Arizona SB 1477 Is Now in Effect: What Families Should Know About Assisted Living Referral Agents

When a family needs assisted living, sometimes on very short notice, a referral or placement agency may offer to identify communities with available rooms. That help can feel free to the family, but the agency may be paid by the assisted living facility after a resident moves in.

Arizona law has required certain disclosures about these arrangements for several years. Senate Bill 1477, which took effect September 12, 2026, adds new safeguards involving screening, insurance, and who is covered by the law.[^1]

The short version

Under the updated law, a paid assisted living referral agency must:

• tell a prospective resident or their representative about its relationship with a recommended facility;
• disclose that the facility will pay the agency and state the amount or a good-faith estimate of the fee;
• request the prospective resident’s acknowledgement that the disclosure was received;
• follow one of the law’s two screening-related compliance paths; and
• carry both commercial general liability and professional liability insurance at specified minimum levels.[^2]

The law gives families more information about the financial relationships behind a referral. It does not, however, mean that every referral source is independent or that an agency has evaluated every assisted living option in the area.

What must be disclosed before a referral?

At or before making a referral, a covered agency must disclose:

• Any current business relationship, common ownership or control, or other financial, business, management, or family relationship between the agency and the assisted living facility or home.
• That the facility or home will pay the agency in connection with the referral.
• The amount of that payment, or a good-faith estimate if the final amount is not yet known. The fee may be described as a dollar amount or as a percentage of the resident’s first month of rent and care charges.[^3]

The statute supplies specific disclosure language. If the notice is written, it must use 14-point type. After the first disclosure, the agency must ask the prospective resident or representative to acknowledge receiving it in the same manner in which it was delivered.[^4]

Pip’s Tip

Do not stop at “our service is free to you.” Ask: Who pays you, how much could you receive, and would you be paid by every community you might recommend?

The answers can help you understand which options may or may not appear on the agency’s list.

New screening and insurance requirements

SB 1477 adds two notable requirements for referral businesses.

First, a referral agency must either provide the assisted living facility or home with documentation that the referral agent is not on Arizona’s Adult Protective Services Registry, or use the alternative compliance path described in the statute. That alternative involves a contract, policy, or procedure under which the agency annually uses a nationally accredited provider to obtain criminal-history information for new employees who have direct consumer contact or physically enter assisted living settings to make referrals.[^5]

Second, the agency must obtain both of the following from an insurer authorized to do business in Arizona:

• commercial general liability insurance of at least $1 million per occurrence and $3 million in the aggregate; and
• professional liability insurance of at least $1 million per occurrence and $3 million in the aggregate.[^6]

These are meaningful business safeguards. Still, neither a registry check nor insurance proves that a particular recommendation is the best clinical, financial, or personal fit for your family.

Families may end the agency’s services

A prospective resident may terminate all referral-agency services, including use of the person’s personal information, by sending written or electronic notice.[^7]

The law contains exceptions that may still allow the agency to collect a move-in fee. For example, an agency may remain entitled to a fee if the resident chooses, within 12 months, a facility the agency specifically identified and referred after evaluating the resident’s profile and requests but before termination. Another exception may apply if the resident communicates with the agency for referral services before admission.[^8]

If you decide to stop working with an agency, keep a copy of your termination notice and confirmation that it was received.

What assisted living facilities must do

When a facility or home has a contract with the referral agency, it must notify the agency within 14 days after the referred resident is admitted. The referral agency then has no more than 14 days to send the facility a copy or recording of the disclosure, the resident’s acknowledgement, and the disclosure’s date and time.[^9]

The agency must retain the disclosure and acknowledgement for one year. The facility or home must retain the disclosure for as long as the resident remains there. It may not pay the referral fee until it receives the required records.[^10]

Violations of the statute may result in a civil penalty of up to $1,000 per violation. Arizona’s attorney general or a county attorney may bring an enforcement action.[^11]

Who counts as a referral agent?

For this law, a “referral agency” or “referral agent” is a person or business that provides referrals for a fee collected from either the resident or the assisted living facility or home.[^12]

The definition excludes:

• an assisted living facility or home and its employees; and
• a resident, resident’s family member, or facility patron who makes a referral and receives a discount or other compensation from the facility or home.[^13]

That means the protections in this statute do not necessarily apply to every person who suggests a community.

What SB 1477 does and does not tell families

SB 1477 strengthens transparency and establishes screening and insurance obligations. But it does not answer every question a family should ask. Based on the final chaptered text, the law does not:

• create a state license for assisted living referral agencies;
• require an agency to recommend every suitable or available facility;
• guarantee that recommendations are independent of payment relationships; or
• replace your own review of a facility’s license, inspection history, services, staffing, contract, and total cost.[^14]

These points are an interpretation of what is and is not contained in the enacted text. They are not a statement that referral services are inherently good or bad. A referral agent may be helpful, particularly when time is short. The important thing is to understand the business arrangement and independently verify the care setting.

Six questions to ask before accepting a referral

• Who pays you if my family member moves in, and how much will you receive?
• Do you have an ownership, business, management, financial, or family relationship with this facility?
• Do you receive payment from every facility you considered, or only some of them?
• How did you decide these options match the resident’s care needs, preferences, location, and budget?
• Are there suitable communities you did not show us because you do not have a contract with them?
• How do I end your services and stop further use or sharing of my personal information?

The WrenSong perspective

Families deserve to know when money may influence the options placed in front of them. WrenSong helps families approach care decisions with clearer information, better questions, and no sales pressure.

Use any referral list as a starting point, not a final answer. Compare options, review official state records, tour the setting when possible, and ask for all costs and promises in writing before signing an agreement.

Important: This article provides general educational information and is not legal advice. Laws, agency guidance, and individual circumstances can change. Consult the official statute or a qualified professional about a specific situation.

Sources

[^1]: Arizona Legislature, 2026 Session Laws, listing Chapter 178 (SB 1477) and the September 12, 2026 general effective date: https://www.azleg.gov/sessionlaws/ [^2]: Arizona Legislature, Chapter 178, Senate Bill 1477, A.R.S. § 36-446.14(A), (E)–(F): https://www.azleg.gov/legtext/57leg/2r/laws/0178.htm [^3]: Ibid., § 36-446.14(A). [^4]: Ibid., § 36-446.14(B), (D). [^5]: Ibid., § 36-446.14(E). [^6]: Ibid., § 36-446.14(F). [^7]: Ibid., § 36-446.14(C). [^8]: Ibid. [^9]: Ibid., § 36-446.14(E). [^10]: Ibid. [^11]: Ibid., § 36-446.14(G). [^12]: Ibid., § 36-446.14(H)(2)(a). [^13]: Ibid., § 36-446.14(H)(2)(b). [^14]: This conclusion is based on a review of the final chaptered text. See Arizona Legislature, Chapter 178, Senate Bill 1477: https://www.azleg.gov/legtext/57leg/2r/laws/0178.htm