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A BILL TO BE ENTITLED
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AN ACT
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relating to the regulation of assisted living facilities and |
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referral of clients to the facilities by referral agencies; |
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authorizing a civil penalty. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Subchapter D, Chapter 247, Health and Safety |
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Code, is amended by adding Section 247.072 to read as follows: |
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Sec. 247.072. PROHIBITED SALE OR TRANSFER OF CLIENT |
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INFORMATION. (a) In this section, "client" has the meaning |
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assigned by Section 247.151. |
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(b) An assisted living facility may not sell or transfer a |
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client's contact information to a third party without the client's |
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written consent. |
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SECTION 2. Chapter 247, Health and Safety Code, is amended |
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by adding Subchapter F to read as follows: |
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SUBCHAPTER F. REFERRAL AGENCIES |
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Sec. 247.151. DEFINITIONS. In this subchapter: |
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(1) "Client" means a prospective resident of an |
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assisted living facility or a prospective resident's |
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representative seeking assistance with entering into an |
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arrangement with the facility through a referral agency. |
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(2) "Referral agency" means a person who for |
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compensation provides client referral services to individuals or |
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assisted living facilities. |
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(3) "Referred assisted living facility" means an |
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assisted living facility to which a client of a referral agency has |
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been referred by the agency. |
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Sec. 247.152. FORM AND TERMS OF AGREEMENT. (a) An |
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agreement for referral services between a referral agency and |
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client must be in writing, dated, and signed by the client and |
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agency. |
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(b) The agreement must include: |
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(1) a statement of the client's right to terminate the |
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referral agency's services for any reason and at any time; and |
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(2) a provision requiring the referral agency to |
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communicate the cancellation of the agreement to all assisted |
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living facilities to which the agency referred the client. |
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Sec. 247.153. DISCLOSURE STATEMENT. (a) At the time a |
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client enters into an agreement for referral to an assisted living |
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facility, a referral agency shall provide a written disclosure |
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statement to the client containing: |
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(1) a statement on whether the referral agency or |
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agency personnel have a relationship with the referred assisted |
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living facility, including: |
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(A) common ownership in or control of the |
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facility; or |
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(B) a financial, business, management, or |
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familial relationship between the referral agency or agency |
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personnel and the facility; |
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(2) a statement that the referral agency receives a |
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fee from the referred assisted living facility; and |
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(3) a copy of the written agreement for services |
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between the referral agency and client. |
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(b) The client and referral agency shall sign and date the |
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disclosure statement. |
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(c) The referral agency shall provide a written or |
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electronic copy of a disclosure statement that complies with this |
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section to the referred assisted living facility on or before the |
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date the client is admitted as a resident to the facility. |
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(d) The assisted living facility shall maintain a copy of a |
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disclosure statement provided under Subsection (c) until at least |
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the first anniversary of the date the resident is admitted to the |
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facility. |
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Sec. 247.154. CLIENT REFERRAL SERVICES FEE. (a) An |
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assisted living facility to which a client of a referral agency has |
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been referred by the agency may only pay the referral agency a fee |
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for those referral services: |
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(1) after the facility receives a copy of the |
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disclosure statement required by Section 247.153(c); or |
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(2) if applicable, on or after the date on which the |
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agreement between the referral agency and client is canceled. |
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(b) A referral agency may not charge a referral services fee |
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to an assisted living facility if: |
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(1) the referral agency refers the client to the |
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assisted living facility, but the client does not select the |
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facility; or |
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(2) the referral agency does not refer the client to |
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the assisted living facility. |
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Sec. 247.155. CIVIL PENALTY. (a) A referral agency that |
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violates this subchapter is liable to this state for a civil penalty |
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not to exceed $500 for each violation. Each day of a continuing |
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violation constitutes a separate violation. |
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(b) At the request of the commission, the attorney general |
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may bring an action in the name of the state to recover a civil |
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penalty under this section. |
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(c) A civil penalty collected under this section shall be |
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deposited in the state treasury to the credit of the general revenue |
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fund. |
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SECTION 3. The changes in law made by this Act apply only to |
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an agreement for referral services entered into on or after the |
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effective date of this Act. An agreement for referral services |
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entered into before the effective date of this Act is governed by |
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the law in effect on the date on which the agreement was entered |
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into, and the former law is continued in effect for that purpose. |
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SECTION 4. This Act takes effect September 1, 2021. |