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," "operational control," and "ownership interest," clarifying that ownership can include capital, stock, profits, or real estate associated with nursing homes. It also outlines the actions that would constitute operational control, including 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 information about the ownership structure and any relevant financial details. The bill repeals and replaces certain provisions in existing law to incorporate these requirements, ensuring that the licensing process reflects the new accountability measures. Overall, the legislation seeks to safeguard the interests of nursing home residents by limiting the influence of profit-driven entities in their care.