SF 2972 Minnesota Senate · 2025-2026 Regular Session

For-profit entity acquisitions of nursing homes and assisted living facilities and for-profit entity acquisitions of nursing homes and assisted facilities regulation

SF 2972 amends Minnesota law to clarify who counts as a "controlling person" or "controlling individual" when for-profit entities acquire nursing homes or assisted living facilities. It specifically defines these terms to include private equity firms and other entities that collect capital investments from investors, even if no single person holds 5% ownership. The bill excludes banks, government entities, and small shareholders (under 5% ownership) from these definitions. This change ensures regulatory oversight targets actual controlling owners rather than passive investors, directly affecting for-profit facility operators and their ownership structures.

Issues: ✓ Healthcare

Bill status died 1 of 4 stages cleared

Introduction

Mar 2025

Committee Review

Floor Vote

Governor

Introduced Mar 24, 2025 Last action Mar 23, 2026

Maddy AI version diff · 3 comparisons

What changed between versions

2nd Engrossment → 3rd Engrossment · 4 edits · Mar 23, 2026

MODERATE

The bill was updated from the 2nd to the 3rd engrossment, reflecting a new version of the legislation with a revised posting date. The most significant substantive change is the addition of a new enforcement section that grants the Attorney General specific powers to stop or undo transactions involving nursing homes and assisted living facilities if they violate new staff or acquisition rules. This includes the ability to seek equitable relief without proving irreparable harm and the authority to impose civil penalties of up to $500,000 on entities and $50,000 on individuals for violations.

Scope change

The bill's scope regarding enforcement mechanisms was expanded to include new civil penalties and broader injunctive powers for the Attorney General.

ENFORCEMENT

Added a new section granting the Attorney General authority to enjoin or unwind transactions that violate nursing home staffing or acquisition laws, removing the previous requirement to prove irreparable harm.

Established new civil penalties of up to $500,000 for entities and $50,000 for officers or directors found to have violated the bill's provisions.

TIMELINE

Updated the document title and posting date from March 20 to March 24, 2026, indicating a revision in the legislative process.

TECHNICAL

Added new numbered sections (1.11 through 10.24) and repealed sections, likely reflecting amendments to the bill text or the statutes it amends.

1st Engrossment → 2nd Engrossment · 8 edits · Mar 9, 2026

MODERATE

This bill was revised to significantly strengthen staffing requirements for nursing homes and assisted living facilities, increasing the minimum total nurse staffing from 2.0 to 3.48 hours per resident per day and raising the registered nurse minimum from 0.25 to 0.55 hours. The changes also clarify definitions regarding 'controlling persons' to better regulate for-profit acquisitions of these facilities and update the required disclosure information for such transfers. Additionally, the bill repeals an older, lower staffing standard to prevent confusion between old and new rules.

Scope change

The bill's scope expanded to explicitly include assisted living facilities in the new staffing ratio requirements and clarified the definition of 'ownership or control' to cover a broader range of for-profit acquisition methods.

REQUIREMENT

Increased the minimum total nurse staffing requirement for nursing homes and assisted living facilities to 3.48 hours per resident per 24 hours, up from the previous 2.0 hours.

Raised the minimum registered nurse staffing requirement to 0.55 hours per resident per 24 hours, up from the previous 0.25 hours.

Added specific requirements for nursing supervision, mandating a designated charge nurse for every shift and a full-time director of nursing.

Introduced new staffing competency standards requiring nurses to have specific skills identified through resident assessments.

Repealed the previous minimum staffing standard (Subd. 7) that required 2.0 hours per resident per day to eliminate conflicting regulations.

DEFINITION

Updated the definition of 'controlling person' to clarify ownership thresholds and included specific exclusions for banks, government entities, and small shareholders.

Refined the definition of 'ownership or control' to explicitly include various methods of for-profit acquisition such as joint ventures and asset transfers.

TIMELINE

Extended the notice period required for transferring ownership of a nonprofit facility to a for-profit entity from 120 days to 120 days (unchanged in duration but clarified in context) and updated the affidavit requirements to include more detailed corporate structure descriptions.

Floor votes

How they voted

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Full legislative history

Actions timeline

Total actions

Key actions

Committee

Mar 23, 2026

Upper · Passed

Comm report: To pass as amended and re-refer to Human Services

upper

Mar 9, 2026

Upper · Passed

Comm report: To pass as amended and re-refer to Judiciary and Public Safety

upper

Apr 3, 2025

Committee

Withdrawn and re-referred to Human Services

upper

Apr 1, 2025

Upper · Passed

Comm report: To pass as amended and re-refer to Commerce and Consumer Protection

upper

Mar 24, 2025

Committee

Referred to Human Services

upper

Mar 24, 2025

Introduced

Introduction and first reading

upper

1 primary · 3 co-sponsors