Read the full stored bill text
Senate
File
535
-
Introduced
SENATE
FILE
535
BY
CELSI
A
BILL
FOR
An
Act
relating
to
nursing
facility
change
of
ownership
1
applications.
2
BE
IT
ENACTED
BY
THE
GENERAL
ASSEMBLY
OF
THE
STATE
OF
IOWA:
3
TLSB
1484XS
(2)
91
dg/ko
S.F.
535
Section
1.
Section
135C.7A,
subsection
1,
unnumbered
1
paragraph
1,
Code
2025,
is
amended
to
read
as
follows:
2
In
addition
to
the
requirements
of
section
135C.7
,
the
3
change
of
ownership
of
a
previously
licensed
nursing
facility
4
shall
be
subject
to
approval
by
the
department
through
5
application
for
a
license.
The
department
shall
review
each
6
change
of
ownership
application
to
determine
the
potential
7
impact
on
the
health,
safety,
welfare,
and
rights
of
the
8
nursing
facility’s
residents,
and
to
ensure
that
a
new
owner
9
will
guarantee
the
safety
of
and
attain
the
highest
practicable
10
physical,
mental,
and
social
well-being
for
each
resident.
An
11
applicant
for
a
nursing
facility
license
under
this
section
12
shall
submit
all
of
the
following
information
to
the
department
13
with
the
license
application:
14
Sec.
2.
Section
135C.7A,
subsection
1,
paragraph
c,
Code
15
2025,
is
amended
by
adding
the
following
new
subparagraph:
16
NEW
SUBPARAGRAPH
.
(4)
Information
and
documentation
that
17
verifies
the
applicant
has
sufficient
cash
or
liquid
assets
to
18
maintain
the
nursing
facility’s
operations
for
a
period
of
not
19
less
than
twelve
months.
20
Sec.
3.
Section
135C.7A,
subsection
1,
paragraph
d,
Code
21
2025,
is
amended
to
read
as
follows:
22
d.
Information
and
documentation
related
to
the
applicant’s
23
regulatory
history
with
any
other
state
,
federal,
or
licensing
24
jurisdiction
,
including
but
not
limited
to
state
or
federal
25
agency
actions,
as
verified
by
the
applicant
,
which
.
The
26
information
shall
include
but
is
not
limited
to
all
of
the
27
following:
28
(1)
Information
and
documentation
related
to
any
complaint,
29
allegation,
corrective
plan,
notice
of
noncompliance,
or
30
investigation
concerning
the
applicant
in
any
other
state
or
31
licensing
jurisdiction
.
32
(2)
Affirmation
that
the
applicant
has
not
voluntarily
33
surrendered
a
license
while
under
investigation
in
any
other
34
state
or
licensing
jurisdiction
.
35
-1-
LSB
1484XS
(2)
91
dg/ko
1/
4
S.F.
535
(3)
Supporting
documentation
regarding
the
resolution
1
of
any
disciplinary
action
or
complaint,
allegation,
or
2
investigation
against
the
applicant
in
any
other
state
or
3
licensing
jurisdiction
.
4
(4)
Affirmation
that
no
other
nursing
facility
owned
or
5
operated
by
the
applicant
has
been
subject
to
operation
by
a
6
court-appointed
receiver
or
temporary
manager.
7
(5)
Information
and
documentation
related
to
any
complaint
8
or
citation
for
a
violation
of
state
or
federal
worker
9
protection
laws,
any
complaint
or
violation
of
state
or
federal
10
antidiscrimination
laws,
any
complaint
or
violation
of
29
11
U.S.C.
§201,
et
seq.,
or
similar
laws,
or
any
whistleblower
12
complaints
against
the
applicant.
13
Sec.
4.
Section
135C.7A,
subsection
1,
Code
2025,
is
amended
14
by
adding
the
following
new
paragraphs:
15
NEW
PARAGRAPH
.
e.
Information
and
documentation
related
to
16
any
reduction
in
wages
or
benefits
for
health
workers
employed
17
by
the
applicant,
or
by
any
entity
owned
at
least
in
part
by
the
18
applicant,
during
the
thirty-six
consecutive
months
immediately
19
preceding
the
date
the
applicant
submits
the
application.
20
NEW
PARAGRAPH
.
f.
Information
and
documentation
related
21
to
any
investigation
of
the
applicant’s
violation
of
state
22
or
federal
Medicaid
or
Medicare
law,
and
the
outcome
of
each
23
investigation.
24
NEW
PARAGRAPH
.
g.
Information
and
documentation
related
to
25
any
investigation
of
insurance
or
other
fraud
committed
by
the
26
applicant
and
the
outcome
of
each
investigation.
27
NEW
PARAGRAPH
.
h.
A
record
of
each
nursing
facility
change
28
of
ownership
in
this
state
or
any
other
state
in
which
the
29
applicant
was
the
seller
or
purchaser
of
a
nursing
facility.
30
NEW
PARAGRAPH
.
i.
A
list
identifying
each
nursing
facility
31
the
applicant
has
closed
or
sold.
The
list
shall
also
identify
32
how
long
the
applicant
owned
each
nursing
facility
prior
to
its
33
closure
or
sale.
34
NEW
PARAGRAPH
.
j.
Any
information
and
documentation
that
35
-2-
LSB
1484XS
(2)
91
dg/ko
2/
4
S.F.
535
the
department
determines
is
relevant
for
evaluating
the
impact
1
the
proposed
change
in
ownership
will
have
on
the
provision
of
2
health
care,
the
quality
of
health
care,
and
the
safety
of
each
3
resident
at
the
nursing
facility.
4
Sec.
5.
Section
135C.7A,
subsection
3,
Code
2025,
is
amended
5
by
striking
the
subsection.
6
Sec.
6.
Section
135C.7A,
subsection
4,
unnumbered
paragraph
7
1,
Code
2025,
is
amended
to
read
as
follows:
8
The
department
may
require
an
applicant
to
create
an
escrow
9
account
sufficient
to
sustain
financial
operations
of
the
10
applicant’s
nursing
facility
for
a
period
of
not
less
than
11
two
four
months
upon
consideration
of
the
timing
of
projected
12
deposits
and
disbursements
during
the
nursing
facility’s
13
initial
operating
period.
14
Sec.
7.
Section
135C.7A,
Code
2025,
is
amended
by
adding
the
15
following
new
subsections:
16
NEW
SUBSECTION
.
6A.
The
department
shall
review
the
17
information
provided
in
subsection
1
to
determine
whether
the
18
terms
of
the
sale
or
lease
of
a
nursing
facility
will
weaken
19
the
nursing
facility’s
financial
state
long-term,
or
present
a
20
public
health
risk.
The
department
shall
not
approve
a
change
21
of
ownership
application
that
the
department
determined
would
22
weaken
the
nursing
facility’s
financial
state
long-term,
or
23
present
a
public
health
risk.
24
NEW
SUBSECTION
.
6B.
Upon
completion
of
a
review
of
a
change
25
of
ownership
application,
the
department
shall
publish
a
report
26
on
the
department’s
internet
site
that
explains
the
rationale
27
for
the
department’s
decision.
The
report
shall,
at
a
minimum,
28
include
a
comparative
analysis
of
past
decisions.
29
EXPLANATION
30
The
inclusion
of
this
explanation
does
not
constitute
agreement
with
31
the
explanation’s
substance
by
the
members
of
the
general
assembly.
32
This
bill
relates
to
nursing
facility
(facility)
change
of
33
ownership
applications.
34
The
bill
requires
the
department
of
inspections,
appeals,
35
-3-
LSB
1484XS
(2)
91
dg/ko
3/
4
S.F.
535
and
licensing
(DIAL),
during
review
of
an
application
to
change
1
the
ownership
of
a
facility,
to
determine
the
potential
impact
2
on
the
health,
safety,
welfare,
and
rights
of
the
residents,
3
and
to
ensure
that
a
new
owner
will
guarantee
the
safety
of
and
4
attain
the
highest
practicable
physical,
mental,
and
social
5
well-being
for
each
resident.
6
The
bill
requires
an
applicant
for
a
facility
change
of
7
ownership
(applicant)
to
provide
information
and
documentation
8
as
detailed
in
the
bill
to
verify
the
applicant’s
financial
9
state
and
history
of
compliance
with
state,
federal,
and
other
10
jurisdictions’
laws
and
regulations.
11
Under
current
law,
DIAL
may
require
an
applicant
to
create
12
an
escrow
account
sufficient
to
sustain
financial
operations
13
of
the
applicant’s
nursing
facility
for
a
period
of
not
less
14
than
two
months.
The
bill
changes
this
requirement
to
a
period
15
of
not
less
than
four
months.
16
The
bill
requires
DIAL
to
review
the
information
provided
17
in
an
application
for
change
of
ownership
of
a
facility
to
18
determine
whether
the
terms
of
the
sale
or
lease
of
a
facility
19
would
weaken
the
facility’s
financial
state
long-term,
20
or
present
a
public
health
risk.
The
bill
prohibits
DIAL
21
from
approving
to
a
change
of
ownership
application
that
22
DIAL
determined
would
weaken
the
facility’s
financial
state
23
long-term,
or
present
a
public
health
risk.
24
The
bill
requires
DIAL,
upon
completion
of
a
review
of
a
25
change
of
ownership
application,
to
publish
a
report
on
DIAL’s
26
internet
site
that
explains
the
rationale
for
DIAL’s
decision.
27
The
report
must,
at
a
minimum,
include
a
comparative
analysis
28
of
past
decisions.
29
-4-
LSB
1484XS
(2)
91
dg/ko
4/
4