Bill Text: IL SB1292 | 2013-2014 | 98th General Assembly | Introduced

NOTE: There are more recent revisions of this legislation. Read Latest Draft

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Bill Title: Amends the Nursing Home Care Act. Provides that all federal moneys received as a result of expenditures from the Long Term Care Monitor/Receiver Fund and all interest earned on moneys in the Fund shall be deposited into the Fund (rather than all federal moneys received as a result of expenditures from the Fund shall be deposited into the Fund). Provides that, with regard to the Long Term Care Monitor/Receiver Fund, deposits, balances, and expenditures shall be separately maintained for all federal fees, fines, and penalties and all State fees, fines, and penalties paid into the Fund. Provides that this shall include all interest earned and all federal dollars received as a result of expenditures from the Fund. Provides that with the exception of expenditures for monitors and receivers appointed by the courts or by the Department of Public Health under the authority granted in the Act, all authority for transfers or expenditures from the Fund is hereby suspended beginning fiscal year 2014; beginning in fiscal year 2014, expenditures in excess of those for monitors and receivers shall be made after consultation with the Long-Term Care Facility Advisory Board and based on the estimated amount of fines and penalties collected; and any funds transferred or expended in violation of this provision shall be immediately restored. Sets forth provisions concerning the Director of Public Health's plan for the reduction of violations and fines and list of recommended expenditures in excess of the amount needed for monitors and receivers. Provides that the Fund is not subject to sweeps, administrative chargebacks, or any other fiscal or budgetary maneuver that would in any way transfer any amount from the Fund into any other fund of the State. Amends various Acts to make conforming changes. Effective immediately.

Spectrum: Slight Partisan Bill (Democrat 4-2)

Status: (Passed) 2013-07-15 - Public Act . . . . . . . . . 98-0085 [SB1292 Detail]

Download: Illinois-2013-SB1292-Introduced.html

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98TH GENERAL ASSEMBLY State of Illinois 2013 and 2014 SB1292 Introduced 2/5/2013, by Sen. Andy Manar SYNOPSIS AS INTRODUCED:
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Amends the Nursing Home Care Act. Provides that all federal moneys received as a result of expenditures from the Long Term Care Monitor/Receiver Fund and all interest earned on moneys in the Fund shall be deposited into the Fund (rather than all federal moneys received as a result of expenditures from the Fund shall be deposited into the Fund). Provides that, with regard to the Long Term Care Monitor/Receiver Fund, deposits, balances, and expenditures shall be separately maintained for all federal fees, fines, and penalties and all State fees, fines, and penalties paid into the Fund. Provides that this shall include all interest earned and all federal dollars received as a result of expenditures from the Fund. Provides that with the exception of expenditures for monitors and receivers appointed by the courts or by the Department of Public Health under the authority granted in the Act, all authority for transfers or expenditures from the Fund is hereby suspended beginning fiscal year 2014; beginning in fiscal year 2014, expenditures in excess of those for monitors and receivers shall be made after consultation with the Long-Term Care Facility Advisory Board and based on the estimated amount of fines and penalties collected; and any funds transferred or expended in violation of this provision shall be immediately restored. Sets forth provisions concerning the Director of Public Health's plan for the reduction of violations and fines and list of recommended expenditures in excess of the amount needed for monitors and receivers. Provides that the Fund is not subject to sweeps, administrative chargebacks, or any other fiscal or budgetary maneuver that would in any way transfer any amount from the Fund into any other fund of the State. Amends various Acts to make conforming changes. Effective immediately.
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FISCAL NOTE ACT MAY APPLY
A BILL FOR
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AN ACT concerning health facilities.
Be it enacted by the People of the State of Illinois,
represented in the General Assembly:
Section 5. The Department of Public Health Powers and
Duties Law of the Civil Administrative Code of Illinois is
amended by changing Section 2310-130 as follows:
(20 ILCS 2310/2310-130) (was 20 ILCS 2310/55.82)
Sec. 2310-130. Medicare or Medicaid certification fee;
Health Care Facility and Program Survey Fund. To establish and
charge a fee to any facility or program applying to be
certified to participate in the Medicare program under Title
XVIII of the federal Social Security Act or in the Medicaid
program under Title XIX of the federal Social Security Act to
cover the costs associated with the application, inspection,
and survey of the facility or program and processing of the
application. The Department shall establish the fee by rule,
and the fee shall be based only on those application,
inspection, and survey and processing costs not reimbursed to
the State by the federal government. The fee shall be paid by
the facility or program before the application is processed.
The fees received by the Department under this Section
shall be deposited into the Health Care Facility and Program
Survey Fund, which is hereby created as a special fund in the

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State treasury. Moneys in the Fund shall be appropriated to the
Department and may be used for any costs incurred by the
Department, including personnel costs, in the processing of
applications for Medicare or Medicaid certification.
Beginning July 1, 2011, the Department shall employ a
minimum of one surveyor for every 500 licensed long term care
beds. Beginning July 1, 2012, the Department shall employ a
minimum of one surveyor for every 400 licensed long term care
beds. Beginning July 1, 2013, the Department shall employ a
minimum of one surveyor for every 300 licensed long term care
beds.
The Department shall establish a surveyor development unit
funded, subject to Section 3-518 of the Nursing Home Care Act,
from money deposited in the Long Term Care Monitor/Receiver
Fund.
(Source: P.A. 96-1372, eff. 7-29-10; 97-489, eff. 1-1-12.)
Section 10. The Equity in Long-term Care Quality Act is
amended by changing Section 15 as follows:
(30 ILCS 772/15)
Sec. 15. Equity in Long-term Care Quality Fund.
(a) There is created in the State treasury a special fund
to be known as the Equity in Long-term Care Quality Fund.
Grants shall be funded using federal civil monetary penalties
collected and deposited into the Long Term Care

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Monitor/Receiver Fund established under the Nursing Home Care
Act. Subject to appropriation and Section 3-518 of the Nursing
Home Care Act, moneys in the Fund shall be used to improve the
quality of nursing home care in areas without access to
high-quality long-term care. Interest earned on moneys in the
Fund shall be deposited into the Fund.
(b) The Department may use no more than 10% of the moneys
deposited into the Fund in any year to administer the program
established by the Fund and to implement the requirements of
the Nursing Home Care Act with respect to distressed
facilities.
(Source: P.A. 96-1372, eff. 7-29-10.)
Section 15. The Abuse Prevention Review Team Act is amended
by changing Section 50 as follows:
(210 ILCS 28/50)
Sec. 50. Funding. Notwithstanding any other provision of
law, to the extent permitted by federal law, the Department
shall use moneys from fines paid by facilities licensed under
the Nursing Home Care Act, the Specialized Mental Health
Rehabilitation Act, or the ID/DD Community Care Act for
violating requirements for certification under Titles XVIII
and XIX of the Social Security Act to implement the provisions
of this Act. The Department shall use moneys deposited in the
Long Term Care Monitor/Receiver Fund, subject to Section 3-518

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of the Nursing Home Care Act, to pay the costs of implementing
this Act that cannot be met by the use of federal civil
monetary penalties.
(Source: P.A. 96-339, eff. 7-1-10; 97-38, eff. 6-28-11; 97-227,
eff. 1-1-12; 97-813, eff. 7-13-12.)
Section 20. The Nursing Home Care Act is amended by
changing Section 3-103 and by adding Section 3-518 as follows:
(210 ILCS 45/3-103) (from Ch. 111 1/2, par. 4153-103)
Sec. 3-103. The procedure for obtaining a valid license
shall be as follows:
(1) Application to operate a facility shall be made to
the Department on forms furnished by the Department.
(2) All license applications shall be accompanied with
an application fee. The fee for an annual license shall be
$1,990. Facilities that pay a fee or assessment pursuant to
Article V-C of the Illinois Public Aid Code shall be exempt
from the license fee imposed under this item (2). The fee
for a 2-year license shall be double the fee for the annual
license. The fees collected shall be deposited with the
State Treasurer into the Long Term Care Monitor/Receiver
Fund, which has been created as a special fund in the State
treasury. This special fund is to be used by the Department
for expenses related to the appointment of monitors and
receivers as contained in Sections 3-501 through 3-518

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3-517 of this Act, for the enforcement of this Act, for
expenses related to surveyor development, and for
implementation of the Abuse Prevention Review Team Act. All
federal moneys received as a result of expenditures from
the Fund and all interest earned on moneys in the Fund
shall be deposited into the Fund. The Department may reduce
or waive a penalty pursuant to Section 3-308 only if that
action will not threaten the ability of the Department to
meet the expenses required to be met by the Long Term Care
Monitor/Receiver Fund. The application shall be under oath
and the submission of false or misleading information shall
be a Class A misdemeanor. The application shall contain the
following information:
(a) The name and address of the applicant if an
individual, and if a firm, partnership, or
association, of every member thereof, and in the case
of a corporation, the name and address thereof and of
its officers and its registered agent, and in the case
of a unit of local government, the name and address of
its chief executive officer;
(b) The name and location of the facility for which
a license is sought;
(c) The name of the person or persons under whose
management or supervision the facility will be
conducted;
(d) The number and type of residents for which

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maintenance, personal care, or nursing is to be
provided; and
(e) Such information relating to the number,
experience, and training of the employees of the
facility, any management agreements for the operation
of the facility, and of the moral character of the
applicant and employees as the Department may deem
necessary.
(3) Each initial application shall be accompanied by a
financial statement setting forth the financial condition
of the applicant and by a statement from the unit of local
government having zoning jurisdiction over the facility's
location stating that the location of the facility is not
in violation of a zoning ordinance. An initial application
for a new facility shall be accompanied by a permit as
required by the "Illinois Health Facilities Planning Act".
After the application is approved, the applicant shall
advise the Department every 6 months of any changes in the
information originally provided in the application.
(4) Other information necessary to determine the
identity and qualifications of an applicant to operate a
facility in accordance with this Act shall be included in
the application as required by the Department in
regulations.
(Source: P.A. 96-758, eff. 8-25-09; 96-1372, eff. 7-29-10;
96-1504, eff. 1-27-11; 96-1530, eff. 2-16-11; 97-489, eff.

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1-1-12.)
(210 ILCS 45/3-518 new)
Sec. 3-518. Long Term Care Monitor/Receiver Fund.
(a) With regard to the Long Term Care Monitor/Receiver
Fund, deposits, balances, and expenditures shall be separately
maintained for all federal fees, fines, and penalties and all
State fees, fines, and penalties paid into the Fund. This shall
include all interest earned and all federal dollars received as
a result of expenditures from the Fund. With the exception of
expenditures for monitors and receivers appointed by the courts
or by the Department under the authority granted in this Act,
all authority for transfers or expenditures from the Fund is
hereby suspended beginning fiscal year 2014. Beginning in
fiscal year 2014, expenditures in excess of those for monitors
and receivers shall be made after consultation with the
Long-Term Care Facility Advisory Board and based on the
estimated amount of fines and penalties collected as described
in subsection (c) of this Section. Any funds transferred or
expended in violation of this subsection shall be immediately
restored.
(b) In the first month of each fiscal year, the Director
shall prepare a plan for the reduction of violations and fines
for the new fiscal year. The Director's plan shall, at a
minimum, include a quarterly joint meeting of surveyors,
supervisors, providers, State and regional administrators, and

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federally-authorized long-term care ombudsman aimed at
reducing violations of State and federal regulations. The
Department shall solicit suggested topics from all potential
attendees. To meet this requirement, the Department shall, at a
minimum, post the solicitation for topics and notice of the
meeting on its Internet website and request associations
representing both providers and long-term care ombudsmen to
notify their members.
(c) The plan shall also include an estimate of funds
available in the Long Term Care Monitor/Receiver Fund for the
upcoming fiscal year taking into account moneys required to be
deposited into the Fund from all sources.
(d) Based on the estimate described in subsection (c) of
this Section, the Director shall prepare a list of recommended
expenditures in excess of the amount needed for monitors and
receivers specifying the dollar amount for each to be expended
for the fiscal year and identifying multi-year obligations.
Expenditures associated with the Director's plan for the
reduction of violations shall be given priority over all
expenditures from the Fund, except those associated with
payment for monitors and receivers.
(e) Prior to the implementation of the plan and the
expenditure of funds for purposes other than the payment of
monitors and receivers, the Director shall seek the advice of
the Long-Term Care Facility Advisory Board, which shall meet as
soon after the beginning of the fiscal year as practicable. Any

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changes to the plan or the proposed list of expenditures shall
be submitted to the Advisory Board for their comment prior to
implementation. All documents shall be sent electronically to
Advisory Board members at least 48 hours in advance of a
scheduled meeting.
(f) Notwithstanding any other law to the contrary, the Long
Term Care Monitor/Receiver Fund is not subject to sweeps,
administrative chargebacks, or any other fiscal or budgetary
maneuver that would in any way transfer any amount from the
Long Term Care Monitor/Receiver Fund into any other fund of the
State.
Section 25. The ID/DD Community Care Act is amended by
changing Section 3-103 as follows:
(210 ILCS 47/3-103)
Sec. 3-103. Application for license; financial statement.
The procedure for obtaining a valid license shall be as
follows:
(1) Application to operate a facility shall be made to
the Department on forms furnished by the Department.
(2) All license applications shall be accompanied with
an application fee. The fee for an annual license shall be
$995. Facilities that pay a fee or assessment pursuant to
Article V-C of the Illinois Public Aid Code shall be exempt
from the license fee imposed under this item (2). The fee

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for a 2-year license shall be double the fee for the annual
license set forth in the preceding sentence. The fees
collected shall be deposited with the State Treasurer into
the Long Term Care Monitor/Receiver Fund, which has been
created as a special fund in the State treasury. This
special fund is to be used by the Department for expenses
related to the appointment of monitors and receivers as
contained in Sections 3-501 through 3-517 of this Act and
Section 3-518 of the Nursing Home Care Act. At the end of
each fiscal year, any funds in excess of $1,000,000 held in
the Long Term Care Monitor/Receiver Fund shall be deposited
in the State's General Revenue Fund. The application shall
be under oath and the submission of false or misleading
information shall be a Class A misdemeanor. The application
shall contain the following information:
(a) The name and address of the applicant if an
individual, and if a firm, partnership, or
association, of every member thereof, and in the case
of a corporation, the name and address thereof and of
its officers and its registered agent, and in the case
of a unit of local government, the name and address of
its chief executive officer;
(b) The name and location of the facility for which
a license is sought;
(c) The name of the person or persons under whose
management or supervision the facility will be

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conducted;
(d) The number and type of residents for which
maintenance, personal care, or nursing is to be
provided; and
(e) Such information relating to the number,
experience, and training of the employees of the
facility, any management agreements for the operation
of the facility, and of the moral character of the
applicant and employees as the Department may deem
necessary.
(3) Each initial application shall be accompanied by a
financial statement setting forth the financial condition
of the applicant and by a statement from the unit of local
government having zoning jurisdiction over the facility's
location stating that the location of the facility is not
in violation of a zoning ordinance. An initial application
for a new facility shall be accompanied by a permit as
required by the Illinois Health Facilities Planning Act.
After the application is approved, the applicant shall
advise the Department every 6 months of any changes in the
information originally provided in the application.
(4) Other information necessary to determine the
identity and qualifications of an applicant to operate a
facility in accordance with this Act shall be included in
the application as required by the Department in
regulations.

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(Source: P.A. 96-339, eff. 7-1-10.)
Section 99. Effective date. This Act takes effect upon
becoming law.
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INDEX
Statutes amended in order of appearance