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A BILL to amend and reenact §
63.2-1803.1
of the Code of Virginia and to amend the Code of Virginia by adding in Chapter 18 of Title 63.2 an article numbered 1.1, consisting of sections numbered
63.2-1808.2
through
63.2-1808.5
, relating to assisted living facilities; resident referral agencies; required disclosures; referral fee limitations; civil penalty.
Be it enacted by the General Assembly of Virginia:
1. That §
63.2-1803.1
of the Code of Virginia is amended and reenacted and the Code of Virginia is amended by adding in Chapter 18 of Title 63.2 an article numbered 1.1, consisting of sections numbered
63.2-1808.2
through
63.2-1808.5
, as follows:
§
63.2-1803.1
. Assisted Living Facility Education, Training, and Technical Assistance Fund established.
There is hereby created in the state treasury a special nonreverting fund to be known as the Assisted Living Facility Education, Training, and Technical Assistance Fund, hereafter referred to as "the Fund." The Fund shall be established on the books of the Comptroller. All penalties directed to this fund by subdivision B 4 of §
63.2-1709.2
, §
63.2-1808.5
,
and all other funds from any public or private source directed to the Fund shall be paid into the state treasury and credited to the Fund. Interest earned on moneys in the Fund shall remain in the Fund and be credited to it. Any moneys remaining in the Fund, including interest thereon, at the end of each fiscal year shall not revert to the general fund but shall remain in the Fund. Moneys in the Fund shall be used solely for the purpose of providing education and training for staff of and technical assistance to assisted living facilities to improve the quality of care in such facilities. Expenditures and disbursements from the Fund shall be made by the State Treasurer on warrants issued by the Comptroller upon written request signed by the Commissioner.
Article
1.1
.
Resident
R
eferral
A
gencies
.
§
63.2-1808.2
.
D
efinitions
.
As used in this
article
, unless the context requires a different meaning:
"Referral fee" means any compensation, whether monetary or in-kind, received by a resident referral agency in exchange for referring a resident
who
moves into an assisted living facility as a direct result of the referral provided.
"Resident" means an individual who is considering moving into an assisted living facility or the individual's legal representative.
"
Resident
referral agency"
means any individual or entity that receives compensation from an assisted living facility for providing resident referrals to an assisted living facility.
§
63.2-1808.3
.
Resident referral agencies.
A
.
An assisted living facility is not obligated to participate with any
resident
referral agency. If
an
assisted living facility chooses to participate with a resident referral agency
,
the
assisted living facility
shall
retain the right to negotiate the terms of the referral
,
including the referral fee.
B
.
Contact and information requests made of the
resident r
eferral agency by family members, friends, and other contacts of the prospective resident
shall
not be considered an agreement
for
services by the resident.
F
or a referral agreement to be valid, the resident
shall
opt in to using the
resident r
eferral agency after reviewing the full disclosure of the terms of the referral. The resident is not obligated to participate with a
resident
r
eferral
a
gency and may opt out at any time in writing with an understanding that no referral fee will be paid should the
resident
opt out prior to moving into the referred assisted living facility.
C
. A
resident
referral agency shall provide
, at
a minimum
, the following
services before becoming eligible to receive a referral fee: (i) conducting an in-person, virtual, or telephone consultation with the resident to assess
the
needs and preferences of the resident
;
(ii) providing a minimum of three recommendations for assisted living facilities that align with the resident
'
s needs and preferences
;
and
(iii) assisting in scheduling and coordinating tours of the referred assisted living facilities.
§
63.2-1808.3
. Resident referral agencies; required disclosures
.
A
.
Resident referral agencies shall disclose
the following information
to residents:
1.
Documentation of the existence of any relationships between the
resident
referral agency and
any
assisted living facility, including common ownership or control of the assisted living facility, and financial, business, management, or familial relationships between the
resident
referral agency and the assisted living facility.
2. The nature of the compensation arrangement between the res
i
dent referral agency and
any
assisted living facility
,
specifically listing any fees
to
be paid to the
resident
referral agency as a result of
its
referral
;
3. The limitations on referral fees
pursuant to
§
63.2-1808.4
;
4. A statement clarifying that assisted living facilities may also be identified through noncommercial sources, such as
the Department
, nonprofit organizations, and public internet searches
;
5. A statement that not all licensed assisted living facilities may be included in the list of recommendations provided by the
resident
referral agency; and
6.
A
detailed listing of
the
services
to
be provided to the resident by the resident referral agency.
B.
Such disclosure shall be made in writing
before the referral process
begins
and shall be signed by the resident
.
The resident referral agency shall provide a written or electronic copy of the signed disclosure to the resident and to the assisted living facility on or before the date
a
resident is to be admitted to the assisted living facility.
An assisted living facility shall not pay the referral
fee
until
such
disclosure
has been provided
.
§
63.2-1808.4
.
Resident referral agencies;
referral fee limitations.
A
.
A resident referral agency shall only be permitted to collect a referral fee once per individual resident. If a resident relocates to a different assisted living facility after having previously been referred
to such assisted living facility
, the
resident
referral agency shall not be entitled to an additional referral fee for the same resident.
B.
A
resident referral agency may not receive
a
referral fee for any resident
for whom it
is an agent
under
power of attorney.
C
.
A
n
assisted living facility shall not be required to pay multiple referral fees for a single resident based on prior referrals.
D.
If a resident initiated the services of multiple resident referral agencies that attempt to collect a referral fee from an assisted living facility, the resident shall be required to disclose which
resident
referral agency provided the most assistance, and
only
the identified
resident
referral agency
shall
be
entitled to the referral fee.
E
.
A resident referral agency
may only claim a referral fee if the
resident
moves in
to
an assisted living facility
within 24 month
s
of referral to such assisted living facility
.
F.
A resident referral agency shall not maintain or utilize a resident
'
s personal information for referral compensation purposes beyond a period of 24 months from receipt of the signed disclosure agreement by the resident.
If no referral fee is claimed within
such
24
-
month period, the resident referral agency shall destroy information retained about the resident.
Nothing in this section shall prohibit a resident from reinitiating the services of a resident referral agency after
such
24
-
month period.
§
63.2-1808.5
.
Enforcement
; civil
penalt
y
.
The Attorney General
shall oversee compliance with
the
requirements
set forth in
this article
.
A
ny person who fails to comply with this article is subject to a
civil penalty not to exceed $10,000 per violatio
n
.
Such penalty
shall be collected
by the
Attorney General
and the proceeds
shall be
deposited
in
to the Assisted Living Facility Education, Training, and Technical Assistance Fund
established
pursuant to §
63.2-1803.1
.