SB1292 98TH GENERAL ASSEMBLY

LRB098 07058 RPM 37117 b

98TH GENERAL ASSEMBLY
State of Illinois
2013 and 2014
SB1292

Introduced 2/5/2013, by Sen. Andy Manar

SYNOPSIS AS INTRODUCED:

See Index

Amends the Nursing Home Care Act. Provides that all federal moneys received as a result of expenditures from the Long Term Care Monitor/Receiver Fund and all interest earned on moneys in the Fund shall be deposited into the Fund (rather than all federal moneys received as a result of expenditures from the Fund shall be deposited into the Fund). Provides that, with regard to the Long Term Care Monitor/Receiver Fund, deposits, balances, and expenditures shall be separately maintained for all federal fees, fines, and penalties and all State fees, fines, and penalties paid into the Fund. Provides that this shall include all interest earned and all federal dollars received as a result of expenditures from the Fund. Provides that with the exception of expenditures for monitors and receivers appointed by the courts or by the Department of Public Health under the authority granted in the Act, all authority for transfers or expenditures from the Fund is hereby suspended beginning fiscal year 2014; beginning in fiscal year 2014, expenditures in excess of those for monitors and receivers shall be made after consultation with the Long-Term Care Facility Advisory Board and based on the estimated amount of fines and penalties collected; and any funds transferred or expended in violation of this provision shall be immediately restored. Sets forth provisions concerning the Director of Public Health's plan for the reduction of violations and fines and list of recommended expenditures in excess of the amount needed for monitors and receivers. Provides that the Fund is not subject to sweeps, administrative chargebacks, or any other fiscal or budgetary maneuver that would in any way transfer any amount from the Fund into any other fund of the State. Amends various Acts to make conforming changes. Effective immediately.

FISCAL NOTE ACT MAY APPLY

A BILL FOR

AN ACT concerning health facilities.

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

Section 5. The Department of Public Health Powers and Duties Law of the Civil Administrative Code of Illinois is amended by changing Section 2310-130 as follows:

(20 ILCS 2310/2310-130) (was 20 ILCS 2310/55.82)

Sec. 2310-130. Medicare or Medicaid certification fee; Health Care Facility and Program Survey Fund. To establish and charge a fee to any facility or program applying to be certified to participate in the Medicare program under Title XVIII of the federal Social Security Act or in the Medicaid program under Title XIX of the federal Social Security Act to cover the costs associated with the application, inspection, and survey of the facility or program and processing of the application. The Department shall establish the fee by rule, and the fee shall be based only on those application, inspection, and survey and processing costs not reimbursed to the State by the federal government. The fee shall be paid by the facility or program before the application is processed.

The fees received by the Department under this Section shall be deposited into the Health Care Facility and Program Survey Fund, which is hereby created as a special fund in the State treasury. Moneys in the Fund shall be appropriated to the Department and may be used for any costs incurred by the Department, including personnel costs, in the processing of applications for Medicare or Medicaid certification.

Beginning July 1, 2011, the Department shall employ a minimum of one surveyor for every 500 licensed long term care beds. Beginning July 1, 2012, the Department shall employ a minimum of one surveyor for every 400 licensed long term care beds. Beginning July 1, 2013, the Department shall employ a minimum of one surveyor for every 300 licensed long term care beds.

The Department shall establish a surveyor development unit funded, subject to Section 3-518 of the Nursing Home Care Act, from money deposited in the Long Term Care Monitor/Receiver Fund.

(Source: P.A. 96-1372, eff. 7-29-10; 97-489, eff. 1-1-12.)

Section 10. The Equity in Long-term Care Quality Act is amended by changing Section 15 as follows:

(30 ILCS 772/15)

Sec. 15. Equity in Long-term Care Quality Fund.

(a) There is created in the State treasury a special fund to be known as the Equity in Long-term Care Quality Fund. Grants shall be funded using federal civil monetary penalties collected and deposited into the Long Term Care Monitor/Receiver Fund established under the Nursing Home Care Act. Subject to appropriation and Section 3-518 of the Nursing Home Care Act, moneys in the Fund shall be used to improve the quality of nursing home care in areas without access to high-quality long-term care. Interest earned on moneys in the Fund shall be deposited into the Fund.

(b) The Department may use no more than 10% of the moneys deposited into the Fund in any year to administer the program established by the Fund and to implement the requirements of the Nursing Home Care Act with respect to distressed facilities.

(Source: P.A. 96-1372, eff. 7-29-10.)

Section 15. The Abuse Prevention Review Team Act is amended by changing Section 50 as follows:

(210 ILCS 28/50)

Sec. 50. Funding. Notwithstanding any other provision of law, to the extent permitted by federal law, the Department shall use moneys from fines paid by facilities licensed under the Nursing Home Care Act, the Specialized Mental Health Rehabilitation Act, or the ID/DD Community Care Act for violating requirements for certification under Titles XVIII and XIX of the Social Security Act to implement the provisions of this Act. The Department shall use moneys deposited in the Long Term Care Monitor/Receiver Fund, subject to Section 3-518 of the Nursing Home Care Act, to pay the costs of implementing this Act that cannot be met by the use of federal civil monetary penalties.

(Source: P.A. 96-339, eff. 7-1-10; 97-38, eff. 6-28-11; 97-227, eff. 1-1-12; 97-813, eff. 7-13-12.)

Section 20. The Nursing Home Care Act is amended by changing Section 3-103 and by adding Section 3-518 as follows:

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

Sec. 3-103. 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 $1,990. 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. 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 3-518 3-517 of this Act, for the enforcement of this Act, for expenses related to surveyor development, and for implementation of the Abuse Prevention Review Team Act. All federal moneys received as a result of expenditures from the Fund and all interest earned on moneys in the Fund shall be deposited into the Fund. The Department may reduce or waive a penalty pursuant to Section 3-308 only if that action will not threaten the ability of the Department to meet the expenses required to be met by the Long Term Care Monitor/Receiver 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. 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. 96-758, eff. 8-25-09; 96-1372, eff. 7-29-10; 96-1504, eff. 1-27-11; 96-1530, eff. 2-16-11; 97-489, eff. 1-1-12.)

(210 ILCS 45/3-518 new)

Sec. 3-518. Long Term Care Monitor/Receiver Fund.

(a) With regard to the Long Term Care Monitor/Receiver Fund, deposits, balances, and expenditures shall be separately maintained for all federal fees, fines, and penalties and all State fees, fines, and penalties paid into the Fund. This shall include all interest earned and all federal dollars received as a result of expenditures from the Fund. With the exception of expenditures for monitors and receivers appointed by the courts or by the Department under the authority granted in this Act, all authority for transfers or expenditures from the Fund is hereby suspended beginning fiscal year 2014. Beginning in fiscal year 2014, expenditures in excess of those for monitors and receivers shall be made after consultation with the Long-Term Care Facility Advisory Board and based on the estimated amount of fines and penalties collected as described in subsection (c) of this Section. Any funds transferred or expended in violation of this subsection shall be immediately restored.

(b) In the first month of each fiscal year, the Director shall prepare a plan for the reduction of violations and fines for the new fiscal year. The Director's plan shall, at a minimum, include a quarterly joint meeting of surveyors, supervisors, providers, State and regional administrators, and federally-authorized long-term care ombudsman aimed at reducing violations of State and federal regulations. The Department shall solicit suggested topics from all potential attendees. To meet this requirement, the Department shall, at a minimum, post the solicitation for topics and notice of the meeting on its Internet website and request associations representing both providers and long-term care ombudsmen to notify their members.

(c) The plan shall also include an estimate of funds available in the Long Term Care Monitor/Receiver Fund for the upcoming fiscal year taking into account moneys required to be deposited into the Fund from all sources.

(d) Based on the estimate described in subsection (c) of this Section, the Director shall prepare a list of recommended expenditures in excess of the amount needed for monitors and receivers specifying the dollar amount for each to be expended for the fiscal year and identifying multi-year obligations. Expenditures associated with the Director's plan for the reduction of violations shall be given priority over all expenditures from the Fund, except those associated with payment for monitors and receivers.

(e) Prior to the implementation of the plan and the expenditure of funds for purposes other than the payment of monitors and receivers, the Director shall seek the advice of the Long-Term Care Facility Advisory Board, which shall meet as soon after the beginning of the fiscal year as practicable. Any changes to the plan or the proposed list of expenditures shall be submitted to the Advisory Board for their comment prior to implementation. All documents shall be sent electronically to Advisory Board members at least 48 hours in advance of a scheduled meeting.

(f) Notwithstanding any other law to the contrary, the Long Term Care Monitor/Receiver Fund is not subject to sweeps, administrative chargebacks, or any other fiscal or budgetary maneuver that would in any way transfer any amount from the Long Term Care Monitor/Receiver Fund into any other fund of the State.

Section 25. The ID/DD Community Care Act is amended by changing Section 3-103 as follows:

(210 ILCS 47/3-103)

Sec. 3-103. Application for license; financial statement.

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 Section 3-518 of the Nursing Home Care 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. 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. 96-339, eff. 7-1-10.)

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