Rep. Frances Ann Hurley

Filed: 2/23/2022





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2    AMENDMENT NO. ______. Amend House Bill 4658 by replacing
3everything after the enacting clause with the following:
4    "Section 5. The Nurse Agency Licensing Act is amended by
5changing Sections 3, 5, 7, 8, 13, 14, and 14.1 as follows:
6    (225 ILCS 510/3)  (from Ch. 111, par. 953)
7    Sec. 3. Definitions. As used in this Act:
8    "Add-on charges" means any amount, excluding the
9administrative fee, that the nurse agency charges the health
10care facility in addition to the employee hourly pay rate,
11including, but not limited to, shift differential, weekend
12differential, hazard pay, charge nurse add-on, overtime,
13holiday pay, and travel or mileage pay.
14    "Administrative fee" means any amount that the nurse
15agency charges the health care facility in addition to amounts
16paid to the employee by the nurse agency.



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1    (a) "Certified nurse aide" means an individual certified
2as defined in Section 3-206 of the Nursing Home Care Act,
3Section 3-206 of the ID/DD Community Care Act, or Section
43-206 of the MC/DD Act, as now or hereafter amended.
5    "Covenant not to compete" means an agreement between an
6employer and an employee that restricts the employee from
8        (1) any work for another employer for a specified
9    period of time;
10        (2) any work in a specified geographic area; or
11        (3) work for another employer that is similar to the
12    employee's work for the employer included as a party to
13    the agreement.
14    (b) "Department" means the Department of Labor.
15    (c) "Director" means the Director of Labor.
16    (d) "Health care facility" is defined as in Section 3 of
17the Illinois Health Facilities Planning Act, as now or
18hereafter amended. "Health care facility" also includes any
19facility licensed, certified, or approved by any State agency
20and covered by the Assisted Living and Shared Housing Act or
21the Illinois Public Aid Code.
22    (e) "Licensee" means any nursing agency which is properly
23licensed under this Act.
24    (f) "Nurse" means a registered nurse, or a licensed
25practical nurse, an advanced practice registered nurse, or any
26individual licensed under as defined in the Nurse Practice



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2    (g) "Nurse agency" means any individual, firm,
3corporation, partnership or other legal entity that employs,
4assigns or refers nurses or certified nurse aides to a health
5care facility for a fee. The term "nurse agency" includes
6nurses registries. The term "nurse agency" does not include
7services provided by home health agencies licensed and
8operated under the Home Health, Home Services, and Home
9Nursing Agency Licensing Act or a licensed or certified
10individual who provides his or her own services as a regular
11employee of a health care facility, nor does it apply to a
12health care facility's organizing nonsalaried employees to
13provide services only in that facility.
14(Source: P.A. 98-104, eff. 7-22-13; 99-180, eff. 7-29-15.)
15    (225 ILCS 510/5)  (from Ch. 111, par. 955)
16    Sec. 5. Application for license. An application to operate
17a nurse agency shall be made to the Department on forms
18provided by the Department. A separate application shall be
19submitted for each additional location from which a nurse
20agency is operated. All applications must be under oath and
21must be accompanied by an equitable application fee which will
22be set by the Department by rule. A separate license must be
23obtained for each location from which a nurse agency is
24operated unless the nurse agency is owned and managed by the
25same person or persons. Submission of false or misleading



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1information is a petty offense punishable by a fine of $500.
2The application shall contain the following information:
3    (1) name and address of the person, partnership,
4corporation or other entity that is the applicant;
5    (2) if the applicant is a corporation or limited liability
6company, a copy of its articles of incorporation or
7organization, a copy of its current bylaws, and the names and
8addresses of its officers and directors and shareholders
9owning more than 5% of the corporation's stock or membership
11    (3) the name and location of premises from which the
12applicant will provide services;
13    (4) the names and addresses of the person or persons under
14whose management or supervision the nurse agency will be
16    (5) a statement of financial solvency;
17    (6) a statement detailing the experience and
18qualifications of the applicant to operate a nurse agency,
19however, the failure of a nurse agency to demonstrate previous
20experience to operate an agency does not in and of itself
21constitute grounds for the denial of a license;
22    (7) evidence of compliance or intent to comply with State
23or federal law relating to employee compensation, including
24but not limited to, social security taxes, State and federal
25income taxes, workers' compensation, unemployment taxes, and
26State and federal overtime compensation laws;



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1    (8) evidence of general and professional liability
2insurance in the amounts of at least $1,000,000 $500,000 per
3incident and $3,000,000 $1,000,000 in aggregate and workers'
4compensation coverage for all nurses or certified nursing
5aides employed, assigned, or referred by the nurse agency to a
6healthcare facility; and
7    (9) any other relevant information which the Department
8determines is necessary to properly evaluate the applicant and
9application as required by the Department by rule; and .
10    (10) an application fee of $2,000. Fees collected under
11this subsection shall be deposited in the State treasury and
12credited to the Nursing Dedicated and Professional Fund. Funds
13deposited into the Nursing Dedicated and Professional Fund
14under this subsection shall be set aside for nursing
15scholarships awarded pursuant to the Nursing Education
16Scholarship Law and may not be transferred under Section 8h of
17the State Finance Act.
18(Source: P.A. 86-817; 86-1043; 86-1472; 87-435.)
19    (225 ILCS 510/7)  (from Ch. 111, par. 957)
20    Sec. 7. Renewal of license. At least 90 days prior to
21license expiration, the licensee shall submit an attestation
22detailing the number of contracted shifts, number of shifts
23missed, number of shifts fulfilled for the 3 quarters
24preceding the application date, and an application which meets
25the requirements of Section 5 of this Act for renewal of the



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1license. If the application is approved pursuant to Section 6,
2the license shall be renewed for an additional one-year
4(Source: P.A. 86-817; 86-1043.)
5    (225 ILCS 510/8)  (from Ch. 111, par. 958)
6    Sec. 8. Grounds for denial of a license. An application
7for a license may be denied for any of the following reasons:
8    (a) failure to comply with the minimum standards set forth
9by this Act or its rules;
10    (b) conviction of the applicant of a felony;
11    (c) insufficient financial or other resources to operate
12the nurse agency in accordance with the requirements of this
13Act and the minimum standards, rules and regulations
14promulgated thereunder; or
15    (d) failure to establish appropriate personnel policies
16and procedures for selecting nurses and certified nurse aides
17for employment, assignment, or referral, or to develop and
18implement contingency staffing plans to minimize missed
20(Source: P.A. 86-817.)
21    (225 ILCS 510/13)  (from Ch. 111, par. 963)
22    Sec. 13. Application for employment.
23    (a) Every nurse agency shall cause each applicant for
24employment, assignment, or referral, as a nurse to complete an



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1application form including the following information:
2        (1) name and address of the applicant;
3        (2) whether or not such applicant is a nurse currently
4    licensed by the Department of Professional Regulation;
5        (3) if so licensed, the number and date of such
6    license; and
7        (4) references and dates and places of previous
8    employment.
9    Prior to employing, assigning, or referring a nurse, the
10agency shall contact the Department of Professional Regulation
11to determine whether the nurse's license is valid and in good
12standing. Written verification shall be sent by the Department
13of Financial and Professional Regulation within 20 working
14days. At least biennially thereafter, the nurse agency shall
15contact the Department of Financial and Professional
16Regulation to verify this information in writing. The nurse
17agency shall review the disciplinary report published by the
18Department of Financial and Professional Regulation on a
19monthly basis to determine whether the nurse's license is
20valid and in good standing.
21    (b) Every nurse agency shall cause each applicant for
22employment, assignment, or referral, as a certified nurse aide
23to complete an application form including the following
25        (1) name and address of the applicant;
26        (2) whether or not the nurse aide is registered as



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1    having completed a certified course as approved by the
2    Department of Public Health; and
3        (3) references and dates and places of previous
4    employment.
5    Prior to employing, assigning, or referring a certified
6nurse aide, the agency shall review the information provided
7on the Health Care Worker Registry to verify that the
8certification is valid. Prior to employing, assigning, or
9referring a certified nurse aide to a position at a health care
10employer or long-term facility as defined in the Health Care
11Worker Background Check Act, the nurse agency shall review the
12information provided on the Health Care Worker Registry to
13verify and that the certified nurse aide is not ineligible for
14the position to be hired by health care employers or long-term
15care facilities pursuant to Section 25 of the Health Care
16Worker Background Check Act.
17    (c) Every nurse agency shall check at least 2 recent
18references and the dates of employment provided by the
19applicant, unless the applicant has not had 2 previous
21    (d) Knowingly employing, assigning, or referring to a
22health care facility a nurse or certified nurse aide with an
23illegally or fraudulently obtained or issued diploma,
24registration, license, certificate, or background study
25constitutes negligent hiring by a nurse agency and is grounds
26for suspension, revocation, or refusal to issue or renew a



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1license under Section 9.
2    (e) (d) Nurses or certified nurses aides employed,
3assigned, or referred to a health care facility by a nurse
4agency shall be deemed to be employees of the nurse agency
5while working for the nurse agency or on nurse agency
6employment, assignment or referral.
7(Source: P.A. 99-652, eff. 1-1-17.)
8    (225 ILCS 510/14)  (from Ch. 111, par. 964)
9    Sec. 14. Minimum Standards.
10    (a) The Department, by rule, shall establish minimum
11standards for the operation of nurse agencies. Those standards
12shall include, but are not limited to: (1) the maintenance of
13written policies, and procedures, and documentation; (2)
14contracts between nurse agencies and healthcare facilities to
15which it assigns or refers nurses or certified nurse aides
16requiring the itemization of rates, including, but not limited
17to, specifying employee hourly pay rates, any and all add-on
18charges, and the nurse agency's administrative fees,
19demonstrating that its employees' scope of work aligns with
20the appropriate scope of practice, and providing contingency
21staff plans; and (3) (2) the development of personnel policies
22which include payroll records, including for nurses or
23certified nurse aides employed, assigned, or referred to
24health care facilities, a personal interview, a reference
25check, an annual evaluation of each employee (which may be



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1based in part upon information provided by health care
2facilities utilizing nurse agency personnel), documentation
3that nurses or certified nurse aides who will be assigned or
4referred to health care facilities meet the minimum licensing,
5training, and continuing education standards for the position
6referred or assigned and comply with all pertinent
7requirements relating to personnel employed in health care
8facilities and periodic health examinations.
9    (b) Each nurse agency shall have a nurse serving as a
10manager or supervisor of all nurses and certified nurses
12    (c) Each nurse agency shall ensure that its employees meet
13the minimum licensing, training, and orientation standards for
14which those employees are licensed or certified.
15    (d) A nurse agency shall not employ, assign, or refer for
16use in a an Illinois health care facility a nurse or certified
17nurse aide unless certified or licensed under applicable
18provisions of State and federal law or regulations. Each
19certified nurse aide shall comply with all pertinent
20regulations of the Illinois Department of Public Health
21relating to the health and other qualifications of personnel
22employed in health care facilities.
23    (e) The Department shall may adopt rules to monitor the
24usage of nurse agency services to determine their impact. In
25the development of such rules, the Department may consult with
26the Department of Public Health to ensure the rules will



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1determine the quality of care and public health impacts of the
2usage of nurse agency services.
3    (f) Nurse agencies are prohibited from recruiting
4potential employees on the premises of a health care facility
5or requiring, as a condition of employment, assignment, or
6referral, that their employees recruit new employees for the
7nurse agency from among the permanent employees of the health
8care facility to which the nurse agency employees have been
9employed, assigned, or referred, and the health care facility
10to which such employees are employed, assigned, or referred is
11prohibited from requiring, as a condition of employment, that
12their employees recruit new employees from these nurse agency
13employees. Violation of this provision is a business offense.
14    (g) Nurse agencies are prohibited from entering into
15covenants not to compete with nurses and certified nurse
16aides. A covenant not to compete entered into after the
17effective date of this amendatory Act of the 102nd General
18Assembly between a nurse agency and a nurse or certified nurse
19aide is illegal and void. The nursing agency shall not, in any
20contract with any employee or health care facility, require
21the payment of liquidated damages, conversion fees, employment
22fees, buy-out fees, placement fees, or other compensation if
23the employee is hired as a permanent employee of a health care
25    (h) A nurse agency's administrative fee shall not exceed
2650% of the hourly wage and any add-ons paid to the employee.



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1    (i) No less than 100% of the employee hourly pay rate and
2any add-on charges shall be passed on to the employee.
3(Source: P.A. 86-817.)
4    (225 ILCS 510/14.1)
5    Sec. 14.1. Investigations; orders; civil penalties.
6    (a) The Department may at any time, and shall upon
7receiving a complaint from any interested person, investigate
8any person licensed or applying for a license under this Act.
9The Department shall investigate any person who operates or
10advertises a nurse agency without being licensed under this
11Act. The Department shall establish a system of reporting
12complaints against a health care staffing agency. Complaints
13may be made by any member of the public. Complaints against a
14nurse agency shall be investigated by the Department of Labor.
15The investigations shall take into consideration the
16responsibility of health care facilities under Section 12 for
17supervising nurse agency employees assigned or referred to the
19    The Director or his or her authorized representative may
20examine the premises of any nurse agency, may compel by
21subpoena, for examination or inspection, the attendance and
22testimony of witnesses and the production of books, payrolls,
23records, papers and other evidence in any investigation or
24hearing, and may administer oaths or affirmations to



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1    (b) After appropriate notice and hearing, and if supported
2by the evidence, the Department may issue and cause to be
3served on any person an order to cease and desist from
4violation of this Act and to take any further action that is
5reasonable to eliminate the effect of the violation.
6    Whenever it appears that any person has violated a valid
7order of the Department issued under this Act, the Director
8may commence an action and obtain from the court an order
9directing the person to obey the order of the Department or be
10subject to punishment for contempt of court.
11    The Department may petition the court for an order
12enjoining any violation of this Act.
13    (c) Any licensee or applicant who violates any provision
14of this Act or the rules adopted under this Act shall be
15subject to a civil penalty of $10,000 per occurrence $1,000
16per day for each violation. Civil penalties may be assessed by
17the Department in an administrative action and may, if
18necessary, be recovered in a civil action brought by the
19Director through the Attorney General of the State of Illinois
20or the State's attorney of any county in which the violation
21occurred. The court may order that the civil penalties
22assessed for violation of this Act, together with any costs or
23attorney's fees arising out of the action to collect the
24penalties, be paid to the Department. The fact that the
25violation has ceased does not excuse any person from liability
26for civil penalties arising from the violation.



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1(Source: P.A. 88-230.)".