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ARIZONA STATE SENATE
Fifty-Seventh Legislature, Second Regular Session
assisted living facilities; referral agents
Purpose
Adds disclosure and insurance requirements for assisted living referral agencies.
Background
An assisted living referral agency must disclose to a prospective resident or the prospective resident's representative, by the time a referral is made for care at an assisted living facility or home, all of the following: 1) any business, financial, ownership or familial relationship between the referral agency and the assisted living facility or home; 2) that the assisted living facility or home pays a fee to the referral agency regarding the referral; and 3) the amount or good faith estimate of the fee that the assisted living facility or home will pay to the referral agency. The referral agency may describe the fee as a dollar amount or as a percentage of the prospective resident's first month's rent and care charges at the assisted living facility or home. The prospective resident may terminate all services of the referral agency at any time by providing a written or electronic termination notice. Upon receipt of the termination notice, the referral agency may not collect any fee for the resident's move-in after the date of the notice, with outlined exemptions.
Within 14 days after a resident is admitted to an assisted living facility or home, the facility or home must notify the referral agency of the resident's admission if the facility or home is contracted with the referral agency. No later than 14 days after receiving notice of the resident's admission, the referral agency must provide the assisted living facility or home with a written copy, electronic copy or recording of the prescribed disclosures made to the resident and the resident's acknowledgement of receiving the disclosure, along with the date and time of the disclosure. The assisted living facility or home must maintain a copy of the disclosure for as long as the resident is at the facility or home. The referral agency must maintain a copy of the disclosure and acknowledgement for one year. The assisted living facility or home must not pay any referral fee associated with a resident until the facility or home receives the required disclosure made to the resident and the resident's acknowledgement of receiving the disclosure.
A violation of the assisted living referral agency requirements is subject to a civil penalty of up to $1,000 for each violation. The Attorney General or a county attorney may institute a proceeding in superior court to recover the civil penalty and to restrain and enjoin a violation. A civil penalty recovered must be deposited into the general fund of the jurisdiction that prosecuted the violation (A.R.S. § 36-446.14).
There is no anticipated fiscal impact to the state General Fund associated with this legislation.
Provisions
1. Requires a referral agency to provide documentation to the assisted living facility or home that the referral agency is not on the adult protective services registry.
2. Requires a referral agency to procure, from an insurer authorized to do business in Arizona, the following insurance:
a) commercial general liability insurance in an amount of at least $1,000,000 per occurrence and $3,000,000 in the aggregate; and
b) professional liability insurance in an amount of at least $1,000,000 per occurrence and $3,000,000 in the aggregate.
3. Makes technical and conforming changes.
4. Becomes effective on the general effective date.
Prepared by Senate Research
February 8, 2026
JT/HD/ci