California Health and Safety Code § 128734

(a) Each organization that operates, conducts, owns, or maintains a skilled nursing facility licensed pursuant to subdivision (c) of Section 1250 shall file with the department as part of the information required in subdivisions (a) to (e), inclusive, of Section 128735, whether the licensee, or a general partner, director, or officer of the licensee, has an ownership or control interest of 5 percent or more in a related party that provides any service to the skilled nursing facility. If the licensee, or the general partner, director, or officer of the licensee has such an interest, the licensee shall disclose all services provided to the skilled nursing facility, the number of individuals who provide that service at the skilled nursing facility, and any other information requested by the department. If goods, fees, and services collectively worth ten thousand dollars ($10,000) or more per year are delivered to the skilled nursing facility, the disclosure required pursuant to this subdivision shall include the related party’s profit and loss statement, and the Payroll-Based Journal public use data of the previous quarter for the skilled nursing facility’s direct caregivers. (b) For purposes of this section, all of the following definitions shall apply: (1) “Direct caregiver” shall have the same meaning as that term is defined in Section 1276.65. (2) “Profit and loss statement” means the most recent annual statement on profits and losses finalized by a related party for the most recent year available. (3) “Related party” means an organization related to the licensee provider or that is under common ownership or control, as defined in Section 413.17(b) of Title 42 of the Code of Federal Regulations. (c) Current licensees shall provide the information required by this section to the department in a manner prescribed by the department. (d) The provisions of this section shall become effective on January 1, 2020.

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