HB0149 96TH GENERAL ASSEMBLY

LRB096 03858 DRJ 13892 b

96TH GENERAL ASSEMBLY
State of Illinois
2009 and 2010
HB0149

Introduced 1/14/2009, by Rep. Greg Harris

SYNOPSIS AS INTRODUCED:

See Index

Amends the Nursing Home Care Act. Changes the definition of "affiliate" and adds definitions of "affected party" and "controlling entity". Adds items that must be contained in an application for a license under the Act. Provides that in determining whether to grant or renew a license, the Department of Public Health shall consider the record of the applicant and others. Provides for a public hearing in connection with a license application. Authorizes the Director of Public health to impose conditions on probationary or other licenses. Makes changes concerning a transfer of ownership, denial of a license application, and other matters. 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 1-106, 3-103, 3-108, 3-109, 3-112, 3-116, 3-117, 3-118, 3-207, 3-208, 3-209, 3-213, 3-304.1, and 3-704 and by adding Sections 1-105.5, 1-108.5, 3-103.5, 3-103.10, and 3-109.5 as follows:

(210 ILCS 45/1-105.5 new)

Sec. 1-105.5. Affected party. "Affected party" means any resident in a facility that is the subject of a licensing application, any immediate family, guardian, or representative of such a resident, any person performing work in a facility that is the subject of a licensing application, any entity that represents persons performing work in a long-term care facility or facilities in this or any other State, and any consumer organization that engages in advocacy or legal representation on behalf of residents and their immediate families.

(210 ILCS 45/1-106) (from Ch. 111 1/2, par. 4151-106)

Sec. 1-106. Affiliate. "Affiliate" means: any person, entity, or facility with which a facility, applicant, or licensee is under common ultimate control; any person, entity, or facility over which a facility, applicant, or licensee, as applicable, exercises control, either directly or indirectly through any number of intermediate persons or entities; and any person, entity, or facility in which a facility, applicant, or licensee has any ownership interest, whether that interest is held directly or indirectly through any number of intermediate persons or entities.

"Affiliate" also means:

(1) With respect to a partnership, each partner thereof.

(2) With respect to a corporation, each officer, director and stockholder thereof.

(2.5) With respect to a company, each officer, director, member, and manager thereof.

(3) With respect to a natural person: any person related in the first degree of kinship to that person; each partnership and each partner thereof of which that person or any affiliate of that person is a partner; and each corporation in which that person or any affiliate of that person is an officer, director or stockholder.

Two or more persons, entities, facilities, applicants, or licensees are "affiliated" if they are affiliates with respect to each other.

In cases of a transfer of ownership, "affiliate" or "affiliated" includes any person or entity that will be an affiliate of the facility, applicant, or licensee, as applicable, following the proposed transaction.

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

(210 ILCS 45/1-108.5 new)

Sec. 1-108.5. Controlling entity. "Controlling entity" means:

(1) Any person or entity that exercises or has the authority, whether by contract, by virtue of an ownership interest, or otherwise, to direct or manage any aspect of the operation, management, or policy-setting for a facility, whether that control is held or exercised directly or indirectly through any number of employees, agents, or intermediate entities.

(2) Any person or entity that owns a partnership share in a facility, licensee, or applicant, as applicable, whether that share is held directly or indirectly through any number of intermediate persons or entities.

(3) Any person or entity that owns an interest of 5% or more in a facility, licensee, or applicant, as applicable, whether that interest is held directly or indirectly through any number of intermediate persons or entities, and whether that interest is held in the form of an equity share or shares, a membership interest, or in any other form or vehicle.

(4) Any person or entity that owns any partnership share or any interest of 5% or more in any other controlling entity, in the real estate or building on or in which a facility is located, or in any lease or sublease of the real estate, building, or other property comprising a facility, whether that share or interest is held directly or indirectly through any number of intermediate persons or entities.

(5) Any person or entity that provides financing for the facility or that owns an interest in a mortgage, deed of trust, note, or other obligation secured in whole or in part by the facility or by any property or assets thereof, whether that interest is held directly or indirectly through any number of intermediate persons or entities, provided that the value of the interest owned by the person or entity is equal to or exceeds 5% of the value of the property or assets used as security.

(6) Any person or entity that provides or is expected to provide services of any type to the facility and that is related in any way to the facility, any affiliate, or any controlling entity, by means including, but not limited to, common directors, officers, executives, partners, members or members or some degree of common ownership or control, whether direct or indirect.

"Controlling entity" does not include 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.

In cases of a transfer of ownership, "controlling entity" includes any person or entity that will be a controlling entity following the proposed transaction.

(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 name and professional background of all key personnel at the facility, as that term is defined by the Department in regulations;

(e) The name of each affiliate of the facility and each affiliate of the applicant and proposed licensee, together with a description of each affiliate's relationship to the facility, to the applicant and proposed licensee, and to other affiliates, if applicable, and a list of any facilities, whether in this State or in any other state, in which any affiliate has held a direct or indirect partnership interest or a direct or indirect ownership interest of 5% or more during the previous 5 years;

(f) The name of each controlling entity for the facility and each controlling entity for the applicant and proposed licensee, together with a description of each controlling entity's relationship to the facility, to the applicant and proposed licensee, and to other controlling entities, if applicable, and a list of any facilities, whether in this State or in any other state, in which any controlling entity has held a direct or indirect partnership interest or a direct or indirect ownership interest of 5% or more during the previous 5 years;

(g) Three years of detailed past financial data for the facility and for the applicant and proposed licensee, including, but not limited to, separate line items for nurse staffing and for employee benefit costs;

(h) Three years of detailed financial projections for the facility and for the applicant and proposed licensee, including, but not limited to, separate line items for nurse and for nursing assistant staffing and for employee benefit costs, together with an explanation of all assumptions made, an analysis comparing the past and projected data, and an explanation of any significant changes or discrepancies between the past and projected data;

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

(j) (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; .

(k) For the previous 3 years, all inspection reports and complaint investigation reports for the facility, for any other facilities in which a controlling entity has held a direct or indirect partnership interest or a direct or indirect ownership interest of 5% or more during the previous 3 years, and for any affiliated facilities;

(l) For the previous 3 years, average annual nurse staffing hours per resident per day (including information with respect to agency and contract staff), determined based on payroll data, with the actual payroll data submitted only upon request, unless such data is not available, in which case staffing data as reported on the U.S. Department of Health and Human Services "Nursing Home Compare" website may be substituted, and broken down by staff classification (RN, LVN or LPN, and C.N.A.) and between employee, agency, and contract staff, for the facility and for any other facilities in which a controlling entity has held a direct or indirect partnership share or a direct or indirect ownership interest of 5% or more during the previous 3 years, and for any affiliated facilities, unless such data is not available;

(m) Three years of past data and 3 years of projected data regarding payer mix in terms of Medicare, Medicaid, private pay, or any other payment method;

(n) Data regarding staff turnover during the preceding 3 years and any projections related to staff turnover;

(o) Any operational covenants required by any entities providing financing for the facility or for a change-of-ownership transaction;

(p) Service agreements entered into with or expected to be entered into with, or the likely or expected terms of agreements to be entered into with, persons or entities identified pursuant to paragraph (6) of Section 1-108.5 and subdivision (2)(f) of this Section;

(q) In case of a transfer of ownership, and in other cases when determined by the Department to be appropriate, a list identifying and providing a description of all of the following for the facility, for any other facilities in which a person or entity that will be a controlling entity following the transfer has held a direct or indirect partnership share or direct or indirect ownership interest of 5% or more during the previous 5 years, and for any affiliated facilities that will be affiliated following the transfer, for the previous 5 years:

(i) bankruptcies;

(ii) facility closures, whether voluntary or involuntary;

(iii) receiver appointments;

(iv) denials, suspensions, or revocations of any license, permit, or certificate of need;

(v) injunctions issued in proceedings against the facility initiated by a federal or State regulatory agency;

(vi) audits (not including internal audits), investigations, or fines related to the receipt or use of federal or state funds; and

(vii) administrative, civil, or criminal proceedings involving the facility related to quality of care, residents' rights, professional negligence, or wrongful death, that resulted in a final judgment or order or a judgment or order currently on appeal;

(r) Any forward-looking plans or projections (including, in case of a transfer of ownership, any plans or projections prepared in connection with the transaction) that relate to hours of care per resident per day, number of staff, occupancy rates, payer mix, or any other criteria that could affect quality of care as determined by the Department in regulations, together with an explanation for any assumptions made in preparing the projections; and

(s) In case of a transfer of ownership, a detailed description of the proposed transaction, including, without limitation:

(i) the sources and uses of funds for the transaction;

(ii) interest rates to be paid on any debt incurred for purposes of completing the transaction;

(iii) management or other fees related to the transaction;

(iv) the projected capital structure of the facility and any related entities following the transaction;

(v) any strategic alternatives considered in connection with the transaction;

(vi) industry analyses considered in connection with the transaction;

(vii) any operational covenants required by any entities providing financing for the transaction; and

(viii) any leases to be entered into in connection with the transaction.

If any of the information required in connection with an application cannot be submitted because a facility or applicant has not existed for the entire relevant period of time, data shall be submitted for as many years as the facility, applicant, or proposed licensee, as applicable, has been in existence.

(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. 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) The Department may exercise its discretion to require that the applicant provide any other information that the Department deems Other information necessary to determine the identity and qualifications of an applicant to operate a facility in accordance with this Act or to ensure that licensure review adequately protects the health, welfare, and safety of residents and assures accountability as stated in Section 3-101. The Department may promulgate regulations requiring that certain additional information be provided in every case, or for certain types of applications, or the Department may require additional information in connection with any individual application if necessary for the reasons described above. Any additional information required by the Department shall be provided promptly by the applicant and in compliance with any deadline set by the Department.

(5) Upon submission of a license application, the applicant shall post notice of its application prominently in each facility affected by the application. The notice shall be posted within 5 days of submission of the application in an area used frequently by facility residents, and the notice shall state that an application for license has been submitted, shall identify the applicant and proposed licensee and the facility affected, shall describe briefly the nature of the application, shall provide the World Wide Web address for the Department, and shall state that a copy of the application may be requested from the Department by any resident in the facility, by any immediate family, guardian, or representative of such a resident, by any person performing work in the facility, by any entity that represents persons performing work in a long-term care facility or facilities in this or in any other State, and by any consumer organization that engages in advocacy or legal representation on behalf of residents and their immediate families.

(6) Upon request, the Department shall provide a copy of a license application, any information submitted in support of such an application, and any other documents related to the application, to any affected party who has requested the information. The Department shall provide the copy within 10 days of the date the request is received. The affected party shall pay all costs of photocopying and transmission. Notwithstanding any other provision of law, the applicant is entitled to a complete unredacted copy of the application, except that materials may be redacted to protect the privacy of individual nursing home residents or the social security number of any individual. 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 operation.

(a) In determining whether to grant or renew a license under this Act, the Department shall also consider the record of the applicant, of any affiliate of the applicant, and of any controlling entity in operating facilities in this State and in other states. If the applicant, an affiliate, or a controlling entity has contracted with another individual or entity to manage a facility in this State or in another state, the Department shall consider the record of any such individual or entity.

(b) If a licensee or applicant enters into or intends to enter into an agreement with another person or entity for the management of the facility for which a license is sought under this Act, that agreement must be submitted to the Department, and the Department must approve that agreement as a condition of granting or renewing a license under this Act. The Department shall adopt rules that establish standards for approving such agreements.

(c) If a licensee or applicant enters into or intends to enter into an agreement with another person or entity for the management of a facility, the latter person or entity shall be deemed to be the licensee's agent for purposes of liability for the quality of care provided in the facility.

(210 ILCS 45/3-103.10 new)

Sec. 3-103.10. Public hearing.

(a) Any affected party may request a public hearing on a license application. Such a request must be submitted to the Department within 20 days of notice of the application having been posted in the facility or facilities subject to the application or within 20 days of notice of the application having been posted on the Department's World Wide Web site, whichever is later.

(b) If a public hearing is requested, it shall be held at least 30 days but no more than 50 days after the date of the request or after the date that a copy of the application was provided to the affected party, if requested, whichever is later. The parties may take discovery as permitted by the rules governing discovery in civil litigation in this State, beginning as soon as the request for a hearing is submitted. The hearing shall otherwise be conducted in accordance with the procedures stated in Sections 3-704 through 3-713, except that the hearing shall conclude within 50 days of the date of the request for a hearing or after the date that a copy of the application was provided to the affected party, if requested, whichever is later, and the Director's decision following a hearing under this Section shall be issued within 30 days of completion of the hearing.

(c) In case of a transfer of ownership, an affected party may request a public hearing to take place under subsection (b) before a decision whether to issue a probationary license is made, or may request that a public hearing take place following the inspection described in Section 3-116, or both. The parties may take discovery as permitted by the rules governing discovery in civil litigation in this State, beginning as soon as the request for a hearing is submitted. The hearing shall otherwise be conducted in accordance with the procedures stated in Sections 3-704 through 3-713, except that if the hearing is one requested to take place following the inspection described in Section 3-116, the hearing shall conclude at least 30 days before the expiration of the probationary license and the Director's decision following a hearing shall be issued at least 5 days before the expiration of the probationary license.

(d) Following a hearing under subsection (b) or subsection (c), and before the Director's decision, the parties may submit briefs to the Department.

(e) Any affected party who appeared for the hearing may seek judicial review under Section 3-713 and under the Administrative Review Law.

(f) A public hearing need not be held under this Section in case of a transfer of ownership if 3 or fewer facilities in total, located in any state or states, will be affected by the entire transaction at issue, including all related transactions. In such cases, written comments may be submitted by any affected party and shall be considered by the Department before its decision is made.

(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 may 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 fit, willing, and able responsible and suitable to operate or to direct or participate in the operation of a facility in a manner that will provide a proper standard of health care service for the community, 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;

(1.5) the Director finds that the person or persons under whose management or supervision the facility will be conducted, and the key personnel at the facility, have appropriate experience in managing a facility of the type for which a license is sought and are fit, willing, and able to operate or to direct or participate in the operation of a facility in a manner that will provide a proper standard of health care service for the community, by virtue of their experience, past records of compliance with lawful orders of the Department, and past performance at the facility or other facilities of the same type;

(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 approves the management agreement, if any, under subsection (c) of Section 3-103.5;

(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;

(4) the Director finds, having considered all information submitted in connection with the application, that the facility is financially and otherwise able, and intends, to continue in substantial compliance with all of the requirements of this Act and any regulations promulgated under this Act; and

(5) the Director finds that all other requirements for a license established by the Department have been satisfied.

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

(210 ILCS 45/3-109.5 new)

Sec. 3-109.5. Conditions.

(a) In addition to the provision for conditional licenses in Section 3-311, the Director may impose conditions on a probationary license or on a license issued pursuant to Section 3-109 in any case in which the Department determines it to be appropriate to ensure that licensure review adequately protects the health, welfare, and safety of residents and assures accountability as stated in Section 3-101. Conditions may include, but are not limited to, requirements that the facility provide additional financial or other information during the period of licensure, that the facility provide the Department with certain information regarding quality of care or staffing, that the facility submit to additional, unannounced inspections, or that the facility meet or maintain certain requirements regarding quality of care or staffing during the period of licensure.

(b) Any condition imposed must relate to one of the purposes for licensure as stated in Section 3-101 or to at least one of the requirements or standards for licensure as stated in this Act or in regulations promulgated by the Department pursuant to this Act. Conditions may be imposed for no longer than the term of the license. Violation of any condition imposed is a violation of this Act and conditions may be enforced through the mechanisms in Part 3 of this Article.

(c) The Department shall provide notice in writing to the applicant, and to any affected party who has requested notice, immediately upon making the decision to impose any conditions on licensure. The Department's notice shall include a clear and concise statement of the conditions, the reasons for their imposition, and notice of the opportunity for a hearing. If the applicant or an affected party desires to contest the conditions, written notice shall be provided to the Department of a request for a hearing within 10 days after receipt of the notice of conditions, except that a hearing need not be held if requested by an affected party in case of a transfer of ownership if 3 or fewer facilities in total, located in any state or states, will be affected by the entire transaction at issue, including all related transactions. If 3 or fewer facilities will be affected, written comments may be submitted by any affected party and shall be considered by the Department in making its final decision.

(d) If a hearing is requested under subsection (c), the applicant and any affected parties may participate, and the parties may take discovery as permitted by the rules governing discovery in civil litigation in this State. The hearing shall otherwise be conducted in accordance with the procedures stated in Sections 3-704 through 3-713. Any affected party who appeared for the hearing may seek judicial review under Section 3-713 and under the Administrative Review Law.

(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 there is a transfer of ownership in a facility or in a licensee 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 120 30 days prior to final transfer. The transferee must obtain its new probationary license before the transfer is completed, and the existing license becomes null and void immediately upon transfer.

(b) The transferor shall notify the Department at least 120 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, provided that nothing in this paragraph shall be understood to relieve the transferee of its obligation to obtain a new probationary license before the transfer may be completed.

(c) The Department shall adopt regulations defining "transfer of ownership" for purposes of this Section. At a minimum, "transfer of ownership" shall include any situation in which the right to control a facility or a licensee is to be transferred, as well as any situation in which a majority or controlling minority interest in a facility or in a licensee is to be transferred, whether that interest is held directly or indirectly through any number of intermediary persons or entities.

(d) Whenever there is a transfer of ownership in a facility or in a licensee that does not meet the threshold set by the Department for a transfer of ownership under subsection (c), the transferor or transferee shall notify the Department of the transfer within 14 days after its occurrence. The notification shall identify by name and address the transferor and the transferee and shall specify the nature and amount of the transferred interest.

(e) A monetary penalty may be imposed for any violation of this Section, with the penalty to be at least $25,000 per facility per day that the Section is violated.

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

(210 ILCS 45/3-116) (from Ch. 111 1/2, par. 4153-116)

Sec. 3-116. If the applicant has not been previously licensed, in the case of a transfer of ownership under Section 3-112, or if the facility is not in operation at the time application is made, the Department shall issue only a probationary license. A probationary license shall be valid for 120 days unless sooner suspended or revoked under Section 3-119. Within 30 days prior to the termination of a probationary license, and at least 40 days but not more than 60 days prior to the termination of a probationary license in transfer of ownership cases, the Department shall fully and completely inspect the facility. Within 10 days of the inspection, the Department shall provide a copy of the report following that inspection to any affected party who has requested a hearing or a copy of the licensing application. If, after considering the evidence presented at any hearing, if one was held, the Director determines that and, if the facility meets the applicable requirements for licensure, the Department shall issue a license under Section 3-109. If the Department finds that the facility does not meet the requirements for licensure but has made substantial progress toward meeting those requirements, the license may be renewed once for a period not to exceed 120 days from the expiration date of the initial probationary license. In that case, an affected party may request that a hearing under Section 3-103.10 is held before expiration of the renewal period and before any final decision is made whether to issue a license under Section 3-109.

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

(210 ILCS 45/3-117) (from Ch. 111 1/2, par. 4153-117)

Sec. 3-117. An application for a license may be denied for any of the following reasons:

(1) Failure to meet any of the minimum standards set forth by this Act or by rules and regulations promulgated by the Department under this Act.

(2) Conviction of the applicant, or if the applicant is a firm, partnership or association, of any of its members, or if a corporation, the conviction of the corporation or any of its officers or stockholders, or of the person designated to manage or supervise the facility, of a felony, or of 2 or more misdemeanors involving moral turpitude, during the previous 5 years as shown by a certified copy of the record of the court of conviction.

(3) Personnel insufficient in number or unqualified by training or experience to properly care for the proposed number and type of residents.

(4) Insufficient financial or other resources to operate and conduct the facility in accordance with standards promulgated by the Department under this Act.

(5) Revocation, rescission, cancellation, termination, involuntary suspension, denial, or refused renewal of a facility license, permit, or certificate of need during the previous 5 years, if such prior license was issued to the individual applicant, a controlling entity, an owner or controlling combination of owners of the applicant; or any affiliate of the individual applicant or any controlling person, or any affiliated entity owner of the applicant and such individual applicant, controlling owner of the applicant or affiliate of the applicant was a controlling owner of the prior license; provided, however, that before denying the denial of an application for a license pursuant to this subsection, the Department must consider whether be supported by evidence that such prior revocation, rescission, cancellation, termination, involuntary suspension, denial, or refused renewal renders the applicant unqualified or incapable of meeting or maintaining a facility in accordance with the standards and rules promulgated by the Department under this Act.

(6) That the facility is not under the direct supervision of a full-time administrator, as defined by regulation, who is licensed, if required, under the Nursing Home Administrators Licensing and Disciplinary Act.

(7) The applicant or an affiliate or controlling entity has demonstrated a history of noncompliance, as defined by the Department in regulations promulgated pursuant to this Act, with the standards for licensure of long-term care facilities of any state in which the applicant or controlling person has or has had long-term care facilities, or with federal standards for certification of long-term care facilities.

(8) The applicant or an affiliate or controlling entity, in current and prior ownership, operation, or management of long-term care facilities, has not complied with all lawful orders of suspension, receivership, temporary management, or administrative penalty issued by the Department or by other authorities with similar responsibilities in other states or by the federal Centers for Medicare and Medicaid Services.

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

(210 ILCS 45/3-118) (from Ch. 111 1/2, par. 4153-118)

Sec. 3-118. (a) Immediately upon the denial of any application or reapplication for a license under this Article, the Department shall notify the applicant in writing. Notice of denial shall include a clear and concise statement of the violations of Section 3-117 on which denial is based and notice of the opportunity for a hearing under Section 3-703. If the applicant desires to contest the denial of a license, it shall provide written notice to the Department of a request for a hearing within 10 days after receipt of the notice of denial. The Department shall commence the hearing under Section 3-703.

(b) Upon the granting, granting with conditions, or denial of any application or reapplication for a license under this Article, the Department shall post notice of its decision on the World Wide Web within 10 days. The Department shall also immediately provide written notice to any affected party who requested a public hearing or a copy of the application. This written notice shall inform the affected party of the opportunity for a hearing. If the affected party desires to contest the Department's decision, it shall provide written notice to the Department of a request for a hearing within 10 days after receipt of the notice of the Department's decision, except that a hearing may not be requested by an affected party in case of a transfer of ownership if 3 or fewer facilities in total, located in any state or states, will be affected by the entire transaction at issue, including all related transactions. If 3 or fewer facilities will be affected, written comments may be submitted by any affected party and shall be considered by the Department in making its final decision.

(c) If a hearing is requested under subsection (b), the applicant and any affected parties may participate, and the parties may take discovery as permitted by the rules governing discovery in civil litigation in this State. The hearing shall otherwise be conducted in accordance with the procedures stated in Sections 3-704 through 3-713. The Department may stay its initial decision upon request for a hearing and upon good cause shown, as determined by the Department. Any affected party who appeared for the hearing may seek judicial review under Section 3-713 and under the Administrative Review Law.

(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, Social Security Number, telephone number, occupation or business activity, business address, and business telephone number of the person or entity who is the owner of the facility, of each affiliate of the facility, licensee, or applicant, as applicable, and of each controlling entity for the facility. and every person who owns the building in 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 is a partnership or corporation, the name of every partner and stockholder of the owner;

(1.5) The name, address, telephone number, occupation or business activity, business address, and business telephone number of the person who manages 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 manage the facility.

(2) The name and address of any facility, wherever located, any financial interest in which is owned by the applicant, or by an affiliate or controlling entity of the applicant or facility, 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), (b)(1.5), and (b)(2) 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 45/3-213) (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 the facility or a controlling entity 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.)

(210 ILCS 45/3-304.1)

Sec. 3-304.1. Public computer access to information.

(a) The Department must make information regarding nursing homes in the State available to the public in electronic form on the World Wide Web, including all of the following information:

(1) who regulates nursing homes;

(2) information in the possession of the Department that is listed in Sections 3-210 and 3-304;

(3) deficiencies and plans of correction;

(4) enforcement remedies;

(5) penalty letters;

(6) designation of penalty monies;

(7) the U.S. Department of Health and Human Services' Health Care Financing Administration special projects or federally required inspections;

(8) advisory standards;

(9) deficiency-free surveys; and

(10) enforcement actions and enforcement summaries;

(11) a list of licensure applications submitted to the Department, together with a short description of the applicant, the nature of the application, and its current status, with the list to be updated within 10 days of the submission of any application, the submission of any additional information, or any change in status; and

(12) an explanation of the process for submitting a complaint under Section 3-702, as well as any forms that may be used to submit such a complaint.

(b) No fee or other charge may be imposed by the Department as a condition of accessing the information.

(c) The electronic public access provided through the World Wide Web shall be in addition to any other electronic or print distribution of the information.

(d) Except as otherwise stated, the The information shall be made available as provided in this Section in the shortest practicable time after it is received by the Department publicly available in any other form.

(Source: P.A. 91-290, eff. 1-1-00.)

(210 ILCS 45/3-704) (from Ch. 111 1/2, par. 4153-704)

Sec. 3-704. A request for a hearing by aggrieved persons or an affected party shall be taken to the Department as follows:

(a) Upon the receipt of a request in writing for a hearing, the Director or a person designated in writing by the Director to act as a hearing officer shall conduct a hearing to review the decision.

(b) Before the hearing is held notice of the hearing shall be sent by the Department to the person making the request for the hearing and to the person making the decision which is being reviewed. In the notice the Department shall specify the date, time and place of the hearing which shall be held not less than 10 days after the notice is mailed or delivered. The notice shall designate the decision being reviewed. The notice may be served by delivering it personally to the parties or their representatives or by mailing it by certified mail to the parties' addresses.

(c) The Department shall commence the hearing within 30 days of the receipt of request for hearing. The hearing shall proceed as expeditiously as practicable, but in all cases shall conclude within 90 days of commencement.

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

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