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A BILL TO BE ENTITLED
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AN ACT
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relating to the regulation of referral agencies for assisted living |
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facilities; providing a civil penalty. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. 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 an individual seeking assistance |
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with entering into an arrangement with an assisted living facility |
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through a referral agency. |
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(2) "Referral agency" means an individual or entity |
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that refers clients to assisted living facilities for a fee |
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collected from a client or facility. The term does not include: |
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(A) an assisted living facility or its employees; |
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or |
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(B) a resident, resident's family member, or |
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patron of an assisted living facility who refers a consumer to the |
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facility regardless of any discount or other remuneration the |
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facility pays to that individual. |
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Sec. 247.152. DISCLOSURE REQUIRED. (a) A referral agency |
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shall provide a written disclosure statement to each client before |
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referring the client to an assisted living facility. |
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(b) The disclosure statement must contain the following |
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information: |
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(1) a statement acknowledging the client may cease |
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using the services of the referral agency for any reason and at any |
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time; |
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(2) a statement that the client may elect not to |
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receive further communications from the referral agency; and |
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(3) a statement that the client on request to the |
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referral agency may receive a copy of the referral agency's privacy |
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policy. |
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(c) A referral agency and client shall each sign and date |
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the disclosure statement required by Subsection (a), either in |
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writing or electronically. |
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(d) A referral agency must provide a copy of the signed |
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disclosure statement to an assisted living facility on or before |
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the date the referral agency's client is admitted to the facility. |
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(e) An assisted living facility: |
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(1) may not pay a referral agency a referral fee until |
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the facility receives the copy of the signed disclosure statement |
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required under Subsection (d); and |
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(2) shall maintain the copy until the first |
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anniversary of the date the client who signed the statement is |
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admitted to the facility. |
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Sec. 247.153. LIMITATION ON REFERRALS. A referral agency |
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may not refer a client to more than a reasonable number of assisted |
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living facilities as prescribed by the commission for the purpose |
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of denying another referral agency a referral fee. |
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Sec. 247.154. CIVIL PENALTY. (a) At the request of the |
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commission, the attorney general shall bring an action to collect a |
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civil penalty from a referral agency that violates this subchapter. |
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(b) The civil penalty may not exceed $1,000 for each |
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violation. Each day of a continuing violation constitutes a |
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separate violation. |
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Sec. 247.155. RULES. The executive commissioner shall |
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adopt rules necessary to implement this subchapter. |
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SECTION 2. As soon as practicable after the effective date |
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of this Act, the executive commissioner of the Health and Human |
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Services Commission shall adopt rules necessary to implement |
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Subchapter F, Chapter 247, Health and Safety Code, as added by this |
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Act. |
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SECTION 3. This Act takes effect September 1, 2025. |