This chapter does not apply to an admission or residence agreement offered by a residential community that charges an entrance fee if:

1. (1) residents of the residential community pay for available assisted living services and nursing home care on a fee-for-service basis;
2. (2) fees for available assisted living services and nursing home care are the same for a prospective resident as a current resident of the living unit; and

3. (3) the admission or residence agreement includes the following statement or a substantially equivalent statement in type that is boldfaced, capitalized, underlined, or otherwise set out from the surrounding written material so as to be conspicuous:

   "A continuing care contract provides priority, guaranteed, or discounted access to progressive levels of health care services. ____________ (Name of community or facility) is not a licensed continuing care facility and does not hold a certificate of authority from the Texas Department of Insurance. This agreement is not a continuing care contract and is exempt from the requirements of Chapter 246, Health and Safety Code."

Added by Acts 2025, 89th Leg., R.S., Ch. 836 (S.B. 1522), Sec. 4, eff. January 1, 2026.