Committee approves bill limiting referral‑fee claims and requiring resident acknowledgment in assisted‑living placements

A committee substitute aimed at clarifying the referral and fee relationship between referral agencies and assisted‑living or personal‑care homes cleared a legislative panel by an 8‑1 vote.

Sponsor remarks described a negotiated compromise addressing two central concerns from testimony: (1) the duration during which a referral agency can claim fees (the bill moves from 36 months to a split 12‑plus‑12 structure where an initial 12‑month period must be renewed for the fee to remain claimable a second year); and (2) notification and documentation so prospective residents or their authorized representatives are informed that a referral agency may receive a placement fee. The substitute requires referral agencies to obtain and retain a documented acknowledgment—written, electronic or verbal—of the referral from a prospective resident or their representative; the acknowledgment is intended to record who first made the referral.

Sponsor and interested parties described competing positions: referral agencies had preferred a straight 24‑month window; assisted‑living operators favored a 12‑plus‑12 structure. Committee members asked how the bill affects contract remedies and whether federal anti‑kickback or Stark law issues apply; the sponsor said assisted‑living placements are private‑pay and not covered by federal Stark restrictions tied to federal dollars, and that disputes over nonpayment would remain civil contract matters between referral agencies and facilities.

Questions also addressed whether the bill required referral agencies to verify a facility’s standing through the Department of Community Health (DCH) portal; witnesses said that provision had been removed during negotiation and that referral agencies could be contractually obligated to perform checks but the substitute does not mandate DCH portal verification. The legislation includes a consumer‑protection enforcement path through the Attorney General’s Consumer Protection unit applying existing Fair Business Practices enforcement, according to a sponsor representative.

After extended Q&A with representatives from the Georgia Senior Living Association and others, the committee voted to pass the committee substitute (LC 443482 S / 3 48 2 s) by a recorded show of hands, 8‑1. The chair concluded committee business.