Bill
SB 3025
Requires public disclosure of nursing facility ownership and limits asset withdrawals without approval, with penalties for noncompliance.
Jurisdiction: Rhode Island | Session: 2026 | Title: AN ACT RELATING TO HEALTH AND SAFETY — LICENSING OF HEALTHCARE FACILITIES
Sponsor: Senator Melissa A. Murray
Status: Introduced March 5, 2026; referred to Senate Health & Human Services. Committee recommended measure be held for further study (April 28, 2026).
Purpose and intent
- The bill seeks greater transparency in ownership and control of nursing facilities (a subset of healthcare facilities) and to curb the transfer or withdrawal of equity/assets that could affect facility operations and patient care. It adds public-facing disclosure requirements and imposes penalties for noncompliance and for improper withdrawal of assets.
Key provisions
1) Transparency of ownership in nursing facilities (Section 23-17-65)
- Requirement: Operators of nursing facilities must file with the Rhode Island Department of Health information detailing ownership interests.
- What must be disclosed:
- For each person with an ownership interest:
- Name and contact information
- Interest in land where the facility is located
- Interest in the building
- Interest in any mortgage, note, deed of trust, or other obligation secured by the land/building
- Interest as lessor/lessee in any lease or sub-lease of the land/building
- Ultimate ownership (the actual owner of land/building/mortgages/leases) and any lessee of the land or building
- The operator(s) of the nursing facility
- If any listed person is:
- A partnership or LLC: provide name and address of each partner/member
- A corporation (not traded on major exchanges or exempted banks/savings institutions): provide name/address of officers, directors, principal stockholders, and controlling persons
- A corporation traded on an exchange or exempt banks/savings entities: provide principal executive officers, directors, and principal stockholders
- Public access: The Department of Health must, upon request, make all documents and information obtained under this section available to the public.
- Definitions: “Operator” includes both the licensee and the complete ownership entity above the actual license-holding entity.
- Penalties for noncompliance:
- If ownership information is incomplete or knowingly false, penalties under existing sections (23-17-8 and 23-17-8.1) may apply after notice and a hearing.
- The director may require a financial audit of the facility at the operator’s expense.
- Possible fines: at least $1,000,000 or an amount equal to the value of assets diverted to undisclosed interest holders (the greater of the two).
2) Withdrawal of equity or assets (New section 23-17-12.12)
- Effective date: On or after July 1, 2026.
- Limitation: No nursing facility may withdraw equity or transfer assets that, in aggregate, exceed 3% of the facility’s total reported annual revenue for patient care services without prior written approval from the director.
- How revenue is measured: Based on the facility’s most recently filed annual BM-64 with the Department of Human Services, or another form prescribed by the director.
- Approval timeline: The director must decide on any such withdrawal request within 60 days of receipt of the written request.
- Notification: Requests must be submitted by certified mail using a form acceptable to the licensing agency.
3) Effective date
- The act takes effect upon passage.
Who is affected
- Nursing facility operators/licensees in Rhode Island.
- Individuals and entities with ownership or financial interests in nursing facilities (including land, buildings, mortgages, leases, etc.).
- Public access to disclosed ownership information (via the Department of Health).
- Nursing facilities seeking to withdraw equity or transfer assets, which now face explicit thresholds and a required director approval process.
Procedural and timeline notes
- Implementing dates:
- Ownership disclosure requirements effective upon passage (implied by Section 1).
- Equity/asset withdrawal restriction effective July 1, 2026 (Section 2).
- Director's decision on withdrawal requests within 60 days of receipt (Section 2).
- Administrative oversight by Rhode Island Department of Health; potential audits at operator expense and substantial monetary penalties for noncompliance or misrepresentation.
Overall impact
- Enhances transparency of ownership in nursing facilities.
- Creates a clear approval mechanism and financial safeguards limiting aggressive asset transfers or erosion of facility equity.
- Establishes strong penalties to deter undisclosed ownership interests and improper withdrawals, with public disclosure potentially informing stakeholders and policymakers.
Compiled from official sources — confirm details with the bill’s official record.
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