Bill Text: IL SB1766 | 2023-2024 | 103rd General Assembly | Introduced

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Bill Title: 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.

Spectrum: Partisan Bill (Democrat 5-0)

Status: (Introduced) 2024-04-15 - Chief Sponsor Changed to Sen. Don Harmon [SB1766 Detail]

Download: Illinois-2023-SB1766-Introduced.html

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103RD GENERAL ASSEMBLY State of Illinois 2023 and 2024 SB1766 Introduced 2/9/2023, by Sen. Ann Gillespie SYNOPSIS AS INTRODUCED:
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
A BILL FOR
SB1766 LRB103 30579 LNS 57016 b
AN ACT concerning civil law.
Be it enacted by the People of the State of Illinois,
represented in the General Assembly:
Section 5. The State Finance Act is amended by adding
Section 5.990 as follows:
(30 ILCS 105/5.990 new)
Sec. 5.990. The Antitrust Enforcement Fund.
Section 10. The Illinois Antitrust Act is amended by
changing Section 7.2 and by adding Sections 7.2a and 13 as
follows:
(740 ILCS 10/7.2) (from Ch. 38, par. 60-7.2)
Sec. 7.2. (1) Whenever it appears to the Attorney General
that any person has engaged in, is engaging in, or is about to
engage in any act or practice prohibited by this Act, or that
any person has assisted or participated in any agreement or
combination of the nature described herein, he may, in his
discretion, conduct an investigation as he deems necessary in
connection with the matter and has the authority prior to the
commencement of any civil or criminal action as provided for
in the Act to subpoena witnesses, and pursuant to a subpoena
(i) compel their attendance for the purpose of examining them

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

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

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While in the possession of the Attorney General and under
such reasonable terms and conditions as the Attorney General
shall prescribe: (A) documentary material shall be available
for examination by the person who produced such material or by
any duly authorized representative of such person, (B)
transcript of oral testimony shall be available for
examination by the person who produced such testimony, or his
or her counsel and (C) answers to interrogatories shall be
available for examination by the person who swore to their
accuracy.
Except as otherwise provided in this Section, no
documentary material, transcripts of oral testimony, or
answers to interrogatories, or copies thereof, in the
possession of the Attorney General shall be available for
examination by any individual other than an authorized
employee of the Attorney General or other law enforcement
officials, federal, State, or local, without the consent of
the person who produced such material, transcripts, or
interrogatory answers. Such documentary material, transcripts
of oral testimony, or answers to interrogatories, or copies
thereof may be used by the Attorney General in any
administrative or judicial action or proceeding.
For purposes of this Section, all documentary materials,
transcripts of oral testimony, or answers to interrogatories
obtained by the Attorney General from other law enforcement
officials, information voluntarily produced to the Attorney

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

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

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

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"Out-of-state health care facility" means a health care
facility that is not headquartered in this State and does not
do business in this State.
"Provider organization" means a corporation, partnership,
business trust, association, or organized group of persons,
whether incorporated or not, which is in the business of
health care delivery or management and that represents 7 or
more health care providers in contracting with health carriers
or third-party administrators for the payment of health care
services. "Provider organization" includes physician
organizations, physician-hospital organizations, independent
practice associations, provider networks, and accountable care
organizations.
"Third-party administrator" means an entity that
administers payments for health care services on behalf of a
client in exchange for an administrative fee.
(c) 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.
Covered transactions between an Illinois health care
facility and an out-of-state health care facility must provide
notice under this subsection where the out-of-state entity
generates $10,000,000 or more in annual revenue from patients
residing in this State.
(d) The written notice provided by the parties under

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

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Hart-Scott-Rodino filing to the Attorney General satisfies the
notice requirement under subsections (c) and (d).
(f) The Attorney General may make any requests for
additional information from the parties within 30 days of the
date notice is received under subsections (c) and (d). If the
Attorney General requests additional information, the merger
may not proceed until 30 days after the parties have
substantially complied with the request. Nothing in this
Section precludes the Attorney General from conducting an
investigation or enforcing State or federal antitrust laws at
a later date.
(g) Any health care facility that fails to comply with any
provision of this Section 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 this Section.
Whenever 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 provisions of this
Section, the Attorney General may apply for and obtain, in an
action in the Circuit Court of Sangamon or Cook County, a
temporary restraining order or injunction, or both,
prohibiting the health care facility from continuing its
noncompliance or doing any act in furtherance thereof. The
court may make such further orders or judgments, at law or in
equity, as may be necessary to remedy such noncompliance.

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