This bill seeks to regulate the acquisition of nursing homes and assisted living facilities by private equity companies in Minnesota. It redefines "controlling person" to include individuals with ownership interests in privately held corporations that collect capital investments, particularly when no individual holds at least a five percent ownership interest. The legislation requires private equity companies to provide detailed information and an affidavit to the attorney general before any acquisition, and mandates that they obtain the attorney general's approval, which is contingent on ensuring that the acquisition will not negatively impact residents' health, safety, or quality of services.

Additionally, the bill establishes a timeline for the approval process, allowing for conditional approvals in urgent situations, and requires that within 90 days of a conditional approval, the attorney general must either grant permanent approval or withdraw it, leading to the appointment of a receiver if necessary. It prohibits private equity companies from interfering with healthcare professionals' judgments and mandates that they spend a minimum percentage of public funds on direct resident care. The bill also requires detailed reporting on financial status and impacts on resident care, with the attorney general tasked with investigating these acquisitions and reporting findings to legislative committees by February 15, 2026. An appropriation is included to fund this investigation, highlighting the state's commitment to monitoring the effects of private equity in the healthcare sector.

Statutes affected:
Introduction: 144A.01, 144G.08