State of Illinois
2023 and 2024


Introduced 2/9/2023, by Sen. Ann Gillespie


30 ILCS 105/5.990 new
740 ILCS 10/7.2  from Ch. 38, par. 60-7.2
740 ILCS 10/7.2a new
740 ILCS 10/13 new

    Amends the Illinois Antitrust Act. Provides that documentary material, transcripts of oral testimony, or answers to interrogatories obtained in an investigation of a violation of the Act may be used by the Attorney General in any administrative or judicial action or proceeding. Provides that information voluntarily produced to the Attorney General for purposes of an investigation of a violation of the Act or information provided to the Attorney General under a notice requirement shall be treated as if produced pursuant to a subpoena for purposes of maintaining the confidentiality of such information. Provides that health care facilities that are party to a covered transaction shall provide notice of such transaction to the Attorney General no later than 60 days prior to the transaction closing or effective date of the transaction. Provides that any health care facility that fails to comply with the notice requirement is subject to a civil penalty of not more than $500 per day for each day during which the health care facility is in violation of the requirement. When the Attorney General has reason to believe that a health care facility has engaged in or is engaging in a covered transaction without complying with the notice requirement, allows the Attorney General to apply for and obtain a temporary restraining order or injunction prohibiting the health care facility from continuing its noncompliance or doing any act in furtherance thereof. Makes a conforming change in the State Finance Act. Effective January 1, 2024.

LRB103 30579 LNS 57016 b





SB1766LRB103 30579 LNS 57016 b

1    AN ACT concerning civil law.
2    Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
4    Section 5. The State Finance Act is amended by adding
5Section 5.990 as follows:
6    (30 ILCS 105/5.990 new)
7    Sec. 5.990. The Antitrust Enforcement Fund.
8    Section 10. The Illinois Antitrust Act is amended by
9changing Section 7.2 and by adding Sections 7.2a and 13 as
11    (740 ILCS 10/7.2)  (from Ch. 38, par. 60-7.2)
12    Sec. 7.2. (1) Whenever it appears to the Attorney General
13that any person has engaged in, is engaging in, or is about to
14engage in any act or practice prohibited by this Act, or that
15any person has assisted or participated in any agreement or
16combination of the nature described herein, he may, in his
17discretion, conduct an investigation as he deems necessary in
18connection with the matter and has the authority prior to the
19commencement of any civil or criminal action as provided for
20in the Act to subpoena witnesses, and pursuant to a subpoena
21(i) compel their attendance for the purpose of examining them



SB1766- 2 -LRB103 30579 LNS 57016 b

1under oath, (ii) require the production of any books,
2documents, records, writings or tangible things hereafter
3referred to as "documentary material" which the Attorney
4General deems relevant or material to his investigation, for
5inspection, reproducing or copying under such terms and
6conditions as hereafter set forth, (iii) require written
7answers under oath to written interrogatories, or (iv) require
8compliance with a combination of the foregoing. Any subpoena
9issued by the Attorney General shall contain the following
11        (a) The statute and section thereof, the alleged
12    violation of which is under investigation and the general
13    subject matter of the investigation.
14        (b) The date and place at which time the person is
15    required to appear or produce documentary material in his
16    possession, custody or control or submit answers to
17    interrogatories in the office of the Attorney General
18    located in Springfield or Chicago. Said date shall not be
19    less than 10 days from date of service of the subpoena.
20        (c) Where documentary material is required to be
21    produced, the same shall be described by class so as to
22    clearly indicate the material demanded.
23    The Attorney General is hereby authorized, and may so
24elect, to require the production, pursuant to this section, of
25documentary material or interrogatory answers prior to the
26taking of any testimony of the person subpoenaed. Said



SB1766- 3 -LRB103 30579 LNS 57016 b

1documentary material shall be made available for inspection
2and copying during normal business hours at the principal
3place of business of the person served, or at such other time
4and place, as may be agreed upon by the person served and the
5Attorney General. When documentary material is demanded by
6subpoena, said subpoena shall not:
7        (i) contain any requirement which would be
8    unreasonable or improper if contained in a subpoena duces
9    tecum issued by a court of this State; or
10        (ii) require the disclosure of any documentary
11    material which would be privileged, or which for any other
12    reason would not be required by a subpoena duces tecum
13    issued by a court of this State.
14    (2) The production of documentary material in response to
15a subpoena served pursuant to this Section shall be made under
16a sworn certificate, in such form as the subpoena designates,
17by the person, if a natural person, to whom the demand is
18directed or, if not a natural person, by a person or persons
19having knowledge of the facts and circumstances relating to
20such production, to the effect that all of the documentary
21material required by the demand and in the possession,
22custody, or control of the person to whom the demand is
23directed has been produced and made available to the
24custodian. Answers to interrogatories shall be accompanied by
25a statement under oath attesting to the accuracy of the



SB1766- 4 -LRB103 30579 LNS 57016 b

1    While in the possession of the Attorney General and under
2such reasonable terms and conditions as the Attorney General
3shall prescribe: (A) documentary material shall be available
4for examination by the person who produced such material or by
5any duly authorized representative of such person, (B)
6transcript of oral testimony shall be available for
7examination by the person who produced such testimony, or his
8or her counsel and (C) answers to interrogatories shall be
9available for examination by the person who swore to their
11    Except as otherwise provided in this Section, no
12documentary material, transcripts of oral testimony, or
13answers to interrogatories, or copies thereof, in the
14possession of the Attorney General shall be available for
15examination by any individual other than an authorized
16employee of the Attorney General or other law enforcement
17officials, federal, State, or local, without the consent of
18the person who produced such material, transcripts, or
19interrogatory answers. Such documentary material, transcripts
20of oral testimony, or answers to interrogatories, or copies
21thereof may be used by the Attorney General in any
22administrative or judicial action or proceeding.
23    For purposes of this Section, all documentary materials,
24transcripts of oral testimony, or answers to interrogatories
25obtained by the Attorney General from other law enforcement
26officials, information voluntarily produced to the Attorney



SB1766- 5 -LRB103 30579 LNS 57016 b

1General for purposes of any investigation conducted under
2subsection (1), or information provided to the Attorney
3General pursuant to the notice requirement of Section 7.2a
4shall be treated as if produced pursuant to a subpoena served
5pursuant to this Section for purposes of maintaining the
6confidentiality of such information.
7    (3) No person shall, with intent to avoid, evade, prevent,
8or obstruct compliance in whole or in part by any person with
9any duly served subpoena of the Attorney General under this
10Act, knowingly remove from any place, conceal, withhold,
11destroy, mutilate, alter, or by any other means falsify any
12documentary material that is the subject of such subpoena. A
13violation of this subsection is a Class A misdemeanor. The
14Attorney General, with such assistance as he may from time to
15time require of the State's Attorneys in the several counties,
16shall investigate suspected violations of this subsection and
17shall commence and try all prosecutions under this subsection.
18(Source: P.A. 96-751, eff. 1-1-10; 96-1000, eff. 7-2-10.)
19    (740 ILCS 10/7.2a new)
20    Sec. 7.2a. Notification to the Attorney General.
21    (a) It is the intent of the General Assembly to ensure that
22competition beneficial to consumers and workers in health care
23markets across the State is vigorous and robust. When health
24care businesses compete, consumers benefit from higher quality
25services at reasonable prices, and health care workers benefit



SB1766- 6 -LRB103 30579 LNS 57016 b

1from higher wages and better conditions of employment which in
2turn improves patient care. The General Assembly supports that
3intent through this Section, which provides the Attorney
4General with notice of all material health care facility
5transactions in this State. The notice requirement will give
6the Attorney General information necessary to determine
7whether an investigation under this Act is warranted to
8determine whether a proposed transaction may substantially
9lessen competition, result in anticompetitive conduct, or
10potentially harm consumers or workers. This Section is
11intended to supplement the federal Hart-Scott-Rodino Antitrust
12Improvements Act of 1976, 15 U.S.C. 18a, by requiring notice
13of transactions not reportable under Hart-Scott-Rodino
14reporting thresholds and by providing the Attorney General
15with a copy of any filings made pursuant to the
16Hart-Scott-Rodino Antitrust Improvements Act of 1976.
17    (b) As used in this Section:
18    "Acquisition" means an agreement, arrangement, or activity
19the consummation of which results in a person acquiring
20directly or indirectly the control of another person, and
21includes the acquisition of voting securities and noncorporate
22interests, such as assets, capital stock, membership
23interests, or equity interests.
24    "Contracting affiliation" means the formation of a
25relationship between 2 or more entities that permits the
26entities to negotiate jointly with health carriers or



SB1766- 7 -LRB103 30579 LNS 57016 b

1third-party administrators over rates for professional medical
2services, or for one entity to negotiate on behalf of the other
3entity with health carriers or third-party administrators over
4rates for professional medical services. "Contracting
5affiliation" does not include arrangements among entities
6under common ownership.
7    "Covered transaction" means any merger, acquisition, or
8contracting affiliation between 2 or more health care
9facilities not previously under common ownership or
10contracting affiliation.
11    "Health care facility" has the same meaning as provided in
12Section 3 of the Health Facilities Planning Act. "Health care
13facility" includes provider organizations as defined in this
15    "Health care services revenue" means the total revenue
16received for health care services in the previous 12 months.
17    "Health carriers" has the same meaning as provided in
18Section 10 of the Health Carrier External Review Act.
19    "Illinois health care facility" means a health care
20facility that has an office in or is doing business in this
22    "Merger" means the consolidation of 2 or more
23organizations, including 2 or more organizations joining
24through a common parent organization or 2 or more
25organizations forming a new organization, but does not include
26a corporate reorganization.



SB1766- 8 -LRB103 30579 LNS 57016 b

1    "Out-of-state health care facility" means a health care
2facility that is not headquartered in this State and does not
3do business in this State.
4    "Provider organization" means a corporation, partnership,
5business trust, association, or organized group of persons,
6whether incorporated or not, which is in the business of
7health care delivery or management and that represents 7 or
8more health care providers in contracting with health carriers
9or third-party administrators for the payment of health care
10services. "Provider organization" includes physician
11organizations, physician-hospital organizations, independent
12practice associations, provider networks, and accountable care
14    "Third-party administrator" means an entity that
15administers payments for health care services on behalf of a
16client in exchange for an administrative fee.
17    (c) Health care facilities that are party to a covered
18transaction shall provide notice of such transaction to the
19Attorney General no later than 60 days prior to the
20transaction closing or effective date of the transaction.
21    Covered transactions between an Illinois health care
22facility and an out-of-state health care facility must provide
23notice under this subsection where the out-of-state entity
24generates $10,000,000 or more in annual revenue from patients
25residing in this State.
26    (d) The written notice provided by the parties under



SB1766- 9 -LRB103 30579 LNS 57016 b

1subsection (c) must include:
2        (1) the names of the parties and their current
3    business addresses;
4        (2) identification of all locations where health care
5    services are currently provided by each party;
6        (3) a brief description of the nature and purpose of
7    the proposed transaction;
8        (4) the anticipated effective date of the proposed
9    transaction;
10        (5) all proposed agreements relating to the proposed
11    transaction;
12        (6) all agreements regarding collateral transactions
13    that relate to the principal transaction; and
14        (7) any reports of financial and economic analysis
15    that the party reviewed or relied on in negotiating the
16    proposed transaction.
17    Nothing in this subsection prohibits the parties to a
18covered transaction from voluntarily providing additional
19information to the Attorney General.
20    (e) Any health care facility conducting business in this
21State that files a premerger notification with the Federal
22Trade Commission or the United States Department of Justice,
23in compliance with the Hart-Scott-Rodino Antitrust
24Improvements Act of 1976, 15 U.S.C. 18a, shall provide a copy
25of such filing to the Attorney General at the same time as it
26is provided to the federal government. Providing a copy of the



SB1766- 10 -LRB103 30579 LNS 57016 b

1Hart-Scott-Rodino filing to the Attorney General satisfies the
2notice requirement under subsections (c) and (d).
3    (f) The Attorney General may make any requests for
4additional information from the parties within 30 days of the
5date notice is received under subsections (c) and (d). If the
6Attorney General requests additional information, the merger
7may not proceed until 30 days after the parties have
8substantially complied with the request. Nothing in this
9Section precludes the Attorney General from conducting an
10investigation or enforcing State or federal antitrust laws at
11a later date.
12    (g) Any health care facility that fails to comply with any
13provision of this Section is subject to a civil penalty of not
14more than $500 per day for each day during which the health
15care facility is in violation of this Section.
16    Whenever the Attorney General has reason to believe that a
17health care facility has engaged in or is engaging in a covered
18transaction without complying with the provisions of this
19Section, the Attorney General may apply for and obtain, in an
20action in the Circuit Court of Sangamon or Cook County, a
21temporary restraining order or injunction, or both,
22prohibiting the health care facility from continuing its
23noncompliance or doing any act in furtherance thereof. The
24court may make such further orders or judgments, at law or in
25equity, as may be necessary to remedy such noncompliance.



SB1766- 11 -LRB103 30579 LNS 57016 b

1    (740 ILCS 10/13 new)
2    Sec. 13. Antitrust Enforcement Fund. Any penalties
3collected from an entity for violations of this Act shall be
4deposited into the Antitrust Enforcement Fund, a special fund
5created in the State treasury that is dedicated to enforcing
6this Act.
7    Section 99. Effective date. This Act takes effect January
81, 2024.