Read the full stored bill text
Senate
File
414
-
Introduced
SENATE
FILE
414
BY
WEINER
,
DONAHUE
,
DOTZLER
,
WINCKLER
,
CELSI
,
ZIMMER
,
TOWNSEND
,
STAED
,
PETERSEN
,
and
QUIRMBACH
A
BILL
FOR
An
Act
relating
to
the
review
and
approval
by
the
department
of
1
inspections,
appeals,
and
licensing
of
housing
and
health
2
care
facility
acquisitions
by
private
equity
firms.
3
BE
IT
ENACTED
BY
THE
GENERAL
ASSEMBLY
OF
THE
STATE
OF
IOWA:
4
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414
Section
1.
NEW
SECTION
.
10A.110
Private
equity
firm
1
acquisitions
——
housing
——
health
care
facilities.
2
1.
As
used
in
this
section,
unless
the
context
otherwise
3
requires:
4
a.
“Acquisition”
means
a
transaction
in
which
an
entity
5
gains
the
ability
to
direct
or
influence
the
management
and
6
policies
of
housing
or
a
health
care
facility,
including
but
7
not
limited
to
through
the
ownership
of
voting
securities,
8
real
estate
leasing,
or
by
a
contract
other
than
a
commercial
9
contract
for
goods
or
nonmanagement
services.
10
b.
“Health
care
facility”
means
a
hospital
as
defined
in
11
section
135B.1,
a
health
care
facility
as
defined
in
section
12
135C.1,
a
subacute
care
facility
as
defined
in
section
135G.1,
13
a
psychiatric
institution
as
defined
in
section
135H.1,
a
14
hospice
program
as
defined
in
section
135J.1,
or
an
ambulatory
15
surgical
center
as
defined
in
section
135R.1.
16
c.
“Housing”
means
a
structure
or
part
of
a
structure
that
17
is
used
as
a
home,
residence,
or
sleeping
place
and
includes
18
the
property
on
which
the
structure
lies.
“Housing”
includes
a
19
manufactured
home
as
defined
in
section
414.28.
20
d.
“Private
equity
firm”
means
an
investor
or
group
of
21
investors
who
primarily
engage
in
the
raising
or
returning
22
of
capital
and
who
invest,
develop,
or
dispose
of
specified
23
assets.
“Private
equity
firm”
does
not
mean
a
person
who
24
contributes
or
promises
to
contribute
moneys
to
a
private
25
equity
firm,
but
does
not
otherwise
participate
in
or
have
26
control
over
the
management
of
the
private
equity
firm
or
the
27
private
equity
firm’s
assets.
28
2.
The
department
shall
review
any
acquisition
by
a
private
29
equity
firm.
30
3.
The
department
shall
not
approve
an
acquisition
unless
31
the
department
determines
that
the
acquisition
is
in
the
public
32
interest
after
considering
whether
the
acquisition
has
the
33
potential
to
reduce
access
to
quality,
affordable
housing
34
or
health
care
facilities.
The
department
shall
not
grant
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414
approval
to
an
acquisition
if
the
department
finds
that
the
1
acquisition
is
likely
to
reduce
access
to
quality,
affordable
2
housing
or
health
care
services.
3
4.
A
private
equity
firm
shall
not
complete
an
acquisition
4
prior
to
receiving
approval
from
the
department.
A
private
5
equity
firm
shall
provide
the
department
with
notice
sixty
days
6
prior
to
the
intended
acquisition.
7
5.
Upon
request,
a
private
equity
firm
shall
provide
to
the
8
department
any
of
the
following:
9
a.
The
terms
of
the
acquisition
agreement.
10
b.
Any
plan
to
close
a
health
care
facility
or
reduce
the
11
health
care
facility’s
workforce
or
health
care
services.
12
c.
Any
plan
to
expand
a
health
care
facility,
the
health
13
care
facility’s
workforce,
or
health
care
services.
14
d.
Any
plan
to
alter
the
current
listed
purchase
price
for
15
housing,
rental,
or
property
prices.
16
e.
The
latest
property
assessment
of
the
housing
or
health
17
care
facility
property.
18
f.
Audited
and
unaudited
financial
statements
from
each
19
entity
involved
in
the
acquisition
and
tax
filings
for
each
20
entity
involved
in
the
acquisition
from
the
preceding
five
21
fiscal
years.
22
g.
Any
other
information
relevant
to
evaluating
the
23
acquisition.
24
6.
The
department
shall
post
notice
of
any
pending
25
acquisition
on
the
department’s
internet
site
and
allow
for
26
public
comment
on
the
acquisition.
The
department
may
hold
27
public
forums
to
obtain
input
on
a
proposed
acquisition
from
28
persons
who
may
be
impacted.
29
7.
The
department
may
initiate
an
action
to
seek
an
30
injunction
to
restrain
any
violations
of
this
section.
31
8.
The
department
may
adopt
rules
pursuant
to
chapter
17A
to
32
implement
this
section.
33
EXPLANATION
34
The
inclusion
of
this
explanation
does
not
constitute
agreement
with
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414
the
explanation’s
substance
by
the
members
of
the
general
assembly.
1
This
bill
requires
the
department
of
inspections,
appeals,
2
and
licensing
(DIAL)
to
review
any
acquisition
of
housing
or
3
health
care
facilities
by
a
private
equity
firm.
The
bill
4
prohibits
a
private
equity
firm
from
completing
an
acquisition
5
without
approval
from
DIAL
and
requires
a
private
equity
firm
6
to
give
notice
to
DIAL
of
the
intended
acquisition
60
days
7
before
the
intended
acquisition.
The
bill
prohibits
DIAL
8
from
approving
an
acquisition
unless
DIAL
determines
that
9
the
acquisition
is
in
the
public
interest,
which
means
the
10
acquisition
must
not
be
likely
to
reduce
access
to
quality,
11
affordable
housing
or
health
care
services.
The
bill
requires
12
a
private
equity
firm
to
provide
information
concerning
the
13
acquisition
to
DIAL
upon
request.
14
The
bill
provides
that
DIAL
must
post
notice
of
any
pending
15
acquisition
on
DIAL’s
internet
site
and
allow
for
public
16
comment.
DIAL
may
also
hold
public
forums
on
a
pending
17
acquisition.
18
The
bill
allows
DIAL
to
seek
an
injunction
to
enforce
the
19
bill’s
provisions.
20
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