S.B. No. 1522 amends the Health and Safety Code to improve the regulation of continuing care facilities in Texas. The bill redefines "assisted living facility" and establishes the Texas Department of Insurance as the governing body, replacing the State Board of Insurance. It clarifies the definition of "entrance fee" to include amounts for residency and related services while excluding optional modifications to living units. New definitions for "nursing facility" and "board" are introduced, and it is specified that continuing care must be provided under a contract to individuals not related to the provider. The bill also enhances consumer protections by ensuring residents receive all statutory rights applicable to nursing home and assisted living residents, mandates clear cancellation policies and refund procedures in continuing care contracts, and prohibits misleading advertisements.

Additionally, the bill outlines changes regarding the management and release of entrance fees for continuing care facilities. It allows escrow agents to release fees after the initial release without further proof of compliance, provided that monthly marketing reports are submitted and any issues are promptly reported to the department. New conditions for disbursing funds are introduced, including obtaining necessary government permits and ensuring a bond for construction performance. The timeline for returning entrance fees is clarified, requiring returns within 36 months or as specified in the disclosure statement. Certain fees are exempted from escrow requirements, and the frequency of actuarial reviews for facilities is updated. These changes will take effect on January 1, 2026, applying only to providers issued a certificate of authority after that date.

Statutes affected:
Introduced: Health and Safety Code 246.002, Health and Safety Code 246.0025, Health and Safety Code 246.004, Health and Safety Code 246.022, Health and Safety Code 246.055, Health and Safety Code 246.056, Health and Safety Code 246.057, Health and Safety Code 246.071, Health and Safety Code 246.072, Health and Safety Code 246.073, Health and Safety Code 246.0736, Health and Safety Code 246.074, Health and Safety Code 246.075, Health and Safety Code 246.077, Health and Safety Code 246.114 (Health and Safety Code 246)
Senate Committee Report: Health and Safety Code 246.002, Health and Safety Code 246.0025, Health and Safety Code 246.004, Health and Safety Code 246.022, Health and Safety Code 246.055, Health and Safety Code 246.056, Health and Safety Code 246.057, Health and Safety Code 246.071, Health and Safety Code 246.072, Health and Safety Code 246.073, Health and Safety Code 246.0736, Health and Safety Code 246.074, Health and Safety Code 246.075, Health and Safety Code 246.077, Health and Safety Code 246.114 (Health and Safety Code 246)
Engrossed: Health and Safety Code 246.002, Health and Safety Code 246.0025, Health and Safety Code 246.004, Health and Safety Code 246.022, Health and Safety Code 246.055, Health and Safety Code 246.056, Health and Safety Code 246.057, Health and Safety Code 246.071, Health and Safety Code 246.072, Health and Safety Code 246.073, Health and Safety Code 246.0736, Health and Safety Code 246.074, Health and Safety Code 246.075, Health and Safety Code 246.077, Health and Safety Code 246.114 (Health and Safety Code 246)
House Committee Report: Health and Safety Code 246.002, Health and Safety Code 246.0025, Health and Safety Code 246.004, Health and Safety Code 246.022, Health and Safety Code 246.055, Health and Safety Code 246.056, Health and Safety Code 246.057, Health and Safety Code 246.071, Health and Safety Code 246.072, Health and Safety Code 246.073, Health and Safety Code 246.0736, Health and Safety Code 246.074, Health and Safety Code 246.075, Health and Safety Code 246.077, Health and Safety Code 246.114 (Health and Safety Code 246)
Enrolled: Health and Safety Code 246.002, Health and Safety Code 246.0025, Health and Safety Code 246.004, Health and Safety Code 246.022, Health and Safety Code 246.055, Health and Safety Code 246.056, Health and Safety Code 246.057, Health and Safety Code 246.071, Health and Safety Code 246.072, Health and Safety Code 246.073, Health and Safety Code 246.0736, Health and Safety Code 246.074, Health and Safety Code 246.075, Health and Safety Code 246.077, Health and Safety Code 246.114 (Health and Safety Code 246)