New YorkS 45852025-2026 Regular SessionSenateWALLET

Promotes efficient and effective oversight of continuing care retirement communities; repealer

Sponsored By: Cordell Cleare (Democratic)

Became Law

HEALTHWAYS AND MEANS

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Bill Overview

Analyzed Economic Effects

8 provisions identified: 2 benefits, 0 costs, 6 mixed.

Caps and escrow protections on reservation fees

A community cannot collect a priority reservation fee without written approval from the commissioner. The fee is capped at $2,000 unless the commissioner sets a higher limit. Non‑refundable application fees are also limited by the commissioner. Refundable fees must be held in escrow, and if funds are not released on time, the escrow agent must return the money with any interest.

OK for communities using long‑term care insurance

The commissioner can approve a community even when nursing or home health costs are paid by long‑term care insurance or Medicaid partnership payments. Other approved group or individual long‑term care insurance can also be used. The council, with the insurance superintendent, must give clear disclosures and set rules for collecting premiums and monthly care fees. This keeps options open for seniors who have coverage.

Tougher rules on public bond financing

The Health Commissioner must pre‑approve any industrial development agency financing for a continuing care community. The operator needs heavy pre‑sales: 70% of units with 10% deposits, or 60% with 25% deposits. Nonprofits must be 501(c)(3) and have at least 15% equity or meet reserve and debt‑reduction covenants. Independent feasibility and economic studies are required, and a fully funded debt‑service reserve must be in place.

Limits and clear info for fee‑for‑service communities

The state allows up to eight fee‑for‑service continuing care communities statewide, and no more than two may be for‑profit. These communities must give a plain‑language information sheet in at least 12‑point type with marketing and the initial disclosure. Their contracts must also be in plain language and at least 12‑point type with required terms. This improves transparency but limits how many fee‑for‑service options can open.

Rules for continuing care at‑home programs

A community may offer continuing care at home only after the commissioner approves a certificate amendment. The operator must submit a business plan, the proposed contract, an independent actuarial study, a market study, required materials, and proof of notice to current contract holders. The number of at‑home contracts is limited to the number of approved independent living units unless the department allows more, and it must match available adult care and nursing capacity. These rules expand choices while protecting existing residents and solvency.

Stronger enforcement and caretakers for communities

Starting June 1, 2026, the department can examine any community at any time and must examine each at least once every three years. Examination reports are public. The commissioner can revoke, suspend, or limit a certificate for serious problems, with a hearing; emergency limits can last up to 60 days. The same enforcement tools apply to fee‑for‑service communities. For repeated or major health and safety failures, the commissioner can ask a court to appoint a caretaker or a receiver, and may issue a temporary certificate so care continues during receivership.

State takes charge of continuing care oversight

The Health Commissioner is now the main licensing and oversight authority for continuing care communities. Starting June 1, 2026, the commissioner approves rate methods for entrance and monthly care fees, and larger increases need approval. Small monthly fee changes may track a department cost index without prior approval. Financial and actuarial reviews for certificates move to the commissioner on June 1, 2026. A new advisory council helps on policy, but the commissioner keeps licensing and enforcement power. Ownership or control changes need approval like a new certificate, and the old 60‑day decision clock is removed. The commissioner may charge up to $50 per approved living unit each year. Some organizations that meet Article 46 rules can operate without a separate license under this chapter, but must still meet financial and contract standards, with insurance regulators consulting the council.

Stronger reserves and yearly filings

Operators must keep liquid assets to cover up to 12 months of debt, taxes, and insurance, up to 6 months of operating costs, and up to 12 months of repairs. Starting June 1, 2026, operators must file audited annual financial statements within four months of year‑end and provide an actuarial review at least every three years. Sixty days before each year, they must also file debt service calculations and 10‑year projections. Fee‑for‑service operators follow the same annual filing and projection rules. Late filings can face a fee.

Sponsors & Cosponsors

Sponsor

Cordell Cleare
Democratic • Senate

Cosponsors

There are no cosponsors for this bill.

Roll Call Votes

All Roll Calls

Yes: 71 • No: 0

Senate vote • 6/4/2025

FLOOR Vote

Yes: 58 • No: 0

committee vote • 5/13/2025

Health Committee Vote

Yes: 13 • No: 0

Actions Timeline

APPROVAL MEMO.70
12/19/2025Senate
SIGNED CHAP.691
12/19/2025Senate
DELIVERED TO GOVERNOR
12/8/2025Senate
RETURNED TO SENATE
6/11/2025House
PASSED ASSEMBLY
6/11/2025House
ORDERED TO THIRD READING RULES CAL.603
6/11/2025House
SUBSTITUTED FOR A1464A
6/11/2025House
REFERRED TO WAYS AND MEANS
6/4/2025House
DELIVERED TO ASSEMBLY
6/4/2025Senate
PASSED SENATE
6/4/2025Senate
ADVANCED TO THIRD READING
5/15/2025Senate
2ND REPORT CAL.
5/14/2025Senate
1ST REPORT CAL.1088
5/13/2025Senate
REFERRED TO HEALTH
2/7/2025Senate

Bill Text

Original
2/7/2025
PDF

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