093_HB0050

 
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 1        AN ACT concerning long term health care.

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

 4        Section 1.  Short title.  This Act may be  cited  as  the
 5    Elder Care Savings Fund Act.

 6        Section  5.   Declaration of purpose.  It is declared (i)
 7    that for the benefit of the people of the State of  Illinois,
 8    the  conduct  and  increase of their commerce, the protection
 9    and  enhancement  of  their  welfare,  the   development   of
10    continued prosperity, and the improvement of their health and
11    living  conditions,  it  is  essential  that  this and future
12    generations be given the fullest opportunity to  provide  for
13    their  long-term  health  care needs and (ii) that to achieve
14    these ends it is  of  the  utmost  importance  that  Illinois
15    residents be provided with investment alternatives to enhance
16    their  financial  access to long-term health care.  It is the
17    intent of this Act to create a savings fund that will provide
18    residents of the State of Illinois with an investment  option
19    that  will  earn  the  highest available rate of return while
20    managing risk and maintaining liquidity.

21        Section 10.  Definitions.  In this Act:
22        (a)  "Assisted living establishment"  or  "establishment"
23    means  a  home, building, residence, or any other place where
24    sleeping accommodations are provided for at least 3 unrelated
25    adults, at least 80% of whom are 55 years of  age  or  older,
26    and  where  the  following   are provided consistent with the
27    purposes of this Act:
28             (1)  Services consistent with a social model that is
29        based on the premise that the resident's unit in assisted
30        living and shared housing is his or her own home.
 
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 1             (2)  Community-based residential  care  for  persons
 2        who  need  assistance  with  activities  of daily living,
 3        including  personal,    supportive,    and   intermittent
 4        health-related  services  available  24 hours per day, if
 5        needed, to meet the scheduled and unscheduled needs of  a
 6        resident.
 7             (3)  Counseling  for  health,  social  services, and
 8        nutrition by  licensed  personnel  or  case  coordination
 9        units under the Department on Aging and the area agencies
10        on aging.
11             (4)  Mandatory  services,  whether provided directly
12        by the establishment or by another entity arranged for by
13        the establishment, with the consent of  the  resident  or
14        resident's representative.
15             (5)  A  physical  environment  that  is  a  homelike
16        setting  that includes the following elements, as well as
17        other  elements  established   by   the   Department   in
18        conjunction  with  the Assisted Living and Shared Housing
19        Advisory Board: individual living units,  each  of  which
20        must  accommodate  small  kitchen  appliances and contain
21        private  bathing,  washing,  and  toilet  facilities,  or
22        private washing  and  toilet  facilities  with  a  common
23        bathing  room readily accessible to each resident.  Units
24        must be maintained for single occupancy except  in  cases
25        in  which  2 residents choose to share a unit. Sufficient
26        common space must exist to permit  individual  and  group
27        activities.
28        "Assisted  living  establishment" or "establishment" does
29    not mean any of the following:
30             (1)  A home, institution, or similar place  operated
31        by the federal government or the State of Illinois.
32             (2)  A  long-term  care  facility licensed under the
33        Nursing Home Care Act.  A  long-term  care  facility  may
34        convert  distinct  parts  of  the  facility  to  assisted
 
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 1        living,  however.   If the long-term care facility elects
 2        to do so, the facility shall retain  the  Certificate  of
 3        Need for its nursing beds that were converted.
 4             (3)  A  hospital,  sanitarium, or other institution,
 5        the principal  activity  or  business  of  which  is  the
 6        diagnosis,  care, and treatment of human illness and that
 7        is required to be licensed under the  Hospital  Licensing
 8        Act.
 9             (4)  A  facility  for  child  care as defined in the
10        Child Care Act of 1969.
11             (5)  A community living facility as defined  in  the
12        Community Living Facilities Licensing Act.
13             (6)  A nursing home or sanitarium operated solely by
14        and  for  persons  who rely exclusively upon treatment by
15        spiritual means through prayer  in  accordance  with  the
16        creed  or tenets of a well-recognized church or religious
17        denomination.
18             (7)  A facility licensed by the Department of  Human
19        Services  as a community-integrated living arrangement as
20        defined in the Community-Integrated  Living  Arrangements
21        Licensure and Certification Act.
22             (8)  A   supportive  residence  licensed  under  the
23        Supportive Residences Licensing Act.
24             (9)  A life care facility as  defined  in  the  Life
25        Care Facilities Act; a life care facility may apply under
26        this Act to convert sections of the community to assisted
27        living.
28             (10)  A free-standing hospice facility.
29             (11)  A shared housing establishment.
30             (12)  A  supportive  living facility as described in
31        Section 5-5.0la of the Illinois Public Aid Code.
32        (b)  "Authority" means the Elder Care Trust Authority.
33        (c)  "Elder Care Savings Fund" means  the  fund  that  is
34    created and administered by the State Treasurer to supplement
 
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 1    and  enhance the investment opportunities otherwise available
 2    to Illinois residents seeking to save money to pay the  costs
 3    of long-term health care.

 4        Section 15.  Elder Care Savings Fund.
 5        (a)   In  order  to  provide  investors  with  investment
 6    alternatives  to  enhance their financial access to long-term
 7    health care, and in furtherance of the public policy of  this
 8    Act,  the  State  Treasurer  may  establish and administer an
 9    Elder Care Savings Fund.
10        (b)  The  Treasurer,  in  administering  the  Elder  Care
11    Savings Fund, may receive moneys from Illinois residents into
12    the  fund  and invest moneys within the fund on their behalf.
13    The Treasurer may invest the moneys  constituting  the  Elder
14    Care Savings Fund in the same manner and in the same types of
15    investments  and subject to the same limitations provided for
16    the investment of moneys in the State treasury.
17        The Treasurer shall develop, publish,  and  implement  an
18    investment  policy  covering  the management of moneys in the
19    Elder Care Savings Fund.  The policy shall  be  published  at
20    least  once  each  year  in at least one newspaper of general
21    circulation in both Springfield and Chicago, and each year as
22    part of the audit of the  Elder  Care  Savings  Fund  by  the
23    Auditor   General,   which   shall   be  distributed  to  all
24    participants in the fund.  The  Treasurer  shall  notify  all
25    participants in writing, and the Treasurer shall publish in a
26    newspaper   of   general  circulation  in  both  Chicago  and
27    Springfield  any  changes   to   the   previously   published
28    investment   policy   at   least   30  calendar  days  before
29    implementing the policy.  Any investment  policy  adopted  by
30    the  Treasurer  shall  be reviewed, and updated if necessary,
31    within 90 days following the installation of a new Treasurer.
32        (c)  A portion of  the  administrative  expenses  of  the
33    Elder  Care  Savings  Fund shall be paid from the earnings of
 
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 1    the fund.  No more than 0.005% of the assets of the fund  may
 2    be  used  to pay administrative expenses.  The Treasurer must
 3    seek an appropriation for any  administrative  expenses  that
 4    are  not  paid from the earnings of the fund.  As soon as the
 5    Elder Care Savings Fund reaches an asset level that equals or
 6    exceeds $200,000,000, the administration expenses of the fund
 7    shall be paid solely from its earnings.  Interest earnings in
 8    excess of administrative expenses shall be credited  or  paid
 9    monthly  to  the several participants in the fund in a manner
10    that  equitably  reflects  the  differing  amounts  of  their
11    respective investments in the fund and the differing  periods
12    of  time  for  which  the  amounts were in the custody of the
13    fund.
14        (d)  The Treasurer shall adopt rules as he or  she  deems
15    necessary  for the efficient administration of the Elder Care
16    Savings Fund, including specification of minimum and  maximum
17    amounts that may be deposited, minimum and maximum periods of
18    time  for  which  deposits  may  be retained in the fund, and
19    conditions under which penalties will be assessed for refunds
20    of earnings that are  not  used  for  long-term  health  care
21    expenses defined in Section 10 of this Act.
22        (e)   Upon  creating an Elder Care Savings Fund the State
23    Treasurer shall give bond with 2 or more sufficient sureties,
24    payable to and for the benefit of  the  participants  in  the
25    Elder  Care  Savings  Fund,  in  the  penal  sum of $500,000,
26    conditioned upon the faithful discharge of his or her  duties
27    in relation to the fund.

28        Section  20.  Exemption  from  taxation.   As provided in
29    this Act, the investment in the Elder Care Savings Fund is in
30    all respects for the benefit of the People of  the  State  of
31    Illinois,  the  conduct  and  increase of their commerce, the
32    protection and enhancement of their welfare, the  development
33    of  continued prosperity, and the improvement of their health
 
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 1    and  living  conditions  and  is  for  public  purposes.   In
 2    consideration of those facts, income derived from investments
 3    in the Elder  Care  Savings  Fund  and  financial  incentives
 4    received  under  the grant program described in Section 25 of
 5    this Act shall be free from all taxation by the State or  its
 6    political  subdivisions,  except  for  estate,  transfer, and
 7    inheritance taxes.

 8        Section 25.  Grant program.
 9        (a)  The Governor and the Director of the Bureau  of  the
10    Budget  shall  provide  for  a  grant  program  of additional
11    financial incentives to be provided to  participants  in  the
12    Elder  Care Savings Program to encourage the use of the Elder
13    Care Savings Fund and the income derived from  the  fund  for
14    one or more of the following purposes:
15             (1)  Care  in  a facility licensed under the Nursing
16        Home Care Act.
17             (2)  Home health nursing  services  or  home  health
18        aide  services  provided by a home health agency licensed
19        under the Home Health Agency Licensing Act.
20             (3)  Respite care as defined in the Respite  Program
21        Act.
22             (4)  Custodial care services.
23             (5)  Care  in  a  hospice licensed under the Hospice
24        Program Licensing Act.
25             (6)  Long-term health care services  for  the  aged,
26        the  disabled,  or persons diagnosed as infected with HIV
27        or having AIDS or a related  condition.   These  services
28        include, without limitation, chore-housekeeping services,
29        a  personal  care  attendant,  adult  day care, assistive
30        equipment, home  renovation,  home-delivered  meals,  and
31        emergency  response  systems.  As used in this paragraph,
32        "AIDS" means acquired  immunodeficiency  syndrome;  "HIV"
33        means  the  Human  Immunodeficiency  Virus  or  any other
 
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 1        identified causative agent of AIDS.
 2             (7)  Care in an assisted living establishment.
 3        (b)  The grant program of financial incentives  shall  be
 4    administered    by    the   State   Treasurer   pursuant   to
 5    administrative rules adopted by the Treasurer.  The financial
 6    incentives shall be in forms determined by the  Governor  and
 7    the  Director  of  the  Bureau of the Budget and may include,
 8    among others, supplemental payments to  the  participants  in
 9    the Elder Care Savings Fund to be applied to costs of care or
10    services  specified  in  items  (1) through (6) of subsection
11    (a).  The Treasurer may establish,  by  rule,  administrative
12    procedures  and  eligibility  criteria for the grant program;
13    those rules must be consistent with the purposes of this Act.
14    The Treasurer may require  participants  in  the  Elder  Care
15    Savings  Fund,  providers  of long-term health care services,
16    and  other  necessary  parties  to  assist   in   determining
17    eligibility for financial incentives under the grant program.
18        (c)  All  grants shall be subject to annual appropriation
19    of  moneys  for  that  purpose  by  the   General   Assembly.
20    Financial  incentives  shall be provided only if, in the sole
21    judgment of the Director of the Bureau  of  the  Budget,  the
22    total  incentives offered in a given year will not exceed the
23    balance of the  Elder  Care  Savings  Fund  on  the  day  the
24    incentives are offered by more than 0.5%.

25        Section  30.  Education program.  The State Treasurer, in
26    cooperation with the Department on Aging and area agencies on
27    aging, shall develop and implement an education  program  and
28    marketing  strategies  designed  to  inform residents of this
29    State about the options  available  for  financing  long-term
30    health   care  and  the  need  to  accumulate  the  financial
31    resources necessary to pay  for  that  care.   The  Treasurer
32    shall report to the General Assembly on the program developed
33    and  its  operation  before May 1, 2004.  The Treasurer shall
 
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 1    adopt rules with respect to his  or  her  powers  and  duties
 2    under this Act.

 3        Section 35. Elder Care Trust Authority.
 4        (a)  The  Elder  Care  Trust  Authority  is created.  The
 5    Authority shall consist of 11 members, 7  of  whom  shall  be
 6    appointed as follows:  the Speaker and Minority Leader of the
 7    House  of  Representatives  and  the  President  and Minority
 8    Leader of the Senate shall each appoint one member,  and  the
 9    Governor  shall  appoint 3 members.  The State Treasurer, the
10    Director of the Bureau of the Budget, the Director of  Public
11    Health,  and the Director of the Illinois Economic and Fiscal
12    Commission, or their respective designees, shall  each  be  a
13    member  ex  officio.   The  Governor  and legislative leaders
14    shall give consideration to selecting  members  that  include
15    representatives   from   the   following  categories:  (i)  a
16    director, officer, or employee of  an  entity  that  provides
17    long-term  health  care  services;  (ii)  a  person  having a
18    favorable reputation for skill, knowledge, and experience  in
19    the  field  of  portfolio  management;  and  (iii)  a  person
20    experienced  in  and having a favorable reputation for skill,
21    knowledge,  and  experience  in  the  long-term  health  care
22    savings field.
23        The State Treasurer or  the  Treasurer's  designee  shall
24    serve as the chairperson of the Authority.
25        The  appointed  members  of the Authority first appointed
26    shall serve for terms expiring on  June  30  in  2004,  2005,
27    2006,  2007,  2008,  2009,  and  2010, respectively, or until
28    their respective successors  have  been  appointed  and  have
29    qualified.   The  initial term of each of those members shall
30    be determined by lot.  Upon the expiration of the term of any
31    member, the member's successor shall be appointed for a  term
32    of  6 years and until his or her successor has been appointed
33    and has qualified.
 
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 1        Any vacancy shall be filled in the manner of the original
 2    appointment for the remainder of the unexpired term.
 3        Any member  of  the  Authority  may  be  removed  by  the
 4    appointing  authority for misfeasance, malfeasance, or wilful
 5    neglect of duty or other cause  after  notice  and  a  public
 6    hearing,  unless that notice and hearing are expressly waived
 7    by the member in writing.
 8        Members  are  entitled  to  be  compensated  from  moneys
 9    appropriated to the  State  Treasurer  for  their  reasonable
10    expenses actually incurred in performing their duties.
11        Staff  assistance  shall  be provided to the Authority by
12    the State Treasurer.
13        The Authority shall meet at least once each year.
14        (b)  The Authority has the following responsibilities:
15             (1)  To  make  recommendations  to  the  Elder  Care
16        Savings Fund staff regarding the marketing of the fund to
17        ensure the use of the fund by participants throughout the
18        State for long-term health care purposes.
19             (2)  To advise the Elder Care Savings Fund staff  on
20        an  effective  advertising campaign to inform the general
21        public about the fund and its availability.
22             (3)  To advise the Elder  Care  Savings  Fund  staff
23        regarding the investment portfolio of the fund.
24             (4)  After  the  creation  of the Elder Care Savings
25        Fund, to assess the  effectiveness  of  the  program  and
26        recommend  constructive  changes  to  the  Bureau  of the
27        Budget.
28             (5)  To make recommendations to the General Assembly
29        regarding statutory  changes  that  the  Authority  deems
30        necessary or desirable.

31        Section  99.  Effective date.  This Act takes effect upon
32    becoming law.