Connecticut 2025 Regular Session

Connecticut Senate Bill SB01332 Compare Versions

Version 1 (Old)

Version 2 (New)

Old	New		Differences
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3		-	LCO 1 of 4
	3	+	LCO No. 5074 1 of 4
4	4
5		-	General Assembly ~~Substitute~~ Bill No. 1332
	5	+	General Assembly Raised Bill No. 1332
6	6		January Session, 2025
	7	+	LCO No. 5074
	8	+
	9	+
	10	+	Referred to Committee on AGING
	11	+
	12	+
	13	+	Introduced by:
	14	+	(AGE)
	15	+
7	16
8	17
9	18
10	19		AN ACT CONCERNING NURSING HOME FINANCIAL
11	20		ACCOUNTABILITY AND NURSING HOME OWNERSHIP BY PRIVATE
12	21		EQUITY COMPANIES AND REAL ESTATE INVESTMENT TRUSTS.
13	22		Be it enacted by the Senate and House of Representatives in General
14	23		Assembly convened:
15	24
16	25		Section 1. (NEW) (Effective from passage) (a) As used in this section: 1
17	26		(1) "Indirect ownership interest" means an ownership interest in (A) 2
18	27		an entity that has an ownership interest in a nursing home, or (B) an 3
19	28		indirect owner of a nursing home; 4
20	29		(2) "Nursing home" has the same meaning as provided in section 19a-5
21	30		490 of the general statutes; 6
22	31		(3) "Operational control" means to: (A) Influence or direct the actions 7
23	32		or policies of any part of a nursing home; or (B) choose, appoint or 8
24	33		terminate a member of the board, manager, managing member, senior 9
25	34		employee, consultant or other individual or entity that participates in 10
26	35		the operational oversight of a nursing home; 11
27	36		(4) "Ownership interest" means possession of equity in capital, stock, 12
	37	+	Raised Bill No. 1332
	38	+
	39	+
	40	+
	41	+	LCO No. 5074 2 of 4
	42	+
28	43		profits or ownership of real estate on which a nursing home operates; 13
29	44		(5) "Private equity company" means a publicly traded or nonpublicly 14
30	45		traded entity that collects capital investments from individuals or 15
31		-	entities; and 16 Substitute Bill No. 1332
32		-
33		-
34		-	LCO 2 of 4
35		-
	46	+	entities; and 16
36	47		(6) "Real estate investment trust" has the same meaning as provided 17
37	48		in 26 USC 856. 18
38	49		(b) On and after October 1, 2025, a private equity company or real 19
39	50		estate investment trust shall not acquire or increase (1) any direct or 20
40		-	indirect ownership interest in a nursing home, or (2) any operational or 21
41		-	financial control over a nursing home. 22
42		-	Sec. 2. Subsection (a) of section 19a-491a of the general statutes is 23
43		-	repealed and the following is substituted in lieu thereof (Effective October 24
44		-	1, 2025): 25
45		-	(a) A person seeking a license to establish, conduct, operate or 26
46		-	maintain a nursing home shall provide the Department of Public Health 27
47		-	with the following information: 28
48		-	(1) (A) The name and business address of the owner and a statement 29
49		-	of whether the owner is an individual, partnership, corporation or other 30
50		-	legal entity; (B) the names of the officers, directors, trustees, or 31
51		-	managing and general partners of the owner, the names of persons 32
52		-	having a five per cent or greater ownership interest in the owner, and a 33
53		-	description of each such person's occupation with the owner; (C) if the 34
54		-	owner is a corporation which is incorporated in another state, a 35
55		-	certificate of good standing from the secretary of state of the state of 36
56		-	incorporation; and (D) if a private equity company or real estate 37
57		-	investment trust owns any portion of the business, evidence of 38
58		-	compliance with section 1 of this act and any information regarding 39
59		-	such company or trust required to be disclosed (i) on federal Form CMS-40
60		-	855a, and (ii) in accordance with 42 CFR 424.516 or 42 CFR 455.104, as 41
61		-	amended from time to time; 42
62		-	(2) A description of the relevant business experience of the owner and 43
63		-	of the administrator of the nursing home and evidence that the 44
64		-	administrator has a license issued pursuant to section 19a-514; 45
65		-	(3) Affidavits signed by the owner, any of the persons described in 46
66		-	subdivision (1) of this subsection, the administrator, assistant 47 Substitute Bill No. 1332
	51	+	indirect ownership interest the private equity company or real estate 21
	52	+	investment trust has in a nursing home, or (2) any operational or 22
	53	+	financial control the private equity company or real estate investment 23
	54	+	trust has over a nursing home. 24
	55	+	Sec. 2. Subsection (a) of section 19a-491a of the general statutes is 25
	56	+	repealed and the following is substituted in lieu thereof (Effective October 26
	57	+	1, 2025): 27
	58	+	(a) A person seeking a license to establish, conduct, operate or 28
	59	+	maintain a nursing home shall provide the Department of Public Health 29
	60	+	with the following information: 30
	61	+	(1) (A) The name and business address of the owner and a statement 31
	62	+	of whether the owner is an individual, partnership, corporation or other 32
	63	+	legal entity; (B) the names of the officers, directors, trustees, or 33
	64	+	managing and general partners of the owner, the names of persons 34
	65	+	having a five per cent or greater ownership interest in the owner, and a 35
	66	+	description of each such person's occupation with the owner; (C) if the 36
	67	+	owner is a corporation which is incorporated in another state, a 37
	68	+	certificate of good standing from the secretary of state of the state of 38
	69	+	incorporation; and (D) if a private equity company or real estate 39
	70	+	investment trust owns any portion of the business, any information 40
	71	+	regarding such company or trust required to be disclosed (i) on federal 41
	72	+	Form CMS-855a, and (ii) in accordance with 42 CFR 424.516 or 42 CFR 42
	73	+	Raised Bill No. 1332
67	74
68	75
69		-	LCO 3 of 4
70	76
71		-	administrator, the medical director, the director of nursing and assistant 48
72		-	director of nursing disclosing any matter in which such person has been 49
73		-	convicted of a felony, as defined in section 53a-25, or has pleaded nolo 50
74		-	contendere to a felony charge, or has been held liable or enjoined in a 51
75		-	civil action by final judgment, if the felony or civil action involved fraud, 52
76		-	embezzlement, fraudulent conversion or misappropriation of property; 53
77		-	or is subject to an injunction or restrictive or remedial order of a court of 54
78		-	record at the time of application, within the past five years has had any 55
79		-	state or federal license or permit suspended or revoked as a result of an 56
80		-	action brought by a governmental agency or department, arising out of 57
81		-	or relating to health care business activity, including, but not limited to, 58
82		-	actions affecting the operation of a nursing home, retirement home, 59
83		-	residential care home or any facility subject to sections 17b-520 to 17b-60
84		-	535, inclusive, or a similar statute in another state or country; 61
85		-	(4) (A) A statement as to whether or not the owner is, or is affiliated 62
86		-	with, a religious, charitable or other nonprofit organization; (B) the 63
87		-	extent of the affiliation, if any; (C) the extent to which the affiliate 64
88		-	organization will be responsible for the financial obligations of the 65
89		-	owner; and (D) the provision of the Internal Revenue Code of 1986, or 66
90		-	any subsequent corresponding internal revenue code of the United 67
91		-	States, as from time to time amended, if any, under which the owner or 68
92		-	affiliate is exempt from the payment of income tax; 69
93		-	(5) The location and a description of other health care facilities of the 70
94		-	owner, existing or proposed, and, if proposed, the estimated completion 71
95		-	date or dates and whether or not construction has begun; 72
96		-	(6) Audited and certified financial statements of the owner, including 73
97		-	(A) a balance sheet as of the end of the most recent fiscal year, and (B) 74
98		-	income statements for the most recent fiscal year of the owner or such 75
99		-	shorter period of time as the owner shall have been in existence; and 76
100		-	(7) If the operation of the nursing home has not yet commenced, a 77
101		-	statement of the anticipated source and application of the funds used or 78
102		-	to be used in the purchase or construction of the home, including: 79 Substitute Bill No. 1332
	77	+	LCO No. 5074 3 of 4
	78	+
	79	+	455.104, as amended from time to time; 43
	80	+	(2) A description of the relevant business experience of the owner and 44
	81	+	of the administrator of the nursing home and evidence that the 45
	82	+	administrator has a license issued pursuant to section 19a-514; 46
	83	+	(3) Affidavits signed by the owner, any of the persons described in 47
	84	+	subdivision (1) of this subsection, the administrator, assistant 48
	85	+	administrator, the medical director, the director of nursing and assistant 49
	86	+	director of nursing disclosing any matter in which such person has been 50
	87	+	convicted of a felony, as defined in section 53a-25, or has pleaded nolo 51
	88	+	contendere to a felony charge, or has been held liable or enjoined in a 52
	89	+	civil action by final judgment, if the felony or civil action involved fraud, 53
	90	+	embezzlement, fraudulent conversion or misappropriation of property; 54
	91	+	or is subject to an injunction or restrictive or remedial order of a court of 55
	92	+	record at the time of application, within the past five years has had any 56
	93	+	state or federal license or permit suspended or revoked as a result of an 57
	94	+	action brought by a governmental agency or department, arising out of 58
	95	+	or relating to health care business activity, including, but not limited to, 59
	96	+	actions affecting the operation of a nursing home, retirement home, 60
	97	+	residential care home or any facility subject to sections 17b-520 to 17b-61
	98	+	535, inclusive, or a similar statute in another state or country; 62
	99	+	(4) (A) A statement as to whether or not the owner is, or is affiliated 63
	100	+	with, a religious, charitable or other nonprofit organization; (B) the 64
	101	+	extent of the affiliation, if any; (C) the extent to which the affiliate 65
	102	+	organization will be responsible for the financial obligations of the 66
	103	+	owner; and (D) the provision of the Internal Revenue Code of 1986, or 67
	104	+	any subsequent corresponding internal revenue code of the United 68
	105	+	States, as from time to time amended, if any, under which the owner or 69
	106	+	affiliate is exempt from the payment of income tax; 70
	107	+	(5) The location and a description of other health care facilities of the 71
	108	+	owner, existing or proposed, and, if proposed, the estimated completion 72
	109	+	date or dates and whether or not construction has begun; 73
	110	+	Raised Bill No. 1332
103	111
104	112
105		-	LCO 4 of 4
106	113
107		-	(A) An estimate of such costs as financing expense, legal expense, 80
108		-	land costs, marketing costs and other similar costs which the owner 81
109		-	expects to incur or become obligated for prior to the commencement of 82
110		-	operations; and 83
111		-	(B) A description of any mortgage loan or any other financing 84
112		-	intended to be used for the financing of the nursing home, including the 85
113		-	anticipated terms and costs of such financing. 86
	114	+	LCO No. 5074 4 of 4
	115	+
	116	+	(6) Audited and certified financial statements of the owner, including 74
	117	+	(A) a balance sheet as of the end of the most recent fiscal year, [and] (B) 75
	118	+	income statements for the most recent fiscal year of the owner or such 76
	119	+	shorter period of time as the owner shall have been in existence, and (C) 77
	120	+	evidence demonstrating compliance with the provisions of section 1 of 78
	121	+	this act; and 79
	122	+	(7) If the operation of the nursing home has not yet commenced, a 80
	123	+	statement of the anticipated source and application of the funds used or 81
	124	+	to be used in the purchase or construction of the home, including: 82
	125	+	(A) An estimate of such costs as financing expense, legal expense, 83
	126	+	land costs, marketing costs and other similar costs which the owner 84
	127	+	expects to incur or become obligated for prior to the commencement of 85
	128	+	operations; and 86
	129	+	(B) A description of any mortgage loan or any other financing 87
	130	+	intended to be used for the financing of the nursing home, including the 88
	131	+	anticipated terms and costs of such financing. 89
114	132		This act shall take effect as follows and shall amend the following
115	133		sections:
116	134
117	135		Section 1 from passage New section
118	136		Sec. 2 October 1, 2025 19a-491a(a)
119	137
120		-	Statement of Legislative Commissioners:
121		-	Section 1(b) was redrafted for clarity, and, in Section 2(a), "evidence of
122		-	compliance with section 1 of this act" was moved from Subdiv. (6) to
123		-	Subdiv. (1)(D) for internal consistency.
	138	+	Statement of Purpose:
	139	+	To prohibit private equity companies and real estate investment trusts
	140	+	from acquiring or increasing (1) any direct or indirect ownership interest
	141	+	in a nursing home, and (2) any operational or financial control in a
	142	+	nursing home.
124	143
125		-	AGE Joint Favorable Subst. -LCO
	144	+	[Proposed deletions are enclosed in brackets. Proposed additions are indicated by underline, except
	145	+	that when the entire text of a bill or resolution or a section of a bill or resolution is new, it is not
	146	+	underlined.]
126	147