Full Text of HB4662 102nd General Assembly
HB4662ham002 102ND GENERAL ASSEMBLY | Rep. Denyse Wang Stoneback Filed: 2/24/2022
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| 1 | | AMENDMENT TO HOUSE BILL 4662
| 2 | | AMENDMENT NO. ______. Amend House Bill 4662 by replacing | 3 | | everything after the enacting clause with the following:
| 4 | | "Section 5. The Nursing Home Care Act is amended by adding | 5 | | Section 3-305.10 as follows: | 6 | | (210 ILCS 45/3-305.10 new) | 7 | | Sec. 3-305.10. Rental data disclosure; facility cost | 8 | | report; ownership interests. | 9 | | (a) In this Section: | 10 | | "Department" means the Department of Healthcare and Family | 11 | | Services. | 12 | | "Real estate partnership" means any combination of | 13 | | domestic or foreign corporations, limited liability companies, | 14 | | limited liability partnerships, subsidiaries, management | 15 | | companies, general partnerships, sole proprietorships, limited | 16 | | liability partnership, or any other legal entity recognized |
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| 1 | | under Illinois law that hold real estate together. | 2 | | "Related business entity" means one of 2 or more entities | 3 | | where: | 4 | | (1) the entities have (i) significant common purposes | 5 | | and substantial common membership or (ii) directly or | 6 | | indirectly substantial common direction or control; | 7 | | (2) either entity owns, directly or through one or | 8 | | more entities, a 50% or greater interest in the capital or | 9 | | profits of the other; | 10 | | (3) the entities share a real estate partnership; or | 11 | | (4) the owner or operator of either entity has a | 12 | | familial relationship or is a related party to a person | 13 | | who is an owner or operator of another entity. | 14 | | "Related party" includes a person's parent, stepparent, | 15 | | child, spouse, sibling, cousin, or other family member. | 16 | | (b) A for-profit facility licensed under this Act shall | 17 | | disclose, with each cost report filed with the Department, | 18 | | data regarding the lease or rental of the facility by a related | 19 | | business entity that owns the facility to a business operating | 20 | | the facility in any cost report submitted by the facility to | 21 | | the State. The data shall include the following: | 22 | | (1) Any new company created by an investor or a | 23 | | related party of an investor in the facility to hold a real | 24 | | estate asset of the facility, including the value of any | 25 | | building on the real estate, the value of the real | 26 | | property itself, and the value of the company itself. |
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| 1 | | (2) Information regarding the rental or provision of | 2 | | ventilators, pharmaceutical supplies, ambulances, | 3 | | management and professional services, or payroll services | 4 | | to any facility that is leased or rented by the facility's | 5 | | property owner, business owner, or a related party of a | 6 | | property owner or business owner. This information | 7 | | includes, but is not limited to, the following: | 8 | | (A) General services, such as dietary, | 9 | | housekeeping, laundry, maintenance, nonemergency | 10 | | transport, or food services. | 11 | | (B) Health care and program services, such as the | 12 | | facility's medical director, nursing and medical | 13 | | records, therapy, activities, certified nursing | 14 | | assistant training, program transportation, and | 15 | | special services. | 16 | | (C) General administration services, such as | 17 | | professional services, payroll services, clerical and | 18 | | general office services, data processing, in-service | 19 | | training and education, staff and resident | 20 | | transportation, consulting services, project manager | 21 | | services, and associated services. | 22 | | (D) Capital expenses and services, such as | 23 | | facility rent, leases, grounds, equipment, supplies, | 24 | | and vehicles. | 25 | | (E) Ancillary expenses. | 26 | | (F) Contractual services, such as: |
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| 1 | | (i) lobbying services; | 2 | | (ii) association dues; and | 3 | | (iii) campaign contributions. | 4 | | (3) Detailed information on any declaration of | 5 | | bankruptcy, as well as any sale of any privately or | 6 | | publicly held real estate to a real estate investor, | 7 | | investment trust, or private equity firm. This information | 8 | | includes, but is not limited to, the following: | 9 | | (A) Any required filings by a board of trustees | 10 | | under any other law and disclosure of the names of the | 11 | | president, leadership board, and members of the | 12 | | corporation, limited liability company, limited | 13 | | liability partnership, subsidiary, management company, | 14 | | general partnership, sole proprietorship, limited | 15 | | liability partnership, or other legal entity | 16 | | recognized under any State or federal law or rule. | 17 | | (B) Documentation that includes, but is not | 18 | | limited to, annual filings with the Secretary of State | 19 | | and any relevant federal filings. | 20 | | (C) Identification of entities that have either a | 21 | | significant ownership interest, meaning at or greater | 22 | | than 0.01%, in the facility or that play an important | 23 | | role in the facility's management, financing, or | 24 | | operation. | 25 | | (4) Details of any private equity backing of the | 26 | | facility. |
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| 1 | | (5) Information on the interest rates and other terms | 2 | | of loans and
credit provided by related business entities. | 3 | | (6) All income and expenses related to the business | 4 | | entity in question, from gross and net revenues to gross | 5 | | and net expenses, including, but not limited to, any | 6 | | expenses paid to management companies regarding the real | 7 | | property. | 8 | | (7) In a form that protects the privacy rights of | 9 | | residents, the facility's spending relating to Medicaid | 10 | | and Medicare and the amounts of State and federal funds | 11 | | received or spent by the facility. | 12 | | (c) The disclosure required under subsection (b) shall be | 13 | | filed with the Department's Bureau of Health Finance within 90 | 14 | | days after the end of each fiscal year. The Department shall | 15 | | publish the information collected on the Department's website | 16 | | for general
viewing and in an annual report to the General | 17 | | Assembly. The report to the General Assembly shall also | 18 | | include recommendations based on annual findings. | 19 | | (d) The Auditor General shall submit an annual audit | 20 | | report to the General Assembly concerning the quality of care, | 21 | | financial practices, and statewide oversight of Illinois' | 22 | | facilities. | 23 | | (e) Any individual who has an ownership interest in a | 24 | | facility that is placed on the federal Special Focus Facility | 25 | | List published by the Centers for Medicare and Medicaid | 26 | | Services or its list of candidates for that List shall not |
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| 1 | | obtain an ownership interest in another facility in the State | 2 | | until the facility has been removed from and remains off of the | 3 | | Special Focus Facility List or the list of candidates for that | 4 | | List for a period of 2 years. | 5 | | (f) Within 90
days after the effective date of this | 6 | | amendatory Act of the
102nd General Assembly, all long-term | 7 | | care providers operating or maintaining
a facility shall | 8 | | notify the Department of all individual owners and any | 9 | | individuals or organizations
that are part of a limited | 10 | | liability company with ownership of
that facility and the | 11 | | percentage of ownership of each owner. This
ownership | 12 | | reporting requirement does not include individual
shareholders | 13 | | in a publicly held corporation. In this subsection, "long-term | 14 | | care provider" has the same meaning as defined in Section 5B-1 | 15 | | of Article V-B of the Illinois Public Aid Code. | 16 | | (g) The Department, in collaboration with any other | 17 | | relevant State agency, shall work to improve State data | 18 | | collection forms for facilities to ensure that all relevant | 19 | | information is provided. | 20 | | (h) Notwithstanding any other provision of law to the | 21 | | contrary, State regulators shall determine whether facilities | 22 | | are paying fair market
prices for services and goods provided | 23 | | by related business entities, compel facility chief executive | 24 | | officers to personally sign annual disclosure reports pledging | 25 | | that such goods and
services were purchased from related | 26 | | parties at fair market rates, or both. ".
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