Human Services Committee
Adopted in House Comm. on Mar 04, 2004
 
 

 




 

 		












09300HB4735ham001

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AMENDMENT TO HOUSE BILL 4735 




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    AMENDMENT NO. ______. Amend House Bill 4735  by replacing 
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everything after the enacting clause with the following:

 
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    "Section 1. Short title. This Act may be cited as the 
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Nursing Facility Bed Conversion and Modernization Act.
 
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    Section 5. Nursing Facility Conversion and Modernization 
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Program. 
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    (a) For the purposes of this Section, "nursing facility" 
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means (1) a skilled nursing or intermediate long term care 
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facility, whether public or private and whether organized for 
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profit or not-for-profit, that is subject to licensure by the 
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Department of Public Health under the Nursing Home Care Act, 
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including a county nursing home directed and maintained under 
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Section 5-1005 of the Counties Code, and (2) a part of a 
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hospital in which skilled or intermediate long term care 
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services within the meaning of Title XVIII or XIX of the Social 
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Security Act are provided.
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    (b)  Any nursing facility that has, for the previous 3 
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years, provided services to at least 35% of its resident 
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population under the medical assistance program under Title XIX 
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of the Social Security Act is eligible to apply for a Nursing 
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Facility Conversion and Modernization Grant.
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    (c)  Nursing Facility Conversion and Modernization Grants 
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shall be available for the construction, alteration, 
 


 






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reconstruction, renovation, modernization, or improvement of 
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existing nursing facility beds or areas within a nursing 
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facility for any or a combination of any of the following uses:
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        (1)  Conversion of a portion of or all nursing facility 
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beds to an assisted living establishment as defined in the 
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Assisted Living and Shared Housing Act or to a supported 
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living facility as provided pursuant to Section 5-5.01a of 
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the Public Aid Code.
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        (2)  Conversion of shared nursing facility bedrooms to 
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private, single-bed rooms.
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        (3)  Provision of any alternatives to nursing facility 
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care, which, for purposes of this Section, means those 
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services included in the program of home and 
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community-based waiver services for seniors under the 
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medical assistance program under Title XIX of the Security 
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Act, including, but not limited to, adult day services or 
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respite care living space within a nursing facility.
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    (d)  Construction projects for conversion or modernization 
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of existing nursing facilities shall not have the effect of:
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        (1) diminishing or reducing the quality of services 
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available to nursing facility residents; or
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        (2) forcing any nursing facility resident to 
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involuntarily accept home or community-based services in 
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lieu of nursing facility services; or
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        (3) diminishing or reducing the supply of long-term 
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care services in any community below the level of need.
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    (e)  Grants may not be used to expand a current building, 
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except (i) for additional space required to accommodate related 
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supportive services, such as dining rooms, kitchen and 
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recreation areas, or other community use areas; or
(ii)  if the 
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facility demonstrates that new construction is more cost 
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effective than the conversion of existing space.
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    (f)  Notwithstanding any local ordinance related to 
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development, planning, or zoning to the contrary, the 
 


 






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conversion, modernization, or reuse of a nursing facility that 
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closes or that curtails, reduces, or changes operations shall 
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be considered a conforming use permitted under local law, 
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provided that the facility is converted to another long-term 
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care service.
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    (g)  Conversions or modernization pursuant to this Act are 
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exempt from the requirements of the Health Facilities Planning 
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Act.
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    (h)  Subject to available appropriations, Nursing Facility 
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Conversion and Modernization Grants shall be available from the 
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Nursing Facility Conversion and Modernization Fund, a special 
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fund hereby created in the State treasury, for capital or 
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one-time capital expenditures, for a maximum of $1,000,000 per 
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nursing facility; provided that grantees shall be required to 
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provide 20% as match toward the total cost of the capital 
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project.  Any application for a Nursing Facility Conversion and 
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Modernization Grant shall include the total budget that will be 
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necessary, including State and federal funding, for services to 
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operate the program once the capital project is completed, and 
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shall specify the number of existing nursing facility beds that 
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the nursing facility provider agrees to de-license.  In 
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distribution of the grants, the following factors shall be 
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considered:
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        (1)  the bed need in the area in which the facility is 
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located; and

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        (2) The extent to which the conversion or modernization 
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results in the reduction of licensed nursing facility beds 
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in an area with excess beds.
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The application and grant process, including rules and 
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regulations for the Nursing Facility Conversion and 
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Modernization Program, shall be promulgated by the Director of 
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Public Health, in coordination with the Director of Public Aid 
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and the Director of Aging.
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    (i)  Any nursing facility receiving a grant pursuant to the 
 


 






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Nursing Facility Conversion and Modernization Program shall 
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reduce the number of licensed nursing facility beds by an 
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amount equal to or greater than the number of beds being 
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constructed or modernized for one or more of the permitted uses 
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pursuant to subsection (c).
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    (j)  Any nursing facility receiving a grant pursuant to the 
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Nursing Facility Conversion and Modernization Program shall 
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agree, for a minimum of 10 years after the date that the grant 
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is awarded, to maintain a minimum of 35% of its occupancy for 
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residents eligible for services under the medical assistance 
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program under Title XIX of the Social Security Act.  In the 
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event the nursing facility provider or its successor in 
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interest ceases to comply with the requirement set forth in 
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this subsection, the provider shall refund to the Nursing 
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Facility Conversion and Modernization Fund, on an amortized 
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basis, the amount of the grant.
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    (k) Any nursing facility receiving a grant pursuant to the 
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Nursing Facility Conversion and Modernization Program shall 
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not segregate residents receiving nursing facility services 
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under the medical assistance program under Title XIX of the 
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Social Security Act in an area, section, or portion of the 
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nursing facility and shall not relocate a resident within the 
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nursing facility solely due to a change in payment status from 
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private payment to government subsidy.

 
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    Section 10. Reporting. The Director of Public Health, in 
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coordination with the Director of Public Aid and the Director 
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of Aging, shall implement mechanisms to monitor and analyze the 
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effect of the Nursing Facility Conversion and Modernization 
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Program, including documenting and verifying the savings to the 
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Medicaid program attributable to this Act.   A report containing 
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the analysis shall be submitted to the Governor and the General 
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Assembly on January 1, 2006 and on January 1 of each year 
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thereafter.
 
 


 






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    Section 95. The State Finance Act is amended by adding 
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Section
5.625 as follows:


 
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    (30 ILCS 105/5.625 new)


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    Sec. 5.625. The Nursing Facility Conversion and 
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Modernization Fund.

 

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    Section 99. Effective date. This Act takes effect upon 
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becoming law.".