Illinois General Assembly - Full Text of HB5049
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Full Text of HB5049  102nd General Assembly

HB5049 102ND GENERAL ASSEMBLY

  
  

 


 
102ND GENERAL ASSEMBLY
State of Illinois
2021 and 2022
HB5049

 

Introduced 1/27/2022, by Rep. Fred Crespo

 

SYNOPSIS AS INTRODUCED:
 
15 ILCS 205/6.7 new
20 ILCS 105/4.04a
305 ILCS 5/8A-7  from Ch. 23, par. 8A-7

    Amends the Attorney General Act. Transfers provisions concerning the Medicaid Fraud Control Unit from the Illinois State Police to the Office of the Attorney General. Provides for the transfer of employees, records, unexpended funds, and other matters. Amends the Illinois Act on Aging and the Illinois Public Aid Code to make conforming changes.


LRB102 22605 KTG 31748 b

 

 

A BILL FOR

 

HB5049LRB102 22605 KTG 31748 b

1    AN ACT concerning State government.
 
2    Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
 
4    Section 5. The Attorney General Act is amended by adding
5Section 6.7 as follows:
 
6    (15 ILCS 205/6.7 new)
7    Sec. 6.7. Medicaid Fraud Control Unit.
8    (a) Transfer of functions and powers. On the effective
9date of this amendatory Act of the 102nd General Assembly, all
10functions performed by the Medicaid Fraud Control Unit within
11the Illinois State Police, together with all of the powers,
12duties, rights, and responsibilities of the Medicaid Fraud
13Control Unit relating to those functions, are transferred from
14the Illinois State Police to the Office of the Attorney
15General.
16    The Illinois State Police and the Office of the Attorney
17General shall cooperate to ensure that the transfer of
18functions is completed as soon as practical.
19    (b) Effect of transfer. Neither the functions of the
20Medicaid Fraud Control Unit, nor the powers, duties, rights,
21and responsibilities relating to those functions, that are
22transferred from the Illinois State Police to the Office of
23the Attorney General under this Section are affected by this

 

 

HB5049- 2 -LRB102 22605 KTG 31748 b

1amendatory Act of the 102nd General Assembly, except that all
2such functions, powers, duties, rights, and responsibilities
3shall be performed or exercised within the Office of the
4Attorney General on and after the effective date of this
5amendatory Act of the 102nd General Assembly.
6    (c) Personnel transferred. The status and rights of the
7employees in the Illinois State Police engaged in the
8performance of functions relating to the Medicaid Fraud
9Control Unit shall not be affected by the transfer of those
10functions from the Illinois State Police to the Office of the
11Attorney General under this Section. The rights of those
12employees as derived from the State of Illinois and its
13agencies under the Personnel Code, the applicable collective
14bargaining agreements, or any pension, retirement, or annuity
15plan shall not be affected by this Section. Personnel employed
16by the Illinois State Police who are affected by this Section
17shall continue their service within the Office of the Attorney
18General notwithstanding any qualification requirements under
19Section 4c.
20    (d) Books and records transferred. All books, records,
21papers, documents, contracts, and pending business pertaining
22to the Medicaid Fraud Control Unit within the Illinois State
23Police, including, but not limited to, material in electronic
24or magnetic format, shall be transferred to the Office of the
25Attorney General. The transfer of that information shall not,
26however, violate any applicable confidentiality constraints.

 

 

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1    (e) Unexpended moneys transferred. All unexpended
2appropriation balances and other funds otherwise available to
3the Illinois State Police for use in connection with the
4Medicaid Fraud Control Unit shall be transferred and made
5available to the Office of the Attorney General for use in
6connection with the Medicaid Fraud Control Unit.
7    (f) Exercise of transferred powers; savings provisions.
8The powers, duties, rights, and responsibilities relating to
9the Medicaid Fraud Control Unit transferred from the Illinois
10State Police to the Office of the Attorney General under this
11Section are vested in and shall be exercised by the Office of
12the Attorney General. Each act done in exercise of those
13powers, duties, rights, and responsibilities shall have the
14same legal effect as if done by the Illinois State Police or
15its divisions, officers, or employees.
16    (g) Officers and others; duties; penalties. Every
17employee, agent, or officer of the Office of the Attorney
18General is subject to the same obligations and duties, and has
19the same rights, as are prescribed by law in connection with
20the exercise of any power, duty, right, or responsibility
21transferred under this Section.
22    Every employee, agent, or officer of the Office of the
23Attorney General is subject to the same penalty or penalties,
24civil or criminal, as are prescribed by law for the same
25offense by any employee, agent, or officer whose powers,
26duties, rights, or responsibilities are transferred under this

 

 

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1Section.
2    (h) Reports, notices, or papers. Whenever reports or
3notices are required to be made or given or papers or documents
4furnished or served by any person to or upon the Illinois State
5Police in connection with any of the functions relating to the
6Medicaid Fraud Control Unit, the same shall be made, given,
7furnished, or served in the same manner to or upon the Office
8of the Attorney General.
9    (i) Acts and actions unaffected by transfer. This Section
10does not affect any act completed, ratified, or canceled, or
11any right occurring or established, before the effective date
12of this amendatory Act of the 102nd General Assembly in
13connection with any function transferred under this Section.
14This Section does not affect any action or proceeding had or
15commenced before the effective date of this amendatory Act of
16the 102nd General Assembly in an administrative, civil, or
17criminal cause regarding any function transferred under this
18Section, but any such action or proceeding may be continued by
19the Office of the Attorney General.
20    (j) For the purposes of the Successor Agency Act, the
21Office of the Attorney General is declared to be the successor
22agency of the Illinois State Police, but only with respect to
23the functions that are transferred to the Office of the
24Attorney General under this Section.
 
25    Section 10. The Illinois Act on the Aging is amended by

 

 

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1changing Section 4.04a as follows:
 
2    (20 ILCS 105/4.04a)
3    Sec. 4.04a. Illinois Long-Term Care Council.
4    (a) Purpose. The purpose of this Section is to ensure that
5consumers over the age of 60 residing in facilities licensed
6or regulated under the Nursing Home Care Act, Skilled Nursing
7and Intermediate Care Facilities Code, Sheltered Care
8Facilities Code, and the Illinois Veterans' Homes Code receive
9high quality long-term care through an effective Illinois
10Long-Term Care Council.
11    (b) Maintenance and operation of the Illinois Long-Term
12Care Council.
13        (1) The Department shall develop a fair and impartial
14    process for recruiting and receiving nominations for
15    members for the Illinois Long-Term Care Council from the
16    State Long-Term Care Ombudsman, the area agencies on
17    aging, regional ombudsman programs, provider agencies, and
18    other public agencies, using a nomination form provided by
19    the Department.
20        (2) The Department shall appoint members to the
21    Illinois Long-Term Care Council in a timely manner.
22        (3) The Department shall consider and act in good
23    faith regarding the Illinois Long-Term Care Council's
24    annual report and its recommendations.
25        (4) The Director shall appoint to the Illinois

 

 

HB5049- 6 -LRB102 22605 KTG 31748 b

1    Long-Term Care Council at least 18 but not more than 25
2    members.
3    (c) Responsibilities of the State Long-Term Care
4Ombudsman, area agencies on aging, regional long-term care
5ombudsman programs, and provider agencies. The State Long-Term
6Care Ombudsman and each area agency on aging, regional
7long-term care ombudsman program, and provider agency shall
8solicit names and recommend members to the Department for
9appointment to the Illinois Long-Term Care Council.
10    (d) Powers and duties. The Illinois Long-Term Care Council
11shall do the following:
12        (1) Make recommendations and comment on issues
13    pertaining to long-term care and the State Long-Term Care
14    Ombudsman Program to the Department.
15        (2) Advise the Department on matters pertaining to the
16    quality of life and quality of care in the continuum of
17    long-term care.
18        (3) Evaluate, comment on reports regarding, and make
19    recommendations on, the quality of life and quality of
20    care in long-term care facilities and on the duties and
21    responsibilities of the State Long-Term Care Ombudsman
22    Program.
23        (4) Prepare and circulate an annual report to the
24    Governor, the General Assembly, and other interested
25    parties concerning the duties and accomplishments of the
26    Illinois Long-Term Care Council and all other related

 

 

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1    matters pertaining to long-term care and the protection of
2    residents' rights.
3        (5) Provide an opportunity for public input at each
4    scheduled meeting.
5        (6) Make recommendations to the Director, upon his or
6    her request, as to individuals who are capable of serving
7    as the State Long-Term Care Ombudsman and who should make
8    appropriate application for that position should it become
9    vacant.
10    (e) Composition and operation. The Illinois Long-Term Care
11Council shall be composed of at least 18 but not more than 25
12members concerned about the quality of life in long-term care
13facilities and protecting the rights of residents, including
14members from long-term care facilities. The State Long-Term
15Care Ombudsman shall be a permanent member of the Long-Term
16Care Council. Members shall be appointed for a 4-year term
17with initial appointments staggered with 2-year, 3-year, and
184-year terms. A lottery will determine the terms of office for
19the members of the first term. Members may be reappointed to a
20term but no member may be reappointed to more than 2
21consecutive terms. The Illinois Long-Term Care Council shall
22meet a minimum of 3 times per calendar year.
23    (f) Member requirements. All members shall be individuals
24who have demonstrated concern about the quality of life in
25long-term care facilities. A minimum of 3 members must be
26current or former residents of long-term care facilities or

 

 

HB5049- 8 -LRB102 22605 KTG 31748 b

1the family member of a current or former resident of a
2long-term care facility. A minimum of 2 members shall
3represent current or former long-term care facility resident
4councils or family councils. A minimum of 4 members shall be
5selected from recommendations by organizations whose members
6consist of long-term care facilities. A representative of
7long-term care facility employees must also be included as a
8member. A minimum of 2 members shall be selected from
9recommendations of membership-based senior advocacy groups or
10consumer organizations that engage solely in legal
11representation on behalf of residents and immediate families.
12There shall be non-voting State agency members on the
13Long-Term Care Council from the following agencies: (i) the
14Department of Veterans' Affairs; (ii) the Department of Human
15Services; (iii) the Department of Public Health; (iv) the
16Department on Aging; (v) the Department of Healthcare and
17Family Services; (vi) the Office of the Attorney General
18Illinois State Police Medicaid Fraud Control Unit; and (vii)
19others as appropriate.
20(Source: P.A. 95-331, eff. 8-21-07.)
 
21    Section 15. The Illinois Public Aid Code is amended by
22changing Section 8A-7 as follows:
 
23    (305 ILCS 5/8A-7)  (from Ch. 23, par. 8A-7)
24    Sec. 8A-7. Civil Remedies. (a) A person who receives

 

 

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1financial aid by means of a false statement, willful
2misrepresentation or by his failure to notify the county
3department or local governmental unit, as the case may be, of a
4change in his status as required by Sections 11-18 and 11-19,
5for the purpose of preventing the denial, cancellation or
6suspension of his grant, or a variation in the amount thereof,
7or by other fraudulent device, or a person who knowingly aids
8or abets any person in obtaining financial aid for which he is
9not eligible, shall be answerable to the county department or
10the local governmental unit, as the case may be, for refunding
11the entire amount of aid received. If the refund is not made,
12it shall be recoverable in a civil action from the person who
13received the aid, or from anyone who willfully aided such
14person to obtain the aid. If an act which would be unlawful
15under Section 8A-2 is proven, the court may as a penalty assess
16an additional sum of money, not to exceed the entire amount of
17aid provided, against the recipient or against any person who
18willfully aided the recipient. If assessed, the penalty shall
19be included in any judgment entered for the aid received, and
20paid to the county department or the local governmental unit,
21as the case may be. Upon entry of the judgment a lien shall
22attach to all property and assets of such person until the
23judgment is satisfied.
24    (b) Any person, firm, corporation, association, agency,
25institution or other legal entity, other than an individual
26recipient, that willfully, by means of a false statement or

 

 

HB5049- 10 -LRB102 22605 KTG 31748 b

1representation, or by concealment of any material fact or by
2other fraudulent scheme or device on behalf of himself or
3others, obtains or attempts to obtain benefits or payments
4under this Code to which he or it is not entitled, or in a
5greater amount than that to which he or it is entitled, shall
6be liable for repayment of any excess benefits or payments
7received and, in addition to any other penalties provided by
8law, civil penalties consisting of (1) the interest on the
9amount of excess benefits or payments at the maximum legal
10rate in effect on the date the payment was made to such person,
11firm, corporation, association, agency, institution or other
12legal entity for the period from the date upon which payment
13was made to the date upon which repayment is made to the State,
14(2) an amount not to exceed 3 times the amount of such excess
15benefits or payments, and (3) the sum of $2,000 for each
16excessive claim for benefits or payments. Upon entry of a
17judgment for repayment of any excess benefits or payments, or
18for any civil penalties assessed by the court, a lien shall
19attach to all property and assets of such person, firm,
20corporation, association, agency, institution or other legal
21entity until the judgment is satisfied.
22    (c) Civil recoveries provided for in this Section may be
23recoverable in court proceedings initiated by the Attorney
24General or, in actions involving a local governmental unit, by
25the State's Attorney.
26    (d) Any person who commits the offense of vendor fraud or

 

 

HB5049- 11 -LRB102 22605 KTG 31748 b

1recipient fraud as defined in Section 8A-2 and Section 8A-3 of
2this Article shall forfeit, according to the provisions of
3this subsection, any monies, profits or proceeds, and any
4interest or property which the sentencing court determines he
5has acquired or maintained, directly or indirectly, in whole
6or in part as a result of such offense. Such person shall also
7forfeit any interest in, securities of, claim against, or
8contractual right of any kind which affords him a source of
9influence over, any enterprise which he has established,
10operated, controlled, conducted, or participated in
11conducting, where his relationship to or connection with any
12such thing or activity directly or indirectly, in whole or in
13part, is traceable to any thing or benefit which he has
14obtained or acquired through vendor fraud or recipient fraud.
15    Proceedings instituted pursuant to this subsection shall
16be subject to and conducted in accordance with the following
17procedures:
18    (1) The sentencing court shall, upon petition by the
19Attorney General or State's Attorney at any time following
20sentencing, conduct a hearing to determine whether any
21property or property interest is subject to forfeiture under
22this subsection. At the forfeiture hearing the People shall
23have the burden of establishing, by a preponderance of the
24evidence, that the property or property interests are subject
25to such forfeiture.
26    (2) In any action brought by the People of the State of

 

 

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1Illinois under this Section, in which any restraining order,
2injunction or prohibition or any other action in connection
3with any property or interest subject to forfeiture under this
4subsection is sought, the circuit court presiding over the
5trial of the person charged with recipient fraud or vendor
6fraud as defined in Sections 8A-2 or 8A-3 of this Article shall
7first determine whether there is probable cause to believe
8that the person so charged has committed the offense of
9recipient fraud or vendor fraud and whether the property or
10interest is subject to forfeiture under this subsection. To
11make such a determination, prior to entering any such order,
12the court shall conduct a hearing without a jury, at which the
13People shall establish that there is (i) probable cause that
14the person so charged has committed the offense of recipient
15fraud or vendor fraud and (ii) probable cause that any
16property or interest may be subject to forfeiture pursuant to
17this subsection. Such hearing may be conducted simultaneously
18with a preliminary hearing, if the prosecution is commenced by
19information or complaint, or by motion of the People at any
20stage in the proceedings. The court may accept a finding of
21probable cause at a preliminary hearing following the filing
22of an information charging the offense of recipient fraud or
23vendor fraud as defined in Sections 8A-2 or 8A-3 or the return
24of an indictment by a grand jury charging the offense of
25recipient fraud or vendor fraud as defined in Sections 8A-2 or
268A-3 of this Article as sufficient evidence of probable cause

 

 

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1as provided in item (i) above. Upon such a finding, the circuit
2court shall enter such restraining order, injunction or
3prohibition, or shall take such other action in connection
4with any such property or other interest subject to forfeiture
5under this Act as is necessary to insure that such property is
6not removed from the jurisdiction of the court, concealed,
7destroyed or otherwise disposed of by the owner of that
8property or interest prior to a forfeiture hearing under this
9subsection. The Attorney General or State's Attorney shall
10file a certified copy of such restraining order, injunction or
11other prohibition with the recorder of deeds or registrar of
12titles of each county where any such property of the defendant
13may be located. No such injunction, restraining order or other
14prohibition shall affect the rights of any bonafide purchaser,
15mortgagee, judgement creditor or other lien holder arising
16prior to the date of such filing. The court may, at any time,
17upon verified petition by the defendant, conduct a hearing to
18determine whether all or portions of any such property or
19interest which the court previously determined to be subject
20to forfeiture or subject to any restraining order, injunction,
21or prohibition or other action, should be released. The court
22may in its discretion release such property to the defendant
23for good cause shown.
24    (3) Upon conviction of a person under this Article, the
25court shall authorize the Director of the Illinois State
26Police to seize all property or other interest declared

 

 

HB5049- 14 -LRB102 22605 KTG 31748 b

1forfeited under this subsection upon such terms and conditions
2as the court shall deem proper.
3    (4) The Director of the Illinois State Police is
4authorized to sell all property forfeited and seized pursuant
5to this subsection, unless such property is required by law to
6be destroyed or is harmful to the public. After the deduction
7of all requisite expenses of administration and sale, the
8court shall order the Director to distribute to the Illinois
9Department an amount from the proceeds of the forfeited
10property, or monies forfeited or seized, which will satisfy
11any unsatisfied court order of restitution entered pursuant to
12a conviction under this Article. If the proceeds are less than
13the amount necessary to satisfy the order of restitution, the
14Director shall distribute to the Illinois Department the
15entire amount of the remaining proceeds. The Director shall
16distribute any remaining proceeds of such sale, along with any
17monies forfeited or seized, in accordance with the following
18schedules:
19    (a) 25% shall be distributed to the unit of local
20government whose officers or employees conducted the
21investigation into recipient fraud or vendor fraud and caused
22the arrest or arrests and prosecution leading to the
23forfeiture. Amounts distributed to units of local government
24shall be used solely for enforcement matters relating to
25detection, investigation or prosecution of recipient fraud or
26vendor fraud as defined in Section 8A-2 or 8A-3 of this

 

 

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1Article. Where the investigation, arrest or arrests leading to
2the prosecution and forfeiture is undertaken solely by the
3Office of the Attorney General Illinois State Police, the
4portion provided hereunder shall be paid into the Medicaid
5Fraud and Abuse Prevention Fund, which is hereby created in
6the State treasury. Monies from this fund shall be used by the
7Office of the Attorney General Illinois State Police for the
8furtherance of enforcement matters relating to detection,
9investigation or prosecution of recipient fraud or vendor
10fraud. Monies directed to this fund shall be used in addition
11to, and not as a substitute for, funds annually appropriated
12to the Office of the Attorney General Illinois State Police
13for medicaid fraud enforcement.
14    (b) 25% shall be distributed to the county in which the
15prosecution and petition for forfeiture resulting in the
16forfeiture was instituted, and deposited in a special fund in
17the county treasury and appropriated to the State's Attorney
18for use solely in enforcement matters relating to detection,
19investigation or prosecution of recipient fraud or vendor
20fraud; however, if the Attorney General brought the
21prosecution resulting in the forfeiture, the portion provided
22hereunder shall be paid into the Medicaid Fraud and Abuse
23Prevention Fund, to be used by the Medicaid Fraud Control Unit
24of the Office of the Attorney General Illinois State Police
25for enforcement matters relating to detection, investigation
26or prosecution of recipient fraud or vendor fraud. Where the

 

 

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1Attorney General and a State's Attorney have jointly
2participated in any portion of the proceedings, 12.5% shall be
3distributed to the county in which the prosecution resulting
4in the forfeiture was instituted, and used as specified
5herein, and 12.5% shall be paid into the Medicaid Fraud and
6Abuse Prevention Fund, and used as specified herein.
7    (c) 50% shall be transmitted to the State Treasurer for
8deposit in the General Revenue Fund.
9(Source: P.A. 102-538, eff. 8-20-21.)