State of Illinois
91st General Assembly
Legislation

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[ Engrossed ][ Enrolled ][ Senate Amendment 001 ]

91_HB1852

 
                                               LRB9104621LDmb

 1        AN ACT in relation to contracts between nursing homes and
 2    residents.

 3        Be it enacted by the People of  the  State  of  Illinois,
 4    represented in the General Assembly:

 5        Section  5.   The  Nursing  Home  Care  Act is amended by
 6    changing Section 2-202 as follows:

 7        (210 ILCS 45/2-202) (from Ch. 111 1/2, par. 4152-202)
 8        Sec. 2-202.   (a)  Before  a  person  is  admitted  to  a
 9    facility,  or  at  the  expiration  of the period of previous
10    contract, or when the source of payment  for  the  resident's
11    care  changes  from private to public funds or from public to
12    private funds, a written contract shall be executed between a
13    licensee and the following in order of priority:
14             (1)  the person, or if the person is  a  minor,  his
15        parent or guardian; or
16             (2)  the  person's  guardian,  if  any, or agent, if
17        any, as defined in Section 2-3 of the Illinois  Power  of
18        Attorney Act; or
19             (3)  a member of the person's immediate family.
20        An adult person shall be presumed to have the capacity to
21    contract for admission to a long term care facility unless he
22    has  been  adjudicated a "disabled person" within the meaning
23    of Section 11a-2 of the  Probate Act of  1975,  or  unless  a
24    petition  for  such  an  adjudication is pending in a circuit
25    court of Illinois.
26        If there is no guardian, agent or member of the  person's
27    immediate  family  available,  able or willing to execute the
28    contract required by this Section and a physician  determines
29    that  a  person  is so disabled as to be unable to consent to
30    placement in a facility, or if  a  person  has  already  been
31    found  to  be  a  "disabled  person",  but  no order has been
 
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 1    entered allowing residential placement of  the  person,  that
 2    person  may be admitted to a facility before the execution of
 3    a contract required by this Section; provided that a petition
 4    for guardianship or for modification of guardianship is filed
 5    within 15 days of the person's admission to a  facility,  and
 6    provided  further  that such a contract is executed within 10
 7    days of the disposition of the petition.
 8        No adult shall be admitted to a facility if  he  objects,
 9    orally  or in writing, to such admission, except as otherwise
10    provided in Chapters III and IV  of  the  Mental  Health  and
11    Developmental  Disabilities  Code  or Section 11a-14.1 of the
12    Probate Act of 1975.
13        If a person has not executed a contract  as  required  by
14    this  Section,  then  such a contract shall be executed on or
15    before July 1, 1981, or within 10 days after the  disposition
16    of   a   petition   for   guardianship   or  modification  of
17    guardianship that was filed prior to July 1, 1981,  whichever
18    is later.
19        Before  a  licensee enters a contract under this Section,
20    it shall provide the prospective resident and  his  guardian,
21    if   any,  with  written  notice  of  the  licensee's  policy
22    regarding discharge of a resident  whose  private  funds  for
23    payment of care are exhausted.
24        (b)  A resident shall not be discharged or transferred at
25    the  expiration of the term of a contract, except as provided
26    in Sections 3-401 through 3-423.
27        (c)  At the time  of  the  resident's  admission  to  the
28    facility,  a  copy  of  the  contract  shall  be given to the
29    resident, his guardian, if any,  and  any  other  person  who
30    executed the contract.
31        (d)  A  copy  of  the  contract  for  a  resident  who is
32    supported by nonpublic funds other than  the  resident's  own
33    funds  shall  be  made  available to the person providing the
34    funds for the resident's support.
 
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 1        (e)  The original or a copy  of  the  contract  shall  be
 2    maintained in the facility and be made available upon request
 3    to  representatives  of  the Department and the Department of
 4    Public Aid.
 5        (f)  The  contract  shall  be  written   in   clear   and
 6    unambiguous  language  and  shall be printed in not less than
 7    12-point type.  The general form of  the  contract  shall  be
 8    prescribed by the Department.
 9        (g)  The contract shall specify:
10             (1)  the term of the contract;
11             (2)  the  services to be provided under the contract
12        and the charges for the services;
13             (3)  the services that may be provided to supplement
14        the contract and the charges for the services;
15             (4)  the sources liable for payments due  under  the
16        contract;
17             (5)  the amount of deposit paid; and
18             (6)  the  rights,  duties  and  obligations  of  the
19        resident,  except  that the specification of a resident's
20        rights may be furnished  on  a  separate  document  which
21        complies with the requirements of Section 2-211.
22        (h)  The   contract  shall  designate  the  name  of  the
23    resident's  representative,  if  any.   The  resident   shall
24    provide  the  facility  with  a copy of the written agreement
25    between the resident and the resident's representative  which
26    authorizes  the resident's representative to inspect and copy
27    the  resident's  records  and   authorizes   the   resident's
28    representative  to  execute  the  contract  on  behalf of the
29    resident required by this Section.
30        (i)  The contract shall provide that if the  resident  is
31    compelled  by  a change in physical or mental health to leave
32    the facility, the contract and all obligations under it shall
33    terminate on 7 days notice.  No prior notice  of  termination
34    of  the contract shall be required, however, in the case of a
 
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 1    resident's death.  The contract shall also  provide  that  in
 2    all  other  situations, a resident may terminate the contract
 3    and all obligations under it with 30 days notice. All charges
 4    shall be prorated as  of  the  date  on  which  the  contract
 5    terminates,  and,  if any payments have been made in advance,
 6    the excess shall be refunded to the resident. This  provision
 7    shall  not  apply  to  life-care  contracts  through  which a
 8    facility  agrees  to  provide  maintenance  and  care  for  a
 9    resident  throughout  the  remainder  of  his  life  nor   to
10    continuing-care  contracts through which a facility agrees to
11    supplement  all  available  forms  of  financial  support  in
12    providing maintenance and care for a resident throughout  the
13    remainder of his life.
14        (j)  In  addition  to  all  other contract specifications
15    contained in this  Section  admission  contracts  shall  also
16    specify:
17             (1)  whether the facility accepts Medicaid clients;
18             (2)  whether  the facility requires a deposit of the
19        resident or his family  prior  to  the  establishment  of
20        Medicaid eligibility;
21             (3)  in  the  event  that  a  deposit is required, a
22        clear and  concise  statement  of  the  procedure  to  be
23        followed  for  the return of such deposit to the resident
24        or the appropriate  family  member  or  guardian  of  the
25        person;
26             (4)  that  all  deposits  made  to  a  facility by a
27        resident, or on behalf of a resident, shall  be  returned
28        by  the  facility  within 30 days of the establishment of
29        Medicaid eligibility, unless such deposits must be  drawn
30        upon   or   encumbered   in   accordance   with  Medicaid
31        eligibility  requirements  established  by  the  Illinois
32        Department of Public Aid.
33        (k)  It shall be a business offense  for  a  facility  to
34    knowingly  and intentionally both retain a resident's deposit
 
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 1    and accept Medicaid payments  on  behalf  of  that  resident.
 2           (l)  Any  contract  between  a facility and a resident
 3    shall be enforceable against any party if:
 4             (1)  The contract was signed by the resident;
 5             (2)  The contract calls for  the  resident  to  turn
 6        over  substantially  all of his or her assets, other than
 7        heirlooms, family  property  of  sentimental  value,  and
 8        similar items, to the facility in return for an agreement
 9        by   the  facility  to  provide  long-term  care  to  the
10        resident;
11             (3)  The resident is deceased;
12             (4)  Unclaimed property in the name of the  resident
13        exists  and  is  in  the  custody  of  the  Department of
14        Financial Institutions; and
15             (5)  The total value of the  unclaimed  property  is
16        less than $1,000.
17    (Source: P.A. 87-225; 87-895; 88-154.)

18        Section   10.    The  Uniform  Disposition  of  Unclaimed
19    Property Act is amended by changing Section 10.5 as follows:

20        (765 ILCS 1025/10.5)
21        Sec. 10.5.  Nonapplicability of Act.
22        (a)  Unless the personal property  was  identified  in  a
23    final examination report by the Director issued pursuant to a
24    duly  authorized examination and the final examination report
25    was received by the holder on or before May 1, 1993, this Act
26    does  not  apply  to  (i)  travelers  checks  reportable   as
27    unclaimed  property  before  July 1, 1973, (ii) funds held by
28    any federal,  state,  or  local  government  or  governmental
29    subdivision,  agency,  entity,  officer, or appointee thereof
30    reportable as unclaimed property before July 1,  1981,  (iii)
31    any  property  in  the  custody  of  the estate of a deceased
32    person that is subject to a contract under subsection (l)  of
 
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 1    Section 2-202 of the Nursing Home Care Act, or (iv) (iii) any
 2    other  personal  property  reportable  as  unclaimed property
 3    before July 1, 1985, based upon the  presumptive  abandonment
 4    period in effect on that date.
 5        (b)  For  reports required to be filed after December 31,
 6    1993, this Act does not  apply  to  any  reportable  personal
 7    property  held  prior  to the period required for presumptive
 8    abandonment of the property  plus  the  9  years  immediately
 9    preceding the beginning of that period.
10        (c)  Subsections  (a)  and  (b)  do not apply to property
11    held by a trust division or trust department or  by  a  trust
12    company,  or  affiliate of any of the foregoing that provides
13    nondealer corporate  custodial  services  for  securities  or
14    securities  transactions, organized under the laws of this or
15    another state or the United States.
16        As of January 1,  1998,  this  subsection  shall  not  be
17    applicable  unless  the  Department  has  commenced,  but not
18    finalized, an examination of the holder as of that  date  and
19    the  property  is  included in a final examination report for
20    the period covered by the examination.
21        (d)  Subsections (a) and (b) do  not  apply  to  property
22    held  by  a  holder who files a fraudulent report or fails to
23    file a report.
24        (e)  Subsections (a) and (b) do not apply if, as a result
25    of their application, another state would have a legal  right
26    to  delivery  of  the  property  and  such  other  state  has
27    commenced proceedings with respect to the property.
28    (Source: P.A. 90-167, eff. 7-23-97.)

29        Section  99.  Effective date.  This Act takes effect upon
30    becoming law.

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