Senate Bill No. 481 aims to improve transparency and financial accountability in nursing home operations while safeguarding residents' rights by prohibiting mandatory arbitration agreements. Effective October 1, 2026, the bill requires nursing homes to provide the Commissioner of Social Services with comprehensive information about their ownership entities, including beneficial ownership interests, financial statements, and agreements related to ownership transfers. Additionally, nursing homes must secure a performance bond equivalent to ninety days of operating costs when owned or partially owned by such entities. The bill also restricts the sale or transfer of real property on which a nursing home operates for five years post-acquisition, requiring written approval from the Commissioner of Public Health, who can only grant approval if it benefits resident care or operational stability.

The legislation explicitly prohibits nursing homes from requiring residents or prospective residents to sign arbitration agreements as a condition of admission or continued care, rendering any such agreements entered into after the bill's effective date void and against public policy. This provision takes effect immediately upon passage, while other aspects of the bill will be effective from October 1, 2026. The bill also mandates that nursing homes report detailed ownership information to the Department of Social Services starting February 15, 2027, including business addresses, leadership names, ownership shares, and financial documentation. Notably, the bill removes a previously proposed provision that would have allowed the Department of Social Services to impose daily fines on non-compliant nursing homes.