97TH GENERAL ASSEMBLY
State of Illinois
2011 and 2012
HB6243

 

Introduced , by Rep. André M. Thapedi

 

SYNOPSIS AS INTRODUCED:
 
210 ILCS 45/3-103  from Ch. 111 1/2, par. 4153-103
210 ILCS 45/3-103.5 new
210 ILCS 45/3-216 new

    Amends the Nursing Home Care Act. Provides that an owner or operator of a facility shall purchase and maintain not less than $500,000 in liability insurance for each facility. Provides that no person may establish, own, or operate a facility in the State unless and until the person provides proof of liability insurance coverage to the Department of Public Health. Provides that the Department shall issue a license if the applicant and the facilities meet specified requirements. Provides that each application for a license for a facility shall be accompanied by a license fee of $20 for each bed in the facility, with a minimum fee per facility of $200 (instead of an annual fee of $1,990). Provides that an application for a license to operate a facility also shall include affirmative evidence of the ability to comply with the liability insurance requirement. Effective immediately.


LRB097 23276 RPM 72179 b

FISCAL NOTE ACT MAY APPLY

 

 

A BILL FOR

 

HB6243LRB097 23276 RPM 72179 b

1    AN ACT concerning regulation.
 
2    Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
 
4    Section 5. The Nursing Home Care Act is amended by changing
5Section 3-103 and by adding Sections 3-103.5 and 3-216 as
6follows:
 
7    (210 ILCS 45/3-103)  (from Ch. 111 1/2, par. 4153-103)
8    Sec. 3-103. The procedure for obtaining a valid license
9shall be as follows:
10        (1) Application to operate a facility shall be made to
11    the Department on forms furnished by the Department and
12    shall contain such information as the Department
13    reasonably requires, which may include affirmative
14    evidence of the ability to comply with such reasonable
15    standards and rules as are lawfully prescribed under this
16    Article.
17        (2) All license applications shall be accompanied with
18    an application fee. Each application for a license for a
19    facility shall be accompanied by a license fee of $20 for
20    each bed in the facility, with a minimum fee per facility
21    of $200, which shall be paid to the Department. No
22    governmental entity or agency shall be required to pay the
23    fee or fees set forth in this subsection. The fee for an

 

 

HB6243- 2 -LRB097 23276 RPM 72179 b

1    annual license shall be $1,990. Facilities that pay a fee
2    or assessment pursuant to Article V-C of the Illinois
3    Public Aid Code shall be exempt from the license fee
4    imposed under this item (2). The fee for a 2-year license
5    shall be double the fee for the annual license. The fees
6    collected shall be deposited with the State Treasurer into
7    the Long Term Care Monitor/Receiver Fund, which has been
8    created as a special fund in the State treasury. This
9    special fund is to be used by the Department for expenses
10    related to the appointment of monitors and receivers as
11    contained in Sections 3-501 through 3-517 of this Act, for
12    the enforcement of this Act, for expenses related to
13    surveyor development, and for implementation of the Abuse
14    Prevention Review Team Act. All federal moneys received as
15    a result of expenditures from the Fund shall be deposited
16    into the Fund. The Department may reduce or waive a penalty
17    pursuant to Section 3-308 only if that action will not
18    threaten the ability of the Department to meet the expenses
19    required to be met by the Long Term Care Monitor/Receiver
20    Fund. The application shall be under oath and the
21    submission of false or misleading information shall be a
22    Class A misdemeanor. The application shall contain the
23    following information:
24            (a) The name and address of the applicant if an
25        individual, and if a firm, partnership, or
26        association, of every member thereof, and in the case

 

 

HB6243- 3 -LRB097 23276 RPM 72179 b

1        of a corporation, the name and address thereof and of
2        its officers and its registered agent, and in the case
3        of a unit of local government, the name and address of
4        its chief executive officer;
5            (b) The name and location of the facility for which
6        a license is sought;
7            (c) The name of the person or persons under whose
8        management or supervision the facility will be
9        conducted;
10            (d) The number and type of residents for which
11        maintenance, personal care, or nursing is to be
12        provided; and
13            (e) Such information relating to the number,
14        experience, and training of the employees of the
15        facility, any management agreements for the operation
16        of the facility, and of the moral character of the
17        applicant and employees as the Department may deem
18        necessary.
19        (3) Each initial application shall be accompanied by a
20    financial statement setting forth the financial condition
21    of the applicant and by a statement from the unit of local
22    government having zoning jurisdiction over the facility's
23    location stating that the location of the facility is not
24    in violation of a zoning ordinance. An initial application
25    for a new facility shall be accompanied by a permit as
26    required by the "Illinois Health Facilities Planning Act".

 

 

HB6243- 4 -LRB097 23276 RPM 72179 b

1    After the application is approved, the applicant shall
2    advise the Department every 6 months of any changes in the
3    information originally provided in the application.
4        (4) Other information necessary to determine the
5    identity and qualifications of an applicant to operate a
6    facility in accordance with this Act shall be included in
7    the application as required by the Department in
8    regulations.
9        (5) An application for a license to operate a facility
10    also shall include affirmative evidence of the ability to
11    comply with the requirement of Section 3-216 of this Act.
12(Source: P.A. 96-758, eff. 8-25-09; 96-1372, eff. 7-29-10;
1396-1504, eff. 1-27-11; 96-1530, eff. 2-16-11; 97-489, eff.
141-1-12.)
 
15    (210 ILCS 45/3-103.5 new)
16    Sec. 3-103.5. License and license renewal requirements.
17    (a) Upon receipt of an application for license and the
18license fee, the Department shall issue a license if the
19applicant and the facilities meet the requirements established
20under this Article and where determined by the Department to be
21applicable. A license, unless suspended or revoked, shall be
22renewable annually upon payment by the licensee of a facility
23of a renewal fee of $20 for each bed in the facility, with a
24minimum fee per facility of $200, which shall be paid to the
25Department, and upon filing by the licensee and approval by the

 

 

HB6243- 5 -LRB097 23276 RPM 72179 b

1Department of an annual report upon such uniform dates and
2containing such information in such form as the Department
3prescribes by rule. For the renewal of a license to operate a
4facility, the annual report must show compliance with the
5requirement of Section 3-216 of this Act. No applicant shall
6receive a license nor shall any licensee's license be renewed
7unless the applicant or licensee shows compliance with the
8requirements established under Section 3-216 of this Act. Each
9license shall be issued only for the premises and person or
10persons or other legal entity or entities named in the
11application and shall not be transferrable or assignable except
12with the written approval of the Department. Licenses shall be
13posted in a conspicuous place on the licenses premises.
14    (b) A user fee shall be applicable and shall be paid to the
15Department as set out in subsection (a). This user fee shall be
16assessed for the purpose of the required reviewing and
17inspections of the proposal of any facility in which there are
18additions, renovations, modernizations, expansion,
19alterations, conversions, modifications, or replacement of the
20entire facility involved in such proposal. The user fee
21includes the reviewing of architectural plans in all steps
22required. There shall be a minimum user fee of $50 and a
23maximum user fee of $5,000.
24    (c) No governmental entity or agency shall be required to
25pay the fee or fees set forth in this Section.
 

 

 

HB6243- 6 -LRB097 23276 RPM 72179 b

1    (210 ILCS 45/3-216 new)
2    Sec. 3-216. Liability insurance requirement.
3    (a) An owner or operator of a facility shall purchase and
4maintain not less than $500,000 in liability insurance for each
5facility. The liability insurance shall cover each resident per
6occurrence of negligence.
7    (b) The liability coverage amount described in this Section
8shall include coverage for indemnity of the insured only. The
9cost of defending the insured shall not be covered.
10    (c) No person may establish, own, or operate a facility in
11the State unless and until the person provides proof of
12liability insurance coverage as described under this Section to
13the Department.
14    (d) The Department shall suspend or revoke the license or
15certificate of any facility whose owner or operator violates
16the provisions of this Section.
 
17    Section 99. Effective date. This Act takes effect upon
18becoming law.