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1 | AN ACT concerning regulation. | ||||||
2 | Be it enacted by the People of the State of Illinois, | ||||||
3 | represented in the General Assembly: | ||||||
4 | Section 5. The Life Care Facilities Act is amended by | ||||||
5 | adding Sections 5.1 and 5.2 as follows: | ||||||
6 | (210 ILCS 40/5.1 new) | ||||||
7 | Sec. 5.1. Pre-sale disclosures. | ||||||
8 | (a) Prior to the execution of a refundable life care | ||||||
9 | contract and the transfer of any money or other property to a | ||||||
10 | provider or escrow agent, the provider shall deliver to the | ||||||
11 | consumer a pre-sale disclosure printed on paper. The pre-sale | ||||||
12 | disclosure shall be signed by the consumer prior to executing | ||||||
13 | the life care contract. The pre-sale disclosure shall include: | ||||||
14 | (1) the caption, "ENTRY FEE REFUNDS: CONSUMER NOTICE", | ||||||
15 | in at least 28-point font and the remaining portion in at | ||||||
16 | least 12-point font; | ||||||
17 | (2) the caption, "The timing of refunds for past | ||||||
18 | residents may not be indicative of your refund experience. | ||||||
19 | Your ability to collect on the full amount of the | ||||||
20 | calculated refund may be modified or nullified pending | ||||||
21 | market conditions, any future sale of this organization, | ||||||
22 | or in the event of bankruptcy. Current residents, former | ||||||
23 | residents awaiting refunds, and the estates of former |
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1 | residents awaiting refunds shall be provided with the most | ||||||
2 | recent entry fee refund data disclosure upon request."; | ||||||
3 | (3) for refunds returned by the provider in the most | ||||||
4 | recently completed calendar year: | ||||||
5 | (A) the average number of months passed before the | ||||||
6 | refund of an entry fee by the provider; and | ||||||
7 | (B) the median number of months passed before the | ||||||
8 | refund of an entry fee by the provider; | ||||||
9 | (4) the percentage of entry fee contracts awaiting | ||||||
10 | refunds from the provider with wait times exceeding 24 | ||||||
11 | months as of the end of the most recently completed | ||||||
12 | calendar year; | ||||||
13 | (5) the percentage of entry fee contracts awaiting | ||||||
14 | refunds from the provider with wait times exceeding 36 | ||||||
15 | months as of the end of the most recently completed | ||||||
16 | calendar year; | ||||||
17 | (6) the percentage of entry fee contracts awaiting | ||||||
18 | refunds from the provider with wait times exceeding 60 | ||||||
19 | months as of the end of the most recently completed | ||||||
20 | calendar year; | ||||||
21 | (7) the number of entry fee contracts awaiting refunds | ||||||
22 | from the provider as of the last day of the most recently | ||||||
23 | completed calendar year; and | ||||||
24 | (8) the number of entry fee refunds returned by the | ||||||
25 | provider in the most recently completed calendar year. | ||||||
26 | (b) For the purpose of determining the time a refund is |
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1 | due, the start time of the refund begins after the unit has | ||||||
2 | been permanently vacated, returned to resalable condition, and | ||||||
3 | the outgoing resident has a zero balance due, excluding | ||||||
4 | outstanding balances to be payable by outside payors, | ||||||
5 | including, but not limited to, Medicare, Medicaid, Managed | ||||||
6 | Medicare, or within 30 days of the unit being permanently | ||||||
7 | vacated and the outgoing resident has a zero balance due, | ||||||
8 | whichever is shorter. Refund delays due to estate factors | ||||||
9 | outside of the community's control, including, but not limited | ||||||
10 | to, probate challenges, estate challenges, or an inability to | ||||||
11 | confirm next of kin, are not included in the outstanding | ||||||
12 | refunds to be disclosed. | ||||||
13 | (c) Pre-sale disclosures may include additional data by | ||||||
14 | calendar year. | ||||||
15 | (d) If a payee for an entry fee refund cannot be | ||||||
16 | determined, for purposes of calculating the data in subsection | ||||||
17 | (a), a refund shall be considered complete when a new resident | ||||||
18 | occupies the specified living unit. | ||||||
19 | (e) The most current pre-sale disclosure data detailed in | ||||||
20 | subsection (a) shall be made available, upon request, to | ||||||
21 | current residents that have refundable entry fee contracts, | ||||||
22 | former residents who have not yet received refunds for their | ||||||
23 | refundable entry fees, and the estates of former residents who | ||||||
24 | have not yet received refunds for their refundable entry fees. | ||||||
25 | (f) Failure to provide the pre-sale disclosure in | ||||||
26 | accordance with this Section may result in a minimum monetary |
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1 | penalty of $500 at the discretion of the Department. The | ||||||
2 | Department shall adopt rules to enforce this Section and | ||||||
3 | provide for factors to be considered when imposing monetary | ||||||
4 | penalties and for repeat violations of this Section. | ||||||
5 | (210 ILCS 40/5.2 new) | ||||||
6 | Sec. 5.2. Living unit reappropriation. If an unoccupied | ||||||
7 | living unit is contemplated for use for a purpose other than as | ||||||
8 | a living unit, including, but not limited to, an exam room or a | ||||||
9 | storage room, and if there exist beneficiaries awaiting an | ||||||
10 | entry fee refund, the beneficiaries of the entry fee refund | ||||||
11 | must provide a signed acknowledgment of, and agreement to, the | ||||||
12 | reappropriation that may be in effect up to a specific date. | ||||||
13 | The reappropriation acknowledgment shall include: | ||||||
14 | (1) the caption, "ENTRY FEE REFUND DELAYS: CONSUMER | ||||||
15 | NOTICE" in at least 28-point font and the remaining | ||||||
16 | portion in at least a 12-point font; | ||||||
17 | (2) the caption, "Your agreement to this arrangement | ||||||
18 | may result in the delayed sale of the living unit as well | ||||||
19 | as the delayed return of the entry fee."; and | ||||||
20 | (3) a statement that the rights provided under this | ||||||
21 | Section may not be waived. |