Texas Senate bill by Sen. Middleton sets regulations for senior living referral agencies

Passed bill authored by State Sen. Mayes Middleton aims to establish regulatory standards for referral agencies that connect consumers to senior living communities, seeking to clarify definitions and compensation structures within the industry, according to the Texas Legislature website.

In the Senate, 10 Democrats and 20 Republicans voted in favor of the bill, while one Democrat opposed it.

Meanwhile, in the House, 43 Democrats and 62 Republicans voted in favor, while three Democrats and 12 Republicans voted against it.

Mayes Middleton introduced the bill in the Texas Senate on Wednesday, Feb. 19, during the 89th regular legislative session.

Middleton graduated from the University of Texas at Austin with a BA and again from University of Texas Law School with a JD.

Middleton, a Republican, was elected to the Texas State Senate in 2023 to represent the state’s 11th Senate district, replacing previous state senator Larry Taylor.

According to the Texas Legislature, the bill’s official text was summarized as follows: ‘Relating to the regulation of referral agencies for senior living communities’.

The following is our breakdown, based on the actual bill text, and may include interpretation to clarify its provisions.

In essence, this bill introduces regulatory measures for referral agencies connecting consumers to senior living communities in Texas. It defines a “referral agency” as an entity providing referrals to these communities for a fee, excluding direct community employees or patrons. The bill outlines that referral agencies may receive compensation from senior living communities through various contract agreements, including lump sums, referral-based fees, or fixed fees per referral. Additionally, the bill specifies that certain entities, such as licensed insurers and health maintenance organizations, are exempt from the applicability of certain Occupations Code provisions. The Act takes effect immediately upon receiving a two-thirds majority vote in both legislative houses or on Sept. 1, 2025, if the required vote is not achieved.

The bill was co-authored by Sen. Borris Miles (Democrat – District 13), Sen. Nathan Johnson (Democrat – District 16), and Sen. César Blanco (Democrat – District 29).

The bill received its final legislative approval on Wednesday, May 21, and was signed into law by Gov. Greg Abbott on Friday, June 20.

Bills in Texas go through a multi-step legislative process, including committee review, debates, and votes in both chambers before reaching a final decision. Each session, there are typically thousands of bills introduced, but only a portion successfully navigate the process to become law.

You can read more about the bills and other measures here.