95TH GENERAL ASSEMBLY
State of Illinois
2007 and 2008
HB5213

 

Introduced , by Rep. David E. Miller

 

SYNOPSIS AS INTRODUCED:
 
See Index

    Amends the Nursing Home Care Act and the State Mandates Act. Provides that no person may establish or operate a nursing home in Illinois unless and until he or she provides to the Department of Public Health proof of liability insurance coverage in an amount not less than $1,000,000 per occurrence. Requires the Department to deny, suspend, revoke, or refuse to renew a license for failure to maintain liability insurance coverage. Provides that failure to maintain such liability insurance coverage during the term of a facility's license is a Type "A" violation under the Act. Provides that the Director of Public Health may not grant a waiver of a facility's compliance with the requirement to maintain liability insurance coverage. Provides that information concerning a facility's liability insurance coverage is subject to disclosure to the public. Makes other changes with respect to liability insurance coverage. Provides that a licensee shall pay 3 times the actual damages, or $500, whichever is greater (instead of only the actual damages) and costs and attorney's fees to a resident whose rights are violated. Provides that any mandate created by these provisions is exempt from reimbursement by the State.


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FISCAL NOTE ACT MAY APPLY
STATE MANDATES ACT MAY REQUIRE REIMBURSEMENT

 

 

A BILL FOR

 

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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 Nursing Home Care Act is amended by changing
5 Sections 2-205, 3-103, 3-109, 3-117, 3-119, 3-303.1, 3-304.1,
6 3-311, and 3-602 and by adding Sections 1-114.7 and 3-202.6 as
7 follows:
 
8     (210 ILCS 45/1-114.7 new)
9     Sec. 1-114.7. Liability insurance. "Liability insurance"
10 means insurance on risks based upon neglect of a resident for
11 which a licensee is or may be responsible.
 
12     (210 ILCS 45/2-205)  (from Ch. 111 1/2, par. 4152-205)
13     Sec. 2-205. The following information is subject to
14 disclosure to the public from the Department or the Department
15 of Healthcare and Family Services:
16         (1) Information submitted under Sections 3-103
17     (including a facility's proof of liability insurance
18     coverage) and 3-207 except information concerning the
19     remuneration of personnel licensed, registered, or
20     certified by the Department of Professional Regulation and
21     monthly charges for an individual private resident;
22         (2) Records of license and certification inspections,

 

 

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1     surveys, and evaluations of facilities, other reports of
2     inspections, surveys, and evaluations of resident care,
3     and reports concerning a facility prepared pursuant to
4     Titles XVIII and XIX of the Social Security Act, subject to
5     the provisions of the Social Security Act;
6         (3) Cost and reimbursement reports submitted by a
7     facility under Section 3-208, reports of audits of
8     facilities, and other public records concerning costs
9     incurred by, revenues received by, and reimbursement of
10     facilities; and
11         (4) Complaints filed against a facility and complaint
12     investigation reports, except that a complaint or
13     complaint investigation report shall not be disclosed to a
14     person other than the complainant or complainant's
15     representative before it is disclosed to a facility under
16     Section 3-702, and, further, except that a complainant or
17     resident's name shall not be disclosed except under Section
18     3-702.
19     The Department shall disclose information under this
20 Section in accordance with provisions for inspection and
21 copying of public records required by the Freedom of
22 Information Act.
23     However, the disclosure of information described in
24 subsection (1) shall not be restricted by any provision of the
25 Freedom of Information Act.
26 (Source: P.A. 95-331, eff. 8-21-07.)
 

 

 

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1     (210 ILCS 45/3-103)  (from Ch. 111 1/2, par. 4153-103)
2     Sec. 3-103. The procedure for obtaining a valid license
3 shall be as follows:
4         (1) Application to operate a facility shall be made to
5     the Department on forms furnished by the Department.
6         (2) All license applications shall be accompanied with
7     an application fee. The fee for an annual license shall be
8     $995. Facilities that pay a fee or assessment pursuant to
9     Article V-C of the Illinois Public Aid Code shall be exempt
10     from the license fee imposed under this item (2). The fee
11     for a 2-year license shall be double the fee for the annual
12     license set forth in the preceding sentence. The fees
13     collected shall be deposited with the State Treasurer into
14     the Long Term Care Monitor/Receiver Fund, which has been
15     created as a special fund in the State treasury. This
16     special fund is to be used by the Department for expenses
17     related to the appointment of monitors and receivers as
18     contained in Sections 3-501 through 3-517 of this Act and
19     for implementation of the Abuse Prevention Review Team Act.
20     At the end of each fiscal year, any funds in excess of
21     $1,000,000 held in the Long Term Care Monitor/Receiver Fund
22     shall be deposited in the State's General Revenue Fund. The
23     application shall be under oath and the submission of false
24     or misleading information shall be a Class A misdemeanor.
25     The application shall contain the following information:

 

 

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1             (a) The name and address of the applicant if an
2         individual, and if a firm, partnership, or
3         association, of every member thereof, and in the case
4         of a corporation, the name and address thereof and of
5         its officers and its registered agent, and in the case
6         of a unit of local government, the name and address of
7         its chief executive officer;
8             (b) The name and location of the facility for which
9         a license is sought;
10             (c) The name of the person or persons under whose
11         management or supervision the facility will be
12         conducted;
13             (d) The number and type of residents for which
14         maintenance, personal care, or nursing is to be
15         provided; and
16             (e) Such information relating to the number,
17         experience, and training of the employees of the
18         facility, any management agreements for the operation
19         of the facility, and of the moral character of the
20         applicant and employees as the Department may deem
21         necessary.
22         (3) Each initial application shall be accompanied by a
23     financial statement setting forth the financial condition
24     of the applicant, including proof of liability insurance
25     coverage as required by this Act, and by a statement from
26     the unit of local government having zoning jurisdiction

 

 

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1     over the facility's location stating that the location of
2     the facility is not in violation of a zoning ordinance. An
3     initial application for a new facility shall be accompanied
4     by a permit as required by the "Illinois Health Facilities
5     Planning Act". After the application is approved, the
6     applicant shall advise the Department every 6 months of any
7     changes in the information originally provided in the
8     application.
9         (4) Other information necessary to determine the
10     identity and qualifications of an applicant to operate a
11     facility in accordance with this Act shall be included in
12     the application as required by the Department in
13     regulations.
14 (Source: P.A. 93-32, eff. 7-1-03; 93-841, eff. 7-30-04; 94-931,
15 eff. 6-26-06.)
 
16     (210 ILCS 45/3-109)  (from Ch. 111 1/2, par. 4153-109)
17     Sec. 3-109. Upon receipt and review of an application for a
18 license made under this Article and inspection of the applicant
19 facility under this Article, the Director shall issue a license
20 if he finds:
21         (1) that the individual applicant, or the corporation,
22     partnership or other entity if the applicant is not an
23     individual, is a person responsible and suitable to operate
24     or to direct or participate in the operation of a facility
25     by virtue of financial capacity, appropriate business or

 

 

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1     professional experience, a record of compliance with
2     lawful orders of the Department and lack of revocation of a
3     license during the previous 5 years;
4         (2) that the facility is under the supervision of an
5     administrator who is licensed, if required, under the
6     Nursing Home Administrators Licensing and Disciplinary
7     Act, as now or hereafter amended; and
8         (3) that the facility is covered by liability insurance
9     as required by this Act; and
10         (4) (3) that the facility is in substantial compliance
11     with this Act, and such other requirements for a license as
12     the Department by rule may establish under this Act.
13 (Source: P.A. 95-331, eff. 8-21-07.)
 
14     (210 ILCS 45/3-117)  (from Ch. 111 1/2, par. 4153-117)
15     Sec. 3-117. Grounds for denial of license.
16     (a) An application for a license may be denied for any of
17 the following reasons:
18         (1) Failure to meet any of the minimum standards set
19     forth by this Act or by rules and regulations promulgated
20     by the Department under this Act.
21         (2) Conviction of the applicant, or if the applicant is
22     a firm, partnership or association, of any of its members,
23     or if a corporation, the conviction of the corporation or
24     any of its officers or stockholders, or of the person
25     designated to manage or supervise the facility, of a

 

 

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1     felony, or of 2 or more misdemeanors involving moral
2     turpitude, during the previous 5 years as shown by a
3     certified copy of the record of the court of conviction.
4         (3) Personnel insufficient in number or unqualified by
5     training or experience to properly care for the proposed
6     number and type of residents.
7         (4) Insufficient financial or other resources to
8     operate and conduct the facility in accordance with
9     standards promulgated by the Department under this Act.
10         (5) Revocation of a facility license during the
11     previous 5 years, if such prior license was issued to the
12     individual applicant, a controlling owner or controlling
13     combination of owners of the applicant; or any affiliate of
14     the individual applicant or controlling owner of the
15     applicant and such individual applicant, controlling owner
16     of the applicant or affiliate of the applicant was a
17     controlling owner of the prior license; provided, however,
18     that the denial of an application for a license pursuant to
19     this subsection must be supported by evidence that such
20     prior revocation renders the applicant unqualified or
21     incapable of meeting or maintaining a facility in
22     accordance with the standards and rules promulgated by the
23     Department under this Act.
24         (6) That the facility is not under the direct
25     supervision of a full-time administrator, as defined by
26     regulation, who is licensed, if required, under the Nursing

 

 

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1     Home Administrators Licensing and Disciplinary Act.
2     (b) An application for a license shall be denied for
3 failure to maintain liability insurance as required by this
4 Act.
5 (Source: P.A. 95-331, eff. 8-21-07.)
 
6     (210 ILCS 45/3-119)  (from Ch. 111 1/2, par. 4153-119)
7     Sec. 3-119. Suspension or revocation of license; refusal to
8 renew license.
9     (a) The Department, after notice to the applicant or
10 licensee, may suspend, revoke or refuse to renew a license in
11 any case in which the Department finds any of the following:
12         (1) There has been a substantial failure to comply with
13     this Act or the rules and regulations promulgated by the
14     Department under this Act.
15         (2) Conviction of the licensee, or of the person
16     designated to manage or supervise the facility, of a
17     felony, or of 2 or more misdemeanors involving moral
18     turpitude, during the previous 5 years as shown by a
19     certified copy of the record of the court of conviction.
20         (3) Personnel is insufficient in number or unqualified
21     by training or experience to properly care for the number
22     and type of residents served by the facility.
23         (4) Financial or other resources are insufficient to
24     conduct and operate the facility in accordance with
25     standards promulgated by the Department under this Act.

 

 

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1         (5) The facility is not under the direct supervision of
2     a full-time administrator, as defined by regulation, who is
3     licensed, if required, under the Nursing Home
4     Administrators Licensing and Disciplinary Act.
5     (a-5) The Department, after notice to the applicant or
6 licensee, shall suspend, revoke, or refuse to renew a license
7 in any case in which the Department finds that a facility has
8 failed to maintain liability insurance coverage as required by
9 this Act at any time during the term of its license.
10     (b) Notice under this Section shall include a clear and
11 concise statement of the violations on which the nonrenewal or
12 revocation is based, the statute or rule violated and notice of
13 the opportunity for a hearing under Section 3-703.
14     (c) If a facility desires to contest the nonrenewal or
15 revocation of a license, the facility shall, within 10 days
16 after receipt of notice under subsection (b) of this Section,
17 notify the Department in writing of its request for a hearing
18 under Section 3-703. Upon receipt of the request the Department
19 shall send notice to the facility and hold a hearing as
20 provided under Section 3-703.
21     (d) The effective date of nonrenewal or revocation of a
22 license by the Department shall be any of the following:
23         (1) Until otherwise ordered by the circuit court,
24     revocation is effective on the date set by the Department
25     in the notice of revocation, or upon final action after
26     hearing under Section 3-703, whichever is later.

 

 

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1         (2) Until otherwise ordered by the circuit court,
2     nonrenewal is effective on the date of expiration of any
3     existing license, or upon final action after hearing under
4     Section 3-703, whichever is later; however, a license shall
5     not be deemed to have expired if the Department fails to
6     timely respond to a timely request for renewal under this
7     Act or for a hearing to contest nonrenewal under paragraph
8     (c).
9         (3) The Department may extend the effective date of
10     license revocation or expiration in any case in order to
11     permit orderly removal and relocation of residents.
12     The Department may refuse to issue or may suspend the
13 license of any person who fails to file a return, or to pay the
14 tax, penalty or interest shown in a filed return, or to pay any
15 final assessment of tax, penalty or interest, as required by
16 any tax Act administered by the Illinois Department of Revenue,
17 until such time as the requirements of any such tax Act are
18 satisfied.
19 (Source: P.A. 95-331, eff. 8-21-07.)
 
20     (210 ILCS 45/3-202.6 new)
21     Sec. 3-202.6. Liability insurance coverage required. No
22 person may establish, operate, maintain, offer, or advertise a
23 facility within this State unless and until he or she provides
24 to the Department of Public Health proof of liability insurance
25 coverage in an amount not less than $1,000,000 per occurrence.

 

 

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1 Failure to maintain such liability insurance coverage during
2 the term of a facility's license is a Type "A" violation under
3 this Act.
 
4     (210 ILCS 45/3-303.1)  (from Ch. 111 1/2, par. 4153-303.1)
5     Sec. 3-303.1. Upon application by a facility, except as
6 otherwise provided in this Section, the Director may grant or
7 renew the waiver of the facility's compliance with a rule or
8 standard for a period not to exceed the duration of the current
9 license or, in the case of an application for license renewal,
10 the duration of the renewal period. The waiver may be
11 conditioned upon the facility taking action prescribed by the
12 Director as a measure equivalent to compliance. In determining
13 whether to grant or renew a waiver, the Director shall consider
14 the duration and basis for any current waiver with respect to
15 the same rule or standard and the validity and effect upon
16 patient health and safety of extending it on the same basis,
17 the effect upon the health and safety of residents, the quality
18 of resident care, the facility's history of compliance with the
19 rules and standards of this Act and the facility's attempts to
20 comply with the particular rule or standard in question. The
21 Department may provide, by rule, for the automatic renewal of
22 waivers concerning physical plant requirements upon the
23 renewal of a license. The Department shall renew waivers
24 relating to physical plant standards issued pursuant to this
25 Section at the time of the indicated reviews, unless it can

 

 

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1 show why such waivers should not be extended for the following
2 reasons:
3     (a) the condition of the physical plant has deteriorated or
4 its use substantially changed so that the basis upon which the
5 waiver was issued is materially different; or
6     (b) the facility is renovated or substantially remodeled in
7 such a way as to permit compliance with the applicable rules
8 and standards without substantial increase in cost.
9     A copy of each waiver application and each waiver granted
10 or renewed shall be on file with the Department and available
11 for public inspection. The Director shall annually review such
12 file and recommend to the Long Term Care Facility Advisory
13 Board any modification in rules or standards suggested by the
14 number and nature of waivers requested and granted and the
15 difficulties faced in compliance by similarly situated
16 facilities.
17     Under no circumstances may the Director grant a waiver of a
18 facility's compliance with the requirement to maintain
19 liability insurance coverage as provided by this Act.
20 (Source: P.A. 85-1216.)
 
21     (210 ILCS 45/3-304.1)
22     Sec. 3-304.1. Public computer access to information.
23     (a) The Department must make information regarding nursing
24 homes in the State available to the public in electronic form
25 on the World Wide Web, including all of the following

 

 

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1 information:
2         (1) who regulates nursing homes;
3         (2) information in the possession of the Department
4     that is listed in Sections 3-210 and 3-304;
5         (2.5) information concerning proof of liability
6     insurance coverage, including the name of the insurance
7     carrier and applicable limitations of liability;
8         (3) deficiencies and plans of correction;
9         (4) enforcement remedies;
10         (5) penalty letters;
11         (6) designation of penalty monies;
12         (7) the U.S. Department of Health and Human Services'
13     Health Care Financing Administration special projects or
14     federally required inspections;
15         (8) advisory standards;
16         (9) deficiency-free surveys; and
17         (10) enforcement actions and enforcement summaries.
18     (b) No fee or other charge may be imposed by the Department
19 as a condition of accessing the information.
20     (c) The electronic public access provided through the World
21 Wide Web shall be in addition to any other electronic or print
22 distribution of the information.
23     (d) The information shall be made available as provided in
24 this Section in the shortest practicable time after it is
25 publicly available in any other form.
26 (Source: P.A. 91-290, eff. 1-1-00.)
 

 

 

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1     (210 ILCS 45/3-311)  (from Ch. 111 1/2, par. 4153-311)
2     Sec. 3-311. In addition to the right to assess penalties
3 under this Act, the Director may issue a conditional license
4 under Section 3-305 to any facility if the Director finds that
5 either a Type "A" or Type "B" violation exists in such
6 facility, except that the Director may not issue such a
7 conditional license unless and until the facility is covered by
8 liability insurance as required by this Act. The issuance of a
9 conditional license shall revoke any license held by the
10 facility.
11 (Source: P.A. 85-1378.)
 
12     (210 ILCS 45/3-602)  (from Ch. 111 1/2, par. 4153-602)
13     Sec. 3-602. The licensee shall pay 3 times the actual
14 damages, or $500, whichever is greater, and costs and
15 attorney's fees to a facility resident whose rights, as
16 specified in Part 1 of Article II of this Act, are violated.
17 (Source: P.A. 89-197, eff. 7-21-95.)
 
18     Section 90. The State Mandates Act is amended by adding
19 Section 8.32 as follows:
 
20     (30 ILCS 805/8.32 new)
21     Sec. 8.32. Exempt mandate. Notwithstanding Sections 6 and 8
22 of this Act, no reimbursement by the State is required for the

 

 

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1 implementation of any mandate created by this amendatory Act of
2 the 95th General Assembly.

 

 

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1 INDEX
2 Statutes amended in order of appearance
3     210 ILCS 45/1-114.7 new
4     210 ILCS 45/2-205 from Ch. 111 1/2, par. 4152-205
5     210 ILCS 45/3-103 from Ch. 111 1/2, par. 4153-103
6     210 ILCS 45/3-109 from Ch. 111 1/2, par. 4153-109
7     210 ILCS 45/3-117 from Ch. 111 1/2, par. 4153-117
8     210 ILCS 45/3-119 from Ch. 111 1/2, par. 4153-119
9     210 ILCS 45/3-202.6 new
10     210 ILCS 45/3-303.1 from Ch. 111 1/2, par. 4153-303.1
11     210 ILCS 45/3-304.1
12     210 ILCS 45/3-311 from Ch. 111 1/2, par. 4153-311
13     210 ILCS 45/3-602 from Ch. 111 1/2, par. 4153-602
14     30 ILCS 805/8.32 new