Illinois General Assembly - Full Text of HB2375
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Full Text of HB2375  103rd General Assembly




State of Illinois
2023 and 2024


Introduced 2/14/2023, by Rep. Jennifer Gong-Gershowitz


210 ILCS 40/2  from Ch. 111 1/2, par. 4160-2
210 ILCS 40/13 new

    Amends the Life Care Facilities Act. Defines "governing body", "proposed action", and "residents' association". Provides that a resident of a life care facility has the right to organize and participate in a residents' association. Prohibits reprisal by a provider for various actions taken by a residents' association. Requires a provider's governing body to hold annual meetings on and after July 1, 2023 at each of the provider's facilities located in the State for open discussion of specified subjects. Directs providers to make statements of financial activities for the facility and a written explanation of all material variances of actual costs with budget costs calculated in the statements of financial activities on and after January 1, 2024. Requires the Department of Public Health to ensure that providers comply with the provisions. Contains requirements for notice of noncompliance. Requires providers to cure noncompliance within 30 days after being notified by the Department. Contains other provisions. Effective immediately.

LRB103 25507 CPF 51856 b





HB2375LRB103 25507 CPF 51856 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 Life Care Facilities Act is amended by
5changing Section 2 and by adding Section 13 as follows:
6    (210 ILCS 40/2)  (from Ch. 111 1/2, par. 4160-2)
7    Sec. 2. As used in this Act, unless the context otherwise
9    (a) "Department" means the Department of Public Health.
10    (b) "Director" means the Director of the Department.
11    (c) "Life care contract" means a contract to provide to a
12person for the duration of such person's life or for a term in
13excess of one year, nursing services, medical services or
14personal care services, in addition to maintenance services
15for such person in a facility, conditioned upon the transfer
16of an entrance fee to the provider of such services in addition
17to or in lieu of the payment of regular periodic charges for
18the care and services involved.
19    (d) "Provider" means a person who provides services
20pursuant to a life care contract.
21    (e) "Resident" means a person who enters into a life care
22contract with a provider, or who is designated in a life care
23contract to be a person provided with maintenance and nursing,



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1medical or personal care services.
2    (f) "Facility" means a place or places in which a provider
3undertakes to provide a resident with nursing services,
4medical services or personal care services, in addition to
5maintenance services for a term in excess of one year or for
6life pursuant to a life care contract. The term also means a
7place or places in which a provider undertakes to provide such
8services to a non-resident.
9    (g) "Living unit" means an apartment, room or other area
10within a facility set aside for the exclusive use of one or
11more identified residents.
12    (h) "Entrance fee" means an initial or deferred transfer
13to a provider of a sum of money or property, made or promised
14to be made by a person entering into a life care contract,
15which assures a resident of services pursuant to a life care
17    (i) "Permit" means a written authorization to enter into
18life care contracts issued by the Department to a provider.
19    (j) "Medical services" means those services pertaining to
20medical or dental care that are performed in behalf of
21patients at the direction of a physician licensed under the
22Medical Practice Act of 1987 or a dentist licensed under the
23Illinois Dental Practice Act by such physicians or dentists,
24or by a registered or licensed practical nurse as defined in
25the Nurse Practice Act or by other professional and technical



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1    (k) "Nursing services" means those services pertaining to
2the curative, restorative and preventive aspects of nursing
3care that are performed at the direction of a physician
4licensed under the Medical Practice Act of 1987 by or under the
5supervision of a registered or licensed practical nurse as
6defined in the Nurse Practice Act.
7    (l) "Personal care services" means assistance with meals,
8dressing, movement, bathing or other personal needs or
9maintenance, or general supervision and oversight of the
10physical and mental well-being of an individual, who is
11incapable of maintaining a private, independent residence or
12who is incapable of managing his person whether or not a
13guardian has been appointed for such individual.
14    (m) "Maintenance services" means food, shelter and laundry
16    (n) "Certificates of Need" means those permits issued
17pursuant to the Illinois Health Facilities Planning Act as now
18or hereafter amended.
19    (o) "Non-resident" means a person admitted to a facility
20who has not entered into a life care contract.
21    (p) "Governing body" means the board of directors or other
22body having the power to direct the management and policies of
23a facility operated by a provider that is a corporation,
24partnership, trust, or limited liability company.
25    (q) "Proposed action" means a decision for which a vote is
26taken by a governing body and that is related to budget



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1approvals or amendments, changes to fees paid by residents,
2and contracts for services provided to existing residents.
3    (r) "Residents' association" means a group, committee,
4council, or other body of residents formed as a nonprofit
5corporation, cooperative corporation, or other entity or
6organization that represents the interests of at least a
7majority of the facility's residents.
8(Source: P.A. 95-639, eff. 10-5-07.)
9    (210 ILCS 40/13 new)
10    Sec. 13. Residents' associations.
11    (a) A resident has the right to organize and participate
12in a residents' association. Reprisal by a provider is not
13permitted in response to a residents' association's
14activities, including, but not limited to, efforts to form a
15residents' association, to participate in a residents'
16association, or to submit a complaint to the Department
17regarding a provider's violation of this Section or any other
18State or federal law.
19    (b) On and after July 1, 2023, a representative of a
20provider's governing body must hold an annual meeting at each
21of the provider's facilities located in the State for open
22discussion of subjects, including, but not limited to, the
23facility's income, expenditures, and financial trends; issues
24affecting the continuing care offered by the retirement
25community; and proposed changes in retirement community



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1policies, programs, and services. Annual meetings required
2under this subsection shall be held with the facility's
3residents' association, if one exists, or the residents of the
4facility. Notice of a meeting under this subsection shall be
5provided to residents of the respective facility no later than
630 days before the meeting. Any meeting required under this
7subsection may be held by electronic means, such as by
8teleconference, video conference, distribution of a video made
9available to residents, or an Internet-based meeting platform
10allowing for resident questions, the ability to interact with
11the meeting's presenter, or both. If a provider does not have a
12governing body, the requirements of this subsection shall be
13fulfilled by the provider's officer, trustee, owner, or agent.
14Nothing in this Section precludes a provider from taking
15action or making a decision at any time without regard to the
16meetings required under this Section.
17    (c) On and after January 1, 2024, within 60 days after
18being requested by a residents' association or a committee of
19the residents' association, a provider shall make available to
20the residents' association of each facility operated by the
21provider within the State:
22        (1) no more frequently than quarterly, a statement of
23    financial activities for the facility, which shall
24    include, but shall not be limited to, a comparison of
25    actual costs to budgeted costs, broken down by expense
26    category and calculated at an annual meeting held under



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1    subsection (b); and
2        (2) a written explanation of all material variances of
3    actual costs with budget costs calculated under paragraph
4    (1).
5    A provider shall designate and make available personnel at
6each of its facilities located in the State to fulfill the
7requirements of this subsection.
8    (d) The Department shall ensure that providers comply with
9this Section. If a provider does not comply with this Section,
10the Department shall provide written notice to the provider of
11the noncompliance and the provider shall cure the
12noncompliance within 30 days after receiving the notice from
13the Department.
14    Section 99. Effective date. This Act takes effect upon
15becoming law.