Bill Text: TX SB1982 | 2021-2022 | 87th Legislature | Introduced
Bill Title: Relating to the regulation of referral agencies for senior living communities; providing a civil penalty.
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Introduced - Dead) 2021-04-01 - Referred to Health & Human Services [SB1982 Detail]
Download: Texas-2021-SB1982-Introduced.html
| By: Miles | S.B. No. 1982 | |
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| 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 | ||
| representative unless the community or its representative receives | ||
| compensation for a referral; 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 in an amount | ||
| of at least $2 million per occurrence and $5 million in total annual | ||
| aggregate 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) limit referrals to a senior living community with | ||
| which the referral agency has a written contract; | ||
| (7) engage an independent third party auditor to | ||
| annually audit the referral agency's financial statements; and | ||
| (8) maintain and publish a privacy policy on the | ||
| referral agency's Internet website and a toll-free telephone number | ||
| and e-mail address for privacy inquiries. | ||
| Sec. 327.054. CERTAIN COMPENSATED REFERRALS PROHIBITED. A | ||
| person employed by, providing services for, or acting on behalf of a | ||
| governmental agency, hospital, or other health care facility, | ||
| including a health care provider, social worker, therapist, or case | ||
| manager, may not offer, provide, or accept a payment, rebate, | ||
| refund, commission, preference, or discount, whether in the form of | ||
| money or other consideration, as payment, compensation, or | ||
| inducement for referring a consumer to a senior living community. | ||
| Sec. 327.055. 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; [ |
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| (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. | ||
