SB1836enr 102ND GENERAL ASSEMBLY

  
  
  

 


 
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1    AN ACT concerning regulation.
 
2    Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
 
4    Section 5. The Nurse Agency Licensing Act is amended by
5changing Sections 3, 13, 14, and 14.3 as follows:
 
6    (225 ILCS 510/3)  (from Ch. 111, par. 953)
7    Sec. 3. Definitions. As used in this Act:
8    "Certified nurse aide" means an individual certified as
9defined in Section 3-206 of the Nursing Home Care Act, Section
103-206 of the ID/DD Community Care Act, or Section 3-206 of the
11MC/DD Act, as now or hereafter amended.
12    "Covenant not to compete" means an agreement between a
13nurse agency and an employee that restricts the employee from
14performing:
15        (1) any work for another employer for a specified
16    period of time;
17        (2) any work in a specified geographic area; or
18        (3) any work for another employer that is similar to
19    the work the employee performs for the employer that is a
20    party to the agreement.
21    "Department" means the Department of Labor.
22    "Director" means the Director of Labor.
23    "Employee" means a nurse or a certified nurse aide.

 

 

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1    "Health care facility" is defined as in Section 3 of the
2Illinois Health Facilities Planning Act, as now or hereafter
3amended. "Health care facility" also includes any facility
4licensed, certified, or approved by any State agency and
5subject to regulation under the Assisted Living and Shared
6Housing Act or the Illinois Public Aid Code.
7    "Licensee" means any nurse nursing agency which is
8properly licensed under this Act.
9    "Long-term basis" means the placement of a nurse or a
10certified nurse aide at a health care facility for an initial
11employment, assignment, or referral term of more than 24
12continuous months by a nurse agency that incurs the following
13expenses to place the nurse or certified nurse aide at the
14health care facility: (i) educational material expenses, if
15required; (ii) expenses for credentialing, licensure, or
16certification; or (iii) expenses for airline travel, lodging,
17meals, and ground transportation provided to a nurse or
18certified nurse aide. "Long-term basis" does not include the
19placement of a nurse or a certified nurse aide at a health care
20facility for an initial employment, assignment, or referral
21term of an undefined duration.
22    "Nurse" means a registered nurse, a licensed practical
23nurse, an advanced practice registered nurse, or any
24individual licensed under the Nurse Practice Act.
25    "Nurse agency" means any individual, firm, corporation,
26partnership, or other legal entity that employs, assigns, or

 

 

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1refers nurses or certified nurse aides to a health care
2facility for a fee. The term "nurse agency" includes nurses
3registries. The term "nurse agency" does not include services
4provided by home health agencies licensed and operated under
5the Home Health, Home Services, and Home Nursing Agency
6Licensing Act or a licensed or certified individual who
7provides his or her own services as a regular employee of a
8health care facility, nor does it apply to a health care
9facility's organizing nonsalaried employees to provide
10services only in that facility.
11    "Temporary basis" means an initial employment, assignment,
12or referral term of an undefined duration or a duration of 24
13continuous months or less exclusive of any extension.
14(Source: P.A. 102-946, eff. 7-1-22.)
 
15    (225 ILCS 510/13)  (from Ch. 111, par. 963)
16    Sec. 13. Application for employment.
17    (a) Every nurse agency shall cause each applicant for
18employment, assignment, or referral, as a nurse to complete an
19application form including the following information:
20        (1) name and address of the applicant;
21        (2) whether or not such applicant is a nurse currently
22    licensed by the Department of Financial and Professional
23    Regulation;
24        (3) if so licensed, the number and date of such
25    license; and

 

 

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1        (4) references and dates and places of previous
2    employment.
3    Prior to employing, assigning, or referring a nurse, the
4agency shall contact the Department of Financial and
5Professional Regulation to determine whether the nurse's
6license is valid and in good standing. Written verification
7shall be sent by the Department of Financial and Professional
8Regulation within 20 working days. At least biennially
9thereafter, the nurse agency shall contact the Department of
10Financial and Professional Regulation to verify this
11information in writing. The nurse agency shall review the
12disciplinary report published by the Department of Financial
13and Professional Regulation on a monthly basis to determine
14whether the nurse's license is valid and in good standing.
15    (b) Every nurse agency shall cause each applicant for
16employment, assignment, or referral, as a certified nurse aide
17to complete an application form including the following
18information:
19        (1) name and address of the applicant;
20        (2) whether or not the nurse aide is registered as
21    having completed a certified course as approved by the
22    Department of Public Health; and
23        (3) references and dates and places of previous
24    employment.
25    Prior to employing, assigning, or referring a certified
26nurse aide, the agency shall review the information provided

 

 

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1on the Health Care Worker Registry to verify that the
2certification is valid. Prior to employing, assigning, or
3referring a certified nurse aide to a position at a health care
4employer or long-term facility as defined in the Health Care
5Worker Background Check Act, the nurse agency shall review the
6information provided on the Health Care Worker Registry to
7verify that the certified nurse aide is not ineligible for the
8position pursuant to Section 25 of the Health Care Worker
9Background Check Act.
10    (c) Every nurse agency shall check at least 2 recent
11references and the dates of employment provided by the
12applicant, unless the applicant has not had 2 previous
13employers.
14    (d) Knowingly employing, assigning, or referring to a
15health care facility a nurse or certified nurse aide with an
16illegally or fraudulently obtained or issued diploma,
17registration, license, certificate, or background study
18constitutes negligent hiring by a nurse agency and is a
19violation of this Act.
20    (e) Nurses or certified nurses aides employed, assigned,
21or referred to a health care facility by a nurse agency shall
22be deemed to be employees of the nurse agency while working for
23the nurse agency or on nurse agency employment, assignment, or
24referral and may only be terminated by the nurse agency for
25cause.
26(Source: P.A. 102-946, eff. 7-1-22; revised 8-22-22.)
 

 

 

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1    (225 ILCS 510/14)  (from Ch. 111, par. 964)
2    Sec. 14. Minimum Standards.
3    (a) The Department, by rule, shall establish minimum
4standards for the operation of nurse agencies. Those standards
5shall include, but are not limited to:
6        (1) the maintenance of written policies and
7    procedures;
8        (2) the maintenance and submission to the Department
9    of copies of all contracts between the nurse agency and
10    health care facility to which it assigns or refers nurses
11    or certified nurse aides and copies of all invoices to
12    health care facilities personnel. Executed contracts must
13    be sent to the Department within 5 business days of their
14    effective date; and
15        (3) the development of personnel policies for nurses
16    or certified nurse aides employed, assigned, or referred
17    to health care facilities, including a personal interview,
18    a reference check, an annual evaluation of each employee
19    (which may be based in part upon information provided by
20    health care facilities utilizing nurse agency personnel),
21    and periodic health examinations. Executed contracts must
22    be sent to the Department within 5 business days of their
23    effective date and are not subject to disclosure under the
24    Freedom of Information Act.
25        No less than 100% of the nurse or certified nurse aide

 

 

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1    hourly rate shall be paid to the nurse or certified nurse
2    aide employee.
3    (b) Each nurse agency shall have a nurse serving as a
4manager or supervisor of all nurses and certified nurses
5aides.
6    (c) Each nurse agency shall ensure that its employees meet
7the minimum licensing, training, continuing education, and
8orientation standards for which those employees are licensed
9or certified.
10    (d) A nurse agency shall not employ, assign, or refer for
11use in an Illinois health care facility a nurse or certified
12nurse aide unless certified or licensed under applicable
13provisions of State and federal law or regulations. Each
14certified nurse aide shall comply with all pertinent
15regulations of the Illinois Department of Public Health
16relating to the health and other qualifications of personnel
17employed in health care facilities.
18    (e) The Department may adopt rules to monitor the usage of
19nurse agency services to determine their impact.
20    (f) Nurse agencies are prohibited from recruiting
21potential employees on the premises of a health care facility
22or requiring, as a condition of employment, assignment, or
23referral, that their employees recruit new employees for the
24nurse agency from among the permanent employees of the health
25care facility to which the nurse agency employees have been
26employed, assigned, or referred, and the health care facility

 

 

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1to which such employees are employed, assigned, or referred is
2prohibited from requiring, as a condition of employment, that
3their employees recruit new employees from these nurse agency
4employees. Violation of this provision is a business offense.
5    (g) Nurse agencies are prohibited from entering into
6covenants not to compete with nurses and certified nurse aides
7if the nurse is employed, assigned, or referred by a nurse
8agency to a health care facility on a temporary basis or the
9certified nurse aide is employed, assigned, or referred by a
10nurse agency to a health care facility on a temporary basis. A
11covenant not to compete entered into on or after July 1, 2022
12(the effective date of Public Act 102-946) this amendatory Act
13of the 102nd General Assembly between a nurse agency and a
14nurse or a certified nurse aide is illegal and void if (i) the
15nurse is employed, assigned, or referred by a nurse agency to a
16health care facility on a temporary basis or (ii) the
17certified nurse aide is employed, assigned, or referred by a
18nurse agency to a health care facility on a temporary basis is
19illegal and void. In The nursing agency shall not, in any
20contract on a temporary basis with any nurse, certified nurse
21aide, employee or health care facility, a nurse agency is
22prohibited from requiring require the payment of liquidated
23damages, conversion fees, employment fees, buy-out fees,
24placement fees, or other compensation if the nurse or
25certified nurse aide employee is hired as a permanent employee
26of a health care facility.

 

 

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1    (g-5) Beginning on the effective date of this amendatory
2Act of the 102nd General Assembly and ending on December 31,
32027, a nurse agency may enter into a covenant not to compete
4with a nurse or a certified nurse aide if (i) the nurse is
5employed, assigned, or referred by a nurse agency to a health
6care facility on a long-term basis or (ii) the certified nurse
7aide is employed, assigned, or referred by a nurse agency to a
8health care facility on a long-term basis. However, if a
9covenant not to compete that was entered into on or before
10December 31, 2027 expires on or after January 1, 2028, the
11covenant not to compete shall remain in effect until its
12expiration date. To be enforceable, the term of a covenant not
13to compete entered into under this subsection must be
14concurrent with the term of the initial employment,
15assignment, or referral of the nurse or certified nurse aide
16to a health care facility. A contract on a long-term basis
17between any nurse, certified nurse aide, or health care
18facility and a nurse agency may provide for the payment of
19actual damages, conversion fees, employment fees, buy-out
20fees, placement fees, or other reasonable expenses resulting
21from a violation of the contract that occurred during the
22initial employment, assignment, or referral term.
23    (h) A nurse agency shall submit a report quarterly to the
24Department for each health care entity with whom the agency
25contracts that includes all of the following by provider type
26and county in which the work was performed:

 

 

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1        (1) A list of the average amount charged to the health
2    care facility for each individual employee category.
3        (2) A list of the average amount paid by the agency to
4    employees in each individual employee category.
5        (3) A list of the average amount of labor-related
6    costs paid by the agency for each employee category,
7    including payroll taxes, workers' compensation insurance,
8    professional liability coverage, credentialing and
9    testing, and other employee related costs.
10    The Department shall publish by county in which the work
11was performed the average amount charged to the health care
12facilities by nurse agencies for each individual worker
13category and the average amount paid by the agency to each
14individual worker category.
15    (i) The Department shall publish on its website the
16reports yearly by county.
17    (j) The Department of Labor shall compel production of the
18maintained records, as required under this Section, by the
19nurse agencies.
20(Source: P.A. 102-946, eff. 7-1-22.)
 
21    (225 ILCS 510/14.3)
22    Sec. 14.3. Contracts between nurse agencies and health
23care facilities.
24    (a) A contract entered into on or after the effective date
25of this amendatory Act of the 102nd General Assembly between

 

 

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1the nurse agency and health care facility must contain the
2following provisions:
3        (1) A full disclosure of charges and compensation. The
4    disclosure shall include a schedule of all hourly bill
5    rates per category of employee, a full description of
6    administrative charges, and a schedule of rates of all
7    compensation per category of employee, including, but not
8    limited to, hourly regular pay rate, shift differential,
9    weekend differential, hazard pay, charge nurse add-on,
10    overtime, holiday pay, and travel or mileage pay.
11        (2) A commitment that nurses or certified nurse aides
12    employed, assigned, or referred to a health care facility
13    by the nurse agency perform any and all duties called for
14    within the full scope of practice for which the nurse or
15    certified nurse aide is licensed or certified.
16        (3) No less than 100% of the nurse or certified nurse
17    aide hourly rate shall be paid to the nurse or certified
18    nurse aide employee.
19    (b) A party's failure to comply with the requirements of
20subsection (a) shall be a defense to the enforcement of a
21contract between a nurse agency and a health care facility.
22Any health care facility or nurse agency aggrieved by a
23violation of subsection (a) shall have a right of action in a
24State court against the offending party. A prevailing party
25may recover for each violation:
26        (1) liquidated damages of $1,500 or actual damages,

 

 

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1    whichever is greater;
2        (2) reasonable attorney's fees and costs, including
3    expert witness fees and other litigation expenses; and
4        (3) other relief, including an injunction, as the
5    court may deem appropriate.
6    (c) This Section does not apply to contracts on a
7long-term basis between a nurse agency and a health care
8facility providing for the employment, assignment, or referral
9of nurses or certified nurse aides to the health care
10facility.
11(Source: P.A. 102-946, eff. 7-1-22.)
 
12    Section 99. Effective date. This Act takes effect upon
13becoming law.