WeVote
Log In

Bill

Bill

A 1867

Relates to requirements for a building owner to refuse to renew a lease under the real estate industry stabilization code

2025 Regular Session Introduced by Rodneyse Bichotte Hermelyn and 6 co-sponsors

Expands nursing home financial reporting to disclose ownership, related parties, and consolidated finances, and strengthens DOH enforcement.

AMENDED ON THIRD READING 1867A
0
WeVote Research Nonpartisan
Bill Summary · A 1867

Summary — A1867 / A1867A (Assembly bill)

Note on title discrepancy: The bill heading supplied refers to building-owner lease-renewal rules under a real estate code, but the bill text amends P.L.1977, c.237 (nursing home financial reporting). This summary is based on the bill text provided (nursing home reporting requirements). The legislative history shows the bill was amended on third reading (A1867A) on 2025-05-19; the amended text from that date was not included here.

Purpose

A1867 is intended to increase financial transparency and ownership disclosure for nursing homes operating in New Jersey by expanding the information required in annual financial reports filed with the New Jersey Department of Health (DOH). The bill also expands enforcement tools for DOH when reporting requirements are not met.

Key provisions and changes

Amends Section 2 and Section 4 of P.L.1977, c.237 (C.26:2H‑33 and C.26:2H‑35):

  • Annual filing timing: nursing homes must file an annual report with the State Commissioner of Health within 90 days after the end of the facility’s fiscal year (existing requirement retained).

  • Financial statements required (existing, clarified):

    • Balance sheet as of fiscal year end (assets, liabilities, capital, surplus, reserves, depreciation, etc.).
    • Statement of operations for the fiscal year (revenues, expenses, taxes, extraordinary items, credits/charges).

  • Expanded ownership and affiliation disclosures (new or expanded):

    • Name and address of the operator.
    • Name and address of any person who directly or indirectly beneficially owns interest in the land or the building.
    • Name and address of any lessor/lessee of the land or building, or of parties to any lease/sublease.
    • Lowers the reporting threshold for beneficial owners of mortgages/notes/deeds of trust/other obligations from 10% to 5% (applies to obligations secured by the land/building and to obligations that are recorded liabilities used to finance the purchase of the facility or related property/leases).
    • Adds disclosure of: persons who own or operate a sister company, holding company, or parent company of the facility; and persons who have ownership interest in a private equity pool related to the facility — including primary owners and members of boards of trustees/directors.

  • Additional corporate disclosures:

    • If an entity named is a partnership: list each partner.
    • If a named entity is a corporation (non‑publicly traded or nonbank): list officers, directors, principal shareholders, and controlling persons.
    • If a named entity is a public corporation or regulated bank: list principal executive officers, directors, principal stockholders, and controlling persons.

  • Related‑party transaction reporting:

    • If the nursing home paid or received $2,500 or more during the fiscal year in transactions with any named person or affiliates, describe the transactions, parties, relationships, and consideration exchanged.

  • Consolidated financial reporting (new): requires a consolidated financial statement covering all financial transactions within and outside the entire corporate organization, including vendor relationships and related financial filings.

  • Penalties and enforcement (amended/clarified):

    • Existing civil monetary penalty retained: $10–$100 per day for failure to file or willfully filing a false statement.
    • New administrative enforcement: the Department of Health may curtail admissions of new residents to a facility that fails to file required statements or willfully files false statements, until corrective action is taken.

  • Effective date (introduced version): the act would take effect 90 days after enactment.

Who is affected

  • All nursing homes operating in New Jersey (both proprietors/operators and the corporate entities that own/finance them).
  • Investors, lenders, mortgage/note holders, parent/sister/holding companies, private equity investors and board members associated with nursing homes.
  • Vendors and related parties whose transactions may be captured in consolidated reporting.
  • The Department of Health (expanded oversight and enforcement responsibilities).

Potential impacts

  • Increased transparency about nursing home ownership, financing, affiliated corporate structures, and related‑party transactions — particularly disclosures that reveal private equity involvement and lower the ownership reporting threshold to 5%.
  • Greater compliance and administrative burden on nursing home operators and their corporate entities to collect, consolidate, and report detailed corporate and financial information.
  • Stronger enforcement leverage for the DOH (monetary penalties and the ability to curtail new admissions), which could encourage timely and accurate reporting but also have operational consequences for facilities that fall out of compliance.
  • Potentially improved oversight of financial stability and conflicts of interest affecting long‑term care quality.

Legislative status / timeline

  • Introduced in the Assembly: 2024-01-09; initially referred to relevant committees (Health/Housing).
  • Reported by committee(s): 2025-02-11.
  • Advanced to third reading: 2025-02-13.
  • Amended on third reading as A1867A: 2025-05-19.
  • Companion bill in the Senate: S2134. Related prior session bill: A6276.

Note: This summary is based on the introduced bill text provided. The text of the A1867A amendments (5/19/2025) was not included; if you need a summary of the final amended language, please provide the A1867A text or request an update once the amended text is available.

Compiled from official sources — confirm details with the bill’s official record.

Sign in to ask a question.