Sen. Laura Ellman

Filed: 5/16/2024

 

 


 

 


 
10300HB4276sam001LRB103 34669 LNS 73533 a

1
AMENDMENT TO HOUSE BILL 4276

2    AMENDMENT NO. ______. Amend House Bill 4276 by replacing
3everything after the enacting clause with the following:
 
4    "Section 5. The Life Care Facilities Act is amended by
5adding 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
9contract and the transfer of any money or other property to a
10provider or escrow agent, the provider shall deliver to the
11consumer a pre-sale disclosure printed on paper. The pre-sale
12disclosure shall be signed by the consumer prior to executing
13the 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;

 

 

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1        (2) the caption, "The timing of refunds for past
2    residents may not be indicative of your refund experience.
3    Your ability to collect on the full amount of the
4    calculated refund may be modified or nullified pending
5    market conditions, any future sale of this organization,
6    or in the event of bankruptcy. Current residents, former
7    residents awaiting refunds, and the estates of former
8    residents awaiting refunds shall be provided with the most
9    recent entry fee refund data disclosure upon request.";
10        (3) for refunds returned by the provider in the most
11    recently completed calendar year:
12            (A) the average number of months passed before the
13        refund of an entry fee by the provider; and
14            (B) the median number of months passed before the
15        refund of an entry fee by the provider;
16        (4) the percentage of entry fee contracts awaiting
17    refunds from the provider with wait times exceeding 24
18    months as of the end of the most recently completed
19    calendar year;
20        (5) the percentage of entry fee contracts awaiting
21    refunds from the provider with wait times exceeding 36
22    months as of the end of the most recently completed
23    calendar year;
24        (6) the percentage of entry fee contracts awaiting
25    refunds from the provider with wait times exceeding 60
26    months as of the end of the most recently completed

 

 

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1    calendar year;
2        (7) the number of entry fee contracts awaiting refunds
3    from the provider as of the last day of the most recently
4    completed calendar year; and
5        (8) the number of entry fee refunds returned by the
6    provider in the most recently completed calendar year.
7    (b) For the purpose of determining the time a refund is
8due, the start time of the refund begins after the unit has
9been permanently vacated, returned to resalable condition, and
10the outgoing resident has a zero balance due, excluding
11outstanding balances to be payable by outside payors,
12including, but not limited to, Medicare, Medicaid, Managed
13Medicare, or within 30 days of the unit being permanently
14vacated and the outgoing resident has a zero balance due,
15whichever is shorter. Refund delays due to estate factors
16outside of the community's control, including, but not limited
17to, probate challenges, estate challenges, or an inability to
18confirm next of kin, are not included in the outstanding
19refunds to be disclosed.
20    (c) Pre-sale disclosures may include additional data by
21calendar year.
22    (d) If a payee for an entry fee refund cannot be
23determined, for purposes of calculating the data in subsection
24(a), a refund shall be considered complete when a new resident
25occupies the specified living unit.
26    (e) The most current pre-sale disclosure data detailed in

 

 

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1subsection (a) shall be made available, upon request, to
2current residents that have refundable entry fee contracts,
3former residents who have not yet received refunds for their
4refundable entry fees, and the estates of former residents who
5have not yet received refunds for their refundable entry fees.
 
6    (210 ILCS 40/5.2 new)
7    Sec. 5.2. Living unit reappropriation. If an unoccupied
8living unit is contemplated for use for a purpose other than as
9a living unit, including, but not limited to, an exam room or a
10storage room, and if there exist beneficiaries awaiting an
11entry fee refund, the beneficiaries of the entry fee refund
12must provide a signed acknowledgment of, and agreement to, the
13reappropriation that may be in effect up to a specific date.
14The reappropriation acknowledgment shall include:
15        (1) the caption, "ENTRY FEE REFUND DELAYS: CONSUMER
16    NOTICE" in at least 28-point font and the remaining
17    portion in at least a 12-point font;
18        (2) the caption, "Your agreement to this arrangement
19    may result in the delayed sale of the living unit as well
20    as the delayed return of the entry fee."; and
21        (3) a statement that the rights provided under this
22    Section may not be waived.".