98TH GENERAL ASSEMBLY
State of Illinois
2013 and 2014
SB1292

 

Introduced 2/5/2013, by Sen. Andy Manar

 

SYNOPSIS AS INTRODUCED:
 
See Index

    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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1    AN ACT concerning health facilities.
 
2    Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
 
4    Section 5. The Department of Public Health Powers and
5Duties Law of the Civil Administrative Code of Illinois is
6amended by changing Section 2310-130 as follows:
 
7    (20 ILCS 2310/2310-130)  (was 20 ILCS 2310/55.82)
8    Sec. 2310-130. Medicare or Medicaid certification fee;
9Health Care Facility and Program Survey Fund. To establish and
10charge a fee to any facility or program applying to be
11certified to participate in the Medicare program under Title
12XVIII of the federal Social Security Act or in the Medicaid
13program under Title XIX of the federal Social Security Act to
14cover the costs associated with the application, inspection,
15and survey of the facility or program and processing of the
16application. The Department shall establish the fee by rule,
17and the fee shall be based only on those application,
18inspection, and survey and processing costs not reimbursed to
19the State by the federal government. The fee shall be paid by
20the facility or program before the application is processed.
21    The fees received by the Department under this Section
22shall be deposited into the Health Care Facility and Program
23Survey Fund, which is hereby created as a special fund in the

 

 

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1State treasury. Moneys in the Fund shall be appropriated to the
2Department and may be used for any costs incurred by the
3Department, including personnel costs, in the processing of
4applications for Medicare or Medicaid certification.
5    Beginning July 1, 2011, the Department shall employ a
6minimum of one surveyor for every 500 licensed long term care
7beds. Beginning July 1, 2012, the Department shall employ a
8minimum of one surveyor for every 400 licensed long term care
9beds. Beginning July 1, 2013, the Department shall employ a
10minimum of one surveyor for every 300 licensed long term care
11beds.
12    The Department shall establish a surveyor development unit
13funded, subject to Section 3-518 of the Nursing Home Care Act,
14from money deposited in the Long Term Care Monitor/Receiver
15Fund.
16(Source: P.A. 96-1372, eff. 7-29-10; 97-489, eff. 1-1-12.)
 
17    Section 10. The Equity in Long-term Care Quality Act is
18amended by changing Section 15 as follows:
 
19    (30 ILCS 772/15)
20    Sec. 15. Equity in Long-term Care Quality Fund.
21    (a) There is created in the State treasury a special fund
22to be known as the Equity in Long-term Care Quality Fund.
23Grants shall be funded using federal civil monetary penalties
24collected and deposited into the Long Term Care

 

 

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1Monitor/Receiver Fund established under the Nursing Home Care
2Act. Subject to appropriation and Section 3-518 of the Nursing
3Home Care Act, moneys in the Fund shall be used to improve the
4quality of nursing home care in areas without access to
5high-quality long-term care. Interest earned on moneys in the
6Fund shall be deposited into the Fund.
7    (b) The Department may use no more than 10% of the moneys
8deposited into the Fund in any year to administer the program
9established by the Fund and to implement the requirements of
10the Nursing Home Care Act with respect to distressed
11facilities.
12(Source: P.A. 96-1372, eff. 7-29-10.)
 
13    Section 15. The Abuse Prevention Review Team Act is amended
14by changing Section 50 as follows:
 
15    (210 ILCS 28/50)
16    Sec. 50. Funding. Notwithstanding any other provision of
17law, to the extent permitted by federal law, the Department
18shall use moneys from fines paid by facilities licensed under
19the Nursing Home Care Act, the Specialized Mental Health
20Rehabilitation Act, or the ID/DD Community Care Act for
21violating requirements for certification under Titles XVIII
22and XIX of the Social Security Act to implement the provisions
23of this Act. The Department shall use moneys deposited in the
24Long Term Care Monitor/Receiver Fund, subject to Section 3-518

 

 

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1of the Nursing Home Care Act, to pay the costs of implementing
2this Act that cannot be met by the use of federal civil
3monetary penalties.
4(Source: P.A. 96-339, eff. 7-1-10; 97-38, eff. 6-28-11; 97-227,
5eff. 1-1-12; 97-813, eff. 7-13-12.)
 
6    Section 20. The Nursing Home Care Act is amended by
7changing Section 3-103 and by adding Section 3-518 as follows:
 
8    (210 ILCS 45/3-103)  (from Ch. 111 1/2, par. 4153-103)
9    Sec. 3-103. The procedure for obtaining a valid license
10shall be as follows:
11        (1) Application to operate a facility shall be made to
12    the Department on forms furnished by the Department.
13        (2) All license applications shall be accompanied with
14    an application fee. The fee for an annual license shall be
15    $1,990. Facilities that pay a fee or assessment pursuant to
16    Article V-C of the Illinois Public Aid Code shall be exempt
17    from the license fee imposed under this item (2). The fee
18    for a 2-year license shall be double the fee for the annual
19    license. The fees collected shall be deposited with the
20    State Treasurer into the Long Term Care Monitor/Receiver
21    Fund, which has been created as a special fund in the State
22    treasury. This special fund is to be used by the Department
23    for expenses related to the appointment of monitors and
24    receivers as contained in Sections 3-501 through 3-518

 

 

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1    3-517 of this Act, for the enforcement of this Act, for
2    expenses related to surveyor development, and for
3    implementation of the Abuse Prevention Review Team Act. All
4    federal moneys received as a result of expenditures from
5    the Fund and all interest earned on moneys in the Fund
6    shall be deposited into the Fund. The Department may reduce
7    or waive a penalty pursuant to Section 3-308 only if that
8    action will not threaten the ability of the Department to
9    meet the expenses required to be met by the Long Term Care
10    Monitor/Receiver Fund. The application shall be under oath
11    and the submission of false or misleading information shall
12    be a Class A misdemeanor. The application shall contain the
13    following information:
14            (a) The name and address of the applicant if an
15        individual, and if a firm, partnership, or
16        association, of every member thereof, and in the case
17        of a corporation, the name and address thereof and of
18        its officers and its registered agent, and in the case
19        of a unit of local government, the name and address of
20        its chief executive officer;
21            (b) The name and location of the facility for which
22        a license is sought;
23            (c) The name of the person or persons under whose
24        management or supervision the facility will be
25        conducted;
26            (d) The number and type of residents for which

 

 

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1        maintenance, personal care, or nursing is to be
2        provided; and
3            (e) Such information relating to the number,
4        experience, and training of the employees of the
5        facility, any management agreements for the operation
6        of the facility, and of the moral character of the
7        applicant and employees as the Department may deem
8        necessary.
9        (3) Each initial application shall be accompanied by a
10    financial statement setting forth the financial condition
11    of the applicant and by a statement from the unit of local
12    government having zoning jurisdiction over the facility's
13    location stating that the location of the facility is not
14    in violation of a zoning ordinance. An initial application
15    for a new facility shall be accompanied by a permit as
16    required by the "Illinois Health Facilities Planning Act".
17    After the application is approved, the applicant shall
18    advise the Department every 6 months of any changes in the
19    information originally provided in the application.
20        (4) Other information necessary to determine the
21    identity and qualifications of an applicant to operate a
22    facility in accordance with this Act shall be included in
23    the application as required by the Department in
24    regulations.
25(Source: P.A. 96-758, eff. 8-25-09; 96-1372, eff. 7-29-10;
2696-1504, eff. 1-27-11; 96-1530, eff. 2-16-11; 97-489, eff.

 

 

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11-1-12.)
 
2    (210 ILCS 45/3-518 new)
3    Sec. 3-518. Long Term Care Monitor/Receiver Fund.
4    (a) With regard to the Long Term Care Monitor/Receiver
5Fund, deposits, balances, and expenditures shall be separately
6maintained for all federal fees, fines, and penalties and all
7State fees, fines, and penalties paid into the Fund. This shall
8include all interest earned and all federal dollars received as
9a result of expenditures from the Fund. With the exception of
10expenditures for monitors and receivers appointed by the courts
11or by the Department under the authority granted in this Act,
12all authority for transfers or expenditures from the Fund is
13hereby suspended beginning fiscal year 2014. Beginning in
14fiscal year 2014, expenditures in excess of those for monitors
15and receivers shall be made after consultation with the
16Long-Term Care Facility Advisory Board and based on the
17estimated amount of fines and penalties collected as described
18in subsection (c) of this Section. Any funds transferred or
19expended in violation of this subsection shall be immediately
20restored.
21    (b) In the first month of each fiscal year, the Director
22shall prepare a plan for the reduction of violations and fines
23for the new fiscal year. The Director's plan shall, at a
24minimum, include a quarterly joint meeting of surveyors,
25supervisors, providers, State and regional administrators, and

 

 

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1federally-authorized long-term care ombudsman aimed at
2reducing violations of State and federal regulations. The
3Department shall solicit suggested topics from all potential
4attendees. To meet this requirement, the Department shall, at a
5minimum, post the solicitation for topics and notice of the
6meeting on its Internet website and request associations
7representing both providers and long-term care ombudsmen to
8notify their members.
9    (c) The plan shall also include an estimate of funds
10available in the Long Term Care Monitor/Receiver Fund for the
11upcoming fiscal year taking into account moneys required to be
12deposited into the Fund from all sources.
13    (d) Based on the estimate described in subsection (c) of
14this Section, the Director shall prepare a list of recommended
15expenditures in excess of the amount needed for monitors and
16receivers specifying the dollar amount for each to be expended
17for the fiscal year and identifying multi-year obligations.
18Expenditures associated with the Director's plan for the
19reduction of violations shall be given priority over all
20expenditures from the Fund, except those associated with
21payment for monitors and receivers.
22    (e) Prior to the implementation of the plan and the
23expenditure of funds for purposes other than the payment of
24monitors and receivers, the Director shall seek the advice of
25the Long-Term Care Facility Advisory Board, which shall meet as
26soon after the beginning of the fiscal year as practicable. Any

 

 

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1changes to the plan or the proposed list of expenditures shall
2be submitted to the Advisory Board for their comment prior to
3implementation. All documents shall be sent electronically to
4Advisory Board members at least 48 hours in advance of a
5scheduled meeting.
6    (f) Notwithstanding any other law to the contrary, the Long
7Term Care Monitor/Receiver Fund is not subject to sweeps,
8administrative chargebacks, or any other fiscal or budgetary
9maneuver that would in any way transfer any amount from the
10Long Term Care Monitor/Receiver Fund into any other fund of the
11State.
 
12    Section 25. The ID/DD Community Care Act is amended by
13changing Section 3-103 as follows:
 
14    (210 ILCS 47/3-103)
15    Sec. 3-103. Application for license; financial statement.
16The procedure for obtaining a valid license shall be as
17follows:
18        (1) Application to operate a facility shall be made to
19    the Department on forms furnished by the Department.
20        (2) All license applications shall be accompanied with
21    an application fee. The fee for an annual license shall be
22    $995. Facilities that pay a fee or assessment pursuant to
23    Article V-C of the Illinois Public Aid Code shall be exempt
24    from the license fee imposed under this item (2). The fee

 

 

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

 

 

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

 

 

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1(Source: P.A. 96-339, eff. 7-1-10.)
 
2    Section 99. Effective date. This Act takes effect upon
3becoming law.

 

 

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1 INDEX
2 Statutes amended in order of appearance
3    20 ILCS 2310/2310-130was 20 ILCS 2310/55.82
4    30 ILCS 772/15
5    210 ILCS 28/50
6    210 ILCS 45/3-103from Ch. 111 1/2, par. 4153-103
7    210 ILCS 45/3-518 new
8    210 ILCS 47/3-103