The proposed bill establishes the "Health Care and Social Services Transaction Review and Significant Equity Investor Disclosure Act," which aims to enhance transparency and oversight regarding ownership and control changes in health care and social service entities in the state. It requires parties involved in a material change involving a covered care entity to provide written notice to the Department of Health and the Attorney General at least 60 days prior to the effective date of the change. This notice must include identification of all parties and controlling persons, a description of the transaction structure, post-transaction ownership and governance structure, and identification of any significant equity investors.

The bill defines key terms such as "control," "covered care entity," "management services organization," "material change," "private equity company," "provider organization," and "significant equity investor." For material changes involving a significant equity investor, the Department of Health, in consultation with the Attorney General and applicable licensing agencies, may require additional information, including capital structure, ownership and management structure, sources and uses of transaction financing, audited financial statements, and management services agreements. The departments may also require periodic post-transaction reporting for up to five years to assess impacts on service availability, cost, workforce stability, and continuity of care.

Confidential commercial or financial information submitted under this act will be protected from public disclosure, although a public summary may be issued that omits such information. Non-compliance with the provisions of this act may result in civil penalties of up to $10,000 per day, enforceable by the Attorney General. The act is designed to coordinate with existing laws, ensuring it does not modify, limit, or supersede the Hospital Conversions Act or other relevant regulations. The act will take effect upon passage.