Rhode Island 2025 Regular Session

Rhode Island Senate Bill S0789 Compare Versions

Only one version of the bill is available at this time.

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5	5	2025 -- S 0789
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7	7	LC001426
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9	9	S T A T E O F R H O D E I S L A N D
10	10	IN GENERAL ASSEMBLY
11	11	JANUARY SESSION, A.D. 2025
12	12	____________
13	13
14	14	A N A C T
15	15	RELATING TO HEALTH AND SAFETY -- LICENSING OF HEALTHCARE FACILITIES
16	16	Introduced By: Senators Murray, Valverde, DiPalma, Bissaillon, and Urso
17	17	Date Introduced: March 14, 2025
18	18	Referred To: Senate Health & Human Services
19	19	(Dept. of Health)
20	20
21	21	It is enacted by the General Assembly as follows:
22	22	SECTION 1. Section 23-17-65 of the General Laws in Chapter 23-17 entitled "Licensing 1
23	23	of Healthcare Facilities" is hereby amended to read as follows: 2
24	24	23-17-65. Transparency of ownership in healthcare facilities. 3
25	25	(a) Any operator or operators of a nursing facility shall file with the department of health 4
26	26	information of ownership including, but not limited to, the following: 5
27	27	(1) The name, address, and a description of the interest held by each of the following 6
28	28	persons: 7
29	29	(i) Any person who, directly or indirectly, beneficially owns any interest in the land on 8
30	30	which the facility is located; 9
31	31	(ii) Any person who, directly or indirectly, beneficially owns any interest in the building 10
32	32	in which the facility is located; 11
33	33	(iii) Any person who, directly or indirectly, beneficially owns any interest in any mortgage, 12
34	34	note, deed of trust, or other obligation secured, in whole or in part, by the land on which or building 13
35	35	in which the facility is located; 14
36	36	(iv) Any person who, directly or indirectly, has any interest as lessor or lessee in any lease 15
37	37	or sub-lease of the land on which or the building in which the facility is located; 16
38	38	(v) Any person who is the ultimate and actual owner of the land, building, mortgages, and 17
39	39	leases of the nursing facility and any lessee of the land or building; and 18
40	40	(vi) The operator or operators of the nursing facility. 19
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44	44	(2) If any person named in subsection (a)(1) of this section is a partnership or limited 1
45	45	liability company, then the name and address of each partner or member. 2
46	46	(3) If any person named in subsection (a)(1) of this section is a corporation, other than a 3
47	47	corporation whose shares are traded on a national securities exchange or are regularly quoted in an 4
48	48	over-the-counter market or which is a commercial bank, savings bank, or savings and loan 5
49	49	association, then the name and address of each officer, director, stockholder and, if known, each 6
50	50	principal stockholder and controlling person of such corporation. 7
51	51	(4) If any corporation named in subsection (a)(1) of this section is a corporation whose 8
52	52	shares are traded on a national securities exchange or are regularly quoted in an over-the-counter 9
53	53	market or which is a commercial bank, savings bank, or savings and loan association, then the name 10
54	54	and address of the principal executive officers and each director and, if known, each principal 11
55	55	stockholder of such corporation. 12
56	56	(b) In order to promote greater transparency, the department of health shall, upon request, 13
57	57	furnish to the public all documents and information received pursuant to this section. 14
58	58	(c) As used in this section, the term “operator” means the licensee and also includes the 15
59	59	complete ownership entity above the actual entity holding the license. 16
60	60	(d) Any operator that fails to file, in whole or in part, the ownership information required 17
61	61	in accordance with subsection (a) of this section or willingly or knowingly files false or incorrect 18
62	62	ownership information, may, after notice and opportunity for a hearing, be subject to the penalties 19
63	63	set forth in §§ 23-17-8 and 23-17-8.1. The director, in his or her discretion, may require that a 20
64	64	financial audit be conducted of the nursing facility at the operator’s expense and may impose a fine 21
65	65	of the greater of one million dollars ($1,000,000) or the amount of facility assets diverted to 22
66	66	undisclosed interest holders. 23
67	67	SECTION 2. Chapter 23-17 of the General Laws entitled "Licensing of Healthcare 24
68	68	Facilities" is hereby amended by adding thereto the following section: 25
69	69	23-17-12.12. Withdrawal of equity or assets.. 26
70	70	(a) On or after July 1, 2025, no nursing facility licensed under this chapter may withdraw 27
71	71	equity or transfer assets which, in the aggregate, exceed three percent (3%) of such facility’s total 28
72	72	reported annual revenue for patient care services, without prior written approval of the director. 29
73	73	Notification shall be made in a form acceptable to the licensing agency by certified mail. Total 30
74	74	reported annual revenue shall be based on the facility’s most recently filed annual BM-64 with the 31
75	75	department of human services, or alternative form prescribed by the director. 32
76	76	(b) The director shall make a determination to approve or disapprove a request for 33
77	77	withdrawal of equity or assets under this section within sixty (60) days of the date of receipt of the 34
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81	81	written request from the facility. 1
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83	83	SECTION 3. This act shall take effect upon passage. 3
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90	90	EXPLANATION
91	91	BY THE LEGISLATIVE COUNCIL
92	92	OF
93	93	A N A C T
94	94	RELATING TO HEALTH AND SAFETY -- LICENSING OF HEALTHCARE FAC ILITIES
95	95	***
96	96	This act would require the disclosure of the transfer of certain assets of healthcare facilities 1
97	97	and would provide penalties for failing to file healthcare facility ownership information. 2
98	98	This act would take effect upon passage. 3
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