House Bill No. 317, known as the "Hospital Lease Accountability Act," aims to establish regulations and penalties for lessor entities and lessee facilities in the healthcare sector. The bill defines key terms, including "lessee facility" as a hospital licensed to provide healthcare services and "lessor entity" as a for-profit, publicly traded real estate investment trust that leases such hospitals. It outlines specific prohibited acts that indicate financial distress for a lessee facility, such as significant reductions in services, failure to pay employees for 30 days, or filing for bankruptcy. In such cases, the lessor entity is required to provide sufficient funds for continued operation, reimburse the state for any emergency funds used, and disclose detailed financial information from the previous five years.

Furthermore, the bill holds board members and executive officers of the lessor entity personally liable for financial distress caused by unreasonable lease terms or financial extractions, with penalties including repayment of funds, civil penalties up to $250,000 per individual, and disqualification from serving on healthcare boards for ten years. It prohibits lessee facility operators from using federal or state emergency funds for lease payments and allows the attorney general to investigate violations and bring civil actions against lessor entities. The bill also provides immunity for individuals reporting misconduct and outlines judicial proceedings related to these matters, including the venue for civil actions.