Substitute Senate Bill No. 125, now Public Act No. 26-103, mandates that nursing homes report specific ownership information regarding investment entities annually, starting February 15, 2027. This includes details such as the names and addresses of investment entities with a beneficial ownership interest of five percent or more, the identities of their officers and partners, and various financial documents. Additionally, nursing homes are required to secure a surety bond or similar security equal to ninety days of operating costs by July 1, 2028, and maintain full governance control over their assets and activities by February 1, 2028. They must also attest annually that no investment entity controls resident health, safety, or care.

The bill introduces civil penalties for non-compliance, including a $1,000 daily fine for failing to provide required information and up to $2,000 for failing to submit the necessary attestation. Furthermore, the Commissioner of Social Services is tasked with identifying security instruments to guarantee nursing home operating costs and will report on the quality of care in nursing homes with investment entity ownership compared to other ownership structures by February 15, 2028. The bill also allows nursing homes to apply for a one-year waiver from governance control requirements if compliance is anticipated to be unfeasible, provided it benefits resident care.