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 as a community-based residential facility, a residential care apartment complex, or an adult family home. 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 can only be collected after written confirmation from the resident that they used the agency's services.

The bill also includes provisions for penalties, allowing referral agencies that violate these regulations to face forfeitures of up to $1,000 per violation. It empowers the attorney general or district attorneys to take legal action against agencies that do not comply with the new requirements. Overall, the legislation aims to enhance transparency and protect the rights of prospective residents in the assisted living referral process.