Full Text of HB4664 100th General Assembly
HB4664ham001 100TH GENERAL ASSEMBLY | Rep. Kathleen Willis Filed: 4/24/2018
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| 1 | | AMENDMENT TO HOUSE BILL 4664
| 2 | | AMENDMENT NO. ______. Amend House Bill 4664 by replacing | 3 | | everything after the enacting clause with the following:
| 4 | | "Section 1. Short title. This Act may be cited as the | 5 | | Continuing Care Retirement Community Transparency Act. | 6 | | Section 5. Purpose. This Act is intended to establish new | 7 | | and strengthen existing rights for Illinois seniors residing in | 8 | | continuing care retirement communities. Given that the | 9 | | Department on Aging estimates a 57% increase in State residents | 10 | | ages 60 and over from the years 2000 to 2030, the General | 11 | | Assembly recognizes the need to proactively pass this Act to | 12 | | ensure adequate protections for Illinois seniors. The General | 13 | | Assembly finds the adoption of this Act necessary to increase | 14 | | standards to safeguard seniors from potentially harmful, | 15 | | ambiguous, or unfair agreements associated with independent | 16 | | living and continuing care retirement communities. The |
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| 1 | | proposed reforms will further demonstrate the State of | 2 | | Illinois' commitment to protecting seniors in their homes, | 3 | | communities, and applicable long-term care establishments and | 4 | | facilities. | 5 | | Section 10. Definitions. As used in this Act: | 6 | | "Continuing care contract" means a contract to provide to a | 7 | | person for the duration of the person's life or for a term in | 8 | | excess of 11 months services that may include nursing services, | 9 | | medical services, personal care services, or any combination of | 10 | | these services, in addition to maintenance services for the | 11 | | person in a facility, conditioned upon the transfer of an | 12 | | entrance fee to the provider of the services in addition to or | 13 | | in lieu of the payment of regular periodic charges for the care | 14 | | and services involved.
| 15 | | "Department" means the Department of Public Health. | 16 | | "Director" means the Director of Public Health. | 17 | | "Entrance fee" means an initial or deferred transfer to a | 18 | | provider of a sum of money or property that is made or promised | 19 | | to be made by a person entering into a continuing care contract | 20 | | and assures a resident of services under the terms of a | 21 | | continuing care contract. | 22 | | "Facility" means a place or places in which a provider | 23 | | undertakes to provide: (1) a resident with nursing services, | 24 | | medical services, or personal care services, in addition to | 25 | | maintenance services for the person's life or a term in excess |
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| 1 | | of 11 months in accordance with a continuing care contract; and | 2 | | (2) a non-resident with nursing services, medical services, or | 3 | | personal care services, in addition to maintenance services for | 4 | | the person's life or a term in excess of 11 months. | 5 | | "Living unit" means an apartment, room, or other area | 6 | | within a facility set aside for the exclusive use of one or | 7 | | more identified residents. | 8 | | "Maintenance services" means food, shelter, and laundry | 9 | | services. | 10 | | "Medical services" means those services pertaining to | 11 | | medical or dental care that are performed in behalf of a | 12 | | patient at the direction of a physician licensed under the | 13 | | Medical Practice Act of 1987 or a dentist licensed under the | 14 | | Illinois Dental Practice Act by the physician or dentist, by a | 15 | | registered nurse licensed under the Nurse Practice Act, by a | 16 | | licensed practical nurse licensed under the Nurse Practice Act, | 17 | | or by other professional and technical personnel. | 18 | | "Non-resident" means a person admitted to a facility who | 19 | | has not entered into a continuing care contract.
| 20 | | "Nursing services" means those services pertaining to the | 21 | | curative, restorative, and preventive aspects of nursing care | 22 | | that are performed at the direction of a physician licensed | 23 | | under the Medical Practice Act of 1987 by or under the | 24 | | supervision of a registered nurse licensed under the Nurse | 25 | | Practice Act or a licensed practical nurse licensed under the | 26 | | Nurse Practice Act. |
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| 1 | | "Personal care services" means assistance with meals, | 2 | | dressing, movement, bathing, or other personal needs or | 3 | | maintenance, or general supervision and oversight of the | 4 | | physical and mental well-being of an individual, who may be | 5 | | incapable of managing his or her person whether or not a | 6 | | guardian has been appointed for the individual. | 7 | | "Provider" means a person who provides services in | 8 | | accordance with a continuing care contract.
| 9 | | "Resident" means a person who enters into a continuing care | 10 | | contract with a provider or who is designated in a continuing | 11 | | care contract to be a person provided with maintenance | 12 | | services, nursing services, medical services, personal care | 13 | | services, or any combination of these services. | 14 | | Section 15. Required disclosures; continuing care contract | 15 | | requirements. | 16 | | (a) At the time of or before the execution of a continuing | 17 | | care contract or at the time of or before the transfer of any | 18 | | money or other property to a provider by or on behalf of a | 19 | | prospective resident, whichever shall first occur, the | 20 | | provider shall deliver a disclosure statement to the person | 21 | | with whom the continuing care contract is to be entered into, | 22 | | the text of which shall contain, to the extent not clearly and | 23 | | completely set forth in the continuing care contract attached | 24 | | as an exhibit to the continuing care contract, at least the | 25 | | following information: |
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| 1 | | (1) The name and business address of the provider and a | 2 | | statement of whether the provider is a partnership, | 3 | | corporation, or other type of legal entity. | 4 | | (2) A description of the business experience of the | 5 | | provider in the operation or management of similar | 6 | | facilities and of the manager of the facility, if the | 7 | | facility will be managed on a day-to-day basis by an | 8 | | organization other than the provider. The description | 9 | | shall include information on any matter in which the | 10 | | manager or provider: (i) has been convicted of a felony or | 11 | | pleaded nolo contendere to a felony charge or been held | 12 | | liable or enjoined in a civil action by final judgment, if | 13 | | the felony or civil action involved fraud, embezzlement, | 14 | | fraudulent conversion, or misappropriation of property; or | 15 | | (ii) is subject to a currently effective injunctive or | 16 | | restrictive court order or, within the last 5 years, had | 17 | | any State or federal license or permit suspended or revoked | 18 | | as a result of an action brought by a governmental agency | 19 | | or department, if the order or action arose out of or | 20 | | related to business activity of health care, including | 21 | | actions affecting a license to operate a long-term care | 22 | | facility, retirement home, home for the aged, or assisted | 23 | | living establishment subject to this Act or a similar law | 24 | | in Illinois or another state. | 25 | | (3) A statement as to whether the provider is, or is | 26 | | affiliated with, a religious, charitable, or other |
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| 1 | | nonprofit organization; the extent of the affiliation, if | 2 | | any; the extent to which the affiliate organization will be | 3 | | responsible for the financial and contract obligations of | 4 | | the provider; and the provision of the federal Internal | 5 | | Revenue Code, if any, under which the provider or affiliate | 6 | | is exempt from the payment of income tax. | 7 | | (4) The location and description of the physical | 8 | | property or properties of the facility, existing or | 9 | | proposed, and, to the extent proposed, the estimated | 10 | | completion date or dates, whether construction has begun, | 11 | | and the contingencies subject to which construction may be | 12 | | deferred. | 13 | | (5) Certified financial statements of the provider, | 14 | | including a balance sheet as of the end of the most recent | 15 | | fiscal year and income statements for the 3 most recent | 16 | | fiscal years of the provider or such shorter period of time | 17 | | as the provider shall have been in existence. If the | 18 | | provider's fiscal year ended more than 90 days prior to the | 19 | | date the application is filed, interim financial | 20 | | statements as of a date not more than 90 days before the | 21 | | filing shall be included, but need not be certified. | 22 | | (6) If the operation of the facility has not yet | 23 | | commenced, a statement of the anticipated source and | 24 | | application of the funds used or to be used in the purchase | 25 | | or construction of the facility, including: (i) an estimate | 26 | | of the cost of purchasing or constructing and equipping the |
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| 1 | | facility, including related costs such as financing | 2 | | expense, legal expense, land costs, occupancy development | 3 | | costs, and all other similar costs that the provider | 4 | | expects to incur or become obligated for before the | 5 | | commencement of operations; (ii) a description of any | 6 | | mortgage loan or other long-term financing intended to be | 7 | | used for the financing of the facility, including the | 8 | | anticipated terms and costs of the financing; (iii) an | 9 | | estimate of the total entrance fees to be received from | 10 | | residents at or before commencement of operation of the | 11 | | facility; (iv) an estimate of the funds, if any, that are | 12 | | anticipated to be necessary to fund start-up losses and | 13 | | provide reserve funds to ensure full performance of the | 14 | | obligations of the provider under a continuing care | 15 | | contract; (v) a projection of estimated income from fees | 16 | | and charges other than entrance fees, showing individual | 17 | | rates presently anticipated to be charged and including a | 18 | | description of the assumptions used for calculating the | 19 | | estimated occupancy rate of the facility and the effect on | 20 | | the income of the facility of government subsidies for | 21 | | health care services; and (vi) such other material | 22 | | information concerning the facility or the provider as the | 23 | | provider wishes to include. | 24 | | (7) Forecasted financial statements for the provider | 25 | | of the next 5 years, including a balance sheet, a statement | 26 | | of operations, a statement of cash flows, and a statement |
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| 1 | | detailing all significant assumptions, compiled by an | 2 | | independent certified public accountant. | 3 | | The cover page of the disclosure statement shall state, in | 4 | | a prominent location and in boldface type, the date of the | 5 | | disclosure statement and that the delivery of the disclosure | 6 | | statement to a contracting party before the execution of a | 7 | | continuing care contract is required by this Section but that | 8 | | the disclosure statement has not been reviewed or approved by | 9 | | any government agency or representative to ensure accuracy or | 10 | | completeness of the information set out. A copy of the standard | 11 | | form of a continuing care contract used by the provider shall | 12 | | be attached to each disclosure statement. The Department may | 13 | | require a provider to alter or amend its disclosure statement | 14 | | in order to provide full and fair disclosure to prospective | 15 | | residents. The Department may also require the revision of a | 16 | | disclosure statement that it finds to be unnecessarily complex, | 17 | | confusing, or illegible. | 18 | | (b) A continuing care contract for a facility used by a | 19 | | provider shall provide all of the following: | 20 | | (1) The party contracting with the provider may rescind | 21 | | the continuing care contract at any time before occupying a | 22 | | living unit in the facility, in which event the party | 23 | | shall, within a reasonable period, receive a refund of all | 24 | | money or property transferred to the provider, less: (i) | 25 | | those costs specifically incurred by the provider or | 26 | | facility at the request of the party and described in the |
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| 1 | | continuing care contract or an addendum thereto signed by | 2 | | the party; and (ii) a reasonable service charge, if set out | 3 | | in the continuing care contract, not to exceed 1% of the | 4 | | entrance fee. If the living unit is available for occupancy | 5 | | on the occupancy date agreed upon in the continuing care | 6 | | contract, and the party failed to occupy the living unit, | 7 | | the party shall be deemed to have rescinded the continuing | 8 | | care contract, unless the party and the provider agree in | 9 | | writing to extend the occupancy date. | 10 | | (2) If the living unit is not available for occupancy | 11 | | on the date agreed upon in the continuing care contract, | 12 | | then the party has 14 days to rescind the continuing care | 13 | | contract. If the continuing care contract is rescinded, | 14 | | then, within a reasonable period, the party shall receive a | 15 | | refund of all money or property transferred to the provider | 16 | | plus a reasonable inconvenience fee, if set out in the | 17 | | continuing care contract, not to exceed 1% of the amount of | 18 | | the entrance fee. | 19 | | (3) If a resident dies before occupying a living unit | 20 | | in the facility, the continuing care contract is | 21 | | automatically canceled and the legal representative of the | 22 | | resident shall receive a refund of all money or property | 23 | | transferred to the provider, less: (i) those costs | 24 | | specifically incurred by the provider or facility at the | 25 | | request of the party and described in the continuing care | 26 | | contract or an addendum to the continuing care contract |
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| 1 | | signed by the party; and (ii) a reasonable service charge, | 2 | | if set out in the continuing care contract, not to exceed | 3 | | 1% of the entrance fee. | 4 | | (4) The services provided or proposed to be provided | 5 | | under a continuing care contract, including the extent to | 6 | | which medical care is furnished, and specify those services | 7 | | that are included in the basic continuing care contract and | 8 | | those made available at or by the facility at extra charge. | 9 | | (5) A description of all fees required of residents, | 10 | | including the entrance fee and periodic charges, if any. If | 11 | | the facility is already in operation, or if the provider or | 12 | | manager operates one or more similar facilities within the | 13 | | State, there shall be included tables showing the frequency | 14 | | and average dollar amount of each increase in monthly rates | 15 | | at each facility for the previous 5 years or such shorter | 16 | | period as the facility may have been operated by the | 17 | | provider or manager. | 18 | | (6) The health and financial conditions required for an | 19 | | individual to be accepted as a resident and to continue as | 20 | | a resident once accepted, including the effect of any | 21 | | change in the health or financial condition of a person | 22 | | between the date of entering a continuing care contract and | 23 | | the date of initial occupancy of a living unit by that | 24 | | person. | 25 | | (7) The provisions that have been made or will be made, | 26 | | if any, to provide reserve funding or security to enable |
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| 1 | | the provider to fully perform its obligations under a | 2 | | continuing care contract, including the establishment of | 3 | | escrow accounts, trusts, or reserve funds. | 4 | | (c) A provider providing continuing care at a facility on | 5 | | the effective date of this Act under a continuing care contract | 6 | | that requires prepayment for some or all of the covered | 7 | | services shall, within 180 days after the effective date of | 8 | | this Act, forward a copy of the following to the Department: | 9 | | (1) the disclosure statement required under | 10 | | subsection (a) to be delivered to a person with whom a | 11 | | continuing care contract shall be entered; and | 12 | | (2) the continuing care contract to be entered into | 13 | | by the provider under subsection (b) with a person who | 14 | | will occupy a living unit in a facility. | 15 | | The Department shall make the information available to the | 16 | | public. | 17 | | (d) Residents may: | 18 | | (1) establish a residents' association and elect the | 19 | | officers of the residents' association; | 20 | | (2) receive, upon request, a current copy of a | 21 | | facility's disclosure statement as described in subsection | 22 | | (a), and providers shall, upon request, make a reasonable | 23 | | effort to explain the terms and information contained | 24 | | within the disclosure document; however, nothing in this | 25 | | paragraph (2) shall be construed to modify the contractual | 26 | | rights of residents or providers; providers may make |
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| 1 | | reasonable provisions for the form and manner in which the | 2 | | requests shall be submitted; | 3 | | (3) submit comments to providers on matters that may | 4 | | affect the health and welfare of residents and affect the | 5 | | future of the facility, including, but not limited to, the | 6 | | facility's size and ownership and the provider's financial | 7 | | health; providers may make reasonable provisions for the | 8 | | form and manner in which the comments shall be submitted | 9 | | and shall seek comment from residents when designing or | 10 | | adopting policies that significantly affect the future of | 11 | | the facility; | 12 | | (4) receive, upon request, information regarding any | 13 | | major construction, modification, expansion, or renovation | 14 | | of the facility, including information on cost estimates, | 15 | | funding, financing, projected income, schedule, and | 16 | | impacts on the existing facility; providers may make | 17 | | reasonable provisions for the form and manner in which the | 18 | | requests shall be submitted; and | 19 | | (5) receive, upon request, information regarding the | 20 | | purpose and intended funding of all financial reserves kept | 21 | | by a provider; providers may make reasonable provisions for | 22 | | the form and manner in which the requests may be submitted. | 23 | | (e) A provider shall: | 24 | | (1) offer a reasonable explanation of any adjustment in | 25 | | monthly fees and other major fees paid by residents; and | 26 | | (2) inform residents of matters that may affect the |
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| 1 | | health and welfare of residents and affecting the future of | 2 | | the facility, including, but not limited to, the facility's | 3 | | size and ownership and the provider's financial health; on | 4 | | these matters, the providers shall facilitate | 5 | | communications between residents and management, which may | 6 | | include residents' representation on the provider's | 7 | | managing body, but need not depend solely on board | 8 | | representation. | 9 | | (f) Notwithstanding the remedy set forth in subsection (b), | 10 | | a violation of this Section by a provider for a facility shall | 11 | | constitute an unlawful practice under the Consumer Fraud and | 12 | | Deceptive Business Practices Act. | 13 | | (g) A facility must comply with this Section on and after | 14 | | 180 days after the effective date of this Act. | 15 | | Section 20. Audits of providers. The Director or his or her | 16 | | authorized designee may conduct an
audit or other examination | 17 | | of the financial affairs of any provider as often as the | 18 | | Director
deems it necessary for the protection of the interests | 19 | | of the residents and the people
of this State and, for this | 20 | | purpose, shall have access to the books, records,
financial | 21 | | data, and other documents maintained by the facility. | 22 | | Section 25. Annual report. A printed report compiled by the | 23 | | provider of a facility shall be provided to all residents of | 24 | | the facility on an annual basis and submitted to the Department |
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| 1 | | on an annual basis. The report shall be provided to a resident | 2 | | electronically, upon request. The report shall be updated with | 3 | | the information for the preceding year as well as future | 4 | | projections, where specified. The report shall be in 12-point | 5 | | bold type and provide, at minimum, the following: | 6 | | (1) a statement detailing the facility's financial | 7 | | condition; | 8 | | (2) audited balance sheets; | 9 | | (3) a statement of income and expenses; | 10 | | (4) a statement of cash flow; | 11 | | (5) a list of reserve assets; | 12 | | (6) a summary of the most recent State inspections; | 13 | | (7) the policy if financial difficulties arise; | 14 | | (8) the rules and regulations of the facility; | 15 | | (9) the life changes policy; and | 16 | | (10) anticipated fee increases for the upcoming year. | 17 | | Section 30. Online consumer database. The Department shall | 18 | | provide the public with online access to the annual reports | 19 | | required under Section 25, facility inspection reports, and any | 20 | | other documentation that the Department determines may be | 21 | | useful for the public regarding these facilities.
| 22 | | Section 35. Electronic submissions required. All | 23 | | documentation submitted to the Department under this Act shall | 24 | | be submitted electronically in a format stipulated by the |
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| 1 | | Department. | 2 | | Section 90. The Consumer Fraud and Deceptive Business | 3 | | Practices Act is amended by adding Section 2VVV as follows: | 4 | | (815 ILCS 505/2VVV new) | 5 | | Sec. 2VVV. Violations of the Continuing Care Retirement | 6 | | Community Transparency Act. A provider for a facility under the | 7 | | Continuing Care Retirement Community Transparency Act who | 8 | | violates Section 15 of the Continuing Care Retirement Community | 9 | | Transparency Act commits an unlawful practice within the | 10 | | meaning of this Act. ".
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