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sSB481 / File No. 746 1
General Assembly File No. 746
February Session, 2026 Substitute Senate Bill No. 481
Senate, April 30, 2026
The Committee on Judiciary reported through SEN. WINFIELD
of the 10th Dist., Chairperson of the Committee on the part of
the Senate, that the substitute bill ought to pass.
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) T he name and business address of all 11
ownership entities with a beneficial ownership interest in the nursing 12
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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
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
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(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
(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 arbitration agreement or contract 60
containing an arbitration agreement as a condition of admission or 61
continued care. Any such required arbitration agreement or contract 62
containing such arbitration agreement entered into, amended or 63
renewed after the effective date of this section is against public policy 64
and shall be void. 65
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.
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The following Fiscal Impact Statement and Bill Analysis are prepared for the benefit of the members of
the General Assembly, solely for purposes of information, summarization and explanation and do not
represent the intent of the General Assembly or either chamber thereof for any purpose. In general,
fiscal impacts are based upon a variety of informational sources, including the analyst’s professional
knowledge. Whenever applicable, agency data is consulted as part of the analysis, however final
products do not necessarily reflect an assessment from any specific department.
OFA Fiscal Note
State Impact:
Agency Affected Fund-Effect FY 27 $ FY 28 $
Social Services, Dept. GF - Potential
Cost
See Below See Below
Note: GF=General Fund
Municipal Impact: None
Explanation
The bill requires any nursing home with a beneficial ownership
interest to provide the Department of Social Services (DSS) with proof
of a performance bond or security to secure or renew a license. To the
extent that the costs for securing a performance bond or similar form of
security are factored into nursing home rates, DSS will incur associated
Medicaid costs.
The Out Years
The annualized ongoing fiscal impact identified above would
continue into the future subject to the scope of related rate adjustments.
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OLR Bill Analysis
sSB 481
AN ACT REQUIRING NURSING HOME OWNERSHIP
TRANSPARENCY, FINANCIAL SAFEGUARDS PROTECTING
NURSING HOME OPERATIONS AND PROPERTY AND
PROHIBITING REQUIRED ARBITRATION AGREEMENTS.
SUMMARY
This bill limits when the owner of real property (for example, land or
buildings) where a nursing home is located may sell or transfer it. It
prohibits anyone who acquires such a property after October 1, 2026,
from selling or transferring it within five y ears from the date they
acquired it, unless the Department of Public Health (DPH)
commissioner approves it in writing. Under the bill, the commissioner
may only approve if she finds that doing so will improve operational
stability or benefit resident care.
The bill also establishes new requirements related to certain types of
“ownership entities.” Specifically, it requires nursing homes to (1)
secure a performance bond, or similar security, if an ownership entity
has a beneficial ownership interest in them a nd (2) report to the
Department of Social Services (DSS) certain information about these
entities. (Owners of a beneficial interest, generally, may receive financial
benefits from an asset even if not recorded as a legal owner.)
Under the bill, an “ownership entity” is an individual or company,
either privately owned or publicly traded, that collects capital
investments from individuals or other entities and purchases a direct or
indirect ownership share of a nursing home. This te rm includes real
estate investment trusts, which are, generally, companies that own or
finance income-producing commercial real estate.
Lastly, the bill prohibits nursing homes from requiring a current or
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prospective resident to sign an arbitration agreement, or a contract
containing one, as a condition of admission or continued care. It voids
such arbitration agreements and contracts entered into, renewed, or
amended after the bill’s passage.
EFFECTIVE DATE: October 1, 2026, except the provision on
arbitration agreements takes effect upon passage.
PERFORMANCE BOND
If an ownership entity has a beneficial ownership interest in a nursing
home, the home must secure a performance bond, or similar security, in
favor of the state. The bond or security must equal 90 days of the nursing
home’s operating costs and stay in effect for the duration of the home’s
initial license term or renewal term. When applying for an initial license
or to renew its license with DSS or DPH, the nursing home must provide
proof (for DPH, a copy of the bond or security) it has this bond or
security.
REPORTING REQUIREMENT AND PENALTY
Beginning by February 15, 2027, the bill requires each nursing home
to annually give DSS certain information about each ownership entity
that has a beneficial ownership interest in it, including:
1. its business address and whether it is a person, partnership,
corporation, or other type of legal entity;
2. a certificate of good standing from a secretary of state, if it is
incorporated in another state;
3. the names of individuals holding certain leadership positions (for
example, directors, officers, trustees, managing partners, and
general partners);
4. each partner’s ownership share;
5. audited and certified financial statements, if applicable;
6. a description of financing (for example, mortgage loans) used to
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acquire or construct the home and any subsequent debt
refinancing;
7. documentation on any escrow or contingency accounts; and
8. a copy of the purchase agreement for the nursing home and any
agreement to transfer ownership interests in it (for example, real
estate, asset, or stock agreements).
BACKGROUND
Legislative History
The Senate referred the bill (File 481) to the Judiciary Committee ,
which favorably reported a substitute that removed provisions allowing
DSS to impose a daily $1,000 fine on nursing homes that fail to meet the
bill’s reporting requirement.
Related Bill
SB 125 (File 69) , favorably reported by the Aging Committee,
generally contains the same provisions as the bill except for those on
arbitration agreements.
COMMITTEE ACTION
Human Services Committee
Joint Favorable Substitute
Yea 16 Nay 7 (03/19/2026)
Judiciary Committee
Joint Favorable Substitute
Yea 30 Nay 11 (04/24/2026)