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Signed Into Law
Signed June 20, 2025Effective 2026-01-01
SB1522

Regular Session

Relating to the regulation of continuing care facilities.

Government Affairs & Regulatory Compliance Analysis

SB1522: Government Affairs Overview

SB1522 fundamentally restructures the regulatory environment for Continuing Care Retirement Communities (CCRCs) and senior living providers charging entrance fees, granting the Texas Department of Insurance (TDI) broad new powers regarding financial solvency and licensure. The most critical change empowers the Commissioner to potentially deny licensure to operators who do not own the land on which their facility sits, posing an existential risk to lease-back (OpCo/PropCo) business models.

Sen. Charles Perry·Senate Bill·Regular Session

Critical
Medium Cost
Effective:2026-01-01
Business Impact

Who SB1522 Affects

This legislation has regulatory implications for the following Texas businesses and organizations:

Regulatory Priority: critical

Significant regulatory changes (effective 2026-01-01). Review with your legal and compliance teams to understand implications.

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Banking & Finance

Affected business types:

  • Banks
  • Credit unions
  • Financial services firms
  • Insurance companies
View all banking & finance legislation

Key Operational Considerations

  • 1Mandatory Cancellation Clause: All Continuing Care contracts must include a specific, bolded, capitalized 7-day cancellation notice.
  • 2Refund Logic: Contracts must be updated to cap cancellation service charges at the greater of $1,000 or 2% of the entrance fee.
  • 3Sales & Marketing: Staff must be retrained on prohibited terminology. Using "Continuing Care" or "CCRC" without a Certificate of Authority is now grounds for license revocation.

Estimated Cost Impact

mediumModerate costs expected for implementation.

Enforcing Agencies

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SB1522
Critical
Relating to the regulation of continuing care facilities.
Critical Compliance Urgency
Requires immediate attention
Cost Impact
Medium
Effective
2026-01-01
Enforcing Agencies
Texas Department of Insurance
Primary Author: Sen. Charles Perry
89th Texas Legislature
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01

Compliance Analysis

Key implementation requirements and action items for compliance with this legislation

Implementation Timeline

  • Effective Date: January 1, 2026
  • Compliance Deadline: January 1, 2026. All contracts signed on or after this date must contain the new statutory language. Marketing materials must be compliant by this date.
  • Agency Rulemaking: While no specific rulemaking deadline is mandated, the law grants the Commissioner discretion to define "financial instability." Expect TDI guidance or informal rulemaking throughout 2025 to clarify how they will enforce the land ownership requirement and discretionary actuarial reviews.

Immediate Action Plan

  • 1. Audit Real Estate Structure: If your facility operates on a lease, immediately engage counsel to evaluate the risk of licensure denial under the new ownership provisions.
  • 2. Redraft Resident Agreements: Update all templates to include the mandatory cancellation notice and, where applicable, the fee-for-service exemption disclaimer.
  • 3. Scrub Marketing Collateral: Audit all websites and brochures. Remove the phrase "Continuing Care" unless you hold a valid Certificate of Authority.
  • 4. Update Escrow Protocols: Adjust accounting software to segregate deposits over $1,000 and release restrictions on deposits under $1,000.
  • 5. Prepare Disclosure Statements: Ensure your Disclosure Statement is digitized and ready for immediate distribution to comply with the "upon request" requirement.

Operational Changes Required

Contracts

  • Mandatory Cancellation Clause: All Continuing Care contracts must include a specific, bolded, capitalized 7-day cancellation notice.
  • Fee-for-Service Exemption: Facilities charging entrance fees that are *not* CCRCs must insert a specific statutory disclaimer stating the contract is "exempt from Chapter 246" to avoid full regulation.
  • Refund Logic: Contracts must be updated to cap cancellation service charges at the greater of $1,000 or 2% of the entrance fee.

Hiring/Training

  • Sales & Marketing: Staff must be retrained on prohibited terminology. Using "Continuing Care" or "CCRC" without a Certificate of Authority is now grounds for license revocation.
  • Accounting: Finance teams must be trained to process refunds within a strict 30-day window following contract rescission.

Reporting & Record-Keeping

  • Escrow Management: Waitlist/application fees of $1,000 or less are now exempt from escrow. Fees above this amount must remain segregated.
  • Early Release Reporting: Facilities in construction phases utilizing early escrow release must submit monthly reports to TDI regarding marketing activities.
  • Disclosure Access: You must provide the current Disclosure Statement immediately upon request in the format preferred by the resident (electronic or hard copy).

Fees & Costs

  • Actuarial Reviews: Budget for potential off-cycle actuarial reviews. TDI may demand these more frequently than the standard 5-year cycle if the facility leases its land or exhibits "financial instability."
  • Legal Costs: Immediate budget allocation required for corporate restructuring analysis (if leasing land) and contract re-drafting.

Strategic Ambiguities & Considerations

  • Land Ownership Discretion: Section 246.022(c-1) states the Commissioner *may* deny an application if the applicant does not own the real property. It does not define the criteria for approval in lease situations. This creates high uncertainty for REIT-owned or leased facilities.
  • "Financial Instability": The statute allows TDI to trigger audits based on "conditions of financial instability" without defining specific liquidity ratios or metrics. This subjects operators to subjective regulatory enforcement until TDI establishes clear benchmarks.

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JD Key Consulting specializes in Texas regulatory compliance strategy. Work directly with James Dickey—former Chairman of the Republican Party of Texas—to understand this bill's impact on your operations and develop an actionable compliance plan.

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Information presented is for general knowledge only and is provided without warranty, express or implied. Consult qualified government affairs professionals and legal counsel before making compliance decisions.

02

Legislative Timeline

This bill's path through the Texas Legislature

Filed
Feb 21, 2025
Passed Senate
Apr 16, 2025
Passed House
May 28, 2025
Signed
Jun 20, 2025
Effective
Jan 1, 2026
TopicsNursing HomesAssisted Living FacilitiesInsurance, Commissioner ofInsurance, Texas Department of
03

Senate Authors

Sen. Charles PerryRepublican · Primary Author

House Sponsor

Rep. Toni RoseDemocrat · Primary Sponsor

Bill Text(with markup)

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View bill text in multiple formats on Texas Legislature website

Fiscal NoteView Original

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Quick Reference

Frequently Asked Questions

Common questions about SB1522

Q

What does Texas SB1522 do?

SB1522 fundamentally restructures the regulatory environment for Continuing Care Retirement Communities (CCRCs) and senior living providers charging entrance fees, granting the Texas Department of Insurance (TDI) broad new powers regarding financial solvency and licensure. The most critical change empowers the Commissioner to potentially deny licensure to operators who do not own the land on which their facility sits, posing an existential risk to lease-back (OpCo/PropCo) business models.

Q

Who authored SB1522?

SB1522 was authored by Texas Senator Charles Perry during the Regular Session.

Q

When was SB1522 signed into law?

SB1522 was signed into law by Governor Greg Abbott on June 20, 2025.

Q

Which agencies enforce SB1522?

SB1522 is enforced by Texas Department of Insurance.

Q

How significant are the changes in SB1522?

The regulatory priority for SB1522 is rated as "critical". Businesses and organizations should review the legislation to understand potential impacts.

Q

What is the cost impact of SB1522?

The cost impact of SB1522 is estimated as "medium". This may vary based on industry and implementation requirements.

Q

What topics does SB1522 address?

SB1522 addresses topics including nursing homes, assisted living facilities, insurance, commissioner of and insurance, texas department of.

Q

What are the key dates for SB1522?

Key dates for SB1522: Effective date is 2026-01-01. Consult with legal counsel regarding applicability.

Q

What are the penalties under SB1522?

SB1522 establishes the following penalties: administrative penalty of Denial of Certificate of Authority for Applicant does not own the real property on which the facility is located (discretionary rejection by Commissioner).; administrative penalty of Revocation/Denial for Using the title 'continuing care facility' or 'continuing care retirement community' in advertising without a certificate of authority.. Consult with legal counsel for specific applicability to your situation.

Q

Which Texas businesses are affected by SB1522?

SB1522 primarily affects insurance companies and financial institutions. These businesses should review the legislation with their legal and compliance teams to understand potential impacts.

Need Strategic Guidance on This Legislation?

JD Key Consulting is an Austin, Texas-based government affairs firm led by James Dickey, former Chairman of the Republican Party of Texas. We specialize in Texas regulatory compliance and legislative strategy for data centers, energy, banking, and manufacturing.

Legislative data provided by LegiScanLast updated: January 11, 2026