Relating to the regulation of referral agencies for senior living communities, the official text

S.B. No. 1383

AN ACT

relating to the regulation of referral agencies for senior living

communities.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

SECTION 1. Subtitle C, Title 5, Business & Commerce Code, is

amended by adding Chapter 121 to read as follows:

CHAPTER 121. REFERRAL AGENCIES FOR SENIOR LIVING COMMUNITIES

Sec. 121.001. DEFINITIONS. In this chapter:

(1) "Consumer" means an individual seeking a referral

to a senior living community.

(2) "Referral agency" means an entity that provides

referrals of senior living communities to consumers for a fee

collected from a 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 any discount or other remuneration the

community pays to that individual.

(3) "Senior living community" means an adult foster

care facility, life care facility, assisted living facility

licensed under Chapter 247, Health and Safety Code, retirement

home, memory care facility, retirement village, home for the aging,

or other facility that provides shelter, food, social activities,

or other personal services specifically for elderly individuals.

Sec. 121.002. REFERRAL AGENCIES; REQUIRED DISCLOSURE. (a)

At the time of a referral, a referral agency shall provide a

disclosure statement to the consumer that includes:

(1) a description of the referral agency's services;

(2) a statement on whether the consumer or the senior

living community to which the consumer is referred is responsible

for paying the referral fee;

(3) a statement that the consumer may stop using the

referral agency at any time without cause or penalty; and

(4) a statement that the list of senior living

communities the referral agency provides to the consumer may not

include all communities in the area that meet the consumer's stated

preferences and needs.

(b) A referral agency shall provide the disclosure

statement described by Subsection (a) to a consumer in the form of a

written physical or electronic document.

(c) A referral agency shall consider the consumer's

preferences in selecting the senior living community to which the

agency refers the consumer, and a referral agency may not use cost

as the sole factor in that selection.

(d) A senior living community may not be required to

contract with or otherwise use a referral agency.

(e) If a consumer decides to stop using a referral agency,

the referral agency shall communicate the consumer's decision to

all senior living communities to which the referral agency has

referred the consumer.

Sec. 121.003. REFERRAL AGENCY PROHIBITED CONDUCT. A

referral agency may not:

(1) refer a consumer to a senior living community in

which the referral agency 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;

(3) knowingly refer a consumer to a senior living

community that is unlicensed and is not exempt from licensing under

applicable law;

(4) collect a referral fee when a consumer transfers

from one property of a senior living community to another property

of the same senior living community unless the consumer has engaged

the referral agency to help facilitate the consumer's transfer to

another property and the referral agency provided the consumer more

than one referral; or

(5) collect a referral fee after the expiration of the

referral according to the contract between the referral agency and

the senior living community.

Sec. 121.004. DUTIES. A referral agency shall:

(1) use a nationally accredited service provider to

obtain criminal history record information of:

(A) a new employee of the referral agency who

will have direct contact with a consumer; and

(B) a referral agency employee who physically

enters a senior living community for the purpose of making a

referral to a consumer;

(2) maintain liability insurance coverage for

negligent acts or omissions by the referral agency or its

employees;

(3) audit each senior living community with respect 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) provide training to all referral agency employees

whose job responsibilities require direct contact with a consumer,

including training on the referral agency's code of conduct, before

the employee begins performing those responsibilities;

(5) if a referral agency refers a consumer to a senior

living community, notify the senior living community of the

referral by a written physical or electronic document that includes

the time and date of the referral, on or before the date the

consumer is admitted to the senior living community; and

(6) if a referral agency enters into a contract with a

senior living community, specify in the contract the period within

which the senior living community must pay the referral agency, not

to exceed three years after the date the referral agency provided a

consumer a referral to the senior living community.

Sec. 121.005. COMPENSATION. (a) A written contract

entered into between a referral agency and a senior living

community may provide for the compensation of a referral agency for

all referrals made with respect to a senior living community, and

the amount of compensation may be based on the volume or value of

referrals made by the referral agency or business generated between

the parties.

(b) Notwithstanding any other law, compensation paid to a

referral agency that is in compliance with this section is not

grounds for disciplinary action against a senior living community.

(c) A referral agency may not offer or enter into a contract

authorized under this section for compensation prohibited under 42

U.S.C. Section 1320a-7b or any other federal law or rule.

Sec. 121.006. EFFECT OF LAW. This chapter does not:

(1) affect the application of any other law that

regulates a senior living community; or

(2) abrogate any other defense, remedy, immunity, or

privilege available under the Constitution of the United States or

this state or as provided by any statute, case, or common law or

rule.

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 121.001,

Business & Commerce Code.

SECTION 3. This Act takes effect immediately if it receives

a vote of two-thirds of all the members elected to each house, as

provided by Section 39, Article III, Texas Constitution. If this

Act does not receive the vote necessary for immediate effect, this

Act takes effect September 1, 2025.

______________________________
______________________________

President of the Senate
Speaker of the House

I hereby certify that S.B. No. 1383 passed the Senate on

April 30, 2025, by the following vote: Yeas 30, Nays 1; and that

the Senate concurred in House amendment on May 21, 2025, by the

following vote: Yeas 30, Nays 1.

______________________________

Secretary of the Senate

I hereby certify that S.B. No. 1383 passed the House, with

amendment, on May 16, 2025, by the following vote: Yeas 106,

Nays 15, one present not voting.

______________________________

Chief Clerk of the House

Approved:

______________________________

Date

______________________________

Governor