Virginia SB 247: Nursing homes; application to Commissioner of Health for change of operator license, civil penalty.

Bill Text

2026 SESSION

INTRODUCED

26104796D

SENATE BILL NO. 247

Offered January 14, 2026

Prefiled January 12, 2026

A BILL to amend the Code of Virginia by adding a section numbered 32.1-126.6, relating to nursing homes; change of operator; application to Commissioner of Health for change of operator license; civil penalty.

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Patron—Favola

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Referred to Committee on Education and Health

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Be it enacted by the General Assembly of Virginia:

1. That the Code of Virginia is amended by adding a section numbered 32.1-126.6 as follows:

§ 32.1-126.6. Assignment or transfer of operation of nursing home; civil penalty.

A. As used in this section, unless the context requires a different meaning:

"Entering operator" means the person that takes over the daily operations and management of a nursing home when change of ownership or control occurs.

"Exiting operator" means (i) an operator that will cease to be the operator of a nursing home on the effective date of a change of operator, (ii) an operator that will cease to be the operator of a nursing home on the effective date of a facility closure, (iii) an operator of a nursing home that is undergoing or has undergone a voluntary withdrawal of participation, or (iv) an operator of a nursing home that is undergoing or has undergone an involuntary termination.

"Operator" means the person that is responsible for or arranges for the operation and management of a nursing home licensed pursuant to this article.

"Owner" means a person that has at least five percent ownership or interest, either directly, indirectly, or in any combination, in any of the following:

1. The land on which the nursing home is located;

2. The structure in which the nursing home is located;

3. Any mortgage, contract for deed, or other obligation secured in whole or in part by the land or structure on or in which the nursing home is located; or

4. Any lease or sublease of the land or structure on or in which the nursing home is located.

"Owner" does not include a holder of a debenture or bond related to the nursing home and purchased at public issue or a regulated lender that has made a loan related to the nursing home unless the holder or lender operates the nursing home directly or through a subsidiary.

"Provider" means an operator that has a current, signed participation agreement with the Department of Medical Assistance Services.

"Related party" means a person that has common ownership with, is associated or affiliated with, has control of, or is controlled by the entering operator. "Related party" includes:

1. An individual who is a relative of an entering operator. For the purposes of this subdivision, "relative" means the entering operator's spouse, parent, child, sibling, stepparent, stepchild, stepsibling, parent-in-law, child-in-law, sibling-in-law, grandparent, grandchild, foster parent, foster child, foster sibling, parent's sibling, or child of parent's sibling.

2. An individual who possesses at least five percent ownership or equity in both the entering operator and an organization that supplies goods or services to an entering operator.

3. An individual who possesses at least 10 percent ownership or equity in both the entering operator and another organization from which the entering operator purchases or leases real property.

"Related party" does not include an organization that supplies goods and services to an entering operator if (i) such organization is a separate bona fide organization; (ii) a substantial part of such organization's business activity of the type carried on with the entering operator is transacted with others than the entering operator and there is an open, competitive market for the types of goods or services such organization provides; (iii) the types of goods and services provided by such organization are commonly obtained by other nursing homes from outside organizations and are not a basic element of patient care ordinarily provided directly to patients by nursing homes; and (iv) such organization charges the entering operator fees for the goods and services it provides that are similar to those in the open market and not more than charges made under comparable circumstances to other nursing homes by the organization.

B. An entering operator shall obtain a change of operator license from the Commissioner prior to taking over the operations of a nursing home when a change of ownership or control of the nursing home occurs. Each of the following requirements shall be satisfied before the Commissioner may issue a change of operator license from an exiting operator to an entering operator:

1. The entering operator shall complete a change of operator license application on a form prescribed by the Commissioner and pay the applicable fee for such application as determined by the Board. The completed application shall be submitted no later than 45 days before the proposed effective date of the change of operator if such change of opera