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91_HB0077eng HB0077 Engrossed LRB9100521PTpk 1 AN ACT concerning long term health care. 2 Be it enacted by the People of the State of Illinois, 3 represented in the General Assembly: 4 Section 1. Short title. This Act may be cited as the 5 Elder Care Savings Fund Act. 6 Section 5. Declaration of purpose. It is declared (i) 7 that for the benefit of the people of the State of Illinois, 8 the conduct and increase of their commerce, the protection 9 and enhancement of their welfare, the development of 10 continued prosperity, and the improvement of their health and 11 living conditions, it is essential that this and future 12 generations be given the fullest opportunity to provide for 13 their long term health care needs and (ii) that to achieve 14 these ends it is of the utmost importance that Illinois 15 residents be provided with investment alternatives to enhance 16 their financial access to long term health care. It is the 17 intent of this Act to create a savings fund that will provide 18 residents of the State of Illinois with an investment option 19 that will earn the highest available rate of return while 20 managing risk and maintaining liquidity. 21 Section 10. Definitions. In this Act: 22 (a) "Assisted living establishment" or "establishment" 23 means a home, building, residence, or any other place where 24 sleeping accommodations are provided for at least 3 unrelated 25 adults, at least 80% of whom are 55 years of age or older and 26 where the following are provided consistent with the 27 purposes of this Act: 28 (1) services consistent with a social model that is 29 based on the premise that the resident's unit in assisted 30 living and shared housing is his or her own home; HB0077 Engrossed -2- LRB9100521PTpk 1 (2) community-based residential care for persons 2 who need assistance with activities of daily living, 3 including personal, supportive, and intermittent 4 health-related services available 24 hours per day, if 5 needed, to meet the scheduled and unscheduled needs of a 6 resident; 7 (3) counseling for health, social services, and 8 nutrition by licensed personnel or case coordination 9 units under the Department on Aging and the area agencies 10 on aging; 11 (4) mandatory services, whether provided directly 12 by the establishment or by another entity arranged for by 13 the establishment, with the consent of the resident or 14 resident's representative; and 15 (5) a physical environment that is a homelike 16 setting that includes the following and such other 17 elements as established by the Department in conjunction 18 with the Assisted Living and Shared Housing Advisory 19 Board: individual living units each of which shall 20 accommodate small kitchen appliances and contain private 21 bathing, washing, and toilet facilities, or private 22 washing and toilet facilities with a common bathing room 23 readily accessible to each resident. Units shall be 24 maintained for single occupancy except in cases in which 25 2 residents choose to share a unit. Sufficient common 26 space shall exist to permit individual and group 27 activities. 28 "Assisted living establishment" or "establishment" does 29 not mean any of the following: 30 (1) A home, institution, or similar place operated 31 by the federal government or the State of Illinois. 32 (2) A long-term care facility licensed under the 33 Nursing Home Care Act. However, a long term care facility 34 may convert distinct parts of the facility to assisted HB0077 Engrossed -3- LRB9100521PTpk 1 living. If the long-term care facility elects to do so, 2 the facility shall retain the Certificate of Need for its 3 nursing beds that were converted. 4 (3) A hospital, sanitarium, or other institution, 5 the principal activity or business of which is the 6 diagnosis, care, and treatment of human illness and that 7 is required to be licensed under the Hospital Licensing 8 Act. 9 (4) A facility for child care as defined in the 10 Child Care Act of 1969. 11 (5) A community living facility as defined in the 12 Community Living Facilities Licensing Act. 13 (6) A nursing home or sanitarium operated solely by 14 and for persons who rely exclusively upon treatment by 15 spiritual means through prayer in accordance with the 16 creed or tenants of a well-recognized church or religious 17 denomination. 18 (7) A facility licensed by the Department of Human 19 Services as a community-integrated living arrangement as 20 defined in the Community-Integrated Living Arrangements 21 Licensure and Certification Act. 22 (8) A supportive residence licensed under the 23 Supportive Residences Licensing Act. 24 (9) A life care facility as defined in the Life 25 Care Facilities Act; a life care facility may apply under 26 this Act to convert sections of the community to assisted 27 living. 28 (10) A free-standing hospice facility. 29 (11) A shared housing establishment. 30 (12) A supportive living facility as described in 31 Section 5-5.0la of the Illinois Public Aid Code. 32 (b) "Authority" means the Elder Care Trust Authority. 33 (c) "Elder Care Savings Fund" means the fund that is 34 created and administered by the State Treasurer to supplement HB0077 Engrossed -4- LRB9100521PTpk 1 and enhance the investment opportunities otherwise available 2 to Illinois residents seeking to save money to pay the costs 3 of long term health care. 4 Section 15. Establishment and Administration of the 5 Elder Care Savings Fund. 6 (a) In order to provide investors with investment 7 alternatives to enhance their financial access to long term 8 health care, and in furtherance of the public policy of this 9 Act, the State Treasurer may establish and administer an 10 Elder Care Savings Fund. 11 (b) The Treasurer, in administering the Elder Care 12 Savings Fund, may receive moneys from Illinois residents into 13 the fund and invest moneys within the fund on their behalf. 14 The Treasurer may invest the funds constituting the Elder 15 Care Savings Fund in the same manner and in the same types of 16 investments and subject to the same limitations provided for 17 the investment of funds in the State Treasury. The Treasurer 18 shall develop, publish, and implement an investment policy 19 covering the management of funds in the Elder Care Savings 20 Fund. The policy shall be published at least once each year 21 in at least one newspaper of general circulation in both 22 Springfield and Chicago, and each year as part of the audit 23 of the Elder Care Savings Fund by the Auditor General, which 24 shall be distributed to all participants in the fund. The 25 Treasurer shall notify all participants in writing, and the 26 Treasurer shall publish in a newspaper of general circulation 27 in both Chicago and Springfield any changes to the previously 28 published investment policy at least 30 calendar days before 29 implementing the policy. Any investment policy adopted by 30 the Treasurer shall be reviewed, and updated if necessary, 31 within 90 days following the installation of a new Treasurer. 32 (c) A portion of the administrative expenses of the 33 Elder Care Savings Fund shall be paid from the earnings of HB0077 Engrossed -5- LRB9100521PTpk 1 the fund. No more than one half of one percent of the assets 2 of the fund shall be used to pay administrative expenses. 3 The Treasurer shall seek an appropriation for any 4 administrative expenses that are not paid from the earnings 5 of the fund. As soon as the Elder Care Savings Fund reaches 6 an asset level that equals or exceeds $200 million, the 7 administration expenses of the Elder Care Savings Fund shall 8 be paid solely from its earnings. Interest earnings in 9 excess of administrative expenses shall be credited or paid 10 monthly to the several participants in the fund in a manner 11 which equitably reflects the differing amounts of their 12 respective investments in the fund and the differing periods 13 of time for which the amounts were in the custody of the 14 fund. 15 (d) The Treasurer shall promulgate rules and regulations 16 as he or she deems necessary for the efficient administration 17 of the Elder Care Savings Fund, including specification of 18 minimum and maximum amounts that may be deposited, minimum 19 and maximum periods of time for which deposits may be 20 retained in the fund, and conditions under which penalties 21 will be assessed for refunds of earnings that are not used 22 for long term health care expenses defined in Section 10 of 23 this Act. 24 (e) Upon creating an Elder Care Savings Fund the State 25 Treasurer shall give bond with 2 or more sufficient sureties, 26 payable to and for the benefit of the participants in the 27 Elder Care Savings Fund, in the penal sum of $500,000, 28 conditioned upon the faithful discharge of his or her duties 29 in relation to the fund. 30 Section 20. Exemption from taxation. As provided in 31 this Act, the investment in the Elder Care Savings Fund is in 32 all respects for the benefit of the People of the State of 33 Illinois, the conduct and increase of their commerce, the HB0077 Engrossed -6- LRB9100521PTpk 1 protection and enhancement of their welfare, the development 2 of continued prosperity, and the improvement of their health 3 and living conditions is for public purposes. In 4 consideration of those facts, income derived from investments 5 in the Elder Care Savings Fund and financial incentives 6 received under the grant program described in Section 25 of 7 this Act shall be free from all taxation by the State or its 8 political subdivisions, except for estate, transfer, and 9 inheritance taxes. 10 Section 25. Grant program. 11 (a) The Governor and the Director of the Bureau of the 12 Budget shall provide for a grant program of additional 13 financial incentives to be provided to participants in the 14 Elder Care Savings Program to encourage the use of the fund 15 and the income derived from the fund for one or more of the 16 following purposes: 17 (1) Care in a facility licensed under the Nursing 18 Home Care Act. 19 (2) Home health nursing services or home health 20 aide services provided by a home health agency licensed 21 under the Home Health Agency Licensing Act. 22 (3) Respite care as defined in the Respite Program 23 Act. 24 (4) Custodial care services. 25 (5) Care in a hospice licensed under the Hospice 26 Program Licensing Act. 27 (6) Long term health care services for the aged, 28 the disabled, or persons diagnosed as infected with HIV 29 or having AIDS or a related condition. These services 30 include, without limitation, chore-housekeeping services, 31 a personal care attendant, adult day care, assistive 32 equipment, home renovation, home-delivered meals, and 33 emergency response systems. As used in this paragraph, HB0077 Engrossed -7- LRB9100521PTpk 1 "AIDS" means acquired immunodeficiency syndrome; "HIV" 2 means the Human Immunodeficiency Virus or any other 3 identified causative agent of AIDS. 4 (7) Care in an assisted living establishment. 5 (b) The grant program of financial incentives shall be 6 administered by the State Treasurer pursuant to 7 administrative rules adopted by the Treasurer. The financial 8 incentives shall be in forms determined by the Governor and 9 the Director of the Bureau of the Budget and may include, 10 among others, supplemental payments to the participants in 11 the Elder Care Savings Fund to be applied to costs of care or 12 services specified in items (1) through (6) of subsection 13 (a). The Treasurer may establish, by rule, administrative 14 procedures and eligibility criteria for the grant program; 15 those rules must be consistent with the purposes of this Act. 16 The Treasurer may require participants in the Elder Care 17 Savings Fund, providers of long term health care services, 18 and other necessary parties to assist in the determination of 19 eligibility for financial incentives under the grant program. 20 (c) All grants shall be subject to annual appropriation 21 of moneys for that purpose by the General Assembly. 22 Financial incentives shall be provided only if, in the sole 23 judgment of the Director of the Bureau of the Budget, the 24 total incentives offered in a given year will not exceed the 25 balance of the Elder Care Savings Fund on the day the 26 incentives are offered by more than 0.5%. 27 Section 30. Education program. The State Treasurer, in 28 cooperation with the Department on Aging and area agencies on 29 aging, shall develop and implement an education program and 30 marketing strategies designed to inform residents of this 31 State about the options available for financing long term 32 health care and the need to accumulate the financial 33 resources necessary to pay for that care. The Treasurer HB0077 Engrossed -8- LRB9100521PTpk 1 shall report to the General Assembly on the program developed 2 and its operation before May 1, 2000. The Treasurer shall 3 adopt rules with respect to his or her powers and duties 4 under this Act. 5 Section 35. Elder Care Trust Authority. 6 (a) There is created the Elder Care Trust Authority. 7 The Authority shall consist of 11 members, 7 of whom shall be 8 appointed as follows: the Speaker and Minority Leader of the 9 House of Representatives and the President and Minority 10 Leader of the Senate shall each appoint one member, and the 11 Governor shall appoint 3 members. The State Treasurer, the 12 Director of the Bureau of the Budget, the Director of Public 13 Health, and the Director of the Illinois Economic and Fiscal 14 Commission, or their respective designees, shall each be a 15 member ex officio. The Governor and legislative leaders 16 shall give consideration to selecting members that include 17 representatives from the following categories: (i) a 18 director, officer, or employee of an entity that provides 19 long term health care services; (ii) a person having a 20 favorable reputation for skill, knowledge, and experience in 21 the field of portfolio management; and (iii) a person 22 experienced in and having a favorable reputation for skill, 23 knowledge, and experience in the long term health care 24 savings field. 25 The State Treasurer or the Treasurer's designee shall 26 serve as the chairperson of the Authority. 27 The appointed members of the Authority first appointed 28 shall serve for terms expiring on June 30 in 1999, 2000, 29 2001, 2002, 2003, 2004, and 2005 respectively, or until their 30 respective successors have been appointed and have qualified. 31 The initial term of each of those members shall be determined 32 by lot. Upon the expiration of the term of any member, the 33 member's successor shall be appointed for a term of 6 years HB0077 Engrossed -9- LRB9100521PTpk 1 and until his or her successor has been appointed and has 2 qualified. 3 Any vacancy shall be filled in the manner of the original 4 appointment for the remainder of the unexpired term. 5 Any member of the Authority may be removed by the 6 appointing authority for misfeasance, malfeasance, or wilful 7 neglect of duty or other cause after notice and a public 8 hearing, unless that notice and hearing are expressly waived 9 by the member in writing. 10 Members shall be compensated from moneys appropriated to 11 the State Treasurer for their reasonable expenses actually 12 incurred in performing their duties. 13 Staff assistance shall be provided to the Authority by 14 the State Treasurer. 15 The Authority shall meet at least once each year. 16 (b) The Authority has the following responsibilities: 17 (1) To make recommendations to the Elder Care 18 Savings Fund staff regarding the marketing of the Elder 19 Care Savings Fund to ensure the use of the fund by 20 participants throughout the State for long term health 21 care purposes. 22 (2) To advise the Elder Care Savings Fund staff on 23 an effective advertising campaign to inform the general 24 public about Elder Care Savings Fund and its 25 availability. 26 (3) To advise the Elder Care Savings Fund staff 27 regarding the investment portfolio of the Elder Care 28 Savings Fund. 29 (4) After the creation of the Elder Care Savings 30 Fund, to assess the effectiveness of the program and 31 recommend constructive changes to the Bureau of the 32 Budget. 33 (5) To make recommendations to the General Assembly 34 regarding statutory changes that the Authority deems HB0077 Engrossed -10- LRB9100521PTpk 1 necessary or desirable. 2 Section 999. Effective date. This Act takes effect upon 3 becoming law.