Bill Caption

Relating to the regulation of referral agencies for senior living communities; providing a civil penalty. 

Fiscal Notes

No significant fiscal implication to the State is anticipated. 

Bill Analysis

HB 3037 would make a number of regulatory updates with respect to referral agencies which provide consumer referrals to senior living communities for a fee. 

HB 3037 would require a referral agency to provide a disclosure statement before or at the time of the referral that includes a description of the agency's service, the agency's contact information, an internet website link to the agency's privacy policy, and a statement on whether the consumer or the senior living community is responsible for paying the referral fee. This disclosure must be provided in a clear and conspicuous manner via written document, electronic means, or an oral disclosure that is recorded and maintained by the agency. 

HB 3037 prevents referral agencies from referring a consumer to a senior living facility when a member of the agency has an ownership, management or financial interest in that facility, hold power of attorney for a consumer or their property, or knowingly refer a consumer to a senior living community that is unlicensed. 

HB 3037 requires referral agencies: to use a nationally accredited service provider to obtain criminal history record information; maintain liability insurance; at least twice a year audit each senior living community that they refer clients to; maintain a code of conduct; provide all referral agency employees with training before the employee begins performing direct contact services; disclose to the consumer all senior living communities that best meet the consumer's stated criteria located in the closest to the consumer's preferred location; and maintain and publish a privacy policy on the referral agency's website, telephone number, and email address for inquiries. 

A referral agency that violates this chapter is subject to a civil penalty in an amount not less than $250 and not more than $1,000 for each violation. The attorney general or a district attorney may bring an action to recover this civil penalty and to restrain and enjoin a violation of this chapter. 

Vote Recommendation Notes

Texas Action opposes HB 3037 which is inconsistent with our limited government and free market principles.