All Roll Calls
Yes: 152 • No: 0
North CarolinaHB 3572025-2026 SessionHouseWALLET
AN ACT TO ENACT THE CONTINUING CARE RETIREMENT COMMUNITIES ACT, AS RECOMMENDED BY THE DEPARTMENT OF INSURANCE.
Sponsored By: Jonathan L. Almond (Republican), Dean Arp (Republican), Chris Humphrey (Republican), Mitchell S. Setzer (Republican)
Signed by Governor
ACCOUNTINGAUDITING & AUDITSCOMMERCECONFIDENTIALITYCONSUMER PROTECTIONCOUNCIL OF STATEFIDUCIARIESHEALTH SERVICESHOUSINGINSURANCEINSURANCE DEPT
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Bill Overview
Analyzed Economic Effects
17 provisions identified: 11 benefits, 1 costs, 5 mixed.
Stronger help if a community fails
The Commissioner can step in to supervise, rehabilitate, or liquidate a troubled provider. Residents and depositors must be notified within five business days of these actions. If you signed a contract while the provider was breaking the law, you can cancel and get a refund with statutory interest, minus any care already provided, if you accept the written offer within 30 days. In a liquidation, continuing care contracts are preferred claims after admin costs and secured debts. Courts can allow more nursing or adult care beds in receivership, and providers in hazardous condition cannot pay dividends or distributions.
Refunds for bad or missing disclosures
Starting December 1, 2025, if a provider failed to give the required disclosure or it had a material misstatement or omission, you can recover money. You can get actual damages plus repayment of fees you paid, minus care already received, with interest at the legal judgment rate, court costs, and attorneys’ fees. You generally must sue within three years. If the provider sent a written refund offer with interest and you did not accept it within 30 days, you cannot sue under this section.
Approvals and notices for big provider changes
Providers need approval before selling or buying key property, leasing land for entrance‑fee projects, merging, or changing control or managers. Requests must be filed at least 45 days before a real estate deal, and residents must be told in writing within 10 business days after approval. Providers must also tell residents within 10 business days about major events like missed entrance‑fee refunds over 30 days late or planned unit cuts of 20% or more. No one may offer continuing care, take deposits, or sign contracts without the Commissioner's approval.
Stronger reserves and regular financial checks
Communities must keep an operating reserve equal to 50% of next year’s costs, with lower amounts allowed at higher occupancy. If average independent living occupancy is at least 93% and debt is very low, the reserve may be 12.5%. Providers must file audited annual financials within 150 days and unaudited quarterlies within 45 days. They must do an actuarial study at least every three years (some fee‑for‑service models file a projection every five). The Commissioner can also require monthly reports when needed.
Stronger escrow and quick refunds
Providers must send your deposits to an approved escrow within 10 business days. Escrow agreements must follow set rules and clearly state how interest, refunds, and disbursements work. Refunds are due within 10 business days for death, nonacceptance, voluntary cancellation, permit denial, or a Commissioner order; after construction, a voluntary‑cancel refund may wait for a similar unit to be reserved, but not over one year unless extended. Entrance fees are released in stages: up to 25% after 50% presales with 10% deposits, financing, and at least 90% of costs funded; the rest after 70% presales (or 70% occupancy for 60 days) and construction completion, with Commissioner approval. You may cancel a reservation or a signed continuing care contract within 30 days and get a refund, minus allowed costs and a service charge capped at the greater of $3,000 or 2% of the entrance fee (and never more than you paid).
Stronger oversight and penalties for providers
The Commissioner can deny, restrict, or revoke approvals for fraud, false statements, missed filings, or failing to keep escrow or reserves. If a license is revoked, the provider must notify depositors within five business days and refund deposits as required. The law lists warning signs of a hazardous condition, like insolvency, depleted reserves, overdue refunds, and liquidity problems. Starting December 1, 2025, the Commissioner can order a corrective plan within 45 days and require resident and depositor notice within five business days; if no acceptable plan is filed, the Commissioner can hire consultants at the provider’s expense. Starting December 1, 2025, the Commissioner may investigate, require sworn statements, and willful violations are a Class 1 misdemeanor.
Tougher financial reserves for communities
Providers must calculate an operating reserve using five‑year projections and the 12‑month daily average independent‑living occupancy, and update it at least twice a year. Reserve assets must be cash, cash‑equivalents, investment‑grade securities, or publicly traded stocks or funds, valued at current market value and generally free of liens. A provider may use a surety bond or an irrevocable letter of credit that names the Commissioner and gives required advance notices (90 days for nonrenewal; bonds need at least 45 days). A provider can take money from the reserve only after a detailed request at least 10 business days ahead; the Commissioner decides within five business days and residents must be told. Each year, providers must certify occupancy, the required reserve amount, and the assets or security backing it.
Your entrance fees stay protected
Providers must keep all entrance fees and deposits in a separate, approved escrow account. During early marketing, any deposit taken is capped at $5,000 and must go to escrow. Escrow money can only be put in low‑risk, federally backed investments and cannot be pledged as collateral. Interest or gains from escrow cannot be paid out without the Commissioner's written OK. Any change to the escrow agreement also needs the Commissioner's approval.
CCRC start-up certificate: $2,000 fee
Beginning December 1, 2025, CCRC developers must obtain a start-up certificate. The application must include management contracts, leases, a disclosure statement, and a market study. A $2,000 application fee is required. The Commissioner reviews the filing on a set schedule and approves only if statutory requirements are met.
New licensing rules for continuing care
The law sets a full licensing path for continuing care communities. The Commissioner must acknowledge applications in five business days and decide most licenses in 30 days (45 days for a preliminary certificate). A preliminary certificate needs studies plus either 50% of new units reserved with 10% deposits, or a $100,000 deposit with the Commissioner. A permanent license needs at least 70% presales with 10% deposits, plus financing and reserve confirmations. Big expansions (20%+ units) need prior approval, resident notice, a $1,000 fee, and a feasibility study. Permits and start‑up certificates expire after 36 months; one one‑year extension may be granted, or deposits in escrow must be refunded with interest if the extension is denied. If an application is denied, reasons must be given, and the applicant has 30 days to seek review and 30 days after that decision to request a hearing.
License rules for care-at-home programs
A community must be licensed to offer continuing care at home. The application includes a $500 fee (paid by the provider), a draft disclosure and contract, financials, market study, and an actuarial study unless exempt. Approval requires enough consumer interest, the ability to provide services, and no harmful financial impact on the community. After licensure, the provider must file an amended disclosure and any periodic reports the Commissioner requires.
No misleading CCRC ads to seniors
Beginning December 1, 2025, CCRC providers cannot advertise statements that conflict with required disclosures or with their contract terms. This protects seniors from misleading marketing. Ads must match what the provider actually offers.
Resident councils, meetings, and protections
Residents can elect a council and act together to raise concerns. Providers must hold one in‑person meeting for all residents every six months, give at least seven days’ notice, and keep materials or recordings available for 60 days. During disasters, meetings can be online but must be recorded. Providers must share state examination reports with residents within 10 business days. You cannot sign away the legal protections this law gives you.
Condo communities cannot add extra fees
The health department keeps authority to license long‑term care. A continuing care community that is set up as a condominium is exempt from Chapter 39A only if the condo declaration does not add fees beyond your continuing care contract or other service contracts. This protects you from hidden declaration fees.
Clearer disclosures before you sign
Before you sign or pay, the provider must give you a current disclosure (dated within one year plus 160 days) and copies of its contracts and differences. The cover page must show key dates, filing status, and warn that no agency checks accuracy. You can get disclosures by email with written consent, and you must sign a receipt; providers keep records at least five years. The Insurance Commissioner posts current disclosures online and can require fixes; providers may file corrections anytime. Each year, providers must file an updated disclosure within 150 days and pay a $2,000 fee; if late without an extension, a $1,000 late fee applies.
New sales tax rules for CCRCs
Beginning December 1, 2025, when a provider sells items to residents, the provider is treated as the user for sales and use tax. The provider owes tax only if its own use of the purchase would be taxable; if use is exempt, no tax is due. This rule does not cover alcoholic beverages. The change can raise or lower provider tax costs and resident prices.
How the new senior community law runs
Some filings providers send to the Commissioner stay confidential, including many actuarial and market studies. Providers must submit required documents electronically unless paper is requested. The Department of Insurance can write rules and can waive or modify parts of the law during declared disasters. The Commissioner can use civil, criminal, and administrative tools together to enforce the law. The old CCRC article is repealed, and the new law takes effect December 1, 2025.
Sponsors & Cosponsors
Sponsors
Jonathan L. Almond
Republican • House
Dean Arp
Republican • House
Chris Humphrey
Republican • House
Mitchell S. Setzer
Republican • House
Cosponsors
Jay Adams
Republican • House
Jeffrey C. McNeely
Republican • House
Jr. Ben T. Moss
Republican • House
Ray Pickett
Republican • House
Harry Warren
Republican • House
Roll Call Votes
Senate vote • 6/25/2025
HB 357: Continuing Care Retirement Communities Act.-AB
Yes: 46 • No: 0 • Other: 4
House vote • 6/11/2025
HB 357: Continuing Care Retirement Communities Act.
Yes: 106 • No: 0 • Other: 13
Actions Timeline
Ch. SL 2025-58
7/3/2025HouseSigned by Gov. 7/3/2025
7/3/2025HousePres. To Gov. 6/27/2025
6/27/2025HouseRatified
6/26/2025HouseOrdered Enrolled
6/25/2025SenatePassed 3rd Reading
6/25/2025SenatePassed 2nd Reading
6/25/2025SenatePlaced On Cal For 06/25/2025
6/24/2025SenateWithdrawn From Cal
6/24/2025SenateReptd Fav
6/23/2025SenateRe-ref Com On Rules and Operations of the Senate
6/19/2025SenateReptd Fav
6/19/2025SenateRe-ref Com On Finance
6/18/2025SenateReptd Fav
6/18/2025SenateRe-ref Com On Judiciary
6/17/2025SenateReptd Fav
6/17/2025SenateRe-ref to Commerce and Insurance. If fav, re-ref to Judiciary. If fav, re-ref to Finance. If fav, re-ref to Rules and Operations of the Senate
6/16/2025SenateWithdrawn From Com
6/16/2025SenateRef To Com On Rules and Operations of the Senate
6/16/2025SenatePassed 1st Reading
6/16/2025SenateRegular Message Received From House
6/16/2025SenateRegular Message Sent To Senate
6/12/2025HousePassed 3rd Reading
6/11/2025HousePassed 2nd Reading
6/11/2025HousePlaced On Cal For 06/11/2025
6/10/2025House
Bill Text
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Filed
Latest Edition
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