TexasSB 152289th Legislature Regular SessionSenateWALLET

Relating to the regulation of continuing care facilities.

Sponsored By: Charles Perry (Republican), Toni Rose

Signed by Governor

Nursing HomesASSISTED LIVING FACILITIESINSURANCE, COMMISSIONER OFINSURANCE, TEXAS DEPARTMENT OF

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Bill Overview

Analyzed Economic Effects

6 provisions identified: 1 benefits, 2 costs, 3 mixed.

Care facilities face regular financial reviews

The revised review schedule covers providers issued certificates of authority on or after January 1, 2026. Facilities subject to the requirement must file an actuarial review of their finances at least once every five years. The commissioner can require earlier reviews if a facility leases any grounds or operating buildings from a third party. Financial instability also allows the commissioner to require an earlier review.

Care facilities can hold smaller reserves

This option covers providers issued certificates of authority on or after January 1, 2026. Facilities can exclude some loan principal and interest when calculating their required loan-reserve escrow. Only payments tied to licensed nursing or assisted living parts of the facility qualify. Choosing the exclusion lowers the required reserve.

Some resident fees stay outside escrow

These exceptions cover providers issued certificates of authority on or after January 1, 2026. A waitlist fee or similar fee of $1,000 or less does not require escrow. A nonrefundable part of a deposit or entrance fee also avoids escrow if it is no more than 2% of the entrance fee. The contract or reservation agreement must clearly label that portion nonrefundable.

More home care gets consumer protections

The new rules cover providers issued certificates of authority on or after January 1, 2026; earlier providers follow prior law. Continuing care includes housing and services with priority, guaranteed, or discounted access to higher care levels for someone unrelated to the provider. Care can come from third parties, happen elsewhere, or help someone stay home; a facility can include the person's residence. Nursing and assisted living rooms do not count as living units. An entrance fee is money or property paid or promised for admission, worth more than three months of residency and service payments. Reservation deposits and separately agreed payments for optional unit changes do not count as entrance fees. The Texas Department of Insurance oversees the chapter.

Resident fee safeguards have project limits

For providers issued certificates of authority on or after January 1, 2026, these construction-stage fee-release safeguards cover only new facilities and expansions adding at least 50% more living units. Before escrowed entrance fees are first released, at least 50% of units must have uncanceled signed contracts or reservations. Each reserved unit needs a deposit of at least 10% of its entrance fee. Entrance fees, expected financing, and provider-held funds must cover at least 90% of construction or purchase, equipment, and furnishing costs. Providers also need commitments for 90% of initial-loss funding and 90% of any required loan-reserve escrow in place. They need binding permanent financing, with disbursement conditions substantially met except for construction and closing. Construction safeguards include permits, a maximum-price building contract, a surety bond, and a construction loan that, with other funds, covers estimated costs. At least 10% of that loan must be spent on construction or site work, with firm-priced orders covering at least 50% of furnishings and related items. After the first release, the commissioner must allow continued releases without renewed proof of those initial conditions if providers submit monthly marketing reports and immediately report problems. Post-construction release rules take over when construction is complete, required occupancy permits are issued, and all units are available.

Resident refunds get deadlines with exceptions

These repayment rules cover providers issued certificates of authority on or after January 1, 2026. Entrance fees not released or placed in loan-reserve escrow must generally be returned within 36 months after any portion arrives. The disclosure statement delivered with the contract can set a longer period. Earlier repayment is due as soon as practicable after death before move-in or an indefinite construction halt before completion at a facility not yet operating. Rescission also triggers repayment, with entrance-fee refunds due within 30 days of rescission.

Sponsors & Cosponsors

Sponsors

  • Charles Perry

    Republican • Senate

  • Toni Rose

    House

Cosponsors

There are no cosponsors for this bill.

Roll Call Votes

All Roll Calls

Yes: 329 • No: 0

Senate vote • 5/30/2025

Record vote

Yes: 31 • No: 0

House vote • 5/28/2025

Record vote

Yes: 141 • No: 0

House vote • 5/27/2025

Record vote

Yes: 141 • No: 0

Senate vote • 4/16/2025

Record vote

Yes: 0 • No: 0

Senate vote • 4/16/2025

Record vote

Yes: 0 • No: 0

House vote • Unknown

Committee vote: Human Services

Yes: 7 • No: 0

Senate vote • Unknown

Committee vote: Health & Human Services

Yes: 9 • No: 0

Actions Timeline

  1. Effective on 1/1/26

    6/20/2025House
  2. Signed by the Governor

    6/20/2025House
  3. Sent to the Governor

    6/1/2025House
  4. Signed in the House

    6/1/2025House
  5. Signed in the Senate

    5/31/2025Senate
  6. Reported enrolled

    5/31/2025Senate
  7. Senate concurs in House amendment(s)-reported

    5/31/2025House
  8. Record vote

    5/30/2025Senate
  9. Senate concurs in House amendment(s)

    5/30/2025Senate
  10. Read

    5/30/2025Senate
  11. House amendment(s) laid before the Senate

    5/30/2025Senate
  12. House passage as amended reported

    5/28/2025Senate
  13. Record vote (RV#3883)

    5/28/2025House
  14. Passed

    5/28/2025House
  15. Read 3rd time

    5/28/2025House
  16. Statement(s) of vote recorded in Journal

    5/27/2025House
  17. Record vote (RV#3777)

    5/27/2025House
  18. Passed to 3rd reading

    5/27/2025House
  19. Read 2nd time

    5/27/2025House
  20. Placed on General State Calendar

    5/25/2025House
  21. Considered in Calendars

    5/23/2025House
  22. Committee report sent to Calendars

    5/22/2025House
  23. Committee report distributed

    5/21/2025House
  24. Comte report filed with Committee Coordinator

    5/21/2025House
  25. Reported favorably as substituted

    5/16/2025House

Bill Text

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