What does Texas SB 1383 require for senior living referral agents?

Texas Senate Bill 1383, effective June 2025, requires senior living referral agents to provide written disclosure of any financial relationship — commissions or referral fees — with assisted living, memory care, or nursing home communities before helping a family make a placement. Families cannot be charged directly for referral services that also earn placement fees. This law gives Texas families the legal right to know who is being paid when a recommendation is made.

Are senior living referral commissions legal in Texas?

Yes — commissions remain legal under SB 1383. The law requires disclosure, not elimination. Referral agents must tell families in writing about financial relationships with communities before placement. Families should always ask: 'Do you earn a commission if we move in here, and how much?' If the answer is vague or refused, that is a red flag regardless of legal requirements.

How does AllyKin compare to referral agents regulated by Texas SB 1383?

AllyKin is a data-first research platform, not a placement agent. We provide free government inspection data, CMS nursing home ratings, Medicaid eligibility tools, and our own facility lookup — without requiring phone numbers or earning per-placement commissions. When families request matches, we're transparent about how we operate. Our methodology is published at /how-we-rank and our annual Transparency Report details revenue sources.

Family Guide

Texas SB 1383: Referral Fee Disclosure Law for Senior Living (2026)

Texas SB 1383 requires senior living referral agents to disclose commissions. What families must ask before accepting placement help.

8 min readUpdated 2026-06-18By Rachel Morrison, Founder & Senior Care Navigator

Rachel founded AllyKin after navigating assisted living placement for her own family in Texas. She leads editorial on Medicaid, CMS ratings, and state inspection guides — email-first matching with no call spam.

Effective June 2025, Texas Senate Bill 1383 requires referral agents who help families find assisted living, memory care, or nursing homes to disclose financial relationships with communities. If someone recommends a facility, you have the legal right to know whether they earn a commission when you move in.

This law responds to growing scrutiny of commission-based referral models — including U.S. Senate investigations into whether families are steered toward facilities that pay referral fees rather than those that best fit their needs.

What SB 1383 requires

Written disclosure of any referral fee or commission before placement
Disclosure of relationships with specific communities being recommended
Families cannot be charged directly for referral services tied to placement fees
Applies to assisted living, memory care, nursing homes, and similar settings

Questions to ask any referral service

Do you earn a commission if we move into a recommended community? How much?
Are communities shown only those that pay referral fees?
Can you show inspection records and license status for each option?
Will my contact information be shared with multiple call centers?
Can I receive matches by email without phone calls?

How AllyKin approaches transparency

AllyKin does not charge families and publishes our data methodology on /how-we-rank. We use government inspection data, CMS nursing home ratings, and state license lookups — not pay-to-rank placement fees. Read our annual Transparency Report for how we compare to commission-based referral sites.

Verify Texas communities yourself

Before touring any Texas assisted living community, search HHSC inspection records and compare multiple options using our Texas facility safety tools and community directory.

Frequently Asked Questions

What does Texas SB 1383 require for senior living referral agents?: Texas Senate Bill 1383, effective June 2025, requires senior living referral agents to provide written disclosure of any financial relationship — commissions or referral fees — with assisted living, memory care, or nursing home communities before helping a family make a placement. Families cannot be charged directly for referral services that also earn placement fees. This law gives Texas families the legal right to know who is being paid when a recommendation is made.
Are senior living referral commissions legal in Texas?: Yes — commissions remain legal under SB 1383. The law requires disclosure, not elimination. Referral agents must tell families in writing about financial relationships with communities before placement. Families should always ask: 'Do you earn a commission if we move in here, and how much?' If the answer is vague or refused, that is a red flag regardless of legal requirements.
How does AllyKin compare to referral agents regulated by Texas SB 1383?: AllyKin is a data-first research platform, not a placement agent. We provide free government inspection data, CMS nursing home ratings, Medicaid eligibility tools, and our own facility lookup — without requiring phone numbers or earning per-placement commissions. When families request matches, we're transparent about how we operate. Our methodology is published at /how-we-rank and our annual Transparency Report details revenue sources.

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