Keeping Law SimpleLegislation, clearly explained
Back to Connecticut
Connecticut2026Passed Legislature

SB00125

New Rules for Nursing Homes with Investment Owners

Last scannedAug 25, 2026, 6:19 AM

In one sentence

This law requires nursing homes owned by investment groups to report ownership details annually, get a security bond if available and affordable, keep full control over operations, and promise that investors do not manage resident care.

What it does

  • Requires nursing homes with at least five percent ownership by an investment entity to send annual reports listing the names of owners, officers, financial statements, and details about loans or financing.
  • Asks the state to find a way for these nursing homes to buy a bond or security equal to ninety days of operating costs if it is financially possible.
  • Requires qualifying nursing homes to show proof of this bond when applying for or renewing their license starting July 1, 2028.
  • Mandates that the entity holding the nursing home license keeps full control over all assets and activities like clinical care, money management, and hiring staff starting February 1, 2028.
  • Orders nursing homes to submit a yearly statement confirming that no investment group controls resident health, safety, or care.

Who it affects

  • Nursing homes with an agreement to provide state benefits (Title XIX) where an investment entity owns five percent or more.
  • Investment entities such as companies collecting capital to buy nursing homes or real estate investment trusts.
  • The Commissioner of Social Services and the Department of Public Health, who will review reports and enforce penalties.

Limits and unknowns

  • The requirement to buy a security bond only applies if the state finds such bonds are available and financially feasible for nursing homes.
  • Nursing homes can apply for a one-year waiver from keeping full governance control, but they must prove it will help resident care or stability.

Plain language

Terms to know

investment entity
A company that collects money from investors to buy ownership shares in a nursing home or a real estate investment trust.
surety bond
A financial guarantee, like insurance, paid by the nursing home to cover costs if it closes suddenly or faces financial trouble.
beneficial ownership interest
The actual percentage of a company that an investor owns and controls, even if they do not hold the title directly.

Official record

Sources

Validated
Official bill pageIntroduced textOfficial digestCurrent bill textStored full record

Official summary

To restrict private equity ownership of nursing homes.

Official activity

Bill history

  1. Signed by the Governor
  2. Transmitted to the Secretary of State
  3. Transmitted by Secretary of the State to Governor
  4. Public Act 26-103LCO
  5. House Adopted Senate Amendment Schedule A
  6. House Adopted Senate Amendment Schedule B
  7. House Passed as Amended by Senate Amendment Schedule A,B
  8. In Concurrence
  9. Senate Adopted Senate Amendment Schedule B 5843
  10. Senate Passed as Amended by Senate Amendment Schedule A,B
  11. Transmitted Pursuant To Joint Rule 17
  12. Favorable Report, Tabled for the Calendar, House
  13. House Calendar Number 562
  14. Joint FavorableAPP
  15. Filed with Legislative Commissioners' OfficeLCO
  16. Reported Out of Legislative Commissioners' OfficeLCO
  17. No New File by Committee on Appropriations
  18. Favorable Report, Tabled for the Calendar, Senate
  19. Senate Adopted Senate Amendment Schedule A 5011
  20. Referred by Senate to Committee on Appropriations