Synopsis As Introduced Creates the Tax-Exempt Hospital Responsibility Act. Sets forth the terms under which a hospital must provide full charity care and discounted care to Illinois residents in order to maintain the hospital's tax-exempt status under the Illinois Income Tax Act, the Use Tax Act, the Service Use Tax Act, the Service Occupation Tax Act, the Retailers' Occupation Tax Act, and the Property Tax Code; amends each of those tax Acts to provide that a hospital may qualify for an exemption from the tax imposed by the Act only if the hospital is in compliance with the Tax-Exempt Hospital Responsibility Act. Sets forth uniform procedures for a hospital's provision of charity care. Sets forth patient rights and responsibilities in connection with hospital charity care. Requires a tax-exempt hospital to furnish aggregate annual charity care in an amount equal to at least 8% of the hospital's total operating costs. Requires hospitals to submit an annual report to the Attorney General. Makes the Attorney General responsible for implementing and enforcing the Tax-Exempt Hospital Responsibility Act. Provides that a home rule unit may not regulate hospitals in a manner inconsistent with the Tax-Exempt Hospital Responsibility Act. Creates the Tax-Exempt Hospital Responsibility Act Enforcement Fund, to be used in connection with enforcement of the Act, and amends the State Finance Act in connection therewith. Amends the Freedom of Information Act to make records of charity care applications and determinations under the Tax-Exempt Hospital Responsibility Act exempt from inspection and copying. Amends the Illinois Finance Authority Act; provides that none of the specified powers of the Illinois Finance Authority shall be exercised for the benefit of any hospital as defined in the Tax-Exempt Hospital Responsibility Act if that hospital is not in compliance with that Act. Amends the Community Benefits Act; makes changes including (i) adding references to the Tax-Exempt Hospital Responsibility Act, (ii) providing for a maximum late filing fee of $10,000 (instead of $100), and (iii) giving the Attorney General rulemaking authority. Effective immediately.
House Committee Amendment No. 1 Adds a definition of "Medicaid Inpatient Utilization Rate". Defines "safety net hospital" as a freestanding hospital, unaffiliated with a health system, that has a Medicaid Inpatient Utilization Rate of 35% or greater, and provides that each such safety net hospital is exempt from the charity care requirements set forth in certain specified provisions of the Tax-Exempt Hospital Responsibility Act. Provides that the Attorney General shall develop a process by rule for exempting for a period of one year any tax-exempt hospital from the charity care requirements if the hospital can demonstrate that compliance with those provisions will jeopardize the continued operation of the hospital; provides that there is no limit on the number of times a hospital can secure this exemption. Provides that to the extent that, at the end of any State fiscal year, monies in the Tax-Exempt Hospital Responsibility Act Enforcement Fund exceed the amount appropriated during that fiscal year to the Attorney General for enforcement of the Tax-Exempt Hospital Responsibility Act, all remaining Fund monies, minus the amount appropriated for enforcement of the Act during the subsequent State fiscal year, shall be used for a grant program, to be administered by the Attorney General, for delivery of charity care to qualified individuals. Requires the Attorney General to promulgate a rule concerning implementation of this grant program.
Judicial Note (H-AM 1) (Admin. Office of the Illinois Courts)
Would neither increase nor decrease the number of judges needed in the state.
Pension Note (H-AM 1)(Comm on Gov't Forecasting & Accountability)
HB 5000 (H-AM 1) would not impact any public pension fund or retirement system in Illinois.
Fiscal Note (Office of the Attorney General)
Will increase the operating costs of the Office of the Attorney General, but at the current time there are no estimates of the total fiscal impact. However, the legislation contains provisions to create a dedicated fund, subject to appropriation, to offset the costs of administration and enforcement of the Act.
Home Rule Note (H-AM 1)(Dept of Commerce and Economic Opportunity)
In the opinion of the Department of Commerce and Economic Opportunity, HB 5000 (H-AM 1) pre-empts home rule authority.
State Mandates Fiscal Note (H-AM 1)(Dept of Commerce and Economic Opportunity)
In the opinion of the Department of Commerce and Economic Opportunity, HB 5000 (H-AM 1) creates a local government organization and structure mandate for which reimbursement of the increased costs to units of local government is not required under the State Mandates Act.