CALA Passes Truth in Referral Legislation


The 2019 legislative session saw the Colorado Assisted Living Association introduced and passed HB19-1268, “CONCERNING A REQUIREMENT THAT A REFERRAL AGENCY MAKE DISCLOSURES TO A PROSPECTIVE RESIDENT OF AN ASSISTED LIVING RESIDENCE”.The bill was passed unanimously by both the House and the Senate.  The bill is awaiting the Governor’s signature.

This bill requires individuals and entities that receive a referral fee for referring prospective residents to an assisted living residence (referral agencies) to disclose to a prospective resident its business relating to the residence and that the assisted living residence has paid for the referral. The referral agency and the prospective resident must sign and date this disclosure and the agency must provide the document to the assisted living residence on or before the date the resident is admitted to the assisted living residence. Assisted living residences must not pay the referral agency a fee until receipt of this documentation. Residences are required to maintain a written or electronic copy for at least one year after the date that the new resident is admitted. A referral agency that violates this section is subject to a civil penalty of up to $500 per violation. The Attorney General or a district attorney may bring a civil action on behalf of the state to seek the imposition of a civil penalty for a violation of this section. 

Corky Kyle, MPA, CAE
PresidentThe Kyle Group
1410 Grant Street, Suite B302
Denver, Colorado 80203
Cell: 303-263-5422