The proposed legislation, General Assembly Raised Bill No. 481, aims to establish financial safeguards for nursing homes owned by private equity entities and to prohibit the requirement of arbitration agreements for residents. Effective October 1, 2026, the bill mandates that nursing homes provide the Commissioner of Social Services with detailed information about their ownership entities, including names, business addresses, financial statements, and any relevant agreements related to ownership. Additionally, nursing homes must secure a performance bond equivalent to ninety days of operating costs at the time of license application or renewal, and they cannot sell or transfer ownership of the property within five years without approval from the Commissioner of Public Health.

Furthermore, the bill explicitly states that no nursing home can require residents or prospective residents to sign arbitration agreements as a condition for admission or continued care, rendering such agreements void and against public policy. This legislation seeks to enhance transparency and accountability in the ownership and operation of nursing homes while protecting the rights of residents.