2024 -- S 2818

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LC004945

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     STATE OF RHODE ISLAND

IN GENERAL ASSEMBLY

JANUARY SESSION, A.D. 2024

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A N   A C T

RELATING TO HEALTH AND SAFETY -- LICENSING OF HEALTHCARE FACILITIES

     Introduced By: Senator Joshua Miller

     Date Introduced: March 22, 2024

     Referred To: Senate Health & Human Services

     (Dept. of Health)

It is enacted by the General Assembly as follows:

     SECTION 1. Section 23-17-65 of the General Laws in Chapter 23-17 entitled "Licensing

of Healthcare Facilities" is hereby amended to read as follows:

     23-17-65. Transparency of ownership in healthcare facilities.

     (a) Any operator or operators of a nursing facility shall file with the department of health

information of ownership including, but not limited to, the following:

     (1) The name, address, and a description of the interest held by each of the following

persons:

     (i) Any person who, directly or indirectly, beneficially owns any interest in the land on

which the facility is located;

     (ii) Any person who, directly or indirectly, beneficially owns any interest in the building

in which the facility is located;

     (iii) Any person who, directly or indirectly, beneficially owns any interest in any mortgage,

note, deed of trust, or other obligation secured, in whole or in part, by the land on which or building

in which the facility is located;

     (iv) Any person who, directly or indirectly, has any interest as lessor or lessee in any lease

or sub-lease of the land on which or the building in which the facility is located;

     (v) Any person who is the ultimate and actual owner of the land, building, mortgages, and

leases of the nursing facility and any lessee of the land or building; and

     (vi) The operator or operators of the nursing facility.

     (2) If any person named in subsection (a)(1) of this section is a partnership or limited

liability company, then the name and address of each partner or member.

     (3) If any person named in subsection (a)(1) of this section is a corporation, other than a

corporation whose shares are traded on a national securities exchange or are regularly quoted in an

over-the-counter market or which is a commercial bank, savings bank, or savings and loan

association, then the name and address of each officer, director, stockholder and, if known, each

principal stockholder and controlling person of such corporation.

     (4) If any corporation named in subsection (a)(1) of this section is a corporation whose

shares are traded on a national securities exchange or are regularly quoted in an over-the-counter

market or which is a commercial bank, savings bank, or savings and loan association, then the name

and address of the principal executive officers and each director and, if known, each principal

stockholder of such corporation.

     (b) In order to promote greater transparency, the department of health shall, upon request,

furnish to the public all documents and information received pursuant to this section.

     (c) As used in this section, the term “operator” means the licensee and also includes the

complete ownership entity above the actual entity holding the license.

     (d) Any operator that fails to file, in whole or in part, the ownership information required

in accordance with subsection (a) of this section or willingly or knowingly files false or incorrect

ownership information, may, after notice and opportunity for a hearing, be subject to the penalties

set forth in §§ 23-17-8 and 23-17-8.1. The director, in the directors discretion, may require that a

financial audit be conducted of the nursing facility at the operator’s expense and may impose a fine

of the greater of one million dollars ($1,000,000) or the amount of facility assets diverted to

undisclosed interest holders.

     SECTION 2. Chapter 23-17 of the General Laws entitled "Licensing of Healthcare

Facilities" is hereby amended by adding thereto the following section:

     23-17-12.12. Withdrawal of equity or assets.

     (a) On or after July 1, 2024, no nursing facility licensed under this chapter may withdraw

equity or transfer assets which, in the aggregate, exceed three percent (3%) of such facility’s total

reported annual revenue for patient care services, based on the facility’s most recently filed annual

BM-64 with the department of human services, without prior approval from the director. A request

for approval shall be made in a form acceptable to the licensing agency.

     (b) The director shall make a determination to approve or disapprove a request for

withdrawal of equity or assets under this section within sixty (60) days of the date of receipt of the

written request from the facility.

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     SECTION 3. This act shall take effect upon passage.

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EXPLANATION

BY THE LEGISLATIVE COUNCIL

OF

A N   A C T

RELATING TO HEALTH AND SAFETY -- LICENSING OF HEALTHCARE FACILITIES

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     This act would require the disclosure of the transfer of certain assets of healthcare facilities

and would provide penalties for failing to file healthcare facility ownership information.

     This act would take effect upon passage.

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