AN ACT RELATING TO HEALTH AND SAFETY -- LICENSING OF HEALTHCARE FACILITIES (Requires the disclosure of the transfer of certain assets of healthcare facilities and provides penalties for failing to file healthcare facility ownership information.)

H7930

2026 -- H 7930
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STATE OF RHODE ISLAND
IN GENERAL ASSEMBLY
JANUARY SESSION, A.D. 2026
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A N A C T
RELATING TO HEALTH AND SAFETY -- LICENSING OF HEALTHCARE FACILITIES

Introduced By:
Representatives Speakman, Boylan, and Donovan

Date Introduced:
February 27, 2026

Referred To:
House Health & Human Services
(Dept. of Health)
It is enacted by the General Assembly as follows:
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SECTION 1. Section 23-17-65 of the General Laws in Chapter 23-17 entitled "Licensing
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of Healthcare Facilities" is hereby amended to read as follows:
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23-17-65. Transparency of ownership in healthcare facilities.
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(a) Any operator or operators of a nursing facility shall file with the department of health
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information of ownership including, but not limited to, the following:
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(1) The name, address, and a description of the interest held by each of the following
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persons:
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(i) Any person who, directly or indirectly, beneficially owns any interest in the land on
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which the facility is located;
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(ii) Any person who, directly or indirectly, beneficially owns any interest in the building
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in which the facility is located;
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(iii) Any person who, directly or indirectly, beneficially owns any interest in any mortgage,
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note, deed of trust, or other obligation secured, in whole or in part, by the land on which or building
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in which the facility is located;
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(iv) Any person who, directly or indirectly, has any interest as lessor or lessee in any lease
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or sub-lease of the land on which or the building in which the facility is located;
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(v) Any person who is the ultimate and actual owner of the land, building, mortgages, and
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leases of the nursing facility and any lessee of the land or building; and
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(vi) The operator or operators of the nursing facility.

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(2) If any person named in subsection (a)(1) of this section is a partnership or limited
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liability company, then the name and address of each partner or member.
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(3) If any person named in subsection (a)(1) of this section is a corporation, other than a
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corporation whose shares are traded on a national securities exchange or are regularly quoted in an
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over-the-counter market or which is a commercial bank, savings bank, or savings and loan
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association, then the name and address of each officer, director, stockholder and, if known, each
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principal stockholder and controlling person of such corporation.
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(4) If any corporation named in subsection (a)(1) of this section is a corporation whose
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shares are traded on a national securities exchange or are regularly quoted in an over-the-counter
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market or which is a commercial bank, savings bank, or savings and loan association, then the name
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and address of the principal executive officers and each director and, if known, each principal
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stockholder of such corporation.
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(b) In order to promote greater transparency, the department of health shall, upon request,
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furnish to the public all documents and information received pursuant to this section.
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(c) As used in this section, the term “operator” means the licensee and also includes the
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complete ownership entity above the actual entity holding the license.
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(d) Any operator that fails to file, in whole or in part, the ownership information required
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in accordance with subsection (a) of this section or willingly or knowingly files false or incorrect
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ownership information, may, after notice and opportunity for a hearing, be subject to the penalties
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set forth in §§ 23-17-8 and 23-17-8.1. The director, in his or her discretion, may require that a
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financial audit be conducted of the nursing facility at the operator’s expense and may impose a fine
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of the greater of one million dollars ($1,000,000) or the amount of facility assets diverted to
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undisclosed interest holders.
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SECTION 2. Chapter 23-17 of the General Laws entitled "Licensing of Healthcare
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Facilities" is hereby amended by adding thereto the following section:
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23-17-12.12. Withdrawal of equity or assets.

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(a) On or after July 1, 2026, no nursing facility licensed under this chapter may withdraw
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equity or transfer assets which, in the aggregate, exceed three percent (3%) of such facility’s total
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reported annual revenue for patient care services, without prior written approval of the director.
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Notification shall be made in a form acceptable to the licensing agency by certified mail. Total
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reported annual revenue shall be based on the facility’s most recently filed annual BM-64 with the
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department of human services, or alternative form prescribed by the director.
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(b) The director shall make a determination to approve or disapprove a request for
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withdrawal of equity or assets under this section within sixty (60) days of the date of receipt of the

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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
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and would provide penalties for failing to file healthcare facility ownership information.
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This act would take effect upon passage.
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