Senate Bill No. 1332 aims to enhance financial accountability in nursing homes by prohibiting private equity companies (PECs) and real estate investment trusts (REITs) from acquiring or increasing their ownership interest, operational control, or financial control over nursing homes starting October 1, 2025. The bill defines key terms such as "indirect ownership interest," "nursing home," and "operational control," and specifies that ownership interest includes capital, stock, profits, or real estate ownership related to nursing homes. It also outlines the actions that constitute operational control, such as influencing policies or appointing key personnel.

Additionally, the bill mandates that individuals seeking a license to operate a nursing home that is partially or fully owned by a PEC or REIT must provide the Department of Public Health with evidence of compliance with the new regulations. This includes disclosing ownership details and financial statements. The bill repeals and substitutes certain provisions in existing law to incorporate these requirements, ensuring that the Department can effectively review compliance without incurring additional fiscal impacts on the state or municipalities.