Virginia HB 717: Potential Changes Coming to Nursing Home Licensure?

Summary - A bill introduced in the Virginia General Assembly aims to bring changes to nursing home licensure. House Bill No. 717 will require new operators to obtain a change of operator license before taking over daily operations following a change of ownership or control of a nursing home. The bill further establishes civil penalties for failing to apply for a license or providing fraudulent information on an application.

On January 13, 2026, Delegate Rodney Willett (D) introduced House Bill No. 717 to add new licensure requirements following a change of ownership or control at a nursing home facility. The proposed legislation would require new operators to obtain a change of operator license before taking over the daily operations and management of a nursing home. If enacted, this legislation will essentially prohibit the often used interim management structure in Virginia.

The bill provides that new operators must apply for the license with the Commissioner of Health no later than forty-five or ninety days, depending on if residents will be relocated because of the change of ownership. The application requires disclosure of direct or indirect owners with at least five percent ownership in the new operator, facility building(s), legal rights associated with the nursing home beds, and contracted service providers. If any disclosed parties have or had ownership or interest in a current or previously licensed nursing home in Virginia or elsewhere, new operators must disclose whether that nursing home experienced issues including bankruptcy proceedings or license suspension, denial, or revocation in the last five years. The bill further requires that new operators must have at least five years of relevant operational experience and provide plans for risk management, quality assurance, staffing, and insurance. 

In addition, House Bill No. 717 will also require the new operator to obtain a bond or other financial security acceptable to the Commissioner. The bond amount is calculated by multiplying the number of nursing home beds at the facility by $10,000. The bond must be maintained for a period of five years following the effective date the operator changes. The Commissioner may utilize the bond to pay for expenses incurred by the Health Department if the one of six events occur: 1) Closure of the nursing home; 2) bankruptcy proceedings; 3) receivership proceedings; 4) license suspension, denial or revocation; 5) an additional change of operator occurs; or 6) the nursing home is included on the Special Focus Facility list published by the Centers for Medicare and Medicaid Services. 

The bill establishes civil penalties for those who do not comply with the licensure requirements. New operators who fail to apply or provide fraudulent information on an application will receive a penalty of $2,000 for each day after the change of operator occurs. If a new operator does not notify the Commission of any changes made that would affect information provided on an application, the new operator will receive a $2,000 penalty. If a new operator fails to apply for a license within sixty days of receiving notice of a penalty, the Commissioner may begin the process of revoking the nursing home license.

Next Steps

The bill passed the House of Delegates on February 17, 2026, with overwhelming support (97-0 vote). On February 26, the Senate Education and Health Committee approved the bill in a 14-0 vote and referred it to Finance and Appropriations, which approved it by a 14-0 vote. The full Senate unanimously voted to pass HB 717 on March 10, 2026. The legislation will now be sent to Governor Spanberger for her to sign, amend, or veto. The expectation is Governor Spanberger will sign HB 717 into law.