Committee advances H583 with new reporting rules and $25,000 cap for material misrepresentations

A legislative committee on an unspecified date voted to report H583 (draft 3.2) out of committee after agreeing to changes that tighten oversight of private equity and hedge-fund involvement in healthcare facilities and add reporting and penalty provisions.

Jen Carvey of the Office of Legislative Council, who presented the draft, said the bill replaces an older licensing term with a focus on "healthcare provider services" and narrows the reporting obligation to "each healthcare facility and each management services organization," using the section heading phrase "certain healthcare entities" to avoid repeating the full list in the section title. Carvey also described editorial fixes and renumbering in the draft.

Carvey described a substantive policy change on enforcement: the draft substitutes a material-misrepresentation standard for a prior "knowingly misrepresents" formulation and would make an entity that "makes a material misrepresentation included in the report" civilly liable for "not more than $25,000 for each" material misrepresentation. She said the Attorney General's Office had requested discretionary "not more than" penalty language rather than a fixed per-day fine for failure to report.

Committee members asked for clarification about which organizations are covered. Carvey said the phrase "certain" refers to healthcare facilities and management services organizations and noted a reporting deadline mentioned in the draft of July 1, 2026. She also confirmed removal of an earlier licensing definition and that the version before the committee was 3.2.

Carvey said that language addressing non-disclosure agreements and noncompetes — matters that had prompted substantial testimony previously — was omitted from H583 because a separate bill, H205, addressing those topics had been recommitted to the Commerce Committee. "If 205 does not move then we will work diligently with the Senate to ensure that it gets back in here," she said. Deon Green added, "I am happy to go on the record to say that we will work on this in the Senate," signaling interchamber coordination.

A committee member moved to report H583 draft 3.2 favorably out of committee (motion text recorded as: "I make a motion to pass H583 draft 3.2 out of committee"). The chair called the roll; individual members answered "Yes" or "No." The clerk corrected an initial tally and announced the final vote as 9–2 in favor. A committee member volunteered to serve as the bill reporter.

The committee adjourned; the sponsor acknowledged in the room was Representative Bloomley. The bill will proceed according to legislative scheduling and could be affected by the status of H205 and any Senate action.