S.B. No. 1522 amends the Health and Safety Code to enhance the regulation of continuing care facilities in Texas, introducing several key definitions and clarifications. The bill defines "assisted living facility" and introduces the term "Board" to refer to the Texas Department of Insurance. It clarifies the definition of "entrance fee" as an initial or deferred transfer of money for residency and related services, explicitly excluding deposits made under reservation agreements or payments for optional modifications. The bill also expands the definition of "facility" to include individual residences as part of a provider's offerings and ensures that residents are entitled to all statutory rights applicable to nursing home or assisted living residents.

Additionally, the bill outlines new requirements for continuing care contracts, including the necessity for providers to obtain a certificate of authority and the conditions under which entrance fees can be released. It prohibits misleading advertisements and mandates that continuing care contracts include specific cancellation rights for residents. The legislation also establishes new conditions for the disbursement of entrance fees, including the requirement for government permits and maximum price contracts, while allowing escrow agents to release fees based on monthly marketing reports. Furthermore, it sets a maximum timeline of 36 months for returning entrance fees if not released to the provider and specifies that fees of $1,000 or less do not require escrow if marked as nonrefundable. These changes will take effect on January 1, 2026, and will apply 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)