SB 125 — AN ACT REQUIRING NURSING HOMES TO ANNUALLY REPORT CERTAIN OWNERSHIP INFORMATION REGARDING INVESTMENT ENTITIES, ACQUIRE, IF FEASIBLE, A SURETY BOND OR A SIMILAR FORM OF SECURITY IN AN AMOUNT EQUAL TO NINETY DAYS OF OPERATING COSTS, MAINTAIN FULL GOVERNANCE CONTROL AND AUTHORITY OVER NURSING HOME ASSETS AND ACTIVITIES AND ANNUALLY ATTEST THAT NO INVESTMENT ENTITY HAS CONTROL OVER NURSING HOME RESIDENT HEALTH, SAFETY OR CARE.

General Assembly Substitute Senate Bill No.

125 FebruaryPublic Session,Act 2026No. AN ACT RESTRICTING PRIVATE EQUITY OWNERSHIP OF NURSING HOMES.

26-103 AN ACT REQUIRING NURSING HOMES TO ANNUALLY REPORT CERTAIN OWNERSHIP INFORMATION REGARDING INVESTMENT ENTITIES, ACQUIRE, IF FEASIBLE, A SURETY BOND OR A SIMILAR FORM OF SECURITY IN AN AMOUNT EQUAL TO NINETY DAYS OF OPERATING COSTS, MAINTAIN FULL GOVERNANCE CONTROL AND AUTHORITY OVER NURSING HOME ASSETS AND ACTIVITIES AND ANNUALLY ATTEST THAT NO INVESTMENT ENTITY HAS CONTROL OVER NURSING HOME RESIDENT HEALTH, SAFETY OR CARE.

(NEW) (Effective October 1, 2026) (a) As used in this section, (1) "nursing home" hasmeans thea samenursing meaninghome, as provideddefined in section 19a-490 of the general statutes, and (2) "ownership entity" means an individual or publicly traded or non-publicly traded company that collectshas capitala investmentsprovider fromagreement individualswith orthe entitiesstate andto purchasesprovide aservices directto orrecipients indirect ownership share of abenefits nursingobtained home,through andTitle includesXIX aof realthe estateSocial investmentSecurity trust,Amendments asof defined1965; in 26 USC 856, as amended from time to time.

(b)and Not(2) later"investment thanentity" Februarymeans 15,(A) 2027,any entity that collects capital investments from individuals or entities and annuallypurchases, thereafter,as eacha nursingparent homecompany shallor providethrough another entity that the Commissionerentity completely or partially owns or controls, a direct or indirect ownership share of Sociala Servicesnursing withhome, theor following(B) information:a real estate investment trust, as defined in 26 USC 856, as amended from time to time.

(1)(b) TheNot namelater andthan businessFebruary address15, of2027, alland ownershipannually entitiesthereafter, witheach a beneficial ownership interest in the nursing home andshall aprovide statementthe Commissioner of whetherSocial suchServices ownershipwith entitySubstitute isSenate anBill individual,No. partnership, corporation or other legal entity;

(2)125 the namesfollowing ofinformation: the officers, directors, trustees or managing and general partners of any such ownership entity and the number of shares owned or ownership percentage of the ownership entity held by each partner;

(3)(1) ifThe suchname ownershipand entitybusiness isaddress of all investment entities with a corporationbeneficial thatownership isinterest incorporatedof five per cent or more in anotherthe state,nursing home and a certificatestatement of goodwhether standingsuch frominvestment theentity Secretaryis ofan theindividual, Statepartnership, ofcorporation theor stateother oflegal incorporation;entity;

(4)(2) the auditednames of the officers, directors, trustees or managing and certifiedgeneral financialpartners statementsof LCOany 1such investment entity and the number of 3shares Substituteowned Billor No.ownership percentage of the investment entity held by each partner;

125(3) of the ownership entity, if applicable,such including,investment butentity notis limiteda to,corporation (A)that ais balanceincorporated sheetin asanother ofstate, thea endcertificate of thegood moststanding recent fiscal year, (B) income statementsfor themost recent fiscal year,(C)a cash flow statement from the mostSecretary recent fiscal year, and (D) an estimate of financing expenses, legal expenses, land costs, marketing costs and other similar costs that the ownershipState entity expects to incur or become obligated to pay within one year of acquisition of the nursingstate home;of incorporation;

(4) the audited and certified financial statements of the investment entity, if applicable, including, but not limited to, (A) a balance sheet as of the end of the most recent fiscal year, (B) income statements for the most recent fiscal year, (C) a cash flow statement from the most recent fiscal year, and (D) an estimate of financing expenses, legal expenses, land costs, marketing costs and other similar costs that the investment entity expects to incur or become obligated to pay within one year of acquisition of the nursing home;

(6) a copy of the purchase agreement for thethenursing nursinghomeandany homeagreementproviding and any agreement providing for the transfer of ownership interests in the nursing home, including, but not limited to, the real estate agreement, asset agreement, stock agreement or other similar agreement;

(c) The Commissioner of Social Services may impose a civil penalty of one thousand dollars per day on any nursing home that fails to provide any information required pursuant to subsection (b) of this section not later than thirty days after the date such information is due.due, providedthecommissioner provideswrittennotice to thenursing home Public Act No.

26-103 2 of 5 Substitute Senate Bill No.

125 of its failure to provide such information not later than fourteen days after the date such information is due.

(d)(d)(1)TheCommissionerofSocialServicesshallidentifyany Asecurity nursinginstruments, homeincluding, involvingbut annot ownershiplimited entityto, withsurety abonds, beneficialescrow ownershipaccounts interestor ininsurance-related saidproducts, nursingthat homemay shall,be atavailable theto time of application for or renewal of a nursing home license, demonstrate to theguarantee satisfactionninety ofdays the Commissioner of Socialsuch Services that the nursing homehome's hasoperating securedcosts apayable performanceto bond or similar form of security in favor of the state in an amount equal to ninety days of operating costs for the nursingevent home and that such bondnursing orhome similarenters forma ofreceivership, securityinitiates shallan remainemergency inclosure effector forexperiences theimminent durationfinancial ofdistress. the initial license term and any renewal term.

LCONot 2later than January 1, 2028, the commissioner shall communicate to nursing homes any security instruments identified pursuant to the provisions of 3this Substitutesubdivision Billin No.a form and manner prescribed by the commissioner.

125The (e)provisions Aof nursingthis homesubsection involvingshall annot ownershipapply entityif withthe acommissioner beneficialfails ownershipto interestidentify inany saidsuch nursingsecurity homeinstruments, shall, at the time of application for or renewaldetermines ofthat asuch nursingsecurity homeinstruments license,are submitnot tofinancially thefeasible. Department of PublicHealthacopyoftheperformancebondorsimilarformofsecurity required under subsection (d) of this section.

(f)(2)Onandafter NoJuly person1, or2028,each entitynursing acquiringhome subject to a beneficial ownership interest of realan propertyinvestment onentity andof afterfive Octoberper 1,cent 2026,or onmore whichshall, at the time of application for or renewal of a licensednursing home license, demonstrate to the satisfaction of the Commissioner of Social Services that the nursing home operates,has shallsecured sell,a transfersurety bond or otherwisesimilar conveyform of security in favor of the state in an amount equal to ninety days of operating costs for the nursing home and that such propertybond withinor fivesimilar yearsform of acquisitionsecurity withoutshall writtenremain approvalin fromeffect for the Commissionerduration of Publicthe Health.initial license term and any renewal term.

Such(3)Onandafter approvalJuly shall1, be2028,each grantednursing onlyhome uponsubject to a showingbeneficial thatownership interest of an investment entity of five per cent or more shall, at the sale,time transferof application for or conveyancerenewal willof benefita residentnursing carehome license, submit to the Department of Public Health a copy of the surety bond or improvesimilar operationalform stability.of security required under subdivision (2) of this Public Act No.

This26-103 act3 shallof take5 effectSubstitute asSenate followsBill andNo. shall amend the following sections:

Section125 1subsection. October 1, 2026 New section AGE Joint Favorable Subst.

-LCO(e) JUDOn Jointand Favorableafter APPFebruary Joint1, Favorable2028, LCOeach 3entity ofholding 3a nursing home'slicense shallmaintainfullgovernance controlandauthorityover such nursing home's assets and activities, including, but not limited to, all clinical, operational, managerial, financial and human resources matters.

(f) Not later than February 1, 2028, and annually thereafter, each nursing home shall submit to the Commissioner of Public Health, in a form and manner prescribed by thecommissioner, an attestation thatno investment entity has control over nursing home resident health, safety or care.

(g) Notwithstanding the provisions of subsection (e) of this section, if a nursing home anticipates that it will not be able to comply with the provisions of said subsection, the nursing home may, not later than six months before becoming subject to the provisions of said subsection, apply to the Commissioner of Social Services, in a form and manner prescribed by the commissioner, for a one-year waiver from the provisions of said subsection.

The commissioner may request any information or documentation deemed necessary to assess any such application and place any terms or conditions deemed necessary by the commissioner in granting any such waiver.

The commissioner shall not grant a waiver pursuant to the provisions of this subsection unless the commissioner determines that the granting of such waiver will benefit resident care, maintain access to resident care or improve operational stability.

(h) The Commissioner of Public Health may impose a civil penalty of up to two thousand dollars per violation on any nursing home that fails to provide an attestation required under subsection (f) of this section.

(i) A nursing home shall, not later than ten business days after receipt Public Act No.

26-103 4 of 5 Substitute Senate Bill No.

125 of an order from the commissioner imposing a civil penalty under subsection (h) of this section, submit a request in writing to the Department of Public Health for a hearing to contest the order.

If the nursing home fails to submit such a request not later than ten business days after such receipt, the order shall be deemed a final order of the department, effective upon the expiration of such ten business days.

After receipt of a timely request for a hearing, the department shall set the matter down for a hearing as a contested case in accordance with the provisions of chapter 54 of the general statutes.

Sec.

2.

(Effective from passage) The Commissioner of Social Services, in consultation with the Commissioner of Public Health, shall review and evaluate the (1) nursing home disclosures provided in accordance with theprovisionsofsection1 ofthisact,(2)quality ofcare at nursing homes that are subject to a beneficialownershipinterest ofaninvestment entity compared to the quality of care at nursing homes under other ownership structures, and (3) implications of prohibiting a person or entity who acquires ownership of real property on which a licensed nursing home operates from selling, transferring or otherwise conveying such property within five years of such acquisition without written approval from the Commissioner of Public Health.

Not later than February 15, 2028, the Commissioner of Social Services shall report the results of such review, in accordance with the provisions of section 11-4a of the general statutes, to the joint standing committees of the General Assembly having cognizance of matters relating to human services, publichealth, appropriationsandthebudgetsofstate agencies, and aging.

Governor's Action:

Approved June 4, 2026 Public Act No.

26-103 5 of 5