Bill Text: IL HB3813 | 2017-2018 | 100th General Assembly | Introduced

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Bill Title: Amends the Community-Integrated Living Arrangements Licensure and Certification Act. Adds provisions concerning required disclosures and contract requirements for providers of community-integrated living arrangements. Provides that at the time of or prior to the execution of a contract to provide continuing care at a community-integrated living arrangement, or at the time of or prior to the transfer of any money or other property to a provider by or on behalf of a prospective resident, whichever shall first occur, a provider shall deliver a disclosure statement to the person with whom the contract is to be entered into that contains specified information. Provides that all contracts for continuing care at a community-integrated living arrangement used by a provider shall include specified information. Contains provisions requiring a community-integrated living arrangement to make certain disclosures to the Department of Human Services. Provides that residents may receive, upon request, specified information from providers and may submit comments. Provides that providers shall, to the maximum extent practicable, offer specified explanations, inform residents of certain matters, and make use of specified standards and practices. Provides that a violation of these provisions by a provider of a community-integrated living arrangement shall constitute a deceptive trade practice under the Uniform Deceptive Trade Practices Act. Makes a corresponding change in the Uniform Deceptive Trade Practices Act. Makes other changes.

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Introduced - Dead) 2018-03-01 - Tabled [HB3813 Detail]

Download: Illinois-2017-HB3813-Introduced.html

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100TH GENERAL ASSEMBLY State of Illinois 2017 and 2018 HB3813 Introduced , by Rep. Kathleen Willis SYNOPSIS AS INTRODUCED:
210 ILCS 135/14.5 new
815 ILCS 510/2 from Ch. 121 1/2, par. 312
Amends the Community-Integrated Living Arrangements Licensure and Certification Act. Adds provisions concerning required disclosures and contract requirements for providers of community-integrated living arrangements. Provides that at the time of or prior to the execution of a contract to provide continuing care at a community-integrated living arrangement, or at the time of or prior to the transfer of any money or other property to a provider by or on behalf of a prospective resident, whichever shall first occur, a provider shall deliver a disclosure statement to the person with whom the contract is to be entered into that contains specified information. Provides that all contracts for continuing care at a community-integrated living arrangement used by a provider shall include specified information. Contains provisions requiring a community-integrated living arrangement to make certain disclosures to the Department of Human Services. Provides that residents may receive, upon request, specified information from providers and may submit comments. Provides that providers shall, to the maximum extent practicable, offer specified explanations, inform residents of certain matters, and make use of specified standards and practices. Provides that a violation of these provisions by a provider of a community-integrated living arrangement shall constitute a deceptive trade practice under the Uniform Deceptive Trade Practices Act. Makes a corresponding change in the Uniform Deceptive Trade Practices Act. Makes other changes.
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FISCAL NOTE ACT MAY APPLY
A BILL FOR
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AN ACT concerning regulation.
Be it enacted by the People of the State of Illinois,
represented in the General Assembly:
Section 5. The Community-Integrated Living Arrangements
Licensure and Certification Act is amended by adding Section
14.5 as follows:
(210 ILCS 135/14.5 new)
Sec. 14.5. Required disclosures; contract requirements.
(a) As used in this Section:
"Entrance fee" means an initial or deferred transfer to a
provider of a sum of money or other property made or promised
to be made as full or partial consideration for acceptance of a
specified individual as a resident in a community-integrated
living arrangement. No part of any fee payable on a periodic
basis for board, lodging, medical, or other health related
services rendered by the provider to a resident shall be
considered as constituting an entrance fee. No application
charge or other sum payable in addition to such periodic fees,
which does not exceed 4 times such periodic fees, shall be
considered as constituting an entrance fee.
"Continuing care" means the furnishing to an individual,
other than an individual related by consanguinity or affinity
to the person furnishing such care, of board and lodging

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together with nursing services, medical services, or other
health related services, regardless of whether or not the
lodging and services are provided at the same location,
pursuant to a contract effective for the life of the individual
or for a period in excess of one year.
"Long term care services" means a combination of nursing
home care, in-home nursing care, assisted living services,
independent living services, home health care, personal care,
homemaking, case management, or comparable services designed
to enable a functionally impaired resident to maintain himself
or herself and his or her living unit, as safely and
comfortably as is reasonably possible in a continuing care
setting as defined herein. "Long term care services" includes
necessary or medically necessary diagnostic, preventive,
therapeutic, rehabilitative, or custodial care.
"Living unit" means a room, apartment, cottage, or other
area within a community-integrated living arrangement set
aside for the exclusive use or control of one or more
identified individuals.
"Provider" means a person, including, but not limited to,
an agency licensed under this Act, undertaking to provide
continuing care in a community-integrated living arrangement
that charges an entrance fee.
"Residents association" means an organization formed by
the residents of a community-integrated living arrangement to
represent the residents' interests before providers and to

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promote and provide for the general welfare of residents.
(b) At the time of or prior to the execution of a contract
to provide continuing care at a community-integrated living
arrangement, or at the time of or prior to the transfer of any
money or other property to a provider by or on behalf of a
prospective resident, whichever shall first occur, the
provider shall deliver a disclosure statement to the person
with whom the contract is to be entered into, the text of which
shall contain, to the extent not clearly and completely set
forth in the contract for continuing care at a
community-integrated living arrangement attached as an exhibit
thereto, at least the following information:
(1) The name and business address of the provider and a
statement of whether the provider is a partnership,
corporation, or other type of legal entity.
(2) The names of the officers, directors, trustees, or
managing or general partners of the provider and a
description of each such person's occupation with the
provider.
(3) A description of the business experience of the
provider in the operation or management of similar
community-integrated living arrangements and of the
manager of the community-integrated living arrangement if
the community-integrated living arrangement will be
managed on a day-to-day basis by an organization other than
the provider. The description shall include information on

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any matter in which the manager or provider (A) has been
convicted of a felony or pleaded nolo contendere to a
felony charge, or been held liable or enjoined in a civil
action by final judgment, if the felony or civil action
involved fraud, embezzlement, fraudulent conversion, or
misappropriation of property or (B) is subject to a
currently effective injunctive or restrictive court order
or, within the past 5 years, had any State or federal
license or permit suspended or revoked as a result of an
action brought by a governmental agency or department, if
the order or action arose out of or related to business
activity of health care, including actions affecting a
license to operate a foster care facility, nursing home,
retirement home, home for aged, or community-integrated
living arrangement subject to this Act or a similar law in
another state.
(4) A statement as to whether or not the provider is,
or is affiliated with, a religious, charitable or other
nonprofit organization; the extent of the affiliation, if
any; the extent to which the affiliate organization will be
responsible for the financial and contract obligations of
the provider; and the provision of the federal Internal
Revenue Code, if any, under which the provider or affiliate
is exempt from the payment of income tax.
(5) The location and description of the physical
property or properties of the community-integrated living

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arrangement, existing or proposed and, to the extent
proposed, the estimated completion date or dates, whether
or not construction has begun and the contingencies subject
to which construction may be deferred.
(6) Certified financial statements of the provider,
including a balance sheet as of the end of the most recent
fiscal year and income statements for the 3 most recent
fiscal years of the provider or such shorter period of time
as the provider shall have been in existence. If the
provider's fiscal year ended more than 90 days prior to the
date the application is filed; interim financial
statements as of a date not more than 90 days prior to such
filing shall be included, but need not be certified.
(7) If the operation of the community-integrated
living arrangement has not yet commenced, a statement of
the anticipated source and application of the funds used or
to be used in the purchase or construction of the
community-integrated living arrangement, including: (A) an
estimate of the cost of purchasing or constructing and
equipping the community-integrated living arrangement
including such related costs as financing expense, legal
expense, land costs, occupancy development costs, and all
other similar costs which the provider expects to incur or
become obligated for prior to the commencement of
operations; (B) a description of any mortgage loan or other
long-term financing intended to be used for the financing

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of the community-integrated living arrangement, including
the anticipated terms and costs of such financing; (C) an
estimate of the total entrance fees to be received from
residents at or prior to commencement of operation of the
community-integrated living arrangement; (D) an estimate
of the funds, if any, which are anticipated to be necessary
to fund start-up losses and provide reserve funds to assure
full performance of the obligations of the provider under
contracts for continuing care at a community-integrated
living arrangement; (E) a projection of estimated income
from fees and charges other than entrance fees, showing
individual rates presently anticipated to be charged and
including a description of the assumptions used for
calculating the estimated occupancy rate of the
community-integrated living arrangement and the effect on
the income of the community-integrated living arrangement
of government subsidies for health care services, if any,
to be provided pursuant to the contracts for continuing
care at community-integrated living arrangements; and (F)
such other material information concerning the
community-integrated living arrangement or the provider as
the provider wishes to include.
(8) In the event the provider has had an actuarial
report prepared within the prior 2 years, the summary of a
report of an actuary that estimates the capacity of the
provider to meet its contractual obligations to the

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residents.
(9) Forecasted financial statements for the provider
of the next 5 years, including a balance sheet, a statement
of operations, a statement of cash flows, and a statement
detailing all significant assumptions, compiled by an
independent certified public accountant. Reporting
routine, categories, and structure may be further defined
by rules or forms adopted by the Secretary of Human
Services.
(10) The estimated number of residents of the
community-integrated living arrangement to be provided
services by the provider pursuant to the contract for
continuing care.
(11) Any other material information concerning the
community-integrated living arrangement or the provider
which, if omitted, would lead a reasonable person not to
enter into the contract.
The cover page of the disclosure statement shall state, in
a prominent location and in boldface type, the date of the
disclosure statement, the last date through which that
disclosure statement may be delivered if not earlier revised,
and that the delivery of the disclosure statement to a
contracting party before the execution of a contract for the
provision of continuing care is required by this Section but
that the disclosure statement has not been reviewed or approved
by any government agency or representative to ensure accuracy

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or completeness of the information set out. A copy of the
standard form of contract for continuing care used by the
provider shall be attached to each disclosure statement. The
Secretary of Human Service may prescribe a standardized format
for the disclosure statement required by this subsection. The
disclosure statement shall be in plain English and in language
understandable by a layperson and combine simplicity and
accuracy to fully advise residents of the items required by
this subsection. The Department may require a provider to alter
or amend its disclosure statement in order to provide full and
fair disclosure to prospective residents. The Department may
also require the revision of a disclosure statement which it
finds to be unnecessarily complex, confusing, or illegible.
(c) All contracts for continuing care at a
community-integrated living arrangement used by a provider
shall provide that:
(1) The party contracting with the provider may rescind
the contract at any time prior to occupying a living unit
in the community-integrated living arrangement, in which
event the party shall, within a reasonable period, receive
a refund of all money or property transferred to the
provider, less (A) those costs specifically incurred by the
provider or community-integrated living arrangement at the
request of the party and described in the contract or an
addendum thereto signed by the party; and (B) a reasonable
service charge, if set out in the contract, not to exceed

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1% of the entrance fee. If the unit is available for
occupancy on the occupancy date agreed upon in the
contract, and the party has failed to occupy said unit, the
party shall be deemed to have rescinded the contract,
unless the party and the provider agree in writing to
extend the occupancy date.
(2) If the unit is not available for occupancy on the
date agreed upon in the contract, and the party has not
rescinded the contract, the contract shall be
automatically canceled, unless the party and the provider
agree in writing to extend the occupancy date. If the
contract is automatically canceled the party shall, within
a reasonable period, receive a refund of all money or
property transferred to the provider plus a reasonable
inconvenience fee, if set out in the contract, not to
exceed 1% of the amount of the entrance fee.
(3) If a resident dies before occupying a living unit
in the community-integrated living arrangement, the
contract is automatically canceled and the legal
representative of the resident shall receive a refund of
all money or property transferred to the provider, less (A)
those costs specifically incurred by the provider or
community-integrated living arrangement at the request of
the resident and described in the contract or an addendum
thereto signed by the resident and (B) a reasonable service
charge, if set out in the contract, not to exceed 1% of the

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entrance fee.
(4) The entrance fee minus no more than 1% for each
month of occupancy shall be refunded to the resident when
the resident leaves the community-integrated living
arrangement or to the legal representative of a resident if
the resident dies.
(5) The services provided or proposed to be provided
under contracts for care at the community-integrated
living arrangement, including the extent to which medical
care is furnished, and specifying those services which are
included in the basic contract and those made available at
or by the community-integrated living arrangement at extra
charge.
(6) A description of all fees required of residents,
including the entrance fee and periodic charges, if any.
The description shall include: (A) a statement of the fees
that will be charged if the resident marries while at the
community-integrated living arrangement, and a statement
of the terms concerning the entry of a spouse to the
community-integrated living arrangement and the
consequences if the spouse does not meet the requirement
for entry, (B) the circumstances under which the resident
will be permitted to remain in the community-integrated
living arrangement in the event of possible financial
difficulties of a resident, (C) the conditions under which
a living unit occupied by a resident may be made available

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by the community-integrated living arrangement to a
different or new resident other than on the death of the
original resident, and (D) the manner by which the provider
may adjust periodic charges or other recurring fees and the
limitations on such adjustments, if any. If the
community-integrated living arrangement is already in
operation, or if the provider or manager operates one or
more similar community-integrated living arrangements
within the State, there shall be included tables showing
the frequency and average dollar amount of each increase in
periodic rates at each such community-integrated living
arrangement for the previous 5 years or such shorter period
as the community-integrated living arrangement may have
been operated by the provider or manager.
(7) The health and financial conditions required for an
individual to be accepted as a resident and to continue as
a resident once accepted, including the effect of any
change in the health or financial condition of a person
between the date of entering a contract for continuing care
at a community-integrated living arrangement and the date
of initial occupancy of a living unit by that person.
(8) The provisions that have been made or will be made,
if any, to provide reserve funding or security to enable
the provider to fully perform its obligations under
contracts to provide continuing care at a
community-integrated living arrangement, including the

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establishment of escrow accounts, trusts, or reserve
funds, together with the manner in which such funds will be
invested and the names and experience of persons who will
make the investment decisions.
Any contract drawn in violation of this subsection may be
rescinded by the resident and the resident shall be entitled to
a full refund of the entrance fee.
(d) For the purpose of this subsection, "market" shall
include, but not be limited to, establishment of a waiting
list, acceptance of money, property, or other consideration, or
distribution of marketing brochures by the provider.
Any provider intending to market or develop a
community-integrated living arrangement pursuant to a contract
which would require prepayment for some or all of the a
community-integrated living arrangement's services or
intending to market or develop additional units of a
community-integrated living arrangement shall forward a copy
of the following information to the Department within 30 days
following the implementation of marketing of the
community-integrated living arrangement:
(1) the disclosure statement required under subsection
(b) to be delivered to the persons with whom the contract
for a community-integrated living arrangement is to be
entered;
(2) the contracts for a community-integrated living
arrangement to be entered into by the provider under

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subsection (c) with a person who will occupy a living unit
in a community-integrated living arrangement; and
(3) any available advertising or promotional material
to be used in conjunction with such marketing effort.
A provider shall forward a copy of any changes in the
information required to be provided within 30 days after the
provider's utilization of such changed materials with
prospective residents or residents of the community-integrated
living arrangement. A provider intending to market or develop
additional units of a community-integrated living arrangement
who has filed such information with the Department pursuant to
a previous marketing effort on the same units shall not be
required to refile unless there has been a change in the
information submitted. The Department shall make such
information available to the public in a manner which shall
allow residents and prospective residents to make informed
choices regarding the selection of a provider, packages of
services and coverage, and care alternatives.
Such provider shall forward a copy of the building permit
for such community-integrated living arrangement to the
Department within 30 days after its issuance by the city or
town wherein such community-integrated living arrangement
shall be located.
(e) A provider providing continuing care at a
community-integrated living arrangement on the effective date
of this amendatory Act of the 100th General Assembly under a

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contract which would require prepayment for some or all of the
covered services shall, within 30 days after such effective
date, forward a copy of the following information to the
Department:
(1) the disclosure statement required under subsection
(b) to be delivered to the persons with whom the contract
for continuing care at a community-integrated living
arrangement shall be entered;
(2) the contract for continuing care at a
community-integrated living arrangement to be entered into
by the provider under subsection (c) with a person who will
occupy a living unit in any such community-integrated
living arrangement;
(3) any available advertising or promotional material
to be used in conjunction with such marketing effort; and
(4) a copy of the building permit for the
community-integrated living arrangement.
A provider shall forward a copy of any changes in the
information required to be provided within 30 days after the
provider's utilization of such materials with prospective
residents or residents of the community-integrated living
arrangement. A provider intending to market or develop
additional units of a community-integrated living arrangement
who has filed such information with the Department pursuant to
a previous marketing effort on the same units shall not be
required to refile unless there has been a change in the

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information submitted. The Department shall make such
information available to the public in a manner which shall
allow residents and prospective residents to make informed
choices regarding the selection of a provider, packages of
services and coverage, and care alternatives.
(f) Residents may:
(1) establish a residents association and elect the
officers of the residents association;
(2) receive, upon request, a current copy of the
community-integrated living arrangement's disclosure
statement as described in subsection (b), and providers
shall, upon request, make a reasonable effort to explain
the terms and information contained within the disclosure
document; provided, however, that nothing in this
paragraph shall be construed to modify the contractual
rights of residents or providers and providers may make
reasonable provisions for the form and manner in which such
requests shall be submitted;
(3) submit comments to providers on matters that may
affect the health and welfare of residents and affecting
the future of the community-integrated living arrangement,
including, but not limited to, the community-integrated
living arrangement's size and ownership and the provider's
financial health; provided, that providers may make
reasonable provisions for the form and manner in which such
comments shall be submitted; and provided further, that, to

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the maximum extent feasible, providers shall seek comment
from residents when designing or adopting policies that
significantly affect the future of the
community-integrated living arrangement;
(4) receive, upon request, information regarding any
major construction, modification, expansion or renovation
of the community-integrated living arrangement, including
information on cost estimates, funding, financing,
projected income, schedule and impacts on the existing
community-integrated living arrangement; provided, that
providers may make reasonable provisions for the form and
manner in which such requests shall be submitted; and
(5) receive, upon request, information regarding the
purpose and intended funding of all financial reserves kept
by the provider; provided, that providers may make
reasonable provisions for the form and manner in which such
requests may be submitted.
(g) Providers shall, to the maximum extent practicable:
(1) offer a reasonable explanation of any adjustments
in monthly fees and other major fees paid by residents;
(2) inform residents of matters that may affect the
health and welfare of residents and affecting the future of
the community-integrated living arrangement, including,
but not limited to, the community-integrated living
arrangement's size and ownership and the provider's
financial health; provided, that on such matters,

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providers shall facilitate communications between
residents and management and between residents and boards
or owners, which may include residents' representation on
the provider's managing body, but need not depend solely on
board representation; and
(3) make use of applicable standards and practices to
maintain and project each community-integrated living
arrangement's operational and financial viability and,
upon request, give that information regarding such
standards and practices used by providers to the residents;
provided, that providers may make reasonable provisions
for the form and manner in which such requests shall be
submitted.
(h) Notwithstanding the remedy set forth in subsection (c),
a violation of this Section by a provider of a
community-integrated living arrangement shall constitute a
deceptive trade practice under the Uniform Deceptive Trade
Practices Act.
Section 10. The Uniform Deceptive Trade Practices Act is
amended by changing Section 2 as follows:
(815 ILCS 510/2) (from Ch. 121 1/2, par. 312)
Sec. 2. Deceptive trade practices.
(a) A person engages in a deceptive trade practice when, in
the course of his or her business, vocation, or occupation, the

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person:
(1) passes off goods or services as those of another;
(2) causes likelihood of confusion or of
misunderstanding as to the source, sponsorship, approval,
or certification of goods or services;
(3) causes likelihood of confusion or of
misunderstanding as to affiliation, connection, or
association with or certification by another;
(4) uses deceptive representations or designations of
geographic origin in connection with goods or services;
(5) represents that goods or services have
sponsorship, approval, characteristics, ingredients, uses,
benefits, or quantities that they do not have or that a
person has a sponsorship, approval, status, affiliation,
or connection that he or she does not have;
(6) represents that goods are original or new if they
are deteriorated, altered, reconditioned, reclaimed, used,
or secondhand;
(7) represents that goods or services are of a
particular standard, quality, or grade or that goods are a
particular style or model, if they are of another;
(8) disparages the goods, services, or business of
another by false or misleading representation of fact;
(9) advertises goods or services with intent not to
sell them as advertised;
(10) advertises goods or services with intent not to

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supply reasonably expectable public demand, unless the
advertisement discloses a limitation of quantity;
(11) makes false or misleading statements of fact
concerning the reasons for, existence of, or amounts of
price reductions;
(11.1) is a provider of a community-integrated living
arrangement and violates Section 14.5 of the
Community-Integrated Living Arrangements Licensure and
Certification Act; or
(12) engages in any other conduct which similarly
creates a likelihood of confusion or misunderstanding.
(b) In order to prevail in an action under this Act, a
plaintiff need not prove competition between the parties or
actual confusion or misunderstanding.
(c) This Section does not affect unfair trade practices
otherwise actionable at common law or under other statutes of
this State.
(Source: P.A. 92-16, eff. 6-28-01)