HB3814eng 96TH GENERAL ASSEMBLY

HB3814 Engrossed LRB096 03796 RPM 13826 b

AN ACT concerning public health.

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

Section 1. Short title. This Act may be cited as the Public Health Advocates Act.

Section 5. Statement of intent. The purpose of this Act is to insure effective and democratic representation of Illinois residents before federal, State, and local regulatory agencies, legislative bodies, and other public bodies, and to establish a practical means so that consumers can be provided with education and advice related to public health issues and decent health care services and products by:

(1) creating a nonprofit organization to represent the interests of Illinois residents before federal, State, and local regulatory agencies, legislative bodies, and other public bodies on matters relating to access to affordable prescription drugs and insurance, education and consultation relating to hospital and insurance billing and collection, and education about potential environmental and pharmaceutical dangers;

(2) providing for democratic accountability of the board of directors of the organization through open elections of directors with thorough financial disclosure requirements and campaign spending limitations;

(3) encouraging active citizen participation in the regulatory process through involvement in the activities of the organization; and

(4) creating an efficient method of funding for the organization, involving no burden on the taxpayers of this State.

Section 10. Definitions. In this Act:

"Campaign contribution" means:

(1) a gift subscription, loan, advance, deposit of money, or anything of value made for the purpose of electing a candidate to the board of directors of the Corporation; or

(2) a contract, promise, or agreement, express or implied, whether or not legally enforceable, to make any campaign contributions. "Campaign contribution" does not include (A) the value of services provided without compensation by individuals who volunteer a portion or all of their time on behalf of a candidate or political committee, or (B) the use of real or personal property and the cost of invitations, food, and beverages voluntarily provided by an individual to a candidate in rendering voluntary personal services on the individual's residential premises for activities related to the candidate's campaign if the cumulative value of the activities by the individual on behalf of any candidate does not exceed $100 for any election.

"Campaign expenditure" means:

(1) a purchase, payment, distribution, loan, advance, deposit, or gift of money or anything of value made for the purpose of electing a candidate to the board of directors of the Corporation; or

(2) a contract, promise, or agreement, express or implied, whether or not legally enforceable, to make any campaign expenditure. "Campaign expenditure" does not include the use of real or personal property and the cost of invitations, food, and beverages voluntarily provided by an individual to a candidate in rendering voluntary personal services on the individual's residential premises for activities related to the candidate's campaign if the cumulative value of the activities by the individual on behalf of any candidate does not exceed $100 for any election.

"Corporation" means the Public Health Advocates.

"Director" means any person serving on the board of directors of the Corporation.

"District" means a corporation district, the boundaries of which are congruent with the boundaries of the State's Congressional districts.

"District director" means a director elected from a district.

"Health care company" means a corporation or other entity engaged in the business of providing health care services, health care products, or both health care services and products within this State.

"Health care products" means products for the diagnosis, prevention, treatment, cure, or relief of a physical or mental health condition, illness, or injury or any other matter concerning the provision and delivery of products to maintain good health.

"Health care services" means services for the diagnosis, prevention, treatment, cure, or relief of a physical or mental health condition, illness, or injury or any other matter concerning the provision and delivery of services to maintain good health.

"Health insurance" means a contract relating to health care where a person or entity undertakes to indemnify or to pay a specified or determinable amount or benefit upon determinable contingencies.

"Immediate family" means a person's spouse and legal dependents.

"Member" means any person who meets the requirements for membership in the Corporation set forth in subsection (b) of Section 15 of this Act.

"Political committee" means any committee, club, association, or other group of persons that makes campaign expenditures or receives campaign contributions during the year before an election of the board of directors.

Section 15. Creation of Corporation; membership.

(a) There is created a nonprofit membership corporation to be known as the Public Health Advocates, referred to as the Corporation.

(b) The membership of the Corporation shall consist of all Illinois residents who have contributed money to the Corporation in at least an amount set by the board of directors in either its preceding or its current fiscal year as a minimum fee. Any person may resign from membership. The fee shall be no lower than $5.

Section 20. Duties and powers.

(a) It shall be the duty of the Corporation to effectively represent and protect the interests of Illinois health care consumers on matters affecting access to affordable prescription drugs and insurance, hospital and insurance billing and collection, and potential environmental and pharmaceutical dangers. All actions that it undertakes under the provisions of this Act shall be directed toward these duties.

(b) The Corporation shall have all powers accorded generally to, and shall be subject to all duties imposed generally upon, non-profit membership corporations under the laws of this State.

(c) The Corporation may seek tax-exempt status under State and federal law.

(d) The Corporation may solicit and accept gifts, grants, and loans, except as prohibited in this Act.

(e) The Corporation may conduct, support, and assist research, surveys, investigations, planning activities, conferences, demonstration projects, counseling, and public information activities concerning the interests of Illinois health care consumers.

(f) The Corporation may contract for services that cannot reasonably be performed by its employees.

(g) The Corporation may represent the interests of its members before federal, State, and local regulatory agencies, legislative bodies, and other public bodies on matters affecting health care consumers. The Corporation's representation shall be on behalf of Illinois residents as a whole or substantial numbers and is subject to the rules and regulations of the governing agency or body.

(h) The Corporation may support or oppose initiatives or referenda concerning matters affecting public health.

(i) The Corporation shall have, in addition to the rights and powers enumerated in this Act, any other incidental rights and powers as are reasonably necessary to carry out the foregoing powers and duties.

Section 25. Board of directors.

(a) The affairs of the Corporation shall be managed by a board of directors.

(b) There shall be one director for each board district. Corporation districts shall be divided into 2 groups for the purpose of establishing terms for which the directors shall be elected in each group. One group shall be comprised of the even-numbered board districts and the odd-numbered board districts shall comprise the other group.

(c) The interim board, within 60 days after its appointment, shall meet and publicly determine by lot which group shall be the first group and which group shall be the second group. The Governor shall appoint the interim board members.

(d) The first election of directors of the board is to be held in accordance with Section 45 of this Act. Subsequent elections of directors of the board shall be held every 2 years after the first election. The board may change the election date for the second election to up to one month before or after the second anniversary of the first election. All subsequent elections shall occur every 2 years on the anniversary of the second election. If the election day falls on a weekend or holiday, the election shall occur on the next business day. In the year following a decennial redistricting, all directors' terms shall end and elections for directors from the redrawn board districts shall be held. Until the election that follows the first redistricting after the effective date of this Act, all elected members of the board shall be elected for terms of 2 years.

(e) Interim and elected board members shall serve until their successors are elected and have qualified.

(f) Within 45 days after the redistricted board districts are enacted, the board shall publicly allocate terms by lot between the 2 groups of districts as provided in paragraph (b) of this subsection. Board members or their successors from the first group shall be elected for successive terms of 2 years, 4 years, and 4 years and members or their successors from the second group shall be elected for successive terms of 4 years, 4 years, and 2 years. In the year following a decennial redistricting, all directors' terms shall end and elections for directors from the redrawn board districts shall be held.

(g) In the event that board districts are redrawn for reasons other than a decennial redistricting, within 45 days after the redistricted county board districts are enacted, the board shall publicly allocate terms by lot between the 2 groups of districts as provided in paragraph (b) of this subsection. The board shall select terms for both groups in a manner consistent, to the extent possible, with subsection (f) of this Section to ensure staggered elections until a decennial redistricting occurs.

(h) Directors shall be residents of the State of Illinois and members of the Corporation. No director may hold any elective position in federal, State, or local government.

(i) No director nor member of his or her immediate family may be, either directly or indirectly, employed for compensation as a staff member or consultant of the Corporation.

(j) The board shall hold regular meetings at least once every 3 months on the dates and at the places as it may determine. Special meetings may be called by the president or by a majority of the directors upon at least 7 days prior written notice. Unless otherwise provided in the bylaws of the Corporation, a majority of the board of directors shall constitute a quorum. In no event, however, shall a quorum consist of less than one-third of the board of directors. The act of the majority of the directors present at a meeting at which a quorum is present shall be the act of the board of directors unless the act of a greater number is required by this Act or the Corporation's bylaws. A summary of the minutes of every board meeting shall be made available to each public library in the State upon request and to individuals upon request.

(k) A director may not receive any compensation for his or her services, but shall be reimbursed for necessary expenses, including travel expenses incurred in the discharge of duties. The board shall establish standard allowances for mileage, room, and meals and the purposes for which allowances may be made. The board shall determine the reasonableness and necessity for reimbursements.

(l) Directors and employees eligible to disburse funds shall be bonded. The costs of the bonds shall be paid by the Corporation.

(m) The appointed directors shall:

(1) inform Illinois residents, by the means provided for in this Act, of the existence, nature, and purposes of the Corporation, and shall encourage Illinois residents to participate in the Corporation's activities and to contribute to its operating funds;

(2) elect officers as provided in Section 50 of this Act;

(3) employ such staff as the directors deem necessary to carry out the purposes of this Act;

(4) make all necessary preparations for the first election of directors, oversee the election campaign, and tally the votes, as provided in Section 45 of this Act; and

(5) carry out all other duties and exercise all other powers accorded to the board of directors in this Act.

(n) One director shall be elected from each district in the State under procedures established in Section 45 of this Act. Each director shall have one vote in the board of directors. Elected directors shall be installed in office by the president of the outgoing board of directors.

(o) When a director dies, resigns, is disqualified, or otherwise vacates his or her office, the board of directors shall select within 3 months after the vacancy occurs a successor from the same district as the director for the remainder of the director's term of office. Any director may nominate any qualified person as successor. The board of directors shall select the successor from among those nominated by a two-thirds majority of the remaining directors present and voting. The successor shall be installed in office by the president of the board of directors.

(p) The elected board of directors shall have the following duties:

(1) maintain up-to-date membership rolls and to keep the rolls in confidence;

(2) maintain minutes, books, and records that shall reflect all the acts and transactions of the board of directors that shall be open to examination by any member during regular business hours;

(3) make (i) all reports, studies, and other information compiled by the Corporation under subsection (e) of Section 20 of this Act and (ii) all data pertaining to the finances of the Corporation available for public inspection during regular business hours;

(4) prepare quarterly statements of the financial and substantive operations of the Corporation, and make copies of the statements available to the general public;

(5) cause the Corporation's books to be audited by a certified public accountant at least once each fiscal year, and make the audit available to the general public;

(6) prepare and mail, as soon as practicable after the close of the Corporation's fiscal year, an annual report of the Corporation's financial and substantive operations to each member;

(7) report to the membership meeting the past and projected activities and policies of the Corporation;

(8) employ an executive director and direct and supervise his or her activities; and

(9) carry out all other duties and responsibilities imposed upon the Corporation and the board of directors by this Act.

The Corporation treasurer shall reimburse directors for actual expenses necessarily incurred by them in the performance of their duties.

Section 30. Director statement of financial interest. Each director shall file annually with the Corporation a current statement of financial interest that provides all the information required to be in reports submitted by candidates for election to the board pursuant to subsection (d) of Section 45 of this Act.

Section 35. Nonpartisan Corporation. The Corporation may not sponsor, endorse, or otherwise support or oppose any political party or the candidacy of any person for public office.

Section 40. Mailing procedure.

(a) As used in this Section:

"Enclosure" means a card, leaflet, envelope, or combination thereof furnished by the Corporation under this Section.

"Mailing" means any communication by a State agency or unit of local government that is sent through the United States Postal Service to more than 500 persons within a 12-month period.

"Agency" means any officer, department, board, commission, institution, or entity of the executive or legislative branches of the State and any unit of local government.

(b) To accomplish its powers and duties under this Act, the Corporation may prepare and furnish to any agency an enclosure to be included with a mailing by that agency subject to the following limitations:

(1) An agency furnished with an enclosure shall include the enclosure within the mailing designated by the Corporation.

(2) An enclosure furnished by the Corporation under this Section shall be provided to the agency in a reasonable period of time in advance of the mailing.

(3) An enclosure furnished by the Corporation under this Section shall be limited to informing the reader of the purpose, nature, and activities of the Corporation as set forth in this Act and informing the reader that it may become a member in the Corporation, maintain membership in the Corporation, and contribute money to the Corporation directly.

(c) The Corporation shall reimburse each agency for all reasonable incremental costs incurred by the agency in complying with this Section above the agency's normal mailing and handling costs, provided that the agency shall first furnish the Corporation with an itemized accounting of the additional cost and the Corporation shall not be required to reimburse the agency for postage costs if the weight of the Corporation's enclosure does not exceed 0.35 ounce avoirdupois. If the Corporation's enclosure exceeds that weight, then it shall only be required to reimburse the agency for postage cost over and above what the agency's postage cost would have been had the enclosure weighed only 0.35 ounce avoirdupois.

(d) In the event that an agency is furnished with an enclosure by the Corporation and by the Citizens Utility Board, as provided in Section 9 of the Citizens Utility Board Act, designated for the same mailing, the agency shall include whichever enclosure it received first within the designated mailing. The agency shall notify the Corporation or the Citizens Utility Board, as the case may be, that its mailing will not go out until the next mailing. It shall include the other enclosure with the next mailing designated by the entity that furnished it.

Section 45. Election of directors.

(a) The time of elections shall be as follows:

(1) When the membership of the Corporation has reached 1,000 persons and the Corporation has received $10,000 in contributions, the appointed directors shall promptly fix a date for the first election of directors. The election shall be held not less than 4 months and not more than 6 months after the membership and contributions have reached the prescribed levels.

(2) Subsequent elections of directors shall be held at 2 year intervals after the first election as provided in Section 25 of this Act. The dates of the elections shall be fixed not less than 4 months in advance by the board of directors.

(b) To be eligible for election to the board of directors, a candidate must:

(1) be a resident of the district that he or she seeks to represent;

(2) have his or her nomination certified by the board of directors under subsection (c) of this Section;

(3) submit to the board of directors a statement of financial interests in accordance with subsection (d) of this Section and a statement of personal background and positions in accordance with subsection (e) of this Section; and

(4) make the affirmation prescribed in paragraph (5) of subsection (f) of this Section.

(c) A candidate for election to the board of directors shall submit to the board, not later than 60 days prior to the election, a statement of intent to be a candidate. Upon receipt of the statement of intent, the board shall certify the nomination of the candidate.

(d) A candidate for election to the board of directors shall submit to the board, not later than 60 days prior to the election, a statement of financial interest upon a form approved by the board of directors. The statement of financial interests shall include the following information:

(1) the occupation, employer, and position at place of employment of the candidate and of his or her immediate family members;

(2) a list of all corporate directorships or other offices, and of all fiduciary relationships, held in the past 3 years by the candidate and by his or her immediate family members;

(3) the name of any corporation in which the candidate holds a security, the current market value of which is $2,500 or more;

(4) the name of any corporation in which the candidate's immediate family members hold a security, the current market value of which is $2,500 or more;

(5) an affirmation, subject to penalty of perjury, that the information contained in the statement of financial interest is true and complete.

(e) A candidate for election to the board of directors shall submit to the board, not later than 60 days prior to the election, a 2 page statement concerning his or her personal background and positions on issues relating to public health initiatives, health care services, health care products, or the operations of the Corporation. The statement shall contain an affirmation, subject to penalty of perjury, that the candidate meets the qualifications prescribed for directors in subsection (d) of this Section and is a resident of the district that he or she seeks to represent. The board of directors may limit the number of words a candidate may use on the statement.

(f) Restrictions on and reporting of campaign contributions and expenditures shall be as follows:

(1) each candidate may accept no more than $100 in campaign contributions from any person or political committee from one year before the date of an election through the date of the election;

(2) each candidate shall keep complete records of all contributions to his or her campaign of $25 or more made from one year before the date of an election through the date of the election;

(3) each candidate who avails himself or herself of the Corporation's distribution of his or her statement of personal background and positions under subparagraph (C) of paragraph (1) of subsection (g) may incur no more than $1,000 in campaign expenditures from the time he or she commences circulation of petitions for nomination or from 4 months prior to the election, whichever is earlier, through the date of the election;

(4) each candidate shall keep complete records of his or her campaign expenditures, and shall make the records available for inspection by the Corporation; and

(5) no earlier than 14 days and no later than 8 days preceding the election and no earlier than 21 days and no later than 30 days after the election, each candidate for election to the board shall submit to the board an accurate statement of his or her campaign contributions, swearing that he or she has fully complied with the requirements of this subsection.

(g) Election procedures shall be as follows:

(1) The board of directors shall send by first class mail to each member in districts where more than one candidate has been certified no sooner than 21 days and not later than 14 days before the date fixed for the election:

(A) an official ballot listing all candidates for district director from the member's district whose nominations the board has certified and who have complied with the requirements of subsections (d) and (e) of this Section;

(B) each candidate's statement of financial interest; and

(C) the statement of personal background and position of each candidate who requests the mailing of his or her statement at the time he or she submits it to the board.

(2) Each member may cast a vote in the election by returning his or her official ballot, properly marked, to the head office of the Corporation by 8 p.m. of the date fixed for the election or, if it is sent by mail, the ballot shall be deemed to have been received on time if it is postmarked on the date of the election.

(3) Voting shall be by secret ballot.

(4) The board of directors shall tally votes with all reasonable speed and shall inform the membership promptly of the names of the candidates elected.

(5) In each district, the district director candidate with the most votes shall be declared elected.

(h) The president of the board of directors shall install, within 30 days after the election, all elected candidates who meet the qualifications under subsection (b) of this Section.

(i) The board of directors may prescribe rules for the conduct of elections and election campaigns not inconsistent with this Act.

Section 50. Officers.

(a) At the first regular meeting of the board of directors at which a quorum is present subsequent to the initial appointments of Directors and at the first regular meeting of the board at which a quorum is present subsequent to the installation of new directors following each election, the board shall elect by majority vote of members present and voting from among the directors a president, a vice president, a secretary, and a treasurer. The board shall also have the power to elect a comptroller and any other officers as it deems necessary.

(b) Officers shall be installed by the president immediately upon their election. The term of office of officers shall be one year. An officer may resign or may be removed from office by a two-thirds vote of all the directors. After an officer's term of office has expired, the officer shall continue to serve until his or her successor is installed. When an officer dies, resigns, is removed, or otherwise vacates his or her office, the board of directors shall elect a successor to serve out the officer's term of office.

(c) Officers shall exercise the powers and perform the duties as are prescribed by this Act or as delegated to them by the board of directors.

Section 55. Annual membership meeting.

(a) An annual meeting of the membership shall be held once each year on a date and at a place within the State to be determined by the board of directors.

(b) All members shall be eligible to attend, participate in, and vote in the annual membership meeting.

(c) The form of the annual membership meeting shall be as provided in the law of this State regarding nonprofit membership corporations.

(d) The annual membership meeting shall be open to the public.

Section 60. Corrupt practices and conflicts of interest.

(a) The Corporation and its directors, employees, or agents shall not accept anything of monetary value above $100 from any public official or official or employee of any health care company or employer covered by this Act or agent thereof, except as otherwise provided in this Act.

(b) No public official or official or employee of a health care company or employer covered by this Act or agent thereof shall offer anything of monetary value to, or accept anything of monetary value from, the Corporation or its directors, employees, or agents except as otherwise provided in this Act.

(c) The office of a director found in violation of subsection (a) or (b) of this Section shall be declared vacant.

Section 65. Initial expenses. For the purposes of meeting the necessary expenses of postage, preparing and printing enclosures, initial organization, and operation of the Corporation for the period commencing on the effective date of this Act and continuing until the first election of the board of directors under Section 45, the Corporation or any individual may borrow such moneys as it requires, including moneys which may be loaned by the State from funds appropriated for that purpose by law. Moneys borrowed by the Corporation or any individual shall subsequently be repaid with appropriate interest over a reasonable period of time. Any loans that may be made to the Corporation by the State shall be repaid within 24 months from the date the loan is made.

Section 70. Construction of the Act.

(a) The provisions of this Act shall be construed in a manner to enable the Corporation to effectively represent and protect the interests of Illinois residents on matters affecting public health.

(b) Nothing in this Act shall be construed to limit the right of any person to initiate, intervene in, or otherwise participate in any regulatory agency proceeding or court action, nor to relieve any regulatory agency or court of any obligation, or to affect its discretion, to permit intervention or participation by any person in any proceeding or action.

Section 75. The Citizens Utility Board Act is amended by changing Section 9 as follows:

(220 ILCS 10/9) (from Ch. 111 2/3, par. 909)

Sec. 9. Mailing procedure.

(1) As used in this Section:

(a) "Enclosure" means a card, leaflet, envelope or combination thereof furnished by the corporation under this Section.

(b) "Mailing" means any communication by a State agency, other than a mailing made by the Department of Revenue under the Senior Citizens and Disabled Persons Property Tax Relief and Pharmaceutical Assistance Act, that is sent through the United States Postal Service to more than 50,000 persons within a 12-month period.

(c) "State agency" means any officer, department, board, commission, institution or entity of the executive or legislative branches of State government.

(2) To accomplish its powers and duties under Section 5 this Act, the corporation, subject to the following limitations, may prepare and furnish to any State agency an enclosure to be included with a mailing by that agency.

(a) Except as provided in Section 40 of the Public Health Advocates Act, a A State agency furnished with an enclosure shall include the enclosure within the mailing designated by the corporation.

(b) An enclosure furnished by the corporation under this Section shall be provided to the State agency a reasonable period of time in advance of the mailing.

(c) An enclosure furnished by the corporation under this Section shall be limited to informing the reader of the purpose, nature and activities of the corporation as set forth in this Act and informing the reader that it may become a member in the corporation, maintain membership in the corporation and contribute money to the corporation directly.

(d) Prior to furnishing an enclosure to the State agency, the corporation shall seek and obtain approval of the content of the enclosure from the Illinois Commerce Commission. The Commission shall approve the enclosure if it determines that the enclosure (i) is not false or misleading and (ii) satisfies the requirements of this Act. The Commission shall be deemed to have approved the enclosure unless it disapproves the enclosure within 14 days from the date of receipt.

(3) The corporation shall reimburse each State agency for all reasonable incremental costs incurred by the State agency in complying with this Section above the agency's normal mailing and handling costs, provided that:

(a) The State agency shall first furnish the corporation with an itemized accounting of such additional cost; and

(b) The corporation shall not be required to reimburse the State agency for postage costs if the weight of the corporation's enclosure does not exceed .35 ounce avoirdupois. If the corporation's enclosure exceeds that weight, then it shall only be required to reimburse the State agency for postage cost over and above what the agency's postage cost would have been had the enclosure weighed only .35 ounce avoirdupois.

(Source: P.A. 87-205.)

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