The legislation would require nursing homes to show they have the proper funding and insurance before the state grants operating licenses and increases disclosure requirements for proposed nursing home sales. Homes would have to notify residents of changes of ownership and make clear who is ultimately responsible for the quality of care.

The move comes following the Carlyle Group’s buyout of ManorCare nursing homes, one of the state’s largest nursing home chains. Lawmakers held hearings around Michigan to give constituents the opportunity to express concerns about the buyout, which ranged from difficulties knowing who is actually responsible for care to concerns about whether the buyout could increase pressure to cut staffing and other costs.