It appears the Florida CCRC legislation is a no-go for the 2025 session. The word we are getting is that the major parties - FLiCRA (residents), Leading Age (operators) and FLOIR (Office of Insurance Regulation) seem to be on talking terms so expect much of this will be worked out and presented next year.
I've pasted in the content of the latest FLiCRA eNewsletter because there are a lot of links people may find interesting.
April 2, 2025 Legislative Update
Legislative Update
In this newsletter, FLiCRA is sharing information on updates to Senate Bill 1656 and House Bill 1429 as it relates to continuing care retirement community reform.
As was shared in the March 29th, 2025 FLiCRA e-newsletter, a stakeholder meeting was held on March 27th related to Senate Bill 1656 and House Bill 1429.
As a result of the meeting, continuing care reform provisions will be stricken from these bills for the remainder of this legislative session.
Senate Bill 1656 awaits its next hearing before the Appropriations Committee on Agriculture, Environment and General Government. It appears the next meeting of that committee is April 10th.
House Bill 1429 has been scheduled for its first committee in the on April 3rd before the Insurance and Banking Subcommittee. The House sponsor of the bill has put forth an amended version of the bill that will come before the Subcommittee.
The new proposed bill is now 45 pages in length down from the original 168 pages filed in February. The new bill has stricken all of the continuing care reform proposals as well as a number of other non CCRC related items from the original bill.
The new proposed bill text is located at :
https://www.flhouse.gov/Sections/Documents/loaddoc.aspx?FileName=PCS for HB 1429.pdf&DocumentType=Proposed Committee Bills (PCBs)&Session=2025&CommitteeId=3289
As a result of these developments related to the halting of CCRC reform in Florida this year, FLiCRA believes it is important to share relevant information as it relates to current action by other state legislatures as well as media coverage that addresses concerns over protection of CCRC resident financial interests.
The sources below illustrate some topics for discussion for CCRC stakeholders in Florida as the Florida Legislature will reconvene for its next legislative session in January 2026.
Article on CCRC Bankruptcies and the GAP for Residents
https://news.bloomberglaw.com/us-law-week/bankruptcy-code-should-better-protect-continuing-care-patients
Excerpt from the article published in February 2025
Section 507(a)(7) of the Bankruptcy Code might be relevant to CCRC entrance fees. The Bankruptcy Reform Act’s legislative history indicates that Congress intended to give priority status to certain types of consumer claims, but it doesn’t specifically mention CCRCs or similar arrangements. However, claims for entrance fees to a CCRC can be considered consumer claims, particularly when they involve issues related to the refund of those fees. Further, a priority claim for a consumer deposit is limited to $3,350—a small fraction of the entrance fee.
“Federal law doesn’t regulate CCRCs, and state regulations vary. Several state legislatures have attempted to enact legislation aimed at protecting residents. However, because of the US Constitution’s Supremacy Clause, many of these statutes are likely to be preempted by the Bankruptcy Code’s protection of a debtor’s right to reject executory contracts. To date, no federal statute has been enacted to protect CCRC residents from the potential effects of bankruptcy.”
Article on a CCRC Catastrophe Bond Concept to Protect Resident Funds
https://www.toptal.com/management-consultants/fundraising/looming-crisis-in-continuing-care-retirement-communities-ccrc
New York:
Legislation is pending in New York in large part to the third bankruptcy of the same CCRC since 2014:
https://www.mcknightsseniorliving.com/news/new-harborside-ccrc-owner-seeks-additional-tax-abatements-after-bankruptcy-sale/?utm_source=marketing&utm_medium=email&utm_campaign=NWLTR_MSL_BusinessDaily_033125&hmEmail=&sha256email=dc59a2ccc1bb4d25e9c4d1808d7074941febc08d806cf4dc1c0a3d802ed72119&elqTrack=True
The CCRC is up for sale as part of the most recent bankruptcy.
A condition of the sale, as ordered by Chief Judge Alan S. Trust of the US Bankruptcy Court for the Eastern District of New York, was that former residents of the CCRC are to be at least partially reimbursed for entrance fees they had paid, estimated to be approximately $130 million. The parties settled on reimbursing a total of approximately $42.5 million in two installments, which means about $0.25 on the dollar for residents.
Senate Bill 5980 – One of the provisions of this bill includes the commissioner of insurance shall designate an ombudsperson for each county in which a CCRC is located to monitor the bill of rights and any other regulations concerning residence in independent living at a CCRC.
https://legiscan.com/NY/text/S05980/2025
Senate Bill 4585 – would move CCRC regulation from the Insurance Department to the Health Department
https://www.nysenate.gov/legislation/bills/2025/S4585
North Carolina
State legislation is on the table driven by financial issues at the Aldersgate CCRC in Charlotte, NC. The challenges were covered by the Wall Street Journal.
The current North Carolina legislation also addresses “management companies” just as Florida’s Senate Bill 1656 and House Bill 1429 addressed. This reflects the national trend with many nonprofit and for profit CCRCs having affiliated or third party management companies that manage day to day operations of a CCRC.
https://www.wfae.org/business/2025-03-31/legislation-would-change-rules-for-continuing-care-retirement-communities-in-nc
https://www.northcarolinahealthnews.org/2025/03/22/lawmakers-push-for-stricter-oversight-of-retirement-communities/
Senate Bill 105/House Bill 357
https://www.ncleg.gov/Sessions/2025/Bills/Senate/PDF/S105v1.pdf
Oregon
https://olis.oregonlegislature.gov/liz/2025R1/Downloads/CommitteeMeetingDocument/292954
Senate Bill 1021 - Prohibits a CCRC from reducing or eliminating a service or program for a resident if the service or program was part of the residency agreement at the time the resident was admitted.
House Bill 3632 - A continuing care retirement community may not infringe upon a person’s rights under the Constitution of the United States and under the Constitution of the State of Oregon, to freely express opinions and ideas, by prohibiting a person who resides in the continuing care retirement community from using community spaces or common areas to post signs or display information or to gather to meet and discuss grievances or concerns.
https://olis.oregonlegislature.gov/liz/2025R1/Downloads/MeasureDocument/HB3632/Introduced
Texas
https://legiscan.com/TX/text/SB1522/id/3135316
https://capitol.texas.gov/tlodocs/89R/analysis/html/SB01522I.htm
This legislation is a comprehensive bill and includes a provision similar to current Oregon legislation that prohibits a continuing care contract or reservation agreement from prohibiting residents from assembling.