S 3023 — Provides certain protections to residents of long-term care facilities and long-term acute care hospitals.

S3023 1R [First Reprint] SENATE, No.

Senators McKnightBurgess and BurgessRuiz         SYNOPSIS      Provides certain protections to residents of long-term care facilities and long-term acute care hospitals.

  CURRENT VERSION OF TEXT      As introduced.reported by the Senate Health, Human Services and Senior Citizens Committee on February 9, 2026, with amendments.

       1.  a. a. For the purposes of this section:

For the purposes of this section:

     “Principal” means a resident of a long-term care facility or1[or long-term acute care hospitalhospital]1 or an individual who is in the admission process to enter a long-term care facility or1[or long-term acute care hospital.hospital]1.

     b.    No owner, administrator, director, officer, or employee of a long-term care facility or1[or long-term acute care hospital,hospital]1, person or entity affiliated with or related to an owner, administrator, director, officer, or employee of a long-term care facility or1[or long-term acute care hospital,hospital]1, or other person who benefits financially from a long-term care facility or1[or long-term acute care hospitalhospital]1 shall be authorized to manage the financial affairs of a principal except pursuant to an order of the Superior Court appointing that person guardian of the principal.  The determination whether to appoint a long-term care facility or1[or long-term acute care hospitalhospital]1 owner, administrator, director, officer, employee, or affiliated or related person or entity as guardian for a principal pursuant to this subsection shall be made by the Superior Court in consultation with the Office of the Public Guardian for Elderly Adults.

     c.     No owner, administrator, director, officer, or employee of a long-term care facility or1[or long-term acute care hospital,hospital]1 , person or entity affiliated with or related to an owner, administrator, director, officer, or employee of a long-term care facility1[or or long-term acute care hospital,hospital]1, or other person who benefits financially from a long-term care facility or1[or long-term acute care hospital,hospital]1 , shall be eligible to act as an attorney-in-fact for a principal.  Any power of attorney instrument executed by a principal naming an owner, administrator, director, officer, or employee of a long term care facility or1[or long-term acute care hospital,hospital]1 , a person or entity affiliated with or related to an owner, administrator, director, officer, or employee of a long-term care facility or1[or long-term acute care hospital,hospital]1 , or another person who benefits financially from a long-term care facility or1[or long-term acute care hospitalhospital]1 shall be deemed invalid.

of this section shall be construed to prohibit the appointment of a guardian of the person or estate of a resident of a long-term care facility or1[or long-term acute care hospitalhospital]1 by a court of competent jurisdiction.

       4.    a.

       5.    a.

STATEMENT        This bill prohibits an owner, administrator, director, officer, or employee of a long-term care facility or long-term acute hospital or any person or entity affiliated or related to the owner, administrator, director, officer, or employee from being eligible to act as an attorney-in-fact for a principal.  A “principal” is defined in the bill as a resident of a long-term care facility or an individual who is in the admission process to enter a long-term care facility.  Further, the bill prohibits any person who benefits financially from a long-term care facility or long-term acute hospital from acting as an attorney-in-fact.

The bill explicitly states that these provisions are not to be construed to prohibit a family member of a principal from acting as attorney-in-fact for the principal.

      The determination as to whether to appoint an individual affiliated with a long-term care facility or long-term acute hospital as guardian of a principal is required to be made by the Superior Court in consultation with the Office of the Public Guardian for Elderly Adults.  Under the bill, a power of attorney instrument executed by a principal naming an enumerated person is deemed invalid.

      The bill provides that a principal who sustains injury to person or property as a result of a violation of the provisions regarding the principal’s attorney-in-fact and guardian are to have a cause of action against any person who committed the violation resulting in injury.  The action may be brought in any court of competent jurisdiction to enforce the provisions and to recover:  1) actual, compensatory, and punitive damages, and other injunctive and equitable relief as the court determines to be appropriate;

2) treble damages upon proof of willful, malicious, or reckless disregard of the law;

and 3) reasonable attorney's fees and other litigation costs reasonably incurred by the principal.

      The bill requires the Department of Health to develop a standard resident admission contract.  The bill requires the department to develop unique standard resident admission agreement forms for use by each type of long-term care facility, when appropriate.

Long-term care facilities are required to use the applicable admission contract developed by the department beginning on the first day next following the sixth month of the date of enactment.  The bill provides the manner in which a long-term care facility can require a resident or the resident’s representative to sign certain documentation at the time of, or as a condition of, admission into care.

      The bill requires an operator of a long-term facility to provide each resident, or a resident’s representative, notice that they may use an attorney to apply for Medicaid long-term care benefits at the time of admission.  Further, the notice is required to be posted conspicuously in the nursing home or health care facility.

     The bill requires each operator of a long term care facility subject to 42 CFR §483.70 to provide each resident, or a resident’s representative, notice that the facility is subject to federal regulations which prohibit it from requiring any resident or his or her representative to sign an agreement for binding arbitration as a condition of admission to, or as a requirement to continue to receive care at, the facility.

      Finally, the bill requires the Commissioner of Human Services to promulgate rules establishing uniform standards of care for non-attorney individuals providing Medicaid application assistance, including, but not limited to:

(1) defining who is permitted to act as a Medicaid application assistor before Medicaid agencies and the Office of Administrative Law;

(2) outlining the scope and nature of the services that non-attorney Medicaid application assistors are authorized to provide;

and (3) requiring Medicaid application assistors to complete training on:  Medicaid program rules;

handling confidential financial and medical information;

conflicts of interest;

and what constitutes the unauthorized practice of law.