Rep. Denyse Wang Stoneback
Filed: 2/15/2022
 
 

 

 

 
10200HB4662ham001LRB102 23617 CPF 35891 a



1
AMENDMENT TO HOUSE BILL 4662




2    AMENDMENT NO. ______. Amend House Bill 4662 by replacing 
3everything after the enacting clause with the following:

 
 
4    "Section 5. The Nursing Home Care Act is amended  by adding 
5Section 3-305.10 as follows:
 
6    (210 ILCS 45/3-305.10 new)
7    Sec. 3-305.10. Rental data disclosure; facility cost 
8report.
9    (a) In this Section:
10    "Real estate partnership" means any combination of 
11domestic or foreign corporations, limited liability companies, 
12limited liability partnerships, subsidiaries, management 
13companies, general partnerships, sole proprietorships, limited 
14liability partnership, or any other legal entity recognized 
15under Illinois law that hold real estate together.
16    "Related business entity" means one of 2 or more entities 
 
 
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1where:
2        (1) the entities have (i) significant common purposes 
3    and substantial common membership or (ii) directly or 
4    indirectly substantial common direction or control;
5        (2) either entity owns, directly or through one or 
6    more entities, a 50% or greater interest in the capital or 
7    profits of the other;
8        (3) the entities share a real estate partnership; or
9        (4) the owner or operator of either entity has a 
10    familial relationship or is a related party to a person 
11    who is an owner or operator of another entity. 
12    "Related party" includes a person's parent, step-parent, 
13child, spouse, sibling, cousin, or other family member.
14    (b)      A for-profit facility licensed under this Act shall 
15disclose, with each cost report filed with the Department of 
16Healthcare and Family Services, data regarding the lease or 
17rental of the facility by a related business entity that owns 
18the facility to a business operating the facility in any cost 
19report submitted by the facility to the State. The data shall 
20include the following:
21        (1) Any new company created by an investor or a 
22    related party of an investor in the facility to hold a real 
23    estate asset of the facility, including the value of any 
24    building on the real estate, the value of the real 
25    property itself, and the value of the company itself.
26        (2) Information regarding the rental or provision of 
 
 
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1    ventilators, pharmaceutical supplies, ambulances, 
2    management and professional services, or payroll services 
3    to any facility that is leased or rented by the facility's 
4    property owner, business owner, or a related party of a 
5    property owner or business owner. This information 
6    includes, but is not limited to, the following:
7            (A) General services, such as dietary, 
8        housekeeping, laundry, or maintenance services.
9            (B) Health care and program services, such as the 
10        facility's medical director, nursing and medical 
11        records, therapy, activities, certified nursing 
12        assistant training, program transportation, and 
13        special services.
14            (C) General administration services, such as 
15        professional services, payroll services, clerical and 
16        general office services, data processing, in-service 
17        training and education, staff and resident 
18        transportation, consulting services, project manager 
19        services, and associated services.
20            (D) Capital expenses and services, such as 
21        facility rent, leases, grounds, equipment, supplies, 
22        and vehicles.
23            (E) Ancillary expenses.
24            (F) Contractual services, such as lobbying 
25        services.
26        (3) Detailed information on any declaration of 
 
 
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1    bankruptcy, as well as any sale of any privately or 
2    publicly held real estate to a real estate investor, 
3    investment trust, or private equity firm. This information 
4    includes, but is not limited to, the following:
5            (A) Any required filings by a board of trustees 
6        under any other law and disclosure of the names of the 
7        president, leadership board, and members of the 
8        corporation, limited liability company, limited 
9        liability partnership, subsidiary, management company, 
10        general partnership, sole proprietorship, limited 
11        liability partnership, or other legal entity 
12        recognized under any State or federal law or rule.
13            (B) Documentation that includes, but is not 
14        limited to, annual filings with the Secretary of State 
15        and any relevant  federal filings.
16            (C) Identification of entities that have either a 
17        significant ownership interest, meaning greater than 
18        5%, in the facility or that play an important role in 
19        the facility's management, financing, or operation.
20        (4) Details of any private equity backing of the 
21    facility.
22        (5) All income and expenses related to the business 
23    entity in question,  from gross and net revenues to gross 
24    and net expenses, including, but not limited to,  any 
25    expenses paid to management companies regarding the real 
26    property.
 
 
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1        (6) In a form that protects the privacy rights of 
2    residents, the facility's spending relating to Medicaid 
3    and Medicare and the amounts of State and federal funds 
4    received or spent by the facility. 
5    (c) The disclosure required under subsection (b) shall be 
6filed with the Department of Healthcare and Family Services' 
7Bureau of Health Finance within 90 days after the end of each 
8fiscal year. 
9    (d)   This Section only applies to a facility that is leased 
10or rented by its owner to a related party of the owner.".