Illinois General Assembly - Full Text of SB1197
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Full Text of SB1197  98th General Assembly




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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 2-201 as follows:
6    (210 ILCS 45/2-201)  (from Ch. 111 1/2, par. 4152-201)
7    Sec. 2-201. To protect the residents' funds, the facility:
8    (1) Shall at the time of admission provide, in order of
9priority, each resident, or the resident's guardian, if any, or
10the resident's representative, if any, or the resident's
11immediate family member, if any, with a written statement
12explaining to the resident and to the resident's spouse (a)
13their spousal impoverishment rights, as defined at Section 5-4
14of the Illinois Public Aid Code, and at Section 303 of Title
15III of the Medicare Catastrophic Coverage Act of 1988 (P.L.
16100-360), and (b) their obligation to comply with the asset and
17income disclosure requirements of Title XIX of the federal
18Social Security Act and the regulations duly promulgated
19thereunder, except that this item (b) does not apply to
20facilities operated by the Illinois Department of Veterans'
21Affairs that do not participate in Medicaid, and (c) the
22resident's rights regarding personal funds and listing the
23services for which the resident will be charged. The facility



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1shall obtain a signed acknowledgment from each resident or the
2resident's guardian, if any, or the resident's representative,
3if any, or the resident's immediate family member, if any, that
4such person has received the statement and understands that
5failure to comply with asset and income disclosure requirements
6may result in the denial of Medicaid eligibility.
7    (2) May accept funds from a resident for safekeeping and
8managing, if it receives written authorization from, in order
9of priority, the resident or the resident's guardian, if any,
10or the resident's representative, if any, or the resident's
11immediate family member, if any; such authorization shall be
12attested to by a witness who has no pecuniary interest in the
13facility or its operations, and who is not connected in any way
14to facility personnel or the administrator in any manner
16    (3) Shall maintain and allow, in order of priority, each
17resident or the resident's guardian, if any, or the resident's
18representative, if any, or the resident's immediate family
19member, if any, access to a written record of all financial
20arrangements and transactions involving the individual
21resident's funds.
22    (4) Shall provide, in order of priority, each resident, or
23the resident's guardian, if any, or the resident's
24representative, if any, or the resident's immediate family
25member, if any, with a written itemized statement at least
26quarterly, of all financial transactions involving the



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1resident's funds.
2    (5) Shall purchase a surety bond, or otherwise provide
3assurance satisfactory to the Departments of Public Health and
4Insurance that all residents' personal funds deposited with the
5facility are secure against loss, theft, and insolvency.
6    (6) Shall keep any funds received from a resident for
7safekeeping in an account separate from the facility's funds,
8and shall at no time withdraw any part or all of such funds for
9any purpose other than to return the funds to the resident upon
10the request of the resident or any other person entitled to
11make such request, to pay the resident his allowance, or to
12make any other payment authorized by the resident or any other
13person entitled to make such authorization.
14    (7) Shall deposit any funds received from a resident in
15excess of $100 in an interest bearing account insured by
16agencies of, or corporations chartered by, the State or federal
17government. The account shall be in a form which clearly
18indicates that the facility has only a fiduciary interest in
19the funds and any interest from the account shall accrue to the
20resident. The facility may keep up to $100 of a resident's
21money in a non-interest bearing account or petty cash fund, to
22be readily available for the resident's current expenditures.
23    (8) Shall return to the resident, or the person who
24executed the written authorization required in subsection (2)
25of this Section, upon written request, all or any part of the
26resident's funds given the facility for safekeeping, including



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1the interest accrued from deposits.
2    (9) Shall (a) place any monthly allowance to which a
3resident is entitled in that resident's personal account, or
4give it to the resident, unless the facility has written
5authorization from the resident or the resident's guardian or
6if the resident is a minor, his parent, to handle it
7differently, (b) take all steps necessary to ensure that a
8personal needs allowance that is placed in a resident's
9personal account is used exclusively by the resident or for the
10benefit of the resident, and (c) where such funds are withdrawn
11from the resident's personal account by any person other than
12the resident, require such person to whom funds constituting
13any part of a resident's personal needs allowance are released,
14to execute an affidavit that such funds shall be used
15exclusively for the benefit of the resident.
16    (10) Unless otherwise provided by State law, upon the death
17of a resident, shall provide the executor or administrator of
18the resident's estate with a complete accounting of all the
19resident's personal property, including any funds of the
20resident being held by the facility.
21    (11) If an adult resident is incapable of managing his
22funds and does not have a resident's representative, guardian,
23or an immediate family member, shall notify the Office of the
24State Guardian of the Guardianship and Advocacy Commission.
25    (12) If the facility is sold, shall provide the buyer with
26a written verification by a public accountant of all residents'



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1monies and properties being transferred, and obtain a signed
2receipt from the new owner.
3(Source: P.A. 86-410; 86-486; 86-1028; 87-551; 87-1122.)
4    Section 99. Effective date. This Act takes effect upon
5becoming law.