Senate File 533 - Introduced SENATE FILE 533 BY CELSI A BILL FOR An Act prohibiting certain changes of ownership of a previously 1 licensed nursing facility. 2 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 3 TLSB 1476XS (2) 91 dg/ko
S.F. 533 Section 1. Section 135C.7A, Code 2025, is amended by adding 1 the following new subsection: 2 NEW SUBSECTION . 6A. The department shall not approve the 3 change of ownership of a previously licensed nursing facility 4 if the person seeking to obtain ownership of the nursing 5 facility is any of the following: 6 a. A private equity fund as defined in 12 U.S.C. 7 1851(h)(2), as amended. 8 b. Majority owned by a private equity fund. 9 c. An affiliate of a private equity fund. 10 d. A real estate investment trust as defined in 26 U.S.C. 11 856(a), as amended. 12 e. Majority owned by a real estate investment trust. 13 f. An affiliate of a real estate investment trust. 14 EXPLANATION 15 The inclusion of this explanation does not constitute agreement with 16 the explanations substance by the members of the general assembly. 17 Under current law, any change in ownership of a previously 18 licensed nursing facility is subject to approval by the 19 department of inspections, appeals, and licensing (DIAL). This 20 bill prohibits DIAL from approving any change of ownership of 21 a nursing facility if the person seeking to obtain ownership 22 is, is owned in majority by, or is an affiliate of, a private 23 equity fund or a real estate investment trust. 24 -1- LSB 1476XS (2) 91 dg/ko 1/ 1