The proposed bill, effective October 1, 2026, seeks to regulate private equity ownership of nursing homes by introducing new requirements for ownership entities, which include individuals and companies investing in these facilities. It mandates that nursing homes report detailed information about their ownership entities to the Department of Social Services (DSS) annually, including ownership interests, financial statements, and related agreements. Additionally, nursing homes must secure a performance bond or similar security equivalent to ninety days of operating costs, which must be submitted to the Department of Public Health (DPH) during the license application or renewal process.

Moreover, the bill prohibits the sale or transfer of real property where a licensed nursing home operates within five years of acquisition without written approval from the Commissioner of Public Health, which can only be granted if the sale or transfer is deemed beneficial for resident care or operational stability. A civil penalty of $1,000 per day is established for nursing homes that fail to provide the required information to DSS. The bill also specifies that starting February 15, 2027, nursing homes must report additional details about ownership entities, and failure to comply within 30 days may result in fines, which can be contested through an administrative hearing process.