Connecticut SB 481: AN ACT REQUIRING NURSING HOME OWNERSHIP TRANSPARENCY, FINANCIAL SAFEGUARDS PROTECTING NURSING HOME OPERATIONS AND PROPERTY AND PROHIBITING REQUIRED ARBITRATION AGREEMENTS.

Bill Text

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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: 
 
Section  1.  (Effective  October  1,  2026)  (a)  As  used  in  this  section,  (1) 1 
"nursing home" has the same meaning as provided in section 19a-490 of 2 
the general statutes, and (2) "ownership entity" means an individual or 3 
publicly  traded  or  non-publicly  traded  company  that  collects  capital 4 
investments  from  individuals  or  entities  and  purchases  a  direct  or 5 
indirect ownership share of a nursing home, and includes a real estate 6 
investment  trust,  as  defined  in  26  USC  856,  as  amended  from  time  to 7 
time. 8 
(b)  Not  later  than  February  15,  2027,  and  annually  thereafter,  each 9 
nursing  home  shall  provide  the  Commissioner  of  Social  Services  with 10 
the  following  information:  (1)  The  name  and  business  address  of  all 11 
ownership  entities  with  a  beneficial  ownership  interest in the nursing 12 
home and a statement of whether the ownership entity is an individual, 13 
partnership,  corporation  or  other  legal  entity;  (2)  the  names  of  the 14 
officers,  directors,  trustees  or  managing  and  general  partners  of  any 15 
such ownership entity and the number of shares owned or ownership 16 
percentage  of  the  ownership  entity  held  by  each  partner;  (3)  if  such 17 
ownership entity is a corporation that is incorporated in another state, a 18 

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certificate of good standing from the Secretary of the State of the state of 19 
incorporation;  (4)  the  audited  and  certified  financial  statements  of  the 20 
ownership  entity,  if  applicable,  including,  but  not  limited  to,  (A)  a 21 
balance  sheet  as  of  the  end  of  the  most  recent  fiscal  year,  (B)  income 22 
statements for the most recent fiscal year, (C) a cash flow statement from 23 
the most recent fiscal  year, and (D) an estimate of financing expenses, 24 
legal expenses, land costs, marketing costs and other similar costs that 25 
the ownership entity expects to incur or become obligated to pay within 26 
one  year  of  acquisition  of  the  nursing  home;  (5)  a  description  of  any 27 
mortgage  loan  or  other  financing  used  for  the  initial  acquisition  or 28 
construction of the nursing home, subsequent refinancing of any debt, 29 
and  any  subsequent  financing  of  additional  debt  incurred,  including, 30 
but  not  limited  to,  the  terms  and  costs  of  any  such  mortgage  loan  or 31 
other  financing;  (6)  a  copy  of  the  purchase  agreement  for  the  nursing 32 
home  and  any  agreement  providing  for  the  transfer  of  ownership 33 
interests  in  the  nursing  home,  including,  but  not  limited  to,  the  real 34 
estate  agreement,  asset  agreement,  stock  agreement  or  other similar 35 
agreement; and (7) any documentation regarding escrow or contingency 36 
accounts. 37 
(c) A nursing home owned or partially owned by an ownership entity 38 
with a  beneficial  ownership  interest in  the  nursing  home shall,  at  the 39 
time   of   application   for   or   renewal   of   a   nursing   home   license, 40 
demonstrate to the satisfaction of the Commissioner of Social Services 41 
that the nursing home has secured a performance bond or similar form 42 
of  security  in  favor  of  the  state  in  an  amount  equal  to  ninety  days  of 43 
operating costs for the nursing home and that such bond or similar form 44 
of  security  shall  remain  in  effect  for  the  duration  of  the  initial  license 45 
term and any renewal term. 46 
(d) A  nursing  home owned  or  partially  owned  by  an  ownership 47 
entity with a beneficial ownership interest in the nursing home shall, at 48 
the time of application for or renewal of a nursing home license, submit 49 
to the Department of Public Health a copy of the performance bond or 50 
similar form of security required under subsection (c) of this section. 51 

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(e) No person or entity acquiring ownership of real property on and 52 
after October 1, 2026, on which a licensed nursing home operates, shall 53 
sell, transfer or otherwise convey such property within five years of the 54 
date of acquisition without written approval from the Commissioner of 55 
Public Health. Such approval shall be granted only upon a showing that 56 
the sale will benefit resident care or improve operational stability. 57 
Sec. 2. (NEW) (Effective from passage) No nursing home, as defined in 58 
section  19a-490  of  the  general  statutes,  shall  require  a  resident  or 59 
prospective   resident   to   sign   an