Senate Engrossed House Bill




State of Arizona

House of Representatives

Fifty-third Legislature

Second Regular Session











amending title 36, chapter 4, article 6, Arizona Revised Statutes; by adding section 36‑446.14; relating to assisted living facilities.




Be it enacted by the Legislature of the State of Arizona:

Section 1.  Title 36, chapter 4, article 6, Arizona Revised Statutes, is amended by adding section 36-446.14, to read:

START_STATUTE36-446.14.  Referral agencies; requirements; civil penalty; definition

A.  A referral agency shall disclose to any prospective resident or representative of a prospective resident who has been referred by the referral agency for care at an assisted living facility both of the following:

1.  The existence of any current business relationship between the referral agency and the assisted living facility, including any common ownership or control and any other financial, business, management or familial relationship that exists between the referral agency and the assisted living facility.

2.  The fee the assisted living facility pays to the referral agency in connection with the referral.

B.  Documentation of the disclosure required by subsection A of this section shall be signed and dated by both the prospective resident or representative and the referral agency.  A copy of the signed disclosure shall be provided to the assisted living facility at the time or before the resident is admitted to the assisted living facility.  A copy of the signed disclosure shall be maintained on file at the assisted living facility.  the documentation and signatures required under this subsection may be in written or electronic format.

C.  The assisted living facility may not pay any referral fee associated with a resident until the assisted living facility receives the signed disclosure required by subsection B of this section.

D.  A referral agency that violates this section is subject to a civil penalty of up to one thousand dollars for each violation.  The attorney general or a county attorney may institute a proceeding in superior court to recover the civil penalty under this subsection and to restrain and enjoin a violation of this section.  Any civil penalty recovered pursuant to this subsection shall be deposited in the general fund of the jurisdiction that prosecuted the violation.

E.  For the purposes of this section, "referral agency":

1.  Means a person or entity that provides referrals for a fee that is collected from either the patient or the assisted living facility.

2.  Does not include either:

(a)  An assisted living facility or its employees.

(b)  A resident, a resident's family member or a patron of an assisted living facility who refers a prospective resident to an assisted living facility and receives a discount or other remuneration from the assisted living facility. END_STATUTE