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| Public Act 103-0812 | ||||
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AN ACT concerning regulation. | ||||
Be it enacted by the People of the State of Illinois, | ||||
represented in the General Assembly: | ||||
Section 5. The Life Care Facilities Act is amended by | ||||
adding Sections 5.1 and 5.2 as follows: | ||||
(210 ILCS 40/5.1 new) | ||||
Sec. 5.1. Pre-sale disclosures. | ||||
(a) Prior to the execution of a refundable life care | ||||
contract and the transfer of any money or other property to a | ||||
provider or escrow agent, the provider shall deliver to the | ||||
consumer a pre-sale disclosure printed on paper. The pre-sale | ||||
disclosure shall be signed by the consumer prior to executing | ||||
the life care contract. The pre-sale disclosure shall include: | ||||
(1) the caption, "ENTRY FEE REFUNDS: CONSUMER NOTICE", | ||||
in at least 28-point font and the remaining portion in at | ||||
least 12-point font; | ||||
(2) the caption, "The timing of refunds for past | ||||
residents may not be indicative of your refund experience. | ||||
Your ability to collect on the full amount of the | ||||
calculated refund may be modified or nullified pending | ||||
market conditions, any future sale of this organization, | ||||
or in the event of bankruptcy. Current residents, former | ||||
residents awaiting refunds, and the estates of former | ||||
residents awaiting refunds shall be provided with the most | ||
recent entry fee refund data disclosure upon request."; | ||
(3) for refunds returned by the provider in the most | ||
recently completed calendar year: | ||
(A) the average number of months passed before the | ||
refund of an entry fee by the provider; and | ||
(B) the median number of months passed before the | ||
refund of an entry fee by the provider; | ||
(4) the percentage of entry fee contracts awaiting | ||
refunds from the provider with wait times exceeding 24 | ||
months as of the end of the most recently completed | ||
calendar year; | ||
(5) the percentage of entry fee contracts awaiting | ||
refunds from the provider with wait times exceeding 36 | ||
months as of the end of the most recently completed | ||
calendar year; | ||
(6) the percentage of entry fee contracts awaiting | ||
refunds from the provider with wait times exceeding 60 | ||
months as of the end of the most recently completed | ||
calendar year; | ||
(7) the number of entry fee contracts awaiting refunds | ||
from the provider as of the last day of the most recently | ||
completed calendar year; and | ||
(8) the number of entry fee refunds returned by the | ||
provider in the most recently completed calendar year. | ||
(b) For the purpose of determining the time a refund is | ||
due, the start time of the refund begins after the unit has | ||
been permanently vacated, returned to resalable condition, and | ||
the outgoing resident has a zero balance due, excluding | ||
outstanding balances to be payable by outside payors, | ||
including, but not limited to, Medicare, Medicaid, Managed | ||
Medicare, or within 30 days of the unit being permanently | ||
vacated and the outgoing resident has a zero balance due, | ||
whichever is shorter. Refund delays due to estate factors | ||
outside of the community's control, including, but not limited | ||
to, probate challenges, estate challenges, or an inability to | ||
confirm next of kin, are not included in the outstanding | ||
refunds to be disclosed. | ||
(c) Pre-sale disclosures may include additional data by | ||
calendar year. | ||
(d) If a payee for an entry fee refund cannot be | ||
determined, for purposes of calculating the data in subsection | ||
(a), a refund shall be considered complete when a new resident | ||
occupies the specified living unit. | ||
(e) The most current pre-sale disclosure data detailed in | ||
subsection (a) shall be made available, upon request, to | ||
current residents that have refundable entry fee contracts, | ||
former residents who have not yet received refunds for their | ||
refundable entry fees, and the estates of former residents who | ||
have not yet received refunds for their refundable entry fees. | ||
(f) Failure to provide the pre-sale disclosure in | ||
accordance with this Section may result in a minimum monetary | ||
penalty of $500 at the discretion of the Department. The | ||
Department shall adopt rules to enforce this Section and | ||
provide for factors to be considered when imposing monetary | ||
penalties and for repeat violations of this Section. | ||
(210 ILCS 40/5.2 new) | ||
Sec. 5.2. Living unit reappropriation. If an unoccupied | ||
living unit is contemplated for use for a purpose other than as | ||
a living unit, including, but not limited to, an exam room or a | ||
storage room, and if there exist beneficiaries awaiting an | ||
entry fee refund, the beneficiaries of the entry fee refund | ||
must provide a signed acknowledgment of, and agreement to, the | ||
reappropriation that may be in effect up to a specific date. | ||
The reappropriation acknowledgment shall include: | ||
(1) the caption, "ENTRY FEE REFUND DELAYS: CONSUMER | ||
NOTICE" in at least 28-point font and the remaining | ||
portion in at least a 12-point font; | ||
(2) the caption, "Your agreement to this arrangement | ||
may result in the delayed sale of the living unit as well | ||
as the delayed return of the entry fee."; and | ||
(3) a statement that the rights provided under this | ||
Section may not be waived. | ||