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, it allows prospective residents to terminate services from the referral agency at any time and requires that fees be set in advance, consistent with fair market value, and charged only after written confirmation from the resident.

The bill also stipulates that referral agencies can only charge one fee per resident and prohibits fees based on the potential value of a resident to the facility. If a referral agency violates these provisions, it may face penalties of up to $1,000 per violation. The attorney general or district attorney can also take legal action to enforce compliance with the new regulations. Overall, the bill aims to enhance transparency and protect the interests of prospective residents seeking assisted living options.