AB 255

This bill imposes several requirements related to referring individuals to an assisted living facility in exchange for a fee collected from the assisted living facility. The bill defines an “assisted living facility” as a community-based residential facility, a residential care apartment complex, or an adult family home.

Under the bill, an agency that refers a prospective resident to an assisted living facility must disclose to the resident any relationship the referral agency has with the assisted living facility, any fee that the assisted living facility will pay to the referral agency, and the fact that the referral agency lists on its website only those assisted living facilities with which the referral agency has a contractual relationship. In addition, under the bill, a prospective resident may at any time terminate all services provided to the resident by the referral agency, including the use of the resident’s personal information. Any fee charged or collected by a referral agency from an assisted living facility for a referral must be set in advance, must be consistent with fair market value, and must be charged or collected only after a resident confirms in writing that the resident utilized the referral agency to move into the assisted living facility. A fee may not be based upon the potential value of a resident to an assisted living facility or a percentage of the value of a professional service provided by the assisted living facility. A referral agency may charge or collect only one fee per referred resident, and no fee may be charged or collected if a resident moves into a referred assisted living facility more than one year after the referral agency and assisted living facility entered into a referral agreement for that resident.

A referral agency that violates the provisions of the bill may be required to forfeit up to $1,000 per violation.