SB 481

General Assembly  Substitute Bill No. 481
   February Session, 2026
 AN ACT REQUIRING NURSING HOME OWNERSHIP
 TRANSPARENCY, FINANCIAL SAFEGUARDS PROTECTING
 NURSING HOME OPERATIONS AND PROPERTY AND PROHIBITING
 REQUIRED ARBITRATION AGREEMENTS.
 Be it enacted by the Senate and House of Representatives in General
 Assembly convened:
1Section 1. (Effective October 1, 2026) (a) As used in this section, (1)
2    "nursing home" has the same meaning as provided in section 19a-490 of
3    the general statutes, and (2) "ownership entity" means an individual or
4    publicly traded or non-publicly traded company that collects capital
5    investments from individuals or entities and purchases a direct or
6    indirect ownership share of a nursing home, and includes a real estate
7    investment trust, as defined in 26 USC 856, as amended from time to
8    time.
9      (b) Not later than February 15, 2027, and annually thereafter, each
10   nursing home shall provide the Commissioner of Social Services with
11   the following information: (1) The name and business address of all
12   ownership entities with a beneficial ownership interest in the nursing
13   home and a statement of whether the ownership entity is an individual,
14   partnership, corporation or other legal entity; (2) the names of the
15   officers, directors, trustees or managing and general partners of any
16   such ownership entity and the number of shares owned or ownership
17   percentage of the ownership entity held by each partner; (3) if such
18   ownership entity is a corporation that is incorporated in another state, a
 LCO  1 of 3
  Substitute Bill No. 481
19 certificate of good standing from the Secretary of the State of the state of
20 incorporation; (4) the audited and certified financial statements of the
21 ownership entity, if applicable, including, but not limited to, (A) a
22 balance sheet as of the end of the most recent fiscal year, (B) income
23 statements for the most recent fiscal year, (C) a cash flow statement from
24 the most recent fiscal year, and (D) an estimate of financing expenses,
25 legal expenses, land costs, marketing costs and other similar costs that
26 the ownership entity expects to incur or become obligated to pay within
27 one year of acquisition of the nursing home; (5) a description of any
28 mortgage loan or other financing used for the initial acquisition or
29 construction of the nursing home, subsequent refinancing of any debt,
30 and any subsequent financing of additional debt incurred, including,
31 but not limited to, the terms and costs of any such mortgage loan or
32 other financing; (6) a copy of the purchase agreement for the nursing
33 home and any agreement providing for the transfer of ownership
34 interests in the nursing home, including, but not limited to, the real
35 estate agreement, asset agreement, stock agreement or other similar
36 agreement; and (7) any documentation regarding escrow or contingency
37 accounts.
38    (c) A nursing home owned or partially owned by an ownership entity
39 with a beneficial ownership interest in the nursing home shall, at the
40 time of application for or renewal of a nursing home license,
41 demonstrate to the satisfaction of the Commissioner of Social Services
42 that the nursing home has secured a performance bond or similar form
43 of security in favor of the state in an amount equal to ninety days of
44 operating costs for the nursing home and that such bond or similar form
45 of security shall remain in effect for the duration of the initial license
46 term and any renewal term.
47    (d) A nursing home owned or partially owned by an ownership
48 entity with a beneficial ownership interest in the nursing home shall, at
49 the time of application for or renewal of a nursing home license, submit
50 to the Department of Public Health a copy of the performance bond or
51 similar form of security required under subsection (c) of this section.
 LCO  2 of 3
  Substitute Bill No. 481
52    (e) No person or entity acquiring ownership of real property on and
53 after October 1, 2026, on which a licensed nursing home operates, shall
54 sell, transfer or otherwise convey such property within five years of the
55 date of acquisition without written approval from the Commissioner of
56 Public Health. Such approval shall be granted only upon a showing that
57 the sale will benefit resident care or improve operational stability.
58    Sec. 2. (NEW) (Effective from passage) No nursing home, as defined in
59 section 19a-490 of the general statutes, shall require a resident or
60 prospective resident to sign an arbitration agreement or contract
61 containing an arbitration agreement as a condition of admission or
62 continued care. Any such required arbitration agreement or contract
63 containing such arbitration agreement entered into, amended or
64 renewed after the effective date of this section is against public policy
65 and shall be void.
  This act shall take effect as follows and shall amend the following
  sections:
  Section 1      October 1, 2026  New section
  Sec. 2  from passage  New section
 JUD  Joint Favorable Subst.
 LCO  3 of 3