HB4928 95TH GENERAL ASSEMBLY

LRB095 15210 DRJ 41190 b

95TH GENERAL ASSEMBLY
State of Illinois
2007 and 2008
HB4928

Introduced , by Rep. Greg Harris

SYNOPSIS AS INTRODUCED:

See Index

Amends the Nursing Home Care Act. Provides that the owner of the building in which a long-term care facility is located must be the licensee with respect to that facility. Provides that the owner of the building in which a facility is located may enter into an agreement with another individual or entity to operate the facility; requires approval of any such agreement by the Department of Public Health. Requires the Department to establish standards constituting appropriate business, professional, or management experience for operating a facility and to consider the record of a license applicant or other individual or entity in operating facilities in other states. Requires the Department to adopt rules specifying the minimum amount of assets that a licensee or other individual or entity must have in order to qualify for a license under the Act and requires a licensee or other individual or entity to post a bond. Requires that certain key personnel be employees of the licensee. Adds provisions concerning the transfer of a beneficial interest in a facility. Adds provisions that must be included in a facility's statement of ownership. Provides for facility financial statements more frequently than annually. Makes other changes. Effective immediately.

FISCAL NOTE ACT MAY APPLY

A BILL FOR

AN ACT concerning regulation.

Be it enacted by the People of the State of Illinois, represented in the General Assembly:

Section 5. The Nursing Home Care Act is amended by changing Sections 3-103, 3-108, 3-109, 3-112, 3-207, 3-208, 3-209, 3-210, and 3-213 and by adding Sections 3-103.5, 3-103.10, 3-103.15, and 3-103.20 as follows:

(210 ILCS 45/3-103) (from Ch. 111 1/2, par. 4153-103)

Sec. 3-103. Application for license. The procedure for obtaining a valid license shall be as follows:

(1) Application to operate a facility shall be made to the Department on forms furnished by the Department.

(2) All license applications shall be accompanied with an application fee. The fee for an annual license shall be $995. Facilities that pay a fee or assessment pursuant to Article V-C of the Illinois Public Aid Code shall be exempt from the license fee imposed under this item (2). The fee for a 2-year license shall be double the fee for the annual license set forth in the preceding sentence. The fees collected shall be deposited with the State Treasurer into the Long Term Care Monitor/Receiver Fund, which has been created as a special fund in the State treasury. This special fund is to be used by the Department for expenses related to the appointment of monitors and receivers as contained in Sections 3-501 through 3-517 of this Act and for implementation of the Abuse Prevention Review Team Act. At the end of each fiscal year, any funds in excess of $1,000,000 held in the Long Term Care Monitor/Receiver Fund shall be deposited in the State's General Revenue Fund. The application shall be under oath and the submission of false or misleading information shall be a Class A misdemeanor. The application shall contain the following information:

(a) The name and address of the applicant if an individual, and if a firm, partnership, or association, of every member thereof, and in the case of a corporation, the name and address thereof and of its officers and its registered agent, and in the case of a unit of local government, the name and address of its chief executive officer;

(b) The name and location of the facility for which a license is sought;

(c) The name of the person or persons under whose management or supervision the facility will be conducted;

(d) The number and type of residents for which maintenance, personal care, or nursing is to be provided; and

(e) Such information relating to the number, experience, and training of the employees of the facility, any management agreements for the operation of the facility, and of the moral character of the applicant and employees as the Department may deem necessary.

(3) Each initial application shall be accompanied by a financial statement setting forth the financial condition of the applicant and by a statement from the unit of local government having zoning jurisdiction over the facility's location stating that the location of the facility is not in violation of a zoning ordinance. The statement setting forth the applicant's financial condition must include specific information concerning the applicant's assets and bond as required under Section 3-103.15. An initial application for a new facility shall be accompanied by a permit as required by the "Illinois Health Facilities Planning Act". After the application is approved, the applicant shall advise the Department every 6 months of any changes in the information originally provided in the application.

(4) Other information necessary to determine the identity and qualifications of an applicant to operate a facility in accordance with this Act shall be included in the application as required by the Department in regulations.

(Source: P.A. 93-32, eff. 7-1-03; 93-841, eff. 7-30-04; 94-931, eff. 6-26-06.)

(210 ILCS 45/3-103.5 new)

Sec. 3-103.5. Facility ownership.

(a) The owner of the building in which a facility is located must be the licensee under this Act with respect to that facility.

(b) The owner of the building in which a facility is located may enter into an agreement with another individual or entity to operate the facility.

(c) The Department shall publish or otherwise make available, including by means of the Department's official web site, information concerning (i) the ownership of a facility and the building and real estate in which and on which a facility is located and (ii) an individual's or entity's ownership of other facilities, or buildings or real estate in which or on which other facilities are located, in this or any other state. The Department shall ensure that the information is updated in a timely fashion so that it is as up-to-date as possible.

(210 ILCS 45/3-103.10 new)

Sec. 3-103.10. Facility operation.

(a) The Department shall adopt rules that establish standards constituting appropriate business, professional, or management experience for operating a facility. The Department shall establish standards for individuals as well as for entities and shall use those standards in determining whether to grant or renew a license under this Act.

(b) In determining whether to grant or renew a license under this Act, the Department shall consider the record of the applicant in operating facilities in other states. If the applicant has not operated a facility in another state but has contracted with another individual or entity to manage a facility owned by the applicant and located in another state, the Department shall consider the record of that individual or entity in operating facilities in other states. Before granting or renewing a license, the Department must determine that the applicant or the individual or entity, as the case may be, has appropriate experience in managing a facility of the type for which a license is sought.

(c) If a licensee enters into an agreement with another individual or entity for the operation of the facility for which the licensee holds a license under this Act, as authorized under subsection (b) of Section 3-103.5, the Department must approve that agreement as a condition of granting or renewing a license under this Act. The licensee must submit the agreement to the Department in accordance with rules adopted by the Department. The Department shall adopt rules that establish standards for approving such agreements.

(d) If a licensee enters into an agreement with another individual or entity for the operation of the facility for which the licensee holds a license under this Act, that individual or entity shall be deemed to be the licensee's agent for purposes of liability for the quality of care provided in the facility.

(e) The Department shall publish or otherwise make available, including by means of the Department's official web site, information concerning (i) the operation of a facility and (ii) an individual's or entity's operation of other facilities in this or any other state. The Department shall ensure that the information is updated in a timely fashion so that it is as up-to-date as possible.

(210 ILCS 45/3-103.15 new)

Sec. 3-103.15. Minimum amount of assets; bond.

(a) The Department shall adopt rules specifying (i) the minimum amount of assets that a licensee must have in order to qualify for a license under this Act and (ii) the minimum amount of assets that any other individual or entity with any financial interest in the ownership or operation of the facility in question must have in order for the licensee to qualify for a license under this Act. The rules shall provide that the Department may not consider a line of credit available to a licensee or any other individual or entity in determining whether the licensee meets the minimum asset requirement.

(b) A licensee, and any other individual or entity with any financial interest in the ownership or operation of the facility in question, must post a bond in an amount and in a manner prescribed by the Department by rule for the purpose of securing payment for damages incurred by a facility resident as a result of the conduct of the licensee or other individual or entity in operating the facility.

(210 ILCS 45/3-103.20 new)

Sec. 3-103.20. Key personnel. All key personnel in the operation of a facility must be employees of the licensee. The Department shall adopt rules defining "key personnel", but the term shall include at least the facility administrator and the director of nursing.

(210 ILCS 45/3-108) (from Ch. 111 1/2, par. 4153-108)

Sec. 3-108. Cooperation with State agencies and officers. The Department shall coordinate the functions within State government affecting facilities licensed under this Act and shall cooperate with other State agencies which establish standards or requirements for facilities to assure necessary, equitable, and consistent State supervision of licensees without unnecessary duplication of survey, evaluation, and consultation services or complaint investigations. The Department shall cooperate with the Department of Human Services in regard to facilities containing more than 20% of residents for whom the Department of Human Services has mandated follow-up responsibilities under the Mental Health and Developmental Disabilities Administrative Act. The Department shall cooperate with the Secretary of State to ensure necessary, equitable, and consistent State supervision of licensees and other individuals or entities with a financial interest in the ownership or operation of a facility without unnecessary duplication of survey, evaluation, and consultation services or complaint investigations.

The Department shall cooperate with the Department of Healthcare and Family Services in regard to facilities where recipients of public aid are residents.

The Department shall immediately refer to the Department of Professional Regulation for investigation any credible evidence of which it has knowledge that an individual licensed by that Department has violated this Act or any rule issued under this Act.

The Department shall enter into agreements with other State Departments, agencies or commissions to effectuate the purpose of this Section.

(Source: P.A. 95-331, eff. 8-21-07.)

(210 ILCS 45/3-109) (from Ch. 111 1/2, par. 4153-109)

Sec. 3-109. Upon receipt and review of an application for a license made under this Article and inspection of the applicant facility under this Article, the Director shall issue a license if he finds:

(1) the Director finds that the individual applicant, or the corporation, partnership or other entity if the applicant is not an individual, is a person responsible and suitable to operate or to direct or participate in the operation of a facility by virtue of financial capacity, appropriate business or professional experience, a record of compliance with lawful orders of the Department and lack of revocation of a license during the previous 5 years;

(2) the Director finds that the facility is under the supervision of an administrator who is licensed, if required, under the Nursing Home Administrators Licensing and Disciplinary Act, as now or hereafter amended; and

(2.5) the Director makes the determination required under subsection (b) of Section 3-103.10 and approves the management agreement, if any, under subsection (c) of that Section; and

(3) the Director finds that the facility is in substantial compliance with this Act, and such other requirements for a license as the Department by rule may establish under this Act.

(Source: P.A. 95-331, eff. 8-21-07.)

(210 ILCS 45/3-112) (from Ch. 111 1/2, par. 4153-112)

Sec. 3-112. Transfer of ownership or other interest; license.

(a) Whenever ownership of a facility is transferred from the person named in the license to any other person, the transferee must obtain a new probationary license. The transferee shall notify the Department of the transfer and apply for a new license at least 30 days prior to final transfer.

(b) The transferor shall notify the Department at least 30 days prior to final transfer. The transferor shall remain responsible for the operation of the facility until such time as a license is issued to the transferree.

(c) For purposes of subsection (d), "controlling person" means any public body, governmental agency, business entity, officer, nursing home administrator, or director whose responsibilities include the direction of the management or policies of a facility. "Controlling person" also means any person who, directly or indirectly, beneficially owns any interest in: (i) any corporation, partnership, or other business association that is a controlling person; (ii) the real estate on which a facility is located; (iii) the building in which a facility is located; (iv) any mortgage, contract for deed, or other obligation secured in whole or part by the real estate or building on which or in which a facility is located; or (v) any lease or sublease of the real estate, building, or other facilities comprising a facility.

"Controlling person" does not include any of the following: (A) a bank, savings bank, trust company, savings association, credit union, investment banking firm, or insurance company, unless the entity directly or through a subsidiary operates a facility; or (B) an individual State official or State employee, or a member or employee of the governing body of a political subdivision of the State that operates one or more facilities, unless the individual is also an officer or director of a facility, receives any remuneration from a facility, or owns any of the beneficial interests not excluded in this definition.

(d) Any controlling person who makes any transfer of a beneficial interest in a facility shall notify the Department of the transfer within 14 days after its occurrence. The notification shall identify by name and address the transferor and transferee and shall specify the nature and amount of the transferred interest. On determining that the transferred beneficial interest exceeds 10% of the total beneficial interest in the facility, the building in which the facility is located, or the real estate on which the facility is located, the Department may, and on determining that the transferred beneficial interest exceeds 50% of the total beneficial interest in the facility, the building in which the facility is located, or the real estate on which the facility is located, the Department shall, require that the license of the facility expire 90 days after the date of the transfer. The Department shall notify the facility by certified mail of the expiration of the license at least 60 days before the date of the expiration.

The Department by rule shall prescribe procedures for relicensure under this subsection. The Department shall relicense a facility if the facility satisfies the requirements for license renewal otherwise established under this Act. The Department shall not relicense a facility if at the time of transfer there are any uncorrected violations. The Department may temporarily waive correction of one or more violations if the Department determines that all of the following requirements are met:

(1) Temporary noncorrection of the violation will not create an imminent risk of harm to a facility resident.

(2) A controlling person on behalf of all other controlling persons:

(A) has entered into a contract to obtain the materials or labor necessary to correct the violation, but the supplier or other contractor has failed to perform the terms of the contract and the inability of the nursing home to correct the violation is due solely to that failure; or

(B) is otherwise making a diligent good faith effort to correct the violation.

(Source: P.A. 81-223.)

(210 ILCS 45/3-207) (from Ch. 111 1/2, par. 4153-207)

Sec. 3-207. Statement of ownership.

(a) As a condition of the issuance or renewal of the license of any facility, the applicant shall file a statement of ownership. The applicant shall update the information required in the statement of ownership within 10 days of any change.

(b) The statement of ownership shall include the following:

(1) The name, address, telephone number, occupation or business activity, business address, and business telephone number of the person who is the owner of the facility that is the subject of the application or license and every person who owns any interest in the building in which the facility is located or any interest in the real estate on which the facility is located, if other than the owner of the facility, which is the subject of the application or license; and if the owner of the facility or an owner of the building or real estate is a partnership or corporation, the name of every partner and stockholder of each such the owner. ;

(1.5) The name, address, telephone number, occupation or business activity, business address, and business telephone number of the person who is the operator of the facility that is the subject of the application or license and every individual or entity that has any financial interest in the operation of the facility, if the owner of the facility does not operate the facility.

(2) The name and address of any facility, wherever located, any financial interest in which is owned by the applicant or by any other person with a financial interest in the ownership or operation of the facility that is the subject of the application or license, or in the ownership of the building in which the facility that is the subject of the application or license is located, or in the ownership of the real estate on which the facility that is the subject of the application or license is located, if the facility were required to be licensed if it were located in this State. ;

(3) Other information necessary to determine the identity and qualifications of an applicant or licensee to operate a facility in accordance with this Act as required by the Department in regulations.

(c) The information in the statement of ownership shall be public information and shall be available from the Department.

(Source: P.A. 85-1183.)

(210 ILCS 45/3-208) (from Ch. 111 1/2, par. 4153-208)

Sec. 3-208. Financial statement.

(a) Each licensee shall file annually, or more often as the Director shall by rule prescribe, an attested financial statement. The rules shall specify the circumstances under which a licensee must file an attested financial statement more frequently than annually as well as the information that must be included in any such statement and the form and manner of filing the statement. The Director may require a licensee to file such a statement as frequently as quarterly. The Director may order an audited financial statement of a particular facility by an auditor of the Director's choice, provided the cost of such audit is paid by the Department.

(b) No public funds shall be expended for the maintenance of any resident in a facility which has failed to file the financial statement required under this Section and no public funds shall be paid to or on behalf of a facility which has failed to file a statement.

(c) The Director of Public Health and the Director of Healthcare and Family Services shall promulgate under Sections 3-801 and 3-802, one set of regulations for the filing of these financial statements, and shall provide in these regulations for forms, required information, intervals and dates of filing and such other provisions as they may deem necessary.

(d) The Director of Public Health and the Director of Healthcare and Family Services shall seek the advice and comments of other State and federal agencies which require the submission of financial data from facilities licensed under this Act and shall incorporate the information requirements of these agencies so as to impose the least possible burden on licensees. No other State agency may require submission of financial data except as expressly authorized by law or as necessary to meet requirements of federal statutes or regulations. Information obtained under this Section shall be made available, upon request, by the Department to any other State agency or legislative commission to which such information is necessary for investigations or required for the purposes of State or federal law or regulation.

(Source: P.A. 95-331, eff. 8-21-07.)

(210 ILCS 45/3-209) (from Ch. 111 1/2, par. 4153-209)

Sec. 3-209. Every facility shall conspicuously post for display in an area of its offices accessible to residents, employees, and visitors the following:

(1) Its current license;

(1.5) The information required under subdivisions (b)(1) and (b)(1.5) of Section 3-207;

(2) A description, provided by the Department, of complaint procedures established under this Act and the name, address, and telephone number of a person authorized by the Department to receive complaints;

(3) A copy of any order pertaining to the facility issued by the Department or a court; and

(4) A list of the material available for public inspection under Section 3-210.

(Source: P.A. 81-1349.)

(210 ILCS 45/3-210) (from Ch. 111 1/2, par. 4153-210)

Sec. 3-210. A facility shall retain the following for public inspection:

(1) A complete copy of every inspection report of the facility received from the Department during the past 5 years;

(2) A copy of every order pertaining to the facility issued by the Department or a court during the past 5 years;

(3) A description of the services provided by the facility and the rates charged for those services and items for which a resident may be separately charged;

(4) A copy of the statement of ownership required by Section 3-207;

(4.5) A copy of all documents necessary to show that the asset and bond requirements under Section 3-103.15 have been met;

(5) A record of personnel employed or retained by the facility who are licensed, certified or registered by the Department of Professional Regulation; and

(6) A complete copy of the most recent inspection report of the facility received from the Department.

(Source: P.A. 85-1209)

(210 ILCS 45/3-213) (from Ch. 111 1/2, par. 4153-213)

Sec. 3-213. The Department shall require periodic reports and shall have access to and may reproduce or photocopy at its cost any books, records, and other documents maintained by (i) the facility, (ii) any individual or entity having any financial interest in the ownership of the facility, the building in which the facility is located, or the real estate on which the facility is located, or (iii) any individual or entity having any financial interest in the operation of the facility, to the extent necessary to carry out this Act and the rules promulgated under this Act. The Department shall not divulge or disclose the contents of a record under this Section in violation of Section 2-206 or as otherwise prohibited by this Act.

(Source: P.A. 83-1530.)

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