeking a referral
  to a senior living community.
               (2)  "Referral" means identifying and connecting a
  consumer or the consumer's representative to a senior living
  community to facilitate an evaluation, in consultation with the
  community, of whether the community is a suitable option for the
  consumer.
               (3)  "Referral agency" means an entity that provides to
  a consumer referrals to senior living communities for a fee
  collected from the 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 whether that individual receives a discount
  or other remuneration from the community.
               (4)  "Senior living community" means an adult foster
  care facility, life care facility, nursing facility licensed under
  Chapter 242, assisted living facility licensed under Chapter 247,
  retirement home, retirement village, home for the aging, or other
  facility that provides shelter, food, health care, social
  activities, or other personal services specifically for elderly
  individuals.
  SUBCHAPTER B. REFERRAL AGENCY REGULATION
         Sec. 327.051.  REQUIRED DISCLOSURE. (a) Before or at the
  time of the referral, a referral agency shall provide a disclosure
  statement to a consumer that includes:
               (1)  a description of the referral agency's service;
               (2)  the referral agency's contact information,
  including a telephone number;
               (3)  an Internet website link to the referral agency's
  privacy policy; and
               (4)  a statement on whether the consumer or the senior
  living community to which the consumer is referred is responsible
  for paying the referral fee.
         (b)  The referral agency may provide the disclosure
  statement to a consumer or consumer's representative by:
               (1)  a clear and conspicuous written physical document
  that is designed to provide notice of its contents;
               (2)  a clear and conspicuous electronic disclosure that
  is designed to provide notice of its contents; or
               (3)  an oral disclosure by telephone, provided that the
  disclosure is recorded and the recording is maintained in the
  records of the referral agency.
         (c)  A referral agency shall maintain a record of the
  disclosure statement until the third anniversary of the date of the
  referral. The referral agency shall provide on request a copy of the
  record to the consumer, the consumer's representative, or a senior
  living community.
         Sec. 327.052.  REFERRAL AGENCY PROHIBITED CONDUCT. A
  referral agency or referral agency employee may not:
               (1)  refer a consumer to a senior living community in
  which the referral agency, the referral agency employee, or an
  immediate family member of the employee, as applicable, 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; or
               (3)  knowingly refer a consumer to a senior living
  community that is unlicensed and is not exempt from licensing under
  applicable law.
         Sec. 327.053.  DUTIES. A referral agency shall:
               (1)  use a nationally accredited service provider to
  obtain criminal history record information, in accordance with
  applicable law, on a referral agency employee who has direct
  contact with a consumer or a consumer's representative;
               (2)  maintain liability insurance coverage for
  negligent acts or omissions by the referral agency or its
  employees;
               (3)  at least twice a year audit each senior living
  community 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)  maintain a code of conduct applicable to all
  referral agency employees;
               (5)  provide all referral agency employees whose job
  responsibilities require direct contact with a consumer or a
  consumer's representative with at least 40 hours of introductory
  training, including training on the referral agency's code of
  conduct, before the employee begins performing those
  responsibilities;
               (6)  disclose to the consumer or the consumer's
  representative all senior living communities that best meet the
  consumer's stated criteria that are located in the closest
  proximity to the consumer's preferred location; and
               (7)  maintain and publish a privacy policy on the
  referral agency's Internet website and a telephone number and
  e-mail address for privacy inquiries.
         Sec. 327.054.  CIVIL PENALTY. (a) A referral agency that
  violates this chapter is subject to a civil penalty in an amount
  equal to not less than $250 and not more than $1,000 for each
  violation.
         (b)  The attorney general or a district attorney may bring an
  action to recover a civil penalty imposed under Subsection (a) and
  to restrain and enjoin a violation of this chapter. The attorney
  general or a district attorney may recover attorney's fees and
  litigation costs incurred in bringing the action.
         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 327.001,
  Health and Safety Code.
         SECTION 3.  This Act takes effect September 1, 2021.