Assembly Bill 255 establishes regulations for referral agencies that connect prospective residents to assisted living facilities in exchange for a fee. The bill defines an "assisted living facility" to include community-based residential facilities, residential care apartment complexes, and adult family homes. It mandates that referral agencies disclose their relationships with the facilities, the fees they receive, and the fact that they only list facilities with which they have contracts. Additionally, prospective residents have the right to terminate services from the referral agency at any time, including the use of their personal information. Fees charged by referral agencies must be predetermined, fair market value, and cannot be based on the potential value of a resident to the facility.

The bill also stipulates that referral agencies can only charge one fee per resident and that no fees can be collected if a resident moves into a facility more than one year after the referral agreement was made. Violations of these provisions may result in penalties of up to $1,000 per violation. The attorney general or district attorneys are empowered to take legal action against referral agencies that violate these regulations.