Relating to the regulation of referral agencies for senior living communities.

Contracts

Immediate Remediation Required. All Master Service Agreements (MSAs) between Agencies and Communities must be amended before September 1, 2025.

• Commission Cap: You must cap residual payments at three years post-referral. Perpetual tails are unenforceable.
• Transfer Fees: Remove clauses requiring fees for resident transfers within the same corporate brand, unless the agency actively facilitated the move with multiple options.
• Exclusivity: Remove any clauses requiring a community to use a referral agency exclusively.

Hiring/Training

• Background Checks: You must transition to a "nationally accredited" background check provider for all staff with consumer contact. Standard, non-accredited checks are no longer compliant.
• Code of Conduct: Staff must be trained on the statutory code of conduct, specifically the prohibition against referring to unlicensed facilities.

Reporting & Record-Keeping

• Consumer Disclosure: You must implement a mandatory "Point of Entry" disclosure (written/electronic) detailing fee responsibility, cancellation rights, and list limitations *before* or *at* the time of referral.
• Referral Notice: You must generate a timestamped "Written Notification of Referral" to the Senior Living Community *on or before* the date of admission to validate the fee.
• Audit Logs: You must maintain an internal record proving you verified the facility’s license standing with HHSC prior to sending the lead.

Fees & Costs

• Insurance Premiums: Referral agencies must purchase and maintain liability insurance for negligent acts or omissions. Budget for potential premium increases if current policies lack specific E&O coverage for referrals.
• Tech Integration: Budget for CRM updates to automate the delivery of the required disclosures and referral notices.