HB5697 99TH GENERAL ASSEMBLY

LRB099 17103 MJP 41461 b

99TH GENERAL ASSEMBLY
State of Illinois
2015 and 2016
HB5697

Introduced , by Rep. Kelly M. Cassidy

SYNOPSIS AS INTRODUCED:

210 ILCS 45/1-114.2 new
210 ILCS 45/3-109	from Ch. 111 1/2, par. 4153-109
210 ILCS 45/3-117	from Ch. 111 1/2, par. 4153-117
210 ILCS 45/3-119	from Ch. 111 1/2, par. 4153-119
210 ILCS 45/3-202.7 new
210 ILCS 45/3-602	from Ch. 111 1/2, par. 4153-602

Amends the Nursing Home Care Act. Prohibits a person from establishing, operating, maintaining, offering, or advertising a facility within this State without providing to the Department of Public Health proof of liability insurance coverage in an amount not less than $1,000,000 per occurrence. Defines "liability insurance". Authorizes the Department to suspend, revoke, or refuse to issue or renew a license if the facility fails to have or maintain liability insurance coverage. Provides that the failure to maintain liability insurance coverage during the term of a facility's license shall be a separate "Type B" violation for each resident of the facility for each month, or part of a month, in which the facility did not have the minimum required liability insurance. Provides that a licensee shall pay 3 times the actual damages (instead of paying the actual damages), and costs and attorney's fees, to a facility resident whose rights, as specified in certain provisions of the Act, are violated.

FISCAL NOTE ACT MAY APPLY

A BILL FOR

AN ACT concerning regulation.

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

Section 5. The Nursing Home Care Act is amended by changing Sections 3-109, 3-117, 3-119, and 3-602 and by adding Sections 1-114.2 and 3-202.7 as follows:

(210 ILCS 45/1-114.2 new)

Sec. 1-114.2. Liability insurance. "Liability insurance" means insurance on risks based upon neglect of a resident for which a licensee is or may be responsible.

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

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

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

(2) 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

(3) that the facility is covered by liability insurance as required by this Act; and

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

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

(210 ILCS 45/3-117) (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, including failure to have or maintain liability insurance as required by this Act, and in accordance with contractual obligations assumed by a recipient of a grant under the Equity in Long-term Care Quality Act and the plan (if applicable) submitted by a grantee for continuing and increasing adherence to best practices in providing high-quality nursing home care.

(5) Revocation of a facility license during the previous 5 years, if such prior license was issued to the individual applicant, a controlling owner or controlling combination of owners of the applicant; or any affiliate of the individual applicant or controlling 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 the denial of an application for a license pursuant to this subsection must be supported by evidence that such prior revocation 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) That the facility is in receivership and the proposed licensee has not submitted a specific detailed plan to bring the facility into compliance with the requirements of this Act and with federal certification requirements, if the facility is certified, and to keep the facility in such compliance.

(Source: P.A. 95-331, eff. 8-21-07; 96-1372, eff. 7-29-10.)

(210 ILCS 45/3-119) (from Ch. 111 1/2, par. 4153-119)

Sec. 3-119. (a) The Department, after notice to the applicant or licensee, may suspend, revoke or refuse to renew a license in any case in which the Department finds any of the following:

(1) There has been a substantial failure to comply with this Act or the rules and regulations promulgated by the Department under this Act. A substantial failure by a facility shall include, but not be limited to, any of the following:

(A) termination of Medicare or Medicaid certification by the Centers for Medicare and Medicaid Services; or

(B) a failure by the facility to pay any fine assessed under this Act after the Department has sent to the facility at least 2 notices of assessment that include a schedule of payments as determined by the Department, taking into account extenuating circumstances and financial hardships of the facility.

(2) Conviction of the licensee, 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 is insufficient in number or unqualified by training or experience to properly care for the number and type of residents served by the facility.

(4) Financial or other resources are insufficient to conduct and operate the facility in accordance with standards promulgated by the Department under this Act, including that the facility failed to maintain liability insurance coverage as required by this Act at some time during the term of its license.

(5) 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.

(6) The facility has committed 2 Type "AA" violations within a 2-year period.

(b) Notice under this Section shall include a clear and concise statement of the violations on which the nonrenewal or revocation is based, the statute or rule violated and notice of the opportunity for a hearing under Section 3-703.

(c) If a facility desires to contest the nonrenewal or revocation of a license, the facility shall, within 10 days after receipt of notice under subsection (b) of this Section, notify the Department in writing of its request for a hearing under Section 3-703. Upon receipt of the request the Department shall send notice to the facility and hold a hearing as provided under Section 3-703.

(d) The effective date of nonrenewal or revocation of a license by the Department shall be any of the following:

(1) Until otherwise ordered by the circuit court, revocation is effective on the date set by the Department in the notice of revocation, or upon final action after hearing under Section 3-703, whichever is later.

(2) Until otherwise ordered by the circuit court, nonrenewal is effective on the date of expiration of any existing license, or upon final action after hearing under Section 3-703, whichever is later; however, a license shall not be deemed to have expired if the Department fails to timely respond to a timely request for renewal under this Act or for a hearing to contest nonrenewal under paragraph (c).

(3) The Department may extend the effective date of license revocation or expiration in any case in order to permit orderly removal and relocation of residents.

The Department may refuse to issue or may suspend the license of any person who fails to file a return, or to pay the tax, penalty or interest shown in a filed return, or to pay any final assessment of tax, penalty or interest, as required by any tax Act administered by the Illinois Department of Revenue, until such time as the requirements of any such tax Act are satisfied.

(Source: P.A. 95-331, eff. 8-21-07; 96-1372, eff. 7-29-10.)

(210 ILCS 45/3-202.7 new)

Sec. 3-202.7. Liability insurance coverage required. No person may establish, operate, maintain, offer, or advertise a facility within this State without providing to the Department proof of liability insurance coverage in an amount not less than $1,000,000 per occurrence. This requirement may not be waived. Failure to maintain such liability insurance coverage during the term of a facility's license shall be a separate Type "B" violation for each resident of the facility for each month, or part of a month, in which the facility did not have the minimum required liability insurance.

(210 ILCS 45/3-602) (from Ch. 111 1/2, par. 4153-602)

Sec. 3-602. The licensee shall pay 3 times the actual damages, and costs and attorney's fees, to a facility resident whose rights, as specified in Part 1 of Article II of this Act, are violated.

(Source: P.A. 89-197, eff. 7-21-95.)