23/06/2025
Attention: Source of information, National Placement Referral Alliance (NPRA)
SB 1383 was enacted on June 20, 2025, and became effective immediately.
What SB 1383 Does
SB 1383 introduces a new Chapter 121 in the Texas Business & Commerce Code to govern referral agencies—businesses that connect seniors and their families with senior housing communities for a fee.
Key provisions include:
Transparent disclosures: Agencies must provide written (or electronic) notices to consumers detailing services offered, who pays referral fees, right to discontinue at any time, and that not all available options may be included
Ethical conduct safeguards: Agencies are expressly prohibited from referring clients to facilities in which they hold financial interest, to unlicensed communities, or collecting unwarranted fees
Professional operating standards: Enforcement of criminal background checks, liability insurance, audits of licensed facilities, and mandatory staff training ensures accountability
Permitted compensation: SB1383 explicitly authorizes percentage-based or volume-based compensation, stating that: “Compensation to a referral agency based on the volume or value of referrals… is not a kickback or illegal remuneration if the agreement complies with this chapter.” (§121.005)
A Model for Other States
With a light fiscal impact and no new licensing authority required, SB 1383 offers a practical, impactful template for other states seeking to bring clarity, transparency, and professionalism to senior placement agencies.
